Recommendation Of Business Strategy: Samsung

Recommendation on Business Strategy of Samsung

Introduction

Samsung is a South Korean transnational manufacturing conglomerate that is a global market leader in telecommunication and electronic. The company is trying to retaining its presence in all the continent of the global world. The company has a number of affiliated businesses. In the global market, the company has highest brand value. It is also called the market leader in the electronic and telecommunication industry. The product and services provided by the company are totally innovative and high in quality. This is the main reason that its products and services are more preferred by the consumers in the market. In the year 1938, the company was found by Lee Byung-chul. The company has diversified its business operations into retail, insurance, securities, textile and food processing. In the present time, the company is offering a range of products and services at the reduced/discounted price than others. In this research paper, business strategies of the company would be outlined and explained. Moreover, specific and practical recommendations would be given to company to improve its current business strategies.

Business Strategy of Samsung

In the present time, the company is using various types of business strategies in order to retain customers, improve profitability, increase market share, and attain competitive advantages over competitors. Along with this, it should also be noted down that, the business strategy of Samsung is marked with high level flexibility because company is able to change its strategy as per the changes in the market or external business environment. The following listed below are the 3 main elements of company’s business strategy such as: 

Market Readership: Samsung is also called market reader that has ability to observe the market and develop products and services accordingly. For instance, the company is very fast in replacing of old products with new products. It means company introduces new and attractive features in its existing products to retain the customers for the longer time. This strategy is helping the company improving growth and attaining competitive scope over competitors. Samsung is the company that is more effective and leader in replacing of features and designs in its products and services (Trullen, & Valverde, 2017).

Scanning and Utilizing Opportunities in the Market: The Company Samsung is integrates its business strategies in order to identify the gaps in the market. It is also exploits the business opportunity with optimistic consequences on the bottom line for the business. Moreover, the company is scan and utilizes different types of business opportunities in order to become more competitive in the industry.

New Product Development: Samsung has wide range of product types which are arranged with the three main product divisions including consumer electronic, Mobile and IT communication and devise solution. The company has developed more than 40 research and development centers in the metro cities of the global world. It indicates that, the company has strong product development abilities that helped the company to develop strong base of loyal customer and attain competitive scope over competitors. 

Recommendation to Samsung on Business Strategy

Based on the current market position and business strategies, it is recommended to Samsung that it should bring development and improvements in diverse business strategies as per changes in the external market. For example, the new product development strategy should be modified as per the customer’s expectations/wants and market demand to attain a stronger competitive position in the global market. Along with this, it is also important for the company to execute standardized strategies for the higher consumer satisfaction. On the other hand, it should also enhance its vertical integration business strategy to effectively compete with the Apple. Business level strategies of the company should be connected with different elements including differentiation, product innovation, technological advancements and high quality products. At the same time, it is also observed that, the profit margin of the company is declining day by day because of unproductive use of business strategies. So, company should follow its competitors by adopting effective product development and marketing strategies. Apart from this, it should also focus on launching of a new product fast in the market (Rani, Zuber, Yusoof, Zamziba, & Toriry, 2016).

Samsung should also enhance capacity of manufacturing centers and maintain low cost status for the overall growth and success. Hence, it is important for the company to find new location and areas for manufacturing. Moreover, it should adopt unique ways to reduce the costs. Moreover, it should continue to focus on attractive business/marketing strategies and innovation in order to attract the consumer for the longer time. It should also collaborate with its key suppliers, business partners and stakeholders to make the brand more loyal. Additionally, the company should also develop and improve its true vision and define competitive advantages in order to bring improvements in its current strategies. It should pay attention on systematic growth and success by brining development in its current strategies and practices (Ruiz, Restrepo, Lopez & Kee, 2020).

The cost leadership strategies should be improved and as per this the company should try to develop and launch new products for the customers at the discounted or reduced price as compare to its competitors. It will also be important for the company to build competitive scope and advantages by offering more effective solutions to customers. For case, strategies to reach the customers should be modified as per strategic vision and mission of the company. Moreover, effective communications strategies must be aligned with the corporate business strategy in order to attain competitive advantages over competitors. In addition to this, the company should monitor industry trends and anticipate markets in order to modify business strategy. It is found that, the company has faced a range of issues so it should focus on long run not short term. Hence, there would be need to develop and implement long term business strategies. Moreover, risk management strategies should be used by the company in order to deal with the current and potential market issues. The company should also define objectives of the business strategy and use strategic management plan (Asdi, & Putra, 2020).

Conclusion

On the basis of above discussion and finding, it can be concluded that, Samsung is one of the fastest growing, reputed and leading multinational company that providing different kinds of products and services to its customers at the reasonable price. The company is using a number of business strategies in order to deal with the competitors, improve business performance and attain competitive advantages in the market. But, due to poor utilization of strategies, the growth rate of the company is declining and profit level is going low. So, it is important for the company to modify and change its current business strategies as per internal and external business environment, market trends and industry situation. Hence, practical and appropriate strategies and practices are suggested to the company in order to bring development in its current business strategies.

References

Asdi, A., & Putra, A. H. P. K. (2020). The Effect of Marketing Mix (4P) on Buying Decision: Empirical Study on Brand of Samsung Smartphone Product. Point Of View Research Management, 1(4), 121-130. Retrieved from: http://journal.accountingpointofview.id/index.php/POVREMA/article/download/93/66

Rani, H. M. N. S., Zuber, F., Yusoof, M., Zamziba, M., &Toriry, S. (2016).Managing Cross-Cultural Environment in Samsung Company: Strategy in Global Business.International Journal of Academic Research in Business and Social Sciences, 6(11), 605-613. Retrieved on 4 August 2021 from http://hrmars.com/hrmars_papers/Managing_Cross-Cultural_Environment_in_Samsung_Company_Strategy_in_Global_Business.pdf

Ruiz, E. H., Restrepo, C. A. P., Lopez, C. A., & Kee, D. M. H. (2020). Samsung: Customer loyalty strategy in Malaysia and Colombia. International Journal of Accounting & Finance in Asia Pasific (IJAFAP), 3(2), 57-67. Retrieved from: http://www.ejournal.aibpm.org/index.php/IJAFAP/article/viewFile/835/795

Trullen, J., & Valverde, M. (2017). HR professionals’ use of influence in the effective implementation of HR practices. European Journal of International Management, 11(5), 537-556. Retrieved from: https://www.inderscienceonline.com/doi/abs/10.1504/EJIM.2017.086695