Business News Event - Article Example

Business News Event The technology industry has been characterized by the strong competition and fast changing technology used in the manufacture of the different gadgets. Managing Competition remain an important facet in the survival of companies which operates in such environment. The article chosen for this analysis relates to the strategy that Samsung, a South Korea firm, intends to pursue in order to remain relevant and become a market leader in a fierce competitive market from competitors like apple, Nokia and Motorola. This article is relevant because of it relates to several management issues previously discussed in lessons. In this article, the strategies that Samsung pursues to attain competitive edge together with the challenges and threats facing the company have been enumerated. The strengths and strategies of the competitors like apple, Nokia and Motorola have also been highlighted. The article will however be used in identifying some of the management concepts and elements that Samsung engaged in to make its products remain relevant in the market where consumer preference determines success. In this article, the management of Samsung recognizes the need to employ foreigners to help in the development of software for their handset. The company targeted the highly talented professionals from India and other nations who were ready and willing to offer their services to improve the quality of the handsets and products that were manufactured. Moreover, this would be a deviation from the company norms and culture whereby the company employees were entirely locals. Organization culture forms an important concept in the operations of businesses and the manner in which businesses conduct their activities (Treat 86). Organization culture is important for branding, identification, and history. It has often been used in developing strategies meant to ensure organization successfully markets its products. From the article, it is clear that managing competition requires high level of flexibility and breaking of organizations norms (KIM 25). Competition determines how management will conduct business and set their prices. Quality must be improved in a bid to ensure that customers prefer a company’s products more than those of competitors. Managing competition therefore requires the commitment of the managers and other important business stakeholders. In the case of Samsung, the company management had to act at the fastest time possible to have the company embrace competition in a the free market. Another management concept that can be learnt from the article is change management. Change can be defines as the alteration of the status quo i.e. making adopting new ways and methods of doing things. In the business scenario, companies have to continuously conduct environmental scan in which they attempt to predict the possible changes in the environment and analyze the impact of such environmental factors on the business performance and operations (KIM 26). Companies that are able to accurately forecast on the possible changes in the environment and formulate policies that may assist in ensuring that the business is not adversely affected will always be in a position to survive and maintain desired growth. From the article, Samsung as a company has been in a position to realize the need to change some of the fundamentals that are necessary in ensuring it enhance efficiency and promote customer satisfaction. The company was in a position to predict the shifts in the market tastes and preferences by the development of smart phones and iPhones. Samsung realized the need to have them change their employee base by employing and engaging employees who are foreigners (Treat 89). The company further went ahead to accept completely adopt new ways of conducting business without really remaining fixed on the mode of their operations. In addition, Samsung increased its investment in research and development in order to support the development of modern technologies and discovery of new software. The company management was able to realize that the technology industry has realized a paradigm shift from hardware to software. The customers require gadgets that can execute multiple tasks and achieve the desired output without experiencing difficulties and complexity in their management. This requires embracing of research and development to ensure positive progress in performance. Samsung had to develop new phones to boost their turnover in the market (Chen 13). At one instance, an employee of Samsung from Pakistan made remarks asserting that the company was weak in the software segment and had to improve their discovery in the technology segment. Besides, elements of formation of strategic alliances can also be seen from the case. In realizing organizational success, businesses form alliances with other organizations to develop strengths in their businesses and thwart competitors’ efforts. Samsung entered into strategic corporation with android to ensure it manufactures products that are in demand and which are highly innovative in their nature and performance. Such strategic alliances would enable the business record tremendous improvement in the software and develop strong competencies that would make the business outperform competitors like Motorola and apple. Samsung strategy of developing multiple software is therefore called for if the company has to satisfy the diverse consumer segment (Chen 13). From the article, it is clear that the survival of firms in the highly competitive industry depends on how best a business develops strengths and adapt to the ever-changing environment. Since change is constant and mandatory, the businesses have to become flexible and must not expect their operations and structure to remain fixed forever. Samsung had to embrace new culture of recruiting employees with origin not in Korea and increase their pay to ensure they remain to work for the company (Chen 13). All businesses that operate in the turbulent environment characterized by changes in customers’ demands and increasing level of competition must be able to accommodate the demands of customers and increase their focus on producing customers required goods and services. In conclusion, technology industry faces one of the toughest levels of competition in which companies invest enormous resources in research and innovation. Such investments must be carefully evaluated to ensure their intended aims are achieved to promote organizations success and profitability. The ability of an organization to embrace change and coil its performance to suit the demands of the market and to enhance the value of their brand also contributes to better business performance. Furthermore, Samsung has to empower their marketing department to make known the company strategies and ability of the firm’s products to solve customers’ problems without any difficulty. Organizational flexibility and adaptability is core in ensuring business success. Works Cited Chen, Brian. "Samsung Unveils New Version of Its Biggest Phone Hit - NYTimes.com." Technology - Bits Blog - NYTimes.com. N.p., n.d. Web. 10 May 2012. . KIM, YUN-HEE. "Samsung Seeks Outside Talent - WSJ.com." Business News & Financial News - The Wall Street Journal - Wsj.com. N.p., n.d. Web. 10 May 2012. . Treat, Tod. Technology management. San Francisco: Jossey-Bass, 2011. Print. Read More