About Samsung Group

Introduction of Samsung Group

In this coursework we assume business-level and corporate-level strategies of the Samsung Group. Competitive environment and most appropriate strategies of the company are also analyzed. Samsung has business and industrial focus. Therefore, thorough selection of strategy for each level as well as proper organizing of the company’s functioning is needed to succeed on the market. This company produces a lot of useful products for everyday life, such as domestic goods (washing machines, refrigerators, TV-sets, and others), computer devices, electronic gadgets, and so on. Samsung’s most significant field of business and production is electronic technologies. According to the official sources of the company, Samsung is the world’s second largest semiconductor manufacturer and leading supplier of electronic memory production. It also utilizes innovative package technology to provide solutions for powering of different computer applications.

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Just a few years ago Samsung was trying to succeed in the market of smartphones, but now it produces and sells more of them than any other company and even exceeds Apple, its most significant competitor in the field of electronic production. Such success could be achieved by appropriate selection of strategies, creative advertisement, and implementation of business plan in due time. Since the new chairman took control of Samsung Electronics in 1987, sales have surged significantly, making it the world’s largest company by revenue. It succeeds not only in selling of electronic gadgets, but also of TVs and washing machines. Samsung is having a moment, showing considerable superiority over Apple Inc. Adoption of proper business and corporate-level strategies will assist the company in its competitive environment and allow it to hold the world’s leading positions on the market. Main business-level strategies of the company are concerned with implementation of new business standards, and corporate-level ones are concerned with proper manufacturing and goods quality improvement.

Main Business Strategies of Samsung Company

The main idea of Samsung Electronics Company is the creation of useful products that will benefit consumer’s daily life and make a positive influence on it. One distinguishes several main business strategies of Samsung Company. Among the most important business-level strategies are design, pricing, advertisement and so on. The company is considering the division of the Liquid Crystal Display business and operation into a separate structure. This strategy should improve the competitiveness of the company. 10% drop of sales prompted the company to make such decision. The division of the main company structures into separate facilities allows establishing of new industry standards and provides the advantage in the amount of producing goods, possibility to create more business structures, and thus increasing of products volumes for market. Samsung Mobile Display is working up organic light-emitting diode display (OLED). This technology is currently used in smartphones and experts suggest that it will replace LCD monitors of larger sizes. The OLED technology is more modern, and it is supposed to ensure bigger annual income. Samsung Electronics is the world’s largest electronic company by revenue, and any increase of its income would be quite a noticeable enforcement. The price strategy also plays a significant role in the success of the company. Prices of Samsung goods are lower than, for instance, of Apple ones. Their quality is constantly being improved. Thus, Samsung provides profitable price/quality proportion that attracts a lot of consumers. In its turn, it increases the volumes of sales, enriching the company’s budget.

It has been mentioned that the advertisement is also an important strategy. Samsung advertises its products efficiently, attracting more and more consumers all over the world. According to the Assignment Of Strategic Managements, in 1997, Samsung started its first corporate advertisement related to the Nobel Prize Series. This advertisement depicted a man holding the Nobel Prize Laureate, wandering through different scenes. While the man moves from one scene to another, company’s products transform into more advanced models. In accordance with Samsung’s sources, this advertisement was aimed at showing that the company applies to Nobel Prize Laureate’s ideas to create its products. In cases when potential consumers in a definite country were not familiar with Samsung products, the company launched corporate advertisements highlighting its technologically superior goods. This approach always prompts potential consumers to pay their attention to Samsung’s products. (Singh et al.). The trademark Samsung gains popularity quite rapidly. Samsung Electronics is the worldwide leader of TV and mobile sales, and yet it is switching from high-volume and low-quality to a high-quality manufacturer. Thus, the company has leading positions on the world electronic market, and any selected strategy should take into account popularity of the company and be aimed at holding these positions. Another strategy of Samsung Electronics concerning its market place is to flood the world market with different products in a short period of time (“Samsung Business Strategy,” 2013). Samsung provides enormous number of gadgets to low and high-end markets and achieves noticeable success, especially on the low-end one. Selling such gadgets as smartphones, mobiles, tablets and so on is the most profitable for the company. The great majority of these devices and domestic products find their consumers all over the world.

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Analyzing sale trends of last several years, it is evident that the latter strategy is probably the most important for the long-term success of the company. Samsung Electronics has been on the market for many years, providing products of not very high quality. In spite of this fact, the products were very popular that ensured economic growth of the company. The income was enough for the company to possess leading positions for a long time, improve strategies and technologies, and compete with the most authoritative companies, such as Apple. Samsung has managed to overcome all its competitors and go further than anyone else without evident threat of losing its leading positions in the foreseeable future, especially when quality of the product is constantly being improved. Its experience even allows having the Apple Company on the back foot. Samsung has bigger revenue, more efficient advertisement, and more popularity among consumers than Apple has. All this success and ability to be the long-term trade mark was achieved mostly by means of the company’s strategy. Today, the combination of flooding markets with useful gadgets in the shortest possible period of time, constant improvement of electronic and domestic products, developing and adoption of new technologies, holding correct price policy, and effective advertisement is the most efficient business-level strategy. It is the right choice for the long-term success of Samsung on the international market.

Corporative-Level Strategies

The main tool of the Samsung corporate strategies that mostly assures growth of the company’s annual income is electronic production. The most essential corporate-level strategies of Samsung Electronics are concerned with financial and technical performance.

Probably the most important corporative-level strategy lies in following all modern technological trends. The company is better than any others at learning from its competitors. Its representatives observe actions of their competitors and preferences of consumers. They define what is gaining traction, and the company provides its own version of the possible innovation in short terms. As the practice shows, these new products gain the popularity rapidly and find consumers successfully. Samsung is the world largest chipmaker, and it produces a lot of different chips and quality electronic components that can be inserted into smartphones. It assures advantage in cost and terms of production. Because of low cost of electronic elements and big amount of their production Samsung can produce and sell a great number of its devices in a comparatively short period of time. Thus, the income is constantly increasing as well as popularity of the company.

The biggest meaning has the fact that Samsung relies mostly on its own internal budget and not on external partners, as Apple. It is easy for Samsung to observe its producing facilities and volume of goods they produce because they are geographically collocated, whereas its competitor’s facilities are spread worldwide. The most efficient corporate level strategies, as well as business level ones, include a combination of several approaches. According to the Assignment of Strategic Management, design and advertisement strategies make a noticeable contribution into success of the company. Design strategy helps the company to determine what to develop, how to innovate contextually, technologies of which fields should be improved in the first turn both immediately and over the long term. This determination involves interaction between business and corporate-level strategies, strategic planning to provide context for design, systematical assessment of current works, developing different variations of design and quality improvement and so on. Thus, the company is constantly modernizing the great majority of goods it produces.

Appropriate organization of guaranty also contributes to the company’s success. Samsung deserves consumer’s trust not only for constant improving of goods quality, but also for guaranty services. In case, some technical problems with new products arise, a consumer receives a high-quality service, gets his device repaired or even gets the new one.

As can be seen, the most important corporate-level strategy lies in improvement of electronic technologies and industry standards, as well as production facilities, observation of modern technological trends, effective advertising, and immediate creating of the great amount of modern devices. Samsung also succeeds by diversifying some business facilities into several separate structures. It is probably the most appropriate strategy for the long-term business.

Competitive Environment

Samsung’s most noticeable competitors are Panasonic Corporation, Sony Corporation, SK Hynix Inc., LG, and Apple Inc. According to the fact that electronic production is the main field of the company’s industry, Apple is the most significant competitor for Samsung. These companies compete with each other quite toughly. They had common legal proceeding. Samsung has lost the high profile case to Apple for imitating its design. For Samsung, however, it was not a too big price to pay.

We mentioned that Apple relies more on external partners. Therefore, it is more complicated for this company to control the functioning of all its producing facilities and delivery of goods to markets. Samsung, on the other hand, uses its internal budget as the main source of financing. This way of functioning is much more reliable because the company depends only upon itself. In addition to it, because of low labor cost in China, SMIC (Semiconductor Manufacturing International Corporation) often outperforms the working plan, and that makes a noticeable contribution in the company’s budget. Samsung also seems to have fairer strategy towards consumers. Brand Apple constitutes a noticeable part of price of its production. It means, when one buys some Apple device, he/she overpays much money just for the brand “Apple”. Purchasing of a Samsung product means payment only for the product itself and its quality.


In conclusion, concerning corporate level, as it has already been mentioned, all Samsung industrial structures are geographically collocated. Thus, it is much more convenient to oversee production, quality improvement, and distribution of goods from fabrication facilities to different markets. Apple’s industrial facilities are spread around the world. Taking into consideration all abovementioned, Samsung is likely to be more successful than its most significant competitor on the long-term fast-cycling market. Apple seems to be more successful than Samsung in the slow-cycling market because of the high price of its products and considerable popularity, especially in the USA and some countries of Europe.

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