Module 5 SLP Assignment
INTRODUCTION
In the past, the Samsung Company was struggling to catch up with its competitors in the smartphone market and, therefore, needed to develop strategies that would make it a leader in the smartphone market. The company had to strategize well and come up with better strategies to catch up with the trendsetters. However, did these strategies succeed? Did the company achieve its goals and objectives from these strategies? From the company’s official website is its philosophy and goals: “Samsung follows a simple business philosophy: to devote its talent and technology to creating superior products and services that contribute to a better global society”. To answer these questions, we will look at these strategies that were applied and how successful they have been to the Samsung Company. The strategies they adopted include the following:
- proper study of its competitors and the market trends,
- ensuring they offer high quality products,
- increased advertising and increased market presence,
- ensuring better pricing for their products
- Making use of its supply chain and distribution.
Many have argued that these strategies together with many others have been the reason behind Samsung’s growth in recent years. The company is now regarded as a major force in the smartphone market with its various ranges of products that are giving rivals sleepless nights.
Market Research
When the company realized their market share in the mobile phone market was diminishing by the day, they decided to do some market research by concentrating mainly on the consumer needs as well as studying their competitor’s and products that were doing well in the market as at that time. The research would then give the company direction to take in an effort to improve its sales and catch up with these trendsetters. This strategy greatly paid off as it gave the company the information it needed on the customers’ needs and preferences, their expectations as well as insight on their rivals.
One of the things they learned from this research was the need for high quality products in the market. According to the company’s website: Making a Better World: through innovative, reliable products and services; talented people; a responsible approach to business and global citizenship; and collaboration with our partners and customers, Samsung is taking the world in imaginative new directions. The company has greatly invested on its production process ensuring they produce goods that are of better quality and desirable by many. This can be attributed to the fact that Samsung is now a leading producer of smartphones in the World with the latest make being the Samsung Galaxy S5 that is yet to be released into the market. This strategy has paid off with Samsung being a favorite among smartphone users. Although the company has been accused of imitation in the past, there is no denying the fact that Samsung’s products in the smartphone market are a force to reckon.
Increased Marketing of Products
One of the major strategies that have been touted as the key to Samsung’s rise in global markets is the aggressive marketing that the company has undertaken. Recent studies suggest that, among the world’s leading smartphone makers, Samsung is the highest spender on marketing its products. The report shows that Samsung spent more than 5.7 percent of its revenue in the year 2013 compared to Apple that spent only 2.4 percent of its total earnings that year. Their marketing strategy seems to be paying off with increased sales recorded in recent years. They should maintain this strategy especially in foreign markets such as India and Africa.
Another reason the Samsung Company has been able to maintain its success in the past few years is the level of pricing of their smartphones that have been considered relatively cheaper compared to its competitors. However, the prices are still too high for the majority of would be customers. The Samsung Company needs to carry out enough research on the needs of the customers and produce products that can be affordable.
It is important to note that Samsung is not only involved with mobile phones production, “it is a conglomerate, a manufacturer, and currently ranked the largest chip-maker in the World.” This gives it an advantage over other competing firms as it makes several components used in making smartphones. The company has the necessary flexibility and has a better cost advantage than its rivals. To ensure they remain a top brand in the smartphone market, they need to ensure they maximize on these advantages at the expense of their rivals.
CONCLUSION
The growth of Samsung Company in the smartphone market in recent years has greatly been attributed to these factors. The company was able to turn around its fortunes when it realized it had been overtaken by its rivals. Although these strategies have been successful in the past, the management needs to come up with newer ones to ensure Samsung’s position in the global smartphone market is not interfered. The success of Samsung greatly depends on their plans for the future. The Samsung Company vision 2020 suggests: “This vision is at the very core of our commitment to lead innovations in technology, products and solutions that inspire communities around the world to join our aspiration for creating a better world full of richer digital experiences.”
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“Samsung has a totally different strategy from Apple and its working great” by Max
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