Samsung Electronics Strategic Management Case Study

Introduction 

Samsung Electronics is among the biggest South Korean firms which was formed in the year 1969 and initially served as a major project for Samsung Corporation. The company attained fast growth via its major exports. Later, Samsung made a decision to venture into television market. It commenced by producing non-colored television sets that were meant to be used in the local markets with time, it realized that it could make significant steps and become a worldwide brand. It did an extensive search and analysis of the global market opportunities together with drawbacks with the assistance of the clientele and employees’ feedback. Having changed the concept and the component of its brand, the next step for Samsung was to have a complete overhaul of the perception of the clientele, so that they would take the new image with positive outlook. While embarking on the assistance of physical and promotion evidence, this classic company has managed to gain global recognition especially among counties that subscribe to Olympics games. This has made Samsung to successfully change some of the components of the image and has managed to have some loyal clientele. 

Samsung Company is among the biggest electronic firms globally. The company’s mobile phone manufacturing is the leading one in terms of sales unit as at 3rd quarter in 2013. The company excels in selling Smartphone and other featured phones. The company’s major competitor is Nokia; a metric that is measured in terms of featured phones. 

Operation Management

Of late, Samsung has managed to establish 25 manufacturing bases in the entire world, and more than 50 deals in terms of auxiliaries. The auxiliaries are distributed in more than 50 countries worldwide. Their worldwide methodology includes eight principle areas in Asia, the southern eastern part of it, Central part of Asia, most countries in Africa, Central part of Asia, the Middle East, and the Americas. The overriding vision of Samsung is to have a unique approach to their business that is completely different from its competitors. The vision that has driven Samsung is to be able to drive the computerized world so that they are included in the transformational agenda. This contextual analysis is completely in view of the hardware side of the Samsung brand ( Zahra, 2008, p. 130) . 

The functionality of operation management deals with the management process done to generate products and distribute services. The key processes involved in operation management include creation, development, improvement, and distribution of its products. The company’s entire operation management is managed via the operation management. On the other hand, strategic management is aggregate of managerial decisions as well as actions that are determined to measure long range of performance management of employees (Hambrick & Fredrickson, 2004, p. 50). The reason operation management is dissected in the case of Samsung Company is because this concept is most significant for every business especially that it determines the functionality of the firm (Williamson, Harrison & Jordan, 2004, p. 380). Upon conducting the SWOT analysis, it is prudent that Samsung makes unique and separate operation strategic plan for the corporation. Anytime a firm performance, company brand, and product quality are perceived to be instrumental to the clientele and the price. The product development coupled with the promotion strategic plan has been taken to be instrumental to the competitive advantage. Doing a market analysis, SWOT analysis, and the operation competences of Samsung is significant in the presently challenging world of electronics. 

Marketing Plan

In the Samsung marketing arrangement, the organization review is considered in the arrangement and in addition, an official outline of the marketing framework. The assortment of products/services, location, pricing strategy, and usage of the marketing plan is examined comprehensively with regard to Samsung products. Operation management is the procedure of management of the any organization which deals with the every single inward variable. It resembles an extension of the businesses and costumers. It oversee finance, advertising, businesses aptitudes, and representatives’ protection. It additionally deals with the product limit, costumer requests and fulfillments. It makes and deals with the management, control, and the assertion between businesses, workers, and costumers. Operations management is a component of the management aspect that is concerned with the processes of coordinating the creation of products and services. Operation system is the practical methodology; it ought to help and give the rule and guidance to operation and administration for any organization (Sheth & Kellstadt, 2002, p. 590). 

Any organization in the business world aims at making profits. These organizations will aim to cut costs in such aspects as quality improvement, manufacturing expenditure, degree of adaptability, and the costs that will be met in order to have a loyal clientele. Samsung gadgets have concentrates on five business regions, that is, 'they are semiconductor, computerized media, advanced applications, LCD, and media transmission network, the globalization and new patterns of business operation exhibitions of Samsung hardware in most last ten years. This implies that from 1993 to 2003, it was found that there were thoroughly changes inside the businesses that led effectively improvements (Aaker & Mcloughlin, 2010, p. 132). 

In 2007, Samsung gadgets turned into the world second biggest cell phone fabricators. This achievement in key and immediate concern to the diverse market players and clients. This was in line with the Samsung gadgets capacity of the management abilities and showcasing marketing management and product plan. Samsung electronics improvement of DRM items makes enormous impacts to their advancement (Alberto, Gianluigi & Alessandro, 2008, p. 1580). When the learning of micron to make the DRM items straightforwardly impacts the offers of organization, Samsung electronics figures rose to desirable levels thus indicating indispensable income exhibitions, contrasted with other Samsung hardware contenders. There is requirement for Samsung to devise irrefutable and workable diverts in which it will keep on topping the rundown of being the prevailing dealer of hardware. Samsung accomplished a positive income amid its little child years and never again did it encounter money related inconvenience up to the financial year 1994. Throughout the following 3 years, the company's monetary circumstance ended up plainly powerless. Its budgetary standing enhances in 2001, regardless of the 15% drop on its yearly incomes, from the earlier years. Samsung's incomes and benefits have continued expanding consistently and in some cases strongly, which is additionally upheld by the nearness of Internet blast. For example, in 2011, incomes died down by 35% from 2010 (Watson, 2007, p. 380).

Product Marketing Approach

This alludes to a full depiction of an organization's items together with focused markets. Undertaking a comprehensive item showcasing methodology would enable investigators to devise an item advertise development by going for four development designs that include the aspect of diversification, product development and manufacturing, market enhancement and development, and the extent in which the market will be penetrated. Samsung will stand a superior position to accomplish the above procedure (ies) in the developed markets since; the items in that are at the rising stage (Barrow, 2011, p. 27). As a measure of expanding its benefits and deals, Samsung could too induce existing customers to buy more items. This is effortlessly refined amid a monetary development whereby shoppers are more than willing to spend a greater amount of their cash in electronic items. For example, Samsung could set out on utilizing more commercials and deals advancement keeping in mind the end goal to convince customers to buy some of Samsung's exceptionally promoted items for all family members (Junhong and Ru, 2010, p. 67). Alternatively, Samsung could persuade its present clients to purchase other new products that are being delivered into the market from time to time. This can be attined by taking an appropriate promotional campaign. The class pre-eminent example is by Samsung driving out its rivals to ensure fruitful presence in the already targeted markets (Thornton, Domingo & Urbano, 2011, p. 130). 

Samsung ought to guarantee that its market definition is not characterized too barely or too extensively in light of the fact that a center drive of market definition is to enable the organization to build up a system and from there on settle on legitimate choices. The market development methodologies include the accompanying: 

a. Market Penetration: This sort of methodology looks to build deals without fundamentally going astray from the inventive item showcase technique. It includes expanding of its deals to the present customer base and finding of new demographic for existing items. 

b. Market advancement: In this system, Samsung will look to pitch existing items to new markets (in the wake of adjusting them). By utilizing Ansoff network, Samsung will "adjust its present product offering to new missions." 

c. Product advancement: The utilization of item improvement decides that this procedure ought to be utilized by the firm to offer its new items, either with modified or new components, to its current markets. Samsung can utilize this system in creating of items with "new and distinctive elements that will change and lift the execution of the [existing] mission." 

d. Diversification: This methodology will be utilized by Samsung in creating of new for new markets, which could be identified with the present business, or inconsequential. 

Of key to note is that each of the above techniques can be utilized by Samsung to speak to an alternate way that thus is utilized by the association's administration in its quest for development. Item improvement will be instrumental in light of the fact that it will permit concurrent chase for item advancement, advertise advancement, and market entrance to fill in as indications of a propelled, well-run firm and might be key for survival even with financial rivalry." This framework is made out of two noteworthy measurements. The underlying one contains existing and new items though the second one includes existing and new markets. Inside the network there exist four noteworthy classes which proposed developed systems for every one as a method for helping the partnership to set the reasonable heading of their business procedure (Lei and Slocum, 2010, p. 40). 

Application and Assessment of Product Development Model

Samsung is able to make use of this grid in the event when they are planning for their strategic direction. They will have to plan on how they will be able help the drivers of the strategy, like the executives, marketers, and the senior management who will be required to come up with the strategies for further growth. One of the ways in which product development will assist Samsung to eliminate and reduce risks is that they will be able to get the right strategy, thus will be able to achieve their diversification objectives. Also, they will not be met with the misunderstanding the use of a given strategy. Product development will also help the company not to overlook a given strategy. They will exhaust all the avenues that will be made available to them to growth the company. Samsung, with the use of this strategy, will be able to develop products that they will direct to new clientele. They will in turn be able to connect with Samsung because of the aspect that their needs shall have been aligned with that of the company. They will be able to connect with Samsung through airing their product needs. They will also build on their innovation so that they will beat their closest rivals and be able to understand the market well (Harrison & John, 2010, p. 85).

Driving Samsung’s Market Excellence through Innovation

Samsung is the strong adherent that the ability to fabricate the most ideal hardware is joined by incorporating the gifts of the organization's shifted work force into its items, by further recognizing the needs and needs of its differing customer, accomplice and provider base. This will in this manner incorporate working mutually with affirmed prepared minority and business staff, together with entrepreneurs looking to purchase aggressively valued quality items from Samsung. Samsung will keep on partnering with top differing qualities related firms and further take an interest in different group occasions to convey mechanical inventiveness to various groups. It ought to keep keeping up associations with associations by means of worker volunteerism and enrollment, money related sponsorships, programming gifts, and gathering and profession reasonable interests (Capon, 2008, p. 35).

Samsung’s Approach to the Right Financing

Samsung is one of general society recorded firms that complements a capital structure that is able to be supported in the market. This structure encourages the present value financing of all the main business operations. Samsung's choice to pick up the unlisted firm elevates from discouraged the capital design of the organization; one that will discourage the top executives of the attempt to buy the equity of another company that has not been listed. The firm being referred to can set out on using investment; a private value capital which gives monetary support to a flourishing potential business development. Capital wander gives accounts to common ventures which cannot be financed through the use of capital markets and the normal banks. The significant objective of this investment is emphasizing the development of the well-set organizations to IPO prerequisites. Samsung ought to consider wander as a method for financing the market extension and meeting its operation development; this is on account of the wander gives financing administrations that lift Samsung as to operational proficiency (Finlay, 2000, p. 80). 

This kind of financing is gainful in a way that offers Samsung with the essential direction relating to the achievement of its set up goals. It additionally acquaints the business with the connection of other accomplice firms for possible basic needs. The kind of wander financing ought to urge Samsung's exercises towards the readiness of the IPO. This sort of financing encourages the exercises of the organization by bringing down the business chance exposures in purchasing the unlisted firms. Despite the fact that this wellspring of accounts has demonstrated to have extensive increases, specialists agree that it can deceive the organization's targets and objectives since it can review its great techniques and chances to extend in the worldwide market (Nilsson and Rapp, 2005, p. 23). 

Recommendation

Samsung is best appreciated as a firm that sells most of its products to consumers without passing them through intermediaries. It is a good piece of information that interested clientele have the option of purchasing Samsung’s products online. Since Samsung Corporation already owns direct sales model and telephone network, it would be important for the company to maintain the negative cash conversation cycle right from this particular mode (Lei & Slocum, 2010, p. 40). It is prudent that Samsung champions the practice of receiving the payment before paying for the new raw materials and adopting the just-in-time management model. The firm should further seek to offer its electronic products in the right way, right cost, right places, and right time (Blasberg, Vishwanath & Allen, 2008, p. 22). Being in a position to use JIT would meant that Samsung makes electronics and computer products only after the clients’ local area networks and the requested materials have been dispatched to the concerned clientele satisfaction needs (Mina, Connell & Hughes, 2009, p. 10). 

Some observers have expressed the need for Samsung electronics to maximize its stockholders value through the marketing of balanced financial sides. This is coupled by the need for Samsung to stress on the need to have right standard-based technologies and clientele services to meet clientele desires. Another recommendation is for Samsung to initiate the practice of providing skims, electronic materials insurances, clientele insurances, and guarantees (Peng, Wang & Jiang, 2008, p. 930). It would also be instrumental for Samsung to design and market its strategic plans in accordance with diversity and various environments, economics, and business strategies that are geared at stimulating enterprises business. The electronic products being generated by the company should be the ones customer demands, needs, and desires at all levels of production and sale. This further implies that the company should seek to change its design base in terms of the required markets as well as new technologies and other marketing policy options. In case Samsung seeks to maintain its number one position as the leading electronics maker and seller, then it would be better for it to adopt PANASONIC, LG, SONEY, and TOYTA groups as well (Aaker & Mcloughlin, 2010, p. 23). 

It is better for Samsung to manufacture its products in its subsidiary companies the same quality, though different prices. This implies that the company ought to focus its market not only on the richer clients but to cut across all types of clients, irrespective of economic class (Álvarez, Marin & Fonfría, 2008, p. 156). This should however not be done at the detriment of the company’s already set marketing and marketing policies. Provided Samsung studies a feasibility and marketing study of its market needs, and identifies means and avenues of filling the gaps that have been left by its competitors, then it can proceed to outdo its competitors. The management and corporate’s role cannot be downplayed, inasmuch as the company wants to climb up (Porter, 2006, p. 30). The management and shareholders combined should work cooperatively and coordinately to ensure that every role, task, responsibility, and mandate left on their side is effectively carried out. This would go a long way to avoid mishaps in the management process ( Elizabeth, 2010, p. 60) . 

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Bottom of Form

Conclusion

From the paper, it can be seen that Samsung Corporation globally known due to its standout services, reliable products, excellent employees, top-notch innovativeness, and unmatched service delivery. Having these features under its control designates that there is need for Samsung to build up an enormous, responsible stronghold to both global and business citizenship, which will further enable the company to globalize with other businesses and companies spread in various parts of the world. The company is presently leading the world of electronics in advanced direction for newer desirable generations. Samsung’s mission is to emerge the leading digital electronics firm; a mission whose direction can be done by complying with verifiable ethical standards and as well as environmental safety and health. Another move Samsung should immediately undertake is maintaining a clean and organized culture value coupled with respected clientele stakeholders, shareholders, employees, and supportive citizens. The final direction Samsung should consider taking is choosing to improve its power, capacity, quality, standardized price, and size of all the products produced through its headquarters or subsidiary branch companies. 

As a summation of Samsung’s appropriate sourcing of funding, the right form of financing is done via venture capital, which is accredited to the easy manageable and thus should be accompanied with the right follow-up techniques that would foster the venture by propelling Samsung to invest heavier returns. The adoption of venture capital is meant to allow additional advice to the company particularly on how it should utilize its key resources in the long run. The use of venture capital in Samsung’s financial plan would provide the company with stable internal financing done in conjunction with the available market capitalization (Andersson, 2006, p. 44). Being an indispensable source of financing, venture capital is bound to offer the right support to Samsung’s operation frameworks. Having the right capital market funding is also meant to boost Samsung’s access to the finances in a stress-free financial environment. Resultantly, it would be prudent for Samsung to make a selection of the right marketing since the financiers have no control in the firm to properly expedite operative decisions and would trigger forth timely responses. 

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