Samsung's Business Strategy: Stakeholder Analysis and New Strategies

This report offers a comprehensive analysis of Samsung's business strategy, encompassing organizational and environmental audits. It begins with a SWOT analysis, highlighting Samsung's strengths, such as its market leadership in electronics and strong manufacturing capabilities, while also addressing weaknesses like marketing challenges compared to Apple. Opportunities include growth in the middle class segment and potential for diversification, while threats involve competition from Chinese companies and rapid technological advancements. The report then delves into a PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors influencing Samsung. Furthermore, it emphasizes the significance of stakeholder analysis, identifying key stakeholders like customers, shareholders, employees, and the government. The report concludes with a new strategic approach for Samsung, utilizing IFE and EFE matrices to evaluate internal and external environments and formulating future strategies based on its 'Vision 2020', focusing on new technology, innovative products, and creative solutions to inspire communities and create the future. The report also includes references to relevant academic literature.

BUSINESS STRATEGY
(TASK 2)

2.1 Strategic positioning by conducting
organizational audit
 Organizational audit generally help the business
organization to take enormous actions in order to place the
venture where it is existing today to a desired position where
it will be placed in the future.
Organization audit for the given venture can be done with
the help of SWOT analysis so that the firm will be able to
achieve their goals and objectives in effective manner.
 SWOT analysis for Samsung has been discussed effectively.

Continued...
Strengths:
 Samsung is considered as one of the most successful electronic
manufacturers. Further, the cited firm is also the largest
manufacturer of the television sets, LCD, mobile as well as
smart phones.
 Samsung holds the largest market share in many of the product
categories.
 Samsung having strong manufacturing and marketing
capabilities which make them unique and different from other
competitors.
 Samsung took the advantage as by identifying the growing
economy of the Asian market and they have set their
manufacturing plant in India in order to reduce their logistics
and supply chain.

Continued...
Weakness:
Still, Samsung is unable to match the Apple marketing
capabilities in the smart phone market. Apple share price has
extended quite more and on the contrary, Samsung has faced
the loss of 2.3%
Samsung's marketing tactics are still not so sophisticated as
compared with Apple.
Cited firm is leader in hardware segment but they have to
still depend on the software from different other parties.

Continued...
Opportunities:
 Samsung is growing the middle class segment by selling
more of their electronics products at an affordable price in
whole world.
 Planning to increase their sale with the help of online
mediators like Amazon, eBay, etc.
 Mentioned company also have strong financial position and
have opportunity to get into unrelated diversification.
 Organization is focusing on obtaining patents with the help
of acquisition.

Continued...
Threats:
 Samsung is working on different segments and product line.
Failure in one of the product will surely influence other
products and will lead to decrease in goodwill.
 Chinese companies like Xiomi and Huawei are growing
rivals for the venture as they are selling mobile phones with
better specifications in quite low cost.
 If Apple started developing consumer electronics product
like home appliances, then Samsung will face stiff
competition in that segment as well.
 Rapid technological advancement and declined margins on
hardware products making tough for the cited organization.

2.2 Environmental audit for Samsung
PESTLE analysis is treated as an important framework for macro
environmental analysis and it is also considered as a part of
advanced strategic management. PESTLE for Samsung has been
explained down under:
Political:
 Political factors shows the role of government and they are mainly
focused on framing the labour policies, different environmental
regulations, industries norms, etc.
 Cited firm have strong foreign relationship which generally boosting
up their sales and revenue throughout the world.
 Organization following the government tax policy in précised
manner. Therefore, they are getting immense support from
government of particular country as well.

Continued...
Economic:
 Economic factors include components like consumer spending,
inflation rate, raw material cost which play an important role in
shaping economic environment of Samsung.
 Cited organization also has powerful export sector along with
successful economic reforms.
Social:
 Social factor for Samsung includes elements like population,
purchasing pattern, cultural aspect and various others.
 Organization is now focusing on producing the best quality of gadgets
at an affordable price so that they get more of the response from the
individuals whole around the globe.
 Samsung focusing on giving best of the working environment to their
employees as well which results into more employee’s retention.

Continued...
Technological:
 Samsung being a tech leader, have to use the latest form of
technology, research and development.
 Mentioned organization attracting customers towards their existing or
newly launched product with the help of social media and YouTube
channels.
 Different government policies also influencing R&D helps cited firm
to produce the best of products to the customers at an affordable price.

Continued...
Environmental:
 Environment is been considered as one of the crucial external factors
in which company operates. This factor also include change in climate,
various environment regulations, etc.
 Samsung also knows that there are limited natural resources and they
have to optimize it efficiently in order to achieve their goals and
objectives.

Continued...
Legal:
 Legal factors for Samsung includes law relating to customer safety,
environment, health and various others.
 Organization have to follow all the regal policies in order to have
effective functioning.
 Favourable tax policies will help Samsung to sell more of their product
will significantly increase their production and revenue.

2.3 Significance of stakeholder analysis
in formulating new strategy
 Stakeholders are those individuals who have interest in the success of
business venture and it involves employees, shareholders, suppliers,
customers, government, etc.
 For Samsung, market development strategy will play a significant role
as organization will focus on selling their existing product in the new
market.
 With this, cited firm will also be able to increase more of their
goodwill along with revenue and profits.
 Stakeholder mapping on the other side is the process of mapping the
stakeholder expectations which are based on the value hierarchies and
Key Performance Areas (KPA).