Running head: SAMSUNG ELECTRONIC 1

Samsung Electronic

[Name]

[Institution of Affiliation]
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In the current dynamic world, the advancement in technology has changed the world into

a better place. Due to this advances, various companies and organization have embraced the

latest technology in designing and manufacturing their products. For instance, there has been a

dramatic change in the size of cellphones from the bulky one to thinner ones with advanced

features. According to various studies were done in the past, it was noted that competitiveness

solely depends on upon both internal and external factor. Moreover, this also depends on some

macro-environmental factors such as policies of the country, the degree of consummation, and

the nature of the completion. Therefore, gaining a competitive advantage was very critical for the

Samsung Company (Lee, 2006). To remain competitive on the market, Samsung Company had

to develop new completion advantages such as redesigning and improving its products and

services.

Samsung has been widely known for its electronics products and successful brands in the

electronic industry. However, this company experienced some problems in its products design

which led to a lot of critics. Despite these, the Samsung managerial team was then forced to

create a strategy so as to compete effectively with its competitors such as Sony. To achieve a

global competitive advantage, Samsung was forced to apply the generic value chain model into

their strategic plans. This model entailed personnel management, marketing and design,

development of quality-based management, and hybrid management system. During this era,

Samsung implemented an open era management of cell phone. Its employees were given the

liberty to share their ideas freely and correct their superiors whenever they had constructive

ideas.
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This resource management helped in removing obstacles in the system, and giving equal

opportunities to all its employees to enhance competitiveness and efficiency. Furthermore, the

Open HR system also maintained equal opportunities to all its employees without restrictions or

discrimination (Michell, 2010). With this new management system, Samsung has been able to

move further forward its goals and objectives. This has made it become one of the global class

corporation established on its customers first management philosophy. This enables it to compete

effectively since its employees were free to share their ideas leading to company growth.

The new marketing and branding strategies of Samsung played a tremendous role to its

global competitive advantage. This company utilized the six marketing imperative which is very

critical in the 21st century. To develop a strong customer relation, Samsung advanced its services

to its customers by understanding their needs, warrants, and forthcoming needs. Secondly,

Samsung recognized the power of properly designed products as well as services. Thirdly, its

strong, simple, efficient, intuitive, and adaptive philosophy helped in keeping it at the top of its

competitors. Lastly, its new design of its products reflected well the users lifestyles and is user-

friendly. The quality-based management also helped Samsung to achieve global competitive

advantage. According to Lee, he advised his employee to attack ad bravely timely when a crisis

occurs. These system emphases on technology resources that are the main driving force for

developing best business quality (De & Business Expert Press, 2010). This feature linked human

with the latest technology. Due to the chairmans positive attitude and aggressive nature,

Samsung employees have been able to work hand in hand to improve their products and services

which have made it an outstanding electronic company to gain a competitive global advantage.
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Being a big electronic company, Samsung used two main strategies to compete

effectively with its rival companies such as Sony. The design plan and marketing strategies

brought light to this electronic company. Due to the negative feedbacks, it got from its customers

on the design of its products. Samsung was forced to redesign its products to suit customers

needs. It was a high time for these company to pull up its socks and work on quality and not

quantity. According to Porters Theory of competitive advantage, Samsung company was able to

utilize the five rules of completion in the industry.

Evolutionary strategy/approach

The evolutionary approach has been used by many organizations across the globe.

According to this theory, the economic environment changes gradually with time. Notably, most

successful organization usually perform a cost benefit analysis to promote growth as well as

expansion. As a result, this approach was suitable for the Samsung company as a way of dealing

with the negative feedbacks it got from customers. Giving its products a new design was one of

the key things this company needed. This was after Lee found out how Samsung products were

being ignored because of their unappealing design. The new design helped Samsung to decide

what to make and do, why to do it, and how to modernize contextually for over a long term.

Moreover, this strategy involved the interplay between business and design plan. This forms a

logical approach incorporating holistic thinking, research techniques used to notify business

plans, and strategic planning that offers a context for design. This strategy uses social research

techniques to ground results and lessens the threats of any action (Xu & Quaddus, 2013).

Besides, Samsung is one the electronics companies with a huge marketing budget across

the globe. This can be seen in its leadership position regarding market share. Being a
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multinational company, its marketing strategy has played a great role in its success especially in

the western Europe and Asia. In 2013, its marketing budget was approximated to be $363 million

which has declined by 11% over the past two years. This strategy integrates several forms of

events, public relations, personal selling, and advertisements. Media advertising is one of the

most means used by this company in marketing their products and services. One of the major

media advertising campaigns was seen during the launch of Samsung Galaxy S3 cellphone. This

increased its chances to get more customers since many were now aware of the new design and

additional feature of this device (McGrath, 2013). Apart from advertisement, this company also

uses sales promotion as a marketing technique. Samsung company used over $4.5 billion on

sales promotion in 2013 globally.

Due to high demand of quality products, Samsung Electronics company adopted

advanced energy management systems to improve the quality of their products. The energy

management approach was put in conjunction with the new design plan to ensure that its

products can be outstanding in the current market, for instance, people prefer cell phones with

longer battery life and with advanced features. The new design of Samsung products made it one

of the most competitive electronic company since its was able to capture and attracted many

customers. In most cases, quality works best for many people than quantity (Xu & Quaddus,

2013). Due to this, the company established a working group to ensure that Samsung products

are power saver and long lasting regarding energy. Moreover, Samsung provided additional

training of its employees to improves and expose the outside world.

The Classical strategy/approach

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The Samsung Company employed this strategy to achieve lower costs than is

competitors. According to the classical theory, it is perceived that the economy is self-regulating.

Thus theory assumes that the prices of goods and products are flexible and that supply creates

demand. As a result, this strategy can lead to work efficiency as well as achieving the

organizational goals. For instance, Samsung utilized the new design to curb the critics that

revolved around Samsung products. According to Lee, it was now all about quality and nor

quantity. This forced the company to restructure its operations, management, and rules. The

Open HR management system helped the company to welcome and share ideas from its

employees freely without discrimination. Most enterprises that use this management system

usually achieve their goals and objectives due to team work. The lower cost offered this

company to obtain huge profits from its sales and services (Lee, 2006). Notably, companies that

utilize this strategy usually produce or manufacture affordable products with a low level of

diversification.

Besides, the open innovative plan also helped this company thrive as one of the best

across the globe. It emphasizes on a companys effort of collaborating and engaging with

external sources and its associates in its innovation process. The availability of internet and

telecommunication technologies has made change more appealing to many companies. Due to

this, many companies have embraced this strategy to keep them competitive in the market.

Despite its pros, this approach has also led to the collapse of many businesses. Moreover,

Samsung has used the new technology to develop and improve their software and hardware to

meet customers needs. For instance, the company had to improve the software specification

which attracted many users. This approach relies on workers attitude (Besanko, 2010).
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In conclusion, this paper has clearly outlines the key factors that have led to the success

of Samsung Electronics company. The Samsung company has utilized the classical and

evolutionary approach obtain a global competitive advantage. These strategies comprised of

personnel management, marketing and design, development of quality-based management, and

hybrid management system. Due to the critics it faced in the 80s, the company Chairman Lee

decided to focus on quality and not the quantity of the businesss product. This was after he went

to a phone shop and how Samsung products were being ignored due to their design. Since the

new management declaration in 1993, Samsung transformed from being a mediocre OEM

manufacturer to a world class company. Moreover, other strategies such as creation strategy are

very crucial for organizations future. This is because strategies have to be designed to have a

market share. According to Porter, careful analysis of the competitive field can be done using his

five forces model. This model helps companies to select the competitive strategy that will allow

them to accomplish a competitive advantage in the potential market just an s Samsung did.
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References

Lee, D. (2006). Samsung Electronics: The Global Inc. Seoul, Korea: YSM, Inc..

Michell, T. (2010). Samsung Electronics and the struggle for leadership of the electronics

industry. Singapore: Wiley.

De, K. C. A., & Business Expert Press. (2010). Fundamentals of global strategy: A business

model approach. New York, N.Y.] (222 East 46th Street, New York, NY 10017:

Business Expert Press.

Xu, J., & Quaddus, M. A. (2013). Managing information systems: Ten essential topics.

Besanko, D. (2010). Economics of strategy. Hoboken, NJ: John Wiley & Sons.

McGrath, R. G. (2013). The end of competitive advantage: How to keep your strategy moving as

fast as your business. Boston, Mass: Harvard Business Review Press.