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Samsung Samsung




Electronicsdefine the world we live today. The gadgets include home appliancessuch as televisions, fridges, mobile phones, tablets, computers, andovens, among others. According to Fifield (2011), performing certainoperations, such as accessing the internet and communication wasdifficult a few decades back since the technology had not advanced tothe level it is today. Electronics and home appliances make livingworth because they perform certain operations with much ease(Kozubek, 2012). Samsung Electronics Co. Ltd is one of the majororganizations that focus on the production of electronics andgadgets. The paper analyzes Samsung Company with the aim ofunderstanding its performance in the global electronics market.Samsung Company is one of the most successful companies in themanufacture of electronics and home appliances.

SamsungElectronics Corporation is a South Korean multinational firm,headquartered in Suwon. It is the world’s second largestinformation technology organization by revenue returns after Apple(Kozubek, 2012). The firm has a highly complicated ownershipstructure that entails circular ownership, and it has not beenpublicly traded. The corporation is the flagship division of theSamsung Group that accounts for more than 70% of the group’s incomeannually. Currently, the Corporation has 370,000 employees workingin its 80 assembly plants that are located in 80 different countriesaround the world. Besides, other employees work in the retail outletsand shops operated by the firm around the world (Fifield, 2011). Thecompany’s CEO is Kwon Oh- Hyun who has served since 2012.


Phonesand Tablets

Dueto the high expertise of the company, it is the world’s largestproducer of Smartphone and other forms of cell phones. It high marketshare in the global market is largely contributed to the popularityof its Samsung Galaxy. The corporation is also a key vendor of tabletcomputers, particularly the Android-powered Samsung Galaxy Tab set,and is commonly known as a groundbreaker the tablet market using theSamsung Galaxy Note collection of gadgets. Its Galaxy collection ofSmartphones is the greatest competitor of the iPhone group (Yu,2014). The latest production in the galaxy collection was the SamsungGalaxy Note 7, which was supposed to compete with the iPhone 7. Whilephone makers were focusing on specific operating systems, Samsung atone time used all them. These include Linux-based LiMo, WindowsPhone, Symbian, and Samsung`s own Bada. Apart from the production ofSmartphones the company also produces regular phones which are cheapand convenient (Yu, 2014).


Samsunghas been the world`s primary television producer for since the year2006. In 2009, Samsung was reported to have sold about thirty-onemillion flat-panel televisions. The achievement enabled the companyto maintain the world`s dominant market share for the fourthsuccessive year (Kozubek, 2012). In 2010, the company launched itsfirst complete HD 3D LED television. It showcased the product in theinternational electronic show that was held in Las Vegas. The successof the company was so large that it sold more than one million 3Dtelevisions in just six months of its official launch. The companyalso introduced the 3D Home Theater that allows the consumer to enjoythe 3D image and powerful sound effects at the same time. By theintroduction of 3D Home Theater, Samsung became the pioneer companyin the industry to contain the full collection of 3D glasses, 3Dtelevision, 3D content, 3D offerings, and 3D Blu-ray player (Lee &ampHe, 2013).


Dueto the competitive nature of the products the company produces, manycustomers like its products. The products have proved to be afavorite amongst users all over the world. Moreover, the company hasmanaged to win over the trust of consumers that use its products. Forinstance, as a show of good faith, the company decided to recall allthe Samsung Galaxy 7 phones that had been sold. The faulty batteriesthat could blow were the cause of the recall. In return, thecustomers were either refunded their money or given other phones.Because of the worldwide approval and usage of the company’sproducts, it is very hard to determine who the major customers are.Corporate such as Apple Inc also forms the large segment of Samsung’sclients.


Thecompany has suppliers all over the world. These suppliers either workdirectly for the company or are private businessmen who buy theproducts from the company and sell them. Additionally, the companyhas major distribution centers mostly in the main towns all over theworld. Additionally, other Samsung products can be acquired frommajor electronic and household stores such as a supermarket (Yu,2014).


Samsungcompetitors depend on the category of products. Each category hasother players that produce items that match the effectiveness ofSamsung. Firstly, in television, the company’s products face stiffcompetition from companies such as Sony and JVC. These two companieshave been known to have much expertise in the television sector asmuch as Samsung. Secondly, in the mobile phone industry, the primarycompetitor is Apple. Apple has been known to be a pioneer in cellphone and tablet technology. Moreover, the major competition ofseries of phones is between Samsung Galaxy series and iPhone series(Yu, 2014).

EnvironmentalFactors Affecting Samsung

Manyfactors affect the company either positively or negatively. Accordingto Cheng, the major factor is the great urge for advanced, superiorand complicated electronics 2016). For instance, mobile phoneconsumers need high-tech mobile phones. Luckily, Samsung has beenable to meet this requirement because it produces quality phones.Another environmental factor that shapes the company is the steepcompetition it gets from other companies. The approach has seen thecompany work very hard to meet the standards required to compete(Cheng, 2016).



• Samsungis the world’s major thriving electronics producer.

• Samsungis the world’s number one marketer of mobile phones.

• Samsunghas notable research and design capability.

• Samsunghas high industrialized and marketing capabilities.

• Samsunghas good relations with retailers in Europe the United States thatgive a stable sales channel for its items.


•Samsunghas been unable to equal Apple Inc.’s capability for marketingSmartphones.

• Chinesecompetitors such as Huawei are matching up with Samsung in theSmartphone market.

•Samsungis heavily dependent upon consumer electronics sales in markets withlimited possible for expansion.

•Samsung’sphones use the Android operating system, which is also used by othercompanies.

•Somecustomers perceive Apple gadgets as more superior and reliable thanSamsung products.


•Risingmarket for tablets, Smartphones, and other mobile devices, mostly indeveloping areas such as India and Africa.

• Innovativetechnologies, for instance, wearable tech.

• Increasingmiddle class in developing worlds will add to market for userelectronics.

• Increasingonline market from sales channels like Amazon .com


• Applehas become the prevailing tablet and Smartphone brand in some placeslike the United States

• Apple’sstatus for excellence, reliability, and complexity seems to berising.

• TheGoogle Android operating system, which Galaxy devices depend on uponis not as popular with average people as iOS, is.

• Decliningmiddle-class incomes in the United States and North America coulddecrease consumer-purchasing capability in those important markets.

• Applemight penetrate into more consumer products such cameras and homeappliances and compete directly with Samsung.


SamsungCompany has attained its success due to high utilization strategicmanagement principle. The approach dates back in 1993 when the thenChairman Lee confirmed the start of the so-called “New Management”in Frankfurt. Ever since, Samsung has changed itself from an averageproducer based on low-cost returns to become a world class competitorwith astrong brand worth and best products (Yu, 2014). Thestrategic plan is based on many ideologies that revolve around thefirm`s infrastructure, technology development, procurement and humanresource management (Kozubek, 2012).

PersonalManagement System

SamsungCompany has embraced an open form of administration in the age ofhuman resources management. Open management means that the managersvalue the independence and imagination of the workers thereby,eliminating obstacles in systems and practices to improve competenceand competitiveness. At the same time, this promotes apparentsupervision to grow in accord with the clientele demands (Yu, 2014).The key to the company’s Open HR is management that encouragesequal chances while putting skills and expertise first and discovershuman potential. It stipulates that resources should be accessible toall with no bias and limitations (Yu, 2014). Reimbursement andendorsement should be differentiated on one’s skills. Moreover, payshould be based on handwork, while promotions are based on input tothe company. The most significant aspect is that employees are vitalto Samsung’s achievement. By the introduction of a differentmanagement strategy, the company has moved further to its aim of auniversal first-class company (Kozubek, 2012).

Marketingand Design

Brandingand commercialization strategies of Samsung have played a vital taskin its achievement. One method to know why Samsung is so flourishingis to assess the marketing strategies of the brand in the provisionof 6 marketing imperatives. According to Yu (2014), the six marketingimperatives are significant for marketing success in this century.Firstly, the company has a strong customer focus that majors onconsidering the needs and wants of clients, and also the futureneeds. Samsung has endorsed this with a universal outlook in mind.Secondly, Samsung acknowledges the authority of well-designedproducts. Through design, the company provides functional and movingproducts. Thirdly, the company has a practical design philosophy thatis plain and instinctive, proficient and adaptive. Moreover, itintends to move towards eco-friendly designs and not just productsthat look good. Fourthly, Samsung tries to produce designs that canmirror the lifestyle of the users, which can interact with them (Lee&amp He, 2013).

Samsung`sQuality-Based Management

Samsungmanagement is based on quality and focuses on technology that iscapable of producing large-scale quality products. According to thisphilosophy, it is useless to have an electronic company that providessubstandard products that will have a bad reputation amongst theusers (Yu, 2014). According to Samsung founders, swift improvement inthe design and quality is the cornerstone of the successful brandbuilding. Building a brand with inferior products is tough. Eversince the company has grown into a market driven company thatacknowledges the recommendations of the users. Opportunebrand-building efforts are colluding with the digital age. Yubelieves that the emergence of the digital cellular phone market andthe flat screen television market gives Samsung Electronics anopportunity to battle against other companies in the market such asApple and Sony (2014). Additionally, the invention of Smartphonesoffers Samsung an additional opportunity (Yu, 2014).

SamsungHybrid Management System

Samsunghas been Marjory using the Japan style of management until 1980’s.Nevertheless, in the 1900’s the company adopted elements of theAmerican style of the directorate system due to the achievement inthe semiconductor business. The company adopted the American styleof human resource management while at the same time keeping theJapanese way of management of HR (Lee &amp He, 2013). Samsungacquired talented workers from both inside and outside the country asagents of change. The company’s unexpected success in mixingJapanese’s best practices with those from the west is a key lessonto other organizations and emerging giants. The hybrid system inSamsung has been the principal source of success that has beenrecorded by the company in the recent past (Lee &amp He, 2013).


Asa show of commitment to its customers, Samsung does hold mobileclinics all over the world. These clinics are free and are meant forSamsung customers to bring their spoilt Samsung products for repair.The company does return some of these commodities to the primaryproduction centers if the nature of the problem cannot be handled atthe clinic. By doing so, users are encouraged to buy more Samsungproducts just because they are guaranteed of their durability andfree technical repair (Lee &amp He, 2013). The strategic plan hasseen more and more people embrace a broad range of products from thecustomers. Samsung ensures that the relationship with its clientsdoes not just end at the point of purchase of a company’s product(Lee &amp He, 2013).


SamsungElectronics Co., Ltd has grown rapidly over the recent years. Thecompany is a known major producer of gadgets and home appliances thatare highly recommended globally. Even though the company faces verystiff competition from other players in the electronic industry likeApple and Sony, it has managed to meet the challenge. The adoption ofa strategic management by the company has seen it become a majorworld player. However, the company has more chances of becoming morecompletive if the strengths and opportunities it has are fullyexploited.


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Lee,K., &amp He, X. (2013). The capability of the Samsung group inproject execution and vertical integration: Created in Korea,replicated in china.Asian Business &amp Management, 8(3),277-299. doi:http://dx.doi.org/10.1057/abm.2009.9

Yu,S. (2014). The growth pattern of Samsung electronics: A strategyperspective.International Studies of Management &amp Organization, 28(4),57-72. Retrieved fromhttp://search.proquest.com/docview/224065380?accountid=45049