1       
Introduction

This report is based on the Strategic Analysis of Samsung
Electronics Co. Ltd. The information and data used to write this report was
obtained from Samsung’s website with academic support from text books,
scholarly articles and journals. The report focuses on PEST, Porter’s Five
Forces, VRIO, Value Chain Analysis, and SWOT analysis of Samsung. The aim is to
identify a key external factor impacting on Samsung’s strategic positioning and
its ability to sustain competitive advantage.

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1.1     
Company Overview

Samsung Electronics Co. was
established in 1969 as home appliances manufacturer. It is a subsidiary
of Samsung Group. The parent company was founded by Lee Byung-Chull as a small
trading company in 1938. Over the years, Samsung Electronics has evolved and
become the world’s leading consumer electronics manufacturer. Samsung is a
South Korean company. The company employs more
than 200,000 people and have 205 offices across 71 countries.

Here onward Samsung Electronics Co is referred to as
Samsung, unless stated otherwise.

1.2     
Strategic
Position

Strategic positioning is how
a firm positions itself against their competitors. Porter’s Generic Strategies
framework is used to illustrate Samsung’s strategic position.

“Strategic positioning
attempts
to achieve sustainable competitive advantage by preserving what is distinctive
about 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 global
level in the electronics industry. Samsung has positioned itself as a leader in
innovation by leveraging its technological expertise in other business segments
and become a pioneer in the industry. The company has invested heavily in
R&D, which helps them in pursuing disruptive innovation and creating values
for their customers. The company operates two types of strategies – cost
leadership and differentiation. Because Samsung produces most of the components
used in their products, this allows them to offer a lower price products to
their customers. In terms of differentiation, the company concentrates on
offering quality and innovative products to their customers. Customers are
willing to pay to pay more if they perceive products of high quality and
superior performance

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