A CASE STUDY ON

SUMSUNG ELECTRONICS

Background of the study

All businesses are affected in some way by their competitors, and this may have an

impact on the decisions that businesses make.

In this case study, we found out that Samsung Electronics have been facing these

following problems:

 How might Samsung Electronics position itself in the marketplace without having a

heavy reliance on competing with its hardware?

 What is the best way to launch a new product?

 What is the best way to overcome Economic Crisis and huge Debt?

 How to Develop a better and good quality of electronic products?

On the other hand, we also found out these following challenges faced by the

Issues and concerns

 The presence of Cannibalization

 It has been difficult for the company to make people trust.

 Selling problems and phone difficulties

 Increasing the number of competitors

 Getting a lot of bad comments

 Continuing Legal problems.

Point of view

Very high Research and development (R&D) expenditure resulting in one of the strongest

patent portfolios among technology companies.

 Samsung’s Investment In R&D was the largest among technology companies.

 Samsung Electronics is one of the world’s second- largest technology company that

produces electronic devices.

 Produces equipment that includes telecommunications, electronics, home

appliances and semiconductors..

 Samsung Electronics Dominated the smartphone markets by providing Equipment

that has a good quality.

 Samsung Electronics positioned as a pioneer for innovation is backed with

credibility. Samsung has been awarded the CES (Consumer Electronics Show)

owing to its product designs and innovation.

 Samsung enhances its brand reputation for environmentally friendly innovations, it

has saved approximately 270 million metric tons CO2 emissions worldwide since

2009 for it’s product efficiency.

 Retained a stronghold in the Asian Markets.

 The largest and cheapest chip seller in the Global market in 2021.
  A very diversified portfolio that operates 4 divisions: Consumer electronics,

information technology and mobile communications , Device solutions, and

Harman.

 A strong global presence including Korea, America, Europe, Asia and Africa, and

as well as China.

 Samsung electronics products are in such a competitive ground and have gained a

competitive position in their innovative skills.

 Excellence in engineering by producing hardware parts and consumer electronics.

 Samsung electronics continuously produces and expands the value of new

services. . High management capacity to manage large orchestrator firms in the

sector.

 Samsung is a very well known international brand due to it’s early market share

and enormous profit margins.

Statement of the Problem

 Too many smartphone models which lead to lower economies of scale and increase

costs.

 . Heavily dependent on American markets, it is estimated that Samsung and Apple

combined sold at least 74% of smartphones in the American market and Samsung

has diversified its resources by expanding its operation in Asia but still depending

on the American markets.

  Due to price sensitivity Samsung has declined in smartphone sales since 2017.

 Samsung Electronics has developed and delivered several faulty products to the

market from the exploding Samsung Galaxy A20e to faulty foldable phones.

 Shortage and longer delivery have impacted the high-end smartphones that leads to

Samsung’s decline in sales.

 Due to lack of ideas, Samsung has been dodged by several scandalous issues.

 Samsung Electronics' reputation was tainted by the revelation that the president of

the company bribed the government of South Korea to facilitate a merger and it

leads to a bad reputation of the company.

 Lack of Market control skill, because Samsung cannot control the price on the

manor components.

 Competition in the industry with electronic products becomes more fierce and

rigorous

 Samsung focuses more on the mass market instead of niche markets.

 Samsung has a lack of proprietary operating systems.

Areas of consideration

Samsung electronics products are in such a competitive ground and have gained a

competitive position in their innovative skills. Where in Excellence in engineering by

producing hardware parts and consumer electronics.

 Thus, Samsung electronics continuously produces and expands the value of new

services. . High management capacity to manage large orchestrator firms in the sector. And

Samsung is a very well-known international brand due to its early market share and

enormous profit margins.

Objectives of the Study

The key benefit of the revised approach would be better communication and supply chain

management and introduce a separate low-end smartphone brand to counter the expansion of Xiaomi,

Huawei, and Lenovo smartphones.

Alternative Courses of Action

Samsung’s strategic pillar is for global inspiration, to improve the lives of the consumers

and in the future generation and for social prosperity. Samsung changed from a low-cost original

equipment manufacturer to a world leader in research and development, marketing strategy and

design. Samsung should apply the cost Leadership strategy in operation. In order to survive in

the Global market, to develop new innovative Products, to Raise Revenue and to increase sales.

Samsung should apply the cost Leadership strategy. Samsung needs to produce products that are

cheaper than the ones that are offered by the Competitors, not just cheap products but also a

good quality of products. If Samsung adopts this kind of strategy it will cost lower than its

competitors, So as a result it will succeed. To have

 can sell more units

  .It can sell at lower prices

 It can attract sensitive customers

Develop customers trust. Despite the issues arising from Samsung electronics, They still

provide a good quality of technologies. But in order to gain the trust of the audiences in the

market. Samsung should provide shared testimonials of How they achieve their success and as

well as, sharing those bad decisions that they make.

Because of this strategy, If customers can relate to the said testimonials it builds

confidence in your organization. As a result, by gaining the trust of the customers it help the

company to increase customers loyalty and Retained more customers and Lastly, it enabled to

boost sales.

Samsung should engage on product development strategy in operation. Several users of

Samsung have reported the following problems such as random rebooting, high battery drainage

problem and the worst is, Overheating problems that lead to blowing up phones.

So by engaging in product development strategy, Samsung should develop Electronic

devices that provide good quality devices and safe electronic devices or equipment.

Recommendation

Samsung is one of the leading brands in the global market. It offers a lot of different

equipment and services. Samsung is the main brand for mobile phones with its high- end

specifications. The users are average consumers and companies. The main competitor is Apple;

however Samsung gives competitive attention through mobile features. Many customers are
loyal to Samsung mobile phones and will continue to develop a relationship with the brand.

Lastly, the customer decision to buy a Samsung mobile phone is based on the phones enticing

features making it a powerful motivator.

Samsung should focus on expansion. Hence, they should go for acquisition, and it will

help them gain an advantage not only in those markets where they already exist but also in those

markets where they have not yet made a mark. With Samsung’s innovative electronic products,

the brand needs to follow a creative means of the advertisement. It helps to encourage

retaining customer’s retention. And also it helps to attract new customers.

Moreover, before delivering any product, the company needs to have a quality checking to avoid

the delivery of damaged products. It assures and holds the consumer's confidence over the brand

Plan of action

Samsung’s strategic pillar is for global inspiration, to improve the lives of the consumers and

in the future generation and for social prosperity. Samsung changed from a low-cost original

equipment manufacturer to a world leader in research and development, marketing strategy and

design.

Samsung chose to invest heavily in technical innovation and R&D. In order to have a

competitive advantage driven by innovation, Samsung had to become a pioneer in developing

new technology.

With the provided challenges and problems, these are the alternative solutions:

OPTION 1: Samsung should apply the cost Leadership strategy.

OPTION 2: Develop customers trust

OPTION 3: Samsung should engage on product development strategy