Samsung International Business Strategy - Research Paper Example

Samsungs International Business Introduction Samsung is a South Korean company that started back in the year 1938 by Lee ByungChul. The company deals with electronics of all types which includes; radios, mobile phones, TVs, fridges among other households’ electronics. After its establishment, the company stayed for a long time without venturing into the electronic market until late 1960s. This was the incubation period when the company was properly defining for its base. This helped the company in the production of quality products that do not disappoint the consumers. The company basically was introduced to manufacture and assemble electronic devices in the field of information technology. Samsung is one of the largest manufacturers that are semiconductors. In South Korea, Samsung is the largest electronics company that dominates the electronic market in the country and its neighbors. The ability to dominate in the area was as a result of the high quality products that the company produced. The products were of great quality hence their increased demand (Davis and Guy 67). Being able to evenly dominate the electronic markets in the locality, the company has gained the loyalty from the customers thus being much easier for it to earn more profit that has propelled its extension to the rest of the world. Dominance of the company’s electronics especially the mobile phones bring about the growth and the development of the company’s brand name (Hill and Karen 89). Through the creation of an adverse environment for its products the company can now efficiently undertake its product manufacture without worries of whom; to be the consumers as they already has an existing market. International Business Strategy In promoting the international business, the company has established various marketing strategies that have made it much more effective to operate in the foreign countries. The company’s ability to set several subsidiary companies is one of the greatest achievements in promoting international business. The subsidiaries found in most of the countries where they find it conducive to manufacture and assemble their products. The availability of skilled labor, raw materials and market are the major criteria used in selecting the suitable geographical location to set up their branch. The branches help in the satisfaction of customers in the different localities all over the world. Through the branches, the customer satisfaction is usually attained. This is because; the clients can easily and efficiently get the products of their choice hence enhancing their loyalty through the satisfaction. Customer’s loyalty makes it more appealing to the company as it makes it more likely of the customer’s return. The subsidiaries have also provided jobs for the local community in the located areas. This henceforth makes the community in the location have the passion to be associated with the company’s brand name as they are proud of the company (Aras, Güler, and David 214). Company’s Contribution to the Society The company in the located localities may stand chances of promoting the local community in assisting them in communal duties such as building of schools, medical centers, and communal lavatories among other essential public facilities. This makes the community has an improved social life that in return improves their living standards. The community will end up being empathetic with the company thus being motivated to use the company products. The ability of the company to venture into sports where most of the young generations exploit their talents makes it easier for the company to extend its numbers of customer. The company captures millions of customer through the games. As many people are games and sports maniac Samsung has been able to have them as their affiliated customers through the sponsorship of various games and sports (Hill and Karen 89). Samsung have a football team that helps the youths with soccer talents in exploiting their talents and thereafter having to use their talent to earn a living. Samsung being the official sponsors of one of the European football club, Chelsea Fc, it helps the company in branding its product through the sponsorship. This is because, most of those watching the English Premier Leagues among other International games and sports get to see the extended services of the company and gain some brief or rather general knowledge about the company. This leaves many with the urge to try out the company’s products. Having their continued innovation in their products, this makes it much easier for the company to extend its services to clients of all standards. This is enhanced by a wide variety of Samsung products such as the numerous mobile phones models with different features thus being satisfying to the different levels of individuals with different technological advancements. The wider range makes it more competitive with the other competitors as they can be widely found to choose the suitable product from. Keeping up with Competition As the technological field of electronics keeps on changing, Samsung keeps on advancing according to the level of the competitors’ encroachment in order to keep pace in the advancements. The company also tries to come up with unique and quality products that are totally different from those of competitors’. This helps in marketing the company’s brand name and the sustainability of the company in its higher profile. Highly skilled engineers operate in the company’s production departments thus enlightening and maintain the high productivity of exceptional products. On venturing in a country where there is an existing competitor, the company tries to market its products and make numerous advertisements all over the place. Hiring of sales representatives to do the marketing is the most influential methodology used. Great care is usually taken and safety measures that enhance the suitability of the products are often adapted. Through the company branches in the countries, the company can efficiently run its business in the area as the branch will act as the head office in the duties to undertake. Products promotion is a motivating factor in getting the customer attention. Through such initiatives, the company gains the interests from some customers who end being loyal customers. The company has the managerial team that deals with customer loyalty. A team that makes sure all the loyalty customers is rewarded. Customer loyalty programs help in motivating the use of the company’s products. Once such initiatives are introduced, the company always has numerous numbers of customers thus improving their sales level and in return the profitability level of the company (Lee and Jaemin 102). Investments Made for the Last 10-20years . In the past period of about a decade, the company has made numerous changes through expert’s innovation. Such innovations have made it much easier for the company to have the innovation pace that the competitors has. Modernizations of their machines have also contributed to the great changes in the development of the company brand name. Through the introduction of the company into different ventures such as in mobile phones, house appliances, office materials among others. This has made it broader in the type of services to be provided in the markets. A wider variety of products ensures that there is customer satisfaction as they choose their satisfying appliances. From the wider variety of products, the company exports millions of shillings from South Korea where the main company is located. The products being are always the orders from the various clients such as distributors. Statistics shows that the level of exports from the company is not proportional to the amount of imports from other countries. Statistically the liquidity of the company is very low and almost not in existence to a noticeable level. The company’s financial document clearly shows the rising level of profits. Graphical representations also show how the company has a tendency in the continued growth of the company’s rate of profitability as well as company. Expansion of the Company and its Benefits to the country Market share dominance is enhanced by the fact that the company’s products. They are of extensive brands that have different quality and standards to cover for the different customer taste (Aras, Güler, and David 78). The differences in the customer preferences make it more suitable to have the different models of products from the company. Different customer preference promotes innovation as the company try to provide products that are of greats caliber. Through this, the company gets much motivation from the variety products that the company innovates for the satisfaction of the customers. Exports of the Samsung products promote foreign exchange that is an income to the country. South Korea earns foreign exchange as the company exports and imports goods for the effective and sustainable undertaking of the business activities. The sale of its products to the local Korean citizens earns profit to the company that is usually charged through taxes. Taxes are also among the main incomes within the country. Submissive of the required amount for tax purposes is what the law enhances as any failure to pay accounts for a fine. Statistical Assumptions of the Company According to a research done by Daniels, Radebaugh, and Sullivan in promoting international business, a company ought to be extensively well recognized for it to have links with foreign countries. A local company that lacks international recognition can have no effects on the international level of business within the country and the foreign states. This is because the entity would lack the interests of being involved to issues that they are not involving their profitability orientation. Due to the differences in the perspective view of different concepts, the company has been able to develop different products that suitably fulfills the needs other clients. For instance, for those who value leisure the company has come up with high definition cameras that suitably suits them? The gadgets have high resolution power and the megapixel lens is of standard quality. Alsothe games fanatics play station pads as well as games have been innovated to cater for all categories of individuals (Michell and Tony 67). Samsung advances its product with the motives of suiting the current social life of the individuals. This is what makes the company’s product be much preferred as they are based on the period’s suitability. While prospecting on to the future, the company makes sure that all its products have a durable lifespan thus being of high value to customers. Contributions to the Society In the production of all its products, the company always does consider the culture of the community within a geographical location. This always does help in understanding the kind of the community they are dealing with and their suitable products. Production suitability enhances the saving of the resources used in production as well as the available skilled labor. This plays a key role in determining the development that the company will help in initiating within the area that best suits the location. Being familiar with the local community will help in having the motives to develop the area, have them hired for posts, and have an analyzed and detailed history of their socio-economic culture as well as the political status of the individuals within the area. These are the key factor that determines the success or failure of a venture in a given geographical location. It also makes it much simpler in helping the locals in mobilizing them into groups and help them d3evelop themselves. Interacting with local community helps the company staffs in getting to know those in the local area in all perceptions. The local community may respond either positively or negatively to officials from the company. These calls for ethical practice thus making the staff calm, a mediator or rather a translator may be used to make the local community understand the motives of the company (Hill and Karen 232). This usually happens where the locals are not familiar withthe company’s staff especially for the foreign branches. In such situations, the locals are mobilized by a local person who is familiar with the intentions of the company. Socio-economic and Environmental Factors Affecting the Company According to some cultures, their religious factors are too rigid to accommodate changes taking place in their locality. Religious factors should be considered, this is because different religions have different days that they do worship. Inconveniences may be caused by this especially if individual from one tribe wholly dominates in the working force. Therefore, when such communities are encountered in the desired venture location, great caution should be taken while dealing with them. The use of a learned and more flexible individual from the same part can help them understand the benefits of having the company ventured in their location. Where a community like that dominates in an area where there is an already established company, the community may be easily mobilized by the use of their leaders and eventually have their support. Samsung company Ltd gender discrimination is highly discouraged even in the undertaking of the company’s productions, ventures among others. Discrimination of gender discourages the equality among the employees thus having a backward performance in the undertakings of the company. When having an undertaking, the company always make sure that all the suitable criteria’s in choosing the suitable personnel are used to discourage gender disparities. Gender inequality is even against the human rights of the citizens. Religious Factors Affecting the Running of the Company Some personal issues such religious differences may cause the cultural differences among the involved parties. Thus in dealing with people from different religious group care should be taken to prevent having conflicts that would be unnecessary. Lack of common objectives also does cause conflicts as there will be a lack of unitary and pluralism among the involved parties. Lack of togetherness will always be three sources of conflict (Lee and Jaemin 54). In avoiding such misunderstandings, the company usually does have their concept that facilitates an effective communication between the company’s staff and the involved parties. Within the country, the behavioral activities of different people affect the business undertaking in different rates. The degree of the people’s behavioral characters determines how the outcomes of the business will be as well as the running criteria. Negative attitude of people towards one’s business make it loose the customers hence being less profitable. In ensuring that all the ventures are a success Samsung does its venture through classified and intellectual means where the undertakings are oriented in serving the society and helping them improve their living standards? Social factors that affect the running of a business should be critically analyzed and solved in order to promote a healthy and profitable business undertaking. The Political and Legal Life Facing the Business All the political issues that seem to affect the undertaking of Samsung Company may be those arising from the tax rates. High levels of taxations always make it much difficult for younger companies to thrive well. Despite Samsung being a mature company, it ought to be regulated in payment of affordable taxes to minimize the tendency of having deficits as results of taxation. Changes in the importation and exportation terms and fees may also be another effect of the undertaking of the company (Michell and Tony 134). As the company highly deals on importation and exportation of goods and services, if the tariffs are hiked, it will be a little bit much expensive to the company to have their goods transported effectively. Rules and regulations may also be introduced to regulate imports and exports. This would be a threat to the downfall of the company. As a result of increased population the government may restrict building of companies in some areas, if the company had ventured in such an area it would have no otherwise rather than having all the buildings down to comply with government rules. Lack of the proper and certified licenses, this may lead to closure of the company no matter the worth. Therefore, to venture into a business one ought to have a certified permit to undertake the business without interruption from the law enforcers. In all its ventures Samsung have been having detailed considerations of the economic factors that affect the business processes as well as the society. Considering the factors help in deciding on the most appropriate products that best suits the community (Michell and Tony 87). Consideration Made by Samsung before Making Investment Decisions If the society is economically low, there will be no need to have expensive products for them because they will not have the required resources to buy them. By knowing this company will be able to know the living standards of the society thus being able to plan for the society in their strategic plan of the company, this will help improve the living standards of the society. If the economic status of the society is high or average, the products to be availed will be of their class, a bit expensive. This brings about the economic stability among the different people in the society, where products are sold at different costs to different groups but satisfying the same purpose. Despite Samsung being a large company, it has collaborates with other companies in providing of quality services to clients. Through this minimization of resources, there is maximum profitability in the company. Where joint ventures exist there is low profit share as the profit earned id evenly shared compared with the investors’ contributions. This kind of venture reduces the amount of loss incurred is usually shared by the parties (Michell and Tony 117). This minimizes the probability of liquidity. Joined venture called the partnership is always highly recommended as they are usually exempted from paying some taxes thus being a cheap mode of a business venture. Joint Ventures with other Companies The company has collaborated with companies like Google in the extensive offering of their extensive services. The companies usually sign agreements that govern their relationship in all the undertakings. This helps in controlling the activities of each and every party involved in the partnership. In the collaboration both the parties mutually benefits and suffers the losses once they are incurred. Samsung has nevertheless dominated in almost all the countries in the world. The recent venture that Samsung undertook in the USA cost the company $ 1.1billions. This has made it much extensive for the service delivery of the Samsung products and services. Their venture in the cities promotes its financial growth. Venturing in Maluuba Company has made Samsung extend its services to the United Kingdom. Maluuba is a company that helps civilians in talking of their smart phones. This is well enhanced by the smart phones producing company, Samsung. Maluuba also patent to voice recognizing systems. Samsung Crisis with Apple In a recent agreement, a Japanese court ruled in the favor of the Korean company. The two companies were involved in a battle regarding the Samsung smartphones commonly known as the galaxy series and the tablets. Apple had complained of the violation of their rights and had sued Samsung for patent infringements. They sued Samsung for lack of patent preservation and wanted compensation from the company. The case was ruled out by Japanese court on the favor of Samsung. Apple was not satisfied with the case and filed it again. After a court order in San Jose Californian court, the company, Samsung was asked to pay $ 290 million as a compensation for the damages caused. Samsung had no other obligation but to pay the fine. The agreement solved the issue of patents infringements between the two companies. Although Apple ltd complained of being paid a lesser amount compared to their $400 million that they had calculated, they had to accept the ruling of the court (Lee and Jaemin 65). Comparison between Samsung and Apple The standards of the two companies both locally and internationally seem to be much hectic and more of competitors in the world of mobile phones production. Their unique products are what make them high in the completion rank. Samsung and Apple are profit making companies that highly make it from the sale of mobile phones and tablets all over the world. The business motives of the two companies seem to match as they are all oriented in an overall growth and sustainability in the extensive services delivery to their customers. Both companies aim at increasing the number of customers and a gradual rate until they reach their maximum number. Being profit oriented is also another similarity between the two companies; they aim at improving on their profitability as their main objective in the venture is profit maximization. The companies have greatly took part in improving the living standards of the society, this has been through the creation of job opportunities all the places regardless of a company availability or not (Davis and Guy 100). This has been made easier for individuals to earn a living from the company products as some has taken selling of the company’s products as their source of incomes. Conclusion Continued innovation of more technological products is what Samsung aims. Production of quality and unique products through continued innovations. Serving the customers to attain their satisfaction is also the motive of the company in the efforts to retain its customers as well as sustainability in the field of technology. Coming up with the idea to start an electronic company that has diversified all over the world offering high quality products that are satisfying to the customers was the beginning of a successful global company. Works Cited Aras, Güler, and David Crowther. Global perspectives on corporate governance and CSR. Farnham: Gower, 2009. Print. Davis, Guy. Samsung Galaxy Tab. New York: McGraw-Hill, 2012. Print. Hill, Karen. International directory of company histories. Detroit, Mich.: St. James Press, 2013. Print. Lee, Jaemin. A Clash between IT Giants and the Changing Face of International Law: the Samsung vs. Apple Litigation and its Jurisdictional Implications. New York: Machmillan, 2012. Print. Michell, Tony. Samsung Electronics and the struggle for leadership of the electronics industry. Singapore: Wiley, 2010. 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