Business Level Strategy: SAMSUNG
The new technological advancements and innovations have made the world be a small village. The most business community, science, nature, mechanics, football games and the internet have transgressed thanks to the new technologies. In this case study, the focus in on the mobile phone company SAMSUNG that has caused sleepless nights to other organizations due to its skills and prowess in managing their new standards in producing their products and services by astute embrace of technology to its best. However, the success and continuous domination of this company worldwide has been attributed to its compounded business and corporate level strategies (Bhowmik, Li and Bos, 2008). Some of the business strategies used by Samsung Company may include;
Product differentiation and Cost-leadership Product
Differentiation is a process where goods and services in a company are organized such that each fits its package, price and the labels to be used for recognition when being distributed to the ready markets. Samsung has grown worldwide and predominantly in Asia where its headquarters was founded. The Company has invested in cost-efficiency such that a qualified panel is always constituted that brings forth the organization back to its foot when it's almost crumbling down. For instance, in 1997 when the company was facing the financial crisis from the dynamic markets, the build from the cost-efficient workers held it back to its core purpose and since then success has followed the company to date (Coe and Wrigley, 2009). These professionals are involved in the coordination of all units in the Company such that all can match their functions appropriately. It also includes the allocation of resources by the managers and supervisors to the team workaround to (or “intending to”) attaining the goals and objectives of Samsung that has been real and congruent.
Discovering the market Niche
Samsung did this by identifying the consumer needs by what levels of product modification should be done. For instance, the company has till latest the Samsung S4 smartphone that has created competition for other technology-producing product companies like Apple headaches and control of mobile products. The goods produced as a new strategy has gained profits for Samsung to a great deal by the fact that, the new products are not standard in the market place hence fetch a lot of cash due to their demand values. Forming an excellent strategy any company would grow from, and Samsung has used it efficiently. Technology in Samsung has made them cater for large portfolio and creation of customized design of products. The effect of this comes from the numerous research and models (R&D) that the company used to know better its future markets (Rowley, Chris, and Johngseok Bae 1998).
Distinctive Advantages
Through a series of core competencies and competitive advantages, Samsung has been able to give other competitors trouble in the markets. The strategy was the advancements in producing more sophisticated and right products that other companies have not thought or do not have in mind for the growing market. For, instance the Samsung Galaxies and the S4 smart phoned. These products automatically gave a clear distinction between the company and other prospective competitors. It involves the resources the company has been using efficiently to produce its products such that the goods are unique and cannot be duplicated by other organizations dealing in the same business. The result will see a proper supply chain that makes sure the products each the hands of their consumers or the targeted audience (Coe and Wrigley, 2009).
A Qualified Human Resource
Every organization in the world cannot perform without the existence of a useful Human Resource. The department is involved in providing the labor force and expertise in handling the reputation and the consumer relations in the outer structure of the company who are the targeted customers. Samsung has used this business strategy to influence and improve the grass root and the availability of their products to the ultimate consumers wherever they are, and that's why their brand is all over the world. The human resource at Samsung has adopted both skilled and unskilled laborers to allow inclusiveness of the entire market spectrum. The outcome is the significant revenues and inputs the broad market provides to the organizations. It also improves the possibility of getting sponsors that would advertise their news stories while using Samsung as a brand (Rowley, Chris, and Johngseok Bae 1998).
Corporate Strategies at Samsung
Long ago, Samsung Company has struggled to exist in the global sphere of matters technology. Through the company's appropriate strategies and dedication, Samsung has turned out to be an outstanding player hence eclipsing almost all the actors involved in the mobile and technological accessories productions. What the revenue returns at Samsung is evident for its hard work and fundamental focus on its objectives and goals (Coe and Wrigley, 2009).
The Monitoring Concept
Samsung is great in the business world about following from their competitors’ desk. The company does a lot of watching of the innovations its competitors are bringing in the business market. In turn, the organization employs Marker Researchers to evaluate on the innovations being introduced by the new competitors then the slowly re-assess it and use the outcome of that change to make a better product. Thus, the impending opponent ends up being common with its products and Samsung enjoys the uniqueness involved with its new product into the market horizons. For example, the S4 smartphone and tablets (Bhowmik, Li and Bos, 2008). Samsung has come up with affordable products as a result of the innovations. For instance, the IPhones that was really in demand due to its differentiated features in the markets that matched the consumer needs. The Company made the IPhone more glamorous by introducing larger screens and different features that made it more appealing to the customers hence a success in the marketing strategy of the Company. For example in Asia that consumers wanted a phone that would be hand-written on, Samsung uses its technology to form a ‘phablet’ which was a phone intertwined with a tablet to enable the demanding customers to be able to have their wish. The result was a positive group hence popularity in the continent escalated the returns. The company has come the only 2nd to the IBM of market competition on technology accessories which is a significant contribution to the brand (Coe and Wrigley, 2009).
Aggressiveness and Risk-taking
Samsung has engaged in numerous counter-effects from its financial bargains. The company has put close to over 6% of its revenue to maximize innovation, unlike other competitive companies. The will power at Samsung has created a separate ground for improvement and a tactical challenge for other competitors. Samsung being the largest chips producer and other technologies have made it increased its dividends hence can compete through pricing and improve on its features. The superiority of its dominating budget has allowed it to introduce the flagships on Samsung Galaxy phones in the United States. The budget is non-comparable with other competitors I the business making it a super-performer in technological and mobile telephony accessories (Rowley, Chris, and Johngseok Bae 1998).
Distribution and supply chain
Samsung has eclipsed the evolution of phone making and was not just a manufacturer but a conglomerate. To arrive at such status, Samsung has been involved in a make- up of new structures that are put in the smartphones such that, the flexibility in its products has increased vehemently regarding what it produces, where and when. Samsung has both electronic and displays product and services that are numerous in the market. Researchers in the industry estimate that Samsung product itself like the IPhone 5 has been countered by its new Galaxy smartphone such that in a matter of a year, the new Galaxy will eclipse to more than 55% of counties that IPhone had already existed. The effect is to show how powerful the Samsung products are regarding quality and innovation (Coe and Wrigley, 2009).
Management and policies
Most of the management are Korean, and criticism has dominated the organization by blames of hierarchical power. But as analysts would put it, it is more powerful to maintain the business objectives and getting the commitment and ambitions than faulty criticisms of dominance. Samsung has not been hesitant and engaging in the business world, and this is why it still performs as some firms have failed because they fear to take the risk but just want to win cheaply. Samsung has used every tool to make it a world Android producer and with its valuable strategies and determination, it will achieve the success in years to come (Coe and Wrigley, 2009).
Future Plans
Samsung highly depends on its ability to deliver a game-changing kind of products in the market. The result will be the differentiation of its primary products such as IPhones. The outcome should be beyond its general marketing strategy and providing a bigger screen for its technologies. The hardware part in Samsung is great, and the company has started investing in the Silicon Valley that is aimed at helping it major on bigger software productions. The software will boost the performance of the products in the market and increase the high competition levels to make it untouchable as time goes (Bhowmik, Li and Bos, 2008).
Significant Competitors
Samsung's chief rival has been the Apple Company that also manufactures products associated with technology products. Unlike Samsung, Apple has a way of cash bailout but is never willing to foster it into the markets for business prowess. Samsung takes its chances and in return has given them superiority that it deserves. The Apple Company tries to ignore some features that Samsung uses to assemble its products such that analysts argue that they too like Samsung are just as equal in technology productions as Samsung. Both Apple and IBM have a strong connection with funding but Samsung only out-ways those out on the context of engaging its revenue returns in the new advancements in producing better products. Apple Company has an elaborate and future-oriented supply chain. However, the Company has not yet got involved in the internal execution of its services and depends on external sources to complete its cycle. This notion can cause some delays in differentiating the Apple products leading to difficulties in marketing and distribution. The difference here is where Samsung counters this competitor by highly investing in the Human Resource and who widens the market scope via research on every continent and their consumer ship levels (Coe and Wrigley, 2009).
Samsung has defeated the Apple Company by maintaining its technology leadership. The real leadership is attributed to the fact that it has spent a lot since 1998-2005 it the research and development that Apple has not concentrated so much upon. The Company gained high premiums in the initial stages thus making its competitors vulnerable in the market segment. The organization was maintaining the prices due to high demands and control of prices of their market. This strategy made the other competitors vulnerable without power.
Samsung module on Differentiation.
The competitive advantage of Samsung over Apple has been the positioning and attractiveness it has been in the market spheres. This has led to the attainable of the cost advantage by Samsung that is found in the focus level, leadership skills and ultimate differentiation of its products.
These two Companies have muscled it out in the United States such that the other companies have felt inferior. It is their power of strategizing that has catapulted their co-existence in the world of smartphones and technology (Coe and Wrigley, 2009).
References
Bhowmik, Achintya K, Zili Li, and Philip J Bos. (2008). Mobile Displays. Chichester, England: J. Wiley & Sons Print.
Chang, Se-jin (2008). Sony Vs. Samsung. Singapore: Wiley Print.
Coe, Neil M, and Neil,.Wrigley (2009). The Globalization Of Retailing. Cheltenham, UK: Edward Elgar Print.
Rowley, Chris, and Johngseok Bae (1998). Korean Businesses. London: Frank Cass Print.
