Table of contents Acknowledgement .............................................................. Ошибка! Закладка не определена. Table of contents ............................................................................................................................. 1 Introduction ..................................................................................................................................... 2 1. Internal & External Factors of the Business Environment ...................................................... 3 1.1. SWOT Analytical Tool for SAMSUNG Electronics ........................................................... 3 1.2. PESTLE Tool used for SAMSUNG Electronics ................................................................. 4 Political Factors .............................................................................................................................. 4 Economic Factors............................................................................................................................ 4 Social Factors .................................................................................................................................. 5 Technological Factors ..................................................................................................................... 5 Legal Factors ................................................................................................................................... 5 Environmental Factors .................................................................................................................... 6 Bibliography ................................................................................................................................... 7 TASK 2 ........................................................................................................................................... 8 2. Strategies ................................................................................................................................. 8 2.1. International Strategy for Samsung Electronics to enter International Markets .................. 8 2.2. Corporate Strategies for Samsung Electronics .................................................................... 8 2.3. BCG Matrix ......................................................................................................................... 9 Bibliography ................................................................................................................................. 12 3. Strategies that can be implemented to Increase sales and Market Growth ........................... 13 3.1. Alternative Strategies that can be used for Market Entry and Market Growth ................. 13 3.2. Samsung’s Focus on the Asian markets and European markets ........................................ 13 3.3. Samsung’s Involvement in Political factors and Legal factors .......................................... 13 3.4. Avoidance of manufacturing faulty products .................................................................... 14 Bibliography ................................................................................................................................. 15 Introduction SAMSUNG Electronics (THE SAMSUNG GROUP, FORBES, 2020) SAMSUNG Electronics was established on January 13th, 1969 by the The SAMSUNG Group which is an organization that was founded in 1938 by Lee Byung-Chul in South Korea, Samsung is known for their Smartphone electronics and IT advancements in their products. SAMSUNG Electronics has the 6th highest brand value as of 2017. Out of the World’s 25 Biggest tech companies, SAMSUNG ELECTRONICS comes in 2nd place under APPLE Inc. (Forbes, 2020) . 1. Internal & External Factors of the Business Environment The Internal and External factors of a business gives an idea of the business environment at the chosen organizations. The internal factors of an organizations indicates the firms Strengths, Weaknesses, Threats and Opportunities otherwise known as SWOT (MICHELLE GRANT, 2020) whereas to understand the External factors of the organization there is an analysis tool that is used to understand the Political, Economic, Social, Technological, Environmental and Legal factors otherwise known as PESTLE that may affect the business. (LORAT, 2009) 1.1. SWOT Analytical Tool for SAMSUNG Electronics In the following table is an assessment of analyzing the factors affecting the Internal factors of SAMSUNG Electronics. STRENGTHS Dominating WEAKNESSES the Smartphone Market with a global share of Has become a stronghold in the Asian Market particularly among 2017. 18.5%. A20 Series and Galaxy Note Series. Bribery Scandal in SAMSUNG that was tainted by the President in Eco-Friendly Innovations ranked 2015. World-wide Research High Dependence of sales of SAMSUNG’S Telecom Companies. and development Centers. Product failures from the Galaxy China and India. 9th out of the TOP 30 Tech and Decline in smartphone sales since Low-end Smartphones. Highly Dependent on the American AWARD-WINNING Brand with Markets where 70.8% 400+ Titles. smartphones are being sold. of its OPPORTUNITIES THREATS Samsung Electronics preparing to launch their new air-conditioning product called ‘Triple Protection 1.2. Increased Competition for Android Smartphones with Xiomi, OPPO, Diversifying to the Asian and Huawei. Introducing Innovative Smartphones. competitor Apple Inc. Proposition’. European markets. Patents issues with their biggest Economic Uncertainties due to the COVID-19 Pandemic. Impending Court Samsung can exploit their 5G allegations for technology to the public. Manipulation. Trials and Stock-price PESTLE Tool used for SAMSUNG Electronics PESTLE analytical tool is used to the understand the External factors that are affecting SAMSUNG Electronics, PESTLE Analytical Tool consists of Political, Economic, Social, Technological, Legal and Environmental factors of Samsung Electronics. Political Factors: Samsung has a high involvement in the Political side of South Korea which has proven to be an issue for the organization. Samsung has supplied billions of Korean WON (KRW) to a South Korean Party called the Uri Party back in 2002(Ji-Young, 2010), which had weakened the company’s brand image among the South Korean citizens. Samsung has also faced Bribery and Embezzlement charges because of Samsung’s heir Jay Y. Lee who was facing a 5-year jail sentence but later discarding the jail sentencing and tainting Samsung’s Image to the Public. Economic Factors: Samsung’s success comes from a large factor because of the South Korean Currency the SouthKorean WON. As more and more South-Korean’s can afford the smartphones with higher employment and higher wages. But back in 2014 Samsung blamed the WON currency’s decline which resulted in Samsung losing 25% of their sales in that particular year. Samsung also relies heavily on their smartphone products as they earn their majority income from smartphones. But faces problems in the market due to competitors like Apple, Huawei, and OPPO which also have a large share in the market for smartphones. SAMSUNG Group is an especially important figure in the South-Korean market as they provide 17.8% of the total revenue earned in South-Korea. Social Factors: One of the main social factors that has been affecting Samsung in the past 5 years is because of their innovative ideas in the smartphone tech industry. Samsung has failed to come up with voice-assisted software’s for their smartphones unlike Google, Apple, and Huawei where Google has Bixby, Apple has Siri and Huawei has Cortana. Unlike Samsung’s competitors Samsung does not have their own software but employs Google’s voice assisted software Bixby into their smartphones. Technological Factors: Samsung’s biggest strength is technology but it also has been of their biggest weakness in the Industry, Since Samsung consistently comes up with newer upgrades for their existing smartphones and manufacturing newer smartphones of the same series this has been a very helpful method for the organization to increase its revenue over the years. But Samsung faced Issues with their technological advancement in their Note 7 smartphones with caused over heating and explosions and Samsung had to recall the smartphones for repair (Lopez, 2017) Legal Factors: Apple has come to Samsung in the late 1990s for their assistance in manufacturing screens for Apple smartphones, This later on became an issue for Samsung as Apple had filed a law suit for 1Billion$ against Samsung stating that they had copied their product and used it on Samsung smartphones. Samsung had tried many ways to get out of the situation but had to pay a fine of 539million$ to Apple. (Vincent, 2015) Environmental Factors: From the various issues with Samsung’s involvement with the political factors and also facing lawsuits from the South-Korean government and foreign Investments from Apple Inc for manufacturing screens for their products and Note7 recalls in the market. Samsung must ensure its loyalty to their employees so that they don’t suffer from the mistakes impacted by the company, As Samsung should ensure that work timings and salaries will always be stable than be different if the organization faces troubling times. Bibliography Business Strategy Hub. (2019). Samsung SWOT Analysis 2019 | SWOT Analysis of Samsung | Business Strategy Hub. [online] Available at: https://bstrategyhub.com/swot-analysis-ofsamsung-2019-samsung-swot-analysis/ [Accessed 2 Oct. 2020]. Djurkovic, M. (2020). SWOT analysis of Serbia’s raspberry sector in the competitive marketplace, master thesis. [online] Research gate. Available at: researchgate.net/publication/317553212_Market_analysis_of_Serbia’s_raspberry_sector_and_cl uster_development_initiatives [Accessed 2 Oct. 2020]. Fine, L.G. (2010). The SWOT analysis : using your strength to overcome weaknesses, using opportunities to overcome threats. S.L.: Kick It. Lopez, M. (n.d.). Samsung Explains Note 7 Battery Explosions, And Turns Crisis Into Opportunity. [online] Forbes. Available at: https://www.forbes.com/sites/maribellopez/2017/01/22/samsung-reveals-cause-of-note-7-issueturns-crisis-into-opportunity/#256898ff24f1 [Accessed 11 Oct. 2020]. Managementstudyguide.com. (2015). PESTLE Analysis of Samsung. [online] Available at: https://www.managementstudyguide.com/pestle-analysis-of-samsung.htm. Prime Essays. (2014). Samsung External and Internal Environment Analysis. [online] Available at: https://primeessays.com/samples/business/samsung-external-and-internal-environment- analysis.html [Accessed 2 Oct. 2020]. Xu, R. and Ulset, S. (2009). Analysis of Samsung Notebook Strategy Case study for Samsung Notebook. [online] Available https://brage.bibsys.no/xmlui/bitstream/handle/11250/168429/Xu%202009.pdf?sequence=1 [Accessed 11 Oct. 2020]. Zhou, Y. (2020). The Samsung story. Nature Electronics, 3(5), pp.234–234. at: TASK 2 2. Strategies Business strategies can be defined as a mixture of choices and actions implemented by the business to achieve their goals and also to secure a competitive advantage and position in the market. 2.1. International Strategy for Samsung Electronics to enter International Markets As Samsung Electronics manufactures their product in South-Korea, they will need to focus their products to reach international markets by exporting their products to various countries. Whereas the country already has a high market share in the United States they should focus their exports on that particular region for an advantage in the Market (Moon et al,2013). Samsung electronics can also expand their manufacturing centers across the world by opening manufacturing centers in China and Brazil which can help the organization to manufacture more and more products to the market and to also export their products to the market easily. 2.2. Corporate Strategies for Samsung Electronics Market Penetration: - Samsung has always followed market penetration whenever it introduces a new product to the market. This because lower prices helps Samsung to achieve more market share in the market and also awareness and brand image for their product (Craft, 2019) Product development: - Samsung Electronics is the market leader in product development in the market unlike their biggest competitor Apple Inc which focuses on a single smartphone model to the public. Samsung Improves their sales by innovating new functions and modifications for their smartphones. This development has helped the company to achieve greater revenues affiliated with their newer products. Diversification: - Since Samsung is conglomerate organization that focuses on new products on newer markets in some instances they have proven to be very successful and now Samsung Electronics have chosen to manufacture a new product for new market which is Air conditioning products. 2.3. BCG Matrix The Boston Consulting Group or BCG matrix helps the organization to understand their strength and weaknesses of their products, their current profitability and their most likely cash flows in the market. (Smart Insights, 2020) Stars: - Products that have a high growth rate and market share in the market. Cash Cows: - Products that have low growth in the market but have high market Share Question Mark: - Products that have high growth but with a low market share. Dogs: - These products have low market growth and market share. TVs QUESTION Tabs MARKS Mobile Phones CASH Samsung AC COWS Refrigerators Washing Machine STARS DOGS Samsung Smart Watch Samsung Printers Stars: - Samsung’s rise to have high growth and market share is mainly because of their Smart phone products, Televisions, and portable tablets. These products have helped the firm to increase their growth enormously in the market by keeping up with their innovations and staying ahead of their competitors in the smart phone, Television, and tablet industry. The Samsung S20 series are on the most famous smart phone series in the market, The QLed TV and the Curved TV are some of the new innovative products that Samsung has introduced to the market. Question Marks: - In recent years, the Samsung smartwatch has had exceptionally low market share and market growth in the market. But data analyzed from 2019 showed that the growth for Samsung smartwatches has increased enormously than previous years nut still has a very low market share as there are many firms that produce smart watches and their market shares are high. Cash Cows: - Some of the main products that has helped Samsung earn more and more money is mainly by Air Conditioning Units, Washing Machines and Refrigerators. These products have helped saved the company on spending money for new Research and development Ideas and innovations for these products as these products already generates income to the firm at its current state in the market. Dogs: - These products seemed to have a high potential in the market in last couple of years but has been in a decline since 2019, the products are Samsung Printers. Although when Samsung printers were launched, they were considered a question mark but now is considered Dogs because of the decline of the market growth and the market share. Samsung printers can be question mark in the future if the COVID-19 Pandemic ends. Bibliography Dutta, S. and Kumar, V. (2009). Mergers and Acquisitions (M&AS) by R&D Intensive Firms. Journal of Risk and Financial Management, 2(1), pp.1–37. Fojcik, T.M. (2014). Verbeke, A., International Business Strategy: Rethinking the Foundations of Global Corporate Success, 2nd Edition, Cambridge University Press, 2013. Management International Review, 55(1), pp.151–156. Forbes. (n.d.). Samsung Electronics. [online] Available at: https://www.forbes.com/companies/samsung-electronics/#66c8920a2450 [Accessed 11 Oct. 2020]. Rapid-business-intelligence-success.com. (2018). A Definition of Business Strategy. [online] Available at: http://www.rapid-business-intelligence-success.com/definition-of-business- strategy.html. Reddy, Y.V. (2010). Global financial crisis and emerging issues for public policy. Macroeconomics and Finance in Emerging Market Economies, 3(1), pp.131–138. ThemeGrill (2018). International Business Strategy EXPLAINED with EXAMPLES | B2U. [online] B2U - Business-to-you.com. Available at: https://www.business-to- you.com/international-business-strategy/. www.statista.com. (2018). Topic: Samsung Electronics. https://www.statista.com/topics/985/samsung-electronics/. [online] Available at: 3. Strategies that can be implemented to Increase sales and Market Growth 3.1. Alternative Strategies that can be used for Market Entry and Market Growth Samsung already has manufacturing facilities in the North American region as well as the South American Region but they come at moderate cost for manufacturing their products whereas SAMSUNG can form alliances with other firms in other areas for lower costs than their previous facilities. Such examples can be China and India where manufacturing costs are low and Samsung’s profit margins can also increase which can keep them ahead of their fellow competitors in the market. 3.2. Samsung’s Focus on the Asian markets and European markets Samsung already has a high market share in the U.S and Some Asian countries, Although most of their market share is located in the U.S Samsung must focus their growth in other markets rather than only the U.S markets. There are many competitors in the Asian Markets and European Markets because of Apple, Huawei and Oppo and Samsung must gain more market share because many copies of Samsung products are being made and this results in loss of sales for the company. Samsung should focus on India, China and England to increase their market share and growth as these countries have an enormous population and potential for more growth. 3.3. Samsung’s Involvement in Political factors and Legal factors Over the years of Samsung’s growth, they have acquired brand image and brand recognition all around the world, but recent years have proved that Samsung’s has problems within its organization for corruption which results in problems for the firm. Samsung must make sure that they follow the rules and regulations and avoid bribery charges that can taint the image of the organization like the previous occasions. Samsung must also make sure to avoid these complications as some countries may tend to ban their products from being sild in their countries and this would hurt the organization enormously. 3.4. Avoidance of manufacturing faulty products Now Samsung is a majority leader in the market growth and market share in the market and they must avoid an incident like the Note 5 recalls that happened years back. These recalls costed Samsung almost 5.3billion$ in sales and lowered their market share and growth. To prevent this catastrophe from happening again Samsung’s must take various steps and precautions for all their products to ensure product quality and safety for the consumers. Bibliography Business Insights - Blog. (2020). A Manager’s Guide to Successful Strategy Implementation | HBS Online. [online] Available at: https://online.hbs.edu/blog/post/strategy-implementation-formanagers. Denning, B.W. (1989). Making strategic planning work in practice. Oxford ; New York: Pergamon Press. Doyle, C. (2013). Samsung Electronics to get aggressive and acquire more global firms - report - Companies | siliconrepublic.com - Ireland’s Technology News Service. [online] Silicon Republic. Available at: http://www.siliconrepublic.com/business/item/34742- [Accessed 11 Oct. 2020]. Higgins, J.M. (1985). Strategy : formulation, implementation, and control. Chicago: Dryden. www.ft.com. (n.d.). Subscribe to read | Financial Times. 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