There are three types of competitive advantage. Besides its remarkable innovative designs alongside the impressive media content and apps, the unadulterated consumer appeal for Apples products and services has propelled the company to the status of most valuable brand surpassing Coca Cola in the Omnicom, Final Exam: Section A, Question 1: Introduction: General Background information + Thesis: what makes those companies not alike are the phones they release through the years, but are they that different? This was accomplished through financial support, plant advancement, technology development, and human resource development (Lee, Lee and Heo, 2015, p. 5). For example, initially Samsung focused more on volume and domination on market rather than increasing profitability. 1.3 Explain Samsung Electronics different planning techniques.7-10 For example, the companys smartphones operating-system functions and related licenses are restricted because of Googles licensing of Android. This strength is an internal factor that supports Samsungs ability to grow and expand against competitors. Another crucial challenge was associated with particular products, Samsungs high-end flagship product Galaxy S6, which failed to gain the sought revenue. 1. Thus, core competencies are, company. 1.1. These internal factors relate to market demand and related supply chains, especially those linked to consumer electronics, which is the main source of the companys revenues. Capturing the opportunities shown in this SWOT analysis helps the company remain a major competitor in the international market. In 2015, Samsung engaged 325, 677 employees in 80 countries, with 6 design, 34 R&D (research and development), 38 production, and 53 sales & distribution centres with the key location across the world (Razdan, 2017). What are the two types of core competencies that drive a firms competitive advantage? Making SWOT analysis work. The two core competencies that drive a firms competitive advantage are cost leadership and differentiation. The company currently produces more than a hundred products of numerous varieties and models and involves operational branches in approximately 79 countries (Knpfle, 2016.). Samsung cell phones found its way into American hands for the first time in 1996, when they, partnered with Sprint on a line of sleek and compact phones. Concerning the relationship-building process in HR, Samsung Electronics CEOs visit suppliers regularly to take into account their problems (Samsung Electronics sustainability report, 2019). First is the value criteria. Furthermore, its key competence implies the brand value of Samsung as a superior company, with a valuation of US$ 51.81 million and 7th position at the world level in 2016. Thus a core competence. Course Hero is not sponsored or endorsed by any college or university. Are you in need of assignment help? Outstanding customer service + + + + Sustainable competitive advantage, When a company is competing through its differentiation advantage; it would try to carry out its activities in a much better manner than the, According to Barney (1991), a firm can be said to possess competitive advantage when it achieves superior performance over its competitors by implementing a value-creating strategy that is not simultaneously being implemented by a competitor. As the organization grows, develops and adapts to the new environment, so core competencies also adjust and change. Considering such a critical starting point for this strategy, the Korean multinational corporation effectively handled its management innovation process due to internal innovation and partnership with sub-contractors. Under the resources-based view of strategic management, effective resources available to a firm, as well as the competency of a firm is responsible in affecting competitive advantage received by a firm. Financial support regarding the companys strategic management consists precisely of development fund, co-prosperity fund, and cash payment to ensure suppliers liquidity (Lee et al., 2015, p. 5). Blackberry provided high secured platforms for governments especially in North America. Background Competency-oriented medical education has become a global trend. With the help of ambitious, focused, and long-term corporate initiatives, Samsung became the world leader in various technology segments. Supply chain and distribution efficiencies. See Page 1. 7 c) Focus strategy is a focused approach requires the firm to concentrate along one specific segment either a cost leadership or a specialization strategy. When considering the strategy as a design approach, it is based upon two critical assumptions in terms of the managers work responsibilities. This is achieved through change of business strategies to those which enable the firm become competitive through exploitation of core competencies in the individual products and services. Required fields are marked *. As reported by multiple researchers, Samsung Electronics is notable for using such essential resources very effectively. The four core competencies are capabilities that are valuable, rare, costly to intimidate and non-substitutable. The minimum requirement to be an academic writer with our assignment help service is to have a college bachelors degree. With that said, Samsung Electronics innovation impulse reached a well-balanced arrangement of philosophy, conditions, and strategy for the past twenty years. 1-12. This includes managing the companys resources, such as a change in commodity prices and technology deposits. Having been started in 1938 as a Korean export business, it has grown to be one of the leading multinationals. visions, objectives, goals, core competencies.2-4 Barney differentiates simple competitive advantage from sustainable competitive advantage, which is more durable because existing or future competitors cannot duplicate the benefits of the companys strategy. If Samsung had not adopted android, it would have become obsolete like Nokia. The VRIN/VRIO analysis is a strategic tool that is used for the assessing and evaluating the resources of a company, and determining its strategic advantage, and competitiveness. What forms of pay. As such, the potential set of critical resources that the company obtains, including human resources, technology, marketing manufacturing, and design departments, dramatically increased their significance as competitive resources, more than ever before. Custom Samsung External and Internal Environment Analysis essay writing service. Exploring SWOT analysiswhere are we now? However, Samsungs weaknesses are barriers and challenges that require strategic solutions. (2015) Supplier partnership strategy and global competitiveness: a case of Samsung Electronics, Eurasian Journal of Business and Management, 3(4), pp. The market leaders share in this sector comprises not more than 20%. Are you tired and can barely handle your assignment? The organization capitalizes on these strengths to bring Samsungs mission statement and vision statement into fruition. These weaknesses impose limits on the long-term success of the companys semiconductors and consumer electronics business. Though effort has been put to up the competitive advantage, more is still required. Samsungs generic strategy for competitive advantage and intensive strategies for growth can be seen as responses to the internal and external strategic factors discussed in this SWOT analysis of the enterprise and its multinational industry environment. Samsung's Competitive Analysis 5.1 Competitive Analysis on Samsung 5.2 Innovations as the Essence of Sustainable Development 5.3 International Production Capabilities 6. Moreover, the validated supplier partnership strategy and its systematic practice helped the organisation achieve common growth in the global market with the corporate partners. What policy regarding external competitiveness would you advise? Mycon General Contractors, Inc. Apr 2001 - Apr 20043 years 1 month. This SWOT analysis also emphasizes Samsungs weakness of the lack of a competitive comprehensive platform similar to Apples. Starting as an analogue-driven product line, the company became a universal leader in technological innovation. Samsung Electronics holds Eco-Council and working-level committees, whereby environmental experts and managers gather to share ideas about technological and regulatory trends for developing highly energy-efficient products. The Starbucks Value Chain Therefore, compensation and promotion are openly distinguished according to the individuals skills set. The history and the competitive advantage. These competitors have strong industry positions and organizational resources and capabilities to erode Samsungs market share. Such an open approach to human resource management indicates respect to the autonomy and creativity of employees, as well as excluding any obstacles in systems and practices to improve the efficiency and competitiveness of the workforce. 56-63. III. One should also mention that the application of the Android operating system is considered both comparative advantage and disadvantage, which is the most popular customizable OS worldwide. This implies that companies in this sector have to put major investments into R&D and launch new products permanently. (2023, January 10). Also, Costco has strong financial resources that, Core Competencies Samsung provided tremendous resources, The core competencies of any firm is to satisfy the customer needs and preferences so that it can gain more returns. To reach such international recognition and become a leading multinational manufacturer, the company employs and enhances its key resources that help achieve successful strategic business outcomes. Essay 2 However, the core elements of strategic management differ according to the scope of the business, the target audience, location, strategy, financial budget, and human resources. Overview of the essay By 1960s Samsung entered in to electronics industry and shipping and construction in 1970s. Breakdown of Task 1: Eastern Provincial University Using the point method, develop a job evaluation system for the "Eastern Provincial University" case using the maximum number of points set at 1000. The code ensures that there is gender equality in the company, business information is disclosed in a transparent manner and partner collaboration is done. Samsungs strategic opportunities in the international market are as follows: This SWOT analysis considers strategic partnerships with software developers as an opportunity to grow Samsungs revenues, considering the companys design, development, and manufacturing capabilities. Therefore, for the more comprehensive view on the strategic development and management of an organisation, the large international company, Samsung Electronics Co. Ltd, is chosen for the following in-depth strategic analysis. Samsung is one of the companies that followed the strategy of design in order to achieve competitive advantage. Improving quality assurance, research, and design all the while giving the consumer a better image of the company should increase Samsungs market share. According to Jang et al. Competitive advantage is when two or more firms compete within the same markets, one firm possess a competitive advantage over its rival when it earns (or has potential to earn) a persistently higher rate of profit. List the options and the pros and cons of each policy option. Strategic Analysis of Samsung Electronics Co. Ltd, custom Strategic Analysis of Samsung Electronics Co. Ltd, Wakame Restaurant Case: Key Business Points, The Walt Disney Companys Marketing Transformations, Joint Ventures in India: Learning From McDonalds Experience by Dunseith, Operation Managment About Sony, Determining Customer Needs, Organizational Behavior and Culture in Emirates Airline, Apple Companys Responsibilities and Strategies, EasyJet Airline Company Change Management, Air Arabia Case Study: Strategy, CRM, & Competitors, Business Management: Analysis of Proctor & Gamble, Comparing Performance of Eog Resources Inc. And Advantage and Gas Company Using Financial Ratios, Adidas Shoes: Situation Analysis, Future Strategies, Apples Music Streaming Service Future Strategies, Business Strategy Analysis: Emirates Airlines, Apple: History, Products, Marketing, Financial Profile, A fifty-year journey towards a sustainable future, role of governments and the use of political influence for multinational companies like Samsung, establishing a production base in countries to get favourable tariffs and excise duty exemptions, politics determine how the business is managed and led by its officials, Samsung company both lost and made use of the manipulation of political unrest, the support of two competing political parties in South Korea jeopardized the companys reputation; however, it did not impact the situation in western countries, the company expanded its global image due to setting up new markets in the developed world, the economic decline in this region caused Samsung to create new profitable projects in emerging markets, consumer electronic products decreased in lifespan as a result of the accelerated technology obsolescence, companies should estimate new products at a high price to reach the breakeven point quickly, consumers in developed countries are a target audience that can afford new electronic devices, the effective business strategy implemented by Samsung implied the consumers reduction of income in the industrialized sector, the current economic downturn caused by the COVID-19 pandemic requires new approaches to alleviate its negative impact on business, changes in consumer lifecycle as a result of modern fast-growing and evolving society, the increased impulse of buying new products, specific factors of multinational operations adhere to local circumstances, new products and services that Samsung offers must meet the evolving customer preferences in particular countries, Samsung operates within sector-driven-by-consumer lifestyle preferences, reliance on the market dynamism in terms of the companys capabilities, the electronics sector is defined by technological innovation that requires the company to make considerable investments in production technology and R&D, current items need to be continuously upgraded since technology is Samsungs main feature, the company faced a critical production project error with Samsung Galaxy Note 7 resulted in exploding cell phones after launching in 2016, increased focus on climate change that promoted eco-announcements from firms in electronics and computing, adapting eco-friendly materials and systems in manufacturing products that serve as a strong competitive advantage, a conscientious customer demands Samsung is mindful of providing the products that satisfy the modern customer politically correct, preventing from undermining the working standards or the employees salaries that are engaged in the development of the final product, the industry is highly dependent on technological advances, which incorporates the critical issue of IP (intellectual property), product safety concerns have a significant impact on the companys reputation and affect product sales rate, copying or limitation by market competitors: Samsung addressed heavy fines for the copying of Apples iPad and iPhone, the company lost the majority of the legal proceedings to Apple, the company has a high brand reputation with an international presence, integrated research and development capabilities adhere to high standards, solid research and development (R&D) expenditure, one of the strongest patent portfolios amidst technology organisations, product innovation and design competencies, product design based in Korea and production in China, products cost is high as compared to domestic competitors, the rapidly expanding notebook industry and smart home market, families as the target consumer in the TVs segment, Samsung entered the Chinese markets that are expected to grow over 40%, which is higher compared to the international speed 13% (Omer, 2019, p, 58), governments support that serves as the largest customer within the industry, enhanced, more rigorous competition in the industry, specifically from the low-cost companies, such as Huawei and Xiaomi, specific components regularly face supplying constraints, outsourcing companies objective into market, the predominant position of Apple Company in North America. 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