Samsung electronics designs and develops a variety of products such as mobile phones, chips, TV screens, and Laptops among other household consumer electronics. The organization ventured into this industry in the late 1960s and has since diversified its product offering to the extent of becoming the world’s largest semi-conductors and chips manufacturer (Jung, 2014). This industry targets various market segments both in developed countries as well as developing countries in Asia and Africa as well as the Caribbean. Unlike Apple its closest competitor that designs and develops products targeting the high end market, Samsung builds products that can penetrate high end as well as low end markets. In this regard, it can be stated that Samsung’s customers arise from nearly all market segments (Jung, 2014). For instance, it builds cheap mobile phones that penetrate low end markets and also builds mobile phones for the high end markets such as Samsung Galaxy Note 8.
Performing a SWOTT analysis on the company reveals a number of aspects as follows. Its Strengths are; has a strong brand in the market, has diverse resource at its disposal, has well established distribution systems, ability to invest in research and development, ability to design and develop diverse products, and ability to create products that are open source (Jung, 2014). Second, weaknesses are; designs a range of products and hence failure to design and build unique and superior products, it lacks its own operating system and hence must outsource such software, is experiencing low profit margin due to stiff competition, has hierarchical leadership which limits diversity in decision-making, limited innovation in software, and overreliance on business partners in product development (Jung, 2014). Third, the opportunities are; it has the ability to obtain patents through acquisitions, can partner with software companies to improve innovation, there is a growing smart phone market in Asia and Africa as well as the Caribbean, can offer more third-party content as a strategic plan, and due to growing technology and companies there is a growing demand for chips and semi-conductors (Jung, 2014). Finally, threats as follows; developed countries have a saturated smart phone market, there are emerging companies that are offering smart phones at a lower price, there is rapid technological change and hence rapid innovation must be sustained, its patents are likely to be breached, and political instability in some regions have been affecting performance.
Samsung’s mission statement is,” To devote our talent and technology to creating superior products and services that contribute to a better global society” (Jung, 2014). The statement encompasses customers, products/services, market, competencies, and measurability. It focuses on creating superior products and services for the customers. The products and services created will be superior as talent and technology will be deployed in the design and development process. The statement also states that the organization targets individuals who are utilize consumer electronics. Finally, its core competencies entail devoting talent and technology while measurability entailed making a better global society.
The newest revised mission is, “Inspire the world with our innovative technologies, products and designs that enrich peoples’ lives and contribute to social prosperity by creating a new future” (About Us, 2017). From the new statement, there are a few aspects that can be deduced. First, the company is aiming at creating products that are able to enrich people’s lives. This means that the organization does not only aim at creation of products that are innovative and unique but also products that are able to enrich customers’ lives. It can be seen that the organization has not shifted its focus as it still focuses on consumers of technology both locally and internationally. On the other hand, it is imperative to point out that the new mission statement has been driven by the changing market conditions especially in line with customers’ expectations. It has been established that consumers are looking for products that have more innovative software that will enable enrich their daily lives.
Samsung is a global corporation at the heart of South Korea’s economy. However, rapid technological changes and emergence of new market players have led to its stagnating profitability especially in the consumer electronics market. Consumers need products that can enrich their lives and hence innovation needs to be sustained along that line. The organization has a strong brand that can be exploited in reaching out for additional markets especially in emerging economies such as China and India. In order to do so, the company must remain true to its mission statement, which primarily aims at creation of products that are able to enrich lives.
References
About Us. (2017, November 22). Retrieved February 3, 2018 from http://www.samsung.com/uk/aboutsamsung/vision/vision2020/
Jung, S. C. (2014). The Analysis of Strategic Management of Samsung Electronics Company through the Generic Value Chain Model. International Journal of Software Engineering and Its Applications, 133-141.
Perreault, W., Jr., Cannon, J., McCarthy, E. J. (01/2016). Essentials of Marketing,
15th Edition. [South University]. Retrieved February 3, 2018 from
https://digitalbookshelf.southuniversity.edu/#/books/1260003655/cfi/6/64!/4/238@0:0
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