In order to deal with this threat, there is a need for the company to produce low-cost products. Starting as an analogue-driven product line, the company became a universal leader in technological innovation. Nonetheless, the Korean conglomerate has a significant number of competitors in the global market, including Sony, Huawei, Xiaomi, Oppo; however, Apple is yet considered the biggest rival of the Samsung Company. One of the major ones is the question of language. Human resource management encompasses the support activities section in terms of Porters well-known value chain model. 4). Furthermore, its key competence implies the brand value of Samsung as a superior company, with a valuation of US$ 51.81 million and 7th position at the world level in 2016. 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Samsung Electronics established its fundamental philosophical basis targeted at procurement improvement, fair management, and social trust management for developing a successful supplier partnership strategy and putting it into practice. events or situations can have either a positive or a negative impact on a business. The company also supported the fresh patent technology transfer and environmental integrity. Internal environmental factors. Develop action plans to strengthen competitiveness based on assessment of internal competencies and processes. In 2009 Samsung's market value has reached 1102million dollar, the first time beyond Intel and became the largest semiconductor manufacturers. However, they should try to understand the changes in the external environment and assess the impact of those changes on the target market. It's called supply chain management and includes all onboard activities that bring products to market and satisfied customers. With that said, this strategic analysis provides a detailed study on Samsung Electronics, which is one of the leading multinational corporations in the economics sector. However, The Group has developed a system that mitigates external risks. A positive change was needed to reinvent the companys culture and brand position at that time. For example, initially Samsung focused more on volume and domination on market rather than increasing profitability. After a few years of experience, they extended their activities for the public market by producing TV, screens, micro-waves and so on. According to Jang et al. The internal environment is important for normal cell function. External Factor: Customers. According to Michelle (2010), two of Samsungs threats include legal issues between the company and competitors like Apple and cheap products from Chinese companies. Review THE EXTERNAL ENVIRONMENT (STRATEGIC MANAGEMENT) A host of external factors influence a firm's choice of direction and action, ultimately its organizational structure and internal factors. Sensitive market to these kinds of products are commercial line and offices those has to get technological interface to attain day to day tasks. Moreover, Samsung Corporation aimed for achieving stability in managing its partners by organizing training and seminars for the personnel and future managers. Samsung Electronics focuses in three specific areas; Consumer Electronics, IT & Mobile Communications and Device Solution. By use of the above capabilities, core competencies and resources, Samsung is able to create a strong value chain. Samsung Electronics today announced the 2022 sustainability initiatives that will accelerate the development of eco-conscious home appliances. Lee, J., Lee, K., and Heo, J. Develop a business strategy, Develop a business strategy that will allow Airbnb to meet local, state, and international regulatory requirements and motivate individuals to benefit from participating in this space of the. Plus, that same year, its parent company, Samsung Electronics Co., Ltd announced a $17 billion investment to boost semiconductor production capacity at a new site in Taylor, Texas. The key theme in this article is that Samsung has to understand that though being the first to . It is important to understand that a good harvest is highly required for multiple nurturing steps, including effective planning, risking, and enterprise development. events that occur within an organization. The external environment includes opportunities and threats which can impact on the marketing strategy of Huawei. Having been established in the late 1938s the company has grown to be a global leader in innovation, technological use and product portfolio. Financial support regarding the companys strategic management consists precisely of development fund, co-prosperity fund, and cash payment to ensure suppliers liquidity (Lee et al., 2015, p. 5). Samsung External and Internal Environment Analysis, Live In the internal environment, Samsung can be said to be particularly innovative when it comes to production of electronic products, thus realizing high profits (Sustainability Report 2011). Analysis of internal environment helps in identifying strengths and weaknesses of an organization. It is one of the biggest manufacturers of smart phones and mobile phones. In the 2022 Gartner CEO and Senior Business Executive Survey, we surveyed more than 400 senior business leaders about their 2022-23 priorities. This would reinforce positive consumer perceptions towards the company and its products. Changes today are so frequent and every change brings so many . These products include wearable devices, mobile phones, tablets, lenses, cameras, and computers among others. Within international market research, Knpfle (2016) defines the main reasons for how Samsung adds value to its marketing process. 1. It later joined electronic industry late 1960s. The success of Samsung has been highly attributed to its internal strengths. Your macroenvironment is composed of all the economic . This trend is likely to continue since other companies are also very vigorous in penetrating the market. Munich: GRIN Verlag. Due to technological advancements, the electronics industry has become one of the most competitive industries in the world. Internal: Money and Resources Even in a great economy, lack of money can determine whether your company survives or dies. Since the products are technologically advanced, the company will succeed in showing that it has super products thus increase peoples craving to buy them. Samsung is strong in their. Therefore, if there are drastic changes in the global technology, the changes would directly affect the business, especially manufacturing. Evaluating the external environment, your market, and industry conditions highlight potential opportunities and threats. Verizon kept coming up short when it came to capturing the number one spot of Training Top 125 but in 2012 they finally succeeded in getting that number one spot (Kinicki & Williams, 2013. 103.121.90.216 The analysis is based on the current developments in the market niches in which Samsung operates and is grounded in the specific drivers of its strategy as far as the external pressures on its business are concerned. External businesses that support Samsung present high levels of uncontrollable risk to the company. The company has about 350,000 employees word wide. 2023. In line with the conceptual approach, this is seen as the most serious weakness because it is based on technology, which is a key determinant of profitability and success of the company in the modern era. Experienced, knowledgeable and skilled managers are more able to predict and successfully react to changes in the external environment and crisis situations. Weaknesses. As a result, SECs Chairman, Kun Hee Lee, launched the new management initiative in 1993 to shift the companys emphasis from providing low-end commodities to high-end premium. With these 3 key strengths Samsung hopes that they can make a better world and get a lot of experience for all. According to Lorat (2009), PESTEL analysis is a tool that is used to explore the political, economic, social, technological, environmental and legal factors that may affect the business. In order to deal with competition, Samsung is likely to adopt a system of product promotions over the next few months. The company is using its employees in the decision-making process and they are using the internal and external sources of information for the betterment of the company. The capabilities and core competencies of the company include wide range of products, high brand value, strong infrastructure, competent employees, vibrant management, financial strength, technological innovation, high investment in research and development, impressive salaries and a higher yield among others. Samsung Electronics holds Eco-Council and working-level committees, whereby environmental experts and managers gather to share ideas about technological and regulatory trends for developing highly energy-efficient products. Considering such a critical starting point for this strategy, the Korean multinational corporation effectively handled its management innovation process due to internal innovation and partnership with sub-contractors. This research paper generally seeks to explore the external and internal environments of the company. (2019, p. 12), such a business environment implies increasing velocity of change, which serves as a potential challenge for modern enterprises. However, its most important external environment elements are technology and social or consumer issues. And this is a great example of competitive advantage created through advanced technology that makes the production process extremely cost-effective in response to customer needs. disposable income, gross domestic product and the decline or growth of the economy. Analysis the market of Samsung Company This part used the SWOT method to analysis the market of Samsung Company, concludes its external and internal factors to analyze its strengths, weakness, and opportunities, and threatens (Hill and Westbrook, 1997). Web. Having been started in 1938 as a Korean export business, it has grown to be one of the leading multinationals. 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