Monday, April 1, 2019

Changing business environment of Samsung

Changing clientele environment of SamsungIntroductionSamsung has grown to one of largest electronics go with since 1938. Since 1970s and early 1980s Samsung expanded spherically with diversified plan into core technical bank line. Samsung leads the electronic industry with its exalted carrying into action and with high development roam along with stableness.2009 Global commercialise Sh atomic number 18 of 13 Percentage of different products available in marketplaceplace. Examples - Mobile Phones, Monitors, Semiconductor.1970 First blacken White (Model P-3202) production started Samsung-Sanyo Electronics.1969 SAMSUNG-Sanyo Electronics established (renamed SAMSUNG Electro-Mechanics in March 1975 and merged with SAMSUNG Electronics in March 1977)1951 SAMSUNG Moolsan established (now SAMSUNG Corporation)1938 SAMSUNG was founded in, Korea (Taegu)Company SamsungGlobal Market share is equipment casualty of sales is as followsTV Market Share is 21.9%Laser unseasonedspaperwoma n Share is 13.7%Mobile Phone Share is 16.7%DRAM Share is 30.1%TFT-LCD bloodshed Share is 25.7%If we compare this performance to a nonher(prenominal) companies Samsung emerges as world leader in at least 3 sectors which are TV, DRAM TFT-LCD. This understandably shows us the dominance of Samsung in market and this is mainly delinquent to its absolute policies, positive orgasm and honest efforts in being a spheric leader. This performance data is taken from Samsungs sustainability report for 2009 from Samsung official website.We mountain clearly see that Samsung as a corporation is growing locally and planetaryly Korea being its local market. This consistent growth of the company is mainly due to its marketing strategies which are paying off wellhead(p). More details on Samsungs operations, marketing, product line etc can buoy be found onThe personal credit line environment keeps on changing and is unpredictable. So, it is very necessary to understand and oppose to th is changing business so as to survive and grow in the market.Proper knowledge of business environment will make the entrepreneurs and businesses able decorous to plan and implement strategies that are needed to identify the scope of improvement, throw and exploit opportunities that come on the way, retain stability, gain agonistical return and prepare appropriately for the upcoming challenges. The way the environment is analyzed and whence the strategies implemented, will define the track of the business.Here With the drill of samsung.The data collected will be analysed utilise SWOT. SWOT stands for strengths, weaknesses, opportunities and threats. SWOT analysis, is a strategic business planning scratch used to determine the Strengths, Weaknesses, Opportunities, and Threats that exists in business. It includes identifying the business clinicals as well as the internal and international factors which are likely to save the business. It may be classified intoInternal factor s strengths and weaknesses that are within (internal) organization. outer factors opportunities and threats of external environment.The internal factors can be classified into strengths and weaknesses depending upon their effect on organization and business designs.The factors may include all of the 4Ps as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macro-economic factors like technological , healthy,and socio-cultural changes, as well as changes in the marketplace or competitive position.According to B Kyle SWOT can be identified as internal and external in relation to environment.Strengths It usually tells about the positives of the company. How well we are doing in our area of interest. What is our position in front of enemy?Weaknesses Weakness refers to area of struggle of our company. Why are consumers not sharp about particular product? Why are we not showdown sales target for a particular product.Opportunities I t is directly related to external environment. It could be the areas where your competitor is not hot at. We should try to utilize strengths in areas of our weaknesses. Are there any emerging trends or possibility to allow market by introducing new product?Threats It could be financial or development problem. Competitors strength is major threat. Are competitors becoming strong.Description. strategical business toolsSWOT analysis for SamsungStrengthsStrong hold in Consumer ElectronicsLow delimitation strategy increases salesHighly skilled labour availability locally internationally dandy focus on customer service and good marketing strategyStrong management and loyal employeesWeaknesses pretermit of performance in Laser printer salesLess cost good in PC consumable products.Lack of brand recognition in mobile phone sector.Poor pricing strategyLack of usance of infrastructure in some part of world e.g. ChinaOpportunities seat unseat major stake holders in TV and DRAM sectors gr owing product range in consumer electronicsCan sustain future market using the idea of consumer taste researchRapid growth in competitive markets across the globeIncrease in portfolio due to acquisitions of other firmsThreatsFaces high competition from Sony and Nokia in mobile phone sector.Daily entrants of new technology companiesImpact on sales due to recessionLack of innovation in mobile industry threatens its position further down. overwhelming competition from existing companies in PC sector.The above information which helps in doing the SWOT analysis and other graphical presentation helps to answer our objective questions mostly. Although it might not provide direct answer but clarifies strategies and benefits of presidential term doing global and domestic business. It clearly reveals the benefits of proper marketing in damage of sales numbers.PESTEL AnalysisPESTEL analysis is one of the most burning(prenominal) tool of business strategic management which helps in identifyin g the surroundings within which the company ope judge. It gives a clear idea about the threats, risks and opportunities that occur in the market. It helps in understanding the needs of market, its fluctuations, whether the market is progressing upwards or downwards (i.e. growth decline ratios) and thus makes the businesses able to develop strategies accordingly.PESTEL is used as decisiveness making tools in macro-environment. PESTEL is Classified intoPolitical factorsEconomic factorsSocial factors expert factorsEnvironmental factors profound factorsPolitical factors Its all about intervenes of the government on the economy of the country. Political factors include areas likeTax policy push back justnessEnvironmental lawTrade restrictionTariffsPolitical stabilityServices and goods provide by the government ( merit goods ) and services which is not provided by the government (demerit goods)Goodwill among foreign nationsEconomic factors It includesInterest ratesEconomic growthRate of inflation ( ostentation rate)Rate of Exchange (Exchange rate)For exampleCost of capital is directly affected by interest rateExporting goods and supply of goods is affected by exchange rateInflation raises cost.Social factors Demand of products and company operations are affected by social factors likeCulture of the societyNatality rate developing rateAge distributionTechnological factors It includesResearch and development activity. mechanizationBetter technology for the production of goodsTechnological have direct impingement on costs, quality which leads to innovation.Environmental factors It includesWeatherClimate change locality (Place)Ecofriendly products (to overcome with problem of global warming)e.g Effect of temperature on farming and tourism.Legal Factors It includeConsumer lawEmployment lawHealth and safety lawDiscrimination lawe.g. Minimum wages system in U.K is legal factor that affect business.Minimum age for employment is fixed by the government.Conclusions Re commendationsWe have analysed and gathered data from Samsung Company in relation to our point global versus domestic marketing a critical analysis. The conclusions drawn using company data alone cannot summarize our findings. However there are similarities in few points. If we look at the organisation section we can see how Samsung has come a long way to be prize as a global brand. It shows that achieving such position in global market is very hard. Not only achieving but it becomes increasingly important to sustain that growth due to fierce competition. It shows how companies have to adjust or change their policies from time to time keeping in promontory revolt and falling economy. In general it alerts companies of being more innovative cautious of environmental changes. It also emphasis on limitations one has to face as the behaviour and taste of consumer changes geographically.RecommendationsCompanies should develop marketing strategies keeping in mind its strengths, weaknes ses and availability of resources to be globally successful.Companies should try to develop product which global consumer can identify easily from competitors one.Identify a sector where we can see growth and sustain competition.Companies should appoint special taskforce or pore group people to identify the drawbacks of non performing sector and find solutions to that.To be successful organisations should concentrate mainly on quality and pricing structure.Be in constant touch with customer by means of advertising, shake up releases and make them aware about product specifications and changes if there are any. deform to use both forms of communication verbal and non verbal.SummaryFrom this report on global marketing versus domestic marketing we understand that main objective of any company doing global marketing is to find opportunities. It mainly expands companys work to global customers. This mainly depends on how the company analyses its strengths and opportunities, optimum us age of resources and approach towards business. Here in this report we saw how Samsung as a global company has wide range of products and constantly keeps on adding them to sustain market place. SWOT analysis helped us to understand about positives and negatives of the company. Important issuing of the report about marketing can be converted in one slogan think globally and act locally.ReferencesAaker, Jennifer, Susan Fournier and S. Adam Brasel. (2003). When Good Brands Do Bad. idea presented to the marketing Science Institute Board of Trustees group meeting in Washington, D.C., March 6, 2003.Baker, Malcolm and Greet Sterenberg. (2002). International Branding How to Resolve the Global-Local Dilemma. Market Leader (Autumn).Johansson, Johny K. and Ilkka A. Ronkainen. (2003). The Esteem of Global Brands. Unpublished draft paper, McDonough School of Business, Georgetown University.Klein, Naomi (2000). No Logo. St, Martins Press.Levitt, Theodore. (1983). The Globalization of Markets . Harvard Business Review.Quelch, John, Douglas Holt and Earl Taylor. (2003). Managing the Transnational Brand How Global Perceptions Drive Value. Paper presented at the Harvard Business Schools Globalization of Markets Colloquium (May 28-30, 2003).Upshaw, Lynn and Earl Taylor. (2000). The Masterbrand Mandate. John Wiley Sons.McQuarrie, Edward F, The Market Research toolbox A concise guide for beginners.Bobette Kyle, How Much For Just the Spider? Strategic Website Marketing For Small Budget BusinessWilliam D. Perreault, E. Jerome McCarthy Basic Marketing A Global Managerial Approach Tata Mcgraw-Hill Publishing Co. Ltd 2006.G Armstrong, P Kotler (2003), Marketing An Introduction, Pearson Education Pte. Ltd.Internet referencehttp//www.fao.org/docrep/w5973e/w5973e02.htmhttp//www.cdf.org/issue_journal/samsungs_lessons_in_design.htmlSustainability subject area online from http//www.samsung.com/uk/aboutsamsung/citizenship/oursustainabilityreports.html Accessed 22nd August 2009http//i vythesis.typepad.com/term_paper_topics/2009/08/global-marketing-versus-domestic-marketing-a-critical-evaluation.htmlhttp//business.lovetoknow.com/wiki/Global_and_Domestic_MarketingRefrencesSustainability Report online from http//www.samsung.com/uk/aboutsamsung/citizenship/oursustainabilityreports.html Accessed 12 March 2010.

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