Many of these goals include innovation, because of this Samsung has devoted mass amounts of resources for research, Samsung has research centers in Moscow, America, India and many more countries around the world.
Change Slide Samsung have expanded in many other countries with life insurance, machinery, heavy industries and chemical industries. Samsung has many affiliated companies such as Samsung medical care, Cheil industries and others.
Change Slide Samsung is at the final stage of its life cycle; it has reached the post maturity stage. The company is faced with three possible outcomes; Decline
Steady State Or Renewal
Samsung recently released a new smartphone that is now the biggest phone competitor with apple, Samsung has developed the most innovated TV’s (digital, slim, HD), solar powered phones, leading home appliances and has developed technology that has changed the way we interact dramatically.
This is all proof that Samsung has chosen the Renewal option, the time and dedication that Samsung has put into all of these products has shown with an incredible amount of sales.
Change Slide Samsung’s internal influences comprise of a number of things, they include; Product influences: The products produced by Samsung are all top of the line and are all user friendly. Samsung prides itself on the fact that the technology they are releasing are all top of the line and the best that anyone can get. Like I mentioned before Samsung requires a lot of research to continue thriving in the market today, this research shows with new amazing technologies such as flexible screens and better, faster processing.
Location influences: Samsung is a wholesaler company, and therefore does not need locations that are easily accessible by customers. Samsung’s operation center in Sydney is located in the CBD where they can show their presence while going on with their work, the factories operate in less dense areas all over the world (in areas like china etc.)
Management influences: Samsung is governed by an independent board of directors who are dedicated to serving Samsung with integrity and transparency. The vice chairman and CEO of the company is Dr. Kwon; Samsung operates with managers of the different sectors who then provide reports for the CEO and other heads of management in the company. For example; The management of Phone development will guide that sector to be the best that it can be and meet the goals that management has set for them, once they are finished the results will then be shown to the heads office (CEO etc.)
Resource management influence: Samsung operates factories and research centers all over the world, their research centers are incredibly affective and their factories provide them with a huge amount off assets (all the equipment and materials used to build there devices). Samsung is worth
billions of dollars, and because of this their financial resources provide a massive safety net around the company.
Human resources is an area that Samsung can benefit from doing better in, with numerous reports fluctuating that their labor force in china is having problems with abuse and bad working conditions
Business culture influences: Samsung’s philosophy is to devote their talent and technology to creating superior products and services that contribute to a better global society. As I said before, Samsung has 5 main values that they run their business by; People
Change Slide There are also many external factors that influence the company, they include; Economic influences: the economy has a huge affect on Samsung in many different ways, in a recession or bust Samsung can be negatively impacted upon, more so than other companies. This is because Samsung manufactures luxury products that are relatively expensive, this means that during a recession it is not likely that people are going to purchase their products because they are focusing on buying or paying more important things such as groceries and rent. Consumer confidence and interest rates can also affect the company in areas like sales. Samsung went through huge losses during the GFC, Samsung has to prepare for the worst and be ready for the next recession
Social influences: Social trends and customer preferences influence what Samsung research and manufacture. When the social trends for entertainment included 3D TV’s Samsung spent an enormous amount of resources on manufacturing new and improved 3D entertainment. Another example of this is when apple released the iPhone, Samsung saw that the public was interested by this product and what it had to offer, Samsung immediately began to start manufacturing its own product that could tend to this social trend and customer preference.
Legal influences: Samsung operates in many areas overseas, they have an extremely big workforce and because of that they have to follow many legislations from the country Samsung is operating in. The legislation would include worker rights, health standards, taxation, safety regulations in their factories etc. Samsung was recently caught out for not having safe working spaces in their factories, they need to improve the quality of the work spaces immediately to avoid any more bad media
Political influences: political influences are probably one of the biggest external influences, politicians are constantly trying to gain more votes, and most of the time the issues that politicians deal with include businesses. The decisions that politicians make can sometimes affect a business, for example Taxation
Carbon Taxing Emissions trading scheme Social reforms (such as Maternity leave etc.) Labor Market Reforms which has to do with employee wages
Competitor Influences: Because Samsung manufactures such a broad range of products it is hard to pick specific companies that are the biggest competitors. Companies like apple, Sony and LG are company brands that arise in all or most of Samsung’s product categories. Samsung has been heavily influenced by apple, releasing new phones and computers based on their designs and ideas because that is what the current market demands
Change Slide Samsung is a public company; it is listen on the Seoul, London and Luxemburg stock exchanges. Samsung Electronics was incorporated in 1969 as Samsung Electronics Manufacturing, and was listen on the Korean Stock Exchange on June 11th 1975; in 1984 the company renamed itself as Samsung electronics
Samsung choice to become a public company could have been influenced by many things, before the company went public their name was slowly being built, some of the advantages of going public included the option to expand rapidly due to an increase in profits from the shares. Once Samsung had these products the research started to become much more sufficient and relative and allowed Samsung to manufacture products that the public would be interested in.
Going public expands the company faster than it does by growing it without listing it on the stock exchange. The money received from the float of the company may have also been used to repay debts that the company had due to its expensive research, infrastructure and resources needed to manufacture their products.
Change Slide Although Samsung is a big, strong business, there are many small things that could unite to potentially lower the company’s profits. They include;
Lack of communication with the public: Technology is heavily influenced by social trends, and it is very easy to go very wrong with technology. If Samsung wants to continue to grow they will need to stay in constant contact with the public, and they will need to know exactly what the public will like and respond to Samsung needs to continue to position itself as the company that always offers something new and improved. If they fail to release new products that keep up with social trends it could have a negative impact on their brand image because they need everything they have to fight big companies like apple.
Marketing and keeping up with new technology: Samsung needs to advertise more to show the public their new technologies; this is crucial because of the volume that other companies advertise. Samsung has done the research and produced the product, but they need to continue to advertise their product to raise awareness within the public. Samsung might potentially loose customers if their technology is not up to date and current, they need to continue advancing and they need to be known as the company that is leading the way for new technology.
A Recession: During recessions, as I mentioned before, Samsung will have a hard time continuing to profit. Samsung’s expertise involves luxury products, products that people enjoy buying with extra funds. None of their products are necessities and because of this Samsung will struggle, during these hard times people will chose to purchase or pay for necessities such as groceries, rent and bills over buying a new TV. Samsung needs to position itself to withstand another recession in case past events reoccur.
Debt: If Samsung launches a product that fails it could be in huge financial trouble. This is because Samsung invests huge amounts of resources into researching and manufacturing new products, if that product fails Samsung would have lost mass amounts of resources that could send the company into a spiral of debt.
Human resources and public image: Recently Samsung has had a fall out with their public image; news articles have spread accusing Samsung of mistreating and abusing their factory workers. Samsung has been reported and has been in the spotlight lately for mistreating workers, this could potentially be devastating for the company, as we have seen before, and companies like Nike have gone through extreme rough patches because of scandals like this. If more stories like these are released Samsung has a high possibility of losing many customers to other competing brands.
Change Slide Some things Samsung can do to improve their current productiveness and public image are as follows;
Add Campaigns –companies like apple spend huge amounts on advertising, they do this because it sells and Samsung needs to follow apples lead and invest in this valuable resource Improving their factory standards and showing the rest of the world Public announcements of improvements to factories and worker conditions Publicly announcing new technologies to show the world that they are leading in innovation Hosting events/sponsoring events to raise brand recognition Fundraising for charities/community work again to raise brand recognition Samsung needs to implement plans to recover loss, they need to spread the risk with many products and they need to get the publics opinion on products before they release them. Opening Samsung electronics stores similar to apple to avoid the middle man, this is shown very successful results with apple and may be a good area for Samsung to look into
Change Slide Samsung recently introduced a new marketing campaign for their new phone the Samsung galaxy. This was an extremely enjoyable and effective add, the add included people waiting in the iPhone line for the whole night but were more interested with the people using the Samsung Galaxy and listening to what it had to offer than getting the phone. It is smart marketing like this that will give the company that boost to compete with other big companies.
Samsung is an innovative and prominent business in the electronic industry that offers a very wide range of products. Samsung is one of the largest companies today and continues to grow with new technology. Samsung is currently competing with other companies, although it would be very interesting to see the company take a turn and create a product that is new to itself and can create an edge for themselves, similar to what Nokia did (changing their ideology to being a phone used for business), Samsung can go in many directions, we just have to wait and see which it chooses.