You are required to submit an Individual report by selection an Organisation with which you are familiar. Conduct a Strategic analysis on the Organisation.
Samsung is one of the largest brands that are available in the market. The main aim of the company is to safeguard the leadership in the industry and to earn the competitive strength by taking into consideration manufacturing of product, design, marketing and sales. The name of the company is popular in the market and it is known as one of the top brand that is also popular among the customers. The meaning of the Samsung in Korean is “three stars”. Samsung also gave focus on the trade exports. The company operates its activities in 58 countries and the company has total 2,800 employees. The company offers products in the field of Tele communication, digital equipment and also in the sector of digital media. The essential part of the Samsung is the electronic segment. The company also wants to attain the top five positions in the world by 2020 and the vision of the company is to enhance the revenue. The company gives emphasis on exploring the other markets like health, medicine and bio technology. The headquarter of the company is located in korea and Samsung has a sales network in 65 countries globally. The major product of the company is mobile phones that have a large market share globally. The company operates its function on the large scale (Woo-Seok et al., 2014).
Macro environment analysis
The macro analysis of Samsung consists of the PESTLE analysis that describes political, economic, social, technological, legal and environmental factors of the organization.
This factor has a proper control on the regulations of the organization that consist of the regulations implemented by the government. The regulations that are implemented by the government is important to be considered by the business. In United States it is seen that political environment is stable to conduct the operations in effective manner. Policies that are given by the government like taxation and also the rise in the petrol prices has given impact on the buying pattern of the individual. The industrial policies that are related to korea also plays an important role for guiding international competitiveness to transfer technology, so that the market can easily operate its activities (Erguler,2015).
The economic factor plays a very significant role in marketing the products. The recession has given negative impact on the spending power of the individual. The importing prices can be enhanced when the sale continuously reduces and also the exchange rate of the mobile phones declines. The micro environment in which the Samsung conduct the operations is uncertain and it is important to reframe its strategies according the competitive environment. The saving grace for the company is related to tap the consumer’s disposable income in the developed world by enhancing into developed markets (Scholes, 2015).
By considering the recent scenario, it is seen that people have strong passion and obsession for the latest technology introduced in the market. Mobile phone plays a significant role to satisfy the demand of the children. The interest of the children towards study reduces when they become addicted of the mobile games. Samsung is considered as a family owned on a multinational platform. This means that despite of the global recognition it still conduct the activities from Korea. There are many aspects to its global operations and some consist of adapting itself to the local conditions. Samsung has to give focus on the products so that the customer preferences can be adopted by taking into consideration different markets. The importance is that the company operates in the market niche that is influenced by the preferences of the consumers and also the social factor is taken into consideration in various countries (Peppard and Ward, 2016).
The mobile industry has been considered as one of the popular growing. The company introduces various mobile phones with different models in the market. Each model has a different and new feature that induces customers to buy the product. Samsung is popular for mobile phone. The customers purchase the product by taking into consideration innovative features introduced by the company in the market. Samsung has a great advantage to harness the power of technology and also drives innovation for sustainable business advantage that is concerned with it (Wheelen and Hunger,2017).
Intellectual property is becoming an important aspect for the organization. There are huge chances of the conflicts that can take place like in case of the apple conflict with the goggle nexus one. The issue that arises is due to the patent. Samsung itself won a dispute with the company and the dispute is related to the patent issue that was initiated in year 2007. The company also has to face many penalties that are related to the imitation of the apple iPad and this has given impact on the consumer perceptions. It is seen that how the company operates the activities in developed markets by taking into consideration various laws and procedures implemented by the government. The company has major threats of the legal factors (Jung, 2014).
Now a day’s consumers are aware towards the enhancement in the energy efficiency and also with the dangerous radiation. There are many cases that take place in other mobile companies. The mobile phones blast due to some technical problem. With the enhancement in the ethical consumer needs, the company gives focus to be aware of the need to make its products ethical for the consumers. It is related to the pay given to the labors who are engaged in making the final products. The pay should be given according to the performance of the employees who are working in the organization (Grant, 2016).
Analysis based on the PESTLE analysis
By analyzing the macro environment of the Samsung it clearly indicates that Samsung has its own strategies to navigate and attract the consumers towards the product. The company prepares to enhance its global footprint. The company can easily compete with the other companies by introducing more innovative products in the market (Kanonov and Wool, 2016).
Five force model
The Porter five force model is used to evaluate the business strategies related to the Samsung. This tool is used to access the market drivers. The company like Samsung should take into consideration the proper research of the markets they want to approach and should also conduct the activities accordingly. Five forces are industry rivalry, barriers to entry and exist, power of the buyers, power of suppliers, and threat to substitutes (Ramkumar and Sharma, 2017).
This element plays a great role by taking into consideration the Samsung Company. There are many competitors like Nokia, Motorola and apple in the market. It is difficult for the organization to take a proper stand by taking into consideration all the competitors. Also there are many cold wars faced by the company in the competitive environment. This has given direct impact on the dimensions that are strong for the Samsung (Bharadwaj et al., 2013).
Barriers to entry and exist
The white goods industry is considered as a high barrier to entry and also the low barriers to exist the market. It is very difficult for many organizations to enter into the market as the distribution network and supply chain is not maintained easily. It is also evaluated that the company entered into many market but existed the markets that are not profitable. This is only the reason that the companies like Samsung often consider the diligence before entering into the emerging markets (Choong et al.,2014).
Power of Buyers
The power of buyers by taking into consideration the Samsung Company is a mixed bag. It is seen that the buyer has many options and also there are many companies that provide the same features at low cost. Also the buyers approach to the companies for after sale service and also for the spare parts. The power of the buyers is on the companies, as at the time of purchasing the item it is seen that the buyers have many options to choose from before reaching to the final decision. This simply elaborates that both the buyer and companies need each other to conduct the activities in a smooth manner.
Power of the suppliers
In many markets in which the Samsung conduct its activities has many suppliers who are offering the services and products at discounts. This does not mean that the companies can give pressure on the suppliers as it is seen that if the supply chain is established, then it takes a lot of time to create a new supply chain. This is only the reason why the companies like Samsung analyze the market before setting up the shop and also take help of the consultancies in arriving to the decisions (Verbeke, 2013).
Threat of Substitutes
This element is considered as high as there are many companies in the market. The buyers can easily substitute the products as there are many substitutes flooded in the market. Samsung has to remain careful to decide the marketing strategy that can be beneficial for the organization. Samsung takes into consideration differential pricing so that the customers get attracted towards the company. This also gives focus on many companies that offers products at low cost (Teimouri, Fanae et al., 2016).
Analysis of porter five force analysis
By conducting the analysis it is seen that as the global economy and more merging markets open up the companies like Samsung attain the advantage because they have already established the operations in the new market. It is also analyzed that every market is unique and the company should not adopt one strategy for all the market (Bhushan, 2016).
Strategies considered by the organization
Limited growth strategy
This strategy helps the organization to gives emphasis on the current products that are produced and are supplied in the current market. Innovative ideas are taken into consideration to enhance the growth of the organization. Samsung basically depends on four growth strategy like market penetration, market development, product development and innovation.
- Market penetration: The Company maintains its market share in a proper manner and also the organization innovates and attracts customers towards the product. In this way the satisfaction level of the customer is enhanced and the company attain large market share (Kumar, 2017).
- Product development: Samsung gives targets to the old customers with a new product. By launching a new product it will attract more customers and also enhance the market share. The advertisements are also given that enhance the awareness about the product between the customers. Example: launching of s5 mobile phone in the market (Chen and Ann, 2016).
- Market development: Samsung enters into a new market that enhances the market growth and also the market share. By taking into consideration this strategy they can easily enter into a new market by targeting the customers in areas. The new market for samusng can be a new country like for example: the company introduces its products in a village or a new country (Blackburn et al.,2013).
Product life cycle of Samsung mobile phone
By giving focus on the figure it is seen that there are 3 stages of the Samsung mobile phones. The three stages are introduction, growth and maturity.
In the introduction stage the company introduced Samsung R220 in 2001 and it is available in the market till 2006. The company Launched very less models due to the less demand and innovation. The first model launched by the company is R220 with blue display. The company competed with the competitors like nokia and Motorola (Mithas et al., 2013).
Growth stage (2006 to 2011)
In this stage the company launched mobile phones without the external antenna and also has better features like games, alarm and color display. Wide range of simple and dual sim mobile marked beginning of the growth stage. The touch screen mobile phones are also launched. The company followed price penetration strategy at the beginning of the growth stage. Launch mobile phones with the price of 2000 and 4000. In this stage the pre-paid connections were given free with select of any model of Samsung (Choi, 2013).
Maturity (2011 and till now)
Android smartphones were launched and also with the galaxy series. The launched of the windows phones to give tough competition to nokia window mobile. The main focus is also given on the galaxy s series phones so that the organization can compete effectively.
Evaluation of the strategy
It is evaluated that the company takes into consideration limited growth strategy. It is the strategy that helps the organization to sustain in the competitive environment and also to accomplish the goals and objectives of the organization. By relating the strategy with the pestle analysis and by taking into consideration environment factor it is seen that the company can easily enhances and offered effective products to the society. It has enhanced the lifestyle of the people. The market development is also done by taking into consideration legal and economic factor of the market in which the company is conducting the day to activities of the organization (Fan et al., 2015).
The competencies of Samsung are: Creative people, technology and innovative culture. If the focus is given on big companies, then it is seen that they are like big trees and also there are some branches that are related to the final product. Tree offer nutrients and also support fixation of the root is the main competency of the organization. The design of Samsung products are very orientation and also it meet the demand of the consumers. The product of the company has a good quality and also introduces new and latest technologies and new products. The competitive advantage of the company is that it reduces cost and it has the ability of innovation.
Samsung should take into consideration effective tools so that it can easy to accomplish the goals and targets. Also to grow in the market it is important to keep the prices low and offer effective features. It will give direct impact on the sale of the product. Samsung should give focus on advertisement, so that the customers can easily get knowledge about the product available or launched in the market. The company should also prepare to provide information technology as it is used to reduce the competition level in the market. If proper marketing and distribution channel is conducted then it can possible for the organization to attain the goals and objectives of the organization. Samsung should also analyze the market before setting up the shop and also take help of the consultancies in arriving to the decisions. To create a proper management it is important to locate the outlet at every place so that the customers feel satisfied at the time of purchasing product.
Bharadwaj, A., El Sawy, O.A., Pavlou, P.A. and Venkatraman, N.V., 2013. Digital business strategy: toward a next generation of insights.
Bhushan, A., 2016. A Comparative Analysis of Consumer Behavior of Nokia and Samsung Mobile Users.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business, strategy and owner-manager characteristics. Journal of small business and enterprise development, 20(1), pp.8-27.
Chen, C.M. and Ann, B.Y., 2016. Efficiencies vs. importance-performance analysis for the leading smartphone brands of Apple, Samsung and HTC. Total Quality Management & Business Excellence, 27(3-4), pp.227-249.
Choi, H.S., Samsung Electronics Co., Ltd., 2013. Mobile communication terminal. U.S. Patent D676,819.
Choong, C.L., Shim, M.B., Lee, B.S., Jeon, S., Ko, D.S., Kang, T.H., Bae, J., Lee, S.H., Byun, K.E., Im, J. and Jeong, Y.J., 2014. Highly stretchable resistive pressure sensors using a conductive elastomeric composite on a micropyramid array. Advanced materials, 26(21), pp.3451-3458.
Erguler, I., 2015. A potential weakness in RFID-based Internet-of-things systems. Pervasive and Mobile Computing, 20, pp.115-126.
Fan, G., Peddireddy, S.K. and Budhati, V., Samsung Electronics Co., Ltd., 2015. Pseudo-remote terminal IOTA mobile diagnostics and electronic customer care. U.S. Patent 8,977,968.
Grant, R.M., 2016. Contemporary Strategy Analysis Text Only. John Wiley & Sons.
Jung, Y.C., Samsung Electronics Co., Ltd., 2014. Display screen or portion thereof with graphical user interface. U.S. Patent D701,226.
Kanonov, U. and Wool, A., 2016, October. Secure containers in Android: the Samsung KNOX case study. In Proceedings of the 6th Workshop on Security and Privacy in Smartphones and Mobile Devices (pp. 3-12). ACM.
Kumar, V., 2017. Statistical Evaluation of Customers Satisfaction on the Uses of Samsung Mobile: A Case Study. International Journal of Statistics and Reliability Engineering, 3(2).
Mithas, S., Tafti, A. and Mitchell, W., 2013. How a Firm's Competitive Environment and Digital Strategic Posture Influence Digital Business Strategy. MIS quarterly, 37(2).
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a digital strategy. John Wiley & Sons.
Ramkumar, T.S. and Sharma, D., Samsung Electronics Co., Ltd, 2017. Optimization of power consumption in dual SIM mobiles in connected mode in a wireless network. U.S. Patent 9,769,867.
Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.
Teimouri, H., Fanae, N., Jenab, K., Khoury, S. and Moslehpour, S., 2016. Studying the relationship between brand personality and customer loyalty: A case study of Samsung mobile phone. International Journal of Business and Management, 11(2), p.1.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Wheelen, T.L. and Hunger, J.D., 2017. Strategic management and business policy. pearson.
Woo-Seok, H., Hee-Jeong, B., YongHwan, K., Myungkwan, C., Choi, Y. and Jangwon, S., Samsung Electronics Co., Ltd., 2014. Display screen or portion thereof with animated graphical user interface. U.S. Patent D697,924.