Samsung Grand Strategy Matrix

Rapid Market Growth 

Slow Market Growth 

According to the grand strategy matrix developed above, Samsung is in the first quadrant. The appropriate strategy involves market development and market strategy as well as improving the existing products. The diversification of products has assisted Samsung to avoid the risks associated with having narrow product lines. Furthermore, Samsung has a strong financial base that allows the company to take advantage of different external opportunities in different markets and fields. Due to the presence of Samsung in the first quadrant, it implies that Samsung is in a strong competitive position because of its strong brand that has been flourishing under a rapid market growth (Cardoso, 2017). The position of Samsung in the first quadrant offers an excellent opportunity to succeed and they should concentrate on the current products and markets. The concentration in the current indicates that businesses have adopted strategies such as market development and market penetration. On the other hand, the concentration on current products indicates that Samsung should adopt product development strategy. 

Recommendations 

Over the past four decades, technology advancement and development has been rapid than any other period in history. On the other hand, the tie between the rise and fall of technology has reduced significantly. State of the art and cutting-edge technology may be declared obsolete within a few days. Samsung is one of the companies that are fully dependent on the development of new technologies. Therefore, it is critical for them to have sustainable strategies that will allow them to cope with unstable technological environments so that they can respond to emerging technologies, problems, and issues that may occur in the short and long-term (Cardoso, 2017). According to the grand strategy matrix and the current situation in the company, one of the problems is the sale of fourth generation smartphones that may be unsuitable and unsustainable according to the current market. According to the matrix, the two main strategies that will assist the company to overcome its weakness include product development and market development. 

The objective of market development is to identify and expand the business over new regions and markets such as Europe, Asia, and South America. The identified regions offer huge potential for market growth and may increase the market share of existing products of Samsung Electronics Company. However, penetrating the regions may be a daunting task because some of them are under the strong influence of its competitors such as Apple. For instance, in the US, Samsung has had a negative reputation in the country because most of the population believes that the company only copies its “new technologies” from Apple and its competitors. Although the paper cannot fully confirm that Samsung copies its technology from Apple, the numerous patents rights lawsuits against Samsung may have had a negative impact on the image and reputation of Samsung in the US (Cardoso, 2017). Moreover, it would have affected their sales volumes in the US. Apple has frequently accused Samsung of patent right infringement. Whether or not the accusations are legitimate, the accusations have tarnished Samsung’s brand image. 

The strategies regarding the expansion of Samsung’s reach in new markets will offer the business many opportunities. Also, they should develop and build their brand before the market is saturated by Samsung’s competitors. Besides, penetrating the new markets through various techniques may allow the company to acquire new competitive advantages. It also offers Samsung a good chance to continue improving their market dominance. On the other hand, there are many businesses in the new markets that can provide opportunities for acquisitions, mergers, or partnerships that may take the business strategy of the company to the next level (Baker, 2014). Some of the companies may have new technologies, finished technologies, and competitive advantages that Samsung Electronics Company can acquire and utilize to develop and improve the existing or new product lines. Implementing some of these strategies is essential in boosting Samsung’s product development. 

Concentrating on product development will offer a firm foundation for the company's Research and Development Department to have the proper experience, innovation, and research to develop unique features for new and existing product lines. Having a strong research and development department will create strong competitive advantages for the company in the short and long run. It will also offer the company a good opportunity to compete in the industry while minimizing their dependence on "copying" new technologies from their rivals (Baker, 2014). However, for the company to receive optimum benefits from the strategy, they must invest in research and technology while protecting their competitive advantages from their competitors. Due to the fact that the company is frequently accused of patent right infringement, it indicates the importance of protecting new technologies in the electronics industry. 

The two strategies will not only help Samsung to solve and overcome their current weaknesses but also improve their productivity in the long run. However, the strategies will only be effective if they are properly implemented. The setup and preparations plans will determine the success of the company. For the market development strategy, the business should identify their priority regions and target markets. Also, they should identify the best penetration strategies. The Asian market offers the best opportunity for Samsung to expand their market due to the increasing disposable income and population. The Asian market offers various geographic and cultural advantages in comparison to other target markets (Baker, 2014). Some of their neighbors such as China and Japan have advanced technologies that may assist the company in improving their competitive advantages. On the other hand, the European market offers a good opportunity because of a larger disposable income than other regions. Therefore, the European market may have a better financial outcome. 

The product development strategy requires a lot of resources and time. The resources not only refer to financial resources but also human and technological resources. On the other hand, it may be easier to acquire new technologies that have already been developed in many small companies in Japan and China. Acquiring new companies will allow Samsung to utilize new technologies that will assist them not only to acquire competitive advantages but also increase their market shares through the acquired companies. Also, the company should ensure that the new technologies in the acquired companies have patent rights to avoid imitation by their competitors. Acquiring new technologies from smaller companies may be easier than developing new competitive advantages and technologies (Baker, 2014). Although the two strategies appear different, they serve a similar purpose in improving profit and revenues of Samsung Electronics Company. Therefore, the company should have a suitable and proper timetable for implementation. 

References 

Baker, M. J. (2014). Marketing strategy and management . Palgrave Macmillan. 

Cardoso, E. A. R. P. (2017). Examining the differences in the internationalization strategies of two of the major brands in the smartphone industry-Apple inc. versus Samsung electronics (Doctoral dissertation).