Strategic Management Report: Samsung's Industry and Strategy

This report provides a comprehensive strategic management analysis of Samsung. It begins with an introduction to strategic management and its importance, followed by an examination of Samsung's external environment using PESTLE analysis, considering political, economic, social, technological, legal, and environmental factors. The report then delves into industry analysis using Porter's Five Forces model, assessing industry rivalry, barriers to entry and exit, buyer power, supplier power, and the threat of substitutes. It identifies key driving forces of change in the industry, such as commodification, the digital revolution, and globalization, and analyzes Samsung's competitive position through SWOT analysis, highlighting strengths, weaknesses, opportunities, and threats. The report also includes a value chain analysis, examining inbound logistics, operations, outbound logistics, and marketing and sales. Finally, it identifies how the company responds to various challenges and offers recommendations, concluding with a summary of the key findings and insights.

Strategic management

Table of Contents
INTRODUCTION...........................................................................................................................2
Main Body.......................................................................................................................................3
1. External environment analysis of Samsung.......................................................................3
2. Industrial analysis...............................................................................................................3
3. Identifying the driving forces of change in the industry....................................................4
4. Analysis of competitive position as well as internal assessment.....................................5
5. Identifying the way company will respond to each?.........................................................6
Conclusion ......................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic management is defined as the formulation as well as execution of plan by
management in order to support an organisation in achievement of business objectives. It
includes establishment of objectives, evaluation of plans etc. Strategies are formed by manager
in an enterprise on the basis of the vision or mission of company.
Strategy management helps business entity in achieving success and fostering growth.
The purpose of the study is to develop the understanding about strategic management in context
of Samsung company. There are the several tools s as well as techniques have been used by
manager in an organisation in order to recognise the strategic position of an enterprise.
Main Body
1. External environment analysis of Samsung
Pestle is the technique which can be used for analysing the external environment and
measuring the impact of several elements on the business operation of Samsung company.
Political factors: These macro environmental constituents have major effect on the business
operations of company. The Samsung company has to face the several issues as well as
challenges due to the changes in political factors in domestic country. This factors have
significant influence on the business performance. It is required by an enterprise to formulate
effective strategies and to comply with rules formed by the political parties.
economic factors: As Samsung company is operating in developing country , the changes in the
economic condition of nation has direct impact on the profitability of firm. Decrease in the
income level of customer has direct influence on the demand for product or services offered by
the company (Bjerke and Renger,2017). It is required by marketing manager in an enterprise to
determine and set prices of goods on the basis of analysis of the economic situation in the nation.
Social factors:Samsung being a International company has to act locally meaning that it has had
to adopt a Global strategy in many emerging markets. Changes in the social factors have direct
effect on the business operation and influence on product planning.
Technological factors: Samsung company has able to gain popularity due to its innovation
skills. Technological advancement has supported firm in bringing positive improvement in
business system and procedure.

Legal factors : business entity has to face legal issues due to unethical business activities which
has negative impact on the reputation of firm. It is required by the company to develop the
understanding about the norms of market in which an organisation is planning to enter.
Environmental factors: The changes in the environment as well as law related to the same has
direct and major effect on business operations. It is required to be get it selves about the such
laws .
2. Industrial analysis
Porters five forces model is considered to be as an effective model which can be utilised
by manager for analysing the attractiveness of an industry in which company operates. Five
elements in the model are :
Industry rivalry: An organisation has to face stiff competition with big competitors such as
Motorola, LG and Nokia. Among the several competitors Apple is considered to be the giants
company which is giving stiff competition to Samsung. Increase in intensity of competition
business entity is facing difficulty in maintaining position in the market. It is required by an
organisation to develop as well as launch new product.
Barrier to entry and exit: There are high barriers which might occur in entering into new
market and low hurdles in existing the market. Samsung can enter in to new market by adopting
the Low or cost leadership strategy.
Power of buyers: In the electronic or mobile sector , the consumer has multiple options to make
purchase of product. Therefore, the bargaining power of customers is generally high. It is
required by the management in company to focus on quality of products .As this strategy will
assist an enterprise on reducing the negative effect of this variable on business operation or
performance.
Power of suppliers: Samsung organisation operates in such an environment there are many
suppliers who are willing to offer their services at a discount since the ancillary sectors . An
organisation has good brand reputation in the market (Grünig and Kühn, 2015) .Therefore,
suppliers intends to enter into contract with such a big company , so the bargaining power of
suppliers is low.
Threat of substitutes: The risk of this factor is very high. It is required by management team in
an organisation to be careful in deciding or formulating the marketing strategy. Marketing

manager in an enterprise , has planned to adopt the differentiating pricing strategy which has
helped firm in attracting more number of customers.
In context of Samsung , an organisation has adopted the cost leadership strategy which
has helped an enterprise in entering into market and attracting more number of customers. By
keeping the price low for the product an enterprise successfully entered into market.
3. Identifying the driving forces of change in the industry
There are many forces which foster changes in an industry in which Samsung company
operates , These are :
commodification : It is considered to be as the factors which creates inexorable pressure on
firm to reduce the price of product or services. The Samsung company has already implemented
the low pricing strategy. This plans or tactics has helped business entity in entering into new
market and gaining leadership position in an industry.
the digital revolution : In present world , the customers are more concerned about the process
adopted by a company for designing the products. It is required by company to use advance
technology and design new goods.
Globalization: It is very much important for management in Samsung company to develop the
understanding about the current and future effect of global trends on operations (Staake, Thiesse
and Fleisch, 2012.). As this will help manager in developing the suitable expansion strategy.
These are also the factors which has created the pressure on company to bring change in
business plan , system and procedures. In addition to this increase in intensity of competition ,
strategies adopted by rivalries in market has pressurised the company to decrease the prices of
the products or services.
The marketing manager in an organisation has adopted the unique strategies and has
planned to develop innovative products in order to reduce the pleasures of these forces. An
organisation has also planned to implement the advance technology at workplace.
4. Analysis of competitive position as well as internal assessment
Swot analysis
Strength : The company has good brand Weakness :

reputation in the market.
An organisation has team of skilled and
talented workers.
Business entity has innovation skills which
helps an enterprise in attracting more number
of customers.
Company offers wide range of products at
reasonable price.
Low profit margin as compared to other
organisation.
Focuses on producing too many products of
different kinds
business entity does not develop software.
Ineffective marketing stratergies.
Opportunity: increase in demand for products
Expansion of business
Threats :
rapid as well as continuous changes in
Technological factors.
Core competencies of Samsung -its ability to get the most out of the android operating system
as well as the quality of their smartphones. These core competencies has helped an enterprise in
gaining the competitive advantage in an industry.
Strength of Apple company :
 An organisation has its own software.
 Business entity has launched smart phone with new features.
 Effective marketing strategies.
 ]Skilled and talented workforce.
 High profit margin
Weakness :
 Limited distribution network
 High selling prices
 sales limited mainly to high-end market
Opportunities:
 Expansion of distribution network
 Product development
Threats:

Increase in labour cost.
Value chain analysis
Inbound logistics of Samsung : an organisation have strong relationship with suppliers .This
strategy has helped firm in receiving the regular supply of material and assisted in maintaining
the quality of product.
Business operations: The business operations of Samsung company can be categorise into
mainly three segments. These are consumer electronics, IT and communication , device solution
(Puig,Michail,Wooldridgeand Darbra, 2017). The use of advance technology has assisted
business entity in delivering the high value proposition and satisfaction to customers.
Outbound logistics : Samsung company has able to gain the popularity due to the introducing
modern smartphones. Innovation and product develop[ strategy has helped business entity in
gaining the competitive advantage in international market.
Marketing and sales: It is considered to be as the most valuable as well as primary operations
executed by firm (Pollanen, Abdel-Maksoud, Elbanna and Mahama ,2017). The objective of this
activity is to help business entity in promoting products and generating the brand awareness
among customers.
5. Identifying the way company will respond to each?
Marketing manager in an enterprise has formulated the unique strategies in order to deal
with the several business issues. Manager has developed some plans as well as some tactics in
order top provide suitable response to the changes in environment. Some of the strategies
adopted By Samsung company are product development , market diversification , low pricing
strategy Etc.(Leitner, Meissner and Martyna-David,2015.) Among several tactics and plans ,
innovation strategy has helped firm in differentiating itself from other companies in an industry.
Recommendation to Samsung company
It has been suggested to an organisation that firm should make appropriate strategies for
entering into new market. As this will assist business entity in reducing the negative effect of
competition on business performance. In addition to this it is required by the company to
concentrate on analysing as well as fulling the needs of company. As this strategy will assist
business entity in gaining the customer loyalty and providing client with t5he high level of
satisfaction.

Conclusion
It has been concluded from the study that there are several factors such as internal as well
as external constituent which has effect on business operations. Study has highlighted the
different issues faced by Samsung company in international environment. It has demonstrated
the way company has cope up with the complex situation and strategies adopted by firm in order
to provide the appropriate response to changes in business environment.
REFERENCES
Books and Journal:
Pollanen R. Abdel-Maksoud A. Elbanna, S. and Mahama H. 2017. Relationships between
strategic performance measures, strategic decision-making, and organizational
performance: empirical evidence from Canadian public organizations. Public Management
Review 19(5) pp.725-746.
Bjerke M. B. and Renger R. 2017. Being smart about writing SMART objectives. Evaluation
and program planning 61 pp.125-127.
Grünig, R. and Kühn, R., 2015. Strategy Planning Process. In The Strategy Planning Process.
Springer Berlin Heidelberg.

Staake, T., Thiesse, F. and Fleisch, E., 2012. Business strategies in the counterfeit market.
Journal of Business Research. 65(5). pp.658-665.
Puig M. Michail A. Wooldridge C. and Darbra R. M. 2017. Benchmark dynamics in the
environmental performance of ports. Marine Pollution Bulletin.
Leitner, J., Meissner, H. and Martyna-David, E., 2015. The Debate About Political Risk: How
Corruption, Favoritism and Institutional Ambiguity Shape Business Strategies in Ukraine.
In EU Crisis and the Role of the Periphery. Springer International Publishing. pp. 3-19.