Samsung's Strengths (Internal Strategic Factors) Business strengths are internal strategic factors that, in this SWOT analysis, refer to competencies, resources, and capabilities that support the company's value chain, as well as growth and profitability of the semiconductors, consumer electronics, and technology solutions businesses. According to this article core competencies involve many different people on many different levels. Organizational capabilities are generally a result of organizational system, processes and control mechanisms. The, Core competency is a unique skill or technology that creates a distinct value for customers. Recommendations and. . These include: I Need Help With A Freedom Essay 2 3 Pages, Your email address will not be published. Thus, a strategic leader takes a dominating position over the strategy development process. Competitors are trying hard to enter this market. The company spends over 9 per cent of its global spends in R&D every year. -Competitive advantage is going to detailing a methodology that empowers an association to endeavor to contend with different associations with in its industry or division, based after recognizing potential feasible wellsprings of upper hand accessible to it. In addressing the issues identified in this SWOT analysis, the corporation can expect a continuously strong industry position, and possible mitigation of the effects of competition, imitation, and other strategic issues. This essay critically analyses the link between a firm's core competencies and achievement of competitive advantage. In relation, this SWOT analysis points to the lack of a competitive platform to rival Apples ecosystem of hardware, software, and services. Having been started in 1938 as a Korean export business, it has grown to be one of the leading multinationals. Capturing the opportunities shown in this SWOT analysis helps the company remain a major competitor in the international market. 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. Within international market research, Knpfle (2016) defines the main reasons for how Samsung adds value to its marketing process. Co-prosperity 8 Get Your Custom Essay on, An Analysis of Samsung company using Core Competencies, Western world who lived between the beginning of recorded history and the mid-18th century. Munich: GRIN Verlag. They have achieved such a success based on the way they have organized their operations. In a simple explanation, core competence is the combination of specific skill and production techniques that distinguish the firm in the market place. (2019) Planting and harvesting innovation an analysis of Samsung Electronics, International Journal of Quality Innovation, 5(7), pp. Business Objectives. It is recommended that Samsung use the previously mentioned partnerships or develop its own platform to target certain services that could open new opportunities for growing its business. It is considered the impetus to autonomously increase energy and speed up the growth, which contributes to the reduction in using the resources and achieving high profit. Expertise in building quality products at low cost. Furthermore, Samsung needs to follow the ongoing process of planting innovation by fresh thinking, creative ideas, scientific progress, and new technologies. They can also be used at a personal level to develop your own skills to help you to advance your career. 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). Samsung utilizes the innovations to develop technological utilities and the creative impacts. The payment is, thus, based on employees performance and performance-based promotion. A. A core competence can be identified as a unique set of skills or production techniques that deliver a particular value to the customer. 1-12. Companies can determine their future business directions based on the strengths of competencies. These are intangible in nature. As a result, the improved HR promoted a new management system through capital accumulation in human resources, and it also changed the awareness and actions of employees. 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. Razdan (2017, p. 5) determines the critical success factors that facilitate these main requirements, including low cost of production, investment in production facilities, high investment in R&D, and availability of talent. The Samsung Companys competitive advantages are based on RBV analysis conducted by Razdan (2017, Fig. First, they include technology research and product development capability encompassing 34 research and design centres throughout the world. Samsung has grown into a global information technology leader, managing more than 200 subsidiaries around the world. There are three types of competitive advantage. However, the increasing competitive factors require the corporation to focus on the development of new business strategies to maintain its dominant position. example of two leading rival companies in the field of smart phones Samsung's corporate culture focuses on achieving a high degree of technological innovation involving human resource development strategies. Also, Costco has strong financial resources that, Core Competencies This strength is an internal factor that supports Samsungs ability to grow and expand against competitors. As this SWOT analysis indicates, the company possesses core competencies for capturing a bigger market share, increasing sales revenues, and growing the technology business operations. The superior corporations or the alternative cheaper technology companies pose a potential threat and, thus, encourage the Korean brand to maintain the ongoing development and focus on product innovations. SWOT analysis from a resource-based view. Excellence: Samsung makes sure to provide their customers with excellent products and services. I. "Strategic Analysis of Samsung Electronics Co. Ltd." BusinessEssay, 10 Jan. 2023, business-essay.com/strategic-analysis-of-samsung-electronics-co-ltd/. Web. Samsung Electronics adopts open management in the context of the personnel management system. Samsung Electronics sustainability report: A fifty-year journey towards a sustainable future. Samsung Electronics also remodelled its procurement process team into a partner collaboration department that was expanded to a partner collaboration centre in 2011 (Lee, Lee and Heo, 2015, p. 6). Advantages Of Samsung Competitive Advantage. 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. (2) Samsung has been trying to promote its dubbed Knox enterprise solution. The internal factors in this aspect of the SWOT analysis are used in the enterprises strategies for growth and to compete in the saturated global market for consumer electronics. Analysis of Internal Environment: SWOT Analysis. Which firms have demonstrated sustainable sources of competitive advantage? By taking a leading position in the global market, Samsung proves its fundamental role and impact on the modern technology-oriented consumer. Samsungs key strategy to address such critical challenges is based on promoting revenue growth by implementing a double-digit margin in the mobile sector. As the organization grows, develops and adapts to the new environment, so core competencies also adjust and change. Introduction: General Background information + Thesis: what makes those companies not alike are the phones they release through the years, but are they that different? The first reason implies that the company makes considerable investments in research and development, which promotes the release of a new phone annually. Also use a SWOT analysis or a resource, i need answer for this question please. CASE 2 NORTHERN SOFTWARE: what forms of pay would you recommend?again offer your rationale? 2/17/2017: Application of core competencies relative to ethics of data security, cloud computing technology, cost consideration, timeline, data utilization, risks and licensing were discussed with good details. In performing an internal analysis, it is important to have a 'global mind-set', which is the ability to analyse the internal environment in ways that are independent on the assumptions of a single country, culture, or context. For example, the companys smartphones operating-system functions and related licenses are restricted because of Googles licensing of Android. The following are the main threats that affect Samsung: Competition is the most significant threat relevant in this SWOT analysis of Samsung. Core competencies of a firm can be described as the collective skills and proficiencies which enable a corporate to meet desirable set targets purposely for the satisfaction of consumers. VALUABLE 2/17/2017: Core competencies that were developed are noted. Task 2: Northern Software Questions (30 marks) What policy regarding external competitiveness would you advise? This strategic action is achieved by rationalizing the smartphone product portfolio, capitalizing on smartphone demand, and enhancing competitive advantage through software, hardware, services, and wearable items along with the companys smartphones. Apart from the examined resources owned by the company, including talent and investments, there is another critical factor that defines a companys success, such as the companys core competencies. and Japan were enjoying the high-end design of Samsung Mobile phones. Your email address will not be published. (2023) 'Strategic Analysis of Samsung Electronics Co. Ltd'. Course Hero is not sponsored or endorsed by any college or university. However, most current studies focus on the independent effects of various competencies and lack an examination of the combined effects. They follow five core values including: Core competencies are concepts that are enhanced as they are used; unlike physical assets of the company that become outdated with time and deteriorate core competencies develop as they are shared and applied throughout. Cutting-edge technology that's affordable. Lee, J., Lee, K., and Heo, J. Well write a 100%plagiarism-free paper this fast! Core Competencies: The four Core competencies of Samsung are: creative people, technology leadership, innovativeculture, and customer value creation. Web. Are you busy and do not have time to handle your assignment? In early 2009, Samsung Mobile's global market share stood at more than 17 percent, second only to, Nokia. Author. This external strategic factor refers to possible exclusive agreements between Samsung and other firms. Samsungs organizational culture and related human resource management capabilities can support strategies for exploiting product development opportunities in global markets. b) The differentiation strategy occurs when a firm delivers greater services for the same price of its rivals. The main challenges for the mobile business involved the strengthened Korean won that facilitated high prices of Samsungs products. Overview of the essay Outline This led the company to decrease the price of the device in only three months after its launch date, which, in turn, marked a slowdown in sales within the smartphones industry. 1. This implies that companies in this sector have to put major investments into R&D and launch new products permanently. Another crucial challenge was associated with particular products, Samsungs high-end flagship product Galaxy S6, which failed to gain the sought revenue. The history and the competitive advantage. Another strength in this case is the synergistic support involving the technology companys divisions and subsidiaries. The multinational companys vision is to "Inspire the World, Create the Future." The company is headed by a trio of CEOs, Ki Nam Kim, Hyun Suk Kim, and Dong Jin Koh, with the corporate administration office based in Suwon, South Korea. With our student assignment help service, you can submit all your assignment on time and score superb grades. Samsungs key competencies are advanced innovations, innovative devices, as well as creative aspects (Glowik, 2009). Business Principles 7 Samsung's key competencies are "advanced innovations," "innovative devices," as well as "creative aspects" (Glowik, 2009). Are you scared that your paper will not make the grade? For instance, executives, managers, supervisors, and project leads can conduct a self-or-cross-organizational analysis to determine relevant strengths to build upon. The primary competitors were selected trough primary research in mediamarkt and secondary reaserch was used to determine the market share in . Are you in need of assignment help? However, in 1990s, during the Asian financial crisis, Samsung cut costs and reemphasized product quality and manufacturing flexibility, which allowed its consumer electronics move from project phase to store shelves within next six months. Web. Apple accomplishes this through innovative hardware, software, peripheral, internet, Amjad In the SWOT analysis framework, the external analysis of the corporation refers to opportunities and threats that relate to strategic factors identifiable in a PESTEL/PESTLE analysis of Samsung. For example, exclusive partnerships with software developers can provide additional functionality to make the companys consumer electronics more competitive. 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. In 1993, Samsung Mobile released the SH-700 series, which boasted a smaller and sleeker design and, better sound quality. 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. 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