Competitive Advantage and Value of Samsung
From the information obtained from the research, it is evident that the Samsung company is the largest electronic supplier globally (White, 2017). furthermore, the company flexes with the technological information it has. The success of the company has been attributed to sound management, which has seen the company divided into various divisions to ease its management. However, the mission and vision statement of the company is crucial as it provides a route map on how different activities should be enacted for the company to thrive (White, 2017) continually. Due to the qualified human resources and values upheld by the company, it has been able to sustain competitive advantage in the global electronic market
The Samsung company’s competitive advantage has been derived from its sound management and the capability to change to the new demands in the market. Samsung company technology is dynamic, such that it can adapt to the changing demands in the market (Dudovskiy, 2017). One of the competitive advantages of the Samsung company includes its commitment to development and research. The Samsung company regularly conduct a market survey to establish market demand and design their products to suit the expectations of the customers. The investment in the research has played a significant role in ensuring that they remain ahead of other competitors in the market. The Samsung company engineers are always in a quest to develop new products appealing to the customers, thus attracting more customers who will, in turn, lead to company profitability. As postulated by Faizul, Samsung company invests approximately 80% of its returns on research and development (Haque, 2017).
Innovation and design capabilities have played a major role in maintaining the Samsung company’s competitive advantage. For the past 13 years, Samsung company have won the Consumer Electronics Show (CES) continuously, thus earning it a positive reputation in the market, which will, in turn, earn the company more profits (White, 2017). Furthermore, the Samsung company has proved to be environmentally sensitive, thus producing ecologically friendly products. The company strives to produce products that do not release greenhouses gases hence conserving the environment. In the past years, Samsung company have been recognized as the leading market player who yearns to produce environmentally friendly products. Don't use plagiarised sources.Get your custom essay just from $11/page
According to (Haque, 2017)Samsung company, competitive advantage has been derived from its ability to combine Japanese and American strategies in their production. In this case, the Japanese strategy emphasizes the creation of diverse products while on the other hand, the American strategy emphasizes on the small range of products with high quality. However, the combination of the two strategies postulates Samsung company as horizontally diversified and vertically integrated (Dudovskiy, 2017). However, the company has been noted to produce quality products at a lower cost regularly, thus selling quality products at an affordable price. The distribution channels employed by Samsung are friendly, and the products reach the desired client at the right time.
Due to the dynamic nature of society, the Samsung company has been able to introduce new products that suit the demands of the changing environment. For example, the Samsung company continually releases a new series of smartphones which meets the objectives of the society. The division of the Samsung company has made it possible for the company to produce new products regularly. For example, the company has been subdivided into Consumer Electronics (CE), IT & Mobile Communication, and Device Solution (DS) (White, 2017). However, due to Samsung diversification, they have been able to colonize electronics markets. Currently, Samsung is the leading patent company in South Korea and the second patent in the United States. To remain in the market as the leading technology company, Samsung invested $11.84 trillion in technological research. This value indicates that the Samsung company pays great attention to technology, which is desired for the company’s development.
In the current technological world, employs approximately 325,677 employees in 80 countries where the company has its plants. Furthermore, according to the 2019 report of the Samsung company, the company has approximately 200 subsidiaries, which ensures that the Samsung products reach out to all potential customers.
According to Sarah White, the Samsung company has been continuously in the lead in maintain fundamental values, which later results in effective operation within the company. As provided in the case of Galaxy Note 7, the product had the potential to derail the reputation of the Samsung Company, but due to its sound values, the company was able to bounce back and retain its positive identity in the global market (Dudovskiy, 2017). Samsung Company pays close attention to integrity in production. In this case, they produce quality products and quotes the price, which can easily be achieved by most of the potential customers. Furthermore, Samsung company have proven to take full responsibility upon the occurrence of a mistake in their production line. For example, in the case of Galaxy Note 7, the company recalled all the sold products and compensated customers and promised them to produce products with high quality.
Excellence is at the center of Samsung Company values, in all of their production, the company always strives to produce quality products which meet the expectation of the clients (White, 2017). To achieve this, research has to be conducted where certain information to be used in the design is sought from the customers.
Basing on the current performance of the Samsung Company, the company does not need a new strategy. Currently, Samsung company is the leading technology company and has the most sophisticated technology. Furthermore, the company technology has not been designed to be the best in the market but instead to quickly adapt to the changing technology. Consequently, the Samsung Company should intensify its marketing strategies in the emerging markets. Marketing in the emerging markets, which is majorly developing countries, will enable the company to have a broad customer base hence its profitability.
References
Haque, F., 2017. Samsung Competitive Advantage, [online] Available at: <https://www.thestrategywatch.com/competitive-advantages-samsung/> [Accessed 26 March 2020].
Dudovskiy, J., 2017. Research Methodology. Samsung Business Strategy and Competitive Advantage: effective exploitation of market readership, [online] Available at <https://research-methodology.net/samsung-business-strategy-competitive-advantage-effective-exploitation-market-readership/> [Accessed 26 March 2020].
White, S., 2017. How core values shape these five tech giants, [online] Available at <https://www.cio.com/article/3157694/how-core-values-shape-these-5-tech-giants.html> [Accessed 26 March 2020].