Introduction to Business Samsung Company From a small export business created in Daegu, Korea, Samsung has grown and become one of the world’s leader in the electronics industry. The main specialization of Samsung is digital appliances and media, semiconductors, memory and system integration. The market segmentation of Samsung is giving them a firm commercial advantage.
Samsung is segmented according to demographic segmentation, that consists of dividing the market in groups based on different criteria.
The most important criterias used by this company is age, income and occupation. Using this criteria they tend to become a leader in technology market as they offer products for each group of customers. Also they are using psychographic segmentation that is the science used to better understand consumers, according to their lifestyle, personality and the main values they have.
Another process used by this company is Positive market segmentation that consists of studying the rival goods that are demanded in the market and to compare the quality and price, to understand what the customers need and what products could they insert in the market to satisfy the customer and to increase the confidence of customers in the company. This strategy is one of the strengths of the company as they study the activity of Apple Corporation and other rivals.
Using the collected datas they know better what kind of products could they offer to different groups of consumers. The motto of the company is “Inspire the World, Create the Future”, from it we can deduce that the main purpose for them is to satisfy the customers desires and to achieve a high revenue. Another strength that keeps Samsung in the top world’s brands is the fact that Samsung is totally dedicated to give their customers a wealth of opportunities to rich their full potential. The globalization process for Samsung’s technology businesses started in the early 1980s.
So they became a part of The digital age that has brought new changes and opportunities to global business and Samsung has responded with competitive products and constant innovation. This can be proved by studying the worldwide demand for different goods. For example the worldwide demand for mobile phones was staggering 1. 5 billions in 2011, Samsung accounted for 330 million of those units. This proves the strength of the company as a worldwide leader for different goods as notebooks, mobile phones or digital cameras.
Investing directly in activity that spurs economic growth helps Samsung to achieve greater income potential and maintain Samsung brand as one of the most popular in the world. Their position in the market gives them the opportunity to achieve new heights, one of them is their plan of reaching $400 billion in revenue and become one of the world’s top five brands by 2020. Samsung’s Chairman Lee considers that Globalization is the key for future growth, using this idea he created a new strategy to accelerate Samsung’s globalization through developing a pool of global managers as strategic advisors for Samsung Group.
Samsung strategies varies for each trade market. In India their strategy is to be a nationwide distributor and retail presence in the domestic consumer durables market. Also they use different advertising tactics to promote their products, for example Samsung has been associated with the Lakme India Fashion Week for its Mobile Phones. The company used this platform in 2005 to launch a new version of mobile phone the D-500, that became after World’s best mobile phone in the Indiam market.
Another strategy is the strategic alliances between Samsung and other worldwide recognized organisations, for example in 2007, Samsung established a joint venture with Limo for developing a Linux platform, also they Co-developed for handsets and DVB-H standardization solutions with Nokia. Samsung is also investing money in different companies that could help them to provide better technology to consumers, for example investments in shares of US based firm specializing in HDD technology (Integral Peripherals), or investments in operator of telecomunications systems in Chile (Entel).
Other strengths of Samsung are the design, effective advertisement and market communication, an actively coming out with newer models and branding as Samsung is ranked 17th among global companies in 2011. A strong point for Samsung is that consists from various business units, the most important is Electronic Industry the one that brings the most revenue for the group (65% in 2011), Engineering and Heavy Industry and Financial Services.
When Samsung Electronics rushed its first smartphone to market as a response to the debut of the Apple iPhone, some customers burned the product on the streets or hammered in to the bits in public displays of disaffection. Complaints ranged from dropped calls and heavy touchscreen to frequent auto-rebooting and a lack of applications. This is weakness for Samsung that they can not keep up with the innovations from Apple and other rivals, even if they try to show the opposite.
The biggest threat for Samsung is the global patent battle, between them and Apple,as Apple considers that Samsung copied its iPad and iPhone. Another threat is the fact that Samsung created a big variety of phones into the market so that could lead to a decrease in the demand for new goods in future. Samsung has a different market approach as it offers to customers a much bigger diversity of products. As their previous accomplishments, they look further to explore and develop new activities, as health, medicine, biotechnology. References 1.
Kim Youngsoo, 1997, “Technological Capabilities and Samsung Electronics” 2. Bloom Martin, 1992, „Technological Changes in the Korean Electronics Industry“ 3. Yu Sengjae, 1989, „Korean Electronics Enterprises : Growth and Strategies“ 4. Samsung Global Strategy – http://sgsg. samsung. com/Introducing_Samsung_GSG_final. pdf 5. Samsung Business Review -http://www. samsung. com/uk/aboutsamsung/corporateprofile/download/2011_4_Business_Overview. pdf 6. Samsung Financial Highlights – http://www. samsung. com/hk_en/aboutsamsung/corporateprofile/ourperformance/samsungprofile. html