Samsung Electronics
Samsung Electronics
Samsung Electronics
Samsung Electronic
[Name]
[Institution of Affiliation]
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In the current dynamic world, the advancement in technology has changed the world into
a better place. Due to this advances, various companies and organization have embraced the
latest technology in designing and manufacturing their products. For instance, there has been a
dramatic change in the size of cellphones from the bulky one to thinner ones with advanced
features. According to various studies were done in the past, it was noted that competitiveness
solely depends on upon both internal and external factor. Moreover, this also depends on some
macro-environmental factors such as policies of the country, the degree of consummation, and
the nature of the completion. Therefore, gaining a competitive advantage was very critical for the
Samsung Company (Lee, 2006). To remain competitive on the market, Samsung Company had
to develop new completion advantages such as redesigning and improving its products and
services.
Samsung has been widely known for its electronics products and successful brands in the
electronic industry. However, this company experienced some problems in its products design
which led to a lot of critics. Despite these, the Samsung managerial team was then forced to
create a strategy so as to compete effectively with its competitors such as Sony. To achieve a
global competitive advantage, Samsung was forced to apply the generic value chain model into
their strategic plans. This model entailed personnel management, marketing and design,
development of quality-based management, and hybrid management system. During this era,
Samsung implemented an open era management of cell phone. Its employees were given the
liberty to share their ideas freely and correct their superiors whenever they had constructive
ideas.
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This resource management helped in removing obstacles in the system, and giving equal
opportunities to all its employees to enhance competitiveness and efficiency. Furthermore, the
Open HR system also maintained equal opportunities to all its employees without restrictions or
discrimination (Michell, 2010). With this new management system, Samsung has been able to
move further forward its goals and objectives. This has made it become one of the global class
corporation established on its customers first management philosophy. This enables it to compete
effectively since its employees were free to share their ideas leading to company growth.
The new marketing and branding strategies of Samsung played a tremendous role to its
global competitive advantage. This company utilized the six marketing imperative which is very
critical in the 21st century. To develop a strong customer relation, Samsung advanced its services
to its customers by understanding their needs, warrants, and forthcoming needs. Secondly,
Samsung recognized the power of properly designed products as well as services. Thirdly, its
strong, simple, efficient, intuitive, and adaptive philosophy helped in keeping it at the top of its
competitors. Lastly, its new design of its products reflected well the users lifestyles and is user-
friendly. The quality-based management also helped Samsung to achieve global competitive
advantage. According to Lee, he advised his employee to attack ad bravely timely when a crisis
occurs. These system emphases on technology resources that are the main driving force for
developing best business quality (De & Business Expert Press, 2010). This feature linked human
with the latest technology. Due to the chairmans positive attitude and aggressive nature,
Samsung employees have been able to work hand in hand to improve their products and services
which have made it an outstanding electronic company to gain a competitive global advantage.
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Being a big electronic company, Samsung used two main strategies to compete
effectively with its rival companies such as Sony. The design plan and marketing strategies
brought light to this electronic company. Due to the negative feedbacks, it got from its customers
on the design of its products. Samsung was forced to redesign its products to suit customers
needs. It was a high time for these company to pull up its socks and work on quality and not
quantity. According to Porters Theory of competitive advantage, Samsung company was able to
Evolutionary strategy/approach
The evolutionary approach has been used by many organizations across the globe.
According to this theory, the economic environment changes gradually with time. Notably, most
successful organization usually perform a cost benefit analysis to promote growth as well as
expansion. As a result, this approach was suitable for the Samsung company as a way of dealing
with the negative feedbacks it got from customers. Giving its products a new design was one of
the key things this company needed. This was after Lee found out how Samsung products were
being ignored because of their unappealing design. The new design helped Samsung to decide
what to make and do, why to do it, and how to modernize contextually for over a long term.
Moreover, this strategy involved the interplay between business and design plan. This forms a
logical approach incorporating holistic thinking, research techniques used to notify business
plans, and strategic planning that offers a context for design. This strategy uses social research
techniques to ground results and lessens the threats of any action (Xu & Quaddus, 2013).
Besides, Samsung is one the electronics companies with a huge marketing budget across
the globe. This can be seen in its leadership position regarding market share. Being a
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multinational company, its marketing strategy has played a great role in its success especially in
the western Europe and Asia. In 2013, its marketing budget was approximated to be $363 million
which has declined by 11% over the past two years. This strategy integrates several forms of
events, public relations, personal selling, and advertisements. Media advertising is one of the
most means used by this company in marketing their products and services. One of the major
media advertising campaigns was seen during the launch of Samsung Galaxy S3 cellphone. This
increased its chances to get more customers since many were now aware of the new design and
additional feature of this device (McGrath, 2013). Apart from advertisement, this company also
uses sales promotion as a marketing technique. Samsung company used over $4.5 billion on
advanced energy management systems to improve the quality of their products. The energy
management approach was put in conjunction with the new design plan to ensure that its
products can be outstanding in the current market, for instance, people prefer cell phones with
longer battery life and with advanced features. The new design of Samsung products made it one
of the most competitive electronic company since its was able to capture and attracted many
customers. In most cases, quality works best for many people than quantity (Xu & Quaddus,
2013). Due to this, the company established a working group to ensure that Samsung products
are power saver and long lasting regarding energy. Moreover, Samsung provided additional
The Samsung Company employed this strategy to achieve lower costs than is
competitors. According to the classical theory, it is perceived that the economy is self-regulating.
Thus theory assumes that the prices of goods and products are flexible and that supply creates
demand. As a result, this strategy can lead to work efficiency as well as achieving the
organizational goals. For instance, Samsung utilized the new design to curb the critics that
revolved around Samsung products. According to Lee, it was now all about quality and nor
quantity. This forced the company to restructure its operations, management, and rules. The
Open HR management system helped the company to welcome and share ideas from its
employees freely without discrimination. Most enterprises that use this management system
usually achieve their goals and objectives due to team work. The lower cost offered this
company to obtain huge profits from its sales and services (Lee, 2006). Notably, companies that
utilize this strategy usually produce or manufacture affordable products with a low level of
diversification.
Besides, the open innovative plan also helped this company thrive as one of the best
across the globe. It emphasizes on a companys effort of collaborating and engaging with
external sources and its associates in its innovation process. The availability of internet and
telecommunication technologies has made change more appealing to many companies. Due to
this, many companies have embraced this strategy to keep them competitive in the market.
Despite its pros, this approach has also led to the collapse of many businesses. Moreover,
Samsung has used the new technology to develop and improve their software and hardware to
meet customers needs. For instance, the company had to improve the software specification
which attracted many users. This approach relies on workers attitude (Besanko, 2010).
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In conclusion, this paper has clearly outlines the key factors that have led to the success
of Samsung Electronics company. The Samsung company has utilized the classical and
hybrid management system. Due to the critics it faced in the 80s, the company Chairman Lee
decided to focus on quality and not the quantity of the businesss product. This was after he went
to a phone shop and how Samsung products were being ignored due to their design. Since the
new management declaration in 1993, Samsung transformed from being a mediocre OEM
manufacturer to a world class company. Moreover, other strategies such as creation strategy are
very crucial for organizations future. This is because strategies have to be designed to have a
market share. According to Porter, careful analysis of the competitive field can be done using his
five forces model. This model helps companies to select the competitive strategy that will allow
them to accomplish a competitive advantage in the potential market just an s Samsung did.
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References
Lee, D. (2006). Samsung Electronics: The Global Inc. Seoul, Korea: YSM, Inc..
Michell, T. (2010). Samsung Electronics and the struggle for leadership of the electronics
De, K. C. A., & Business Expert Press. (2010). Fundamentals of global strategy: A business
model approach. New York, N.Y.] (222 East 46th Street, New York, NY 10017:
Xu, J., & Quaddus, M. A. (2013). Managing information systems: Ten essential topics.
Besanko, D. (2010). Economics of strategy. Hoboken, NJ: John Wiley & Sons.
McGrath, R. G. (2013). The end of competitive advantage: How to keep your strategy moving as