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Changing organization environment of Samsung


Changing business environment of Samsung


Samsung has grown to one of most significant electronics company since 1938. Since 1970’s and early on 1980’s Samsung expanded globally with diversified purpose into core technical organization. Samsung leads the digital industry with its powerful and with high progress rate along with balance.

2009 Global Market Show of 13 Percentage of different products obtainable in market. Examples -: CELL PHONES, Monitors, Semiconductor.
1970 First Black & Light (Model P-3202) creation started Samsung-Sanyo Consumer electronics.
1969 SAMSUNG-Sanyo Electronics set up (renamed SAMSUNG Electro-Mechanics in March 1975 and merged with SAMSUNG Consumer electronics in March 1977)
1951 SAMSUNG Moolsan established (now SAMSUNG Company)
1938 SAMSUNG was founded in, Korea (Taegu)

Company: Samsung

Global Market talk about is terms of sales is really as follows:

  • TV Market Share is 21.9%
  • Laser Printer Talk about is 13.7%
  • Mobile Phone Share is 16.7%
  • DRAM Share is 30.1%
  • TFT-LCD Panel Talk about is 25.7%

If we evaluate this performance to others Samsung emerges as universe innovator in at least 3 sectors which are TV, DRAM & TFT-LCD. This clearly shows us the dominance of Samsung in industry which is mainly due to its transparent policies, positive way and honest work in being a global leader. This overall performance data is extracted from Samsung’s sustainability survey for 2009 from Samsung official website.

We can clearly discover that Samsung as a company keeps growing locally and globally Korea being its regional market. This constant growth narrative essays examples of the business is mainly due to its marketing approaches which are paying off well. More details on Samsung’s operations, marketing, product line etc can be found on:

The business environment retains on changing and is normally unpredictable. So, it is extremely essential to understand and react to this changing business so as to survive and grow on the market.Proper understanding of business environment can make the business owners and businesses able plenty of to plan and apply strategies that are needed to recognize the scope of improvement, create and exploit possibilities that come on the way, retain stableness, gain competitive advantage and prepare appropriately for the upcoming problems. What sort of environment is analyzed and consequently the strategies implemented, will define the track of the business enterprise.Here With the exemplory case of samsung.

The data collected will be analysed using SWOT. SWOT means strengths, weaknesses, prospects and threats. SWOT research, is a strategic organization planning tool used to determine the Strengths, Weaknesses, Options, and Threats that exists running a business. It includes identifying the business enterprise objectives along with the internal and external factors which will probably favour the business. It might be classified into:

Internal factors — strengths and weaknesses that happen to be within (internal) organization.

External factors — options and threats of external environment.

The internal vital define factors can be categorized into strengths and weaknesses depending after their influence on organization and business objectives.The factors may include each of the 4Ps; together with personnel, finance, manufacturing features, and so on. The external factors may include macro-economic factors like — ‘technological , legal,and socio-cultural adjustments, together with changes in the marketplace or competitive position.’

According to B Kyle SWOT could be discovered as internal and exterior in relation to environment.

Strengths: It usually tells about the positives of the company. How very well we are doing in our area of interest. What’s our position before competitor?

Weaknesses: Weakness identifies area of struggle of our provider. Why are consumers not happy about particular product? Why are we not really meeting sales aim for for a particular product.

Opportunities: It really is directly linked to external environment. It may be the areas where your competitor is not good at. We have to try to make use of strengths in areas of our weaknesses. Are there any emerging trends or probability to fully capture market by introducing innovative product?

Threats: It may be financial or development difficulty. Competitor’s strength is key danger. Are competitor’s becoming good.


Strategic business tools:

SWOT analysis for Samsung


  • Strong hold in Client Electronics
  • Low margin strategy increases sales
  • Highly experienced labour availability locally & globally
  • Good focus on customer service and good marketing strategy
  • Strong management and loyal employees


  • Lack of efficiency in Laser printer sales
  • Less cost effective in PC consumable products.
  • Lack of brand recognition in cellular phone sector.
  • Poor pricing strategy
  • Lack of utilization of infrastructure in a few part of globe e.g. China


  • Can unseat main stake holders in Tv set and DRAM sectors
  • Increase product range in consumer electronics
  • Can sustain future industry using the thought of consumer taste research
  • Rapid expansion in competitive markets across the globe
  • Increase in portfolio because of acquisitions of other firms


  • Faces substantial competition from Sony and Nokia in mobile phone sector.
  • Daily entrants of brand-new technology companies
  • Impact on sales due to recession
  • Lack of technology in mobile industry threatens its position even more down.
  • Intense competition from existing businesses in PC sector.

The above info which helps in undertaking the SWOT evaluation and other graphical demonstration really helps to answer our objective concerns mostly. Although it may not provide direct answer but clarifies strategies and benefits associated with organisation performing global and domestic organization. It evidently reveals the benefits associated with proper marketing with regards to sales numbers.

PESTEL Analysis:

PESTEL analysis is one of the main tool of organization strategic management which helps in identifying the surroundings within which the company operates. It gives a clear idea about the threats, risks and opportunities that occur on the market. It can help in understanding the needs of market, it’s fluctuations, if the market is progressing upwards or downwards (i.e. growth — decline ratios) and therefore makes the businesses able to develop strategies accordingly.

PESTEL is employed as decision making tools in macro-environment. PESTEL can be Classified into:

  1. Political factors
  2. Economic factors
  3. Social factors
  4. Technological factors
  5. Environmental factors
  6. Legal factors
  1. Political factors: It’s about intervenes of the government on the economy of the united states. Political elements include areas like
  • Tax policy
  • Labour law
  • Environmental law
  • Trade restriction
  • Tariffs
  • Political stability
  • Services and items provide by the government ( merit goods ) and offerings which isn’t provided by the government (demerit goods)
  • Goodwill among foreign nations
  1. Economic factors: It includes
  • Interest rates
  • Economic growth
  • Rate of inflation (Inflation rate)
  • Rate of Exchange (Exchange rate)

For example:

  1. Cost of capital is certainly directly affected by interest rate
  2. Exporting goods and supply of goods is affected by exchange rate
  3. Inflation raises cost.
  1. Social factors: Demand of goods and company businesses are damaged by social factors like
  • Culture of the society
  • Natality rate
  • Growth rate
  • Age distribution
  1. Technological factors — It includes
  • Research and advancement activity.
  • Automation
  • Better technology for the development of goods
  • Technological have direct effect on costs, quality which leads to innovation.
  1. Environmental factors — It includes
  • Weather
  • Climate change
  • Locality (Place)
  • Ecofriendly items (to overcome with problem of global warming)
    e.g — Aftereffect of temperature on farming and tourism.
  1. Legal Factors — It include
  • Consumer law
  • Employment law
  • Health and safety law
  • Discrimination law

e.g. —

  1. Minimum wages program in U.K is legal element that affect business.
  2. Minimum age for employment is fixed by the federal government.

Conclusions & Recommendations

We include analysed and gathered info from Samsung Company in relation to our matter global versus domestic marketing a critical analysis. The conclusions drawn employing company data by itself cannot summarize our findings. However there happen to be similarities in few tips. If we look at the organisation section we can observe how Samsung has come a long way to get recognised as a worldwide brand. It demonstrates achieving such situation in global market is quite hard. Not only obtaining nonetheless it becomes increasingly important to sustain that growth because of fierce competition. It reveals how companies need to adapt or change their policies every once in awhile remember rising and falling market. In general it alerts companies of being more impressive cautious of environmental changes. It also emphasis on limitations one has to face as the behaviour and flavour of consumer adjustments geographically.


  1. Companies should develop marketing strategies keeping in mind its strengths, weaknesses and availability of assets to be globally good.
  2. Companies should try to develop merchandise which global buyer can identify very easily from competition one.
  3. Identify a sector where we can see progress and sustain competition.
  4. Companies should appoint particular taskforce or targeted group people to identify the disadvantages of non performing sector and find answers to that.
  5. To achieve success organisations should concentrate largely on quality and pricing structure.
  6. Be in continuous touch with customer through advertising, pr announcements and make them aware of product specifications and changes if there are any.
  7. Try to make use of both forms of conversation verbal and non verbal.


From this survey on global marketing versus domestic advertising we understand that main objective of any business doing global marketing is to find possibilities. It typically expands company’s reach to global buyers. This mainly will depend on how the firm analyses its strengths and prospects, optimum usage of resources and methodology towards business. Here in this report we noticed how Samsung as a worldwide company has wide selection of products and continuously will keep on adding them to sustain market place. SWOT analysis helped us to comprehend about advantages and disadvantages of the company. Important final result of the report about marketing can be converted in one slogan «think globally and take action locally».


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Internet reference:

  • http://www.fao.org/docrep/w5973e/w5973e02.htm
  • http://www.cdf.org/issue_journal/samsungs_lessons_in_design.html
  • Sustainability Article [online] from http://www.samsung.com/uk/aboutsamsung/citizenship/oursustainabilityreports.html Accessed 22nd August 2009
  • http://ivythesis.typepad.com/term_paper_topics/2009/08/global-marketing-versus-domestic-marketing-a-critical-evaluation.html
  • http://business.lovetoknow.com/wiki/Global_and_Domestic_Marketing


  • Sustainability Statement [online] from http://www.samsung.com/uk/aboutsamsung/citizenship/oursustainabilityreports.html Accessed 12 March 2010.

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