BIN3020-N UG Business Research Methods top-up

WHAT STRATEGY SAMSUNG USED FOR ITS ELECTRONS TO BE
INTERNATIONAL.
CONTENTS :

1. CHAPTER- INTRODUCTION AND BACKGROUND

1.1 Background of the research

1.2 Research rationale

1.3 Project aims

1.4 Project objectives

1.5 Structure of the study

2. CHAPTER – LITERATURE REVIEW

2.1 Introduction

2.2 Body

2.3 Conclusion

3. CHAPTER- RESEARCH DESIGN AND METHODOLOGY

3.1 Research design

3.2 Method of data collection

3.3 Research Ethics

4. CHAPTER – CONCLUSION AND RECOMMENDATION

4.1 Conclusion

4.2 Recommendation

5. PROJECT TIMELINE -GANT CHART

6. REFERENCE
Chapter-1 introduction and background

1.1 Background of the research

Constant research and development, internalization, and efficient use of new

technology, particularly those obtained externally, are essential to a company's survival
and growth as the significance of technical innovation as a key element of corporate
competitiveness grows. Numerous scholars have devoted much time and energy to
studying this topic, therefore there is a wealth of literature available (Hamel and
Prahalad, 1994; Utterback, 1994). However, most of the existing works on the topic are
inapplicable to late entrants since they are based on the experiences of companies non
the most technologically sophisticated nations, including the United States, Europe, and
Japan.Constant research and development, internalization, and efficient use of new
technology, particularly those obtained externally, are essential to a company's survival
and growth as the significance of technical innovation as a key element of corporate
competitiveness grows. Youngjoon Gil ( April 2000) Numerous scholars have devoted
much time and energy to studying this topic, therefore there is a wealth of literature
available (Hamel and Prahalad, 1994; Utterback, 1994). However, most of the existing
works on the topic are inapplicable to late entrants since they are based on the
experiences of companies non the most technologically sophisticated nations, including
the United States, Europe, and Japan. The global markets in technologically propelled
consumer electronics sectors, such as the liquid crystal display (LCD) and plasma
television industries, are led by Japanese, Korean, and lately growing Chinese
enterprises. In contrast, Western corporations like Germany's Grundig AG filed for
bankruptcy the same year (2004). Philips (the Netherlands), one of the most well-known
European companies, has steadily reduced its vertical manufacturing participation in its
television set products since the 1990s. Youngjoon Gil (April 2000) Philips' upper
management is increasingly looking to external suppliers to provide the company with
important components, including those that provide significant value to a cutting-edge
television set.

According to Dr. Jinjoo Lee (April 2003) after Thomson France) and TCL (China) formed
a joint venture in 2004 to produce television sets, the European branch of the joint
venture filed for bankruptcy in 2007. Sharp (Japan), which owns a 29 percent capital
stake in Loewe, is responsible for keeping the traditional German high price assembler
alive.Dr. Jinjoo Lee (April 2003) In the 1970s, Japanese companies first began actively
expanding their operations across Europe. In comparison to Japanese competition,
South Korea's electronics sector has developed rapidly over the last two decades in
Europe, and its market entrance and penetration techniques are all the more
spectacular for it.

Globally, Samsung is one of the most recognizable names in the IT industry. All of its
efforts are directed on developing ground-breaking new products that improve people's
lives and lead to widespread economic growth. It's also a business founded on the
principle that the best ways to approach any problem are with innovative ideas, strong
collaboration, and top talent. A. Musaed Almutairi. 2019. As such, it aspires to have a
global fan base, earn a reputation for innovation, and get respect from industry leaders.
That's why it emphasizes the importance of the value created along with its partners
and collaborators, as well as within its own staff. While Samsung may not have a
physical presence in every country on the planet right now, its goods can be found in
almost every city on the planet. Even though it is now an international corporation and a
technological industry leader, this firm began like any other one does: as a concept for a
business and the taking of baby steps forward. According to Shivam Mehta (2019).The
purpose of this paper is to track down and examine the myriad of individual
contributions that have added up to make Samsung the global powerhouse that it is
today.

In other words, this research aims to learn more about how the firm internationalizes
itself to expand into new markets. Thus, factors like industry and competitive analysis,
obstacles faced by the firm, entrance method into other nations, promotional channels,
pricing, logistics, financing, human resources, and product design will all be taken into
account (Fatima Al Rashidi, 2019). Similar attention will be paid to how the firm has
dealt with global competition from other major technological firms and the challenges it
has faced on its path to success.

1.2 Research rationale

Samsung is a global brand with a presence in most regions; however, not all nations
have an official Samsung office or distribution hub. The firm has grown to become a
global powerhouse in the technological industry, but it began like every other company
does—as a concept for a business and a series of incremental improvements.
Consequently, the rationale of this work is to isolate and examine the myriad
contributing factors that have contributed to Samsung's meteoric rise to global
prominence and global market dominance.

1.3 Project aims

This project analyzes Samsung Electronics' strategic policies and how they affect the
company's offerings. The study's theoretical framework includes marketing and strategic
policies, and its practical consequences span a broad range. The study's overarching
goal is to offer insight into how Samsung can better capture the market by analyzing the
growth of its products in the face of competition, the effect of the company's various
strategies and policies, and so on.

1.4 Project objectives

This study's focus is on the company's efforts towards internationalization, or the

expansion of its operations into other markets. Industry and competitor analyses,
obstacles faced by the business, strategies for breaking into international markets,
advertising channels, pricing, distribution, capital, personnel, and product development
will all figure into the equation. Similarly, the company's strategy for dealing with global
competition from other significant technological firms and the challenges it faced to stay
ahead of the competition will be
examined.

1.5 Structure of the study

There will be five main chapters with several subsections for this research. The first
chapter will introduce the issue and give context, while also outlining the study's goals
and research questions. In Chapter 2, we'll read several connected works. Research
technique, including research approach, research design, data collecting, and analytic
plans, will be outlined in Chapter 3. Data presentation and analysis will take place in
Chapter 4. Discussion and final thoughts will be presented in Chapter 5. In Chapter
Five, We Will Discuss the Conclusions of the Study.

Chapter-2 Literature review

2.1 – Introduction
Samsung, one of the world's top technology corporations, not only encourages research
and development of cutting-edge tech but also claims that its goods will make people's
lives better. In 1969, "Samsung-Sanyo Electronics" was established as the company's
name; however, "Samsung Electronics Industry Co Ltda" was adopted as the official
name in the following years. Initially, the company focused on the manufacture and
export of TVs, washing machines, and refrigerators, despite the low demand for the
latter two. according to (Musaed Almutairi, 2017) The 1980s saw the beginning of the
firm's manufacturing of what would become a wide variety of consumer electronics for
the home, including microwave ovens, computers, and video recorders. Electrical
appliances, telecommunications, and semiconductors were the company's three primary
product lines. Using industrial robots developed for mass manufacturing, Samsung
made strides in the early 1990s in areas like color television, mobile phone development
and manufacture, and the first digital video recorder. Similarly, it introduced novel
technology ideas in the realms of telephone and television devices, such as the first
commercially available liquid crystal display (LCD) screen and the first Internet-enabled
wireless telephone. Since the turn of the millennium, when new facilities were built, the
firm has been able to mass-produce all of its wares. It also discusses the company's
entry into the international semiconductor and process technology sectors and the
continual advancement of its products and services in the years to come. Because of its
commitment and the widespread use of its goods, Samsung will rise to the top of the
technology industry (Shivam Mehta, 2017). It now offers a wide range of services
tailored to its numerous business divisions. Products, company Solutions, and
International Websites are the three main components of its company. Thus, direct
export of the company's goods and services was the most visible aspect of its
internationalization strategy.

Capital Invested Abroad. To expand into new markets in this manner requires a
significant financial commitment from the organization. Shivam Mehta ( 2017) suggests
that Samsung's first forays towards internationalization centered on the sale of TVs in
Panama. It also opened its first overseas office in the United States in 1978 and its first
overseas manufacturing subsidiary in Portugal in 1982. After launching their first
overseas products and seeing increased sales, the company was able to expand into
new markets and establish itself as a global powerhouse.

2.2 BODY

Industry and Competition Analysis. The semiconductors, compressors, LED

optical fibers, and ODD produced by Samsung are the company's mainstays in
the manufacturing sector. Also, its goods and services span numerous fields
where growth is possible, including the academic, medical, financial,
transportation, government, entertainment, hospitality, and retail markets. The
firm caters to the specific requirements of these industries by creating a wide
range of goods and services, including the ones listed below.

Samsung's marketing strategy entails the development of novel, cutting-edge products

that are promoted through strong branding and promotional campaigns. Mr. Yun led the
company to a new competitive strategy aimed at manufacturing and marketing
exceptional products while also cultivating Samsung's reputation as a premium brand
associated with style and high-quality. The goal was to distinguish the brand by
stressing technological innovation and developing a more appealing image for younger
and higher-end clients worldwide. Yun feared that competing only on price would
eventually lead to Samsung's demise.

After implementing the New Management plan, Samsung grew from being an unheard-
of firm in the international market in the early 1990s to a top-tier multinational
corporation in the second decade of the new century. Samsung was able to
concurrently improve in many key areas of competition. The memory chip sector of
Samsung Electronics, for instance, has much lower costs than its rivals. By introducing
the highest-quality memory chips first and tailoring its offerings to the needs of each
individual consumer, Samsung was able to set itself apart from the competition. This
means that Samsung has been the market leader in memory chips for almost 20 years,
since 1992. Samsung's lead in market share over its rivals has recently become even
wider.

The Samsung Way is based on these three seemingly contradictory principles.

Mainstream management study is generally centered on research on Western firms;
therefore, these ideas are noteworthy since they go beyond or even contradict these
practices and ideals. Samsung is becoming a global powerhouse because to its
incredible achievements (María Alejandra Villa 2017). Competitors have a hard time
duplicating that kind of accomplishment. It required some deft internal balancing of
these seeming contradictions. Therefore, any examination of the Samsung Way must
include an understanding of Samsung's paradox management. Following is a more in-
depth examination of these three seeming contradictions.
Large but Speedy. Companies that have sustained success often have
developed their own management concepts or methods, known as their "Way".
Korea has adopted the management practices of both nations, and since the
Asian currency crisis of 1997, Korean businesses have adopted American-style
administration and management. However, modern world leaders have moved
beyond this outdated notion and instead use their own approaches to
management. Samsung had to develop its own set of distinctive core skills and
processes, thus the birth of the Samsung Way.

Diversified but Specialized. Samsung has diversified since its establishment, with
interests in semiconductors, chemicals, construction, shipbuilding, defense machinery,
building security management, hotels, advertising, fashion, investment banking,
insurance, and theme parks. Conglomerates that operate in unrelated domains have
become less competitive, leading to a "conglomerate discount" in the U.S. stock market
(María Alejandra Villa 2017). Samsung has defied this trend and consistently provided
successful performance despite its highly diversified and vertically integrated business
structure. Samsung is a highly diversified and vertically integrated company that
currently holds the global top or runner-up spot in many fields. It has achieved
economies of scale and improved its soft capabilities, and has leveraged the
advantages of this system to create a convergence synergy through systematic
cooperation among related subsidiaries and divisions. It competes with the world's best
companies in diverse product groups, and has a competitive edge over highly
specialized global company.

Japanese and American Management Styles Combined. Samsung's management

style is a hybrid of the Japanese and American approaches to management. It has used
its learning capabilities to optimize the best aspects of both styles. Japanese
management is characterized by a market share orientation, unrelated diversification,
vertical integration, emphasis on manufacturing competitiveness and efficiency, strict
organizational discipline, employee loyalty, internal and seniority-based promotion and
rewards, and participation of both workers and shareholders in management. American
management is more centralized and relies more on external labor markets than
internal cultivation of employees. Samsung's management style resembles American-
style management in many ways, such as frequent restructuring, emphasis on soft
capabilities, talent recruitment, performance-based compensation, and risk-taking
CEOs. However, Japanese management styles are incompatible with the American
one, but Samsung manages to combine them successfully by modifying them to reflect
Korean and Confucian culture and adding its own values and culture.

R&D Into Innovative Tech. To gain a competitive advantage through innovation,

Samsung made significant investments in R&D." The company sought to be a pioneer
in the development of innovative technology. Sony had a competitive advantage in
consumer electronics in the 1990s, but its expertise was in analog technology. With the
arrival of the digital era, new goods were required, and Samsung devoted significant
resources to the development of large-area LCDs, chipsets, and mobile phones.
Product Development & Design. While acknowledging that advanced technology
alone does not guarantee market success, Samsung prioritized product
development and design." The company's goal was to develop items with
benefits that some customers would consider valuable enough to warrant the
price. Because many benefits, such as appealing styling, cool image, or camera
quality, are subjective, Samsung's product development is often a joint effort
among designers, engineers, production teams, and marketers.

Brand Building Campaigns. Even the best products can fail without proper
promotion, so Samsung's branding efforts have been as important as innovation.
The company's marketing strategy therefore focused on creating advertising
campaigns to improve Samsung's brand image. Eric Kim was appointed head of
his marketing efforts globally, restructuring the company's sales channels in line
with the goal of establishing Samsung as a high-quality brand. As part of this
effort, Samsung withdrew many of its products from discount chains and began
selling them through major electronics stores such as Best Buy and online
platforms such as Amazon.

Samsung PESTLE Analysis

The evaluation of Samsung's business strategy across various aspects is done

by PESTLE analysis. This analysis takes into account external factors such as
political, economic, social, technological, legal and environmental (PESTLE)
aspects that may affect Samsung's business. By examining these factors,
PESTLE analysis provides insight into various external scenarios that may affect
Samsung's business. This framework is essential for companies like Samsung to
understand market dynamics and enable them to continuously improve their
business operations. PESTLE analysis is also known as PESTEL analysis. Let's
start with Samsung's PESTLE analysis.

Political Factors. An organization's success is highly dependent on political

stability. Businesses can thrive only when political factors favor their business.
While Samsung faces minor problems in India, it faces political pressure in Latin
American and African countries. A volatile political environment, where
government structures are prone to sudden changes, can lead to business
disruptions and losses. There is a possibility. Good trade relations between the
two countries are extremely important and have a direct impact on business.
Samsung recently faced challenges in South Korea due to strained relations with
North Korea. With operations in more than 80 countries, Samsung is grappling
with the threat of terrorism, which poses a grave threat to its business. However,
emerging markets such as China and India provide a favorable business
environment for Samsung, allowing the company to capitalize on market
opportunities.
Economic Factors. An economic downturn could adversely affect the amount of
money consumers have to spend, especially in developed countries, prompting
Samsung to pursue profitable ventures in emerging markets. Market volatility and
exchange rates Rate fluctuations can also have a significant impact on a
company's financial health. Despite these challenges, Samsung managed to
survive the economic crisis in South Korea, earning KRW 200.7 trillion despite
rising household debt. Such companies are affected by economic conditions, but
they also have a significant impact on the economy and employ thousands of
workers. However, fewer employment opportunities will lead to lower disposable
income, which may lead to lower spending on electronics.

Social Factors. Social factors that influence Samsung's PESTLE analysis include
customs, traditions, and practices that differ among different groups, influencing
product demand and willingness to work. Samsung successfully implemented its
global strategy while adapting to the needs of local customers in various
countries. Ever-changing consumer preferences can have both positive and
negative impacts on your business. Brands like Samsung must consider these
socio-cultural forces when strategically planning their marketing efforts.
Samsung's smartphones and tablets have adapted well to the demand for large-
screen devices, with the Galaxy series popular in major markets. Additionally, the
company prioritizes ethical behavior and recognizes that corruption can have a
negative impact on the company's brand value.

Technological Factors. The technological factors in the PESTLE Analysis of

Samsung are mentioned below: Today, brands are leveraging technology to
convey their unique brand image. As a technology-driven company, Samsung
has successfully used innovation to gain competitive advantage. Their
commitment to bring new products to market is unwavering. Additionally,
Samsung uses various digital technologies to market its products and build
unique customer relationships. Established cellular networks in the United States
directly support the use of mobile devices. This is essential to ensure a seamless
customer experience for voice and data transmission. However, network failures
can lead to customer dissatisfaction during extreme weather conditions such as
hurricanes and storms. Additionally, Samsung has invested heavily in his R&D,
combining extensive research with technical know-how to make SUHD TVs very
attractive to consumers.
Legal Factors. Samsung faced stiff penalties for copying Apple's iPhones and
iPads, damaging the brand's reputation with consumers. The legal battle
between the two companies lasted more than six years, with Apple ultimately
winning and receiving hefty damages. But when Galaxy Note 7 phones began to
explode around the world, Samsung faced another setback, with 527 South
Korean customers reporting the cost of replacing the device and demanding
insecure phones to use. This resulted in a lawsuit seeking compensation for the
psychological effects of the incident. Dealing with legal issues can be difficult in
developed countries where companies must comply with numerous labor and tax
laws and face serious consequences such as large fines. For this reason,
Samsung has implemented a comprehensive set of rules and regulations for
employees and workplaces to avoid violations. (Vanamali, 2021).

Environmental Factors. In today's world, customers are increasingly concerned

with sustainability and holding companies accountable for their environmental
impact. Consumers tend to prefer brands that source their products ethically and
actively work to reduce their carbon footprint. Samsung has made significant
efforts to reduce energy consumption and manage risks associated with water
use. The company has implemented energy management systems in all
workplaces to effectively track and reduce energy costs and consumption. In
addition, Samsung has developed and implemented management policies
regarding the use of chemical substances. We have set targets to significantly
reduce greenhouse gas emissions throughout the product lifecycle and have
established a comprehensive framework for managing greenhouse gas
emissions during product logistics and travel. In addition, we monitor her GHG
emissions for our suppliers. Samsung also struck a deal with Green
Development to help residents of Mombasa, Kenya, by providing bioethanol-
powered cookstoves. This initiative has had a significant positive impact on the
lives of local residents. (Vanamali, 2021).

2.3 Conclusion

PESTLE analysis is a framework used to evaluate Samsung's business strategy across

various aspects. It takes into account external factors such as political, economic,
social, technological, legal and environmental (PESTLE) aspects that may affect
Samsung's business. This analysis provides insight into various external scenarios that
may affect Samsung's business. Samsung has faced challenges in South Korea due to
strained relations with North Korea, but emerging markets such as China and India
provide a favorable business environment. Economic factors such as an economic
downturn could adversely affect the amount of money consumers have to spend,
prompting Samsung to pursue profitable ventures in emerging markets.
Samsung's PESTLE analysis includes socio-cultural, technological, and legal factors.
Social factors include customs, traditions, and practices that differ among different
groups, influencing product demand and willingness to work. Technological factors
include using innovation to gain competitive advantage, investing in R&D, and facing
stiff penalties for copying Apple's iPhones and iPads. Legal factors include copying
Apple's iPhones and iPads, damaging the brand's reputation with consumers. Samsung
has implemented a comprehensive set of rules and regulations for employees and
workplaces to avoid violations.

It has also made significant efforts to reduce energy consumption and manage risks
associated with water use, and has developed and implemented management policies
regarding the use of chemical substances. It also struck a deal with Green Development
to help residents of Mombasa, Kenya by providing bioethanol-powered cookstoves. This
initiative has had a positive impact on the lives of local residents.

CHAPTER 3 RESEARCH DESIGN AND METHODOLOGY

3.1 Research design.

The data and analysis presented here are from secondary sources. To evaluate
acquisition effectiveness, most research have utilized the same strategy, with event
studies being the most

common. Multiple studies have also utilized an interdisciplinary strategy. These studies
provide a solid groundwork for establishing whether or not there is a connection
between methods, whether or not many methods may be utilized interchangeably, and
whether or not a single methodology can be used to evaluate acquisition efficiency.
Increases in operational cash flows after a merger are strongly correlated with
anomalous stock returns at the time of the merger announcement, according to
research conducted by Healy, Palepu, and Ruback (1992) using the abnormal returns
event study approach.

Secondary research uses data and information from previously published studies
(Church, Russell M. (February 2002)). To find out what data is needed, researchers
often do secondary research first (McCrocklin, S. (2018, October 4). When embarking
on a new investigation, secondary sources make for a convenient jumping off point. The
reliability of secondary sources varies according to the reputation of the person giving
the information (Treadwell, D. F. (2016).

3.2 Method of data collection

Secondary Research. Using bibliographic techniques to apply secondary sources, the

approach provided in this research is wholly qualitative in nature. Thus, the information
that is meant to be shown in the subsequent analysis is the result of an Internet search,
the component of which is primarily the company's website, magazine and news, and
articles. Similarly, the PESTLE analysis is used as a qualitative technique for
pinpointing details about the organization and its internationalization efforts. By doing
so, the corporation hopes to determine which overseas expansion strategies will provide
the greatest returns.

3.3 Research Ethics

The ethical implications of research must be taken into consideration at every stage,
from planning to analysis to conclusion. The participants should be given a permission
document that explains the research in detail so that they understand what is being
asked of them. There has to be a way for respondents to cancel their participation in the
main response surveys if they change their minds later. The confidentiality of the
participants' replies during storage and management must be guaranteed. The
questionnaire used in this research adhered to all of these guidelines meticulously,
guaranteeing reliable results and interpretations.

Chapter 4 Conclusion and recommendation

Conclusion

Finally, Samsung's success may be attributed in large part to the company's deliberate
choice of tactics that enable it to achieve its objectives. The company's brand, policies,
and practices are all in a strong position thanks to the strategic measures made to
appeal to a global audience. Similarly, the research at hand may shed light on
Samsung's inner workings from a purely managerial vantage point, allowing for an
assessment of the company's adaptability to enter new markets and secure an uptick in
revenue over the course of the previous few years. Although there have been
challenges, the company's ability to constantly assess its surroundings has allowed it to
evolve with the times and lead to revolutionary changes in the industry. With Samsung's
help, businesses of various stripes may find the right fit thanks to the company's
internationalization plans. It is crucial, however, to have an in-depth understanding of
the field in order to behave appropriately at each given juncture.

Recommendation

Throughout its history in the market, Samsung has consistently sought out the best
practices to present the world with a unique and outstanding performance, so it is
important to know that these efforts have been focused on achieving success.
Companies who are just starting out in foreign markets or would want to extend their
reach may learn a lot from Samsung's internationalization experience.

Samsung is a technological firm, but other businesses outside of the tech sector may
help them with the market expansion techniques they've selected. In this vein, it's worth
 noting that the study's recommendations may help other businesses do their own in-
depth analyses of the industry using gathered and existing data, all with the end goal of
making incremental improvements. Companies should thus do thorough analyses of
each of these areas in order to properly comprehend Samsung's activities and
successfully follow its steps towards success. Any business that aspires to achieve the
same level of success as one of the world's largest companies can learn from
Samsung's approach to each of the issues raised above.

CHAPTER -5 Project Timeline (Gannt Chart)

According to Gantt (2018), Gantt charts are "commonly used in project management
and are one of them." This Gantt chart of the completed research study will assist in
better comprehending all the challenges that were faced. At the outset of any project, it
is essential to define the objectives that will be pursued. In particular, research that is
relevant to the subject that has been chosen is regarded as well-defined research. This
will make everything very obvious.

Gannt chart aug spt oct nov dec

Identify the research area/topic

Formulate the research design

and

methodology

Write the research

proposal/outline of the project

Literature review

Data collection Data analysis

Complete the final draft

Project due for

submission

CHAPTER-6 REFERRENCE

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2. Glowik, M. (2016). Market entry strategies : internationalization theories, concepts

and cases of Asian high-technology firms. Berlin ; Boston: De Gruyter Oldenbourg.

3. MBA Skool-Study.Learn.Share. (2012). Samsung PESTLE Analysis | MBA Skool-

Study.Learn.Share. 

4. news.samsung.com. (n.d.). Samsung Electronics’ Brand Value Makes Double-Digit

Increase, Taking a Spot in the List of Top Five Best Global Brands 2022.

5. ‌Rees, K. (2021). Origins, Growth and Success: The History of Samsung.

6. news.samsung.com. (n.d.). Samsung Electronics’ Brand Value Makes Double-Digit

Increase, Taking a Spot in the List of Top Five Best Global Brands 2022

7. Edubirdie. (n.d.). Marketing Strategy of Samsung Company

8. buildd. (n.d.). Samsung’s Marketing Strategy: How Samsung became a Pioneer in
the Electronics Industry despite all odds.

9. ‌Simonin, D. (2014). International Strategy: The Strategy of Samsung Group.

10. Yoo, Y. and Kim, K. (2015). How Samsung Became a Design Powerhouse. Harvard
Business Review.

11. Ivanov, D. (n.d.). Competitiveness over profits: Samsung’s new strategy for 2023.
12. ‌Jia, M. (2022). Analysis on the Internationalization Strategy of Samsung
Group. Accounting and Corporate Management.

13. journalijcar.org. (n.d.). Strategic analysis of samsung electronics. ‌