The paper 'Why Samsung is Successful in Meeting Its Business Objectives' is a great example of a Marketing Assignment. 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 the 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 smartphones, 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 research 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 in 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 the 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 carve 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 group responding in a different way to the company’ s marketing mix.
For instance, during the July 2012 London Olympics games, Samsung Group offered 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. 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 the 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 in selling its products. The company was able to find growth segments with distinct requirements. 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 pursue many segments.
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