The paper 'Samsung’ s Smart Phone Strategy" is a good example of a management case study. Samsung (originally called Samsung Sanhoe) was founded by Lee-Byung-Chull in 1983, originally starting as a small export business inside Korea and producing food and sugar. It was in the late 1960s that it started to shift its focus to the electronic industry, producing various electronic devices including radio systems, TVs, refrigerators, and many more. Between 2000 and 2010, the company went through a pioneer digital age, marking a key revolutionary era. At that time, it made major innovation steps to produce competitive products.
Today, it is leading the pack in, among other technologies, the smartphone market- owing to a sound strategy. Introduction The global marketplace today has become highly dynamic and competitive, owing to “ acceleration and global distribution of knowledge production; market fragmentation and virtualization; the emergence of active users; and development of social and technological infrastructure” (Chesbrough & Crowther, 2006, p. 229). To enhance competitive advantage in the highly dynamic and competitive global tech marketplace today, organizations must seek to have a sound overall strategy. The strategy should involve innovation in four key areas, what Chesbrough and Crowther (2006) refer to as the 4P framework: product innovation concerns the development of new or higher-quality products and/or services; process innovation focuses on changes in how organizations not only create, but also deliver products and services; position innovation concerns strategies to enter new markets and/or target new segments in the old markets, and paradigm innovation is about changes to the underlying mental models that frame and inform how the organization does things. This paper analyzes Samsung’ s strategies and how these have contributed to its rise in the past, its position in the present, and the future prospects. Strategic Analysis PESTLE Analysis For tech companies, PESTLE factors have a considerable impact on their ability to pursue strategies consistent with the IT Mega Trends.
There are four main categories of IT megatrends influencing the present and future of the mobile phone market. New values concern three main areas: valuable big data, progress in cloud services, and IT consolidation. New threats include advanced cyber attacks and the use of patents as strategic weapons. New creativities include smart vehicles and contextual devices and services.
Finally, new growths include rapid business development and re-visioning Green IT. Economically, the marketplace today remains volatile and uncertain. Global economic problems can force the company to readjust its strategies. Economic challenges might be an obstacle to customer spending and business development. Without the money, the pursuit of all strategies in line with the megatrends is affected. In relation to legal factors, Samsung has had to pay heavy penalties following the accusation of infringing a number of patents, particularly in relation to Apple’ s iPhone and iPad.
These penalties are part of the reason the company is now looking to lead the way in innovation and not have to copy its competition. In relation to the environment, the factors of global and warming and climate change have led to the emergence of environmentally sensitive and ethical consumers. This influences Samsung’ s Corporate Social Responsibility (CSR) strategies, particularly in relation to Green IT.