Samsung Case Study

Document Type:Essay

Subject Area:Business

Document 1

The founder was Lee Byung Chul started the company as a trading company. Currently, Samsung manufactures a handful of electronic appliances that are useful. Before delving into electronics and other appliances including shipbuilding Samsung as a company was in various other fields including; the textile industry. Insurance, securities, and many others. However after the death of Lee Byung Chul the company divided into subsequent companies leaving the Samsung group handling electronics ("History | Company | Samsung US," 2018). However, the company has been involved in a number of political scandals in its home country, South Korea such as the admission of the Uri Party representative of the 50 to 60 billion receipts from Samsung (Coe and Lee, 2016). Within the home country, Samsung has been extensively involved in the political arena, but in other regions, it has tried to minimize its involvement as much as possible.

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Other political factors that have also been effective the company include factors such as lobbying, elections, pressure and interest groups among others. Economic factors The currency of the home country that Samsung operates in has been seen to be a contributing factor to the detrimental global impact on the company. The decline of the company’s sale in 2014 by 25% can be attributed to the strong Korean currency (Yun, Park, Lim and Hahm, 2015). As such, technology has a great role to play within Samsung as it determines the whole basis of operation of the company. In addition, as far as harnessing the power of technology is concerned, Samsung can be considered to be at the forefront since it is driven by innovation in order to achieve a sustainable business.

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It is also important to note that the mission and vision statements of the company are aligned with technology, meaning that it plays a great role within the company (Fakhri et al. Environmental The rise in ethical consumerism has seen to it that there is more inclination on the brands and the products that they choose to buy. Consumers are after products that have brand names, and Samsung fits in adequately in this instance. Threat of New entry In this force, the barriers to entering the same market or industry as the company are assessed. Within the telecommunication industry, more so the mobile manufacturing industry, there can be seen to be high barriers to entry mainly because most of them are global companies.

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Samsung is already present in a number of regions and countries, and evidently, the factors from the host countries have proven it hard for new entrants to enter emerging markets (Fakhiri et al. Looking at Samsung, the company has entered a number of emerging markets through step-by-step approaches and also over the years, it has been seen to exit markets that are not profitable to them. In summary, when it comes to the entry in new markets, Samsung has to conduct research to assess its viability. Competition within the industry The final force to look at is the competition within the industry. There are a lot of companies that offer the same services as Samsung and operate globally. As such, this means that competition within the industry is stiff.

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In most cases, once the competition is heightened within a given industry, some companies are forced to exit the market due to loss. However, despite the competition being high, Samsung has stayed on top with even being the second best-selling tech-based company last year, only being beaten by Apple (Sharf, 2016). This will mostly apply to the emerging markets that the company will seek to invest in. there are a number of market penetration strategies that the company may choose to focus on that will suit its needs and also look at the competitive market environment that is already present in the industry. The most effective in this case would be adopting the price penetration strategy in which the company will seek to penetrate the markets with their quality products and effective services (Saeed, Nematiyan, Albonaiemi, 2016).

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Recruitment based on skills and competencies This aspect will provide for the company with an opportunity to operate effectively and strategically within the market. Recruiting people based on the required skills within the organization will increase efficiency and performance. Therefore, it ought to ensure that these factors impact it positively and not negatively. On the other hand, the factors that were realized on Porter’s analysis can be used to the advantage of the company as they can help identify the strongholds and weak points within the market. References Adams, M. , & Bell, L. A. Choi, B. , Kim, J. , Leem, B. H. , Lee, C.  Economic Geography, 82(1), 61-88. Dcosta, A. PESTLE analysis history and application.  by Edwards G. , http://www. , Bay, A. , Avazpour, M.

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