Samsung group is the largest group of companies in Korea that is led by Lee Kun-Hee as its chairman. Samsung Electronics is the largest subsidiary with a 2011 Korean consolidated income of C$150 billion. The company has more than 144 consolidated subsidiaries, 18 of which have been consolidated at the end of 2011 (Mitchell 2011). In Korea, the company group consists of 83 companies, some which have a closer link to the company, while others are independently listed on the Seoul stock exchange. Each of these companies has affiliates overseas, and the group together has more than 1000 business entities across the world.
In the year 2011, the cellphones sale from the company exceeded C$150 billion, which is approximately 165 trillion Korean Won. This represented a 7 percent increase as compared to the year 2010. The company is a direct employer to more than 190,464 employees through subcontracts and more than 800,000 globally by the year 2010. This success is largely attributable to the recent diversification of cellphone production technology, which has actually paid off handsomely (Mitchell 2011).
In the next decade, the group company has a plan of investing more than C$20 billion in the field markets of mobile phone production in order to meet the growing cellphones demands, as well as to stand the stiff competition posed my its key mobile phone giants such as Apple Inc. and Nokia corporation (Chang 2010). The Samsung competitive strategy is normally based on the belief of existence of exploding demands in the emerging markets.
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Samsung market potential overseas is growing rapidly, and every month a higher proportion of mobile phones manufacturing and sales increases gradually. The estimated total gross value of Samsung Company’s overseas and domestic is approximately C$180-190 billion. Mobile phones production overseas has been increasing in countries such as Vietnam, while decreasing in countries such as China. However, China is projected to the future of all Samsung leading mobile phones components manufacturing, because it has more than 30 subsidiaries in the company (Chang 2010).
Samsung has its stock listed in to foreign stock markets, the Luxemburg Stock Exchange and the London Stock Exchange. In addition, the company has various research and development representative offices worldwide, which help the company to produce consumer based mobile phones products. There are approximately 18 research and development centers across the globe. 5 offices are in commonwealth independent and Baltic countries, 13 in the Middle East and African countries, 16 in European countries, 6 in North America and 6 in Latin America. Samsung’s growth worldwide has been rapid. In the year 2010, the company achieved a sale worth C$140 billion, which represented a 13.2 percent growth. In terms of profit, Samsung made the highest ever profit after taxation of C$14.92 billion, 10.4 percent of the total sales and in the year 2011. The company has a sizeable cash reserve and intends to utilize it in making new acquisitions (Mitchell 2011).
The mobile media have been the fastest growing area in the Samsung Electronic business, led by the Galaxy smart phone, which is the top mobile product in their supply chain. In overall, Samsung Company sold a total of 280 million mobile phones in 2010. In addition, sales of smartphones increased by 30 percent during the first quarter of 2011. The total value of mobile media business in Samsung company as at 2011 was standing at KRW55.53 trillion, which is approximately C$50.8 billion. The total profit after tax from the sale of mobile phones in 2011 was about KRW8.27 trillion. This represented 38.5 percent increase in the sale and 89.6 percent increase in the operating profit (Mitchell 2011).
Samsung Vision and Mission
Samsung mobile’s vision and missions are normally steered by a stunning vision that leads to the digital convergence movement. Samsung believes that, through technology development, it is possible to find solutions that address the tomorrow’s challenges. The company creates new markets and technology that will make the Samsung Company stay the market leader with a high reputation (Chang 2010).
Macro Environment Analysis
Generally, Samsung macro environment shows that the market is experiencing some judicial and political pressures. Samsung have tried to alleviate some of these external market forces to increase its global cell phone sales, but some have proven to be persistent (Agnes 2011).
Samsung faces substantial political jeopardies in the countries where it operates. However, majority of these countries are conducive. In the recent times, the political environment in South Korea has become a disturbing factor for Samsung, as the country faces political uncertainty. The state of uncertainties is not severe as equated to other states where it operates (Agnes 2011). This is mainly in countries in the African region and the Asian countries, where it is at discrete drawback because of the unfriendly business surroundings. In the countries like India and China, the company has a favorable political setting, which allows it to focus on the markets in a healthier way.
In spite of being a South Korean cell phone centered company, Samsung has achieved good results in the evolving markets of cell phone industry. This has caused an act indigenous mindset that has successfully bridged the ethnic and social gap between its home country cell phone business and the global markets where it is operating (Agnes 2011). One troubling aspect in the Samsung cell phone industry has been the company’s assertiveness towards native officials in the issues regarding bribing them to get the business done. The company attempts to strike equilibrium between the ambition of customers and the levels of their earnings.
Samsung Company is proud of its advanced approach to technology by manufacturing quality cell phones. It has also harnessed the same approach in rolling out products that use cutting edge technologies in their features and design (Agnes 2011). The technological abilities of Samsung in the manufacturing of cell phones are its main strength. The firm can take pride in the point that it is a discoverer for many cell phone technologies, which were introduced in the current markets all over the world.
Samsung Company has started being aware of its environment and community responsibilities. The firm is now manufacturing environmentally friendly cell phones, which do not pose any health hazards to the users. Furthermore, most of the firms manufacturing units have been built with and on environmentally sustainable designs. The company is also adopting other practices that promote environment conservation (Agnes 2011).
Samsung Company follows principled approaches in the markets based on the monetary strength of consumers and their size. The company is manufacturing quality and affordable phones to increase their profit marking.
Even though Samsung has a line of glittering smartphones, it has had an unusually humble beginning. The company has been in existence since the year 1983, and it has observed recommendable growth. Its parent Samsung mobile company, Samsung Electronics, was created in 1969 (Mitchell 2011). It was dominantly known for its home applications and television sets, but, later, the company has eclipsed other weighty companies like Motorola, Eriksson and Sony in the manufacture of cell phones. In 1993, Samsung mobile released the SH-700 series, which boasted a smaller, sleeker design and had a better sound quality. This new product made Samsung more aggressive in the market, and it has reclaimed more than half of the mobile phone market share in Korea (Mitchell 2011).