Essay on Samsung Company

Osman Sirin

  • December 3, 2022

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A Giant Brand: Samsung

Essay on Samsung: Introduction

Within the last century, the emergence of computer technologies, along with the emergence of the internet and social media, have changed the way of business. The business world has become increasingly accessible, global, and feasible, and many vast companies have emerged as a result of globalism. These companies, such as Apple, Samsung, Google, and Twitter, have offices in almost every country. In this assignment, one of the vast companies, the Samsung Company has been meticulously examined and analyzed in terms of its background, product line, brand recognition, and the company structure. Also, recommendations have been stated for further considerations.

Samsung Company Background

Samsung is one of the leading technology brands around the world. Lee Byung-Chull established it in 1938 in Korea. It was a grocery at the beginning. By the time it took part in the textile industry and from the 1940s to 1970s, the company enhanced itself in entering the foreign markets. At the beginning of the 1970s, the company started giving place to technology by producing its first black-and-white television. During the 1990s, Samsung's progress in technology continued in the global market. Through the production of smartphones in the 2000s, Samsung expanded its variety of technological products every year. It is now at the top list of best global technological companies. In this sense, one may readily infer that the company once followed a rather improvisation in different sectors in order to obtain the required capital for targeted business models.

Competitors of Samsung

Samsung has many competitors from different fields because of its wide variety of products. The company races to the top with well-known brands in all markets. However, Apple is seen as its biggest competitor because of its race in the production of smartphones. Both companies are fastened to each other with their funny and smart commercials. Samsung is actively used in Asian (Shaughnessy 7). It is not much successful in the USA market because of the dominance of Apple there. Unlike Apple, Samsung cooperates with the Android operating system, which is most preferred worldwide. This system is developed to make the use of phones practical to attract people. The company's basic principle in the commercial is upon the ease the daily life. Samsung produces much of the raw materials and main pieces of technological devices that are used by even its competitors. Samsung is a leading brand in the technology market, and they are famous for producing the manufacturing parts for their competitors. Especially, this situation adds up to its image a lot.

Samsung was born in Asia; thus, its efficiency is more in there. The company's biggest competitor in Asia is Huawei, which domains the sector of China. The company, therefore, needs to attract the people in countries that have a high population. Indonesia, India, Bangladeshi, and other examples are available for Samsung to focus on because Apple's target group certain, and Huawei had a disagreement with Google. Apple's target market is first the United States of America and then Europe. Huawei tries to take its previous quality. This atmosphere is available for growth in Asia markets. The main difference that separates Samsung from these most closed competitors is the variety of its products. Apple and Huawei are efficient in phones and other communication devices; however, Samsung provides white goods and TVs besides phones.

Product Lines

Samsung has an extended and various product line compared to its competitors. The most popular product of this technology giant is absolutely the smartphones. Its Galaxy lineup leads many mobile phone innovations. The company usually presents new designs for the smartphone market. It affects the other smartphone producers in terms of the performances and the abilities of their phones. Samsung offers many conveniences to the consumers; for instance, wireless charging, high resolution in photographs and video, long-time durable battery, etc. Otherwise, the quality of the cameras is very high; thus, people do not need a photograph machine. The company supports its phones with the tablet pcs. These are also practical for transporting and solving your works.

Samsung uses the Android operating system that is the most used across the world. It is based on having more basic algorithms than IOS to convince the costumers. We gave the example of IOS here because it is closer to Android from others in terms of choice. Google is one of the supporters of this operating system. Therefore, Google's applications are used more in Samsung devices rather than Samsung's applications. The company may try to improve some kinds of applications. Samsung has a wide product line, which includes raw materials. The company enhances systemic materials, bi-products of the CPUs, etc. Besides these, I would say that they can provide the materials which can notice better. At the present time, people usually choose the products which are eye-pleasing. The devices of the company may be more obvious. I guess the company may prepare its commercials like they are unrivaled, or the only competitor is themselves rather than giving places to the other firms.

There are some of the products, and the company prefers to use with their smartphones. First, smartwatches come to hand. They are not confused with a normal watch because of their good designs. It looks chic, and it is very practical to use. The consumers do not need to get their phones out from their pocket most of the time, because they connect their smartwatch to a smartphone by Bluetooth and use the applications to their job. The company also offers wireless headphones. It is more useful while doing exercises, running, etc. Samsung makes an effort to provide qualified products to its consumers.

Samsung stepped into the technology with the television. Its improvement in smart TVs started in 2008 with the birth of content-oriented TV that can make the consumer connect the internet or USB devices (Kour 11). Nowadays, when we look at the Samsung Smart TVs, we can easily be aware of high video quality. 4K screens make the people feel themselves inside of the TV. The company leads innovations also in white goods. The dishwashers provide water saving, and the washing machines provide time savings. The refrigerators keep the foods fresh for a long time. The company tries to help people at any moment in their lives.

Samsung has a wide range of target audience's ages in terms of smartphones. In my opinion, the company can divide this range into three and produce the devices in this way. Because different ranges need or want different features on the phone. The businessmen hope to access their emails easily, and the young generation wishes a better CPU while playing games. The company may decide the cost of the products according to the country's society's financial conditions. By decreasing the price too few, the sales can increase—people think about how these prices affect themselves economically.

Recommendations for Samsung

In light of this information, one may readily infer that Samsung is a multi-faceted company that is concentrated in various fields such as smartphones, televisions, white goods, and so on. Therefore, although the company has overall brand recognition among different customer segmentation, there does not exist a single field of production that Samsung is unquestionably the number one brand. In other words, the company targets to be an "okay" brand rather than being the superstar. For instance, and arguably, Apple is the superstar in the smartphone industry, or Tesla is another leading player who seems to be unbeatable in space sciences for a long period of time. In this sense, one may interpret that Samsung does not target to become one of the superstars in various industries; rather the company follows a collective strategy to ensure the guaranteed source of income per annual.

Nevertheless, today's business world has drastically shifted due to the emergence of computer technologies, the internet, and social media. That is, the popularity of companies in social media society has become a determinant in consumer behavior as more people have tended to be a part of this digital world. When considered the fact that social media marketing has already dominated the other marketing channels like television, one may recommend that Samsung should consider concentrating on a single business field. Similar to Samsung, Apple also manufactures smartphones, televisions, and many other assets. However, investing merely on iPhone ads is both advantageous and feasible for the company because the product is like a brand-signature which is popular across the world. Therefore, I believe that Samsung needs a signature-product. Arguably, neither the Galaxy series or cutting-edge white goods have become a signature brand across the world. For a vast organization like Samsung, there should be a characteristic product that reflects the brand culture, image, recognition, and, most importantly, organization values.

Essay on Samsung: Conclusion

In conclusion, the paper has presented insights into the Samsung Company, and the Korean technological giant is a leader in the global market. The company's variety of product line gives it a reputation in different fields. The technological giant is innovating the world in terms of many ways. The company’s quality of brand improves from day today. The number of people that Samsung has an effect on is more than the other. The product line of the company serves it the opportunity of being at the top of the technology company list. The target audience of Samsung is wide, and that raises the opportunity of being at the top list.

“ENCYCLOPEDIA BRITANNICA.” ENCYCLOPEDIA BRITANNICA, Edited by Peter Bonderenko, https://britannica.com/topic/Samsung-Electronics.

Kour, bySimranjit. “Introduction to Samsung Smart TV.” TO THE NEW BLOG, www.tothenew.com/blog/introduction-to-samsung-smart-tv/.

Shaughnessy, Haydn. “What Makes Samsung Such An Innovative Company?” Forbes, Forbes Magazine, 8 Mar. 2013.

Osman Sirin

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Samsung Market Analysis: Business & Economics

Introduction.

Samsung is a mega-company, which has dominated various industries across the world. Although it is a South Korean company, Samsung has grown and ventured into diverse industries in South Korea, Asia, and other parts of the world. History of Samsung shows that it commenced as a trading company in 1938 and has tremendously grown and become a conglomerate comprising a considerable number of affiliates and subsidiaries. A notable feature of Samsung is its diversity because it has expanded into diverse industries and penetrated competitive global markets. According to Samsung (2015), Samsung has evolved from a minor trading company in South Korea to an excellent conglomerate, which has businesses in diverse industries.

Samsung has ventured in electronics, mobile, computer, construction, and insurance industries, hence, making it a conglomerate. The major subsidiaries and affiliates of Samsung are Samsung Electronics, Samsung Engineering, and Samsung Heavy Industries. Owing to its economic stance, Samsung is a very influential conglomerate in not only South Korea but also across the world. Essentially, Samsung has extensive markets globally because it offers diverse products, which satisfy different needs of customers. To enhance understanding of Samsung, this essay assesses kind of market, price elasticity of demand, income elasticity, competition, profitability, labour force, and SWOT analysis.

Vision and Mission

As a conglomerate, Samsung has set its vision and mission, which give it direction and goals. Exploration of Samsung’s vision and mission shows that they form the foundation of business strategies, which are effectively applied in the competitive markets. Categorically, the vision of Samsung is to be a digital leader by creating innovative products, which enrich the lives of people globally ( Samsung, 2015).

This vision has truly made Samsung a digital leader because it currently leads in the electronics industry. As a digital leader, Samsung is setting trends in the electronics industries, and it is giving tough competition to Apple, LG, HP, Dell, and Lenovo. Moreover, Samsung is among the leaders of construction and smartphone industries because it has affiliates and subsidiaries. Thus, the vision of Samsung is the cornerstone of its business strategies of creating quality products, venturing into new markets, and transforming the lives of people globally. In addition to vision, Samsung has a mission to exploit technology and talents in the creation of quality products, which have the capacity to satisfy human needs globally. Samsung devotes its resources in research and development of novel products by coming up with new technology and training its workforce. Hence, the mission is another cornerstone of Samsung because it directs activities that it undertakes on a daily basis.

Perfect Competition Market

Samsung operates in the market where it experiences perfect competition. As a conglomerate, Samsung has diversified into different industries owing to its competitive products, which dominate global markets. Fundamentally, a competitive market is a market where no single competitor dominates or has the power to set the quality of products and determine prices. The market of Samsung exhibits perfect competition because other competitors such as Apple, Nokia, Techno, Motorola, LG, Dell, HP, and Kodak are eying the same markets. These competitors offer fierce competition to Samsung by providing substitute products, such as computers, mobile phones, tablets, televisions, cameras, and other electronics.

Samsung is a tough competitor in the market because it offers quality, innovative, and unique products at affordable prices. Samsung’s products target both low-end and high-end customers in diverse global markets. Analysis of the market share of Samsung indicates that it enjoys extensive market share globally, which gives it a competitive advantage over its competitors. The chief competitor of Samsung in the smartphone and computer industries is Apple. However, Samsung outcompetes Apple in the electronics industry because it offers novel products and enjoys extensive market share globally. Therefore, it suffices to say that Samsung operates in a perfectly competitive market where prices and quality of products determine market share.

Price Elasticity of Demand

Samsung’s products exhibit price-elastic demand because their demand varies, according to the market prices. Prakashan (2008) defines price elasticity of demand as the sensitivity of customers to price changes of products. As Samsung operates in a perfectly competitive market, it uses a pricing strategy in outcompeting its competitors. Owing to stiff competition and availability of substitute products, customers easily change the nature of the products they consume, according to their purchasing power and options. For example, if Samsung increases prices of its electronics products, it will experience a concomitant decline in sales, as customers will shift their choice of products to other substitute products offered by Apple, Nokia, LG, HP, Dell, and Lenovo amongst other companies.

Samsung has an extensive market share across the world because it offers affordable products, which compete effectively with substitute products in terms of quality, creativeness, and uniqueness. Evidently, pricing is an integrated marketing strategy that Samsung and its competitors employ in penetrating competitive markets. In this view, Samsung’s products have price-elastic demand because their demand is sensitive to change in prices. Hence, Samsung keenly prices its products at affordable prices to make optimum sales and reap maximum profits.

Income Elasticity of Demand

The products of Samsung face positive income elasticity of demand because their consumption increases with an increase in the level of income among its customers. Specifically, the kind of income elasticity is high-income elasticity because they form part of luxuries and comforts. Prakashan (2008) state that high-income elasticity is the positive income elasticity of demand where an increase in income causes a concomitant increase in demand. In this view, given that Samsung offers digital products, their demand is subject to the purchasing power of its customers. Samsung has both low-end and high-end products to suit the needs and purchasing power of customers.

Customers in developing countries have low income, and thus, they can afford to purchase low-end products. In contrast, customers in developed countries have a high income, and therefore, they can afford to purchase high-end products. Moreover, digital products comprise luxuries and comforts, which people can only buy if they have excess money after satisfying their basic needs. Essentially, an increase in income implies that people have extra money to spend on luxurious products such as televisions, tablets, smartphones, fridges, and computers. Thus, Samsung’s products face high-income elasticity because its sales depend on the level of income among its customers.

The Closest Competitors

Samsung has the closest competitors in industries such as electronics, computer, mobile, and construction industries. In the electronics industry, Samsung competes with Sony and LG. These competitors offer products such as televisions, hoofers, speakers, disc video players, fridges, cameras, and other household electronics. In the global markets, the products of these competitors have dominated, and hence, they offer stiff competition for Samsung’s products. In the computer industry, competitors of Samsung are Apple, Dell, HP, Lenovo, Toshiba, and Acer. These competitors manufacture tablets, laptops, and desktops, which are major forms of computers in the global markets.

Moreover, Apple offers a unique software, operating systems, such as MacOS and iOS, for computers and smartphones, respectively, hence, giving Samsung a tough competition. In the mobile industry, Samsung has the fiercest competition because of the emergence of smartphones. Smartphone companies such as Nokia, Apple, Techno, Motorola, and HTC are the closest competitors of Samsung. Apple is the major competitor of Samsung because it offers iPad and iPhone, which are unique smartphones due to its operating system and design. In the construction company, Samsung Heavy Industries competes with Mitsubishi Heavy Industries, China Shipbuilding Corporation, and Hyundai Heavy Industries, which are the closest competitors of Samsung in the shipbuilding industry.

Substitutes and Complements

As Samsung operates in a perfectly competitive market, it has substitutes, which affect its demand in the global markets. Essentially, Samsung has diverse forms of substitutes, which vary according to the industry. In the electronics industry, the substitutes of Samsung’s products such as televisions, fridges, speakers, hoofers, cookers, and other household items exist. Companies such as LG and Philips offer these substitute products in plenty, and thus, customers can easily shift their preferences when supply, prices, and quality changes become unfavourable. In the smartphone industry, companies such as Techno, Apple, Nokia, Motorola, and HTC offer substitute products, which effectively influence the sales of Samsung’s products. Since most smartphone companies rely on Android technology, they generate substitute products, which are similar to Samsung’s products.

Apple uses iOS, which is a unique mobile operating system, hence, creating novel substitute products. In the computer industry, Samsung manufactures complementary products. Fundamentally, Samsung manufactures hardware for smartphones and computers but relies on software from Google and Microsoft. Android software from Google is a complement product of smartphone hardware of Samsung, while Windows is a complementary product of computer hardware. Therefore, Samsung has both substitutes and complements in the electronics, computer, and smartphone industries.

Increasing Demand for Products

The demand for Samsung across the world is increasing tremendously, owing to their uniqueness, novelty, quality, and affordability. The products of Samsung Electronics, a major subsidiary of Samsung, dominate global markets. Samsung has specialized in the provision of these products because it fetches a significant portion of profits when compared to other subsidiaries. The electronics products include televisions, fridges, cookers, speakers, hoofers, radios, and disc video players, among other products. Given that these products are household products, they are in high demand in every household. Moreover, the affordability of these products has given Samsung a competitive edge in global markets.

Both high-end customers and low-end customers can purchase electronics products because Samsung has differentiated products into diverse market segments, according to the needs and economic level of customers. In addition, smartphones comprise products that are in high demand in the global markets. The emergence of Android technology, coupled with microchip technology of Samsung has boosted the manufacture of smartphones with enhanced capabilities. These smartphones are in high demand because people require them in accessing the Internet and performing a plethora of activities. Social media subscribers, bloggers, and businesspersons heavily rely on the smartphones in accessing the Internet.

Labour Force

Samsung prides itself of talented workforce, which it has trained to create innovative and unique products, which are competitive in the global markets. According to Samsung (2015), talented and well-trained employees are integral asserts, which boost the capacity of Samsung to generate innovative and unique products. Samsung has allocated immense resources in recruiting and training of talented workforce.

The world of technology is very dynamic in that it requires constant training of workforce to keep abreast with technological advancements in diverse industries. According to Sodhi and Lee (2007), Samsung has established training centre, where it trains its employees to gain new knowledge and skills to enhance competitiveness of the company in researching and developing novel products, which can improve the lives of people. In the aspect of marketing, the training centre offers multinational courses, which enable expatriates to gain multicultural competencies so that they can aid in resolution of cultural barriers, which hinder marketing and usage of Samsung’s products. Equipped with multicultural competencies, expatriates can effectively represent Samsung in various cultural backgrounds. In this view, the training of employees increases productivity and consequently reduces the costs of operations.

Profitability of Samsung

Since its inception in 1938, Samsung has continued to grow by expanding its operations and venturing into new markets. The profitability of Samsung is evident because it has risen from being a minor trading company to being a conglomerate. Currently, Samsung is the most profitable company in the electronics, computer, and smartphone industries. According to Danova (2013), Samsung is the leading profitable company with $7.6 billion profit after overtaking Apple with $7.5 billion profit. Although Samsung offers cheaper products than Apple’s products, its profitability emerges from the high sales volume because Samsung enjoys extensive market share. Moreover, Samsung supply chips and semiconductors to electronics companies such as Apple, Kodak, Sony, and LG. Samsung has patented chips and semiconductors for it has exclusive rights of manufacturing and selling them to diverse electronics companies. In this view, Samsung has monopolized microchip industry. Samsung has diverse companies in form of affiliates and subsidiaries, which cumulatively magnify the profitability of Samsung.

Critical analysis of profitability shows that it is sustainable because Samsung has a matchless market share. Its close competitor, Apple, has a limited market share, which is incomparable to that of Samsung. Owing to the fact that Samsung offers cheap products in diverse industries such as electronics, computer, smartphone, and construction industries, it has attracted many customers and maintained them. In this case, the ability of Samsung to attract and maintain customers enhances sustainability of its profits.

According to Danova (2013), it is predictable that Samsung will dominate the digital industry so long as it offers quality and innovative products, which are affordable to customers in diverse market segments. As Samsung values its human resources, it recruits and trains employees to enhance their creativity so that they can come up with competitive products. Hence, well-trained and talented employees contributes to the sustainability of profits that Samsung makes in its diverse affiliates and subsidiaries. In addition, Samsung has not exploited all markets in the developing and developed countries, hence, there is still an immense market to exploit and expand market share. In terms of diversification, Samsung is a notable conglomerate, which easily ventures into new markets and establish robust niches.

How Samsung Can Increase its Profits

As Samsung enjoys extensive market share, it can increase its profits through value-creation strategy. Analysis of business strategies that Samsung employs in augmenting its profits shows that it mainly exploits product differentiation and diversification of its operations. In product differentiation, Samsung predominantly offers electronics products, but it has diversified into computer, smartphone, and construction industries.

Currently, intense competition is raging in the electronics, smartphone, and computer industries, and thus, threatens to shrink already established markets of Samsung. In this, view, Samsung should take advantage of its extensive market share by employing value-creation strategy in maintaining the established markets and exploiting potential markets globally. Through value-creation, Samsung will be in a position to only to maintain its current market share, but also to venture into new markets. Therefore, to remain competitive and maximize profits, Samsung should undertake value-creation by maintaining its established market share and diversified industries.

Other: Samsung’s SWOT Analysis

Samsung has notable strengths such as extensive market share, affordable products, diversified businesses, and talented employees. The extensive market is the first strength of Samsung because it boosts sales and increases profits considerably. Currently, Samsung is a conglomerate, which dominates diverse markets across the world. The second strength of Samsung is that it offers affordable products, which low-end customers can afford to purchase. The affordable products have enabled Samsung to venture markets that are in the developing countries, where people have low incomes.

Diversified businesses comprise the third strength of Samsung for it has successfully ventured into electronics, computer, smartphone, and construction industries with a view of increasing profits. The existence of talented and well-trained employees comprise the fourth strength of Samsung, which has boosted its innovative spirit and creation of competitive products. Samsung ensures that it recruits talented employees and train them appropriately. However, the weaknesses of Samsung are it violates business ethics and overlooks already established markets. Evidently, Apple has sued Samsung for infringing on its patents, and hence, it has affected the reputation of Samsung globally. Although Samsung is notable for establishing new markets, it does not do much to maintain them.

Brand reputation is an opportunity, which Samsung should exploit in diverse markets. Brand reputation has created loyal customers, who are ready to purchase products from Samsung because they are quality, affordable, and unique. Hence, diversification into new industries or venturing into new markets is easy for Samsung because of brand reputation and customer loyalty. Emerging economies of the developing countries offer immense markets for Samsung’s products because they are relatively unexploited by competitors. However, Samsung experiences massive threats in the computer, electronics, and smartphone industries. Competitors such as Apple, HP, Toshiba, Nokia, Techno, and Dell threatens sustainability of market share and profit margins. Additionally, rapid technological advancement is another threat that Samsung is facing in the current world. The rapid changes in technology outdate innovate technologies of Samsung, and hence, making them obsolete.

Analysis of Samsung shows that it is a company with great vision and mission in the digital industry. Since its inception in 1938, Samsung has managed to grow and expand into diverse industries, making it one of the largest conglomerates globally. As it operates in a perfectly competitive environment, its products exhibit price-elastic demand and high-income elasticity. The closest competitors of Samsung are Apple, Dell, Nokia, Lenovo, Toshiba, Lenovo, and LG.

To increase its profits and reduce costs, Samsung recruits talented employees and train them appropriately. Evidently, the products of Samsung are in a high demand, and thus, generating massive profits. The extensive market share and diversity of industries makes profitability of Samsung sustainable. Ultimately, the strengths of Samsung are extensive market share, affordable products, diversified businesses, and talented employees, while the opportunities are brand reputation and emerging economies.

Danova, T. (2013). Samsung is now a more profitable company than Apple . Business Insider. Web.

Prakashan, N. (2008). Managerial Economics . New York: Cengage Learning. Samsung: Values and Philosophy. Web.

Sodhi, M., & Lee, S. (2007). An analysis of sources of risk in the consumer electronics industry. Journal of the Operational Research Society, 58 (1), 1430-1439. Web.

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BusinessEssay . "Samsung Market Analysis: Business & Economics." January 10, 2023. https://business-essay.com/samsung-company-business-and-economic-analysis/.

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