History and growth
The Samsung Company started in 1938in Korea, where it dealt with agricultural products. As time went by, the company started to focus shipbuilding, chemicals and textiles production. The Samsung Electronics Company (SEC) started in 1969 and it manufactured low-cost Televisions. In 1970, the company launched a semiconductor business and opened ways for the future growth in advancement of electronics. By 1980s, the company popularity in the global market was rising due to massive supply of TVs, VCRs and Microwave ovens.
In 1997, the Asian financial crisis caused damage to SEC where their sales recorded negative net profits. The new management initiative that had been launched earlier by the company’s C.E.O played a very positive role. The company changed its strategy and by 2002, it had increased their net margins from -3% to 12%. The company reduced the 1997 debt from $15 billion to $4.6 by 2002. By 2003, SEC was the largest in the Asian region and it had a market capitalization of $41 billion. In the same year, the company set aside $17 billion that will be used in the manufacture of LCD-TFTs that produces flat screens for TV’s and computers.
Strengths and Weaknesses within the Company
The major strengths of the company include:
Hardware integration; most of their products integrates with a variety of software’s and Operating systems. This gives SEC an edge in market competition over its rival like the Apple’s.
The company is highly effective in production of hardware components like the memory chips and processors. Their TV and mobile phones brands are also well received in the market making the company the first in the market share.
The company global marketing strategy is very strong therefore it creates a larger customer base. The SEC takes part in sponsoring sporting events and they also engages themselves in social contributions. Their brands are considered top rising and they are most valued in the global market.
The major weaknesses within the company include:
Lack its own operating system and software- the company has a disadvantage since its competitors have their own OS and software therefore enjoys high profit margins than Samsung. They lack a chance to increase the brand loyalty as since they outsource the products.
The company had the largest revenue but records very low net profit margins as well as low gross profit. The smartphones are highly profitable but the semi-conductors have lower sales. SEC has a tendency to aggressively reduce prices of items and this affects their profits.
The company focuses on a variety of products; since the company concentrates into four main areas, they have many different products. This is problem since they sometimes loses focus on certain products and concentrates on certain brands
Opportunities and threats
In opportunities, SEC must ensure that it produces unique brands and products that dominate the global market. It will be of help when Samsung starts to create their software and avoid outsourcing. They can also launch their services to other countries so that they can increase the customer base. The company can also take part in product development and this will attract many customers. They should also engage themselves in taking place in major events to create attention.
The company operations are affected by the various threats. It has a linked product line which can be destroyed by failure of a certain product. The high number of rising low-cost companies is creating a stiff completion in the market. Most companies are very active in advertisements and they ensure that they create attention to attract consumers. The health and mental concerns that are brought by innovative technology have made governments to scrutinize the companies and this is a great challenge to its operations (John and Anna 61).
Analyze Your Findings
The strengths of SEC are built upon finance, personnel and manufacturing capabilities. Since the company does not have their own OS and software’s, starting to develop them will increase their profits margin and stability in the market. Since the company’s hardware components easily integrate with different software’s, the management can utilize this to market their brand in the global competition. Since the company produces many brands, it can be of help if they do away with the products that do not generate high profit margins. In my analysis, I learnt that SEC is very competitive and it fits perfectly to offer stiff competition to other companies. The SWOT analysis of the company shows that it can continue to achieve in great ways if all the stakeholders are involved.
Corporate level strategy
Samsung is led by a single vision that is to lead the digital convergence movement. The company believes that that through technological innovation, it will find the solution it needs to address the challenges of tomorrow. It aims at developing innovative technologies and efficient processes that will create new market and make life better.
The company’s mission is simply to be the best digital company. This is achieved through; creation of leading technologies, efficient management and production processes and focusing on its vision. The company goals are subjected to changes each year but they are; be among the top three quality and quantity producers, increase sales and revenue, increase market share product and pursue innovation.
Samsung is known worldwide for electronic production. It deals with, DVDs, computers, mobile phones, TVs among others. Its cooperate strategy include fast learning, investments and risk taking, supply and distribution, management and focus to the future among others. It has acquired shares from many companies such as MEDISON, Neurological among many and by April 2011, it had 59 unlisted and 19 listed companies as subsidiaries and affiliates. These have helped Samsung be more competitive but also their qualities are low in comparison to others.
Business level strategy
Samsung Company employs the best competitive strategy in the electronic word. This is through innovation and its fast learning policy from competitors and the consumers. It creatively identifies the niche and takes financial risk in investing.
Its marketing strategy is based on various pillars. Pricing, has contributed to its success in the market since its prices are generally low than her competitors. Distribution of its products worldwide has enlarged her market. Vigorous and effective advertising and sales promotion in the most prominent channels creating awareness for her products gains her larger market than any other electronic company does. The Samsung global brand makes it recognizable worldwide. It started product initiative to change consumer perception through design and innovation.
The cost of Samsung products are low compared to others, this has enabled it to make high returns that are subsequently converted into innovation and new investments. Its general focus in meeting the market demand and providing innovative products that are of new technology at a lower price prompts its growth and expansion.
The implementation team is made up of,
a. Principal: he is the manager and an expert in specific industries. He provides guidance and mentorship to the other team members.
b. Engagement manager: he is the project leader who aligns the project objectives, work scope and time period for the project.
c. Global strategist: Together with the project leader, he is responsible for planning, analysis and delivering final recommendation.
d. Project coordinator: He acts as an advisor to the Global Strategies due to his experience in the industry.
e. Project strategist: provide administrative support to help project teams function efficiently. He secures project budgets, trips, planning meetings, approval and translation support.
The team is structured into two ways: standalone and taskforce teams. The standalone organizes majority of the projects and the taskforce complete the projects.
In the success of the company, the management has extension programs that are meant to appreciate workers effort in the realization of the company objectives. Most commonly are the pay increments, Christmas gift and promotion. The relation among staffs and the outside environment is maintained to enhance productivity (Michell & Tony 67).
Despite its success, Samsung in order to gain total control of the market has to check the quality of its products. The features and prices are appealing but the durability of its product is questionable due to their low quality. Trial innovations are necessary before investing on raw market niches. The company should test the products so that it can meet customer requirements before its mass production. This will ensure the production of quality products. Be authentic, instead of copying other brands like Apple and Nokia, the company should come up with its original products to show its originality in creativity. Avoid fast innovation market rush. The haste in innovation my proof costly if the project fails.
Michell, Tony. Samsung Electronics and the Struggle for Leadership of the Electronics Industry. Singapore: Wiley, 2010. Print.
Quelch, John, and Anna Harrington. "Samsung electronics company: global marketing operations." Harvard business school 9504051 (2008): n. pag. Web. 7 Sept. 2013.