Technology is the main factor for an innovative company like IBM. (O'Brien, 2013) f 14 2.2 Internal analysis 2.2.1 Overview of Samsung Samsung was founded in 1938 by Lee-Byung-Chull and was originally called Samsung Sanhoe. Firstly, it is a conceptual aspect of strategy implementation: technology was one of the greatest external environment aspects that could influence Samsungs business. Experienced, knowledgeable and skilled managers are more able to predict and successfully react to changes in the external environment and crisis situations. Environmental Management Strategies As a result, SECs Chairman, Kun Hee Lee, launched the new management initiative in 1993 to shift the companys emphasis from providing low-end commodities to high-end premium. Analysis of Internal Environment: SWOT Analysis. Founded by Lee Byung Chull in 1969 Suwon, South Korea. This is explained by the fact that one-fourth of the international workforce is employed in Samsungs R&D department and the second position of the company in Fast Companys Most Innovative Companies 2015 (Knpfle, 2016, p. 3). They have great research and design capabilities that can replicate competitor companies new advancements very quickly. The value of the company's worth is $1.25 trillion with a stock price of $728.35 billion. The superior corporations or the alternative cheaper technology companies pose a potential threat and, thus, encourage the Korean brand to maintain the ongoing development and focus on product innovations. In other words, shareholder value is the sum of all strategic decisions that affect the firm 's ability to efficiently increase the amount of free. Samsungs greatest strength can be used to fix its worst weakness. New Technologies, 7(1), pp. In 2009, Samsung Electronics has reached $ 110.2 billion market capitalization, for the first time beyond Intel, the world's largest semiconductor manufacturer revenue, Samsung in 2009 to $ 117.8 billion in annual sales, revenue has surpassed HP as the world's largest electronics company, is the world's first two big chip plant, second in size Outbound logistics would include well coordinated distribution of smart phones and other products while marketing and sales could be hyped through internet. The brand was positioned as a low-end electronics company that was mainly manufacturing consumer televisions and VCRs. Samsungs supplier partnership strategy helped the company to enhance its level of competitiveness in the manufacturing chain and obtain efficiency and flexibility by discovering and building new suppliers and integrating their ideas. However, in 1990s, during the Asian financial crisis, Samsung cut costs and reemphasized product quality and manufacturing flexibility, which allowed its consumer electronics move from project phase to store shelves within next six months. Concerning the support of technology resources, it was conducted through customized support that Samsung Electronics allowed for assessing outstanding manufacturing sites and advised on advancing productivity and quality (Fig. It also comes up with ways of coming up with funding for projects, enhancing in any opportunities while reducing on expenses. Samsung has improved its competition position internationally through developing its present competitive strategies , through depending on the other manufacturers`. A new ideology aims at enhancing the suppliers capability and taking the role of a globally competent corporation led with transparency and trustworthy culture. Also, it is the largest mobile phone maker and television manufacturer and second largest semiconductor chip producer (Samsung, n.d). The success of Samsung has been highly attributed to its internal strengths. Select the development time of symptoms in neuroleptic malignant syndrome. Apart from transferring the companys novelty techniques, supporting the access to the foreign market, and setting up IT infrastructure, Samsung Company also implemented suppliers innovative capability. Within international market research, Knpfle (2016) defines the main reasons for how Samsung adds value to its marketing process. This started out with setting up their three main business goals for 2011 which were to build a business and workforce as good as its networks, to lead in shareholder value creation and to be recognized as an iconic technology company. To be more specific, the Japanese are known for introducing multiple products, while Americans are engaged in the selection and the emphasis on a small product range. The goal with both types of collaboration is very similar: get people to collaborate in a way that. As such the impact of the external business environment factors on Huaweis marketing strategy are explained by the PESTEL Model as follows: The process strategies, for such a large manufacturing company, would need to be varied. Based on the companys robust competitive advantage, it is possible to say that Samsung Electronics creates more value than its rivals do. To analyze the general external environment, there is a need to use PESTEL. First carried out in 2015 among Samsung Electronics executives and employees, the campaign has been organized for a set period each year to raise people's awareness of the environment and resource recycling and has reused around 2,400 units of waste mobile phones over the past four years. Environmental factors. Firstly, these components of competition are in line with the above-mentioned external factors that would mostly affect the company. 2.1 Strength Samsung Electronics is an international company and one of the global leaders in the technology sector, electronics and electrical equipment industry, and it ranks 15 in the Fortune Global 500 Companies. Analysis of competitive position as well as internal assessment. events that occur within an organization. Samsung used to rule the mobile market until Apple started its iPhone series. Samsung's Strengths (Internal Strategic Factors) Business strengths are internal strategic factors that, in this SWOT analysis, refer to competencies, resources, and capabilities that support the company's value chain, as well as growth and profitability of the semiconductors, consumer electronics, and technology solutions businesses. The company observes high quality standards for optimal customer satisfaction. For instance, overseas shipping should be well planned so that there are no increased costs of labor in Korea and China (Michelle, 2010). External environment analysis of Samsung. Samsung has contributed in so many innovative products to make users life easy such as tablets, mini laptops, and televisions to provide with the wide range of technology for personal use. INTERNAL ENVIRONMENT I. SAMSUNG ELECTRONIC BACKGROUND Samsung Electronic is one of the biggest electronics company in South Korea. The technological environment is the leading advantage for a company like Samsung. Thus, Samsungfloods the market with many products which are made by other companies within short duration of time ( Travos,2002). To maintain the competence within the overseas market, Samsung increased support for supplier capacity to address the crisis that the company confronted. The first one is that of replication. Such an open approach to human resource management indicates respect to the autonomy and creativity of employees, as well as excluding any obstacles in systems and practices to improve the efficiency and competitiveness of the workforce. The above finding is variously justified. 3). In 2009, Samsung Electronics has reached $ 110.2 billion market capitalization, for the first time beyond Intel, the world's largest semiconductor manufacturer revenue, Samsung in 2009 to $ 117.8 billion in annual sales, revenue has surpassed HP as the world's largest electronics company, is the world's first two big chip plant, second in size This means that using their expertise, they would be able to develop cheap but high quality products. Nonetheless, the Korean conglomerate has a significant number of competitors in the global market, including Sony, Huawei, Xiaomi, Oppo; however, Apple is yet considered the biggest rival of the Samsung Company. In fact, a proper understanding of these factors helps organizations to identify potential business opportunities and threats in the international market (Baines et al., 2011). Internal Analysis: Understanding a business in depth is the goal of internal analysis. Samsung has recently come up as a very strong corporation in the global scene especially on mobile telephony. However, they should try to understand the changes in the external environment and assess the impact of those changes on the target market. 1. In 2009 Samsung's market value has reached 1102million dollar, the first time beyond Intel and became the largest semiconductor manufacturers. 45 3. The company regularly monitors trends in domestic and international privacy and personal data protection and works on response plans to adjust to new or modified laws. This trend is likely to continue since other companies are also very vigorous in penetrating the market. BY end of 2011, the companys revenues were $ 220.1 while total assets were $343.7. Regarding the smartphones space, the Korean company faced a critical problem when its revenue and operating profit from the mobile segment fell 7% quarter-over-quarter. In 2016, advertising generated US$79.383 billion or 88.7% of Google's total revenue and 87.9% of the total Alphabets' revenue (Alphabet Inc., 2016). Not to mention that these companies have a high level of experience and have knowledge on how to properly run data centers. According to Peng (2008), some of the strengths of Samsung include research and development, innovation, turnaround strategy, emerging global brand, new products each year and customization. In addition, the executive director incorporates open communication with the companys suppliers through conferences and a cyber petition system. Web. According to Razdan (2017, p. 2), these factors are mainly determined by the speed of technological obsolescence and the prediction of Moores Law. Secondly, social factors are likely to lead to changes in consumer tastes, preferences and attitudes. Samsung Electronics is a large multinational corporation operating on the global level through 169 subsidiaries. SWOT Analysis In terms of environmental protection, Samsung South Africa has already launched a 49 million power initiative that would lead to environmental conservation (Samsung, 2013). Though having some negative feedbacks on its security it is affordable for many families in India. Nonetheless, Samsung is in a constant encounter with the international market competitors that also pursue a fast-growing development and focus on technological innovations, such as LG that launched a new OLED production facility. Moreover, Samsung is proved faster in launching new technology products as compared to its main rival, Apple. 4). To illustrate this we can consider Tata Motors that designed a car selling at $2500 having identified the need for cheap vehicles and introduced market-pull innovation. By taking a leading position in the global market, Samsung proves its fundamental role and impact on the modern technology-oriented consumer. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. External businesses that support Samsung present high levels of uncontrollable risk to the company. Internal Environment: It includes all the factors that are well within the control of a company. According to Jung (2014), the key aspect of open human resource management implemented by Samsung is promoting equal opportunity, prioritizing skills, and recognizing human potential. Therefore, its resources do not only include physical assets but also revenues and acquisitions. Regarding the new technology OLED display panel area, the Korean company is once again leading the market with over 90% market share (Razdan, 2017). With the semiconductors, the company takes a leading position with a global market share of 45.3% in DRAM, considering that three companies govern 90% of the market (Razdan, 2017). "Strategic Analysis of Samsung Electronics Co. Ltd." BusinessEssay, 10 Jan. 2023, business-essay.com/strategic-analysis-of-samsung-electronics-co-ltd/. Huawei, being a multinational company is affected by the external business environment. "Strategic Analysis of Samsung Electronics Co. Ltd." January 10, 2023. https://business-essay.com/strategic-analysis-of-samsung-electronics-co-ltd/. disposable income, gross domestic product and the decline or growth of the economy. Despite the leading position of Samsung, the external business environment keeps posing new challenges due to its rapid growth and ongoing technological changes. In fact, the company already has several promotions whereby clients win various products such as the four NX1000 cameras which are to won weekly for the next four weeks, as indicated in the website. This implies that companies in this sector have to put major investments into R&D and launch new products permanently. The company is using its employees in the decision-making process and they are using the internal and external sources of information for the betterment of the company. Samsung Electronics Company limited is a multinational company which started its, operation in 1969 in South Korea. Younger, less-skilled and less-skilled managers are less able to respond to those changes. At the same time, this strategy implies facilitating transparent management to grow in compliance with their customers. Click to reveal Samsung External and Internal Environment Analysis - Free essays samples for college and high school students We condemn the war and support Ukraine in its struggle for democratic values. However, the company continually learns from its main competitors in the market. However, The Group has developed a system that mitigates external risks. Securing Global Leadership in Technology 32~37p Developing innovative products Non-GRI Internal Creating Safe Workplace and Eco-Value Cre - ation 38~43p Healthy and safe workplace Occupational Health and Safety Internal Eco-friendly products and services Materials, Products and Services Internal Managing atmospheric emissions Energy, Emissions . Samples, help Introduction Samsung is a Seoul-based electronics company that deals with television sets, cameras, personal computer items, print solutions, cell phones, home appliances and other accessories. Within the current fast-growing business environment, it is crucial to examine the fundamental role of the strategy that serves as the determining factor regarding the future of a particular organisation. According to Peng (2008), the company was the second-largest ship maker by revenue in 2010. However, the increasing competitive factors require the corporation to focus on the development of new business strategies to maintain its dominant position. The capabilities and core competencies of the company include wide range of products, high brand value, strong infrastructure, competent employees, vibrant management, financial strength, technological innovation, high investment in research and development, impressive salaries and a higher yield among others. The company currently produces more than a hundred products of numerous varieties and models and involves operational branches in approximately 79 countries (Knpfle, 2016.). Apple's major internal environment is evaluated to determine its strengths and weaknesses in the industry in which it operates. Considering such a critical starting point for this strategy, the Korean multinational corporation effectively handled its management innovation process due to internal innovation and partnership with sub-contractors. Secondly, the company invests massively on research and development. With this in mind, it would be considered that Samsung Electronics would have a relatively good competitive advantage against other rival companies. In this way producers to these technological products face hard times to establish the need in the market. Moreover, Samsung Corporation aimed for achieving stability in managing its partners by organizing training and seminars for the personnel and future managers. The company consists of three commercial divisions, including Consumer Electronics (CE), Information Technology & Mobile Communications (IM), and Device Solutions (DS) with the sub-division, such as Semiconductor (Semicon) and Display Panels (DP). Identifying the driving forces of change in the industry. Moreover, that can be countered through a strong focus on value creation by use of core competencies, capabilities and resources. 9th edn. This research paper generally seeks to explore the external and internal environments of the company. BusinessEssay. BusinessEssay. Internal environmental factors. BusinessEssay. Employing approximately 164600 people in 179 offices across 61 countries the company consists of two business units: Digital Media & Communications . Any global organisation should possess vital competitive forces in both technology and process sectors to become leading in the marketplace. This company, have been growing at a faster rate with an average growth rate of 12.9 percent per year for the, period between 2010 and 2014. In line with the conceptual approach, this is seen as the most serious weakness because it is based on technology, which is a key determinant of profitability and success of the company in the modern era. By 2012 revenues, the company was the worlds information technology company. In the economic segment, the following factors affects any business including, Samsung interest rate, unemployment rate, inflation rate, gross domestic product, the size of. To do so, the paper explores the most influential external environment factors, competition forces, what the company can do to address competition, external threats and opportunities, internal strengths and weaknesses, core competencies and value chain. As the second step, Samsung Electronics developed an equitable trade system to carry out transparent management. By intertwining these two approaches, Samsung Electronics adopts horizontal diversification and vertical integration. First of all, the company has already made handsome profits from the sale of Galaxies. It is one of the world largest electronic manufactures with, more than 70 assembly plants in different part of the world. Although it has a great opportunity in expanding its market and strength in innovation, it is faced with stiff competition from Chinese firms. Verizon kept coming up short when it came to capturing the number one spot of Training Top 125 but in 2012 they finally succeeded in getting that number one spot (Kinicki & Williams, 2013. In this fast-paced industry, Samsung Electronics Company (SEC) has done a remarkable job in turning the company around and reaching a top-of-mind brand awareness over the past few years. With that said, this strategic analysis provides a detailed study on Samsung Electronics, which is one of the leading multinational corporations in the economics sector. The other weakness in the company is the fact that the company produces products that are not user friendly. PG 257). These profits should be used to curb competition arising from Chinese firms. The company's multinational operations continue to expand, despite competitive challenges involving other firms that offer digital content distribution services, such as Pandora, Google Play Music, and Amazon Music.This expansion trend is related to the internal and external strategic factors discussed in this SWOT . Samsung PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. If you continue, we will assume that you agree to our, A fifty-year journey towards a sustainable future, role of governments and the use of political influence for multinational companies like Samsung, establishing a production base in countries to get favourable tariffs and excise duty exemptions, politics determine how the business is managed and led by its officials, Samsung company both lost and made use of the manipulation of political unrest, the support of two competing political parties in South Korea jeopardized the companys reputation; however, it did not impact the situation in western countries, the company expanded its global image due to setting up new markets in the developed world, the economic decline in this region caused Samsung to create new profitable projects in emerging markets, consumer electronic products decreased in lifespan as a result of the accelerated technology obsolescence, companies should estimate new products at a high price to reach the breakeven point quickly, consumers in developed countries are a target audience that can afford new electronic devices, the effective business strategy implemented by Samsung implied the consumers reduction of income in the industrialized sector, the current economic downturn caused by the COVID-19 pandemic requires new approaches to alleviate its negative impact on business, changes in consumer lifecycle as a result of modern fast-growing and evolving society, the increased impulse of buying new products, specific factors of multinational operations adhere to local circumstances, new products and services that Samsung offers must meet the evolving customer preferences in particular countries, Samsung operates within sector-driven-by-consumer lifestyle preferences, reliance on the market dynamism in terms of the companys capabilities, the electronics sector is defined by technological innovation that requires the company to make considerable investments in production technology and R&D, current items need to be continuously upgraded since technology is Samsungs main feature, the company faced a critical production project error with Samsung Galaxy Note 7 resulted in exploding cell phones after launching in 2016, increased focus on climate change that promoted eco-announcements from firms in electronics and computing, adapting eco-friendly materials and systems in manufacturing products that serve as a strong competitive advantage, a conscientious customer demands Samsung is mindful of providing the products that satisfy the modern customer politically correct, preventing from undermining the working standards or the employees salaries that are engaged in the development of the final product, the industry is highly dependent on technological advances, which incorporates the critical issue of IP (intellectual property), product safety concerns have a significant impact on the companys reputation and affect product sales rate, copying or limitation by market competitors: Samsung addressed heavy fines for the copying of Apples iPad and iPhone, the company lost the majority of the legal proceedings to Apple, the company has a high brand reputation with an international presence, integrated research and development capabilities adhere to high standards, solid research and development (R&D) expenditure, one of the strongest patent portfolios amidst technology organisations, product innovation and design competencies, product design based in Korea and production in China, products cost is high as compared to domestic competitors, the rapidly expanding notebook industry and smart home market, families as the target consumer in the TVs segment, Samsung entered the Chinese markets that are expected to grow over 40%, which is higher compared to the international speed 13% (Omer, 2019, p, 58), governments support that serves as the largest customer within the industry, enhanced, more rigorous competition in the industry, specifically from the low-cost companies, such as Huawei and Xiaomi, specific components regularly face supplying constraints, outsourcing companies objective into market, the predominant position of Apple Company in North America. 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