SAMSUNG

MN7053 GROUP ASSESMENT

 INTRODUCTION

IMPORTANCE OF STRATEGIC PLANNING AND POSITIONING

CHALLENGES OF IMPLEMENTING STRATEGIES ON A GLOBAL LEVEL
BRIEF OVERVIEW OF SAMSUNG
IMPORTANCE OF STRATEGIC PLANNING
AND POSITIONING

 ESTABLISHING GOALS
 ALLOCATION OF RESOURCES
 RISK MANAGEMENT
 COMPETITIVE ADVANTAGE
 INNOVATION AND ADAPTABILITY
 EFFICIENT DECISION MAKING
CHALLENGES OF IMPLEMENTING
STRATEGIES ON A GLOBAL LEVEL

 CULTURAL DIFFERENCES
 REGULATORY COMPLIANCE
 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
 POLITICAL AND ECONOMIC INSTABILITY
 COMMUNICATION BARRIERS
 MARKET AND COMPETITIVE DYNAMICS
 CYBERSECURITY AND DATA PRIVACY
 TALENT MANAGMENT
OVERVIEW OF SAMSUNG

 SAMSUNG STARTED IN 1969 AS A TV PRODUCER AND EVOLVED INTO A GLOBAL TECH GIANT.
 SAMSUNG MAKES VARIOUS CONSUMER ELECTRONICS, SEMICONDUCTORS, AND PROCESSORS.
 OPERATES IN 80+ COUNTRIES WITH R&D CENTRES, MANUFACTURING, AND SALES OFFICES.
 KNOWN FOR POPULAR GALAXY SMARTPHONES AND TABLETS.
 A SIGNIFICANT PLAYER IN NAND FLASH MEMORY AND DRAM CHIP PRODUCTION.
 LEADING IN OLED AND QLED DISPLAYS FOR TVS, MONITORS, AND MOBILE DEVICES.
 FOCUSED ON ENVIRONMENTAL AND SOCIAL RESPONSIBILITY, REDUCING ITS CARBON FOOTPRINT.
 HEAVY INVESTMENT IN INNOVATION, PARTICULARLY IN 5G, AI, AND QUANTUM DOT DISPLAYS.
 FACES RIVALS LIKE APPLE IN MOBILE DEVICES AND INTEL AND TSMC IN SEMICONDUCTORS.
 PART OF THE DIVERSE SAMSUNG GROUP, LED BY A BOARD OF DIRECTORS AND MANAGEMENT TEAM.
INTERNAL AND EXTERNAL
EVALUATION
INTERNAL EVALUATION

FINANCE GLOBAL SUPPLY CHAIN

 SAMSUNG ELECTRONICS IS HAVING ANOTHER 
SAMSUNG’S SUPPLIER NETWORK HAS 2,500
BAD QUARTER ACCORDING TO THE COMPANY’S SUPPLIERS FROM AROUND THE WORLD, THIS
OWN PRELIMINARY ESTIMATES. EXTENSIVE SUPPLY CHAIN MAKES THEM
 QUARTERLY OPERATING PROFIT DECREASED 96 VULNERABLE TO DISRUPTIONS CAUSED BY
PER CENT COMPARED TO THE NATURAL DISASTERS, GEOPOLITICAL
TENSIONS, OR GLOBAL PANDEMICS.
 DESPITE STRONG SALES OF THE NEW GALAXY
S23 SERIES, THEY WERE UNABLE TO OFFSET  THIS CAN AFFECT THE HIGH-RISK LITHIUM-ION
THE WORLDWIDE DECLINE IN CHIP DEMAND. BATTERY SUPPLY CHAIN.
 THESE BATTERIES MAY LOOK LIKE NEWLY
MANUFACTURED, GOOD-QUALITY BATTERIES
BUT TURN OUT TO BE REWRAPPED, DEFECTIVE,
OR ILLEGALLY MANUFACTURED BATTERIES.
INTERNAL PROBLEMS

INTERNATIONAL MARKETING
 VISION AND MISSION STATEMENT OF SAMSUNG COMPANY IS INSPIRE THE WORLD, CREATE THE
FUTURE
 THIS IS CONSIDERED THE MAIN PROBLEM FACING SAMSUNG INC BECAUSE ORGANIZATIONAL BUYERS
NO LONGER TRUST ITS PRODUCTS
MARKET STRUCTURE
 SAMSUNG MARKET STRUCTURE COMPRISES OF FOUR MARKETS: PERFECT COMPETITION,
MONOPOLISTIC COMPETITION, OLIGOPOLY, AND MONOPOLY.
 REGULATORY PRESSURES IN VARIOUS MARKETS REGARDING DATA PRIVACY, ANTITRUST, AND
ENVIRONMENTAL CONCERNS
 LEAD TO INCREASED COMPLIANCE COSTS, POTENTIAL FINES, AND DAMAGE TO THE COMPANY'S
REPUTATION
RESOURCE UTILIZATION AND SOURCING
 SAMSUNG USES NATURAL RESOURCES
 HIGHLY INVESTED IN RECYCLING RESOURCES NEEDED FOR PRODUCT DEVELOPMENT OR PRODUCTION
EXTERNAL EVALUATION

MARKET COMPETITION
 SAMSUNG FACES INTENSE COMPETITION IN CONSUMER ELECTRONICS, SMARTPHONES, SEMICONDUCTOR
MANUFACTURING, AND MORE.
GLOBAL ECONOMIC CONDITIONS
 ECONOMIC DOWNTURNS OR RECESSIONS IN MAJOR MARKETS CAN REDUCE CONSUMER SPENDING.
REGULATORY AND LEGAL ISSUES
 OPERATES IN VARIOUS COUNTRIES WITH DIFFERENT REGULATIONS AND LEGAL REQUIREMENTS.
SUPPLY CHAIN DISRUPTION
 EVENTS SUCH AS NATURAL DISASTERS, POLITICAL CONFLICTS, OR THE COVID-19 PANDEMIC CAN DISRUPT
SAMSUNG'S SUPPLY CHAIN
MARKET SATURATION
 IN MATURE MARKETS, SUCH AS THE SMARTPHONE INDUSTRY, MARKET SATURATION BECOMES A CHALLENGE
EMERGING MARKETS
 SAMSUNG MUST NAVIGATE EMERGING MARKETS WITH DIFFERENT CONSUMER PREFERENCES AND
ECONOMIC CONDITIONS
External evaluation

TECHNOLOGICAL ADVANCEMENTS
 RAPID ADVANCEMENTS IN TECHNOLOGY CAN EITHER BE AN OPPORTUNITY OR A THREAT TO SAMSUNG.
CONSUMER PREFERENCES
 CHANGING CONSUMER PREFERENCES CAN IMPACT THE DEMAND FOR SAMSUNG'S PRODUCTS.
ENVIRONMENTAL AND SUSTAINABILITY CONCERNS
 CONCERNS ABOUT E-WASTE AND CARBON EMISSIONS, CAN AFFECT SAMSUNG'S REPUTATION AND MARKET
POSITION
GEOPOLITICAL FACTORS
 TRADE TENSIONS BETWEEN COUNTRIES AND POLITICAL CONFLICTS CAN DISRUPT SAMSUNG'S GLOBAL
OPERATIONS.
INTELLECTUAL PROPERTY CHALLENGES
 SAMSUNG HAS BEEN INVOLVED IN NUMEROUS PATENT DISPUTES WITH COMPETITORS.
HEALTH AND SAFETY CONCERNS
 EVENTS RELATED TO HEALTH AND SAFETY, SUCH AS PRODUCT RECALLS OR CONCERNS ABOUT PRODUCT
POSITION AND FORMATION

SWOT ANALYSIS
PESTLE ANALYSIS
SWOT ANALYSIS

STRENGTH
 BRAND RECOGNITION: SAMSUNG IS ONE OF THE MOST RECOGNIZED AND TRUSTED BRANDS
GLOBALLY
 VERTICAL INTEGRATION: SAMSUNG’S VERTICALLY INTEGRATED SUPPLY CHAIN ALLOWS IT
BETTER TO CONTROL ITS PRODUCTION PROCESSES, QUALITY, AND COSTS.
 DIVERSITY IN PRODUCT & SERVICES: SAMSUNG IS A CONGLOMERATE THAT HAS INVESTED
HEAVILY IN ALMOST EVERY INDUSTRY FATHOMABLE.
WEAKNESS
 OVERDEPENDENCE ON THE SMARTPHONE MARKET: ALTHOUGH SAMSUNG HAS A DIVERSIFIED
PORTFOLIO, A SIGNIFICANT PORTION OF ITS REVENUE COMES FROM THE HIGHLY COMPETITIVE
SMARTPHONE MARKET.
 LOST CHINA MARKET: SAMSUNG JUST MAKES UP BELOW 1% OF THE CHINA SMARTPHONE
MARKET.
SWOT ANALYSIS

OPPORTUNITIES
 5G TECHNOLOGY: THE GLOBAL ROLLOUT OF 5G NETWORKS PRESENTS SIGNIFICANT
OPPORTUNITIES FOR SAMSUNG IN CONSUMER ELECTRONICS AND NETWORK INFRASTRUCTURE
SEGMENTS.
 EXPANDING PRODUCT LINES: SAMSUNG ALREADY MAKES DISPLAYS, SEMICONDUCTORS, AND
OTHER COMPONENTS NEEDED FOR MANY TECH PRODUCTS.
THREATS
 INTENSE COMPETITION: DAY AFTER DAY, FIRMS, COMPANIES, AND START-UPS ARISE.
HOWEVER, SAMSUNG FACES THE MOST COMPETITION FROM SMARTPHONE PRODUCTS,
CONSUMER ELECTRONICS, AND COMPUTING INDUSTRIES.
 ECONOMIC UNCERTAINTY: THE DISPUTES BETWEEN COUNTRY AND RECOVERING FROM
COVID-19 PANDEMIC HAVE CAUSE UNCERTAINTY IN THE GLOBAL MARKET, LEADING TO A
DECLINE IN THE SALES OF ELECTRONIC INDUSTRY.
PESTLE ANALYSIS

POLITICAL FACTORS
 POLITICAL TENSION AND PRESSURE IN LATIN AMERICA AND AFRICAN COUNTRIES
 GOOD TRADE RELATIONS BETWEEN COUNTRIES
 UNSTABLE POLITICAL ENVIRONMENT & FEAR OF TERRORISM
ECONOMIC FACTORS
 HIGH VOLATILITY IN THE STOCKS MARKETS AND CONSTANT FLUCTUATIONS IN EXCHANGE
RATES
 ECONOMIC CRISIS CAN AFFECT CONSUMER’S DISPOSABLE INCOME
SOCIAL FACTORS
 CUSTOMIZING PRODUCTS ACCORDING TO THE NEEDS OF LOCAL CUSTOMERS
 SAMSUNG HAS TO KEEP IN MIND SOCIO-CULTURAL FORCES
PESTLE ANALYSIS

TECHNOLOGICAL FACTORS
 SAMSUNG HAS CEASELESSLY LAUNCHED INNOVATIVE PRODUCTS
 AVAILABILITY OF WELL-DEVELOPED CELLULAR NETWORKS INFRASTRUCTURE
LEGAL FACTORS
 SAMSUNG HAS FACED HEAVY PENALTIES FOR IMITATING APPLE’S PROPRIETARY TECHNOLOGY
 UNTIMELY LAUNCH OF SAMSUNG GALAXY NOTE 7
 REQUIRED TO FOLLOW SEVERAL EMPLOYMENT AND TAX RELATED LAWS
ENVIRONMENTAL FACTORS
 SUSTAINABILITY IS A RISING CONCERN TO ALL BUSINESS GIANTS, GOVERNMENTS AND
CUSTOMERS.
 THE COMPANY HAS SETUP ENERGY MANAGEMENT SYSTEMS AND MANAGEMENT POLICY
RELATED TO CHEMICAL EMISSION.
 MILESTONE BY REDUCING ITS ENERGY CONSUMPTION BY ALMOST 39%
GLOBAL MARKETING STRATEGY

SAMSUNG’S GLOBAL MARKETING STRATEGY

 SAMSUNG’S MARKETING STRATEGY FOCUSES ON DEVELOPING NEW INNOVATIVE PRODUCTS
THAT ARE SUPPORTED BY STRONG BRANDING AND PROMOTIONAL CAMPAIGNS.
 MR. YUN INITIATED A NEW COMPETITIVE STRATEGY WITH THE GOAL OF DEVELOPING AND
MARKETING SUPERIOR PRODUCTS WHILE ALSO BUILDING AN IMAGE OF SAMSUNG AS A
STYLISH, HIGH-QUALITY BRAND WORTHY OF A PREMIUM PRICE.
R&D INTO INNOVATIVE TECH
 SAMSUNG CHOSE TO INVEST HEAVILY IN TECHNICAL INNOVATION AND R&D. IN ORDER TO HAVE
A COMPETITIVE ADVANTAGE DRIVEN BY INNOVATION
 DURING THE 90’S, SONY HAD AN ADVANTAGE IN CONSUMER-ELECTRONICS, BUT IT WAS
ROOTED IN ANALOG TECHNOLOGY WHEREAS THE DIGITAL WORLD REQUIRED NEW PRODUCTS
AND CONSEQUENTLY, THE FIRM SHIFTED SUBSTANTIAL RESOURCES INTO DEVELOPING LARGE-
AREA LCDS.
GLOBAL MARKETING STRATEGY

PRODUCT DEVELOPMENT & DESIGN

 UNDERSTANDING THAT CUTTING-EDGE TECHNOLOGY DOES NOT ALWAYS GUARANTEE MARKET SUCCESS, SAMSUNG
ALSO FOCUSED ON PRODUCT DEVELOPMENT AND DESIGN.
 THEIR GOAL WAS TO CREATE PRODUCTS THAT DELIVER BENEFITS THAT AT LEAST SOME SEGMENT OF CONSUMERS
WILL CONSIDER TO BE WORTH THE PRICE.
BRAND BUILDING CAMPAIGNS
 LAST AND CERTAINLY NOT LEAST, SAMSUNG’S MARKETING STRATEGY FOCUSED ON CREATING A PROMOTIONAL
CAMPAIGN TO BUILD SAMSUNG’S BRAND IMAGE.
 REVAMPING THEIR MARKETING EFFORTS WAS JUST AS CRITICAL TO THE SUCCESS OF A NEW COMPETITIVE STRATEGY
 ERIC KIM WAS BROUGHT IN TO HEAD A GLOBAL MARKETING EFFORT. ONE OF HIS FIRST MOVES WAS TO RE-
ORGANIZE THE FIRM’S DISTRIBUTION CHANNELS TO BE CONSISTENT WITH THE STRATEGIC OBJECTIVE OF
ESTABLISHING SAMSUNG AS A HIGH-QUALITY BRAND.
 ORGANIZATION’S FIRST BRAND-BUILDING CAMPAIGN LAUNCHED USING FASHION-FORWARD TV COMMERCIALS
 USE OF PROMOTIONAL TOOLS SUCH AS PRODUCT PLACEMENTS, SOCIAL MEDIA ADS, SPONSORSHIPS, EARNED MEDIA,
AND ONLINE ADVERTISING TO STRENGTHEN THE BRAND
IMPLIMENTATION
INTERNAL CHALLENGES

SAMSUNG'S INTERNATIONAL MARKETING

STRATEGY:  CHANNEL STRATEGY.
 EMPHASIS ON TECHNOLOGICAL INNOVATION.
 BRAND PARTNERSHIPS AND SPONSORSHIP
 DIVERSIFIED PRODUCT LINE. ACTIVITIES.
 MARKET RESEARCH AND POSITIONING.  DIGITAL MARKETING AND SOCIAL MEDIA.
 SUSTAINABLE DEVELOPMENT AND SOCIAL  CUSTOMER SERVICE AND AFTER-SALES SUPPORT.
RESPONSIBILITY.
CRITICAL EXAMINATION OF SAMSUNG'S INTERNATIONAL MARKETING STRATEGY:

 STRENGTHS: LEADING BRAND IN TECHNOLOGICAL INNOVATION AND A DIVERSE PRODUCT RANGE

 IMPROVEMENT: BETTER UNDERSTANDING AND ADAPTATION TO LOCAL CULTURES AND

CONSUMER DEMANDS IN SOME REGIONS
INTERNAL CHALLENGES

EVALUATION OF SAMSUNG'S POSITION AND RELATIONSHIPS WITH COMPETITORS:

 FACES PRESSURE FROM LOCAL COMPETITORS IN CERTAIN MARKETS, SUCH AS CHINA.
 COMPETITION WITH RIVALS LIKE APPLE AND HUAWEI IS INTENSE GLOBALLY.

DESCRIPTION OF SAMSUNG'S RESOURCE ALLOCATION, CONFLICT MANAGEMENT, STRATEGY,

STRUCTURE, AND HUMAN RESOURCE SOLUTIONS:

 1.RESOURCE ALLOCATION

 2.CONFLICT MANAGEMENT

 3.STRATEGY AND STRUCTURE

 4.HUMAN RESOURCES

 5.MARKETING ISSUES
EXTERNAL CHALLENGES

 COMPETITIVE STRATEGIES: SAMSUNG MUST CONTINUOUSLY INNOVATE AND DIFFERENTIATE ITS PRODUCTS
TO STAY AHEAD OF COMPETITORS.
 SUPPLY CHAIN RESILIENCE: TO ADDRESS SUPPLY CHAIN DISRUPTIONS, SAMSUNG MAY NEED TO DIVERSIFY
SUPPLIERS AND LOCATIONS.
 REGULATORY COMPLIANCE: STAYING IN COMPLIANCE WITH VARIOUS REGULATIONS ACROSS DIFFERENT
MARKETS REQUIRES RESOURCES AND LEGAL EXPERTISE.
 INTELLECTUAL PROPERTY MANAGEMENT: RESOLVING INTELLECTUAL PROPERTY RULES AND RIGHTS
SHOULD BE LOOKED AT CAREFULLY.
 ENVIRONMENTAL SUSTAINABILITY: MEETING SUSTAINABILITY GOALS IN ELECTRONICS MANUFACTURING.
EXTERNAL EVALUATON

 GEOPOLITICAL RISKS: THE COMPANY MAY NEED TO NAVIGATE POLITICAL COMPLEXITIES IN

VARIOUS MARKETS
 INVESTING IN EMERGING TECHNOLOGIES: INVESTING IN EMERGING TECHNOLOGIES IS
CRUCIAL FOR STAYING COMPETITIVE BUT COMES WITH ITS OWN COSTS.
 CONSUMER PREFERENCES: PREDICTING AND ADAPTING TO CHANGING CONSUMER
PREFERENCES IS A CONTINUOUS PROCESS
 GLOBAL ECONOMIC CONDITIONS: ECONOMIC DOWNTURNS CAN IMPACT SAMSUNG'S BUDGET
FOR RESEARCH AND DEVELOPMENT AND MARKETING
 CYBERSECURITY INVESTMENT: ENSURING THE SECURITY OF PRODUCTS AND CUSTOMER
DATA IS NON-NEGOTIABLE AND CAN BE RESOURCE-INTENSIVE.
IMPLEMENTING THESE STRATEGIES SUCCESSFULLY WOULD REQUIRE A COMBINATION OF
FINANCIAL RESOURCES, ADAPTABILITY, LEGAL EXPERTISE, AND A KEEN UNDERSTANDING OF THE
GLOBAL BUSINESS LANDSCAPE.
 CONCLUSION

 GLOBAL SUPPLY CHAIN MANAGEMENT AND FINANCIAL PERFORMANCE ARE TWO AREAS WHERE
SAMSUNG ELECTRONICS IS FACING SERIOUS DIFFICULTIES. DESPITE ROBUST SALES OF THE GALAXY
S23 SERIES, A FALL IN CHIP DEMAND IS THE INTERNAL CAUSE OF A DIP IN QUARTERLY OPERATING
PROFIT.
 SAMSUNG NEEDS TO REVIEW ITS COUNTERMEASURES FOR THE DECLINE IN CHIP DEMAND IN ORDER
TO ADDRESS THESE PROBLEMS. THEY CAN BECOME LESS DEPENDENT ON CHIPS BY EXPANDING INTO
EMERGING TECHNOLOGIES AND DIVERSIFYING THEIR PRODUCT LINE.
 IN CONCLUSION, TO ENSURE LONG-TERM SUCCESS IN THE CUTTHROAT ELECTRONICS SECTOR,
SAMSUNG ELECTRONICS NEEDS A COMPREHENSIVE STRATEGY THAT TAKES INTO ACCOUNT BOTH
INTERNAL AND EXTERNAL FACTORS. SAMSUNG CAN POSITION ITSELF FOR LONG-TERM GROWTH AND
MARKET RESILIENCE BY SUPPORTING INNOVATION, CONTROLLING SUPPLY CHAIN RISKS, AND
IMPROVING FINANCIAL PERFORMANCE.
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