1 IntroductionThis report is based on the Strategic Analysis of SamsungElectronics Co. Ltd. The information and data used to write this report wasobtained from Samsung’s website with academic support from text books,scholarly articles and journals. The report focuses on PEST, Porter’s FiveForces, VRIO, Value Chain Analysis, and SWOT analysis of Samsung.
The aim is toidentify a key external factor impacting on Samsung’s strategic positioning andits ability to sustain competitive advantage.1.1 Company OverviewSamsung Electronics Co. wasestablished in 1969 as home appliances manufacturer.
It is a subsidiaryof Samsung Group. The parent company was founded by Lee Byung-Chull as a smalltrading company in 1938. Over the years, Samsung Electronics has evolved andbecome the world’s leading consumer electronics manufacturer. Samsung is aSouth Korean company. The company employs morethan 200,000 people and have 205 offices across 71 countries.Here onward Samsung Electronics Co is referred to asSamsung, unless stated otherwise.1.2 StrategicPositionStrategic positioning is howa firm positions itself against their competitors.
Porter’s Generic Strategiesframework is used to illustrate Samsung’s strategic position. “Strategic positioningattemptsto achieve sustainable competitive advantage by preserving what is distinctiveabout a company. It means performing different activities from rivals,or performing similar activities in different ways.” – (Porter 1996) Samsung has become an important player at a globallevel in the electronics industry. Samsung has positioned itself as a leader ininnovation by leveraging its technological expertise in other business segmentsand become a pioneer in the industry. The company has invested heavily inR&D, which helps them in pursuing disruptive innovation and creating valuesfor their customers. The company operates two types of strategies – costleadership and differentiation.
Because Samsung produces most of the componentsused in their products, this allows them to offer a lower price products totheir customers. In terms of differentiation, the company concentrates onoffering quality and innovative products to their customers. Customers arewilling to pay to pay more if they perceive products of high quality andsuperior performance