Why Samsung Is Successful in Meeting Its Business Objectives - Assignment Example

Student's Name: Course Name and Number: Instructor's Name: Date Submitted: Why Samsung is successful in meeting its business objectives Introduction Samsung is a South Korean company that has for so long dominates the market since 1938. The company sells various electronic appliances as well as technology such as computers, mobile phones and televisions. The company accounts for more than 230,000 employees throughout the world. In 2003, Samsung came under heavy criticism from competitors and the media following its decision to enter into mobile phone business. According to industry observers, the move was imprudent. However, the company’s foray into the mobile phone business turned out to be a huge success as it contributed considerably to the company’s earnings and reputation. During that year, the company’s annual sales rose to $37.9 billion. Today, the company has successfully positioned itself as the global leader as far as mobile phones and other electronics are concerned. Some of the aspects that have enhanced Samsung’s competitive edge include; innovative and market driven solutions and good management. In recent years, Samsung has faced stiff competition from major rivals such as Apple Inc., Nokia OYJ, Sony Corporation, Texas Instruments Inc., Intel Corporation, LG Display and LG Electronics, Lenovo Group Limited, Hewlett-Packard Company among others. Amongst the above competitors, Apple is the main rival as far as Samsung’s Smartphone market share is concerned. For instance, both Samsung and Apple have over the years created new versions of smart phones, and this has caused clashes between the two greatest electronic manufacturing firms. Despite this, the company has continued to hold its competitive position in the market place. This paper shall study the reasons why Samsung has succeeded in achieving its business objectives despite intense competition in the electronic market. Researching on consumer preferences Pride (2008) has noted that, despite intense competition in the electronics industry, Samsung still enjoys a considerable share of consumers throughout the globe. The company builds and maintains profitable customer relationships through researching on their needs and preferences. The organization understands that it is more difficult to win the customers back as compared to putting in strategies that will ensure that they do not leave. Customers always yearn for maximizing their benefit at the lowest possible cost. The company thus delights its customers by exceeding their expectations. Satisfied customers pose several advantages to the firm. For instance, they talk positively about the firm and also remain loyal for a considerable period of time. Samsung invests huge financial resources in research and development. The company has more than 30,000 researchers who carry out research and development functions. Every year, Samsung’s engineers develop approximately 150 new technologies for mobile internet and 4G communication. This clever marketing strategy has played a critical role of enhancing Samsung’s brand. Chang (2008) argued that this strategy enables an organization to provide clients with immediate needs. To be successful, an organization must constantly be in tune with the customer and provide only those services that meet the client’s needs. Marketing segmentation In the modern business world, the task of growing and sustaining consumer market is extremely difficult. Marketing managers across the globe have thus realized that, in order for their organizations to gain competitive advantage, they must curve out smaller portions or niche. According to Needham (1999), marketing segmentation entails the task of separating the market into smaller and undifferentiated groups with each grouping responding in a different way to the company’s marketing mix. For instance, during the July 2012 London Olympics games, Samsung Group offered the smart TV to the home viewers in an effort to improve its competitive position. The company introduced the Smart TV during the London Olympics games with a view of thrilling cheers as they watch their teams emerge as winners on a huge high definition TV. The smart TV has many applications and features such as the ability to stream high definition premium content, the ability to deliver broadcast content that is not available on the television screens and the ability to deliver internet-based content. With this regard, viewers were able to access Olympic Games from different channels. Samsung thus offered viewers with an advanced form of interaction because the Smart TV users were able to enjoy home viewing experience, as opposed to spectators at the Olympic Stadium. Most viewers opted to view games in the comfort of their homes and this in turn, played a key role in enhancing the company’s sales revenue. By segmenting the market, Samsung was able to develop a unique competence of selling its products. The company was able to find growth segments with distinct requirements. A research, which was done by Woel (2010), suggested that those companies that focus on one segment are able to meet the needs of the market well compared to those that pursues on many segments. Excellent customer services Samsung has come face to face with new market realities, namely: the acceptance that the customer is not a burden to the business. He or she is the reason the business exists. Days when suppliers dumped their offerings in the buyer’s lap, expecting him to gratefully accept the proffered goods are past. It is now the Age of the Customer. Customer is the one who provides resources to keep the company in business (Hitt, Ireland & Hoskisson, 2010). On its part, Samsung has geared all its efforts towards delighting its customers. The management at Samsung has prescribed acceptable ways for employees to interact with customers. This has enabled the company to develop a deep bond with customers through interacting with them. Through interaction, employees get to know when a customer is satisfied and when he or she is unsatisfied. Samsung thus strives to enhance its service delivery in order to retain the existing customers and attract new ones. Satisfied customers are usually loyal to the firm. Customers are usually loyal to companies that have systems that encourage them to express their views and opinions. Criticisms and complaints from customers provides a firm with an opportunity to identify its weaknesses (Hoffman & Bateson). Effective Marketing strategies Samsung has adopted a holistic approach in its marketing strategies. With the electronic competition going up, the company cannot sit back and watch other companies such as SONY and LG continue dominating the market. Its vision statement is Inspire the World, Create the Future. According to Woel (2010), the vision statement came into being in 2010 when Samsung released its 3D television to the world market. He points out that the vision statement is a true reflection of Samsung’s to inspiring its communities by leveraging Samsung’s three crucial strengths, ; that is New Technology, Innovative Products, and the Creative Solutions. Samsung is involved in the production of many electronic gadgets, and this move gives it an upper hand when it is competing with other companies such as Apple, SONY and LG. In the modern world, mobile phones have become the theatre of competition mainly between Samsung and Apple (Shane, 2008). Shcherbakov (2008) argues that Samsung’s clever marketing strategies played an important role in lifting its image from a medium electronics goods maker to become the global leader in terms of digital technology. In its marketing strategy, he points out that the company went on a recruitment spree and hired the best marketers in the world. As a result, Eric Kim who used to work for IBM was hired. He was tasked with ensuring that Samsung products are marketed across the world in the most effective and efficient mode. Since his employment with Samsung Corporation, Eric Kim has introduced a number of advertising campaigns and the slogan “Samsung DIGIT all: Everyone’s invited.” According to Kumar (2008), one of Samsung’s major global branding strategies is Olympic sponsorship. In an ambitious and expensive move, Samsung became a co-sponsor of the 1996 Olympics after it had successfully sponsored the Samsung Expo in the same year. Furthermore, one of the major shareholders in Samsung Mr. Kun Hee Lee was unanimously selected to join the lucrative International Olympic Committee. This provided a better opportunity for Samsung to negotiate for better deals with the Olympics Committee. This did not take long to materialize as Samsung won the chance to sponsor the Olympics in Sydney in 2000. According to Saxena (2009), Samsung has the desire to show her technological improvement, and therefore, decided to use the telecommunication sector as her ambassador in the Olympics. These were the phones and other communication gadgets. As an ambitious company, Samsung went ahead and sponsored the Nagano Winter Olympics. According to Raab (2008), Samsung was tasked with providing all mobile technologies that were required in the entire duration of the Olympics. The company has also sponsored the Salt Lake winter games in 2002. According to him, all these initiatives are taken to promote Samsung as a global leader in the manufacturing of electronics goods. Kong (2005) points out that Samsung has also invested in sports marketing. It has sponsored various sports and athletes in the world. Some of the notable sports that Samsung has sponsored include the Samsung Nation’s Cup and the Samsung Super League in France. In golf, the company has for many years been a proud sponsor of the Samsung Ladies Professional Golfer Association World Championship (Mauborgne, 2005). Conclusion In the modern business panorama, organizations have become adept at enhancing customer relationship. Failing companies, on the other hand, do not bother to look at customer scenario. According to Raab (2008), these companies have directed their efforts on their own profits and have thus failed to realize how their products fit into the clients’ way of life. As a result, failing companies find it extremely hard to enhance loyalty and increase sales (Kumar, 2008). Samsung, as one of the leading brands across the globe, has embarked on such concepts as researching on consumer preferences and behavior, dividing consumers into distinct segments and improvement of products in search of a competitive advantage. The company ensures that it surpass their expectations with the quality of its products. In recent years, Samsung products have undergone a change in look and shape. The new packs are aesthetically appealing giving Samsung products a trendy new look befitting the consumer. Customer satisfaction provides Samsung with a competitive advantage. References Chang, J. 2008. Sony vs Samsung: The Inside Story of the Electronics Giants' Battle For Global Supremacy. Hoboken: John Wiley & Sons. Hitt, M, Ireland, R & Hoskisson, R. 2010. Strategic Management: Competitiveness & Globalization, Concepts: Edition9. London: Cengage Learning. 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Hoboken: John Wiley & Sons. Shcherbakov, O. 2008.Switching Costs, Investment, and Collusion: Essays in Empirical Industrial Organization. Michigan: ProQuest. Woel, K. 2010. Corporate Strategy for Samsung Company. Michigan: ProQuest. Read More