Paper Example on Samsung's Strategic Triumph: Navigating the Consumer Electronics Landscape

Introduction

Most companies, if not all, fear becoming obsolete. More so companies dealing with technology. Therefore these companies give high priority to the development of highly strategic and tactical marketing plans (Tasso 2017). The focus is on the dissection of market segmentation and the current market situation, which are vital to understanding the ever-changing target market (Tasso 2017). Without the incorporation of these marketing plans, the organization will have a difficult time in a highly competitive environment, in this case, the consumer electronics industry.

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Samsung is a highly diversified company dealing in areas such as financial services, medical services, consumer electronics, shipbuilding and construction. In this report, the focus shall be on Samsung Electronics which offers a wide range of products, for example, mobile phones, laptops, telecommunications equipment, refrigerators, televisions, air conditioners and light-emitting diodes.

The organization is located in the south of Korea, in Suwon, it was founded in the year 1969. It gets international recognition with 61 countries within its jurisdiction of operation.

This report follows the merging of Samsung conductors and the attributes which have brought about the success of the company. The report follows the vision the company has and seeks to highlight how strategies such as innovation, technology and creative solutions are utilized in market analysis. A richer experience and a better world are what the strategies seek to an outcome. This report shall bring to light the strengths that give the company its competitive edge and the weaknesses that cause the company to operate sub-optimally. For instance, reported use of child labour in the manufacture of some of their products.

The company became the most prominent IT maker in 2009 and swept off competition from HP, otherwise known as Hewlett Packard. It has the highest sales in terms of its LED as well as LCD in the entire globe. It has changed from a low-cost company to a leader in electronics in the past twenty years. The product in question is the latest brand of Galaxy phones (Fowler 2015).

Market Situation Analysis

This market situation analysis was carried out using three different but complementary frameworks. The first one is Porter's five model. This framework analyses the competitive market and links it to the profit potential (Nurlansa & Jati 2017). Industrial structures are not static; they changed with time. Porter's five model shows that motivators of profitability are constant in all industries (Nurlansa & Jati 2017). SWOT analysis was the second framework used. SWOT analysis is the strategic planning instrument that distinguishes essential internal and external elements that affect a company's growth. Lastly, the PESTEL model that is associated with the gathering of information on external factors (Political, economic, social and technological factors) that influence business.

PESTEL Summary

PESTEL or PEST analysis is used to highlight the essential macro-environment factors that may influence a company. Such factors may be threats or opportunities for the company (Hoefer, 2019). The main objective of PESTEL is to investigate the current macro-environment factors, point out the factors that may change with time, and exploit the opportunities to the benefit of the company or protect against any threats to the company (Hoefer 2019). The aim is to stay ahead of competitors.

The analysis reviewed various factors affecting Samsung electronics such as; the lack of their operating system, their focus on the manufacture of too many products, and international regulations on oversees distribution (Hoefer 2019). Samsung being the biggest mobile phone producer and supplier, worldwide emphasizes on the need to comprehend each macro-environment level of PESTEL to ascertain their growth and retain their competitive edge.

Porter’s Five Forces Analysis

According to this model, five forces ultimately determine the competitive levels of an industry and the profitability of the company (Nurlansa & Jati 2017). There are two motivators for a company’s profitability; the industrial structure and the position of the company in the industry. The analysis of the five forces aids the organizations to utilize better tactical openings within the industry (Nurlansa & Jati 2017). Besides, it helps the organization shape up in response to their competition. The five forces are;

• New entrants (ease of new competitors to join the market)
• Substitutes
• Customers (Bargaining power of buyers)
• Suppliers (Bargaining power of suppliers)
• Competitors

A local strategy is what Samsung adopts as it operates globally, but it originates from Korea. Even if the products get sold globally, they get followed by the local lifestyle. For instance, the galaxy gets received in the UK so well due to their high living (Fowler2015). It is widely a fact that electronic products are in high demand. There are numerous reasons why the organization or brand is such a success around the world.

One of them is that they conduct survey research, which gets carried out by asking questions that are aimed at the public generally. Individuals’ preferences, knowledge, and attitudes are derived from the questionnaire on the product and the potential of their acquiring it. Secondly is to have an objective when researching. The main aim of researching is to get feedback from the people on their view of the product, the Galaxy phone.

Marshall and Johnston(2019) suggest that the survey determines whether the market model has met the user’s smartphone needs and requirements; it also makes marketers understand why the brand is not accessible in other regions and what needs to be changed or added to meet consumers’ needs. Recommendations and data are derived from the research conclusively.

The third aspect of research and the most crucial one is the customer. Demographic, as well as behavioural and psychological factors, are used in this aspect. The elements are essential when introducing our product to the globe. A demographic factor should be known, and the targeted geographical area gets covered with excellent access to the network, which comes in handy when utilizing smartphone features. Gender also matters as well as age when it comes to consumers.

SWOT Analysis

The SWOT analysis identifies the strengths, weaknesses, opportunities, and threats that are hindering Samsung's company. The company generated US$211.812 billion in revenue as projected in 2017, increasing in 2016, when it earned 178.473 billion. The profit also increased from US$20.092 billion to US$37.298 billion. The brand's main competitors are Apple Inc., Intel Corporation, Nokia OYJ, Toshiba, and LG.

Strengths

One of the most robust patent portfolios among technology companies has resulted in very high research and development expenditure. In the technology sector, innovation is crucial to succeeding. Marshall and Johnston (2019) noted that the more design gets created, the more a business invests in R&D. In the world, it became the second-largest spender in R&D by US$ 14.857 in 2017: (Marshall & Johnston 2019). R & D spending gets considerably connected with its revenue growth and expansion into the new product market.

Apple, the second spender, and competitor, garnered revenue of US$ 11.581 (Marshall & Johnston 2019). Among its key rivals, Samsung has developed the most extensive patent portfolio by its high R & D spending. The more patents inside a company contribute a better position to defend an innovation from being occupied by its rivals.

Weaknesses

The first weakness is that it relies on American Markets heavily. In the USA, an estimated 70.8% of smartphones are sold by both Apple and Samsung. Another recession with the American economy's unpredictability will put it in jeopardy, and its resources could get damaged. To avoid potential failures if the US economy ever collapses, it needs to involve itself with Asian and European markets. Another weakness is that the sales of smartphones have declined Since 2017

Samsung Opportunities

If it invests in its HR management, Samsung can make impressive transformations. Suppose the company hires highly qualified and skilled employees to improve employee performance and productivity. In that case, it can enhance its brand and image by manufacturing higher-quality smartphones and electronics than its competitors. Another one is that it needs to diversify the target market.

Threats

A lawsuit was filed against Samsung for infringement of a patent that lasted from 2011 to 2018 until a settlement was reached. However, they had to pay damages to Apple of $1.049 billion, which tainted its reputation and lessened its sales (Marshall & Johnston 2019). Secondly, there has been increased competition from other brands, such as Apple, Huawei, and Techno, each trying to outperform the rest. Lastly, there is also the regulatory and legal threat. More and more guidelines are being issued by the government authorities. Such uncertainty requires quick and swift readjustments in business strategies.

Marketing segmentation

There are several techniques used in marketing segmentation (Dibb 2016). Samsung incorporates demographic techniques, lifestyle, geographic, and behavioural traits (Dibb 2016). In demographics on shared features, the customers get targeted using the aspects of marital status, age, race, income, education, occupation, and gender (Dibb 2016). Firstly with an excellent identifiable customer profile, the approach to the marketing of their products is made more accessible.