FACULTY OF BUSINESS AND MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONS)

OPERATIONS MANAGEMENT

MGT 657
STRATEGIC MANAGEMENT

SAMSUNG ELECTRONICS
COMPANY REVIEW AND STRATEGIC PLAN

GROUP MEMBERS:
NORHUDA BINTI ABU (2021614392)
NUR SYAHIDAH BINTI MOHD SHUKOR (2021659164)
SHARIFAH AISHAH BINTI SYED OTHMAN (2021657466)
ZULAIKA JASMIN BINTI ZULKIFLI (2021298356)

CLASS: NBO7B
LECTURER: DR. MALIZA DELIMA BINTI KAMARUL ZAMAN
DATE OF SUBMISSION:

1
 TABLE OF
CONTENTS
EXECUTIVE SUMMARY 3. COMPANY’S STRATEGIC PLAN
ACKNOWLEDGEMENTS 3.1 Strategy Formulation (Stage 2)
3.1.1 SWOT Matrix
TABLE OF CONTENTS 3.1.2 BCG Matrix
3.2 Strategy Formulation (Stage 3)
LIST OF FIGURES 3.2.1 QSPM
3.3 Conclusion
LIST OF TABLES
4. STRATEGIC IMPLEMENTATION
1. BACKGROUND OF THE COMPANY 4.1 Strategy 1
1.1 History of The Company 4.2 Strategy 2
1.2 Vision 4.3 Strategy 3
1.3 Mission 4.4 Conclusion
1.4 Organizational Cultures / Values
1.5 Goals and Objectives 5. CONCLUSION AND RECOMMENDATION
1.6 Logo 5.1
1.7 Board of Directors 5.2

2. COMPANY REVIEW REFERENCES

2.1 SWOT Analysis
2.1.1 Strengths APPENDICES
2.1.2 Weaknesses
2.1.3 Opportunities
2.1.4 Threats
2.2 Strategy Formulation Framework
2.2.1 IFE
2.2.2 EFE
2.2.3 CPM
2.3 Achievements
2.4 Problems
2.5 Conclusion

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7
 1.BACKGROUND
OF THE COMPANY
1.1 HISTORY OF THE COMPANY

1.1.1 Founder of The Company

Lee Byung-chul (1910–1987) was a successful South Korean businessman
and the founder of Samsung Group, a globally renowned conglomerate.
His significant contributions were instrumental in shaping South Korea's
economic landscape, propelling Samsung's evolution from a small trading
company into an international giant corporation with varied business
ventures.

Figure 1.1: Lee Byung-chul, founder of Samsung Group

1.1.2 The History of Samsung

The South Korean business known as Samsung is among the top manufacturers of electronic
gadgets on a global scale. Digital media devices, memory chips, appliances, semiconductors, and
integrated systems are just a few of the many consumer and business electronics that Samsung
manufactures. A significant portion of South Korea's exports originate from this company, which
has grown into a household brand in the IT industry.

EARLY YEAR
Samsung was established as a food business establishment on March 1, 1938, by Lee Byung-Chull.
He established his enterprise in Taegu, Korea, engaging in the commerce of noodles and other
locally manufactured products. These items were then sent to China and its many regions. The firm
name, Samsung, originated from the Korean term meaning "three stars." Following the conclusion
of the Korean War, Lee diversified his business operations by venturing into the textile industry
and establishing the most extensive woolen factory in Korea. He prioritized industrialization
extensively, aiming to facilitate the post-war redevelopment of his nation.

8
Samsung established many departments devoted to electronics in the 1960s, marking its entry into
the electronics industry such as Samsung Electronics Devices, Samsung Electro-Mechanics,
Samsung Corning Samsung Semiconductor & Telecommunication. During this time, Samsung set
up Joong-Ang Development, which is now called Samsung Everland, and bought DongBang Life
Insurance. Also, a cooperation between Samsung and Sanyo was formed, which allowed for the
manufacturing of various consumer goods such as televisions, microwaves, and more.

1960-1980
1970 - Samsung-Sanyo began manufacturing its first black-and-white televisions . At the same
time, the company extended its operations into shipbuilding, petrochemicals, and aviation engines.
Samsung also manufactured transistor black and white televisions, color televisions, refrigerators,
electric desk calculators, and air conditioners during the course of the next decade.

1974 - Samsung Heavy Industries had established itself as one of the leading shipbuilders globally.

1978 - The firm attained the significant milestone of having manufactured 5 million televisions.

1980 to 2000

Samsung established many departments devoted to electronics in the 1960s, marking its entry into
the electronics industry such as Samsung Electronics Devices, Samsung Electro-Mechanics, Samsung
Corning Samsung Semiconductor & Telecommunication.

During this time, Samsung set up Joong-Ang Development, which is now called Samsung Everland,
and bought DongBang Life Insurance. Also, a cooperation between Samsung and Sanyo was
formed, which allowed for the manufacturing of various consumer goods such as televisions,
microwaves, and more.

1987- Lee Kun-hee, son of founder Lee Byung-chul, took over leadership of Samsung after his
father's death. The merger between Samsung Electronics and Samsung Semiconductor and
Telecommunications followed shortly thereafter. Products in the areas of home appliances,
telecoms, and semiconductors were the primary emphasis of the combined company.

9
2000 to Present
2001 - Samsung launched its first phone, the SPH-1300, a touch-screen prototype .
2005 - It also created the first speech-recognition phone.

At the tail end of the 2000s and the beginning of the 2010s, Samsung made acquisitions of firms
that were developing technology for electronic devices.

The Galaxy S II was produced by Samsung in 2011, while the Galaxy S III, which is now one of the
most popular smartphones in the world, was released by the company in 2012. The year 2012 was
particularly significant for Samsung since it was the year that the company became the biggest
mobile phone manufacturer in the world and acquired mSpot to give entertainment to users of
Samsung devices.

Samsung established many departments devoted to electronics in the 1960s, marking its entry into
the electronics industry such as Samsung Electronics Devices, Samsung Electro-Mechanics, Samsung
Corning Samsung Semiconductor & Telecommunication.

During this time, Samsung set up Joong-Ang Development, which is now called Samsung Everland,
and bought DongBang Life Insurance. Also, a cooperation between Samsung and Sanyo was
formed, which allowed for the manufacturing of various consumer goods such as televisions,
microwaves, and more.

1.2 VISION 1.3 MISSION

Inspire the world with our
To devote its talent and technology to
innovative technologies, products
creating superior products and
and design that enrich people’s lives
services that contribute to a better
and contribute to social prosperity
global society.
by creating a new future.

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 1.4 ORGANISATIONAL CULTURE/ VALUES
Samsung has a corporate culture that values innovation.A key component of Samsung’s culture is an
organizational architecture that places an emphasis on workers' capacity to innovate the company's
technological goods, including laptops and cellphones. the cultural traits of the company back with
Samsung's stated goals, which center on creating world-class goods that make people's lives better.

The company's long-term strategic goals for being a leading corporation in the global
semiconductor, consumer electronics, and allied technology sectors are therefore reflected in its
corporate culture.

Here are some key aspects of Samsung's corporate culture that originate from the
enterprise's basic values:

1. Development of opportunities for all employees 2.0 Passion for Excellence

In addition to formal training, the According to this cultural trait,

corporation fosters an environment
where workers are encouraged to
help one another in reaching their
career objectives within the
technology business unit.
Samsung is able to put its general
competitive strategy and intense
growth plans into action, which aim to
develop the business organization via
new consumer electronics and
semiconductors.

3. Constant Change 4. Ethical Foundation for Integrity

Samsung upholds ethical standards

The company culture prioritizes
and fosters a corporate culture that
innovation, acknowledging the need
emphasizes justice, respect, and
of change in technological
openness. These business ethics
advancements.
trends are evident in the worldwide
market.

5. Emphasis on Prosperity for All

The company's organizational culture fosters

employee engagement in corporate citizenship
initiatives, which provide career prospects for
individuals and address community issues using
technological means.

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 1.5 LOGO

This company use “Samsung” in their logo. The lettermark's present design was refined in 2005 to
increase visibility, taking into account how the human eye receives visual information. Our
lettermark's spacing and height were meticulously crafted to produce visual harmony via equal
letter distribution. Our meticulous visual balance and typographic tweaks demonstrate the
company’s commitment to quality and human-driven experiences.

Clear space
It is imperative that the area around the
lettermark be shielded from any and all other
elements at all times.

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 1.6 BOARD OF DIRECTORS
Executive Directors

Jong-Hee Han Kye-Hyun Kyung

Vice Chairman & CEO(DX) President & CEO (DS)

Tae-Moon Roh Hark-Kyu Park

President & President & Jung-Bae Lee
Head of Mobile eXperience) Head of Corporate Management President & Head of Memory
Office (DX))

Independent directors

Han-Jo Kim Jeong Kim

Sun-Uk Kim Jun-Sung Kim
Chairman of the Board & Independent Director
Independent Directorr Independent Director
Independent Director

Eun-Nyeong Heo Myung-Hee Yoo

Independent Director Independent Director

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2.COMPANY REVIEW
2.1 SWOT ANALYSIS

Fierce competition
Brand recognition Dependence on the smartphone
Skilled and efficient workforce market
Diversification Little presence in the software and
Economies of scale services industry
Vertical integration Quality control issues
Distribution network Legal battles and patent
Innovation and a strong R&D infringement
Limited software differences
Vulnerability of its supply chain

Acquisitions and mergers

Increasing competition
Diversification and expansion
Controversy
TPP launching
Product counterfeit
Launching innovative products
Dissatisfied users
HR Management
Next-generation smartphone gaming
The 5G technology

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2.COMPANY REVIEW

2.1 SWOT ANALYSIS

S
Brand recognition Vertical integration
High global smartphone market share Global operations
Large memory chip manufacturing Skilled workforce
Diverse product portfolio Marketing investment
R&D investment and innovation Sustainability initiatives

Lack of comprehensive platform
Highly diverse product portfolio
Focus on high-end products
Past incidents and quality concerns
Limited software ecosystem
W
Competition in semiconductor market
Reliance on the US market
Limited presence in China
Challenges in OLED segment
Corporate management and leadership

O
Foldable smartphone market
Integration of AI technologies
Capitalize on 5G-enabled IoT
Health and wellness devices
Entry into cloud gaming and
VR/AR
Meeting eco-friendly demands
Growth potential in developing regions
Own software ecosystem and premium
Services
Strategic partnerships and acquisitions
Promoting sustainability practices

Competition from emerging brands
Market-specific laws and regulations
Over-reliance on Android OS
Trade disputes and political instability
Dynamic market and changing loyalty
T
Economic factors in key markets
Cybersecurity concerns
Growing reputation of Apple
Lawsuits and patent infringement
Counterfeiting

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 2.1.1 Strengths
(1) Brand Recognition
Samsung's 5th position on Forbes' 2023 World's Most Valuable Brands
reflects the strong recognition and reputation it holds globally. This
ranking indicates that Samsung has successfully built a brand that is
highly valued in terms of perception and financial worth.

(2) Global Smartphone Market Share

Holding the largest global smartphone market share at 21.8% in 2023
signifies Samsung's dominance in the competitive smartphone industry.
This strength indicates a broad consumer base and the popularity of
Samsung smartphones worldwide.

(3)Large Memory Chip Manufacturing

As the world's second-largest memory chip manufacturer generating
over $50 billion in semiconductor revenue, Samsung demonstrates
technological prowess and market leadership in a critical industry.
This strength contributes significantly to the company's overall
revenue and technological advancements.

(4) Diverse Product Portfolio

Offering a wide range of electronics, including TVs, home
appliances, wearables, and tablets, showcases Samsung's ability to
cater to various consumer needs. This diversity contributes to a
broad revenue base and reduces dependency on a specific product
category.

(5) R&D Investment

Heavy investment in Research and Development, with an annual spending
of over $30 billion, signifies Samsung's commitment to innovation. This
allows the company to stay at the forefront of technological advancements
and continually introduce new products and features.

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 (6) Vertical Integration
Controlling most of its manufacturing processes, from chip production to
device assembly, gives Samsung a competitive edge in terms of cost
efficiency, quality control, and flexibility in adapting to market demands.

(7) Global Operations

Operating over 200 factories and research centers in over 50 countries
highlights Samsung's global presence. This strength provides the
company with a strategic advantage in terms of proximity to key
markets, efficient supply chain management, and adaptation to local
preferences.

(8) Skilled Workforce

Employing over 300,000 skilled employees worldwide, with a strong
focus on engineering and technology, showcases Samsung's
commitment to human capital. A highly skilled workforce is crucial
for sustaining innovation and maintaining a competitive edge.

(9) Marketing Investment

Spending billions on marketing and advertising campaigns
contributes to creating a strong brand image. This strength
enhances brand visibility, consumer trust, and loyalty.

(10) Sustainability Initiatives

Committing to sustainability by investing in renewable energy
and eco-friendly manufacturing practices aligns with evolving
consumer expectations and regulatory trends. This strength
demonstrates corporate responsibility and appeals to
environmentally conscious consumers.

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2.1.2 Weaknesses
1

Lack of Comprehensive Platform

Samsung lacks a unified platform like Apple's iOS.
This limitation affects the company's control over
software and user experience across its devices,
potentially leading to fragmentation and
inconsistency in the user interface. 2
Highly Diverse Product Portfolio
The highly diverse product portfolio makes it
challenging for Samsung to create a clear and
distinct brand positioning. Consumers may
perceive the brand differently across various
3 product categories, impacting overall brand
identity.
Focus on High-End Products
The focus on high-end Galaxy S and Z
series resulted in a sales decline during
economic instability. This indicates 4
vulnerability to market conditions,
Past Incidents and Quality Concerns
especially when targeting premium
Incidents like the exploding Note 7 batteries in
segments that may be more sensitive to
2016 damaged Samsung's brand image and raised
economic downturns.
concerns about quality control. Such events can
have a lasting impact on consumer trust and brand
reputation.
5

Limited Software Ecosystem

he Tizen mobile OS used in smartwatches and TVs
struggles to compete with dominant platforms like
Android and iOS. This limitation hinders the
growth of Samsung's ecosystem and integration
across its product lineup.

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 6

Competition in Semiconductor Market

Rivals like TSMC and SK Hynix pose serious
challenges in the memory chip market, putting
pressure on Samsung's margins. Intense
competition in this key segment affects
profitability and market share.
7

Reliance on the US Market

8
Limited Presence in China
Samsung's minimal share (approximately
1%) in the Chinese market indicates a
struggle to establish a substantial
presence. This limitation reduces potential
market expansion in one of the world's
largest consumer markets.
10
A significant reliance on the US market exposes
Samsung to risks associated with regional
economic fluctuations. Diversifying the market
presence is crucial to mitigate vulnerability to
changes in the US market.
9
Challenges in OLED Segment
Despite holding a 90% market share in the OLED
segment, a 24.16% decrease in operating profit for
Display panels signals challenges in this business
segment. Adapting to market dynamics and
technological shifts is crucial for sustained success.

Corporate Management and Leadership

Samsung's corporate management and leadership
being entirely Korean may limit diversity and
perspectives within the organization. Diverse
perspectives are valuable for innovation and
understanding varied global markets.

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2.1.3 Opportunities

1 Foldable Smartphone Market

The projected growth of the foldable smartphone market to $26.7 billion by 2024
presents a significant opportunity for Samsung. As a current leader in this
technology, Samsung can leverage its expertise to capture a substantial share of
this emerging market.

2 Integration of AI Technologies
The integration of AI technologies like Bixby across smart appliances, connected
homes, and healthcare opens avenues for new revenue streams. Samsung can
create a seamless ecosystem that enhances user experience and meets evolving
consumer needs.

3 Capitalize on 5G-enabled IoT

Samsung's strong presence in chips and devices positions the company to
capitalize on the growing demand for 5G-enabled IoT devices and connectivity
solutions. This includes a wide range of applications from smart home devices to
industrial IoT.

4 Health and Wellness Devices

With the increasing focus on health and wellness, Samsung can explore
opportunities in smartwatches, fitness trackers, and healthcare monitoring
devices. The company can develop innovative products that align with consumer
preferences for health-related technologies.

5 Entry into Cloud Gaming and VR/AR

Leveraging its existing hardware dominance, Samsung can enter the thriving
markets of cloud gaming and virtual/augmented reality. This move would allow
the company to diversify its product offerings and tap into the growing demand
for immersive experiences.

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 Meeting Eco-Friendly Demands
The growing consumer demand for eco-friendly products provides an
opportunity for Samsung to develop and market sustainable electronics and
appliances. This aligns with the trend towards environmentally conscious
consumer choices.

Growth Potential in Developing Regions

The increase in smartphone penetration in developing regions, particularly Africa
and Southeast Asia, offers growth potential for Samsung's affordable phone
offerings. This allows the company to tap into emerging markets with increasing
consumer purchasing power.

Own Software Ecosystem and Premium Services

Samsung's development of its own software ecosystem and premium services,
such as Samsung Care+, can provide additional revenue streams. Building a
comprehensive ecosystem enhances customer loyalty and creates a competitive
advantage.

Strategic Partnerships and Acquisitions

Forming strategic partnerships and making acquisitions in promising technology
areas like AI, robotics, and cybersecurity can accelerate innovation and market
share. Collaborations with cutting-edge companies can enhance Samsung's
capabilities and product offerings.

Promoting Sustainability Practices

By promoting smartphone repair, responsible recycling, and embracing circular
economy practices, Samsung can improve its brand image and address
environmental concerns. This proactive approach aligns with consumer
expectations for sustainable business practices.

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 2.1.4 Threats

Competition from Emerging Brands

Brands like Xiaomi, Huawei, and OPPO gaining market share,
particularly in smartphones and budget electronics in emerging
markets, poses a threat to Samsung. Increased competition may
1
impact Samsung's market share and profitability.

Market-Specific Laws and Regulations

Varied laws and strict regulations in different markets can

2 hinder Samsung's operations. Compliance challenges may

arise, affecting the company's ability to navigate legal
landscapes in diverse regions.

Over-Reliance on Android OS
Samsung's dependence on Google's Android OS limits its control
over software and user experience. This reliance makes Samsung
vulnerable to changes in the Android platform and increased
3
competition from other Android-based manufacturers.

Trade Disputes and Political Instability

Trade disputes, especially between the US and China, along with

4 political instability in key markets, can disrupt supply chains and

reduce demand for Samsung products. Economic uncertainties
arising from geopolitical issues pose a significant threat.

Dynamic Market and Changing Loyalty

The highly dynamic market and changing customer loyalty have led

5 to a dent in Samsung's market share. Shifting consumer preferences

and loyalties make it challenging for Samsung to maintain a stable
market position.

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Economic Factors in Key Markets
BDeclining or stagnating middle-class incomes in North America
and the United States could reduce consumer buying power,
impacting Samsung's sales in these key markets. Economic
6
downturns may affect the affordability of Samsung products.

Cybersecurity Concerns
Increased internet connectivity in Samsung devices exposes

7 them to potential cyberattacks and data breaches. Such

incidents can jeopardize user privacy, damage brand reputation,
and result in legal consequences.

Growing Reputation of Apple

Apple's growing reputation for quality, reliability, and
sophistication poses a competitive threat. Consumer preferences
shifting towards Apple products may impact Samsung's market
8
share and competitiveness.

Lawsuits and Patent Infringement

Apple filing lawsuits of $1.049 billion against Samsung for patent

9 infringement is a legal threat. Legal battles can result in financial

losses, damage to reputation, and restrictions on certain product
features.

Counterfeiting
The rise of counterfeiting, especially in Asian markets where over 36% of

10 all counterfeit devices are clones of Samsung, poses a threat to the

company's brand image and revenue. Counterfeit products may impact
customer trust and sales.

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2.1.1 Strengths

Brand recognition
Samsung is widely recognized as one of the most esteemed brands globally. Its goods and services
have established it as an established brand in the worldwide market. This brand is highly regarded
due to its amazing ability to deliver top-tier services and goods.

A lot of people have a positive impression of the brand as a result of the company's efforts, which
include appealing advertising campaigns, continuously high-quality products, and endless
innovation in technology.

Skilled and efficient workforce

Since the beginning, Samsung has always sought to hire attentive, efficient, and highly competent
employees. The personnel at Samsung demonstrate exceptional proficiency and professionalism in
technical skills, management, and the manufacture of high-quality goods.

Because of this, the company's development and expansion have been greatly enhanced. Moreover,
the Samsung Group has been successful in retaining and attracting top personnel across its many
business units, which has allowed it to remain competitive, inventive, and technologically advanced.

Diversification
The Samsung Group has diligently pursued the founder's vision by making significant efforts to
develop and diversify its operations. Samsung has a diverse presence in several areas, including
construction, finance, insurance, heavy industries, display technology, smartphones,
semiconductors, and consumer electronics.

The Samsung's diversification has resulted in many revenue sources, providing protection against
economic recession, market swings, and economic downturns.

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 Economies of scale
Despite Samsung's extensive client base, resulting in heightened demand for the business's goods
and services, the corporation engages in large-scale production. Samsung's extensive manufacturing
enables them to take advantage of economies of scale.

Producing a large quantity at a cheap cost per unit gives the business a competitive edge.
Competitive pricing allows Samsung to convey this advantage on to consumers, giving them a leg
up in the market.

Vertical integration
Samsung's supply chain is characterized by vertical integration, which provides Samsung the ability
to exercise control over its manufacturing processes, prices, and quality.

Samsung's dependence on external suppliers is reduced as a result of the enormous in-house

manufacture of various components, which also assists the company in maintaining a better control
over the manufacturing and development of its products.

Distribution network
Samsung has a widespread distribution network worldwide, which encompasses its significant
online presence and collaborations with various distribution channels and retail stores.

Samsung's enormous distribution network has facilitated widespread consumer outreach across all
markets, enabling Samsung goods and services to reach a far broader audience.

Innovation and a strong R&D

The Samsung Group has diligently pursued the founder's vision by making significant efforts to
develop and diversify its operations. Samsung has a diverse presence in several areas, including
construction, finance, insurance, heavy industries, display technology, smartphones,
semiconductors, and consumer electronics.

The Samsung's diversification has resulted in many revenue sources, providing protection against
economic recession, market swings, and economic downturns.

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 2.1.2 Weaknesses
Fierce competition
Being a frontrunner in a sector such as the
technology business has drawbacks, one of
which is intense rivalry. Despite its leading
position, Samsung encounters fierce
competition.
Furthermore, as a result of its many
sources of revenue, it encounters more
intense rivalry in almost all of its business
divisions, particularly in the semiconductor
and consumer electronics sector such as
Apple, Xiaomi and Google
Dependence on the smartphone
market
An area of vulnerability for Samsung is its
over reliance on the smartphone sector.
Despite having a diverse market, Samsung's
reliance on the smartphone sector remains
significant. This is only due to a significant
portion of their income being derived from
the fiercely competitive smartphone sector.

Little presence in the software Quality control issues

and services industry
The Samsung Group has exceptional
proficiency in the production of
hardware. However, they are not as
advanced as rivals such as Apple and
Google when it comes to offering
software and services. This has
constrained the company's capacity
to establish a full ecosystem.
At one point, Samsung had a problem with one
of their devices, namely the Galaxy Note 7. The
phone's battery had a malfunction, resulting in
an explosion. Consequently, the business
initiated a recall of all the phones that were sold.
Despite the recall and subsequent repairs, the
battery problems remained.
Consequently, the sales of that particular phone
model were completely terminated. Recurring
incidents of this kind may significantly damage a
company' reputation.

Legal battles and patent

infringement
Samsung has often encountered legal disputes, namely with Apple. The
primary legal matter is patent infringements. Lawsuits of this kind have
the potential to adversely impact the company's reputation. The
majority of these legal conflicts culminate in monetary sanctions,
resulting in a decrease in the company's income. Rival companies might
use legal conflicts as a means to acquire clients from their competitors.

17
 Limited software
differences
When it comes to smartphone operating
systems, Samsung relies mostly on
Google's Android. This eventually gets to
them since it makes it hard to tell their
software apart from rivals' software that
uses the same platform.
Because of its reliance on a third party,
Samsung has little control over the
software experience and the potential
income from software-related services.
Vulnerability of its supply chain
As a result of its complicated and vast supply
chain, Samsung is susceptible to external
variables such as global economic downturns,
natural catastrophes, geopolitical conflicts, and
global economic recessions, despite the fact that
its vertical integration provides several
advantages.
Production expenses might increase, production
can be disrupted, and company success can be
affected by these variables.

2.1.3 Opportunities
Acquisitions and mergers
It would be wise for Samsung to
continue buying up successful
businesses. To fuel its expansion,
the corporation should put more
money into purchasing other
businesses, both established and
new. If Samsung wants to
improve its reputation in the
market, it may purchase tech-
savvy enterprises.
Diversification and
expansion
The Samsung Group is already present in
more than one market, and it has plenty of
room to grow by penetrating even more
niches. With this strategy of diversification,
the corporation may enhance its market
share and maintain its position in the
industry. Samsung doesn't have to limit itself
to the smartphone business; the company
may expand into other areas as well, such as
the education sector.

TPP launching
The newly released feature of Samsung's triple protection proposal
(abbreviated as TPP) combines state-of-the-art technology with flawless
workmanship. It shields against water, surges of electricity, and lightning
strikes.
With this amazing new feature, Samsung can keep its current customers happy
and bring in as many new ones as possible. The fact that consumers are drawn
to cutting-edge products and services is a well-known fact.

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Launching innovative products HR Management

Samsung has the opportunity to HR management is a very advantageous

delve creatively into the smartphone investment for Samsung. An exceptional HR
sector, which is its mainstay. The management will provide the firm with a
corporation can dominate the competitive advantage and enhance the
smartphone market with its efficiency and effectiveness of workers,
revolutionary products since the provided that the organization maintains high
sector is always evolving in terms of standards in hiring highly talented,
design and hardware. professional, devoted, resilient, and qualified
people.

Next-generation smartphone The 5G technology

gaming
The realm of technology is very dynamic, and
society has transitioned to the use of 5G.
Samsung have the reputation and capability
The Exynos 2200 is the latest state-of-the-art
to effectively exploit this opportunity. The
chipset from Samsung. An AMD graphics business is now engaged in active negotiations
processing unit (GPU) is built into this CPU.
A name for the GPU is Xcplise GPU. As the
with EU operators to provide equipment for
most recent and advanced mobile processor, the 5G and 6G networks. Samsung Group has
the Exynos is built with many CPU cores to
provide stunning visuals and performance
emerged as one of the top contenders in the
for mobile games, putting it at the cutting United Kingdom's roster of possible 5G
edge of technological innovation.
devices.

2.1.4 Threats

Increasing competition

Every day, new enterprises, companies, and start-ups emerge. Nevertheless,

Samsung encounters the most rivalry from the smartphone, consumer
electronics, and computer sectors. These competitors engage in daily efforts to
outwit and surpass each other in order to establish themselves as the leading firm
in the technology sector. The rivalry among Samsung, Huawei, Xiaomi, and
Apple has intensified, hence increasing the pressure on Samsung in terms of
price, innovations, new features, and market dominance.

19
 Controversy

One of the most contentious issues that the Samsung Group is now dealing with is
patent, which represents a significant risk to Samsung. There was a rival instance of
patent infringement in which Apple, Samsung's number one competitor, filed a lawsuit
against Samsung. The case was drawn out for seven long years until both sides reached
an agreement with the matter. If appropriate actions are not taken, controversies have
the potential to bring about the demise of a corporation.

A lot of people have a positive impression of the brand as a result of the company's
efforts, which include appealing advertising campaigns, continuously high-quality
products, and endless innovation in technology.

Product counterfeit

Various research investigations have consistently shown that Samsung phones are the
most prevalent targets of counterfeiting. According to AnTuTu, a mobile benchmarking
service, around 36% of counterfeit phones are Samsung devices.

The Samsung Galaxy S7 Edge is a replica of all Samsung smartphone models.

Counterfeiting items diminishes the market share of the authentic products. This occurs
because the revenue earned from the counterfeit products is directed towards the
producers of those counterfeits, rather than the firm that owns the real version.
Counterfeits sometimes exhibit disparate quality compared to the authentic products,
resulting in buyers expressing negative feedback via unfavorable reviews.

Dissatisfied users

Recently, there has been a significant outcry on the internet over the inability of
Samsung Galaxy S users to effectively delete their cache. One of the submitted
complaints said that a user of the phone model removed all cache, but upon re-entering
the cache settings, all the previously deleted cache was still there.

Regardless of how often a user deletes their cache, the erased cache consistently
reappears. Samsung's customer service inquired if the issue persisted across all other
social media applications, such as YouTube or Twitter. The user responded that the
problem was exclusive to the Samsung Internet app. This indicates that the issue is
associated with that specific phone model.

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 2.2 STRATEGY FORMULATION
FRAMEWORK (STAGE 1)

2.2.1 IFE

15
2.2.2 EFE

15
2.2.3 CPM

15
 2.3 ACHIEVEMENTS

Samsung Wins 46 CES

(Consumer Electronics
Show) 2023 Innovation
Awards From the
Consumer Technology
Association

Samsung Electronics Samsung Electronics Received 50 Awards at

Received 50 Awards at the the International Design Excellence Awards
International Design 2023
Excellence Awards 2023

U.S. Environmental Protection

Agency (EPA)

2021 Sustainable
Materials Management
(SMM) Awards

Received Two Accolades in

Recognition of Recycling and
Eco-Product Innovations

Samsung Electronics Celebrates 80 Wins at iF Design Awards 2023

Received one Gold Award for designs that offer customizable experiences for different
lifestyles.

Awarded 80 trophies across nine categories ranging from product to user experience (UX)
design for TVs, home appliances, smartphones and other devices.

15
 3. COMPANY’S
STRATEGIC PLAN
3.1 STRATEGY FORMULATION (STAGE 2)

3.1.1 SWOT Matrix

8
15
15
 3.1.2 BCG Matrix

High
STARS QUESTIONS MARKS

Samsung Samsung
htworG tekraM

Smartphones & TV Notebook

CASH COWS DOGS

Samsung Home
Appliances

Samsung Printer

Low
High Market Share Low

15
 3.2 STRATEGY FORMULATION (STAGE 3)

3.2.1 QSPM

15
15
 4. STRATEGIC
IMPLEMENTATION
4.1 PRODUCT DEVELOPMENT
Leveraging R&D
Samsung's robust research and development infrastructure positions them to pioneer
innovative products like foldable smartphones, AI-powered appliances, or VR/AR
experiences. This can create new market segments and generate excitement around the brand.

Strengthening brand recognition

Introducing cutting-edge products reinforces Samsung's image as a leader in technological
advancement, attracting tech-savvy consumers and further solidifying their brand image.

Addressing emerging needs

By anticipating and fulfilling unmet market needs, Samsung can create new revenue streams
and gain a competitive edge.

4.2 FORWARD INTEGRATION

Control over distribution

Establishing their own retail stores or online platforms gives Samsung direct control over
customer relationships and brand experience. This enhances communication, improves data
collection, and allows for targeted marketing campaigns.

Improved profit margins

By cutting out middlemen in the distribution chain, Samsung can capture a larger share of the
profits and increase revenue.

8
 Enhanced brand identity
Direct interaction with customers allows Samsung to tailor their offerings and messaging to
specific audiences, strengthening brand identity and loyalty.

4.3 BACKWARD INTEGRATION

Supply chain security
Owning critical components like semiconductor chips or display panels reduces dependence
on external suppliers, mitigating risks of shortages, price fluctuations, or quality control
issues.

Cost reduction
By cutting out supplier markups and controlling production processes, Samsung can
potentially lower production costs and improve bottom line profitability.

Quality control optimization

Direct control over raw materials and manufacturing allows for tighter quality control
measures, enhancing product reliability and brand reputation.

15
5. CONCLUSION AND
RECOMMENDATION
5.1 CONCLUSION
In conclusion, Samsung is a huge and strong empire involving numerous industries. Samsung has
become a global leader in the technology industry by understanding client needs, providing high-
quality goods, extending its business portfolio, and consistently innovating. Samsung Electronics
has a strong track record of success through its focus on innovation, brand building, and
diversification. However, the company faces challenges from competition, economic uncertainty,
and new technologies. By claiming the lead in the worldwide market, Samsung demonstrates its
importance and influence on today's tech-savvy customer. Even so, the business constantly picks
up new skills from its top rivals in the industry. The Korean brand is encouraged to continue its
development and concentrate on product developments due to the potential threat created by
superior businesses or alternative, less expensive technology enterprises. It has become Samsung's
culture to create new products and look for new chances in order to keep its position as a leading
tech business. Future customers will look to Samsung to produce goods that simplify their busy
lives and to create meaningful experiences. Through a series of long-term, targeted, and ambitious
corporate activities, Samsung climbed to the top of several technology markets worldwide. The
business division of Samsung Electronics, Samsung Mobile, has made a significant contribution to
the group's overall performance. Its impressive recent performance has been attributed to its well-
executed strategic management plans. These worldwide strategy initiatives are responsible for the
company's success in gaining recognition and loyal consumers. The group's ability to handle
competition has improved attributed to the policies.

3
5. CONCLUSION AND
RECOMMENDATION
5.2 RECOMMENDATION
Address Price Sensitivity
Offer a wider range of products: Cater to different price points and market segments to capture
a larger audience.
Emphasize value proposition: Highlight the unique features and benefits of Samsung products
beyond just price.
Improve affordability: Explore cost-reduction strategies and optimize the supply chain to offer
competitive pricing.

Reduce Dependence on Mobile

Expand into other electronics segments: Invest in growing sectors like connected appliances,
healthcare devices, and automotive technology.
Develop new revenue streams: Explore subscription services, software development, and other
service-oriented models.
Invest in B2B markets: Focus on building partnerships and providing solutions for businesses
across different industries.

Become a Sustainability Leader

Commit to ambitious environmental goals: Set achievable targets for reducing carbon
footprint, increasing energy efficiency, and using recycled materials.
Develop green technologies: Invest in clean energy solutions, sustainable manufacturing
processes, and eco-friendly product designs.
Communicate sustainability efforts: Transparently showcase environmental initiatives to
attract environmentally conscious consumers and investors.

By implementing these recommendations into practice, Samsung can strengthen its position as the
industry leader in technology, deal with pressing issues, and seize exciting new prospects.
Consider that effective strategic management demands constant observation, modification, and
advancement.

3
 REFERENCES

Lee Byung-chul (1910–1987) was a successful South Korean businessman and the founder of
Samsung Group, a globally renowned conglomerate. His significant contributions were
instrumental in shaping South Korea's economic landscape, propelling Samsung's evolution from
a small trading company into an international giant corporation with varied business ventures.

3
 APPENDICES

Lee Byung-chul (1910–1987) was a successful South Korean businessman and the founder of
Samsung Group, a globally renowned conglomerate. His significant contributions were
instrumental in shaping South Korea's economic landscape, propelling Samsung's evolution from
a small trading company into an international giant corporation with varied business ventures.