Critical evaluation of Samsung Electronics Company
Korean electronics manufacturer Samsung is one of the world’s leading electronic equipment manufacturers. Samsung produces a wide variety of consumer and industrial gadgets. A wide range of products are available, including home appliances and digital media players. This South Korean corporation, which has grown to be one of the most well-known in the electronics sector, produces almost a quarter of the country’s exports.
In 2021, Samsung declared revenue of 279.6 trillion and an operating profit of 51.63 trillion. This figure represents an 18% and a 43.5% rise compared to last year. Samsung said its good performance was driven by strong mobile and semiconductor sales, bringing its revenue to its highest level (Jang et al. 2019, pp. 1-16). The company’s sales and operating profit increased by 24 percent and 53,3 percent, respectively, from the same period in 2020 to the fourth quarter of 76.6 trillion won. Premium smartphone and consumer electronic device sales increased, according to Samsung, in the fourth quarter. The company’s operational earnings rose, and the success of its semiconductor division, but the South Korean tech giant said a special incentive payout to staff was made during the quarter.
It’s no secret that Samsung is one of the world’s most popular electronics brands. In addition, it has risen to the top of the consumer electronics industry. Despite the intense competition, Samsung has remained at the top of the smartphone and consumer electronics sectors by focusing on technical innovation (Omer, 2019, pp. 56-62 ). The popularity and sales of the product have increased as a consequence. Technology, supply chain, marketing, and brand image are some of its primary assets. On the other hand, multiple competitive advantages help it maintain its eminent leadership position.
Like any other major and multinational company, Samsung’s success hinges on its ability to project a positive picture of its brand. As a prominent technological brand, Samsung has a significant presence in smartphones and tablets, consumer electronics, and the semiconductor sector (Yang et al. 2018, p. 2018). Brand image is a crucial factor in the brand’s worldwide success. Brands that concentrate on their customers’ interests and preferences and their whole experience are more likely to succeed. As a consequence of all of this, the company’s brand image and equity have grown significantly.
The robustness of a brand’s supply chain is also a factor in its competitiveness. Improved operations allow for speedier delivery of goods and a more efficient manufacturing process. Having a good supply chain is essential to ensure that your company maintains its leading position and profitability. As a worldwide company, Samsung purchases raw materials from many international vendors. Using digital technology, Samsung has been able to manage its suppliers effectively. To run its supply chain, Samsung relies on over 2,500 different suppliers all over the globe. Additionally, the firm has developed a code of conduct for its suppliers and gives them the assistance they need to adhere to it (Omer, 2019, pp. 56-62 ). In addition, the firm has begun several innovation programs targeted at involving its suppliers and promoting innovation throughout the whole supply chain.
Cost leadership may be achieved by decreasing contracting costs or generating more value in the product to raise the price. Other approaches to boosting Samsung’s activity value include focusing on customer service, expanding customization possibilities, providing incentives, and adding product features. Finally, Samsung should figure out how to keep its uniqueness while maximizing its worth.
Strategic Plan Proposal
Strategy is about the primary directing choices that seek to attain specified objectives. It is a long-term direction, and it describes its aims and objectives. It analyses what options are accessible or open to the company and decides which to seek after. A proper strategy would lead to a competitive advantage (Jang et al. 2019, pp. 1-16). A global competitive advantage is generated by an organization’s capacity to provide a service or a product with an edge that separates the company from its rivals. The organization acquires a competitive advantage when its capacity to sell at a lower cost is greater than its competition, although they both deliver the same value.
Reduced trade barriers, more competitiveness, a shorter product life cycle, and deeper industrial division define the global market environment. Competitive advantages in today’s fast-paced business climate can only be gained and maintained by a company’s ability to acquire and sustain core competencies (Yang et al., 2018, p. 2018). This competitive dynamic is increasingly visible in the high-tech industry, such as computers, communication, and electronics. Not only is Samsung Electronics Company (SEC) Korea’s biggest manufacturer, it is one of the world’s top rivals. With monochrome televisions first appearing in 1971, Samsung has risen at a 38 percent compound annual growth rate, diversifying its product line from basic consumer electronics and home appliances to cutting-edge ICT, computer hardware and peripherals, and semiconductors today.
For effective competition with other manufacturers, Samsung mobile must adopt internationalization tactics. Apple, the company that makes iPhones, is situated in the United States, where buying power is quite large, making it a major competitor. Although the local Samsung mobile client base has considerable purchasing power, the market also hosts other global mobile computing giants, such as LG mobile (Medeiros 2020). This puts Samsung in an awkward position if it decides to focus on its domestic market as much as its key competitors are doing before growing abroad, which is the case in the case of South Korea.
Samsung’s proposed strategic plan
When it comes to achieving an organization’s long-term goals, strategic planning determines the best ways to achieve them. Creating a company’s strategy centers on choosing the best ways to meet the organization’s goals and objectives. For Samsung to achieve the desired business outcomes, various approaches need to be examined. Every organization’s strategy creation and planning process is crucial and must be understood. Samsung Electronics employs evidence-based tactics to achieve the company’s stated objectives. For Samsung to accomplish an organization’s goals and objectives, a strategy must be developed and implemented. To compete in the worldwide market, Samsung has begun this phase.
Thesis statement; It is possible for Samsung Electronics to develop a fresh approach by creating new gadgets and using customer-focused marketing.
Samsung’s commercial potential can be realized more quickly if several suggestions are implemented. We recommend a combination of new product introductions and customer-focused marketing initiatives for the firm. The corporation has produced superior smartphones and mobile gadgets to meet the wants of more clients. Meanwhile, Samsung Corporation may concentrate on developing new devices and software that users will like. In theory, these technologies should be able to help individuals lead better lives.
Samsung Electronics should deploy clever marketing efforts after developing such high-quality products. Effective advertising strategies and promotional approaches should be the hallmarks of these efforts. More individuals will learn about the advantages of freshly developed innovative items due to this technique. It is critical to include input from various sources, both internal and external (Omer, 2019, pp. 56-62 ). By using social media sites like Twitter and Facebook, the company’s goods will reach a wider audience. More individuals will be drawn in by customer-centric marketing strategies. There are several possibilities and risks in the external environment of Samsung. In the last decade, the number of individuals utilizing a variety of hand-held gadgets and cell phones has grown dramatically. Customer use of portable devices is increasing, including marketing, socializing, and education. In light of this circumstance, Samsung can achieve its commercial goals. So the strategy formulation process should follow these customer demands.
It is impossible to disregard the issue of foreign competition. Apple and Nokia, two of the world’s most powerful firms, are challenging Samsung. Tecno Mobile and HTC, two new competitors, pose a fresh challenge to the company. The proposal mentioned above will guarantee that Samsung is at the forefront of fulfilling its commercial potential in the face of such threats (Jang et al. 2019, pp. 1-16). Samsung’s business model will become more popular if more people access high-quality gadgets.
Additionally, new research is undertaken to uncover the best methods that will boost the company’s level of performance.” Samsung should take advantage of the growing economies in many emerging nations. Thus, the company may create regionally-specific marketing strategies centered on its customers’ needs.
Additionally, Samsung can build its proprietary software technologies and integrate them into its products and engineering processes. The company’s mobile division will gain from this, given the rise in the number of rivals. However, Samsung is already a big producer of mobile components necessary for high-end smartphones and tablets. Samsung Electronics (Omer et al. 2022, pp. 49-52). When it comes to shaping future trends, it may break through the present barrier of customer expectations by releasing flagship smartphones and tablets that break through the existing wall of consumer expectations. While the corporation is known for innovating, it also has access to low-cost manufacturing areas that may be crucial in enhancing its competitiveness.
The notion of corporate social responsibility (CSR) may benefit Samsung’s business operations. To help as many people as possible, the company should engage in various activities. Customers might benefit from this initiative in the future. As a company’s strategic option, CSR should be included. As a result, the company’s reputation will rise, attracting new investors.
Samsung’s mobile business requires more energy to maintain its production capabilities, resulting from the general expansion of the sector. A combination of growing per capita income and increasing input prices, such as energy, has caused the majority of industrial sites to lose their low-cost status. In order to avoid damaging the company’s bottom line, Samsung mobile has to identify new production sites or discover methods to absorb expenses without compromising the company’s finances (Medeiros 2020). This action would be a method for the corporation to dramatically reduce its costs and return to profitability. The competition will continue to erode its market share in the long run since it has greater choices for decreasing prices. Samsung’s smartphone business requires a more simplified strategy, similar to what its closest competitor is doing. Instead of developing several products each year, the corporation should focus on only a handful of the three key market sectors (like two). It may then divert extra production resources to marketing to sell just a small number of items.
In conclusion, for the mobile division to gather insights and profit from financing alignment for its marketing or R&D requirements, the corporation must maintain its overall plan for the mobile division in sync with the broader conglomerate strategy. To keep up with the worldwide trend established by Apple, Samsung may want to combine its mobile business with other relevant divisions (Medeiros 2020). An effective way to increase the overall happiness of Samsung mobile consumers would be to merge the company’s mobile and television businesses. This would broaden the variety of applications for Samsung mobile products. On the other hand, consumers are eager to receive the most value for their money, regardless of where they live globally or their position in Samsung’s market segmentation plan.
Module Reflection
The curriculum has allowed me to go further into topics that interest me personally and in which I previously lacked confidence in my ability to present in a classroom setting. The in-class seminars have helped me improve my communication and listening skills and my ability to empathize with others. Additionally, collaborating with others on some projects has added to the fun. We all benefited much from the inspiration and support we gave one other. There are many things that they have taught me, and they have helped me to view items from different angles and create my own opinions as well.
According to my research results, official strategic planning does develop along similar lines in various firms but at variable advancement rates. Phases one through four are characterized by clear improvements over their predecessors in clearly defining issues and alternatives, the quality of preparatory staff work, the willingness of top management to participate in strategic decision making, and their ability to implement effectively. This lesson taught me a lot, and I plan on putting it to good use in the future. My daily routine will benefit greatly from the strategies presented in this course on time management and organization. With the rapid advancement of technology and the resulting rise in cultural diversity, consumer and business demands are becoming more diverse. My work prospects will improve due to my knowledge of this subject.
This lesson taught me a lot, and I plan on putting it to good use in the future. My daily routine will benefit greatly from the strategies presented in this course on time management and organization. With the rapid advancement of technology and the resulting rise in cultural diversity, consumer and business demands are becoming more diverse. My work prospects will improve due to my knowledge of this subject. I was able to understand better my strengths and shortcomings doing this program as a whole.
References
Jang, S.H., Lee, S.M., Kim, T. and Choi, D., 2019. Planting and harvesting innovation-an analysis of Samsung Electronics. International Journal of Quality Innovation, 5(1), pp.1-16.
Medeiros, A.H.G.D., 2020. Equity research-Samsung Electronics Co., Ltd (Doctoral dissertation, Instituto Superior de Economia e Gestão).
Omer, S.K., 2019. SWOT analysis implementation’s significance on strategy planning Samsung mobile company as an example. Journal of Process Management. New Technologies, 7(1), pp.56-62.
Oh, S., Lee, S., Hong, Y.G., Kong, G. and Kahng, H.K., 2022, February. Performance Evaluation of Partial Offloading under Various Scenarios in Mobile Edge Computing. In 2022 24th International Conference on Advanced Communication Technology (ICACT) (pp. 49-52). IEEE.
Yang, X., Yu, X. and Liu, X., 2018. Obtaining a sustainable competitive advantage from patent information: A patent analysis of the graphene industry. Sustainability, 10(12), p.4800.
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