The implication of this weakness is that, even though Samsung is selling more compared to other companies, its recognition in top markets continue to deter its worldwide presence, thus affecting its market share. Regardless, there are significant opportunities the company can capitalize on. One of the opportunities is the ever changing consumer habits. The implication of this opportunity is that, Samsung has the power to showcase its power to meet customer needs. For instance, provide customers with cheaper phones that feature big screens without compromising their design quality.
Samsung implements the strategy of “ Red Ocean;” which shows that a firm gains competitive advantage by venture into the current market and constructing on the weaknesses of other competitors in the field of similar products. Thus, Samsung“floods the market with many products” which are made by other companies within short duration of time ( Travos,2002). It seems that Samsung made these new products through developing many of manufacturing products of its Smartphones. However, such attitude is considered to be as a massive cost advantage over other firms that make such product. Samsung has improved its “competition position internationally through developing its present competitive strategies” , through depending on the other manufacturers`
This has helped Samsung to be listed at the forefront of companies. Samsung successfully entered into two major markets, China and India, this helped the company’s profile by allowing Samsung to expand there. Samsung’s economics of scale advantage means that they are the main producers of technological products such as DRAM and semiconductors that other companies are unable to match. As mentioned Samsung has a very
Thus, they become more competitive and the ones with best processes win market sectors. In this case the competitors react more aggressively and they introduce new IT innovations, instead of imitating the first mover. Competitors compete by introducing new innovations and attracting customers so that they begin to switch from one to another. Therefore they are responding to changing environment. Industry rivalry brings intense and dynamic movements in the market.
It can change the whole business state either in a good or bad way. That what changed Samsung position, they encounter a series of changes to transform its position from being just a manufacturing company to a well-known company throughout the world. It took several phases of changes to improve design capabilities from people, processes, and especially systems. Samsung has strong Japanese roots, as when it was founded South Korea was one of the Japanese colonies. They have been predominantly using the Japanese style management system until the 1980s when they realized they had to make the company go beyond its well-integrated system since they must deal with outside markets.
The group began contributing to foreign economies by building facilities in the US, the UK and Portugal. Samsung also invested considerable resources into fostering Korea’s rich heritage by supporting a wide range of cultural and artistic activities. The final decade of the 20th century saw the evolution of Samsung 's new approach to management. Chairman Kun-Hee Lee 's insightful vision and the introduction of the "New Management" in 1993 acknowledged the need to transform management philosophy in or-der to keep up with a rapidly changing global economy. More recently in 2000, a "Digital Management" approach was adopted to ensure that Samsung maintains a leading position as the Information Age continues to transform global business and culture.
With this in mind, it would be considered that Samsung Electronics would have a relatively good competitive advantage against other rival companies. Threat of new entrants (Low) When looking at the threat of entry it would be considered to be relatively low. To enter into an industry that specialises in electronics requires high capital and it can be difficult to compete against current companies. Samsung Electronics have been able to maintain profitability through the differentiation in their products. Within their mobile industry the company often promote this with the release of the Samsung Galaxy S5 being offered as a “fitness phone” with the addition of “a growing range of smart wearables” being an example of
Samsung is the global leader in electronics. It has become this way by getting a jump start on new and innovative ideas way ahead of its competitors. They have a very strong business practice on surpassing its competitors. Some of the practices are great and others could be bad for the company in the long run. They are trying to become a monopoly over the electronics industry.
Q1 : Samsung company is the one of the large corporations in the world , It specializes in the electronics industry , which compete with a lot and large companies such as : Apple , LG and Nokia , So Samsung adopted strategy to gain profit and achieve global competitive advantages . Samsung company today struggling to achieve global competitive advantaged and they adopt strategies that learns from their competitor , it’s not meant that Samsung ignore their customers , but they are interested in what competitor do and what people bring and produce to the market and study and observing to what seems attacking customers and then coming up with their own products and versions of that innovation . Samsung company are respect the customers
Opportunities There is a growing market for smartphones. There is new technology every minute so Samsung will keep on improving their quality. They have a strong finacial position for the future, they will be able to invest more money in the future because they have been in the business for long so they have secured a atable finacial position. Threats Apple is a huge threat to Samsung, they are always competing against each other to produce the newer, better product. Apple has a reputation making better quality products, being more trustworthy and overall looks