Samsung Marketing Analysis Essay Example

but to a relatively lesser extent.

Certain regions like Africa and Southeast Asia create a demanding business environment for Samsung that negatively affects their operations. On the other hand, China and India offer an advantageous business environment for Samsung to focus on.

Economic factors such as interest rates, taxation policies, economic development indicators (e.g., growth and inflation rates), along with foreign exchange rates play a crucial role in shaping the company's operations. When making decisions in different countries, Samsung considers the economic situations involving higher interest rates and inflation.The company creates appropriate policies based on the economic strength and size of target consumers, taking into account their disposable income. Additionally, Samsung invests in countries where its products are entering the market for the first time or facing a decline in developed nations. However, entering readily available markets has proven advantageous for the company.

The social environment varies among different social groups, including customs, practices, and traditions. Variations in social status can affect demand, such as an increase in pension payments due to people living longer, which is costly for firms. The aging population also impacts demand for products designed for older individuals. Samsung has successfully addressed these social challenges by establishing itself in new markets and adopting a "think global and act local" approach. However, the company acknowledges the risk of bribery when pursuing business opportunities.

Technological advancements like online markets, bar coding, and computer-aided designs have led to improved product development processes at Samsung. This has enabled them to reduce production costs while enhancing product quality. Samsung is renowned for its innovative approach to technology and its continuous efforts to integrate design technology and features into its manufacturing

processes.This paragraph highlights the importance of innovation in driving a company's capabilities and pride, resulting in groundbreaking technological inventions for the global market. Additionally, it emphasizes the impact of environmental factors such as weather and climate variations on business operations, particularly due to climate change caused by global warming. The desire to protect the environment has influenced industries like transportation, leading to the production of hybrid cars. Samsung showcases its dedication to environmental sustainability through Corporate Social Responsibility initiatives and environmentally friendly production facilities with sustainable designs. Legal factors also shape how companies operate within legal boundaries, influencing business operations and consumer demand characteristics. Government policies can raise production costs for firms through measures like minimum wage rates. In this competitive market, Samsung faces brand competition from forecasting firms but has identified potential growth in the AD TV market and developed strategies based on market predictions (Lee, 2006).The company's goal is to sell 83 million AD TVs by 2014, which would give them a 31% market share. To stay competitive, Samsung plans on launching new advanced AD TVs that don't require shutter glasses. Many of Samsung's competitors have also adopted this model. While there may be some differences in quality and price, the overall appearance of these TVs is similar. One standout product from Samsung is their 9000 class AD HDTV series, which features a sleek and slim design at 31 inches and comes with accessory packages. It offers cinema-quality AD and innovative picture excellence, along with a handheld touch screen remote control. This particular product is priced at $5,999.

Sony, a well-known Japanese corporation recognized for its web advertisements and integration of PDF documents to

enhance consumer awareness, also has an AD TV called Bavaria available for purchase at $2,999. Similar to its competitors and following Samsung's trends, Bavaria shares similar features. Sony holds a prominent position in television marketing among the top five players in the industry. The company also invests in other entertainment sectors such as film production, AMP players, and gaming consoles. Sony incorporates ideas from various organizations to enhance their current products and compete against Samsung.

Panasonic is one of Samsung's rivals who have established themselves as one of the leading performers in the television market (Lee, 2006).Panasonic aims to be the first Green Innovation Company in electronics by 2018. However, their sales have declined due to a price war initiated by Samsung. Within the television market, Panasonic's competitive brand is Vera, priced at $3350 and utilizing plasma technology. This pricing strategy raises concerns and is considered inferior to Samsung's LED backlighting.

LAG Electronics Inc., the second-ranked Korean company in flat screen manufacturing, plans to capture 25% of the AD TV market share. This would result in approximately 950,000 television sales based on their projected annual total of 3.8 million units. LAG's brand in the AD TV market targets middle-class consumers with affordable prices for their products. However, one drawback is that LAG's AD television is only AD-ready while Samsung offers an AD-enabled option.

Analysts view Samsung as a multinational company with a strong presence in global markets. Technological advancement allows them to reduce costs and improve quality compared to competitors, giving them a competitive advantage. Economies of scale further benefit Samsung by increasing production efficiency and reducing costs per unit produced. With its large economies of scale, Samsung

strengthens its position as a market leader by accessing broader markets and trading across wider geographical reachesSmaller companies face challenges due to high production costs, resulting in losses and hindering growth. On the other hand, Samsung has an advantage in terms of its labor resources. Recently, it reassigned 300 engineers from the semiconductor unit within the organization. This strategic move led to the development of high-quality products that surpassed competitors' technology (Michelle, 2010). Other companies like Sony and LAG rely on Samsung for purchasing nonconductors used in their AD market and AD television production.

Samsung maintains dominance in the AD market and stays ahead of competition through its expertise in semiconductors. The company prioritizes research and development by allocating dedicated resources and attention towards manufacturing efficient products with innovative features preferred by consumers. From 2008 to 2009, Samsung directed 5% of its income towards research and development activities while also deploying personnel for these endeavors. The success of Samsung's AD can be attributed to extensive global research conducted through various research centers operated by the company currently.

However, unlike Sony, Samsung does not have a connection with AD gaming content. Sony's association with gaming consoles such as Plantation gives them an advantage over Samsung. Additionally, Sony was also the first to introduce AD games which is a market perspective where Samsung does not have a role. This lack of involvement in the gaming industry can be seen as a weakness for Samsung.Sony surpasses Samsung due to their higher prices. Samsung's integration of semiconductor technology into their high-quality products results in higher pricing, making it challenging to attract middle and low-income consumers who make up a significant portion

of the market. To address this weakness, Samsung plans to expand its target market in 2014. However, price-conscious consumers may compare Samsung's prices with other brands and choose cheaper alternatives.

Despite efforts to enter new markets, Samsung struggles to reduce its presence in certain countries. Their concentration in Europe and North America is relatively low compared to the overwhelming influx of goods seen in the United Kingdom because they have failed to gain control over the electronic market in those regions (Farrell & Hairline, 2010).

Nevertheless, there are opportunities for Samsung to improve its product offerings by forming alliances with companies like Toshiba for semiconductor technologies. This agreement gives them access to Toshiba's extensive patents and NAND flash technology, which improves their products.

Furthermore, through the Nettling agreement, Samsung can offer movies to consumers using their BAD-PUPPY Blu-ray disc players.Samsung has successfully formed alliances to increase its market share in the entertainment sector and address weaknesses, effectively influencing consumer behavior. In order to make a significant impact on the market, it is recommended that Samsung establishes partnerships with companies like Microsoft. Seizing this opportunity will result in faster production and product diversification in the technology market, ultimately promoting brand recognition.

As a multinational corporation, Samsung faces various threats from political, economic, technological, and social factors. It is imperative for them to remain vigilant and keep pace with evolving technology to avoid product obsolescence caused by rapid advancements. Alongside technological threats, challenges for Samsung include competitor actions, changing customer needs, and demographic shifts.

One noteworthy challenge arises from ZIT, a China-based mobile device company that has surpassed Apple to become the third-ranked global handset multinational corporation (Dahln et al., 2009). The

high cost of AD TVs hinders consumers with limited finances from purchasing them; thus, Samsung hesitates to release other models. However, they are determined to ensure successful product introduction despite potential financial losses stemming from substantial investment and hindering profitability goals.

Samsung offers an extensive range of products in the AD technology industry such as LCDs, plasmas,and LED AD TVs.Samsung's most profitable item at the moment is the LED 9000, which comes in sizes of 55 and 46 inches. This TV has a sleek design that measures only 31 inches thick. It also includes a high-tech remote control that can stream live television. Customers who purchase this product can be assured that they are getting the most modern and advanced TV on the market.

In addition to TVs, Samsung offers other AD products such as starter kits, home theater surround sound systems, and Blu-ray players to enhance customer satisfaction. The prices for these products range from $1200 to $7000 in order to accommodate a wide range of clients.

Promotion plays a vital role in Samsung's marketing mix strategy. The company has invested billions of dollars in advertising across North America, Europe, and Asia. In the United States alone, Samsung dominates with a 66% share of the AD TV market and has spent $12 billion on advertising efforts. They have allocated $8 billion for advertising in Europe and $3 billion in Asia (Doodle & Lowe, 2005).

Samsung's advertising strategy involves utilizing celebrities' influence on consumers and participating in large events to showcase the advantages of their AD TVs. With advancements in technology, Samsung has expanded its online services by offering shopping deals and free shipping through their website.Customers have the

ability to read reviews and evaluate product features before making purchasing decisions. I suggest that Samsung invest in the AD video gaming industry by partnering with Microsoft Corporation, which would give them the advantage of utilizing Microsoft's OXBOW gaming console. In addition, Samsung should set short-term goals for developing gaming packages, as gaming companies experienced significant profits in 2009. Furthermore, they should continue promoting glass televisions until glass-free screens become available in order to maintain their dominance during this "glass" age and make it easier to introduce new innovations while upholding their reputation with consumers. To uphold their market dominance, Samsung should extensively research consumer preferences and invent a new product (Glowing & Smacked, 2011). Their rapid rise to success sets an example for other companies and proves that surpassing multinational corporations from the United States and Japan is achievable. Technology played a crucial role in Samsung's success; they not only adapted existing technologies but also developed their own (Glowing & Smacked, 2011). This success story serves as inspiration for executives in other companies. From being known solely as manufacturers of plain monochrome televisions, Samsung has progressed commendably by producing high-tech semiconductors (Vibrato, 2004). Due to the challenges faced in the 1980s and 1990s, Samsung implemented a reverse order policy.
However, the establishment of the World Trade Order and new economic and trading policies has changed the current business environment. In order to adapt, Samsung had to quickly make efficient decisions on various strategies. It is recommended that Samsung analyze their business activity and technological advancement for developing global strategies. Vibrato (2004) advises that these global strategies should be developed in formation but executed locally within

service markets. To acquire BOP markets more aggressively, Samsung needs to restructure its strategies and implement extreme end pricing mechanisms which have proven successful in the past.

Despite having fewer threats compared to strengths, Samsung has the potential to dominate in the AD TV market. To mitigate risks, it is recommended for Samsung to form an alliance with Microsoft for entry into the gaming market. Samsung possesses efficient labor resources contributing to semiconductor development used in AD TV manufacturing.

However, the slow rate of diffusion of AD TVs poses a significant threat to Samsung's goal achievement. Investing in gaming consoles presents a great opportunity for Samsung to increase profitability.