1.0 Executive SummerySamsung has made them noticeable as one of the most innovative and quality brands in the

electronics industry. Samsung strives to be sustainable and achieve competitive advantage by

remaining at the forefront of the digital market. Samsung policy is "We will devote out human

resources and technologies to create superior products and services thereby contributing to a

better global society”.

At this assignment we tried to describe its business strategy with their external and internal

analysis. In today’s digital era, speed is the essential competitive as new technologies

constantly introduced to the market. Thus, Samsung spend lots of effort in expanding their

R&D center. Samsung Corporation has become one of the world's leading memory producers

in all types of PCs, digital cameras, game players, and other electronics products. Samsung

has introduced many products with low price and high technology. Although Samsung has

been very successful, they have a few issues that need to be looked at in order for them to stay

up to date and maintain long term profits. Problems that have been identified with Samsung

are; increased competition means decrease in Samsung's profits and market share because it

generates oversupply and decrease in sales. Competition affects Samsung's market share

because new entrants will segregate the market by offering lower cost products with a variety

of functions. There are many competitors that produce similar products as Samsung; Samsung

has to deal with competitors in different industries. They are doing this by differentiating their

products and adding different features into their products.

The two questions for the assignment are 1) what key global market strategy has Samsung

Electronics implemented to achieve international competitiveness and global market

leadership? 2) What criteria should Samsung Electronics apply to ensure that it selects

appropriate joint venture partners? In order for Samsung to be successful they need to go

Global. This solution offers a physical presence and greater opportunity for talent buildup,

and brand name establishment in foreign markets. The Global solution has many advantages

in developing growth, pressure on competition, and international development.

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1.1 Introduction

Samsung, or “Three Stars” in Korean, was first founded in 1938 by Byung-Chull Lee. The

company splits its history into 7 eras of major accomplishments. From the beginning, the

primary focus of the business was trade export of products such as dried fish, vegetables and

fruit to other parts of Asia. In the 10 years following its debut, Samsung expanded to produce

flour and confectionary and founded its own manufacturing and sales operations. Several

acquisitions were made by Samsung between 1938 and 1969, which are now all subsidiaries

of Samsung Corporation, namely Samsung Life Insurance, Samsung Everland, and Samsung

Fire & Marine Insurance.

From 1970 to 1979, Samsung developed its growth strategies for the future, investing heavily

in raw materials and manufacturing processes. Samsung used the advantages of this strategy

to increase its market share in the electronics business, which was mostly TVs at that time, by

beginning to export outside its countries borders. In the early 1990's, Samsung refocused its

business strategies again to better respond to international demand. During this period

Samsung created the first-ever DVD recorder, developed their mobile telecommunications

systems and handsets, and made more acquisitions on an international scale. Following these

major developments, Samsung stepped up their game and released 17 different electronics

products that would rank within the top-five for global market share.

Despite the 1997 financial crisis that affected nearly all Korean businesses, Samsung was one

of few companies that continued growing, thanks to its leadership in digital and network

technologies and its steady concentration on electronics, finances and related services.

Samsung's current era, which began in 2000 is named "Pioneering the Digital Age".

Samsung at present

Samsung Electronics Co., Ltd. is a multinational electronics and information technology

company headquartered in Suwon and the flagship company of the Samsung Group. Samsung

Electronics is the world's largest information technology company measured by 2011

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revenues. Its products include air conditioners, computers, digital televisions, liquid crystal

displays (including thin film transistors (TFTs) and active-matrix organic light-emitting

diodes (AMOLEDs)), mobile phones, monitors, printers, refrigerators, semiconductors and

telecoms networking equipment. It is the world's largest mobile phone maker by unit sales in

the first quarter of 2012, with a global market share of 25.4%. It is also the world's second-

largest semiconductor maker by 2011 revenues (after Intel)

Samsung produces a wide range of printers for both consumers and business use, including

mono-laser printers, color laser printers, multifunction printers, and enterprise-use high-speed

digital multifunction printer models. The company introduced a number of energy efficient

products, including the premium laptop, the world's-smallest mono-laser printer, hard disk

drive, MP3 player and color laser multifunction printer. Samsung has introduced several

models of digital cameras and camcorders.

1.2 Samsung’s Turnover Target and its Aim Target and its Aim

Korean electronics major Samsung is targeting to garner 50 percent in the overall mobile

market in the country. Samsung Electronics Co. has reported, on April 27, the potential

revenue stream for the first quarter ended March 31, 2012. The company has reported revenue

of 45.27 trillion Korean won on a consolidated basis. This is about 22% increase on the

annual basis and has beaten the expectations.

The company has reported that the increase in profitability of display panels and mobile

phones have compensated for the decrease in the sales of semiconductor chips and TVs. IT &

Mobile Communications (IM) segment. Samsung’s mobile sales increased 86% over the year-

ago quarter to 18.9 trillion won. The company is aiming to double its products sales unit. Like

last 27th February 2012 at a conference they declared that, they are targeting to sell 380

million handsets and also to double the sales of its smartphones this year. Also taking aim at

its Japanese rivals with an Android-powered digital camera that allows users to swiftly and

wirelessly upload pictures to social networking sites.

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Major customers

Samsung's largest clients ( 2011)

Rank/company Part descriptionBuying

(trillion KRW

Percent of total

sales

1 SonyDRAM, NAND flash, LCD panels,

etc... 1.28 3.7

2 Apple Inc.AP (mobile processor), DRAM, NAND

flash, etc... 0.9 2.6

3 DellDRAM, flat-panels, lithium-ion

batteries, etc... 0.87 2.5

4 Hewlett-PackardDRAM, flat-panels, lithium-ion

batteries, etc... 0.76 2.2

5 Verizon

CommunicationsHandsets, etc... 0.5 1.3

6 AT&T Inc. Handsets, etc... 0.5 1.3

2.0 External Analysis

2.1 Political/ Legal Environments

Over the past several years, there has seen a plethora of patent lawsuits within the smart

phone industry. In the highly competitive environment, manufacturers of handsets have been

aggressive in protecting their intellectual properties by suing competitors by claiming

infringements on patents. For example, in March 2010, Apple sued HTC for allegedly

infringing on 20 Apple patents. Apple also sued Nokia in 2010 for similar patent

infringements. However, in April 2011 the International Trade Commission recommended

that neither HTC or Nokia should be found liable for any infringements. Further Microsoft

reached a licensing agreement in April 2010 with HTC to pay royalties on Android based

handsets. More recently, Apple launched a lawsuit against Samsung in April 2011 claiming

Samsung copied design features of the iPhone in its Galaxy line of Android phones.

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2.2 Samsung wins over Apple in Japan patent case

Aug 31, 2012 - A Tokyo court ruled that Samsung Electronics' mobile devices did not violate

an Apple Inc patent, awarding the South Korean firm a victory a week after it lost a landmark

patent case in the United States.

The Tokyo District Court's ruling on an Apple patent dealing with transferring media content

between devices comes after a U.S. federal jury found that Apple did not infringe on any of

Samsung's patents, while the South Korean firm had copied key features of the popular

iPhone. The U.S. jury awarded Apple $1.05 billion in damages and it is now seeking speedy

bans on the sale of eight Samsung phones in the U.S. market.

2.3 Economic Environment

The North American economy is still recovering from the financial crisis of 2008. The high

unemployment rate in the US and Canada has been negatively impacting consumer

confidence and has resulted in a decrease in consumer spending. Bloomberg reports consumer

spending dropped 0.2% in June 2011 which provides evidence the decrease in hiring and

wage increases below the inflation rate are affecting consumer spending. Consumer spending

accounts for 70% of the US economy; any fluctuation in this area will have a significant

impact on the overall economy. In Canada, the opposite is true. Consumer spending increased

by 3.8% from 1st quarter 2010 to the end of 1st quarter 2011 ("Canadian Consumer

Spending"). Consumer confidence is Canada seems to be higher than the US likely resulting

from lower unemployment rates and Canada's faster paced recovery from the global financial

crisis.

2.4 Social-cultural Environment

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The rise of the information age has made electronic devices more important for both business

and pleasure. It is important to determine how receptive a society is to new advancements in

technology and their adoption. By measuring adoption by age demographics, there is a

competition of who can gain the primary target groups. Insights into how different groups of

electronic devices users use their devices can provide insights into new features or

improvements in established features.

2.5 Technological Environment

Technological environment is continuously changing. Because of the extreme rivalry there is

always a competition in between the major competitors to bring something innovative in the

market. Consumers also so much demanding and they always appreciate new ideas by any

company. Samsung faced lots of challenges in recent years because other major companies

like Apple, Sony etc bringing lots of new product or new model of existing product in the

market. To compete with and retain market share, Samsung is always on their way to being

more and more innovative and give customers new experiences.

2.6 Porter’s Five Force Analysis

2.6.1 The threat of potential new entrants (Low)

High capital is required to enter into this industry, where Samsung electronics’ 7 kinds of its

products have taken the largest share in the world market. More over, It is difficult to start up

in an industry where the existing firms already operate on cost and differentiation strategies.

However, with the commoditization of parts, finding vanilla solutions for a simple alternative

product might be possible. Differentiation, however, is another story. New entrants would

have issues with overcoming patent issues if they didn’t plan on investing in their own R&D

to create a unique product. These things together would require a new entrant to establish a

competitive brand name while achieving economies of scale via investments in a supply chain

process and developing a distribution infrastructure to remain competitive. The costs of

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accomplishing these things make a very strong barrier to entry. Even then, overcoming issues

such as customer loyalty and switching costs would be another large barrier to entry.

2.6.2 The threat of substitutes (Low)

Substitutes in the consumer electronics industry are many and the different companies

competing in this industry must apply many strategies in order to compete and make profits.

For Samsung, almost any device that performs the same functions as a Samsung phone could

be considered a substitute. Although there is an increased popularity of Tablets, they are

generally too bulky to be considered as straight substitutes. They don’t offer traditional

mobile phone capabilities, which makes them inadequate. Laptops have the same problem.

HD TV- Television have recently become very popular with the new HD technology. The

substitutes for TV's are computers, laptops, I pods. Because of the limited availability and

space on IPods and the smaller size of a laptop screen, TV’s will still stay popular and be high

in demand. In the digital camera industry cell phone cameras don't provide the same quality

and storage as digital cameras. So finally we can say the threat of substitute is low.

2.6.3 The bargaining power of buyers (High)

Buyers have good leverage when it comes to bargaining because of their access to

information and how competitive the industry is. With so many similar products from other

carriers, buyers have several points on which they can bargain. Buyers easily switch cost with

the increased of choices of companies and furthermore their products are quite similar to one

another; they will switch to those who have better features or price points. Switching costs,

however, can be very high in some cases. Most of the electronic entertainment products are

created from wants, not needs, therefore the customer does not have to buy the product to

survive. Thus companies’ have to keep the buyer in mind and listen to what they want. So,

bargaining power of buyer is high.

2.6.4 The bargaining power of suppliers (Low)

In Samsung’s case, the bargaining power of suppliers is low because Samsung is its own

supplier of most components. Samsung also happens to be its own supplier for raw materials.

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In the industry, however, A mobile phone manufacturer could always integrate forward into

the industry without the middlemen. So the bargaining power of suppliers is low.

2.6.5 The intensity of competitive rivalry (High)

The threat of rivalry in the consumer electronic market is very high. Not only does a company

have to compete on a level of technology and price, but they also have to keep track of what

the competition is doing. There is a high intensity and constant competition in the electronics

industry and usually the main competitors come up with new products very often. If a

company does not keep up with trends and new products, they will lose their customers and

profits.

Like the smart phone industry has many competitors that are equally balanced, and thus

rivalry is high. The market for smart phones has slowed in growth since its boom, so pressure

to take customers from competitors is also high. Differentiation in the smart phone industry is

also at a point where it is very short-lived. If a company decided to compete in this industry,

they have to compete with intense price rivalry. So the rivalry among competitors is very

high.

3.0 Internal Analysis

3.1 Core Competences

Core competencies are those capabilities that are critical to a business achieving competitive

advantage. The starting point for analyzing core competencies is recognizing that competition

between businesses is as much a race for competence mastery as it is for market position and

market power. The basic factors that make the Samsung world wide recognized are

manufacturing, product development, research and development. So from that factors we can

find out the core values of Samsung and these are: (1) Technology Leadership (2) Innovative

culture through R&D and (3) Brand image in the Industry. These are discussed below:

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3.2 Technology Leadership

Samsung has a long history in the electronics industry and they have a wide product range.

They have so many types of products like TV, Fridge, Ac, Cell phone etc. No other company

in the market has a wide product range like Samsung. Because of that they are in the

leadership position and it becomes one of their core competences. Samsung is capable to

satisfy customers to any technological demand. As they are the suppliers of the other

competitors Samsung has the knowledge of the upcoming technology. More over due to their

own efficient highly qualified employees and technological advancement, it iss easy for them

to maintain the leadership and be competitive in the market.

3.3 Innovative culture through R&D

Another core competency of Samsung is their innovative culture through research and

development. Their R&D department is very aggressive and always try to bring new ideas and

products in the market. They are very much careful about what are the new products or model

are introduced by competitors and their R&D department aggressively try to give a counter

attack to retain their market share. The ability of being so innovative to compete successfully

in the market is the core competency that helps Samsung to attain competitive advantage.

3.4 Brand image in the Industry.

Samsung is one of the most well reputed banks in the world and has a strong brand image in

the mind of general people. In consumer mind, Samsung is the name of trust and worthy. So it

is become on of the most impressive core competencies for the Bank. Samsung build that

brand image by serving consistently from a longer period of time and it can not be easily

copied by other electronics company. This brand image helps Samsung to build a strong

customer base. Strong brand image and customer base helps Samsung to build a long term

relationship with customers and to attain a competitive advantage to successfully survive in

the market in the long run.

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3.5 SWOT Analysis

STRENGTHS

Strong Brand Image

Existing knowledge and experience of electronics market

Strong global presence with strong brand and customer base.

Well diversified and differentiated product line, to meet changing customer needs.

Design with an attractive styling that catching the pulse of customer, as the result of

the development of Samsung‘s new products that involve team of product designers.

Technology

With an excellent research and development capabilities, they spend a high percentage

of revenue on R&D. It resulted in global leadership in the television segment, and in

improving its position from the third to second player in mobile phones with their

innovative products.

High Market share that continue to grow ( Mobile Phones, Memory chips and LCD).

WEAKNESS

Customer perception of weak product attributes like Durability

Not pro-active coming out with unique and leading model

Focus on mass market instead of niche market

Huge investment on Research & Development

Increasing Competition

OPPORTUNITIES

Increasing on electronics consumer market

Strong customer demand for innovative products & value-added features

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High % of Younger population, which can be expand a new market now and in the

future

THREATS

Economic slowdown weakens the demand for electronic products.

Low cost Chinese producers eroding profitability

Increasing competition for all electronic products

New nanotechnology may replace Samsung’s DRAM technological advantages.

External changes like government, politics, taxes, etc

4.0 Corporate Social Responsibilities of Samsung:

Samsung takes its role as a "good corporate citizen" very seriously and stands firmly be- hind

its commitment to making a lasting social contribution to the community. Through numerous

initiatives, donations, sponsorships, and voluntary activities, Samsung honors its obligations

to society in creating a better and more prosperous tomorrow for all.

4.1 Social Welfare Programs:

The Samsung Welfare Foundation and Samsung's affiliates serve the community and help

children and young adults develop into healthy, productive members of society through a

wide variety of programs. Since 1999, Samsung has donated 10 billion Korean Won in grants

to the Community Chest in Korea to assist with social welfare programs.

4.2 Animal Welfare Programs:

Samsung's philosophy is that the relationship between people and pets, especially dogs, makes

for a better and less self-centered world. Samsung believes that in our new millennium of

technology and fast-paced business environments, interaction with animals introduces a

calmer, sensitive and more holistic dimension to our world. Samsung runs a Pet Ownership

Program, where Samsung employees can adopt lovingly reared dogs. Positive pet caring and

handling are taught to families, and in doing so, contribute to creating a world that is less self-

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focused and cares more about animals in general. All service dogs in Samsung's programs are

cared for in their old age when they are no longer able to function in their field. Guide dogs,

search and rescue dogs, therapy dogs and hearing dogs are all guaranteed safe and

comfortable geriatric years either with volunteer families who wish to take care of them or at

our centers where they can be monitored constantly.

4.3 Cultural and Arts Programs:

Cultural and arts programs provide diverse support for the preservation and exhibition of

Korean and other ethnic heritages. Samsung has contributed greatly to numerous museums,

galleries and exhibits in Korea and around the world, including: Samsung also sponsors

talented young musicians of the International Sejong Soloists (ISS), a New York-based string

ensemble created in 1995 under the musical direction of Hyo Kang, a renowned violin

professor at the Juilliard School. To develop children's creativity and promote artistic

expression, Samsung's affiliates host and support various events such as the annual Bichumi

Painting Festival, the Glass Modeling Academy and the Kenox Photo gallery.

4.4 Academic and Educational Programs:

Samsung's academic and educational programs in Korea and around the world include direct

assistance to universities, international exchange programs, support of Korean studies

departments overseas, scholarships, donating computers to elementary schools and supplies to

develop schools in third world countries. Since 1990, Samsung's Ho-Am Foundation has been

awarding the Ho-Am Prize, Korea's version of the Nobel Prize, which recognizes outstanding

contributions to society or exceptional results in research in six areas that further the welfare

of humanity. In July 2002, the Samsung Kun-Hee Lee Scholarship Foundation was

established to provide funds for young Koreans to study overseas in liberal arts, social studies,

science and especially technology and engineering.

4.5 Environmental Preservation Programs:

Environmental preservation programs exist at every Samsung operation around the world. In

1993, the Samsung Global Environment Research Center was established to study policies

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and strategies related to environmental issues. Today, Samsung is actively involved in

ecological preservation through the development of environmentally friendly products and

related technologies. Samsung Electronics' Kiheung site and Samsung Petrochemical's Ulsan

site were designated Korea's first "environmentally friendly companies" by the Korean

government, assuming environmental responsibility for process improvement, toxic material

replacement and pollutant minimization. More recently, Samsung Corning in Malaysia

received the Prime Minister's Hibiscus Award, the first private sector award that recognizes

exemplary commitment by industries to the environment. Volunteer efforts are also a core

element of Samsung's commitment to a clean environment, as demonstrated by the employee

"Adopt a River" and "Adopt a Mountain" clean-up campaigns. These efforts have spread to

450 companies and institutions in Korea, and have also had a great impact overseas, including

tropical forest preservation in Malaysia, the "One Company, One Park" program in China,

and a beach-cleaning project in Mexico. Samsung's affiliated companies also run painting

contests and education programs for children to learn about the importance of environmental

preservation.

4.6 Employee Volunteer Programs:

Samsung employees are active in a wide spectrum of social improvement projects, from

environmental cleanup and disaster relief to housekeeping help for the elderly and mentoring

orphans and young parents. More than 50 percent of all Samsung employees world-wide are

currently involved in volunteer programs, sharing their time and talent for worthy causes. The

Washington D.C. based Points of Light Foundation (POLF) has recognized these cumulative

volunteer efforts. In 1998, POLF selected Samsung among all international corporations for

its prestigious Award for Excellence in Corporate Community Service. In awarding Samsung

this honor, POLF noted Samsung's achievements in establishing effective systems to support

employee volunteer activities, to develop and maintain systematic volunteer programs, to

leverage technological and human resources, and to serve local needs.

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Q1) what key global market strategy has Samsung Electronics implemented to achieve

international competitiveness and global market leadership?

Answer:

Samsung has implemented number of Global Market strategy to achieve international

competitiveness and following are some:

1) For any company to be successful, most important is to set goals, objectives and have

confidence level. In the article we have seen that Samsung Electronics have strong Vision

and Mission.

a) Vision statement charts long term direction of a firm including its core values and

purpose. If we analyze their vision statement “Lead the Digital technologies to

enrich the lives of people, develop new markets and ensure that company remains

a trusted market leader”, we can see that Samsung Electronics want to lead the

Digital technologies and that is not easy having some many good competitors.

They are not only interested in local market but also develop new market along the

globe and finally they will ensure their products offers safety, longevity in order to

remain trusted market leader. All this wishes are not easy and therefore, their main

key global success I think is the desire to take tough challenges.

b) Mission statement explains the main reason for firm existence and provide

strategic planning guidelines. From this article we can see Samsung Mission

statement is “Best digital e-company by creating industry leading technology

products and services, adopting the most up to date efficient management and

production procedures, maintain a strong focus on strengthening the company,

being a leader in global technology, and being a trusted responsible company”.

This mission statement also indicate they want to introduce quality products so

that have quality control sector, they also have research and development sector so

they can adopt most up to date efficient management and production procedures.

All this indicate they have strong confidence and resources to deliver the best and

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this what I think gave them the competitiveness and global market leadership.

Without goal everything is useless.

c) Finally they have strong objective, which is “to become number one in its industry

throughout the world, and Korea`s first great global company”. They objective

need to be achieved by research, development and quality control; advertising,

innovation and all this are forced by the objective of the company.

2) Good governance and transparency: In order to be successful in global market and achieve

international competitiveness, another key thing is to have good governance and

transparency. Samsung is successful in operating within the framework of good

governance and transparency to protect their corporate image and reputation and market

share and retain strategic partners. There is saying that it takes years to build up image but

one minute to spoil it. Samsung has independent board of director, which governs the

company and always maintains transparency with its shareholders. Samsung Board of

director consists of nine members of whom two are Samsung executive directors and

seven external appointees. Four committees also establish within the board to fast track

the deliberations and decision making process of board members. They also have

management committee, audit committee the outside director recommendation committee

and also internal transaction committee. Moreover their governance is also strengthened

through its global code of conduct, which sets companies values and principle. Because of

having good company image, keeping shareholder satisfied and future more having

transparency in reports Samsung achieved international competiveness and recognition.

Since shareholders are happy and feel safe to invest, they agree to buy Samsung Shares

even at higher price which Samsung value high and also give global market leadership

from their competitor who fails to do similar.

3) Culture: Samsung Electronics is committed to creating knowledge based corporate culture

that encourages all of its employee to institute changes, innovation, creative methods and

process which cannot be achieved or replicated by its competitors. Values are the basic

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concepts and beliefs of an organization and in essence are the core corporate culture and it

provide employee with a sense of common direction and standards for their everyday

behaviors and form the basis of the firms philosophy for achieving successful outcome. Its

also important for Samsung to often change their predominantly national culture to one

which is more international in outdoor which means they must respect other people

culture and avoid using things that has adverse meaning in different culture. Like V sign

in USA means victory but in UK, Ireland, Africa the same V sign means insult.

4) Knowledge and Management: Samsung Electronics is a learning organization and is

skilled in adapting to changing market conditions and addressing business needs.

Samsung conduct regular benchmark meaning identifying firms that are doing something

best and learning how to do it. They benchmark their competitors, supplier, joint venture

and trading partners. Doing so they keep up their technology with others. In some cases if

they find lack of knowledge among management or employee, they gather knowledge

from seminars, engaging consultancy assistance or by reading books. All this makes them

up to date with latest technology advances and their brand customers gets latest products

so no need for shifting to other brands. Samsung also constantly monitor and reduce cost

of production and try to reduce price for end products so that customers can enjoy advance

product with less price. Samsung also recognize bringing latest technology in advance so

they spend high on research and development department.

5) Partners increase: Samsung always seek to increase strategic alliances meaning

corporative partnership arrangement between firms whereby they agree to work together

for mutual gain. This not only help them to increase review but more importantly they

share knowledge, increase efficiency and reduce cost of production.

6) Corporate social responsibility: Samsung in order to protect their corporate image and

brands consider corporate social responsibility. They seek for global talents and then

support them by providing resources to provide and produce which will enrich peoples

live. They also spend a lot on eco-friendly products. It also aims to have greenhouse gas

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emissions by 2013. In short they contribute for the society from their profit to benefit the

society and also maintain their brand name and image. This will cost them at the initial

stage but will bring higher return for future.

Above are the points those clearly state why Samsung Electronic achieve international

competitiveness and global market leadership. above key global strategies was not

implemented in years. It takes time and they will continue implementing more new key global

strategies to strength their position, profit, image and products.

Q2 ) What criteria should Samsung Electronics apply to ensure that it selects

appropriate joint venture partners?

Answer: Strategic alliances is corporate partnership agreement between firms whereby they

agree to work together for mutual gain. The definite clearly explain the whole scenario, where

business A and B joint together although they retain separate business identities and seek to

learn from each other and exchange knowledge, technology, products and skills which would

not otherwise be available if they operate alone.

Samsung Electronics is a global company operating in many different countries. It will be

relatively difficult to operate in all this countries alone. Secondly, they have many different

products sectors like electronics, petrochemicals, heavy machinery, ship building, advertising

and insurance. They can share different types of products production with different companies

based on the skills and productivity ratio. For example some can create the same product at

lower cost than others. They can also use unutilized space of another establish company by

reducing fixed cost and so on.

Following are some point Samsung Electronics may apply to ensure that it selects appropriate

joint venture partners:

1) It’s never easy to make friend especially in the corporate level. Every firm is

interest in self benefit. So the first thing to keep in mind while making joint

venture partners is to clearly identify benefits from venture of all partners

involved. All benefits should be states before sitting in the bargaining table. Both

party should clearly understand each benefit from joining.

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2) They should clearly mention how the partnership will and in what level they

should exchange their knowledge, technology, products and skill and then each

partner should measure the degree of difference between the advantages and

disadvantage of such share.

3) Either partner or all partners involve should ensure that all should be able to adapt

changing environmental and market condition. Also they need to feel comfortable

that they will be able to develop prosperous relationship between partners and

ability to solve problems and settle difference.

4) They should check their size and capabilities, operating strategies, respective

corporate cultures, management practice, policies, philosophies and organization

structures. They should also check their safety and political stability and so on.

5) They should try to build partnership with large firms rather than small farms as

large firms will offer them more benefits than small firms but partnership with

large firms will be more costly and time consuming than of small firms.

6) They should seek for diversification of production to reduce production cost. They

should seek for firms producing required product at cheaper price maintain same

quality so that Samsung can reduce production cost. Same way they should focus

more on producing products they can product in cheaper price than other.

7) Most importantly they should have good papers and documents of the partner

agreement contract in order to protect them from fraud or hazards situation in

future.

8) Always maintain transparency and be open minded with your partners in order to

avoid conflict.

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5.0 Recommendation for Samsung Electronic:

Samsung Electronics is doing pretty well over the decade. Starting in 1969 in South Korea and now operating in more 24 research and development centers around the world. Also Samsung become the highest selling mobile phone company overtook Nokia selling more than 93.5 Million units. Despite all success they also have some drawbacks like law suit by Apple recently for copying their design. Since Samsung is now one of many among the largest company in the world, other will try to fight back and win the top position. I have some recommendation for Samsung Electronics given below:

1) They are currently dominating some of the popular electronic sectors like Mobile, TV, LCD, and Chipset and so on. Already there are big players involved in those sectors like Sony, Apple, Intel and they definitely regard Samsung as biggest threat. Having so many bigger threats, Samsung has to be innovating in product design and introducing and therefore they need to invest lots of capital in Research and development sector and higher talents before it competitors does. So my first suggestion will be to make more friends and reduce number of threat either by being more innovative or by joining as corporate partners with competitors.

2) Law suite cost money and also damage image of the corporation. Samsung already learned their lesson from Apple and now they should test market analysis and hire experts to analyses product copywriter and design uniqueness before releasing product to the market to avoid future lawsuit.

3) Samsung should provide advance knowledge to its current employee and hire new talents from the market to be more productive, innovation and unique design.

4) Samsung should invest more on Research and development sector so that they can introduce constant new products ahead of its competitors to attract customers and more importantly satisfy shareholders.

5) Samsung is doing well in conducting Social responsibility. They should continue doing so and if possible increase level to impress people around the global and enhance corporate image.

6) In this digital world, most important is advertising to promote branding. They should sponsor big events, increase advertising and offer seasonal discount to keep customer busy with Samsung products.

7) Samsung should constantly monitor Management teams and employee member in the management from external shareholder to bring hope and faith on the existing and new shareholder. They should be as more possible transparent in accounting and documentation to be more specific to customer and shareholder.

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8) Samsung should try to find partners for diversifying production design and production based of economic of scale in order to reduce production cost and that will reduce the final price of the product and easier for customer to purchase. This will also give comparative advantage over its competitors.

9) Samsung should enter more country as possible to increase market sector around the globe. They should respect other culture while doing so. They can enter other countries either by fresh investment or through existing firms by selling right to use brand name or design or chipset or even as franchise. They should also ensure quality control in all essence.

10)China is getting expensive this day for production hub. They should try to find alternative options if in future China becomes expense country for production before its competitors. They can do so now as experiment for future. They should always maintain low price with similar or better quality products for its customer. This can only be done when cost of product is low.

Bibliography

1. Huvard, Sky, Rodrigo Salcedo, Lateshia Tuppince, Matt Wentz, and Lindsay Zolad.

Vodafone Air Touch: The Acquisition of Mannesmann. Rep. May 2006. Web. 5 Oct. 2011.

2. Chan, Joshua, Zhisui Chen, Irene Cormane, Nou Her, and Renie Thomas. Cell Phone

Industry Analysis. Rep. 12 May 2006. Web. 5 Oct. 2011.

3. http://www.csus.edu/indiv/h/hattonl/industryanalysis.doc >.

4. http://gigaom.com/mobile/why-samsung-is-about-to-become-the-smartphone-king/

5.http://www.cybozone.com/vcu/

Vodafone_Air_Touch__The_Acquisition_of_Mannesmann.pdf.

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