Samsung company analysis Essay Example | Topics and Well Written Essays - 2500 words

Samsung fellowship analysis - Essay ExampleThe market is expected to grow at 7% annually world-widely between 2012 and 2015 with the 3D TV product category as the fastest growing segment in the industry. Sales in consumer electronics recorded a 10% growth in 2011 (almost $965 billion) from a 13% sales growth in 2010 ($875 billion) (Reportlinker 2013). One of the leading consumer electronic brands in the industry is Samsung Electronics, part of the Samsung Group which is headquartered in Seoul Korea. The company registered revenue of KRW 145,044,766 (USD 129,666,338) in the 3rd quarter of 2012 (latest figure available) and had been experiencing an average increase of net profit of 50 % since 2009 (Data Monitor 2011). The company occupies the top position in the television and monitor product category and the worlds largest producer of DRAM, SRAM, and flash memory. It is also involved in the manufacture of other consumer electronics product much(prenominal) as smartphone, computer t ablet and home appliance. According to its CEO, Samsung prides as the fastest in commercializing original technologies where innovation is encouraged by holding competition between four main divisions--semiconductors, telecommunications, digital media and flat-screen panels on who could best deliver the most innovative product that made the company a market leader in color TVs, VCRs, liquid-crystal displays and digital memory devices (Foroohar 2004). II. Environmental/back ground Analysis The external environment of Samsung is highly competitive (see appendices). Industry players are alship canal looking for for ways to innovate their products and ways to cut on their prices to make their product more attractive to the consumers. In addition to it, they are also looking for ways to develop new products that would debunk existing products such as the case of Sony Walkman that became obsolete with Apples iPod. Suppliers are also used as strategical weapon to leverage companies again st competitors. In sum, the consumer electronics industry is one of the most competitive industries because many players wanted to cash in on its phenomenal growth. III. The Company privileged Analysis Samsung has undoubtedly strong brand recall. This is substantiated by Fortunes ranking of Samsung Electronics as the second most admired company in global electronics which bids well for Samsung in its position in the market. A strong brand recall provides a company a strong competitive edge because consumers execute to patronize brands that they trust. Research and development is one of the strongest if not the strongest component of Samsung Electronics as a company. This constant focus on research and development enabled the company to decease one of the leading brands today from being a nuisance brand in the nineties. This penchant for research and development has been the companys practice since 1990s particularly during the Asian Crisis where it was the only activity in the company that Samsung did not cut on cost. It continued its focus on R&D that in 2010, it spent as much as 5.9% of its total revenue in research. This focus in R&D did not only help Samsung to shadow certain product categories but also helped the company to launch new products recently and contributed to its success signfiicantly. Its effort and allocation of its resources