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BUS 499: Assignment 2
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The company selected for the analysis is Samsung. It is a South Korean multinational conglomerate. Samsung was founded in 1938 by Lee Byung-Chul. This company is currently working in many fields of electronic industry. The greatest strength of Samsung is its approach of innovations and creativity. Innovations are the keystone for succeeding in the technology sector. Samsung is currently running thirty-four research and development centers across the world. In 2017, the company spent fourteen billion US dollars on research and department which was the second largest amount spent in the world on R&D. The massive growth of research and development played a significant role in expansion of the company in new product markets. Due to high research and development expenditure, Samsung is one of the strongest patent portfolios among technology companies. Implementing company's own software and operating system are highly profitable. Samsung's greatest weakness is that they lack the production of their own software and operating system for smartphones. Software and operating system production can increase the integration of the company's product and also helps in gaining brand loyalty. The competitors of Samsung like Apple, use their software and operating systems which gives a great advantage to them over Samsung (Jang, Hong, Woo Bock, Kim, 2002).
The best strategy that Samsung could use to get maximum results from its biggest strength is to develop more methods in research and development centers. These centers should be divided into three major layers with three major responsibilities the first layer should be responsible for the growth engines of the company. Its core functionality should be to analyze the past developed products and what measures now they should take to enhance the quality of their upcoming products. The second layer should be responsible for making a complete analysis on the needs and demands of the customers that what the users are expecting from the company so that developers could make a product that fulfills the demands of the users. The third layer should be responsible for advertising the products to the customers a year before its launch. This will increase the eagerness of the audience, and more customers can be attracted. To minimize the weakness of the Samsung company the only tactic that they can use is to implement their own software and operating system for their smartphones. The reason for choosing these strategies is that a company can only flourish when they use the approach of innovations and making a complete, thorough research before developing a product.
Tangible assets are those physical things that can be easily seen or touched. Samsung’s tangible resources are its land, buildings, machinery, equipment or capital, etc. The intangible assets are those which have no physical existence but have a great effect on the company. Samsung's intangible assets are brand reputation, trademarks, economy, or intellectual property, etc. The major core competencies of Samsung are creative people, innovative culture, technology leadership or customer value creation. The core capabilities of the Samsung Company are their internal collaborative environment and internal competition which became a core part of the Samsung management philosophy (Mo Yang, Seok Choi, Jin Park, Soo Suh, Chae, 2007).
The two major segments of the general environment which have major impacts on their ability to survive the market are economic and technological segments. In the economic segment, the factors affecting the business of Samsung are the interest rate, unemployment rate, inflation rate, gross domestic product or the decline or growth of the economy. Samsung products are consumer based products hence any change in the economy is highly detected within the manufacturing industry. The technology segment in electronic segment plays a vital role because in every day a new technology is introduced in smartphones and laptops etc. and introducing them in Samsung is very important because customers will constantly demand for products with modern technologies. Hence, updating the technology according to the modern ways is essential to get the complete satisfaction of the customers.
The first important force of competition for Samsung is the threat of substitutes which is moderately high. The competitors of Samsung are LG, Sony, Huawei and other local and international brands that provide competition and quality standard products which makes a better substitute for the products of Samsung. To overcome the threat, Samsung has paid a lot of attention to its R&D department so that they could bring more innovative ideas and technologies. The second significant force of competition is a competitive rivalry between the existing players. In the electronics industry, the competition between the players is very intense because there are many great existing brands like LG, Apple or Philips, etc. Hence, Samsung had only one choice or strategy to use for its better sale, and it was to use innovation and deeper market growth. Using the innovation, Samsung earned eighty-nine million dollars which was a great achievement for the company.
Overcoming these above forces can only be done by innovation and change of technology. In order to expand the sale of smartphones, Samsung should strengthen the competitiveness of products, by implementing new core features and services. The feature of camera and Bixby can be enhanced. Samsung should focus more qualitative growth of the smartphone business. They should also implement new cutting-edge technologies like foldable OLED displays and should introduce some latest concepts of Artificial intelligence and should introduce Samsung's 5g technology. All these factors can greatly help Samsung Company to grow its sale and economy.
The greatest external threat for Samsung is the dominant emergence of Apple brand in smartphone and tablet products in the market. Up till now, Samsung is unable to overcome the Apple's reputation in reliability. The brand name of Apple in quality, reliability, and sophistication is very high, and the loyalty of people for Apple cannot be changed so easily. The only way through which Samsung can overcome these threats is to maintain the impressive research design and manufacturing capabilities. Samsung should come up with some new techniques of marketing for its products and smartphones as marketing is the first step towards success.
The best market for the introduction of a product is where that item has not emerged yet or its emerging. Hence, Samsung did the same; the company saw an opportunity in regions like Africa and India where consumers are unfamiliar with tablets or advance mobile devices. That market was a great opportunity for Samsung, and the company earned more than fifty thousand corers in India. Best way to utilize their production is to bring new and great technologies in Asia and India so that they could earn more money. In regions like India prices of Apple products becomes slightly high that's why people prefer Samsung, and the company had the highest rank in the sale of the products in the year 2018 as compared to the all the other local brands of India. The overall net sale was of twenty-five percent in India which was a great milestone to achieve for Samsung (Jung, 2014).
References
Jang, S., Hong, K., Woo Bock, G., & Kim, I. (2002). Knowledge management and process innovation: the knowledge transformation path in Samsung SDI. Journal of knowledge management, 6(5), 479-485.
Mo Yan, H., Seok Choi, B., Jin Park, H., Soo Suh, M., & Chae, B. (2007). Supply chain management six sigma: a management innovation methodology at the Samsung Group. Supply Chain Management: An International Journal, 12(2), 88-95.
Jung, S. C. (2014). The analysis of strategic management of Samsung Electronics Company through the generic value chain model. International Journal of Software Engineering and Its Applications, 8(12), 133-142.
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