Free Essay

Samsung

In: Business and Management

Submitted By jini573
Words 1612
Pages 7
Technology and electronics is the way of the ever changing world for businesses and society as we evolve into time. When we think business we think the best in product, innovation, up to date technology and the branded electronic company and where it sits in the global business world. The researcher discovered that recent records show that less than a year ago in August 2013, Samsung was ranked number one in the top ten largest electronic companies in the world as oppose to its leading competitor the Apple company ranked at number four during this time period. This ranking was based on the most revenue produced, engineering and mechanical aspects. In addition, the smart television, the smart phone, the Samsung washing machine and the company is considered to be the most admired brand in Southern Africa. (Kwon, 2013) Samsung a Korean based company that was established on March 1, 1938 in a city named Taegu, located in South Korea by a gentleman named Byung-Chull Lee. This gentleman only had thirty thousand Korean won which is equivalent to twenty-eight U.S. dollars today which is not very much at all to start a company. The Samsung name means “three stars” in the Korean language and within several decades the company progressed into a prosperous global electronics company. (Samsung Corporation, 2013) The researcher gathers that the name meaning stars is catchy and seems to be an empowerment or motivator to reach for the stars.
The evolution and creation of the Samsung Company’s success proves that hard work would someday pay off and to discover that from a small agricultural product selling company it has evolved into an innovative technological electronic company used in today’s ever changing modern society. Samsung has come a long way globally considering that they are a foreign company and that more than 72 countries in the world made them soar and rank to number one and named as the largest electronic company in the world in 2013.
Their story is evidence that this truly an international business plan that grew from a small foreign based operations of selling agricultural products to an expansive electronic and technological design which provides boundless products to many consumers throughout the world.
A company born aboard now a global leader in Smartphones
In addition, the Samsung smart phone was ranked as number one in 2013 when they launched their new product line the “Galaxy” which comes in forms of a smart phone and electronic tablet. The company plans to strengthen its position by beginning software development in Silicon Valley in California. It strives to continuously develop products that will be more powerful than the Apple Company. Lastly, Samsung does, however, use its production depth and flexibility in ways that are arguably as powerful. It makes the processors, memory chips, and cameras that are in not only their own smartphones but also in many others. (Grobrat, 2013) The Samsung Company employs over 50,000 employees and most of their technological design is spearheaded in Korea. The Samsung Company utilizes market economy, in where the prices are free of restrictions and private ownership is prime. (Hill, 52) This is evident because most of their products are branded and have a set retail price that does not change regardless of where the products are purchased either online or in a physical retailer. This provides jumbo profits for the company and their revenue is high according to sourced reports.

Essentials that make Samsung paramount in their products
The researcher believes that contributions in making this company the lead in smart phones is that the marketing strategies are utilized. The researcher views that marketing has a major impact on consumer purchases, therefore, the purchasing power is in the marketing attributes utilized. To support this the marketing of the smart phones were a high priority for the company and the leadership at Samsung drove the demand for top-quality and excellence to their employees, resulting in the leading smart phone globally. Additionally, paramount in their products is not only a factor of marketing but the involvement and research that the employees provide. After all, no company or business is successful without human capital- the skillful experienced workers provide to their employers. Lastly, the culture of the Korean people have a significant affect towards the construction and engineering of the product and pride in the fact that Samsung is a personal aspect to culture in Korea.

Exposing the negative face of Samsung and the struggle with Apple To every sweet rising moment in an international business plan is undesirable affect that will blemish success. Exposure to the negative face of the Samsung Company is their battle with the Apple Company. To support this negativity “The patent dispute between Apple and Samsung began in April, when Apple sued Samsung for copying the look and feel of its iPhone and iPad.” (Albanesius, 2011) The “I” products are branded products of Apple and the “Galaxy” is a branded product of Samsung both products are very similar and the only difference is they utilized a different software. In this particular lawsuit after Samsung had been sued by Apple, the Korean company turned and countered sued the Apple Company, which resulted in an additional effect of other foreign companies barring Samsung from selling the branded “Galaxy” products in their countries. This caused the company to fall behind from being number one, which is why the Apple Company is currently in the lead. The researcher feels that in this situation the major successful companies in a rival will face and the loyalty of Samsung to their consumers were diminished and they were brought down from being paramount. However, despite the lawsuits the Samsung Company manages to continue engineering and resourcing new innovative product lines to meet the future and way ahead for society.

The global leader now posing a risk in the land Faced with dilemmas on overcoming the lawsuits by Apple and other countries that have barred their products. This might sound overwhelming but when your origin country now poses your presence in the country viral and risky; this can pose a bigger problem. Samsung is now being viewed as a risk to their origin country Korea, for being one of two most powerful companies in the land. The Korea government expresses the concerns because for decades Samsung and Hyundai have emerged into global power leaders throughout the world. The political leaders fear that for a long period the country has focused on IT and automobiles and that these two leading organizations are taking over the country. To support this idea, “As the country’s economic dependence on the two conglomerates is increasing, concerns are that the whole country could be hit hard if the two groups face problems such as huge profit declines.” (Rahn, 2014) This will not only hurt the country but hurt the global economy as a totality. As Samsung reaches the paramount globally market the researcher feels that diversity within the country’s market needs to be reassessed and a control measurement need to be put in place. The leaders should fear because this might bring profits down for other smaller markets within the country.
The country’s leadership is reexamining the entire picture as a whole and is reassessing what needs to take effect. To add to this statement “not only small but also many large companies suffer from financial difficulties, and such firms should undergo restructuring, through which good and bad firms are sorted out.” (Rahn, 2014)
The researcher empathizes with the statement that an entire reassessment be made and undergo a thorough review because balance in the economic market will have an effect on the country’s Gross Domestic Product. Lastly, the researcher feels that this could possibly pose a potential monopoly effect if Samsung becomes a single source for some inelastic products or they buy out smaller companies. This is not comforting news and the researcher sides with the country’s leadership on the risk. In addition, this could mean that the two companies will practically be the revenue for the country. The researcher feels that other companies need to expand or the Korean government needs to place a higher tariff on Samsung until a decision is made. Diversity of markets is good starting point and will enable opportunities for other global markets external to Korea.

In conclusion, the Samsung Company started humbly in 1938 and then soared to number one decades after its establishment. Its momentous venture in making it to number one globally in electronics was a paramount landmark. Then the lawsuits and economic risks within the country became an obstacle in the road and it did not stop the company from progressing. However, the company remains one of two leading companies in their origin country and continue to account for majority of the country’s revenue. In addition, they continue to move forward and remain strong in improving toward better innovative products to meet the demands of evolving technology. The researcher believes that engaging in any business plan requires stakeholders and risks but if success is achieved the business plan will reap benefits of profits and self-pride in entrepreneurship. Therefore, revisit the Samsung Company design and evolution and take away what is beneficial and what can be learned from the obstacles faced. The researcher agrees that Samsung was a small success that evolved small and blossomed into a global expansion and hit the world successfully despite the negative aspects that developed from some of its ideas. Lastly, persevere through tough economic times and hope for better days when the worst occurs. Obstacles are not the end they are instances to remind us to revisit plans and refine products.

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