Strategic Analysis Report: Evolution of Samsung's Strategy

This report provides a comprehensive strategic analysis of Samsung, evaluating its purpose, mission, vision, and objectives. It assesses Samsung's competitive advantages through VRIO analysis, examining its financial resources, products, employees, patents, and distribution network. The report also includes an external environmental analysis, considering political, economic, sociocultural, technological, environmental, and legal factors impacting Samsung's operations. Furthermore, the report assesses the competitiveness of Samsung and reviews the organization's overall strategy, offering valuable insights into its market position and future direction. This analysis helps understand how Samsung adapts and evolves within its industry to maintain its competitive edge.

Strategy Evolution at George

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Evaluating the value of the purpose, mission, vision and objectives of the company.................3
Assessing the competitive advantage...........................................................................................4
External environmental analysis..................................................................................................6
Assessing the competitiveness of the company ..........................................................................7
Reviewing the organization's strategy.........................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The strategic analysis mainly refers to the process which involves reaching out to the
existing business environment in which the organization operates. The strategic analysis is very
crucial from the perspective of formulating the strategic plan which involves decision-making
process and smooth carrying out of the business activities. Developing of the business strategy is
the integral part in order to accomplish success. In this report, the business analysis and strategy
is being constructed over the Samsung company. This report provides an insight about how the
mission, vision, goals, and objectives of an organization is being set and the value of the same. It
also includes assessing the competitive advantage of the company along with evaluating the
external environmental analysis in which the business operates. Along with this, it also involves
analysing the competitiveness of the company and at last reviewing the organization's strategy.
MAIN BODY
Evaluating the value of the purpose, mission, vision and objectives of the company
For the purpose of strategic analysis, the Samsung company is being evaluated on the
basis of its mission and vision and objectives. A detailed analysis is given below.
Purpose: The main purpose of the Samsung is focused on the global societal enhancement
with the help of the technological products. It works on making use of its capabilities in
generating, superior quality products and services which will help in contributing to the better
global society.
Mission: The main aim of this statement is to effectively meet with the end goals of the
company. This statement assists in identifying the market size of the corporate and in the
implementation of the strategies (About Us. 2020). The mission statement of Samsung is inspiring
the world and creating the future and it can be assessed from this is that the organization is wants
to satisfy all its customers all around the world through the way of creating values superior in
value in regard to the technology and the availability of the quality service. Through this, the
strategic, aims and goals of the company is determined.
Vision: This statement shows the organization's future and is supported in making it in a
part of the missions. It is basically the long process pertaining to the future long term goals. The
steps which are important for accomplishing the mission statement is the vision. The vision
statement of Samsung for the period 2020, is focused on integrating innovations, industry and the
partners to a common channel in order to accomplish the mission. This mainly involves the

adopting innovation, providing support to the staff, meeting with the industry requirements etc.
from this, the strategic planning of the organization will get objectives for the purpose of initiating
the process for meeting the goals which is to reach the revenue of 400 bn dollars.
Objectives: The objectives are considered to be the roadmaps which is designed in such a
way that it helps in effectively accomplishing the business objectives. The main objectives of
Samsung company is stated below.
 To provide and enhancing the customer satisfaction.
 To make use of the advanced technology.
 To support the macro business environment for the staff.
 To raise the revenue of the organization.
The purpose, mission and vision of the business organization all together helps in
formulation of the business objectives which helps in meeting with the mission statement of the
company. Therefore, it is important to have clear statements which helps in adding value to the
business. If the above statements are not properly stated then it will result into vague running of
the business activities.
Assessing the competitive advantage
In order to determine the competitive advantage of the company, VRIO analysis is being
utilized which helps in determining and measuring the internal resources under different
categories.
Resources Valuable Rare Imitable Organized
Financial
resources
  
Products 
Employees  
Patents 
Distribution
network
  
Valuable: The financial resources of the Samsung company is highly valuable which
helps it in making investment in the external opportunities. This also helps on combating the

external threats as well. Along with this, the products of the company is also valuable as they are
unique and highly differentiated which helps in creating the perceived value of the customers
high. The employees of the organization is valuable as they are highly trained and qualified which
results into generating the more productive outcomes. The retention level of the organization is
also high.
Rare: The financial resources is rare which is because it is difficult for every organization
to achieve such strong financial and it takes years to accomplish the same. Along with this, the
patents of the Samsung company can also be considered to be rare as it is not very easy to
accomplish the same and are also not easily available and cannot be possessed by the rivals
(Čirjevskis, 2016). This can be used as an added advantage without any interference of the
competitors. The distribution network of the organization is also rare which is mainly because of
the reason that the competitors would be requiring a huge amount for the purpose of making an
investment which will result into taking additional funds in order to establish the same. Along
with this, it is a time-consuming process.
Imitable: The employees of the organization can easily be imitated with the competitors
provides right set of training to the employees along with recruiting the workers having greater
knowledge, qualification and experience adding value to the employees. Also, the other
companies can also hire the employees from the Samsung company by providing attractive salary
and rewards, benefits etc. Therefore, this makes the employees of the Samsung company a
resource which will offer temporary competitive benefits and the competition in the market can
acquire it in the future. The distribution system or the network, is very costly in terms of imitating
it which is because of the reason that this network is being created over a number of years
gradually. The competitors would be required to invest the huge sum of money in order to imitate
this distribution system.
Organized: The financial resources of the organization is very well organized and
structured which helps in capturing greater value. These financial resources are being utilized by
the organization in order to make investment at the right time and place to attain the opportunities
being available along with overcoming the barriers or the threats that the company is exposed to
(Le and Park, 2017). The distribution system of the organization is organized effectively which
helps its in effectively reaching out to its customers through the way of ensuring that the products

of easily and timely available to the customers. Therefore, these resources have proved to provide
competitive advantage to the organization.
Thus, from the VRIO analysis, it has been identified that the financial resources along
with the distribution network provides competitive and sustainable advantage to the company
while the patents are unused competitive advantage.
External environmental analysis
Samsung is a global brand and is having a strong presence in the US and the other
emerging markets. However, there are certain factors which are external to the business and is
having tendency to affect the performance of the company. Following the factors:
Political factors: This factor is crucial for successful execution of the business activities.
This is because government oversight the big corporate has increased over the years. This factor
does not directly impact the industry in which Samsung is operating but the political conflicts
results into disturbing the state of peace of the state. Under such situation, it becomes difficult for
the company in respect to selling out the products among the various nations. Other nations like
Africa, Latin American which are having unstable political environment. Thus, this factors is
having a huge impact over the business functioning of Samsung.
Economic factors: This factor accounts for the inflation, change in the exchange rate,
disposable income of the people etc. The growth of the economy has supported Samsung in the
past several years but the condition of the global economy has been immensely affected by the
coronavirus pandemic which resulted into decline in the sales of the companies like Samsung
(Albasoos and Al Musallami, 2020). After the outbreak of this pandemic has resulted into large
number of people losing out their jobs which caused rise in the unemployment rate in the
countries like US and India consequently leading to lowering of the spending power in regard to
the items like smartphones and other consumer electronic goods. By the end of year 2020, the
economic situation of the nation is improving which has positively resulted from the financial
perspective. Therefore, this factor is also having crucial and higher influence on the key aspects of
the business.
Sociocultural factors: This factor involves the various social factors having an impact
over the business operations. Every nation has its own culture and beliefs based upon which the
organizations are required to formulate its products and service which will result into satisfying
the needs and wants of the people (Shin and Cho, 2020). The industries are required to operate

taking into consideration the Act pertaining to the local conditions of the nation in order to attain
success. Therefore, this factor also have a moderate but a significant importance to the business
functioning of the Samsung.
Technological factors: Every day, there is an advancement in the digital technology
which resulted into bring sea change in the way the business is being carried out. Most of the tech
corporate have experienced a growth in their market share which includes Samsung and its rivals
like Apple. Each and every product sold out by Samsung is technology driven (Tian, Li, Xu and
Li, 2019). Therefore, it adds advantage but also incurs various errors like cell phones are
exploding, batteries inside are overheating and consequently leading to burst. Therefore, this
factor is having a huge impact over the various business on the technology based companies.
Environmental factors: For the global business, it is crucial to have focus on the
environment and sustainability as well. There is an increase in pressure from the government and
consumers as well on the corporate to meet with the well-being of the environment in which it is
operating (Serzhena, 2019). The Samsung has already working on its CSR activities along with
this, it provides separate sustainability report which highlights its CSR activities for that period.
This report, provides information on the policies and actions being undertaken by the organization
along with the milestones it has achieved. For tech companies, it has nearly become impossible to
operate without implementing any sustainable operational activities. Thus, this factor would have
low impact over the success of the organization.
Legal factors: For the businesses like Samsung, it is very important to take into
consideration all the legal acts, rules and regulations in order to operate effectively. Every nation
has different regulations therefore, it is important to make sure that all the company is having an
effective legal team having knowledge on laws and legal aspects of different nations in which the
company is operating (Jun and et.al., 2018). This helps in ensuring that the company comply with
the all the regulations in order to avoid government intervention or any lawsuits against the
company in case of noncompliance. This factor is required to be tackled and monitored in time to
time in order to make sure that the company is meeting with all the legal requirements. Thus, this
factor is having a huge impact over the operational activities of the business.
Assessing the competitiveness of the company
SAMSUNG is a big technologically advanced company and strong competitor of brands
like Apple, Dell and other techno products. The company has huge market share across Asia and

Europe and has also established strong customer loyalty from its products. Products of Samsung
are accepted by large number of customers due to its quality products and services. It is essential
for the business to perform the market analysis using different tools such as pestle and porter's
five forces.
Porter's five forces has been adopted to conduct market analysis. It evaluates the
attractiveness of the market for the given business sector and industry. The tool analyses five
forces that could influence the business and its attractiveness for the market. Below Porter's five
forces would assess the market attractiveness for Samsung
Buyers Power
They are the driving force of the industry including automotive sector. Behaviour of
buyers is essential part of the marketing strategies and for in-depth research and studies which
are conducted to understand the behaviour of buyers. Brand strength of Samsung allows it to
make the radical changes as they are having large customer base. It could also be recognised as
trend setter of the respective market sector (Moreno-Izquierdo, Ramón-Rodríguez and Perles-
Ribes, 2016). Strong competition ensures that changes are not too radical as it could lose
customers.
Suppliers Power
They are considered as foundation of industry as they supply labour, raw materials and
the other supplies. It is important for the business to have healthy relations with the suppliers for
ensuring that it could operate efficiently and smoothly. Power of the suppliers depends over
various factors. If products are standardised suppliers will be weak like silicon manufacturers in
electronic industry. Supplier power is low in sectors where there are many producers of the
products and services. They are strong when they provide standardised products to market. Some
suppliers have strong powers while some suppliers have low bargaining power.
Threats of the substitute products
Substitute products affect price elasticity negatively as more substitutes makes the
demand more elastic as they have more alternatives. Electronic industry has various substitutes
manufactured from different competitors. Threats of substitute is increase as customers now are
seeking for the products that takes active actions for reducing effects of global warming.
Degree of rivalry

Competition drives the trend of any industrial sector and forces companies towards
innovation to remain competitive in the market. Samsung has strong rivalry from Apple, Dell
and other products. Market that have saturated rivalry may face fierce competition (Chesula and
Kiriiny, 2018). However healthy competition is essential for the market to bring innovation and
to regulate control over increasing prices.
Barriers to entry
Entrance in electronic industry is highly difficult as it requires heavy investments and also
competition is fierce. It is very difficult to enter into market unless a unique product or selling
point has been achieved by the company. The entrance through designing reliability, cost
effectiveness and durability is easiest method.
Reviewing the organization's strategy
The company is making use of the substantive growth strategy which helps in maintaining
the competitive position of the company in the market. It is bifurcated into horizontal and vertical
integration. Under the former, two or more companies are merged, for instance, Samsung C&T
and Engineering in order to expand the construction business. But in the latter, the organization
itself results into becomes its own supplier or shifting into the similar market type with the similar
technology, which can be seen in the case of Samsung earlier just involved in manufacturing
smart TV but later on it moved to manufacturing phones as well. Thus, resulting into meeting
with the added growth because of the use of the substantive growth strategy for Samsung.
The Samsung is having the most critical HR which nor only help in meeting success but
also choosing the best man for the competitive world. The objective of Samsung is to deliver
superior quality and value to its customers through the way of innovative products along with the
quality services (The Advantages of Substantive Growth in Business Strategies. 2017). By looking
at this objective, the substantive growth strategy is seems to be right as it is useful in attracting
more customers which results into increasing the revenue of the organization. On the current note,
Samsung is behind the Apple and for this reason, the substantive growth strategy is helpful and
enhance the scope of the resources. Justification can be done in the following ways.
Suitability: The global revenue of the company is increasing along with the operating
profits which is very much important for the strategy. The excess growth and the profits can be
utilized through the way of opening a new research units in the United Kingdom with the
objective of grabbing the non-buying people of the smartphone.

Feasibility: The main feasibility dependent upon this strategy will be the future scope for
the purpose of getting the new customers which will result into helping the organization in
attaining the competitive advantage. If the Samsung is able to effectively cater to the needs and
wants of the untapped market of UK efficiently, then this will result into creation of an
opportunity for the organization in order to grow and enhance the profits.
Acceptability: This strategy can extract the required investment from the enhancement in
the growth and the adjustment and carry forward can be done with this strategy as Samsung can
grab untapped market with the additional resources. This way, the customers will be able to
identify the difference and will create interest on the brand.
CONCLUSION
It can be inferred from the above that the strategic analysis is very important for the
business organization in respect to effectively meeting up with the mission and vision of the
organization. This is important for the businesses in order to effectively and clearly state these
statements as based upon these the business objectives are being set. It is essential for
organization to analyse the market in which the business is operating in order to identify the
factors which can impact the business operations. For this, Pestle analysis is being used which is
helps in evaluating the environmental factors and its degree of impact over the business. For the
purpose of assessing the competitive advantage of the company VRIO analysis is being utilized
which determines and measures the key resources of the organization. Along with this, for
determining the competitiveness of the company in the market Porter's five forces model is used
based on which competitive edge is determined. All these, helps in turning the business strategy
into success and should be developed with the help of an expert.

REFERENCES
Books and journals
Albasoos, H. and Al Musallami, N., 2020. The conflict between Apple and Samsung over
patents and copyrights. Bussecon Review of Social Sciences (2687-2285). 2(3). pp.1-17.
Chesula, O.W. and Kiriiny, S.N., 2018. Competitiveness In The Telecommunication Sector In
Kenya Using Porters Five Forces Model. International Journal of Research in Finance
and Marketing (IJRFM). 8(7). pp.1-10.
Čirjevskis, A., 2016. Designing dynamically “signature business model” that support durable
competitive advantage. Journal of Open Innovation: Technology, Market, and
Complexity. 2(1). p.15.
Jun, Y. J. and et.al., 2018. External battery. U.S. Patent Application 29/606,699.
Le, H.V. and Park, H.W., 2017. A comparative study on iPhone 6 Plus and Samsung Galaxy
Note 4 from Vietnamese consumer perception. Asia Pacific Journal of Business
Review. 2(1). pp.53-68.
Moreno-Izquierdo, L., Ramón-Rodríguez, A.B. and Perles-Ribes, J.F., 2016. Pricing strategies of
the European low-cost carriers explained using Porter's Five Forces Model. Tourism
Economics.22(2). pp.293-310.
Serzhena, T., 2019. The circular economy on South Korea. The case of Samsung. HUNGARIAN
AGRICULTURAL ENGINEERING. 36. pp.75-80.
Shin, B. Y. and Cho, K. T., 2020. The Evolutionary Model of Corporate Entrepreneurship: A
Case Study of Samsung Creative-Lab. Sustainability. 12(21). p.9042.
Tian, D., Li, H., Xu, L. and Li, Y., 2019, July. Technological Change and its Impacts on Supply
Chain Evolution: The Case of Samsung Group. In 2019 16th International Conference
on Service Systems and Service Management (ICSSSM) (pp. 1-6). IEEE.
Online
About Us. 2020. [Online]. Available
Through:<https://www.samsung.com/us/aboutsamsung/home/>.
The Advantages of Substantive Growth in Business Strategies. 2017. [Online]. Available
Through:<https://bizfluent.com/how-4987760-conduct-market-analysis.html>.