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Samsung Unveils 6G Spectrum White Paper and 6G Research Findings
Company’s vision and plans to prepare for the next-generation communication system.
Samsung Electronics today released a white paper that lays out the Company’s vision for securing global frequency bands for 6G, the next generation communications technology. The paper, titled “6G Spectrum: Expanding the Frontier,” 1 discusses ways to obtain the spectrum needed to achieve the company’s 6G vision introduced in a white paper released earlier in July 2020 .
“We have started on our journey long ago to understand, develop and standardize the 6G communications technology,” said Sunghyun Choi, Executive Vice President and Head of the Advanced Communications Research Center at Samsung Research. 2 “We are committed to taking the lead and sharing our findings to spread our vision to bring the next hyper-connected experience to every corner of life.”
6G Spectrum: Expanding the Frontier
6G would require spectrum with ultra-wideband contiguous bandwidth ranging from hundreds of MHz to tens of GHz to enable new services such as high-fidelity mobile holograms and truly immersive extended reality (XR) that are characterized by ultra-high speed communications and large amount of data. There is also growing demand for greater coverage. In response to these requirements, Samsung proposes considering all available bands for 6G, from low-band under 1 GHz, to mid-band in the 1-24 GHz range and high-band in the 24-300 GHz range.
It also highlights the importance of securing new bands for commercial deployments of 6G, as 5G networks will still be operational when the 6G deployment starts. The mid-band within the 7-24 GHz range is a candidate that can support faster data speed and reasonable coverage. The sub-terahertz (sub-THz) band in the 92–300 GHz range is being considered for support of ultra-high speed data rate. The white paper also mentions the refarming of existing bands used for 3G, 4G and 5G networks to 6G operation as another way to obtain all the spectrum necessary for 6G. In addition, it notes that research on forward-looking regulations and technologies on spectrum utilization is essential to provide efficient and flexible support of 6G and other services with the limited spectrum.
Recent Findings on 6G Candidate Technologies
Along with the release of the 6G spectrum white paper, Samsung also highlights its research findings on some of 6G candidate technologies – specifically about sub-THz band communications, reconfigurable intelligent surface (RIS), cross division duplex (XDD), full duplex, artificial intelligence (AI)-based nonlinearity compensation (AI-NC) and AI-based energy saving (AI-ES).
Sub-THz is considered a spectrum candidate for 6G communications, which is expected to support the data rate up to 1 Terabits per second (Tbps), 50 times faster than 20 Gbps of 5G networks. Samsung successfully demonstrated 6 Gbps data rate at a 15 meters distance indoors in June 2021, and 12 Gbps at a 30 meters distance indoors and 2.3 Gbps at a 120 meters distance outdoors the following year.
RIS can improve the beam sharpness and can steer or reflect the wireless signal to a desired direction with the use of a metamaterial surface. It can reduce the penetration loss and blockage of high frequency signal, e.g., mmWave. Samsung demonstrated that their RIS lens technology can enhance the signal strength by four times and the beam steering range by 1.5 times.
XDD can improve the propagation distance of uplink signal up to two times in the TDD system by enabling the continuous uplink transmission in a small portion of the system bandwidth. Hence, XDD is capable of dramatically enhancing the coverage of the TDD system often used in high-frequency bands. Samsung demonstrated its core technology, self-interference cancellation at the base station.
With full duplex, the data transmission and reception can take place simultaneously using the same frequency so that the data speed increases up to two times. Samsung carried out a successful trial of the full duplex in the mmWave band with a base station and a terminal 100 meters apart, demonstrating the self-interference cancellation of over 114 dB and 1.9 times improvement in the data rate.
AI-NC utilizes AI at the receiver to compensate the signal distortion caused by the nonlinearity of a transmitter’s power amplifier and hence, can significantly improve the coverage and quality of high-rate data signals. Samsung demonstrated 1.9 times improvement of the coverage for high-speed uplink data and 1.5 times improvement of the transmission speed for a given coverage.
AI-ES capitalizes on AI to minimize energy consumption at the base station by adjusting the parameters controlling the power on/off of selected cells depending on traffic load, without affecting network performance. In a real data-based replicated simulation of base stations, Samsung applied AI-ES to demonstrate an energy saving of more than 10%.
Samsung plans to share more details and the findings of its 6G research at the company’s first Samsung 6G Forum ( samsung6gforum.com ) scheduled on May 13, 2022.
For more information on ‘Samsung Tech Forum’, please visit Samsung Research website at research.samsung.com/events .
1 Samsung’s 6G spectrum white paper is available for download at research.samsung.com .
2 Samsung Electronics’ advanced R&D hub, which leads the development of future technologies for its Device eXperience division
TAGS 6G 6G Vision 6G White Paper Advanced Communications Research Center Samsung 6G Forum Samsung Research
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- Samsung Electronics Hosts Its First-Ever 6G Forum To Explore the Next-Gen Communications Technologies
- Samsung Electronics and University of California Santa Barbara Demonstrate 6G Terahertz Wireless Communication Prototype
- Samsung Researcher Named the Chair of ITU-R 6G Vision Group
- Samsung’s 6G White Paper Lays Out the Company’s Vision for the Next Generation of Communications Technology
- [What’s Next in Communications Technology?] ① Paving the Way for a New World of Experiences
- Samsung Researcher Elected as the Chair of 3GPP Radio Access Network Working Group 1
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The Analysis of Strategic Management of Samsung Electronics Company through the Generic Value Chain Model
by Khuth Chong
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We explore how to expand the boundaries in spectrum for 6G
Samsung Electronics Company: Information and Products Essay
Background information, products offered by samsung electronics company, launch of samsung galaxy s4.
Samsung is a South Korean corporate entity that engages in diverse commercial activities around the world. During its inception in 1938, the organization sufficed as a trading company (Schein 2012). According to Lee Byung-Chul, its founder and inaugural chairman, there was need for an organization that catered for numerous needs that characterized human existence during that period. The organization sought to establish operations in lucrative areas of interest within the global economic landscape (Schein 2012). The company ventured into diverse areas such as manufacturing, construction, insurance, hospitality, and retail distribution. Involvement in such areas ameliorated the company’s stature as a leader in global commerce and industry. In the late 1960s, the company initialized operations in development and distribution of electronic goods (Schein 2012).
Following the demise of its founder and chairman, Samsung split into four corporate entities that would spearhead its clamour for dominance in diverse areas of interest. The entities included Samsung Group, Shinsegae Group, CJ Group, and Hansol Group. The company has several subsidiaries that coordinate business undertakings across the world. Samsung Electronics Company Limited is an example of its subsidiaries that continue to achieve unprecedented success in contemporary commercial undertakings (Schein 2012).
Samsung Electronics Company Limited continues to expand its operations into new market across the world. By the end of 2013, the subsidiary had 236, 000 employees. These employees contribute to daily operations that characterize existence and propagation of this corporate entity in contemporary corporate landscapes. Samsung Electronics Company is a competitive organizational entity that offers solutions in realms of technology and relevant devices that suffice in this area of interest (Schein 2012). It focuses on innovation and customer innovation at all times.
All its products are usually relevant and cognizant of prevailing needs in the market. Samsung Electronics Company operates over 200 subsidiary outlets in 80 countries. This gives it competitive advantage over other players in the market. This has contributed to recurrent profitability and progress in the market. For instance, the company’s profits in 2012 totalled to USD 22.8 billion (Schein 2012).
Samsung Electronics Company limited is known for its diverse products and services that guarantee customer satisfaction. Most of its products are innovative and compliant with recurrent needs in the market (Hughes 2011). Through extensive market research and product development, the corporate entity creates products that fulfil needs that manifest among its customers. The company offers home and digital appliances under the Consumer Electronics (CE) division (Hughes 2011). This segment also consists of printing solutions and medical health equipment. Samsung Electronics Company also offers visual display solutions through its innovative designs and product development regimes (James 2005). Under this segment, the company offers digital television sets and other appliances with innovative features.
IT & mobile communications division is the largest and most lucrative (James 2005). This division embodies mobile communication devices, network solutions, and digital innovation and imaging. This segment is the current leader in development and sale of Smartphone. Through its GALAXY series, this division has managed to edge out competition from similar companies in the market. Before the launch of Samsung Galaxy S4, Samsung had Galaxy SIII that had features similar to those of Galaxy S4 (Robertson 2013). Although the previous product had similar design to that of Galaxy S4, its hardware was different and less effective. It did not support certain vital operations that suffice with regard to Samsung Galaxy S4. Samsung Galaxy S4 possesses software features and capabilities that manifest in its ability to support modern innovations in communication and telephony technology (Robertson 2013).
Samsung Galaxy S4 was launched in Newyork on March 14, 2013. During its launch, the company displayed its android capabilities and other features that made it better than Samsung Galaxy S III (Kelly 2013). The launch was colourful and well orchestrated because it aired in television stations around the world. The inauguration created impetus for adoption and propagation of technological advancements that add value to human existence. Although the gadget was launched in March of 2013, its availability in the market materialized towards the end of April 2013 (Kelly 2013). The company availed it to markets in over 150 countries. Its market reception was positive because it recorded high sales.
According to market surveys, Samsung Galaxy S4 recorded highest units of sales in the history of Samsung Electronics Company. It was necessary for the company to launch Galaxy S4 because existent gadgets did not satisfy consumer needs within the market. After conducting market survey and research, the company discovered discrepancies that necessitated creation of a superior product (Kelly 2013). For instance, there was a high rate of technological advancement in realms of communication and telephony services. Therefore, it was important for Samsung Electronics Company to develop a product that aligned with prevalent needs within the market (Kelly 2013).
As earlier mentioned, Samsung Electronics Company is a global corporate entity that operates in diverse areas of interest within the market. Its operations are controlled from its head office in Seoul, South Korea (Schein 2012). Its innovative and focused approach to business enables it to overcome numerous challenges that affect businesses in contemporary settings. The organization has operations in lucrative areas of interest within the global economic landscape. The company accentuates diverse areas such as manufacturing, construction, insurance, hospitality, and retail distribution. Involvement in such areas ameliorates its stature as a leader in global commerce and industry (Schein 2012).
Hughes, A 2011, Samsung Overtakes Apple as top Smartphone Maker . Web.
James, A 2005, Demystifying the Role of Culture in Innovative Regional Economies, Regional Studies , vol. 39. no. 9, pp. 1197-1126. Web.
Kelly, H 2013, Samsung Galaxy S4 Named Top Smartphone by Consumer Reports. Web .
Robertson, A 2013, Galaxy S4’s ‘S View Cover’ Shows Phone Notifications Through a Cut-Out Window . Web .
Schein, E 2012, Organizational Culture and Leadership , San Francisco, Routledge. Web.
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Samsung Electronics Company Profile
BACKGROUND AND HISTORY
The company I am going to consider for my case analysis is the Samsung Electronics Company Limited, its website is http://www.samsung.com and it operates under the Consumer Electronics industry (Rhee, 2020). Globally, the South Korean-based company engages in device solutions, mobile communications and information technology as well as consumer electronics businesses. The company deals in many products which are not limited to audio products, virtual reality, wearables, tablets, mobile phones; home theatres and TVs; LCD and OLED panels; printers, monitors, system LSI products, chrome books, computers, laptops; home appliances, e.g., heating products, vacuum cleaners, dryers, dishwashers, microwaves, cooktops and hoods, air purifiers, ovens, air conditioners and refrigerators.
Some of the key timelines and events in the history of Samsung Electronics Company Limited are 1938; the company was founded by Lee Byung-Chul (Chnag, 2010). In the 1960s, the company is born as a branch. As at that point, Samsung starts the acquisition and establishing of diverse business entities, e.g., department stores and life insurance companies. In the 1970s, the company starts expanding to the international market. In the 1980s, a merger with Samsung Semiconductors and Telecommunications sees Samsung become a major player in the international market. In the 1990s, the company becomes a global conglomerate and turns into a tech world major competitor. In recent years, the company is South Korea’s largest conglomerate. The current structure of the Chief Executive Officer (CEO) of Samsung Electronics Company Limited sees three individuals at the helm, Dong Jin Koh, Hyun Suk Kim, and Kim Ki Nam. A fall by 5.4% in revenue from 2018 was recorded in 2019 which represents $194.43 billion in revenue. Meanwhile, the operating profit was $24.43 trillion which represented a fall by 53% from 2018 (Haizar, 2020).
ANALYSIS VIA PORTER’S FIVE FORCES MODEL
The leading position of the Samsung Electronics Company has been sustained owing to its technological innovation focus. Brand image, marketing, supply chain and advanced technology are some of the company’s core strengths. The reason for the growth of Samsung’s competitiveness and profitability lies in its marketing strategy. Products’ quality and customers are the main focus of their strategy (Jung, 2014). Yearly, brand and products promotions are conducted using huge sums of money. Over $1 trillion was used in 2018 in advertising and sales promotion. This serves to cement Samsung’s position as a global leader. Companies in the industry can also use this strategy to boost their sales and brand image. Distributors and suppliers form a part of a more extensive value system in a firm’s value chain according to Michael E. Porter. The managers are forced not to view the value chain steps as a cost but as important steps towards value addition of final services or products.
- VALUE CHAIN ANALYSIS
These activities comprise producing and selling merchandise to the focus clientele. These activities can improve the company through; inbound logistics, operations, outbound logistics, sales, and marketing.
These activities facilitate and coordinate the primary activities. The company can benefit from these activities through; firm infrastructure, human resource management, technology development and procurement.
- PORTFOLIO MANAGEMENT AND THE BCG MATRIX
The company’s analysis using the BCG matrix is as follows:
- Cash cows. The cash cow for the company has been identified as the home appliances.
- Tablets and mobile phones manufactured by the company can be viewed as the stars.
- Question marks. The Galaxy 7 has been identified as a question mark by the company due to its overheating battery.
- The galaxy smart watch has continuously been a source of losses of company since it has bot become a major hit in the market.
COURSE OF ACTION RECOMMENDED
If I was in a position to advise the company, I would advise it to utilize the pricing strategy. A large customer base and a brand’s competitive strength are fostered by this strategy. The company should diversify its merchandise to include products for high-end and low-end markets.
The case study compiled is informative and one can learn that as the electronics industry is continuously growing, Samsung Company ought to embrace practices and tactics that help it maintain its existing competitive edge.
Chnag, J. H. (2010). Samsung Founding Chairman Lee Byung-Chull’s Place in Korean Business Management. SERI Quarterly , 3, 58.
Haizar, N. F. B. M., Kee, D. M. H., Chong, L. M., and Chong, J. H. (2020). The Impact of Innovation Strategy on Organizational Success: A Study of Samsung. Asia Pacific Journal of Management and Education , 3, 93-104.
Jung, S. C. (2014). The analysis of strategic management of samsung electronics company through the generic value chain model. International Journal of Software Engineering and Its Applications , 8, 133-142.
Rhee, I. Y. (2020). Engagement and integrity as the core of communication with examples from Samsung Electronics. Science Editing , 7, 73-77.
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Samsung Research Paper Sample
Type of paper: Research Paper
Topic: United States , Market , Products , Company , Marketing , Politics , Samsung , Business
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Samsung is a multinational company which was started in 1938 in Seoul in South Korea. Over the years the company has entered many industries in a view to diversify to reduce risk and also improve its profitability. These industries include construction industry, insurance industry, ship making, textile industry, motor industry, electronics and securities. However I will focus more on the electronic industry which Samsung is mostly recognized for worldwide. The company is driven by innovation and that is the reason why it has managed to stay ahead in the competition. It is the number one producer and seller of smartphones in the world and closely comes second in the U.S after Apple. In recent years Samsung has been producing a range of products in the U.S market which included the Samsung S III smartphone and the galaxy note which were received very well in the market. The smartphone Samsung galaxy S III sold more than 10 million units in less than a month. As a multinational company Samsung is ahead of the pack because of innovation, high quality products and has a sense of improving people’s lives. On top of that the company does not target a specific group of consumers. Its products and mainly the electronics target the entire consumer regardless of the age. It is safe to say that products by Samsung are more cost friendly compared to products by other electronic companies and as a result its products sell more in the world compared to other companies. For example in Asia where income is far less than Europe and America, Samsung products are well received than those of Apple and other electronic companies. There some legal, political, technological and accounting aspects in relation to Korea and U.S. There are some major differences between how the business is carried out in the U.S and in Korea. These differences in laws have in some instances led to Samsung Company facing challenges to penetrate the United States market. This laws place restrictions on products of companies that are dimmed to bring extreme competition to locally manufactured products. Though the United States is a very lucrative market because of high per capita income and fast moving products a company like Samsung may face many hurdles when trying to enter the market. There a quotas placed by the law to support local firms. Last year Samsung was sued by Apple for infringing on its patents. The court upheld that Samsung should pay US$1.05 billion to Apple for the violation of the laws. There is no place in the world where copying of someone’s idea is considered lawful, but in this case I think Samsung had its own innovations that the company considered its own creation. However, the creation turned out to be similar to Apples. Such a lawsuit discourages Samsung to conduct business in the U.S. There is the political aspect in comparison of Samsung in the U.S and the Korea. I presume that there is a lot of support for a Home grown company. There is also opposition of a foreign company that would be seen to bring competition that would make growth of local companies to be difficult. Some people would term the court case between Samsung and Apple as political. In 2012 a court in Korea banned some sale of Apple products in the country because it was said that apple had infringed on patents of Samsung. This shows that there is a political twist in this court battles. Concerning accounting the principles used in Korea might not be similar to the ones used in United States. This makes it hard to prepare books of accounts of a company whose headquarters is Seoul to comply with the financial reporting laws in the U.S. Foreign companies from Korea tend to fill management positions with their own people from their country so it becomes difficult at first to understand the accounting policies of the foreign country. There is the issue of cultural factors between Samsung in the U.S and Korea. I presume that most of the employees in Samsung Korea are local people who are citizens of that country. It is well known that employees are happier working in their home country because they are used to that culture. On the other hand Samsung based in United States has a multicultural set up. This is because their company is a foreign company and its employees come from different countries and as a result there would be issues like language barrier and low output of foreign workers because of the new culture. Implication of this change of culture would definitely be on the output of worker trying to cope in the new country. In the U.S.A the law is adhered to, so a foreign company must ensure that ethics are looked into and that no workers’ rights are violated. Samsung based in U.S has to comply with all the laws regarding to ethics. On the other hand Samsung in Korea can choose not to adhere to ethics or laws’ regarding ethics since it is based in its home country where it will not be pressurized as compared to the U.S.A. International trade policies are set to regulate trade between two countries. These policies can either discourage or encourage trade depending on how they are applied by the two countries. Samsung that is based in the U.S.A must comply with trade policies as set by U.S.A.Some policies may include high quality and safe products, manufacture of environmentally safe products, companies are expected to hire technical experts to explain foreign regulations. Construction of industries or facilities that meet safety standards. All these increases cost of Samsung Korea are trying to set up in U.S.A and this discourages trade between the two countries. However Samsung based in Korea doesn’t face these challenges so it opts to export its products to the U.S.A. In comparing Samsung in USA and Korea, economic and financial issues that arise on currency exchange and also financing option includes the fluctuation of currency against the dollar makes it hard to estimate future earnings of the company .a company operating outside its home countries may find it hard to reconcile its financial reports of the fluctuations. In relation to financing option, Samsung may find it difficult to finance its projects when it is based in U.S.A. the reason being it’s hard to be listed in the stock exchange. It’s hence not easy to access capital for operating and expansion. Human resource is an important aspect to a company’s growth and achievement of its growth. A company like Samsung will need highly trained, innovative, efficient and hardworking personnel to compete favorably with other companies of its caliber such as Apple to maintain its competitive edge in the market in USA. Hiring highly trained and quality personnel comes at a cost that translates to high operating capital. In the U.S.A there are many electronic products manufacturing companies that compete for the same workforce and to attract the best of the lot it has to remunerate competitively. These results to increase in operating capital which reduces the profits. However, Samsung in Korea may not encounter this problem because it is the dominant electronic manufacturing company. The key decisions made in regarding the operations of Samsung in Korea and that of USA have had substantial implication on product marketing. The choice made by the management in Samsung has favored its appreciation in the local and foreign market. It choses strategic locations for its products like the U.S where there is high pa capita income this enables its products to move. Alternatively it’s able to produce high quality products. The products that are produced in Samsung Korea and US are almost the same because US Company is a subsidiary of Korea and all products that are produced in Korea are also exported to America. The price however differs because Samsung Korea has dominated the Korean market and operates in a monopolistic market while Samsung US operates in perfect competitive market and therefore charges low prices for its products as compared to Korea. The Samsung US also engages in heavy advertisement as compared to Korea because of the many competitors they compete with as compared to US Korea. Samsung Korea is located in Korea which is also headquarter of Samsung and where major decisions are made and Samsung US is just a subsidiary and receives orders from the senior management which is based in Korea.
Chang, Sea Jin. Sony versus Samsung. Singapore: John Wiley and Sons, 2008. F.Bradley. Bussiness and Economics. New york: Financial Times, 2005. Giudice, Manillo del. Knowledge of the Family Bussiness:The Governance and Management of Family. London: Springer, 2011. Michell, Antony. Samsung Electronics and Struggle for Leadership of Electronics Industry. Singapore: John Wiley and Sons, 2010. Rivera-Batiz, Luis A, and Maria-A Oliva. International Trade: Theory, Strategies, and Evidence. Oxford [u.a.: Oxford Univ. Press, 2003. Print.
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Strategic Analysis of Samsung Electronics Co. Ltd
Within the current fast-growing business environment, it is crucial to examine the fundamental role of the strategy that serves as the determining factor regarding the future of a particular organisation. A strategy defines the long-term direction of an organisation and encompasses the process of managing people, relationships, and potential resources, which is why it is referred to as strategic management. However, the core elements of strategic management differ according to the scope of the business, the target audience, location, strategy, financial budget, and human resources. As such, management strategies vary in small businesses, large multinational corporations, and non-profit organisations. Therefore, for the more comprehensive view on the strategic development and management of an organisation, the large international company, Samsung Electronics Co. Ltd, is chosen for the following in-depth strategic analysis.
When considering the strategy as a design approach, it is based upon two critical assumptions in terms of the manager’s work responsibilities. More specifically, managers should adhere to a rational decision-making strategy and focus on the optimization of the economic performance of their company. Furthermore, a strategy is also considered as the “deliberate intention of the leader” who is integral to the strategic vision of the organisation (Johnson, Whittington and Scholes, 2011, p. 398). Thus, a strategic leader takes a dominating position over the strategy development process. With that said, this strategic analysis provides a detailed study on Samsung Electronics, which is one of the leading multinational corporations in the economics sector. The main objective of this analysis implies a critical review of the external and market environments, evaluation of the company’s essential resources, and identification of the potential and future challenges of the company.
The Analysis of External and Internal Market Environments of the Company
Samsung Electronics is an international company and one of the global leaders in the technology sector, electronics and electrical equipment industry, and it ranks 15 in the Fortune Global 500 Companies. It is considered the second-largest technology enterprise that produces and provides electronic devices (Lee, Lee and Heo, 2015). The company is headed by a trio of CEOs, Ki Nam Kim, Hyun Suk Kim, and Dong Jin Koh, with the corporate administration office based in Suwon, South Korea. Samsung Electronics is a large multinational corporation operating on the global level through 169 subsidiaries.
Samsung is widely recognized on the international level for its transformative advancements in digital technologies. Starting as an analogue-driven product line, the company became a universal leader in technological innovation. As of today, Samsung Electronics positions itself as the world’s largest smartphone and mobile phone manufacturer. The company currently produces more than a hundred products of numerous varieties and models and involves operational branches in approximately 79 countries (Knöpfle, 2016.)
The company consists of three commercial divisions, including Consumer Electronics (CE), Information Technology & Mobile Communications (IM), and Device Solutions (DS) with the sub-division, such as Semiconductor (Semicon) and Display Panels (DP). In 2015, Samsung engaged “325, 677 employees in 80 countries, with 6 design, 34 R&D (research and development), 38 production, and 53 sales & distribution centres” with the key location across the world (Razdan, 2017). In 2018, the company withstood a challenging year when its industry-leading smartphone business encountered increased competition from Chinese manufacturers, including Huawei. Such smartphone competition lowered Samsung’s position in the market and made the company shut down one of its Chinese manufacturing plants. Despite the production outcomes, the South Korean technology leader managed to achieve the 4.5% rise in 2018 revenues compared to 2017 and increased its profits by 9.1%.
Analysis of the External Environment
Samsung Electronics provides the electronic devices and computing industry, which is marked by high growth rates and increased turbulence. According to Razdan (2017, p. 2), these factors are mainly determined by the “speed of technological obsolescence” and the prediction of Moore’s Law. This implies that companies in this sector have to put major investments into R&D and launch new products permanently. Despite the stabilized industry production growth, which demonstrates that it is on the point of reaching maturity, this sector still faces high turbulence because of technological advances, including OLED (Organic LED) display panels.
Samsung Electronics holds Eco-Council and working-level committees, whereby environmental experts and managers gather to share ideas about technological and regulatory trends for developing highly energy-efficient products. The company regularly monitors trends in domestic and international privacy and personal data protection and works on response plans to adjust to new or modified laws.
More specifically, this analysis reviews the external market within four significant sectors that define Samsung’s position in a global arena in the electronics business. The Korean conglomerate is the worldwide market leader in consumer electronics sectors, specifically in TVs with an international market share of 21.6% (Razdan, 2017). The industry encompasses other household equipment as well, such as refrigerators, washing machines, microwaves, and many others, which directly depends upon geographical scope. The market leader’s share in this sector comprises not more than 20%. Samsung Company is also a leader in the smartphones market, with a global market share of 21%. With the semiconductors, the company takes a leading position with a global market share of 45.3% in DRAM, considering that three companies govern 90% of the market (Razdan, 2017).
Samsung is the world market leader with 37.5% of the global share in NAND, where six companies control the total market (Omer, 2019). However, in the display panels sector, LG Electronics is leading the overall market. Samsung Company, in turn, is the market leader in the small display panel category with a 23% market share. Regarding the new technology OLED display panel area, the Korean company is once again leading the market with over 90% market share (Razdan, 2017). Nonetheless, Samsung is in a constant encounter with the international market competitors that also pursue a fast-growing development and focus on technological innovations, such as LG that launched a new OLED production facility. In addition, the analysis of the external environment includes a PESTEL analysis framework that is used to comprehend better the scope of external factors that, in some way, affect the competitive climate within the industry.
Analysis of Internal Environment: SWOT Analysis.
A Critical Evaluation of the Company’s Key Resources
Samsung Electronics presents itself as a global player since its main ambition implies establishing a sustainable competitive position in the key markets across the globe. Therefore, as a global player, the leading Korean conglomerate is focused on building an integrated business system of designs that are distributed through the key markets. To reach such international recognition and become a leading multinational manufacturer, the company employs and enhances its key resources that help achieve successful strategic business outcomes. As described by Jung (2014), companies need to implement innovative strategies and open management approach, which eliminates all the restrictive and discriminatory institutions and practices to compete on a global scale. As such, the potential set of critical resources that the company obtains, including human resources, technology, marketing manufacturing, and design departments, dramatically increased their significance as competitive resources, more than ever before.
As reported by multiple researchers, Samsung Electronics is notable for using such essential resources very effectively. For this reason, several management scholars and practitioners used Samsung company as a successful exemplary case of the leading global company. When speaking of the company’s resources that define the potential and the future of the enterprise, it is also important to examine the concept of innovation momentum of the organisation. It is considered the impetus to autonomously increase energy and speed up the growth, which contributes to the reduction in using the resources and achieving high profit. Apart from transferring the company’s novelty techniques, supporting the access to the foreign market, and setting up IT infrastructure, Samsung Company also implemented suppliers’ innovative capability. This was accomplished through “financial support, plant advancement, technology development, and human resource development” (Lee, Lee and Heo, 2015, p. 5). With that said, Samsung Electronics’ innovation impulse reached a well-balanced arrangement of philosophy, conditions, and strategy for the past twenty years.
Key Company’s Resources
It is apparent that the main focus for Samsung, as one of the global market leaders, is to remain competitive in the international market instead of earning short-term instant results. Hence, Samsung Electronics employed and developed the business philosophy aimed at reinforcing the suppliers’ potential and taking a leading position as an internationally qualified organisation based on transparency and a trust-oriented culture. The Samsung Corporation reorganised its relationship with suppliers by transforming its management system. Lee, Lee and Heo (2015) analyse three main stages that led the multinational company to the successful supplier partnership strategy using the company’s potential resources. The first step implied framing support on the critical company’s resources, including finance, technology, and human resources. As the second step, Samsung Electronics developed an equitable trade system to carry out transparent management. This includes managing the company’s resources, such as a change in commodity prices and technology deposits. The third stage involves exerting efforts to form a confidential relationship for enhancing mutual partnership.
Human resource management encompasses the support activities section in terms of Porter’s well-known value chain model. Samsung Electronics adopts open management in the context of the personnel management system. According to Jung (2014), the key aspect of open human resource management implemented by Samsung is promoting equal opportunity, prioritizing skills, and recognizing human potential. Such an open approach to human resource management indicates respect to the autonomy and creativity of employees, as well as excluding any obstacles in systems and practices to improve the efficiency and competitiveness of the workforce. At the same time, this strategy implies facilitating transparent management to grow in compliance with their customers.
To be more specific, such a strategy regarding human resources entails that all the employees should be provided with equal opportunities available without any discrimination and restrictions. Therefore, compensation and promotion are openly distinguished according to the individual’s skills set. The payment is, thus, based on employee’s performance and performance-based promotion. One should note that human resource is of the utmost importance to Samsung’s strategic success. By establishing a new management system, Samsung moved ahead towards its primary objective of becoming a global first-class company based on its “People first” management philosophy (Fig.1). As a result, the improved HR promoted a new management system through capital accumulation in human resources, and it also changed the awareness and actions of employees.
Supplier Partnership Strategy
Concerning the relationship-building process in HR, Samsung Electronics’ CEOs visit suppliers regularly to take into account their problems ( Samsung Electronics sustainability report , 2019). In addition, the executive director incorporates open communication with the company’s suppliers through conferences and a cyber petition system. Samsung’s supplier partnership strategy helped the company to enhance its level of competitiveness in the manufacturing chain and obtain efficiency and flexibility by discovering and building new suppliers and integrating their ideas.
Samsung Electronics established its fundamental philosophical basis targeted at procurement improvement, fair management, and social trust management for developing a successful supplier partnership strategy and putting it into practice. Considering such a critical starting point for this strategy, the Korean multinational corporation effectively handled its management innovation process due to internal innovation and partnership with sub-contractors. Therefore, the successful strategic actions towards strengthening supplier partnership resulted in the incorporation of subparts group and process technology.
Financial and Technology Resources
Financial resources of the particular enterprise are engaged in the firm infrastructure’s operations in the face of financial assets that are responsible for the support activities in the value chain model designed by Porter. Financial support regarding the company’s strategic management consists precisely of “development fund, co-prosperity fund, and cash payment to ensure suppliers’ liquidity” (Lee et al ., 2015, p. 5). Concerning the support of technology resources, it was conducted through customized support that Samsung Electronics allowed for assessing outstanding manufacturing sites and advised on advancing productivity and quality (Fig. 3). The company also supported the fresh patent technology transfer and environmental integrity. Moreover, Samsung Corporation aimed for achieving stability in managing its partners by organizing training and seminars for the personnel and future managers.
Company’s Core Competencies and Value Chain Analysis
Apart from the examined resources owned by the company, including talent and investments, there is another critical factor that defines a company’s success, such as the company’s core competencies. Any global organisation should possess vital competitive forces in both technology and process sectors to become leading in the marketplace. Within the electronics and computing industry, the companies aim for product affordability, its key features, and product quality.
Razdan (2017, p. 5) determines the critical success factors that facilitate these main requirements, including “low cost of production, investment in production facilities, high investment in R&D, and availability of talent.” The Samsung Company’s competitive advantages are based on RBV analysis conducted by Razdan (2017, Fig. 3). First, they include technology research and product development capability encompassing 34 research and design centres throughout the world. The company is also influential in its human resources talent, including “more than 50,000 research scientists, engineers and product designers,” which is 16% of the personnel (Razdan, 2017, p. 6). Furthermore, its key competence implies the brand value of Samsung as a superior company, with a valuation of US$ 51.81 million and 7th position at the world level in 2016.
When Samsung was entering a global first-class status, the company expanded upon its management philosophy. This includes elaborating on advancement in procurement-related activities, equitable and social trust management to the increase in the international proficiency, transparent approach, and creating a trust-based corporate culture. Moreover, the validated supplier partnership strategy and its systematic practice helped the organisation achieve common growth in the global market with the corporate partners.
Samsung Electronics also remodelled its procurement process team into a “partner collaboration department” that was expanded to a partner collaboration centre in 2011 (Lee, Lee and Heo, 2015, p. 6). The final stage of one of the Korean electronics leaders involved a well-designed and developed business philosophy. A new ideology aims at enhancing the suppliers’ capability and taking the role of a globally competent corporation led with transparency and trustworthy culture. To maintain the competence within the overseas market, Samsung increased support for supplier capacity to address the crisis that the company confronted. For this reason, it is essential to create a value chain that integrates core competencies of all areas regarding the particular organisation.
How the Company Adds Value
Based on the company’s robust competitive advantage, it is possible to say that Samsung Electronics creates more value than its rivals do. Nonetheless, the Korean conglomerate has a significant number of competitors in the global market, including Sony, Huawei, Xiaomi, Oppo; however, Apple is yet considered the biggest rival of the Samsung Company. Within international market research, Knöpfle (2016) defines the main reasons for how Samsung adds value to its marketing process. The first reason implies that the company makes considerable investments in research and development, which promotes the release of a new phone annually. Moreover, Samsung is proved faster in launching new technology products as compared to its main rival, Apple.
This is explained by the fact that one-fourth of the international workforce is employed in Samsung’s R&D department and the second position of the company in Fast Company’s “Most Innovative Companies 2015” (Knöpfle, 2016, p. 3). Another way for adding value and enhancing business outcomes is based on combining the strategy of Japanese and American approaches (Fig. 4).
To be more specific, the Japanese are known for introducing multiple products, while Americans are engaged in the selection and the emphasis on a small product range. By intertwining these two approaches, Samsung Electronics adopts horizontal diversification and vertical integration. Hence, the multinational brand is diverse with a broad range of products and is also specialized in manufacturing. One should also mention that the application of the Android operating system is considered both comparative advantage and disadvantage, which is the most popular customizable OS worldwide.
Future Challenges for the Company and Ways to Address Them
Despite the leading position of Samsung, the external business environment keeps posing new challenges due to its rapid growth and ongoing technological changes. The modern digital era is defined by the enhanced complexity and uncertainty regarding the corporate climate, specifically in the global arena. According to Jang et al. (2019, p. 12), such a business environment implies “increasing velocity of change,” which serves as a potential challenge for modern enterprises. As such, commercial companies must build capacities by innovation to respond to the change with promptness and resilience. It is important to understand that a good harvest is highly required for multiple nurturing steps, including effective planning, risking, and enterprise development.
Furthermore, Samsung needs to follow the ongoing process of planting innovation by fresh thinking, creative ideas, scientific progress, and new technologies. Razdan (2017) suggests that Samsung Company should acquire a settled retail chain to get support in the market, thereby increasing its brand value to recover market participation. Such strategic options will help the multinational corporation achieve an increased engagement with a broad spectrum of customers. In addition, Samsung will be enabled to foresee future trends in the industry supported by a high level of confidence and will, therefore, develop innovative products and services according to these trends.
Regarding the smartphones space, the Korean company faced a critical problem when its revenue and operating profit from the mobile segment fell 7% quarter-over-quarter. The main challenges for the mobile business involved the strengthened Korean won that facilitated high prices of Samsung’s products. Also, the company addresses competition enhanced from Chinese handset makers that offer similar technology but at lower prices. Another crucial challenge was associated with particular products, Samsung’s high-end flagship product Galaxy S6, which failed to gain the sought revenue. This led the company to decrease the price of the device in only three months after its launch date, which, in turn, marked a slowdown in sales within the smartphones industry. Samsung’s key strategy to address such critical challenges is based on promoting revenue growth by implementing a double-digit margin in the mobile sector. This strategic action is achieved by rationalizing the smartphone product portfolio, capitalizing on smartphone demand, and enhancing competitive advantage through software, hardware, services, and wearable items along with the company’s smartphones.
By taking a leading position in the global market, Samsung proves its fundamental role and impact on the modern technology-oriented consumer. However, the company continually learns from its main competitors in the market. The superior corporations or the alternative cheaper technology companies pose a potential threat and, thus, encourage the Korean brand to maintain the ongoing development and focus on product innovations. A future consumer expects Samsung to create meaningful experiences and deliver the products that assist in the busy life. With the help of ambitious, focused, and long-term corporate initiatives, Samsung became the world leader in various technology segments. However, the increasing competitive factors require the corporation to focus on the development of new business strategies to maintain its dominant position.
Johnson, G., Whittington, R. and Scholes, K. (2011) Exploring strategy: text & cases . 9 th edn. Harlow: Prentice Hall.
Jang, S. H. et al. (2019) ‘Planting and harvesting innovation – an analysis of Samsung Electronics’, International Journal of Quality Innovation , 5(7), pp. 1-16. Web.
Jung, S. C. (2014) ‘The analysis of strategic management of Samsung Electronics Company through the generic value chain model’, International Journal of Software Engineering and Its Applications , 8(12), pp. 133-142. Web.
Knöpfle, G. (2016) Samsung Electronics and the global market. The history and the competitive advantage . Munich: GRIN Verlag.
Lee, J., Lee, K., and Heo, J. (2015) ‘Supplier partnership strategy and global competitiveness: a case of Samsung Electronics’, Eurasian Journal of Business and Management , 3(4), pp. 1-12. Web.
Omer, S. (2019) ‘SWOT analysis implementation’s significance on strategy planning: Samsung mobile company as an example’, Journal of Process Management. New Technologies , 7(1), pp. 56-63. Web.
Razdan, V. (2017) Analysis of Samsung Electronics’ strategy for the period 2014-2017, and development of strategic options for growth and sustainability . Web.
Samsung Electronics sustainability report: A fifty-year journey towards a sustainable future . (2019). Web.
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