Strategy Of Samsung Electronics Essay

Question:

A brief description of the Organisation, Justification for why you have selected it and why it is perceived as being excellent in its field.

Answer:

Samsung

Samsung was consolidated in 1938 as a South Korean global organization. The company is the largest manufacturer of mobile phones and smart cells. In July 2017, the market value of the Samsung electronics rises by the US $316 billion after overtaking Intel group. The company is a major manufacturer of electronic components such as lithium-ion batteries, chips, and flash memory. The purpose behind choosing Samsung electronics is that the organization is world's second largest information technology company after Apple. Samsung electronics has operations internationally and domestically.

Strategy of Samsung electronics

The company strategy that focuses on manufacturing of lithium-ion batteries. The company is a leader in major innovations in the electronics which provide a wide array of ground breaking products. In total company consist of 6 design labs that focus on continuous technological advancements (Lawaspect, 2017). This makes their product popular in the market. Technology advancement need amount to be spend. Company spends more than 6 billion dollars annually on product research. The strategy of the company is to deliver high-quality product along with the innovative design and patterns. The company always try to bring innovation in the product they are providing to the customer. This helps in attracting the customer and enhancing the customer experience (Michell, 2010).

Business model of Samsung

  • Samsung electronics has functioning in the segments of consumer electronics under different verticals. The products of the company are directly catered to the business houses or to individual customers.
  • Samsung follows different channels of distribution such as direct retailers, retail outlets, distributors, telecom companies, etc. this makes the product available to the customers easily (Song, and Lee, 2014).
  • The company follows strategy for sponsoring a range of international sports events such as London 2012 Olympics. This enhances the brand image and reputation of the company.
  • The strategy of providing innovative products having different design will enhance the customer satisfaction. This also makes the customers believe that company provides differentiated and quality products to wide range customers.
  • Promotion strategy for any company plays a vital role in the operations of the company. The company can communicate attractive deals and plans to the customers by doing promotion in the market (Researchomatic, 2013).

CAGE framework of Samsung

Samsung electronics have operations at different geographic places. The company consists of different cultural values from its rivals Apple, HTC. The company believes in reducing the economic distance. Products of Samsung are available and affordable for all income group peoples. The company evaluates and analysis the strategies before implementing. Samsung launched low-cost smartphones (J and on series) in India after understanding the Indian market. The consumer demand throws light towards the low-cost smartphones. This approach helps the company in enhancing the goodwill and market share (Chang, 2011).

Microsoft is an American multinational technology company who is having headquarters in Redmond, Washington. Microsoft Australia is the Microsoft organization backup arranged in Australia. The organization was established in the year 1985. This organization is driving the organization in programming, gadgets, administration, and arrangements. As of now, the organization comprises of 7 territorial workplaces the nation over. The purpose behind choosing Microsoft is the company is listed in top 5 companies. The company is popular in the market and having a good competitive advantage. It is considered as one of the largest technology firms that create a good competition against the rivals.

Strategy of Microsoft

Microsoft productivity and business process section include permitting and subscription income for office. It uses advanced technology which helps in enhancing the customer satisfaction.

  • Intelligent cloud is one of the competitive advantages of Microsoft. The company makes a strategy to achieve USD 20 billion in commercial cloud annualized revenue run rate in the year 2018.
  • The company performs merger and acquisitions that help a company in enhancing the capabilities, product range, and value offering. In the year 2014, a company acquires Nokia Corporation's devices and services business for USD 9.4 billion. In the fiscal year 2016, Microsoft completed 17 acquisitions for which company paid in cash. The cash amount paid by the company was USD 1.4 billion (Dudovskiy, 2017).

Business model of Microsoft

Creating a strong developer community is an essential element of Microsoft business model. The company business model focuses on enhancing the development of innovative products and customer satisfaction. The company creates a platform-based-ecosystem that provides benefit from cross-side and same-side network effects between users and the application developers. This helps the company to understand the demand of the customers. The network helps a company in accelerating the growth and success. Microsoft creates profit from individual customers by providing office services. The business model of the company also focuses on the adoption of new technologies which help the company to develop the software. The company is the largest developer of a wide range of software products.

The share value and brand value of the company are driven by flexible pricing, familiarity with legacy products and better support. Microsoft creates profit through Windows Phone licensing, Windows Embedded and Patent Licensing. The business model of the Microsoft also includes the money flow-in from the different sectors of different products. These all are basic elements that are considered in the business model (Worstall, 2012).

CAGE framework of Microsoft

CAGE framework (includes different types of cultural, administrative, geographic and economic factors) did not create any impact on a business model of Microsoft. Microsoft business is expanded in the world. This is the reason Microsoft has nearly 90% share in the desktop operating system market. The company is having a strong position in the market and user familiarity with OS. OS mostly comes with new computer and laptops. That makes the people aware of the services, Microsoft provides to its customers (Hasan, Ibrahim, and Uddin, 2015). Even there are some of the software’s which run only if the PC contains micrsoft.NET Framework. Culture values of the company are clearly visible through the team bonding. Sustaining in the competitive market is possible due to the team work. Microsoft is also known for the best place to work. There is no impact of the CAGE framework on company's working.

References

Chang, S.J., 2011. Sony vs Samsung: The Inside Story of the Electronics Giants' Battle For Global Supremacy, John Wiley & Sons.

Dudovskiy, J., 2017, Microsoft Business Strategy and Competitive Advantage, viewed on 24th August 2017,

Hasan, M., Ibrahim, Y. and Uddin, M.M., 2015. Institutional distance on cross-border mergers and acquisition performance: a hypothetical framework. In Proceedings of the Asia Pacific conference on business and social sciences, Kuala Lumpur.

Lawaspect, 2017, Samsung's Corporate Strategy and Competitive Advantage, viewed on 24th August 2017,

Michell, T., 2010. Samsung Electronics: And the Struggle For Leadership of the Electronics Industry, John Wiley & Sons.

Researchomatic, 2013, Samsung's Sustainable Competitive Advantage, Retrieved on 24th August 2017, from

Song, C.Y. and Lee, K., 2014. The Samsung way: Transformational management strategies from the world leader in innovation and design. New York, NY: McGraw-Hill Education.

Worstall, T., 2012, Is Microsoft Moving To The Apple Business Model?, viewed on 24th August 2017,

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