Answer To: This assignment is the case study base assignment. Case study is base on Samsung. Word Count 1,800.I...
Asif answered on Mar 02 2023
A Case Study of Samsung
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Table of Contents
Introduction 3
Samsung’s Current Strategic Orientation: 3
Cost 4
Differentiation 4
Focus 5
Samsung’s Strategic Direction: 5
Market Penetration 6
Market Development 6
Product Development 7
Diversification 7
Specific Strategic Suggestions to Samsung Management 7
Product 8
Price 8
Place 9
Promotion 9
People 9
Process 10
Conclusion 10
References 11
Introduction
Samsung is a South Korean multinational conglomerate headquartered in Seoul. It is one of the largest, leading, reputed and fast growing South Korean conglomerate. The company has the eighth highest global brand value. Currently, the company is engaged in different business including consumer electronics, smartphones, retail, insurance etc. The company has started its business operation in 1938 as a trading company and the founder was Lee Byung-chul (Samsung 2023)
(Figure 1: Samsung Electronics' global revenue from 2005 to 2021)
(Source: Statista 2023)
The above statistics show that the global revenues made by the company (2005-2021) has grown progressively. The company generated a revenue of around 244.4 billion U.S. dollars. Therefore, the company is performing well in the market (Statista 2023). The main purpose of this case study analysis is to analyse current strategic orientation and direction of Samsung by using porter’s framework and Ansoff Matrix.
Samsung’s Current Strategic Orientation:
The porter’s framework is considered one of the most valuable and useful tool for analyzing a company’s strategic orientation base on its cost structure, differentiation strategy, and focus. Therefore, to describe and analyze Samsung’s current strategic orientation, porter’s framework (cost-differentiation-focus) has been used. Basically, this model is used by a company to gain competitive advantages in the related industry (Grant, 2010).
(Figure 2: Generic Strategies)
(Source: Chakraborty, Dobson, Seaton, and Waterson, 2015).
Cost: Samsung uses a cost leadership strategy in some of its business segments like consumer electronics, and semiconductor business. For instance, the company invests millions of dollars in the research and development to drive down production costs and improve efficiency. This allowed the company to offer a range of products at the competitive and reduced prices than its competitors. Moreover, this also allowed the company to focus on economic of scale and reduce production costs (Hill, and Jones, 2012).
Differentiation: Samsung is also follow and use a differentiation strategy in its consumer electronics business, especially in its smartphone and television segment. The company has invested huge amount in making innovative & unique designs, and features to differentiate its products/services from its competitors. For instance, the company has invested millions of dollars in user experience, product design, and innovative features to set its product apart from competitors. The one of the most important example of differentiation is Samsung’s Edge display technology in smartphones, which offers a curved screen and unique features like customizable side panel (Fernie, Fernie, and Moore, 2015).
Focus: The Company has broad focus, operating in a number of product categories and markets. Samsung has also targeted specific consumer segments like gamers, professionals with specialized products. For example, Samsung’s Galaxy Book Pro and Book Pro 360 laptops are designed for the professionals. These products offers specific features like long battery life, a thin & lightweight design and support 5G connectivity to professional (Karim, Huda, and Khan, 2022).
Overall, it can be said that the strategic orientation of Samsung is a mixture of cost leadership and differentiation, with a broad focus on multiple markets and customer segments.
In terms of success, Samsung is a dominant and leading player in the global consumer electronic markets for many years. The profits, sells and revenues of the company have grown steadily, and the company has consistently investing in new product categories and technologies. These enabled the company to maintain a strong position in the global consumer market. But, the company also faces intense competition from other global players like Apple, Huawei, and Xiaomi, which makes it challenging to maintain its profitability and market share. Samsung has faced the issue with product recalls, such as the Galaxy Note 7 battery explosion issue in 2016, which has a negative impact on its brand reputation and goodwill (Leigh, and Waddock, 2016).
In finding, Samsung's strategic orientation has been successful overall, as it has enabled the company to maintain a strong position in the global consumer electronics market. However, it will need to continue to innovate and adapt to changing market conditions to stay ahead of the competition.
Samsung’s Strategic Direction:
To understand and analyze Samsung’s strategic direction, the Ansoff Matrix Framework has been used. Generally, Ansoff Matrix...