Changing business environment of Samsung

Changing stemma environment of SamsungIntroductionSamsung has grown to superstar of largest electronics company since 1938. Since 1970s and early 1980s Samsung expanded globally with diversified intention into core technical business. Samsung leads the electronic industry with its high performance and with high growth stray along with stability.2009 Global Market Sh atomic number 18 of 13 Percentage of different harvest-homes available in marketplace. Examples - Mobile Phones, Monitors, Semiconductor.1970 First Black washcloth (Model P-3202) production started Samsung-Sanyo Electronics.1969 SAMSUNG-Sanyo Electronics established (renamed SAMSUNG Electro-Mechanics in March 1975 and merged with SAMSUNG Electronics in March 1977)1951 SAMSUNG Moolsan established (now SAMSUNG Corporation)1938 SAMSUNG was founded in, Korea (Taegu)Company SamsungGlobal Market sh atomic number 18 is terms of sales is as followsTV Market Share is 21.9%Laser Printer Share is 13.7%Mobile Phone Share is 16.7%DRAM Share is 30.1%TFT-LCD Panel Share is 25.7%If we compare this performance to other companies Samsung emerges as world leader in at least 3 sectors which are TV, DRAM TFT-LCD. This clearly shows us the dominance of Samsung in market and this is principal(prenominal)ly due to its transparent policies, positive court and honest efforts in being a global leader. This performance data is taken from Samsungs keep openability report for 2009 from Samsung authorised website.We can clearly see that Samsung as a company is growing locally and globally Korea being its local market. This consistent growth of the company is mainly due to its marketing strategies which are paying off well. More details on Samsungs operations, marketing, product line etc can be found onThe business environment keeps on changing and is unpredictable. So, it is very necessary to understand and react to this changing business so as to survive and grow in the market.Proper intimacy of business environm ent will make the entrepreneurs and businesses able enough to plan and implement strategies that are needed to identify the scope of improvement, create and exploit opportunities that go on the way, retain stability, gain combative advantage and prepare appropriately for the upcoming challenges. The way the environment is analyzed and accordingly the strategies implemented, will define the span of the business.Here With the example of samsung.The data collected will be analysed using deck out. SWOT stands for strengths, weaknesses, opportunities and threats. SWOT analysis, is a strategic business planning whoreson used to take care the Strengths, Weaknesses, Opportunities, and Threats that exists in business. It accepts identifying the business objectives as well as the internal and external factors which are likely to favour the business. It may be classified intoInternal factors strengths and weaknesses that are within (internal) organization.External factors opportunitie s and threats of external environment.The internal factors can be classified into strengths and weaknesses depending upon their effect on organization and business objectives.The factors may include all of the 4Ps as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macro-economic factors like technological , legal,and socio-cultural changes, as well as changes in the marketplace or competitive position.According to B Kyle SWOT can be identified as internal and external in relation to environment.Strengths It usually tells about the positives of the company. How well we are doing in our area of interest. What is our position in front of competitor?Weaknesses Weakness refers to area of struggle of our company. Why are consumers not happy about feature product? Why are we not meeting sales target for a particular product.Opportunities It is directly related to external environment. It could be the areas where your competitor is not g ood at. We should try to utilize strengths in areas of our weaknesses. Are thither any emerging trends or possibility to capture market by introducing new product?Threats It could be financial or development problem. Competitors strength is major threat. Are competitors becoming strong.Description.Strategic business toolsSWOT analysis for SamsungStrengthsStrong hold in Consumer ElectronicsLow margin strategy increases salesHighly skilled labour availability locally globallyGood focus on customer avail and good marketing strategyStrong management and loyal employeesWeaknessesLack of performance in Laser printer salesLess cost utile in PC consumable products.Lack of brand recognition in mobile phone sector.Poor pricing strategyLack of usage of stem in some part of world e.g. ChinaOpportunitiesCan unseat major stake holders in TV and DRAM sectorsIncrease product aim in consumer electronicsCan sustain future market using the idea of consumer taste researchRapid growth in competitiv e markets across the musket ballIncrease in portfolio due to acquisitions of other firmsThreatsFaces high competition from Sony and Nokia in mobile phone sector.Daily entrants of new technology companiesImpact on sales due to recessionLack of innovation in mobile industry threatens its position further down.Intense competition from existing companies in PC sector.The preceding(prenominal) information which helps in doing the SWOT analysis and other graphical presentation helps to answer our objective questions mostly. Although it might not provide direct answer scarce clarifies strategies and benefits of organization doing global and domestic business. It clearly reveals the benefits of proper marketing in terms of sales numbers.PESTEL AnalysisPESTEL analysis is one of the most important tool of business strategic management which helps in identifying the surroundings within which the company operates. It gives a clear idea about the threats, risks and opportunities that occur i n the market. It helps in understanding the needs of market, its fluctuations, whether the market is progressing upwards or downwards (i.e. growth decline ratios) and thus makes the businesses able to develop strategies accordingly.PESTEL is used as decision making tools in macro-environment. PESTEL is Classified intoPolitical factorsEconomic factorsSocial factorsTechnological factorsEnvironmental factorsLegal factorsPolitical factors Its all about intervenes of the governing on the economy of the country. Political factors include areas likeTax policyLabour lawEnvironmental lawTrade restrictionTariffsPolitical stabilityServices and goods provide by the government ( merit goods ) and services which is not provided by the government (demerit goods)Goodwill among foreign nationsEconomic factors It includesInterest ratesEconomic growth dictate of inflation (Inflation rate)Rate of Exchange (Exchange rate)For exampleCost of capital is directly affected by interest rateExporting goods and supply of goods is affected by exchange rateInflation raises cost.Social factors Demand of products and company operations are affected by social factors likeCulture of the societyNatality rate addition rateAge distributionTechnological factors It includesResearch and development activity.AutomationBetter technology for the production of goodsTechnological have direct impact on costs, quality which leads to innovation.Environmental factors It includesWeatherClimate changeLocality (Place)Ecofriendly products (to overcome with problem of global warming)e.g Effect of temperature on farming and tourism.Legal Factors It includeConsumer lawEmployment lawHealth and safety lawDiscrimination lawe.g. borderline wages system in U.K is legal factor that affect business.Minimum age for employment is fixed by the government.Conclusions RecommendationsWe have analysed and gathered data from Samsung Company in relation to our topic global versus domestic marketing a critical analysis. Th e conclusions drawn using company data alone cannot summarize our findings. However there are similarities in few points. If we look at the organisation section we can see how Samsung has come a long way to be recognised as a global brand. It shows that achieving such position in global market is very hard. Not only achieving but it becomes increasingly important to sustain that growth due to fierce competition. It shows how companies have to adjust or change their policies from time to time keeping in mind rising and falling economy. In general it alerts companies of being more innovative cautious of environmental changes. It also emphasis on limitations one has to face as the behaviour and taste of consumer changes geographically.RecommendationsCompanies should develop marketing strategies keeping in mind its strengths, weaknesses and availability of resources to be globally successful.Companies should try to develop product which global consumer can identify easily from competito rs one.Identify a sector where we can see growth and sustain competition.Companies should appoint special taskforce or focused group people to identify the drawbacks of non performing sector and find solutions to that.To be successful organisations should concentrate mainly on quality and pricing structure.Be in constant touch with customer by means of advertising, press releases and make them aware about product specifications and changes if there are any.Try to use both forms of communication verbal and non verbal.SummaryFrom this report on global marketing versus domestic marketing we understand that main objective of any company doing global marketing is to find opportunities. It mainly expands companys reach to global customers. This mainly depends on how the company analyses its strengths and opportunities, optimum usage of resources and approach towards business. Here in this report we saw how Samsung as a global company has wide range of products and constantly keeps on addi ng them to sustain market place. SWOT analysis helped us to understand about positives and negatives of the company. Important outcome of the report about marketing can be converted in one guide word think globally and act locally.ReferencesAaker, Jennifer, Susan Fournier and S. Adam Brasel. (2003). When Good shuffles Do Bad. Paper presented to the Marketing Science Institute Board of Trustees Meeting in Washington, D.C., March 6, 2003.Baker, Malcolm and apostrophize Sterenberg. (2002). International Branding How to Resolve the Global-Local Dilemma. Market Leader (Autumn).Johansson, Johny K. and Ilkka A. Ronkainen. (2003). The Esteem of Global Brands. 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Ltd.Internet referencehttp//www.fao.org/docrep/w5973e/w5973e02.htmhttp//www.cdf.org/issue_journal/samsungs_lessons_in_design.htmlSustainability Report online from http//www.samsung.com/uk/aboutsamsung/citizenship/oursustainabilityreports.html Accessed 22nd August 2009http//ivythesis.typepad.com/term_paper_topics/2009/08/global-marketing-versus-domestic-marketing-a-critical-evaluation.htmlhttp//business.lovetoknow.com/wiki/Global_a nd_Domestic_MarketingRefrencesSustainability Report online from http//www.samsung.com/uk/aboutsamsung/citizenship/oursustainabilityreports.html Accessed 12 March 2010.