1. Critically analyze and discuss the strategy adopted by Samsung to achieve global Competitive Advantage.
2. Based on the B301A course material-Readings for Blocks 1 and 2 Readings3, critically analyze and appropriately relate Samsung’s strategy to any two theories of strategy as defined by Richard Whittington.
1. Samsung’s design has improved but it could not connect well with the customers. The company lacked the coherent look. Inspite, the company changed the look of its product the ratings for the Samsung product was poor (Park et al. 2015). The product named Samsung Q1, tablet computers it lacked in features, had small screens and was of high price. The Samsung Q1 was did lacked DVD drive, keyboard or decent sized screen and the battery life that lasted for two hours. The criticisms were with relation to the price the products were unrealistically priced. The Samsung also faced a lot of the problem with respect to the similarities of the features of its product with respect to the Apple and I phone (Castro 2016).
The Samsung Company had to work on the cultural changes. The company should look at the design of the products. The company should look into the innovations on the designs. The Samsung should make high end product and the exciting product. The management should look at the quality not on the quantity. If the company needs to survive it has to change its policy. The company should make use of the new technology (Wambui 2013). The Samsung Company should redesign its systems and processes to improve the process of designing. The communication between the engineers, marketers and the designers should develop a good communication. Collaboration between the different departments must be given importance.
The company had attained designed success. The employees are provided with much of the ethical knowledge in order to make success to the company. The performance of the company is measured in terms of the qualitative requirement rather than the quantitative requirement. The company should target the international competitiveness. The important assets of the company are the employees and the technology. The company should target on the next generation technology and should make their products with the help of the new technology. Although Samsung companies are spread over the range of the companies and they tend to operate independently. They share the same overall independent management philosophy. Samsung was planning to grow its business to US $ 224 billion by the year 2010. The income before paying the taxation was taken to be around US $ 25 billion. The total assets of the company were expected to reach a digit of US $ 280 billion (Ting 2014). The company is expanded in 67 countries and are operated in 285 overseas operations. Samsung is truly global in scope and nature (Fearon et al. 2013). Samsung should bring on new ideas and new cultures. Samsung is a way ahead from the apple. Presently, the company has looked forward to its productions it comes out with a variety of the devices. It sees the reactions of the people, pushes its responses to the success, and kills its failures. The company uses its funds efficiently.
2. The strategies of the Samsung company takes into account the classical approach to strategy. The traditional approach to understanding the decision of the individual is made on the decision-making theory or is based on the rational economic model. The classical view of the decision-making has always taken into account the rational decision within the whole process of discussions and the prescriptions. In the classical approach, the main goal of the company is to earn the profits for the company. According to the classical approach of the strategy, the main aim of the business is to establish it in such a location where it can earn maximum profits. Samsung does the same as the company establishes itself in such a product and place where it can earn maximum profits. Samsung has specialised itself for the mobile phones. The strategy that were made by the management of the Samsung has all the characteristics of the classical strategy thought, rather the emphasis on the long run profits not on the short term vision. According to Chandler, the central problem of the companies was to build the organizational structures in such a way that the top management focuses on their strategic responsibilities (Nevalainen et al. 2016). The company also looks at the strategic management as the main aim that needs to be improved. According to Chandler the reason for the success of the enterprise depends upon the basic reason for the success of the multidivisional structure that simply because there exists the separate responsibilities of the executives that are responsible to take the decision for the enterprise. The work of the executive has now been changed to look and achieve the long-term objectives of the firm or enterprise. The decision of the company should remain firm.
As the company tries to overtake Apple, it launched the flag ship of the Galaxy S4 Smartphone is the latest step as it tries to overtake Apple, the company have introduced the mobiles that have came out with the flying colours. The cell phones consist of the massive screens and the impressive new features. Samsung is better at learning with its competitors. The company keeps a look at what its competitors are providing to the consumers. The new features that the new feature that the competitors brings at the market first. The aggression that the Samsung saw after imitating the design of its competitors it hit at the reputation and the goodwill of the company. Currently, providing the customer with the cheaper and a product that is as same as the i phone the company thought of differentiating the product with the larger screens, different features and the successful marketing plan and delivering the product that are demanded by the consumers.
Samsung was the second company after the IBM, which filed 150 patents the last year that was related to the new technology in the Galaxy series (Reeves et al. 2015). The traditional approach also takes into account the profit-making scenario of the company. The strategy of the Samsung companies can also be compared with the processual approach to strategy. The strategy considers the rational strategy making of the company. The companies that is less concerned and confident about the market. The Samsung Company was less concerned about the behaviour of the consumers rather they looked at the profitability of the company when they copied the product that was as same as the Apple. The aggressive behaviour of the company led to the small losses of the company (Christensen and Embleton 2016). The processual strategy takes into account the perfections of the competitive market and they led to take the internal complexity of the organizations.
The Samsung galaxy S6 was exactly as same as the designs of the apple phones. The company also copied the promotional image of the Apple’s iPad when the Samsung launched the Galaxy Tab S2. Company faced a lot of the problem with this way of thinking and this led to the success of the other competitors i.e. Motorola and LG who made the designs of their phones unique and not copied any of the features of the other phone and made their phones unique. The Samsung phone was not decent was of high ranged phone. The phone that ranged from US $ 300 but had a lower spec as compared to many of the sets that ranged below $ 300 (Liu et al. 2013). The company does not look at the quality rather it lays much of the importance in the quantity. Every new week there is the new phone that Samsung used to launch and it did not even catch the attention in the eyes of the customers. The strategy looks at the perfections of the competitive market. The company had the agitated competitor which included sony ericsson, Lenovo, LG and Motorola (Steensen 2014). The company did not evaluate the new technology and the new trend that the consumer wants in the cell phones. Without knowing the trends and the wants of the consumers, the company started the trend of the mini smart phones. The product suffered from the bad response in the market as the demand for the mini smart phones was not there at all. The Samsung galaxy mini and the Samsung galaxy mini 2 was a total failure (Green 2013). To attract the consumers with the high end product the company produced Galaxy S III which did not resembled as the top end product. This smart phone hit the market and brought revenues for the company. Seeing the hike in sales of the company the modest version of the same product was launched named LG G4 and Huawei P8 Lite (Reeves et al. 2012).
However, this shows the human behaviour is rational and the behaviour of the humans are not dependent on any factors. Humans are biased in the data and our actions are determined by the first satisfactory option that he has in his mind. The other options are meant to be worse for him.
Reference
Castro, R.B., 2016. Apple Inc.–A Marketing Success Story.
Christensen, J. and Embleton, E., 2016. Ancient Narrative Therapy for Leadership: The Classical World and the Modern Leadership Classroom. The Classical Journal, 112(1), pp.78-100.
Fearon, C., Manship, S., McLaughlin, H. and Jackson, S., 2013. Making the case for “techno-change alignment” A processual approach for understanding technology-enabled organisational change. European Business Review, 25(2), pp.147-162.
Green, H., 2013. Strategies for safeguarding security of mobile computing: hospitals can gain a competitive edge by responding strategically to the rapid proliferation of mobile devices in health care, with security being an intrinsic part of their strategy. Healthcare Financial Management, 67(2), pp.88-93.
Liu, H., Xia, F., Yang, Z. and Cao, Y., 2013. An energy-efficient localization strategy for smartphones. arXiv preprint arXiv:1312.6833.
Nevalainen, O.M. and Eriksson, P., 2016. 4. How business angels found a way to contribute non-financially: a processual approach. Entrepreneurship, Universities & Resources: Frontiers in European Entrepreneurship Research, p.49.
Park, J.K. and Choi, S.Y., 2015. Studying security weaknesses of android system. International Journal of Security and its Applications. Science and Engineering Research Support Center, 9(3), pp.7-12.
Reeves, M., Haanaes, K. and Sinha, J., 2015. Your strategy needs a strategy: How to choose and execute the right approach. Harvard Business Press.
Reeves, M., Love, C. and Tillmanns, P., 2012. Your strategy needs a strategy. Harvard Business Review, 90(9), pp.76-83.
Steensen, E.F., 2014. Five types of organizational strategy. Scandinavian Journal of Management, 30(3), pp.266-281.
Ting, L.T., 2014. Image-based object search on Android (Doctoral dissertation, UTAR).
Wambui, E., 2013. Samsung Smartphone strategic marketing: analysis of Samsung Smartphone marketing strategy decisions and the consumer perception to the implemented strategies.
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