Strategic Management Practices of Samsung-Free-Samples for Students

Question: Using an organisation that has been in the news in the past two years, apply and critically evaluate how each of the following theoretical concepts influences strategic management practices in that organisation. Provide recommendations that would enhance strategic management in your chosen organisation. Answer: Introduction The report is based on the organization that has been in the news in the past two years. The organization selected for the critical evaluation is Samsung. The evaluation is done on the basis of the theoretical concepts that influence strategic management practices in the company. The company is a South Korean Multinational company having headquarters in Samsung Town, Seoul. The company has been in the limelight for past two years because of some of the incidence and due to new products introduced by the company. Samsung deals in the products like Apparel, Chemicals, electronic components, telecommunications equipment, DRAM, Ships, home appliances, medical equipments, and consumer electronics Industry Attractiveness The industry attractiveness is the future profit potential of a market. The industry attractiveness can be evaluated with the use of Porter's five forces framework as this framework shows the competitive advantage and competitive strategy of the company. Porters Five Forces Bargaining power of the buyers- High The Bargaining power of the buyers is high for the company as the customers can easily switch to the other products which include various companies like HTC, Nokia, Apple, Blackberry and many others. The customers can switch due to the presence of the competitors in the market and this is the reason to face the competition Samsung introduce new products (Rothaermel, 2015). Bargaining power of Suppliers- Medium The company is having the relationship with numerous suppliers that provide the general parts and components to the company. The company is having approximately 579 suppliers and the companys supply chain includes over 2,700 suppliers in other industries. For instance; Google exercises a huge bargaining power being an Android platform supplier. The company is having the lack of the alternative platforms that can be explored by Samsung. The company is having the strategies to corporate with the suppliers; approximately 72.7% of its total economic value was shared surrounded by a supplier in 2014 (Dudovkiy, 2017). Threat of Substitutes- High The threat of the substitute is increasing due to the use of the different gadgets at the place of the mobile by the consumer and this is the reason the company is diversifying its products. Furthermore, the company is enhancing the range of the mobile and desktop application related to the business of the mobile communication. Rivalry- Medium Samsung is facing the competition from the many companies who belong to the different industry. To face the competition the company invests the amount in the Research and development programs that help the company to achieve the objective of becoming the leader in the field of electronics. The brand is the global brand that performs the ethical obligations to achieve the maximum of the profit (Han, and Oh, 2013). Threat of new entrants- Low The threat of the new entrants is low in the market as to enter into the industry of consumer electronics and the telecommunication; there is need of the huge capital investment to open the business. Samsung has the strong relationship and has numerous distribution channels. If in case any new company came into the existence then that company will not be able to form that connection or channels so they have to face losses which leads to the closure of the business. so whose soever company enter the market have to make a huge investment and have to form strategies which are hardly possible. Internal analysis Resources The resources of the company include the tangible, intangible resources and human resources. The tangible resources are the resources that can directly be measured in terms of the monetary or financial resources. For instance; the company achieved sales of the $ 117.8 billion in the year 2009 has surpassed HP and therein the company became the company who earned the largest revenue across the world and the company is second largest chip factory globally. The intangible resource includes the wide range of content, patents, trademark and the image of the company. The company has registered approximately 8782 patents in the US, 3611 for Samsung electronics. The achieved the highest profit in the last 2 years and this was possible due to Galaxy S7 (The Telegraph, 2016), though this is also a fact that due to the blast of the phones the company found the loss in the revenue and in the reputation of the company (Brondoni, 2015). At that point of the time, it was difficult for the company to gain the trust of the customers and the potential customer so the company provided the option of the refund while submitting the headset to the company. Though the damage was done the company was taking precautions. Gradually the company gains the trust and now the company is having the well-known reputation or goodwill in the market as the company is able to serve its services across the world. Human resources refer to the employees who work for the company, the company believes in hiring the skilled and trained employees along with this the employees who have the experienced in the field are welcomed by Samsung with the open arms. While recruiting and selecting the employee's company to make sure that the employees have skills and capabilities that are required to the company. Capabilities The company has the capabilities as this the reason company is able to manage the interaction among the firm capabilities and the international networks. The company formed the linkages with the foreign countries and companys through which technology and promote their products. However, the capabilities of the company in the mass production of the products are inadequate which sometimes leads to the problems for the company. For instance, the blast of the mobile phone-Samsung Galaxy Note 7, there was lack of the capabilities of the company which created the impact on the customers and this raised a question mark on the company (Pisano, 2015). Core competencies The major core competencies of the company include technology leadership, creative people, customer value creation, and innovation. By the year 2014, the company achieved the success and became the leading smartphone manufacturer having the 30% of the market share. The success of the company in the field of the technology is the core competencies of the company. Though the company is achieving the success with the use of the technology this time there were some faults (Lee, 2014). Competitive advantage The competitive advantage refers to as the advantage over its competitors in a favorable or superior position. The company is having some of the competitive advantages such as the design of the products offered by the company are orientalized. The quality of the products has good value, strong technologies, brand recognition and the constantly introducing new products such as Samsung Galaxy S7. The company makes use of the technology along with the innovation in their products that becomes the technical advantage of the company (Lee, Paek, and Jung, 2016). Overall the competitive advantage of the company is the reduced cost and formation of cost performance advantage from manufacturing a large number of IC devices. The competitive advantage of the company is not only the way of performing the activities but also the way to ring the innovation in the products (Petersen, S.I., Kim, and MOZOTA, 2015). Recommendation The company is going well and a company is trying to regain the same position in the market due to some of the incidence which took place over past 2 years. The company should launch a new product with the comparatively low price and with the unique and all features, this will help the company in garbing the attention of the customers towards the product. If the customer gets satisfied with the products they are surely going to buy the product again and this helps the company in improving the customer trust on the brand. it is recommended to the company, the profit earned by the company in the year 2016 due to S7, the amount should be invested by the company in testing and technology so that they can don't make the mistake again. Conclusion The report throws light on the evaluation of the Samsung Company on the basis of the theoretical concept, Samsung is selected because the company was in news over past 2 years. The analysis includes the industry attractiveness which is considering the porter five forces. Furthermore, there is an internal analysis which includes resources, capabilities and core competitiveness of the company. The competitive advantage is shown in the report which shows what make the company different and unique form the other companies. References Dudovkiy, J., 2017, Samsung Porters Five Forces Analysis, viewed on 16th December 2017, https://research-methodology.net/samsung-porters-five-forces-analysis/ Lee, F.Y., 2014. Competitive Advantages of Smartphone Industry in 4G Era-A case study of SAMSUNG and SONY. Lee, H., Paek, B. and Jung, J., 2016, June. Research on the dynamic capabilities of leading firms: The case of Samsung's digital TV business. InISPIM Innovation Symposium(p. 1). The International Society for Professional Innovation Management (ISPIM). Petersen, S.I., Kim, J. and MOZOTA, B.B.D., 2015. Managing Design driven innovation through the use of design scorecards. In 11th Conference of the European Academy of Design, April. Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.Khan, U.A., Alam, M.N. and Alam, S., 2015. A Critical Analysis of Internal and External Environment of Apple Inc. International Journal of Economics, Commerce and Management, 3(6), pp.955-961.Han, I.S. and Oh, K.Y., 2013. The Mixture of Fortune and Sweats: The Success of Korean LCD Industry in East Asia. Asian Social Science, 10(2), p.126. Pisano, G.P., 2015. A normative theory of dynamic capabilities: connecting strategy, know-how, and competition.Brondoni, S.M., 2015. Global Networks, Outside-In Capabilities and Smart Innovation. Symphonya, (1), p.6.