Enterprises today face pressures to maximize their short-term profits. This however often seems to be at variance with research and development programs that seek to maintain a company’ s value over the long run. A solution to this dilemma begins by acknowledging that the value of the business depends on the growth rate of its cash flow. The company’ s ability to maintain an advantage in market value is dependent on whether investors acknowledge that the growth rate of the cash flow is sustainable (Arvand 2012). At this rate, the objective of strategic management is to contribute to the enterprise value by ensuring that the cash flow on which the company depends is sustainable and continues to grow.
Presently, the enormous challenges of technology management face giant Korean electronics companies. Reliance on the importation of technology is an idea that is no longer a practicable strategy for Korean firms that are fast catching up with the rest of the world in developing key technologies. No company has confronted these challenges more strategically than Samsung Group. Having transformed from a highly bureaucratic, conservative and centralized organization with wholly Korea-based production in less than a decade, the company is in the course of transformation into a transnational and flexible organization with a sustainable growth of cash flow (Epstein 2013; Kim 1997).
From a company that was entirely reliant on overseas licenses and technologies, it is developing research and development capabilities and has developed technology management skills to compete internationally as a technology leader. This essay addresses four elements, namely the development of a new product, business model, business models, and involvement of new technology. Business ModelSamsung market strategy consists of overflowing its range of products in the marketplace within a short period of time.
The company appeals to more markets through the provision of a plethora of devices such as tablets, smartphones, TVs among other electronics, all of which are both high- and low-end products with the view that at least one of their products will appeal to a certain market segment. Samsung has excelled in its low-end market (Epstein 2013). However, it has recently started to expand in the smartphone market with its flagship products, such as Samsung Galaxy S4 (Kim 1997).
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