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Samsung Electronics - Research Paper Example

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Business Analysis of Samsung Electronics Name of Course Your Name Your University Introduction Samsung is one of the world’s most popular consumer electronics companies. Samsung is a Korean company and it operates its major outlets in the United States and its central market is in the United States…
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Samsung Electronics
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"Samsung Electronics"

Download file to see previous pages Samsung specializes in mobile phones, tablets, televisions, DVD players, home theaters, digital cameras and other household appliances like washing machines, dishwashers and the like. Samsung focuses on innovation and it promotes its services through various global ventures and entities that are formed for such purposes. Samsung Electronics is a subsidiary of Samsung Group. According to the Financial times, Samsung Group was the world’s largest technological company in terms of revenue between 2009 and 2012 (Jung-a and Oliver, 2012). As of today, December 13, the stock value of Samsung Group on the Seoul Stock Exchange is KRW: 1,533,000 which is approximately $1,423 (Reuters, 2012). This is an appreciation over the previous trading periods which are shown in the chart below: Figure 1: Samsung Stock Levels between July 2012 and December 2012 [Source, Samsung Website] From the stocks levels identified above, Samsung is doing well in the field of business and it has commendable efforts and results from its operations. The company is a leading firm in the consumer electronics industry and it continues to improve its services and offerings to consumers in different parts of the world. Samsung is represented in 61 countries around the world and it employs 221,000 people (Samsung Values and Conduct, 2012). The company is popular all over the world and it continues to invest in highly innovative technology and systems. This paper involves a critical analysis of Samsung’s systems and business processes and structure. It undertakes an in-depth analysis of the various components of the company and the industry and economy within which it operates her US wing. Industrial Structure The consumer electronics industry is estimated to be worth $260.7 billion in 2012 according to projections and estimates made (Elnadi, 2010 p4). This means that it is one of the world's largest and most lucrative sectors of business. The consumer electronics industry has an annual turnover that is much more than the turnover of several small and middle-sized economies around the world. The industry's revenue base has increased by 30.6 since the 2007 business year (Elnadi, 2010 p4). This means that it continues to add up to its already consolidated financial worth and this shows that the industry is very progressive and it increases systematically with time. The main features of the consumer electronics industry is that it is highly competitive and customers in the industry are moved by brand loyalty (Elnadi, 2010 p4). The industry is moved by three main things: fashionability, innovation and it is research based (Kapur, 2009: p6). Consumers will always flock to buy a product that they deem to be latest and up market. Due to this, the companies in the industry like Samsung has to find ways of bringing new products onto the market to outdo their competitors. This therefore causes the industry to be steeped in research and innovation. In terms of strategy, the consumer electronics industry is ran through division of labor, a high degree of integration of different units often scattered around the world and it is affected by rapid obsolescence which sparks up the need for innovation to ensure survival (Mourdounloutas, 2011 p2). Due to this, the spate of competition in the industry is extremely high. The consumer electronics industry can best be described as an oligopoly. This is because there is the presence of a few, but highly capitalized large entities that are involved in ...Download file to see next pagesRead More
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