minimization and 4 increasing sales through market penetration and market development.
With this Samsung can surpass and survive and live with its vision Inspire the World, Create the Future” through “New Technology,” “Innovative Products,”
and “Creative Solutions.
II. STATEMENT OF THE PROBLEM
Jong Yong Yun’s strategy to focus on higher end products has clearly enhanced the firm’s brand image and lead to a sharp increase in its revenues
and profits. But accordingly, they have failed to address serious questions about Samsung’s ability to rely exclusively on its hardware to continue to generate
high margins. More so, the life cycle of most electronic products are short with prices tending to drop sharply over time. With this matter and considerations,
this study will answer the following questions:
1. What are Samsung’s competitive advantages over its competitors? 2. What are the ways to reduced Samsung’s cost in order to be competitive
with lower margin products? 3. How will Samsung deal with the recovery of research and development
costs in incurred in producing electronic products with short life cycle and prices that drop sharply over time?
III. STATEMENT OF OBJECTIVES
This study aims: 1. to determine what are the competitive advantage of Samsung over
electronic industry and other industry it competes; 2. to identify the ways to reduced Samsung’s cost in order to be competitive
with lower margin products; 3. to know the ways on how will Samsung deal with the recovery of research
and development costs in incurred in producing electronic products with short life cycle and prices that drop sharply over time
IV. AREAS OF CONSIDERATION
As part of assessing Samsung’s competitive advantage among its competitors and determining its future course of action to take as part of its
strategic management process, we will take into consideration its internal strength and weaknesses as well as the external opportunities and threats.
The internal strengths include but are not limited to:
1. continue growing of market share 2. well diversified and differentiated products
3. team product designers and engineers that continues to develop designs of Samsung’s new products
4. Samsung’s rigid seniority-based system replaced with a merit-based system
5. advertising on 55 different advertising agencies around the world and placed them in one firm
The internal weaknesses include but are not limited to: 1. increasing competition as it develops innovative products
2. high investment on research and development 3. focus on mass market instead of niche market
The external opportunities include but are not limited to: 1. high and strong consumer demand for innovative products
2. increasing on electronics consumer markets 3. Young population as a means of expansion of market in present and future
The external threats include but are not limited to: 1. bureaucratic obstacles
2. low-cost Chinese producers 3. sustainability of products in technology industry
V. ALTERNATIVE COURSES OF ACTION
