Samsung Singapore - Essay Example

?SAMSUNG By Samsung Environmental Factors Samsung Singapore Samsung Singapore is a sub-let of the flagship Samsung Electronics, which was established nearly 70 years ago. It deals with a range of products including high-tech electronics and digital media (Chang, 2011, p. 91). Over the times, the company has diversified its product range to include other areas of finance, petrochemicals, semi-conductors, and hotels. The company has extended its geographical reach to nearly all parts of the globe since its foundation. Samsung mobile telephones, some of the well-known products of Samsung worldwide, continue to claim higher stakes on the market over its other competitors, such as Nokia and Sony (Chang, 2011 p. 56). However, new market realities have emerged demanding some changes in the way, which companies operate their businesses in. Samsung Singapore will have to carry out strategic changes in its operations in order to keep up with the pressure of competition from emerging competitors and other macro-economic forces that affect the status of the industry. In the recent past global Samsung has taken advantage of the synergies of globalization and liberalization to spur growth and positive performance (Niewwenhuizen, 2009 p. 58). The need for strategic reorganization is based on the necessity of total quality management policies within the company. Competitors The past two decades have witnessed a consistent growth of stiff competition on the mobile telephone sub-sector in Singapore. Favourable government regulation policies and the policies of liberalization are some of the external factors that contribute to the competitive factor on the market. In order to survive, many companies have engaged in promotions, expensive advertisements, and value addition services that are aimed at increasing their influence in the vast mobile telephone market. Samsung utilizes its strong revenue base and modern market practices to maintain its profile on the competitive market environment (Adekola & Sergi, 2007). Multiple strategies ranging from strategic marketing to price modulations have also ensured the growth of the company. Customers Customers form another important environmental factor that determines the performance of growth of Samsung. The strategies, projections, and future scenarios of the company are significantly reliant on the tastes, decisions, views, and preferences of the customers. A close attention to the changes in customers’ preferences and opinions is important for the survival of the business. In order to have a competitive advantage Samsung must invest in continuous research practices and maintain feedback mechanisms through social media. This would help the company to carry out necessary changes in line with the market realities. Companies in the telecommunication industry in Singapore have developed strategies for retaining both high-level and low-level clientele through promotions and improved customer care services. Suppliers In the past Samsung has had to contend with the bargaining power of suppliers. Few suppliers operate on the level of standards that meet Samsung thresholds of value. There have been tendencies of these suppliers to use their privileged positions to make arbitrary changes in prices, which affect the operations of Samsung precisely because there are no suitable substitutes for the products. In order to survive such eventualities, Samsung would have to cultivate positive working relations with the suppliers or enter into long-term contracts that have the element of stability. This would impact positively on the growth of the company. Economics and Geography Economic and geographical factors have had some significant impact on the performance of Samsung Singapore in the previous financial periods. The growth of the country’s economy has had significant impacts on Samsung Singapore. For instance, the tourism industry and the information and technology sectors have experienced significant growth in the past decade. One of the effects of this growth on the economy has been the increase of disposable income among the general public. This has often translated into increased purchasing power by the company. As a result, Samsung is likely to continue experiencing high sales due to the synergies brought about by economic growth. The geographical factors in Singapore do not have significant positive or negative effects on mobile business performance. Major Factors Affecting Samsung Singapore Market stability and Technological growth are the two major factors that affect the operations at Samsung Singapore. In general terms, all the two factors have had a positive impact on Singapore’s mobile telephone industry. Indicators of economic growth have shown that market stability and technological growth are some of the issues that determine the degree and levels of economic growth in many parts of the world. Market Stability The mobile telephone market has remained stable without major adverse disruptions for nearly a decade. Although the industry felt the ripples of the recent global economic crisis, indications from multiple sources that the markets remains stable with high prospects of consistent growth. The stability of Singapore’s mobile telephony market is supported by a range of separate developments, which include incentives and direct funding of the sub-sector from the government, the growth of other sectors of the economy and the synergies of positive consumption patterns from the public. The positive consequences of market competition have also caused significant growth of the sub-sector. Naturally, market stability determines the prospects of growth for any given company. Technological Growth The growth and consumption of technology has had significant impact on Samsung Singapore. Technological growth provided new opportunities of investment for the company. For instance, companies that sought to incorporate certain aspects of technology in their communication systems provided opportunities for business for Samsung Singapore. Case reviews and analyses have shown a pattern of replacement of old systems with new ones based on technological innovations. Investing in technology has become one of the competitive advantages for corporate businesses in Singapore. The increased adoption of technological systems has expanded the market of the company to significant levels. The rapid development in technology is likely to sustain the growth of the industry. Planning and Strategizing In order for a company to reach the desirable levels of growth, it is important for it to engage in result-orientated processes that are meant to increase its performance on the market. The process of planning entails the laying out of methods for future actions, which are aimed at achieving the objectives of the company. The process of planning cuts across the various levels of the organization. The objective of planning involves the creation of frameworks and roadmaps for attaining set goals. In the case of Samsung, these goals necessarily relate to increased revenues, lowering of expenditure, business expansion, growth of the brand image, and total quality management. Proper planning for Samsung should entail an awareness of the future shape of the industry. The company could engage in activities that ensure the spread of its products to a wider clientele. Samsung mobile telephones are some of the most popular in Singapore. Because of this reason, it should be necessary for the company to make use of the strong brand image for the purposes of increasing on the element of profitability of the firm. Strategizing, on the other hand involves the laying out of the technical aspects of the plan. Good strategies are meant to increase the performance of the companies by identifying and singling out specific procedures and actions that have to be put in place in order to achieve the intended objectives. For Samsung could strategies would help the Company to avoid some of the challenges that are often encountered in the process of doing business. Strategizing involves making judgments about the possible shape of the industry in order to develop programs that processes that would benefit from such situations. Samsung should develop strategies based on market analyses in order to shield the company from the adverse effects of business. Due to the stiff competition that often occurs on the market, it would be appropriate for Samsung to enlist proper marketing strategies into the process of planning and advertisement. Strategies in business are important in developing of clear focus and measurable results within a given financial period. The enhancement of product quality is another strategy that could be used to enhance the performance of Samsung products. This should involve a study of the markets in order to get a clear view of market preferences and the changing tastes of the clientele. An assessment of these trends would help the company to produce and market products that are tailored on the specific needs of the consumer. For instance, the company should compare the features of the mobile telephones on the market and its own. This should also entail a comparison between its own sales and that of its competitors. Such information would prove resourceful in the development of the most appropriate responses to the market forces. Another strategy that could be employed by Samsung is aggressive marketing. In general terms, marketing plays the role of enhancing the awareness of the product to the general public. Good marketing strategies must be tailored on the tastes and preferences of the targeted clientele. For Samsung, the strategy could involve multiple plans with each aimed at some specific segment of the market. The values and lifestyles of the different segments should be considered in the packaging of the message. For instance, for the business oriented clientele, the marketing strategies should be packaged in a way that marks them out as some form of solutions. For the fun-loving highlife clientele, deliberate measures should be taken to market the products as some form of a fetish and luxurious item, which would buy into their social life. By differentiating the marketing strategy, Samsung would be able to enter into multiple segments of business. The company could also eat into the market segments traditionally held by its rivals. String marketing strategies would equally shield the company from the threats posed by the likely entry of new players on the market (Kumar & Sharma, 2000). Pricing is another strategy that could be employed by the company to meet various objectives. In order to capture the entirety of the markets, Samsung could develop strategies that modulate the prices on a sliding scale. Such a strategy would help the company to attract and retain various levels of the clientele across the income divide. The results would be increased volume of sales and the retention of the customers. However, the company should take sufficient caution to guard against the pitfalls that are usually associated with ill-considered price reductions. Instead, the price regulations should be considered within the general framework of product promotions so that it does not impact negatively on the general performance of the industry. Organizing and leading of Samsung Singapore should be done in a way that reflects its international reach, influence, and tradition. The nature of organization will largely reflect the nature of internal and external dynamisms of the industry. The organization will always determine the levels of efficiency within the structure. For purposes of efficiency and convenience, Samsung should reorganize its organizational structure. The reorganization process is particularly important because it harmonizes operations within and without in order to keep the course of the business on the path spelled in the mission and objectives (Ireland, Hoskisson & Hitt, 2008). The processes of strategizing, leading, and controlling of Samsung must be tied on the principle of total quality management. In essence this should involve a broad network of strategies that are aimed at satisfying the needs of the customers, meeting the expectations and welfare of the employees. Conclusion Samsung Singapore operates in a highly competitive environment. Although the market, at the moment seems to be stable, it is not entirely easy to predict the future with complete certitude. Generally, Samsung must engage multiple strategies that will increase its internal efficiency and strengthen it against external macro-economic challenges. At the same time the company should engage in systems that will increase its capacity and performance in order to take advantage of external synergies that have emerged in the world of business. The performance, growth, and survival of the company will be determined to a great degree by the way in which it will be affected by the environmental factors such as competition, suppliers, customers, economics, and geographical factors. As such it would be important for the company to develop appropriate strategies that ensure total quality management systems as a competitive advantage. Recommendations Samsung should consistently invest in research activities in order to stay above the challenges that relate to the unpredictable and fluid nature of mobile telephone business. The markets continue to fluctuate around the world, and the influx of Chinese products on the market is likely to alter the presumed scenario for the future. Furthermore, the company should endeavour to consider merging or acquiring other companies within the same line of business with the intention of breaking into new market segmentations in Singapore. It would also be appropriate for the company to divide its brands into smaller sub-lets so that each Samsung product is promoted independently with the purpose of shielding the company from crises that could affect its operations. The company should alter its leadership system in a manner that reflects the cultural diversity of its workforce and also enhance the channels of communication across. For purpose of efficiency, it would help the company to consider the adoption of integrated systems and the maintenance of a customer database to manage all matters that arise and determine changes in the opinions and preferences of the vast clientele. The company should design both short-term and long-term strategies for growth and performance should be evaluated at regular intervals. References Adekola, A & Sergi, B, S 2007, Global Business Management: A Cross-Cultural Perspective, New York: Ashgate Publishing, Ltd. Chang, S 2011, Sony vs Samsung: The Inside Story of the Electronics Giants' Battle For Global Supremacy, New York: John Wiley & Sons. Ireland, R, D, Hoskisson, R, E & Hitt, M, A 2008, Understanding Business Strategy: Concepts and Cases, London: Cengage Learning. Kumar, A, & Sharma, R 2000, Principles Of Business Management, New York: Atlantic Publishers & Dist. Niewwenhuizen, C 2009, Business Management for Entrepreneurs, New York, Juta and Company Ltd. Read More