Based on the companys robust competitive advantage, it is possible to say that Samsung Electronics creates more value than its rivals do. Samples, help "Strategic Analysis of Samsung Electronics Co. Ltd." BusinessEssay, 10 Jan. 2023, business-essay.com/strategic-analysis-of-samsung-electronics-co-ltd/. Lockheed Martin is a global security and aerospace company. Apart from the examined resources owned by the company, including talent and investments, there is another critical factor that defines a companys success, such as the companys core competencies. The four Core competencies of Samsung are: creative people, technology leadership, innovative culture, and customer value creation. Harlow: Prentice Hall. Knpfle, G. (2016) Samsung Electronics and the global market. Introduction: General Background information + Thesis: what makes those companies not alike are the phones they release through the years, but are they that different? As a result, the improved HR promoted a new management system through capital accumulation in human resources, and it also changed the awareness and actions of employees. Opportunities are external factors that allow further business growth, as presented in this aspect of the SWOT analysis of Samsung. Concerning the relationship-building process in HR, Samsung Electronics CEOs visit suppliers regularly to take into account their problems (Samsung Electronics sustainability report, 2019). Core competencies help an organization to discriminate its products from its competitors as well as to reduce its costs than, Samsung is a South Korean multinational company having its headquarters in Samsung Town, Seoul. Also, Costco has strong financial resources that, Core Competencies These include: I Need Help With A Freedom Essay 2 3 Pages, Your email address will not be published. Samsung Electronics also remodelled its procurement process team into a partner collaboration department that was expanded to a partner collaboration centre in 2011 (Lee, Lee and Heo, 2015, p. 6). [online] Available at . It is recommended that Samsung use the previously mentioned partnerships or develop its own platform to target certain services that could open new opportunities for growing its business. Offer the rationale for your recommendation. Though effort has been put to up the competitive advantage, more is still required. BusinessEssay. 7 Considering such a critical starting point for this strategy, the Korean multinational corporation effectively handled its management innovation process due to internal innovation and partnership with sub-contractors. 56-63. Are you a high school, college, or university student pursuing a diploma, bachelors, masters, or Ph.D. degree? With our student assignment help service, you can submit all your assignment on time and score superb grades. However, Samsungs weaknesses are barriers and challenges that require strategic solutions. INTRODUCTION 6 Based on the SWOT analysis framework, the strategic objectives and solutions of Samsung Electronics and other divisions and subsidiaries of the Samsung Group aim to address competition involving various technology companies, especially Apple, Google, Lenovo, Sony, Dell, Acer, LG, and Intel. When assigning your order, we match the paper subject with the writers area of specialization. It can be human, financial, technological, physical or organizational. SAMSUNG VALUE AND CODE OF CONDUCT 6 They may seek to serve the needs of the growing middle class by rolling out a premium-priced smart phone and wearable devices, while at the same time having other cheaper phones for the same markets but targeting the low income bracket, an area not exploited by, This led Samsung to completely overhaul its management system and thereby instituting an ethical behavior in the company. Competencies are very important for an organization to build up on their own. The VRIO analysis model evaluates the value, rarity, imitability, and organization of the business. Overview of the essay Hence, Samsung Electronics employed and developed the business philosophy aimed at reinforcing the suppliers potential and taking a leading position as an internationally qualified organisation based on transparency and a trust-oriented culture. The more unique, valued and firm focused the resources are, the more probably the firm will have core competency. 1.1 Explain Samsung Electronics strategic contexts and terminology missions, "Strategic Analysis of Samsung Electronics Co. Ltd." January 10, 2023. https://business-essay.com/strategic-analysis-of-samsung-electronics-co-ltd/. 1.1. The companys offerings include home appliances such as TVs, monitors, refrigerators, and washing machines as well as smartphones and tablets. With Motorola holding a sizable, advantage over the rest of a fledgling mobile phone field, Samsung nearly dropped its Mobile, Strategy is learn from competitors, Samsung invests in DVD and Video products, for billions, Less priority in quality control (sampling for quality check will be done in some parts for a. product), concentrate with high volume production. Recommendations and. Samsungs strengths are as follows: The Samsung brand is one of the most competitive in the global market, especially for consumer electronics. Apart from transferring the companys novelty techniques, supporting the access to the foreign market, and setting up IT infrastructure, Samsung Company also implemented suppliers innovative capability. Core competencies of a firm can be described as the collective skills and proficiencies which enable a corporate to meet desirable set targets purposely for the satisfaction of consumers. The essay investigates how competitive advantage is achieved by developing inimitable (core) resources; which is supported . Costco earned reputation for serving highest quality regional and national brand goods for the lowest possible prices. The first step implied framing support on the critical companys resources, including finance, technology, and human resources. This strength is notable, considering that major technology companies use Samsung electronic components in their respective finished products. Strategic Analysis of Samsung Electronics Co. Ltd, custom Strategic Analysis of Samsung Electronics Co. Ltd, Wakame Restaurant Case: Key Business Points, The Walt Disney Companys Marketing Transformations, Joint Ventures in India: Learning From McDonalds Experience by Dunseith, Operation Managment About Sony, Determining Customer Needs, Organizational Behavior and Culture in Emirates Airline, Apple Companys Responsibilities and Strategies, EasyJet Airline Company Change Management, Air Arabia Case Study: Strategy, CRM, & Competitors, Business Management: Analysis of Proctor & Gamble, Comparing Performance of Eog Resources Inc. And Advantage and Gas Company Using Financial Ratios, Adidas Shoes: Situation Analysis, Future Strategies, Apples Music Streaming Service Future Strategies, Business Strategy Analysis: Emirates Airlines, Apple: History, Products, Marketing, Financial Profile, A fifty-year journey towards a sustainable future, role of governments and the use of political influence for multinational companies like Samsung, establishing a production base in countries to get favourable tariffs and excise duty exemptions, politics determine how the business is managed and led by its officials, Samsung company both lost and made use of the manipulation of political unrest, the support of two competing political parties in South Korea jeopardized the companys reputation; however, it did not impact the situation in western countries, the company expanded its global image due to setting up new markets in the developed world, the economic decline in this region caused Samsung to create new profitable projects in emerging markets, consumer electronic products decreased in lifespan as a result of the accelerated technology obsolescence, companies should estimate new products at a high price to reach the breakeven point quickly, consumers in developed countries are a target audience that can afford new electronic devices, the effective business strategy implemented by Samsung implied the consumers reduction of income in the industrialized sector, the current economic downturn caused by the COVID-19 pandemic requires new approaches to alleviate its negative impact on business, changes in consumer lifecycle as a result of modern fast-growing and evolving society, the increased impulse of buying new products, specific factors of multinational operations adhere to local circumstances, new products and services that Samsung offers must meet the evolving customer preferences in particular countries, Samsung operates within sector-driven-by-consumer lifestyle preferences, reliance on the market dynamism in terms of the companys capabilities, the electronics sector is defined by technological innovation that requires the company to make considerable investments in production technology and R&D, current items need to be continuously upgraded since technology is Samsungs main feature, the company faced a critical production project error with Samsung Galaxy Note 7 resulted in exploding cell phones after launching in 2016, increased focus on climate change that promoted eco-announcements from firms in electronics and computing, adapting eco-friendly materials and systems in manufacturing products that serve as a strong competitive advantage, a conscientious customer demands Samsung is mindful of providing the products that satisfy the modern customer politically correct, preventing from undermining the working standards or the employees salaries that are engaged in the development of the final product, the industry is highly dependent on technological advances, which incorporates the critical issue of IP (intellectual property), product safety concerns have a significant impact on the companys reputation and affect product sales rate, copying or limitation by market competitors: Samsung addressed heavy fines for the copying of Apples iPad and iPhone, the company lost the majority of the legal proceedings to Apple, the company has a high brand reputation with an international presence, integrated research and development capabilities adhere to high standards, solid research and development (R&D) expenditure, one of the strongest patent portfolios amidst technology organisations, product innovation and design competencies, product design based in Korea and production in China, products cost is high as compared to domestic competitors, the rapidly expanding notebook industry and smart home market, families as the target consumer in the TVs segment, Samsung entered the Chinese markets that are expected to grow over 40%, which is higher compared to the international speed 13% (Omer, 2019, p, 58), governments support that serves as the largest customer within the industry, enhanced, more rigorous competition in the industry, specifically from the low-cost companies, such as Huawei and Xiaomi, specific components regularly face supplying constraints, outsourcing companies objective into market, the predominant position of Apple Company in North America. 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), pp. Samsung's key competencies are "advanced innovations," "innovative devices," as well as "creative aspects" (Glowik, 2009). Even though the company has a large and diversified multinational footprint, some factors in its industries present threats. These opportunities are linked to technological development, market development, and alliances with various business organizations. Strategic Analysis of Samsung Electronics Co. Ltd. Retrieved from https://business-essay.com/strategic-analysis-of-samsung-electronics-co-ltd/, BusinessEssay. However, in 1990s, during the Asian financial crisis, Samsung cut costs and reemphasized product quality and manufacturing flexibility, which allowed its consumer electronics move from project phase to store shelves within next six months. The theoretical link is explored by choosing Dell as an example to evaluate theory and practice gap. The employees are also loyal, and retention levels for the organisation are high. Capturing the opportunities shown in this SWOT analysis helps the company remain a major competitor in the international market. Don't use plagiarized sources. Any global organisation should possess vital competitive forces in both technology and process sectors to become leading in the marketplace. In relation, this SWOT analysis points to the lack of a competitive platform to rival Apples ecosystem of hardware, software, and services. Integrity 8 Strategic Analysis of Samsung Electronics Co. Ltd. https://business-essay.com/strategic-analysis-of-samsung-electronics-co-ltd/. This will save on time and cost of operation and help in creating clear and precise business level strategies. For this reason, it is essential to create a value chain that integrates core competencies of all areas regarding the particular organisation. Razdan, V. (2017) Analysis of Samsung Electronics strategy for the period 2014-2017, and development of strategic options for growth and sustainability. According to Jung (2014), the key aspect of open human resource management implemented by Samsung is promoting equal opportunity, prioritizing skills, and recognizing human potential. 9th edn. Copyright by Panmore Institute - All rights reserved. a) Cost leadership strategy occurs when a firm a delivers the same services as its rivals but at a lower price. This is achieved through change of business strategies to those which enable the firm become competitive through exploitation of core competencies in the individual products and services. Blackberry provided high secured platforms for governments especially in North America. Samsung Values 8 More specifically, managers should adhere to a rational decision-making strategy and focus on the optimization of the economic performance of their company. For example, it is recommended that the company exploit the identified opportunities, such as strategic partnerships, to strengthen its competitive position in the international market for consumer electronics. The weaknesses shown in this aspect of the SWOT analysis are internal strategic factors that prevent the company from offering an expansive product range and further strengthening customer loyalty relative to Apple and Google. Inputs to a firm in the production process are resources. example of two leading rival companies in the field of smart phones If Samsung had not adopted android, it would have become obsolete like Nokia. Copyright 2022 IPL.org All rights reserved. Nonetheless, Samsung is in a constant encounter with the international market competitors that also pursue a fast-growing development and focus on technological innovations, such as LG that launched a new OLED production facility. Resources, capabilities and core competencies form the basis . Also, there are three main ways of identifying the competencies, which I elaborate on with the use of a few examples at the end tying the points, competitors such as Apple, Samsung, Microsoft, and others. The internal factors in this aspect of the SWOT analysis are used in the enterprises strategies for growth and to compete in the saturated global market for consumer electronics. The, designs of these early attempts were bulky, and reception was poor. This external strategic factor refers to competitive pressures from firms like Apple, Google, Sony, Lenovo, and LG. New History of Social Welfare. This led the company to decrease the price of the device in only three months after its launch date, which, in turn, marked a slowdown in sales within the smartphones industry. Lee, J., Lee, K., and Heo, J. Core competencies can be defined and analyzed across leadership levels as well. Explain different planning techniques. The company invests heavily in R&D, with a focus on developing new technologies and improving existing ones. Samsung first started as a South-Korean family owned business but has now earned acceptance around the globe now. Inputs to a firm in the production process are resources. According to this article core competencies involve many different people on many different levels. A SWOT analysis of the corporation indicates the most relevant strengths, weaknesses, opportunities, and threats in the technology business and its operating environment. The four core competencies are capabilities that are valuable, rare, costly to intimidate and non-substitutable. 7 The technique of using distinctive competencies to achieve a competitive advantage is associated with the successful implementation of a business unit 's strategy (Miles and Snow, 1978; Snow and Hrebiniak, 1980). Are you busy and do not have time to handle your assignment? Samsung is committed to corporate social responsibility through ensuring that ethical codes of conduct are followed in the company through their 5 Samsung business principles. For example, initially Samsung focused more on volume and domination on market rather than increasing profitability. Such an open approach to human resource management indicates respect to the autonomy and creativity of employees, as well as excluding any obstacles in systems and practices to improve the efficiency and competitiveness of the workforce. Advantages Of Samsung Competitive Advantage. visions, objectives, goals, core competencies.2-4 The company currently produces more than a hundred products of numerous varieties and models and involves operational branches in approximately 79 countries (Knpfle, 2016.). Alternative 1 Marketing In theory, a company's organizational culture involves the customs, core values, and traditions applied to and expected in the behaviors of employees, who in this business analysis case includes . Big companies that are like big trees, the tree trunk and some main branch as the core product, then some branches are business unit, leaf, flower and fruit belong tothe final product. 7 Samsung is a Seoul-based electronics company that deals with television sets, cameras, personal computer items, print solutions, cell phones, home appliances and other accessories. 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