The paper "The Role of Samsung in the Global Pattern of Trade" is a good example of a business case study. Samsung Group is made up of about 80 companies. This makes the company to have diversified business activities that include consumer electronics, medical services, construction, financial services, and shipbuilding. The company is a global leader in digital media, technologies, and advanced semiconductor solutions. The significance of the company in the global market has made it to invest more resources in research and development towards coming up with innovative products and services to its huge customer base.
The company has transformed massively the worlds of smartphones, televisions, home appliances, LED solutions, printers, semiconductors, personal computers, cameras, cameras, and medical devices. The company has a workforce of about 227000 individuals across 75 nations (Eid, Elbeltagi & Zairi, 2006). The objective of the company is to open up new possibilities for people everywhere. The aim of the paper is to explore the global business activities of Samsung. The role of Samsung in the global pattern of trade Some of the factors that have contributed towards selecting Samsung Company are due to its role in the global pattern of trade.
The company carries out its operations globally thus have a huge influence on the competitive business environment. The global pattern of trade is transforming over time due to the new opportunities that are arising. Largely, this is due to the opening of the global market, as well as communication, transport, and innovative information technologies. Samsung has employed strategies over time to enhance efficiency in its operations. This has made it easy for the company to exploit the arising opportunities through investing in research and development.
Samsung focuses on the global pattern of trade to ensure that it optimizes on its potential to increase sales and revenue returns (Gö kmen, 2014). The firm operates in the competitive global trade with the aim of meeting the needs and expectations of its clients while receiving optimal revenue returns. Samsung has identified the global pattern of trade through optimizing on opportunities in the available opportunities in both developing and industrialized nations. The firm identifying the gap between the nations ensures that proper and effective measures are employed to have an advantage edge in the competitive business environment. New Trade Theory New trade theory states that essential factors that determine international patterns of trade are the extensive economies of scale and network effects that take play in key industries.
Economies of scale and network effects may be significant hence outweighing the traditional comparative advantage theory. For example, two nations in a business environment may have no distinct differences in the opportunity cost, but if one firm specializes on a particular product or service it may gain economies of scale and other network benefits due to its strategy of specialization.
Another element of new trade theory is organizations have the advantage edge of venturing early and becoming dominant in the firm. This is because the early entrants gained substantial economies of scale implying that new companies will not have the much-needed potential of competing effectively. This means that these organizations operating globally have large economies of scale (Gö kmen, 2014). Therefore, the market environment will be characterized by limited competition from rival firms and may lead to a form of monopolistic competition new trade theory has also played a role in the growth of globalization in the business environment.
This implies that poor and developing economies find it challenging in developing particular industries, as they are very much behind the economies of scale used in the developed nations.
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