Samsung case study

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Samsung is currently one of the top multi-millionaire companies in the world and holds a remarkable market share in the electronics industry. Since it was founded in 1938, the company has gone through a massive transformation, growing to be one of the largest companies in the world. Due to its unique innovation and technology, Samsung has been able to achieve the position of a global market leader in several of the company’s products. This is despite the huge competition that the company faces from companies from different industries including Apple and Google. It holds several competitive advantages which make enable to thrive in the fierce competition present in the industry. (Keller, & Kotler, 2016).
One of the key competitive strengths for Samsung has been its strong product design and innovation capabilities. Samsung employs flexibility in its product design and is capable of designing highly innovative products based on market specifications. The company has an effective market readership through which it analyzes market changes hence streamlining the development of new products. This helps in scanning for new markets for the growth of the company. Replicating and adding new features to existing products have been crucial for the company’s success in the market for smartphones. Another competitive strength for Samsung lies in its high commitment to research and development. The company invests massively in this field with a view to understanding customer needs.

Through the implementation of the latest technologies, Samsung strives to produce innovative products that meet customers’ changing needs. A strong financial position also enabled Samsung to maintain a strong financial structure. Another competitive strength for Samsung is the fact that it holds a strong patent portfolio. This helps in the research and development centers which help the company in securing the core technologies for future development. (Keller, & Kotler, 2016).
Samsung has set a goal to achieve $400 billion in sales by the year 2020. Considering the recent growth of the company, this goal remains feasible. The company has focused mainly on achieving positive and sustainable growth which is a key to the realization of the 2020 goal. Achieving the $ 400 billion sales would, however, not be an easy task for the company, especially given the fact that the industry is getting more competitive than ever. Samsung has been making notable progress owing to its diverse and unique business portfolio. Building on its competitive strengths, Samsung has a huge potential for improvement. The company’s aggressive approaches to research and development promise huge growth of opportunities for the company to thrive. The global business structure utilized by Samsung also provides a wider market for the company to grow its sales. (Park, 2015).
Much progress has already been made with regard to the 2020 goal of $ 400 billion in sales. Samsung has already become the world’s number one producer of smartphones and smart TVs. There has been a sustained growth in the market for iPhones in the world which has fuelled growth in sales for Samsung. The increasing demand for electronics and smartphones provides an avenue for Samsung to achieve its goal. Research and development would be a key for Samsung to deliver this goal. On this front, Samsung is investing largely on global R&D so as to take advantage of the emerging markets in the world which would be a key for the company to grow sales. Although the company will face many challenges in the business environment, the 2020 goal is still feasible. (Park, 2015).
References
Keller, K. L., & Kotler, P. (2016). Marketing management. Pearson.
Park, S. O. (2015). 23. Samsung: restructuring, innovation, and global networks. Handbook of Manufacturing Industries in the World Economy, 362.