Category: Samsung

The company creates value for the customer by offering a product with a broad range of benefits. Those benefits may include specialized functions, new technologies, modern design or overall high quality of the product. The advantages of buying the product from the point of view of the customer should out weight the expenses. The company should put a lot of effort in meeting or even exceeding the expectations of a client. However, the price of a product should always be appropriate (Lee, Bae, and S. Lee 113).This part of marketing is highly important because “a carefully developed value proposition has a significant role as it represents an offering of value aimed at engaging and building long-term customer relationships” (Payne and Frow 223). This means that it is necessary to create a high value for customers because they prefer to buy a new flat-screen TV every few years.

The mission statement of Samsung is rather straightforward. It is “inspire the world, create the future” (Samsung.com par. 1.). It fits the company very well because it is known for the original design of their products and innovative technologies. Samsung changes the mission statement every decade, so it stays up-to-date. It is quite efficient in representing company’s commitment to having a customer focus. However, it could be improved to have more focus on the client. A current mission statement is quite powerful, but it lacks words that could demonstrate how much the company cares about the customers. Samsung likes to think globally, its goal is to change the industry and to advance technologies, so there is a better future for everyone. However, just one phrase added about the customers would make it even better.

The strength of this product is the brand name that is known worldwide. Most of the customers often prefer to buy electronic products made by a trusted brand, which is great from a marketing standpoint.

The weakness of this product is a huge amount of competitors on the market. A lot of competitors try to gain advantage by their pricing politics. Some of those brands start catching up with their product design and technologies.

One of the hugest opportunities is to provide even better support for video and audio streaming services. It is a relatively new territory for flat-screen TV manufacturers so there a huge opportunities available.

The biggest possible threat is a possibility of new technologies being developed by competitors. A product should always be innovative on this market, so there are always risks connected with this factor.

According to the table, Panasonic 40-inch flat-screen TV has ranked the highest on the criteria of both width and price. Samsung 40-inch flat-screen TV has ranked the highest on the criteria of warranty terms. VIZIO 40-inch flat-screen TV has ranked the lowest in all three columns. Panasonic has ranked the highest overall thanks to both width of a product and the lowest price, which is crucial for modern customers. Even though Samsung did not rank the highest in this chart, this company still can be called the leader on the market. Other products are only the followers because many different factors were not accounted for, such as a famous award-winning design of Samsung products (Chung and Freeze 27). This product category is extremely competitive, and companies use different methods to gain the advantage on the market.

Table 1. Competitive analysis

Works Cited

Chung, Kyung‐won, and Karen Freeze. “Samsung Electronics and the pathway to integrated design success.” Design Management Review 20.3 (2009): 20-27.

Lee, Kun Chang, Youngil Bae, and Sangjae Lee. “Integration of ontology-based decision support and a cognitive map approach to predict flat-screen TV market trends.” Technological Forecasting and Social Change 95 (2015): 109-119.

Payne, Adrian, and Pennie Frow. “Developing superior value propositions: a strategic marketing imperative.” Journal of Service Management 25.2 (2014): 213-227.

Samsung.com. Vision & Mission. n.d. Web. 2015. Web.

Reactions

The Galaxy 7 Note case study evokes different reactions because of the initial Samsung’s response and the actions that followed. The company publicly denied that the smartphone was faulty and below the industry standards. I believe it was inappropriate for the company to deny such accusations despite knowing that the product was prematurely launched to compete with Apple’s iPhone 7. However, when the issue became a global crisis, Samsung attempted to correct the unethical business practices by recalling the faulty gadgets and replacing them with newer versions. This was a strategic move that promoted the company’s corporate social responsibility (CSR) and enhanced its competitiveness.

Background Experiences

Following ethical practices ensures that organizations promote the workers’ integrity and enhance business image and trust among the stakeholders. I believe that adopting business ethics as a guiding principle in the production process and customer relations to avoid negative publicity is critical. I feel that Samsung’s case shows the significance of using moral laws to support corporate social responsibility initiatives as a ‘means’ to achieve business goals. The company produced Galaxy 7 Note without proper testing to compete with the iPhone 7, endangering the lives of many users. Although Samsung denied the initial allegations of the smartphone exploding, it took considerable measures to recall more than 2 million phones worldwide and replace them with improved versions. In my opinion, the move shows that organizations should include customer value and experience as part of the core business strategy that informs CSR practices.

Important Takeaways

The case provides numerous lessons that companies should consider in their CSR operations. Negative publicity significantly affects the company’s reputation and can impact customer loyalty leading to fewer profits. However, through practical CSR approaches, a firm can redeem its name and improve its market share. Jizi et al. (2013) claim that a special relationship exists between corporate governance and CSR efforts. The study found that CEOs might use higher CSR disclosures to appease the stakeholders to salvage their reputation. This indicates that CSR can be used as a strategic initiative to restore a brand’s image after a public relations crisis. Samsung exploited this philosophy to ensure business continuity and competitiveness in the dynamic smartphone industry. Further, it emerged that the company was promoting ethical business practices, which resonates with consumers’ interests. In that case, the increased market share resulted from the widely publicized CSR initiative of recalling the phones and replacing them with newer models.

Other Comments

Kant’s categorical imperative assumes that individuals should act in ways that can be regarded as universal laws. This implies that making others happy is a moral duty not imposed by statutes (Tapek, 2018). Applying categorical imperative in Samsung’s CSR stunt shows that the company chose to replace the faulty smartphones to gain a competitive advantage. The organization attempted to present itself as an ‘ethical corporation’ despite using CSR as a ‘means’ to achieve the business goal (Tapek, 2018). This approach can help other organizations to develop sustainable CSR initiatives to ensure continuity by ethically appealing to the consumers. Although the company might have incurred losses during the process, the long-term organizational goals were achieved. In most cases, the categorical imperative fails to apply in businesses because of the costs involved in fulfilling these mora duties and raising the shareholder value. Despite this hindrance, Samsung was able to overcome these expenses to promote customer happiness. Therefore, firms can selectively apply this concept in their CSR approaches to enhance the sustainability of the business image.

References

Jizi, M. I., Salama, A., Dixon, R., & Stratling, R. (2014). Corporate governance and corporate social responsibility disclosure: Evidence from the US banking sector. Journal of Business Ethics, 125(4), 601-615.

Tapek, K. (2018). Corporate social responsibility in the light of Kant’s categorical imperative. Annales. Etyka w życiu gospodarczym, 21(7), 85-96.

Introduction

Samsung represents one of the world’s leading corporations engaged in the production of electronic devices and the development of information technology. The Galaxy line is one of the most popular product groups among the company’s achievements. The challenge is to identify the target market for their new Galaxy Note20 smartphone, with a specific focus on targeting New England. It is required to draw up a rough portrait of the main audience that can purchase this product, and describe its main characteristics and strengths. Finally, one needs to come up with campaign ideas that capture the client’s attention with New England culture. It is a clear plan of marketing actions that will be able to realize the potential laid down by the creators of this smartphone.

Device Innovations

Discussing the technical characteristics of this smartphone, it should be noted the financial policy of Samsung, which produces phones for various economic classes of society. The corporation needs this to cover even larger niches of the electronic device market, offering less expensive alternatives for those who want to purchase a branded product but cannot overpay for it. The specificity of Note 20 is that it comes in two versions. The main version of this smartphone is called Ultra and has a full package of technical innovations. At the same time, the main innovations remain in their more budgetary version with a reduced set of available options.

The main innovation of this smartphone is the so-called SPen – a device that resembles a stylus in the currently outdated first-generation communicators. However, the advantages of this stylus are much higher than those of a standard similar instrument. SPen is a complete and technically advanced tool that goes far beyond just clicking on the screen. This tool has many functions that can be useful for an adult working in any professional field related to information. SPen features, for example, the ability to recognize text directly from a photograph, which is very useful for people working with a large amount of scientific material (Specs, 2021). Moreover, this small stylus allows the user to control presentations when they are displayed on the monitor. In other words, it is an adult working in business, science, teaching, or marketing that can appreciate the main advantages of this smartphone. Thus, one can make an unambiguous conclusion that the marketing campaign should be targeted at the wealthy people of the middle- and upper-middle class.

Distribution Strategy for New England

There are several ways to organize the distribution of Samsung’s smartphones, but these strategies should be developed and implemented simultaneously. First of all, the company should focus on the official stores, and representatives of the company, in which phones will be sold at a standard price (~$650), focusing on individual customers. At the same time, the first batch of these devices can be sold at 10-15% more to create additional excitement around the novelty (~$750).

It should be noted that these smartphones are still more affordable than the production of competitors – the iPhone 12, for example, costs 800 dollars. By slightly lowering the price, the company’s business remains a winner, since they make the customer perceive the purchase as more profitable. Probably, Samsung should also create an opportunity to pre-order a smartphone on the official website of the company. This is necessary for the client to have the advantage of receiving a phone by delivery or by mail, avoiding many hours of waiting in queues. The firm is the leading wireless retailer in New England and America’s fourth-largest player in the field. Collaboration with this store would thus be mutually beneficial.

Another possible option is the resale of large consignments of goods to cell phone stores and household appliance stores. In particular, an alliance with New England Wireless, which is based on the sale of purely wireless tools, would make sense. Another option for distributing the phone is the sale of wholesale lots of smartphones for company employees who need the most up-to-date mobile technical equipment. Sufficiently wealthy companies can buy lots of smartphones for the office since these smartphones and their innovations are ideal for working with information.

By creating excitement around the product due to the initially increased price, it is possible to maintain the attention of potential customers of this product. In particular, one can turn the client to the product by gradually lowering the price to the established standard, but there are other options as well. For example, it would be useful and quite profitable to be able to buy a phone in installments, while the client is free to independently choose the terms in which they will pay. Samsung is one of the key companies in the modern market, which affects the relatively high cost of its products. It is in this connection that it makes sense to provide the client with the freedom to pay for the goods. A person who is unable to buy the necessary device due to an inflated price in this way can still perceive the installment plan as a fair and, therefore, profitable financial solution.

It should be borne in mind that Samsung, despite its rapid rise in this century, is still not the only dominant company in the modern electronic device market (Yun et al., 2019). This is why the phone’s release date and marketing strategies should not coincide with the advertising campaigns of such prominent companies as Apple or Sony. The corporation should not fight openly for successful sales – rather, it is required to determine as accurately as possible the time slot when the product will be successfully sold on sale. The differences between Note20 and other modern smartphones should also be emphasized since this is how the audience who needs it will draw to the product.

Advertising Strategies

Customer perception plays an important, in fact, decisive role in the process of selling a product at any marketing level. That is why an advertising campaign is required that adapts to the needs of the client and makes them realize that this particular smartphone is capable of positively affecting the quality of their life and work (Amani & Akbari, 2021). At the same time, focusing on the territory of New England, it is necessary to give advertising a unique specificity, a flavor that would emphasize the attention of the campaign developers to the client as to a person with a real homeland and history.

The culture of New England is famous for its historical characteristics, which are deeply rooted in the history of the founding of the American state. Especially noteworthy is New England literature, replete with the names of prominent writers from Emily Dickinson to Jack Kerouac (O’Donnell, 2017). It is probably in this context that a smartphone like the Note20 can have a special marketing benefit. The development of advertising is related not only to the organization of work and personal life but focusing to the creation and writing of creative texts. Advertising that allows New England residents to remember their cultural roots and feel like they are part of it could result in major success. This smartphone can be presented to the audience as ideal for solving creative problems – writing poems or prose stories. The emphasis on poetry seems original in this context and attracts positive attention.

It also seems necessary to focus not only on attracting new customers to the attention of the product but also turning to already proven and reliable customers who prefer Samsung to other manufacturers. An advertising campaign that hints at the existence of a real connection between the company and its consumer could be a great success. By showing on the screen, presumably, the evolution of Galaxy models, one can evoke in the viewer committed to this line a deep sense of nostalgia and gratitude to the company. Territorial specificity would have worked no less effective in this context. New England has the longest history of any other region of America as a state. Attention to history and respect for traditions and their development, being implicitly encoded in an advertising campaign, would only strengthen the client’s desire to become involved in the current history in the making.

Conclusion

Thus, from the analysis of the innovative innovations proposed in the Galaxy Note20 and the search for applied benefits, a portrait of a potential client was gradually formed. Employees of firms and corporations of the middle- and upper-middle-class can either buy a phone or get it in installments, in two versions, the original and the budget. An advertising campaign that draws attention to the history and culture of New England, highlighting the client’s creativity with this smartphone, appears to be potentially highly successful.

References

Amani, V. J., and Akbari, H. (2021). Effects of consumer perception on decision to purchase: A case of Samsung Electronics. International Journal of Business and Management Studies, 13(1), 22-37. DOI:10.48080/ijbms.20210102

O’Donnell, J. (2017). Living shorelines: A review of literature relevant to New England coast. Journal of Coastal Research, 33(2), 435–451. DOI:10.2112/JCOASTRES-D-15-00184.1

Specs: Galaxy Note20 5G | Note20 Ultra 5G.(2021). Samsung.

Yun, B.-S., Lee S.-G., & Ayoshima, Y. (2019). An analysis of the trilemma phenomenon for Apple iPhone and Samsung Galaxy. Service Business, 13, 779-812. DOI:10.1007/s11628-019-00405-5

Introduction

Marketing refers to “the set of institutions, activities, and processes for creating, communicating, delivering, and exchanging goods and services that have value for customers, partners, and the society”. Thus, marketing aims at identifying and satisfying customers’ needs effectively.

Marketing is crucial to an organization’s success. It enables an organization to “integrate and align its resources and functions to an overall goal of customer satisfaction”. Effective marketing requires a marketing plan.

A marketing plan refers to “a written document that describes how an organization intends to reach its target market”. It entails a situation analysis, an organization’s goals, marketing strategies, and marketing mix decisions. This paper discusses the marketing plan for the successful development, commercialization, and introduction of the Samsung galaxy tablet into the market.

Situation Analysis

Strengths

In the past decades, Samsung has emerged as one of the most competitive companies. Samsung boasts of several strengths. First, it focuses on producing electronic devices with a hardware system, which is compatible with most software and operating systems.

This has enabled Samsung to have an edge over its competitors such as Apple. As a result, “Samsung’s Android mobile phones and tablets have gained a huge market share as opposed to Apple’s iOS and OS X”.

Second, Samsung is one of the most innovative mobile phone companies. For example, “in 2011 Samsung was among the top patent assignees in the United States of America”.

The acquisition of several patents has enabled it to surpass most of its competitors. Additionally, the company has won several awards for its products’ designs, which are user friendly and unique. Samsung also has a major focus on designing environmentally friendly products.

Third, the company has a strong financial base because it has a significant market share in a number of its products’ categories. Moreover, Samsung’s manufacturing firms are located in countries where the cost of production is relatively low. As a result, it incurs low costs of production; hence, it can offer its products at a lower price.

Fourth, Samsung has managed to market its brand effectively. It is among the top rising brands. “From 2011 to 2012, the company’s popularity rose by 40 percent”. This rise was mainly attributed to strategic marketing techniques. For example, the company uses varied avenues such as sporting events to market its products.

Weaknesses

Despite its strengths, Samsung faces a number of challenges. First, the company lacks its own software. Software production can enable a company to attain a high profit margin. It also helps to popularize a company’s product and promote its brand loyalty. Therefore, Samsung is disadvantaged compared to its main competitors such as Apple.

Second, the company has businesses in a number of industries. Thus, “it might lose focus by competing in several industries”. In the past years, Samsung has been found guilty of patent infringement. Consequently, this has had a negative effect on its reputation.

Third, Samsung is one of the largest electronic companies in the world. Nonetheless, the company experiences a relatively low gross profit margin due to the company’s aggressive price cuts on its products.

Opportunities

Samsung has numerous opportunities that it can seize in order to enable it expand further. For instance, “the smartphone market in India is one of the least penetrated among the Asian countries”. Therefore, its strong presence in India can enable it to maximize gains in India’s smartphone market.

The introduction of smartphones and tablets has led to a major increase in the demand for application processors. Fortunately, “Samsung is one of the main manufacturers of application processors for tablets and smartphones”. Therefore, Samsung stands a better chance of meeting this demand because it has a superior experience in the production of processors.

Samsung is also one of the dominant players in the tablet market. Therefore, the company has high chances of expanding its niche in the tablet market by producing unique and high quality tablet models.

Samsung has a large patents portfolio. As a result, it has a competitive advantage over it rivals. Therefore, it can be able to acquire more patents through acquisition of other firms.

Threats

Samsung faces a number of threats to its business operations. First, the smartphone market in the developed countries is highly saturated; hence, it might not reap major gains in the developed countries.

Second, rapid technological change is also a major threat to the company. Currently, Samsung is under pressure to keep on producing new products at a faster rate. However, this is often difficult whenever a company aims at being innovative and successful because innovations take considerable time.

Third, Samsung is prone to experience major price wars. For instance, the company has been offering its products at a relatively lower price compared to its competitors. Therefore, its competitors may also follow the trend. Unfortunately, this will significantly erode Samsung’s profit margins, which are already low.

Industry Trends and Competition

Samsung is one of the major companies in the tablet industry. Others include Apple, Asus, Acer, and Nokia. All the players in the tablet industry have continued to produce new tablet models. For example, at the beginning of 2014, Asus introduced the Transformer Book TD300. “The new tablet model by Asus switches instantly from Windows 8.1 to Android and back”.

In a similar manner, Apple has also developed new tablet models such as the iPad Air, which “has a thinner aluminum body chassis, identical to the iPad mini”. Furthermore, the tablet market is likely to expand due to an anticipated decline in the use of laptops. A number of people have adopted tablets because of their convenience.

Tablets are portable and effective compared to laptops and desktops. Consequently, there has been a rise in the demand and supply of tablets in the market. This has led to a stiff competition among various companies. Therefore, the price and quality of a tablet plays a critical role in determining customers’ purchasing patterns.

The Organization’s Mission Statement

A mission statement is a statement of purpose. It explains the reason for the existence of an organization. It guides the decisions and actions of an organization. A mission statement for a commercial company should comprise three major elements.

These include “the key market, the contribution of the organization, and the distinction of its product or service”. Therefore, Samsung will adopt the following mission statement: “to be the most successful electronic company in the world by developing user friendly tablets that brings a lively experience to all internet users.”

Performance goals

The company will pursue the following goals. First, the company aims at realizing a monthly turnover of $500,000. Second, the company aims at supplying the Samsung galaxy tablet to the major online stores by the end of the first month after its launch. Third, the company plans to distribute the Samsung galaxy tablet in all Asian countries within the first six months.

Marketing strategy

A marketing strategy should “enable an organization to concentrate its resources on the optimal opportunities with the major aim of increasing sales and achieving sustainable competitive advantage”. A marketing strategy is one of the most essential elements of a marketing plan.

A number of marketing strategies are often developed as long-term plans. In such a case, an organization is often required to develop a tactical plan. A tactical plan spells out what an organization aims at achieving within a period of one year.

There are different types of marketing strategies that a company can adopt. The choice of a particular marketing strategy is largely determined by the situation analysis.

For instance, the strengths and opportunities identified in the situation analysis determine the strategy that a company adopts. In most instances, a company’s success is determined by its strengths and opportunities. Similarly, the choice of a marketing strategy depends on an organization’s mission statement, as well as, the company’s goals and objectives.

Some of the marketing strategies include the product differentiation strategy, cost leadership strategy, and the market focus strategy. The product differentiation strategy involves the creation of a product or service that is distinct from one’s competitors. Therefore, a company that adopts this strategy will have to ensure that its product has specific attributes that are unique from other products in the market.

On the other hand, the cost leadership strategy is intended to enable a company to attract cost-sensitive customers. Thus, a company will sell its product at a relatively lower price compared to its competitors. This strategy is most suitable for a company, which incurs lower production and marketing costs.

The market focus strategy requires a company to describe its market scope. Thus, a company can choose to have a narrow market scope or a broader market scope. Additionally, “a company may opt to specialize in the production of a particular product in order to meet the unique needs of customers in a given market segment”.

Samsung will adopt the product differentiation strategy. This strategy will be most suitable for commercialization and introduction of the Samsung galaxy tablet into the market. The Samsung galaxy tablet has a distinct model from other tablets in the market.

Its model is user friendly and can enable internet users to enjoy lively internet browsing. For instance, the Samsung galaxy tablet has a wider screen, which can enable a user to perform multiple tasks. Additionally, the Samsung galaxy tablet is lighter; hence, portable.

Market Segmentation

Samsung targets people who are eighteen years and above. The company targets adults because the galaxy tablet will facilitate their activities. For example, the tablet has several applications with varied functions. The Samsung galaxy tablet will also be suitable for both male and female users.

For instance, the galaxy tablet has different colors such as black, yellow, and silver. Thus, users have a chance to make a choice between the colors available. Additionally, the Samsung galaxy tablet is lighter. As a result, it can easily fit into a jacket’s pocket or in a handbag.

Samsung also targets all professionals in various fields. For instance, the galaxy tablet will be suitable for businesspersons who use the internet several times in a day to communicate with clients.

It is also suitable for professionals who may wish to prepare and make presentations. The galaxy tablet will also be suitable for professionals who travel regularly. Therefore, the Samsung galaxy tablet can enable them to work while travelling.

Integrated Marketing Mix

Product

Samsung galaxy tablet is seven inches long. It has two cameras and is compatible with a flash disk. “The Samsung galaxy tablet uses Android 2.2 with market support”. It also has a number of pre-installed applications. Finally, “the Samsung galaxy tablet has five default home screens”.

Price

The Samsung galaxy tablet will cost approximately $600 to $500. However, the price will differ from one country to another. One of the major price determinants for the Samsung galaxy tablet will be the market situation in a given country. For instance, factors such as market competition and cost of operations incurred by distributors will influence the local prices in various countries.

Location and Distribution

Samsung dealers will distribute the Samsung galaxy tablet to all regions within their respective countries. The tablet will be available in the major retail stores in various countries. In addition, customers will also have the privilege to purchase the tablet from online stores.

Promotion

Samsung will use various advertisement channels to market its galaxy tablet. For instance, Samsung will use both print and electronic media for advertisement. The company also intends to organize major sales promotions in the first three months.

Summary and recommendations for the execution of the plan

This marketing plan aims at maximizing Samsung’s profits. It provides a detailed description of the company’s strengths such as a large market share, superior experience in the production of electronic devices, and sustained innovation. The company intends to use the product differentiation strategy as its marketing strategy.

The company should take note of the following factors in order to execute the marketing plan effectively. First, the company should conduct regular evaluation in order to determine progress. It should use the evaluation results to make improvements where necessary.

Second, the company should ensure a timely distribution of the tablets immediately after the launch of the galaxy tablet. Third, the company should minimize costs in the execution of the marketing plan in order to increase its gross profit margin

Conclusion

From the above discussion, it is evident that a marketing plan is a crucial tool that enables a company to have an edge over its competitors. It provides a situation analysis that spells out a company’s strengths and opportunities. Therefore, a marketing plan helps to focus a company’s operations, goals, and decisions.

References

Jurevicius, O. (2013, May 13). SWOT Anayses. Retrieved from Strategic Management Insight: https://www.strategicmanagementinsight.com/

Proctor, T., & Chernev, A. (2002). Strategic Marketing: An Introduction. Psychology Press: London.

Samsung. (2013). Galaxy Tabs. Retrieved from Samsung: https://www.samsung.com/us/

Whalley, A. (2010). Marketing Definition. London: Bookboon.

This is to inform you that the Authentic Auditors firm is in a position to offer auditing services to your company. We have audited companies with a structure similar to that of Samsung in the recent past. Thus, we have the necessary expertise and experience to handle the work.

The audit can be completed within two months. At the end of the whole exercise, recommendations on the appropriate changes in your internal control system will be provided. We also intend to audit the annual accounts of the company as well as handle any other accountancy procedures that may be required by the company. The findings of the exercise will be compiled into a report that will be presented to shareholders during the annual general meeting.

Authentic Auditor is a firm that has been in existence for three years and has staff members specialized in different auditing services such as forensic audits. The cost of the services will depend on the amount of work that we are to accomplish and the level of expertise required. More so, the kind of risk our audit firm exposes to will be considered in calculating the total cost.

In case we are to offer auditing services on your annual financial statements only, then we will charge you a fee equivalent to 7% from that year’s profit after tax and dividends. If the services involve other procedures we will set a fee after knowing what the procedures entail although a fee of 2% from the profit after tax is charged for system audits and compilation of financial statements (Randy 26).

In the preparation of the annual financial statements, we often use international financial reporting standards. The statements produced by our staff adhere to a standard format and can be used or published anywhere in the world. Since the auditing exercise is carried out according to the international audit standards, any average accountant can understand the report (Moore & Parker 30).

Recommended changes in the internal control system are also provided in the simplest format to give management an easy time in the implementation process. However, we still provide help in improving the system when the managers fail to understand the recommended changes. The costs and benefits of each of the recommended changes are also provided to enable managers to make informed decisions (Roemer 16).

We will request cooperation from your management during the exercise by allowing the audit staff to access all your financial records and other sources of information that will enhance the audit as it is meant for the best interest of the company. In case of limited scope, we will be glad to seek further evidence from the managers via management representations. Confidentiality of your trade secrets and other important details will be highly regarded in the auditing process as we will sign an oath of secrecy enforceable in perpetuity (Macfie 42).

At the end of the whole exercise, our staff will provide some recommendations about the system changes. This will be after a thorough investigation of the internal control system that is in place and we will provide a qualified or unqualified report depending on the evidence gathered from the audit exercise. One of our staff members will present the report to the shareholders during the annual general meeting.

The exercise of gathering evidence will take a maximum of one and a half months while compiling the report will take at least one week. After which it will be reviewed by the partners and panels of our firm to ensure that the report is objective and reliable.

Works Cited

Macfie, Alexander. A Reader. New York, NY: New York University Press, 2012. Print.

Moore, Noel & Richard Parker. Critical Thinking: Memo. London, UK: McGraw-Hill. 2012. Print.

Randy, Barnett. Audit. London, UK: Aspen Publishers, 2010. Print.

Roemer, John. Equality of Opportunity, Cambridge: Cambridge University Press, 2009. Print.

Abstract

Purpose

The purpose of this study is to find out whether the use of diversification by Samsung in the penetration of the Saudi Arabian market has been successful. A case story is provided detailing how the company incorporated a combined approach to diversification to ensure its success. Currently, Samsung’s main concern is to remain relevant in a field that is constantly changing and crowded with both international and local competitors.

Research Design, Data, and Methodology

The case used academic secondary sources to collect data. The sources were retrieved from qualified and well-known publishers and journals. It is important to note that there are sufficient studies that have been done on the subject that made it possible to write the report.

Results

Several findings were realized after the literature review was conducted. The main finding that was recorded was the success of the combined diversification approach in the Saudi Arabian market. It can be argued that if the company had not used a combined approach then it would not have had the success it currently enjoys.

Conclusions

In conclusion, diversification indeed was the viable marketing strategy for Samsung in Saudi Arabia. Not only did the strategy allow the company to maintain its market share but it also ensured the growth of the company portfolio. Saudi Arabia is known to prefer local products. This goes to show the effort put up by Samsung to maintain the top spot in the industry in the region. It is crucial to note that the company has employed the use of other strategies in the same country before. However, diversification was selected due to its applicability.

Introduction

Samsung is one of the largest conglomerates in South Korea. Headquartered in Seoul, the company is well known for its electronic products even though it has ventured into other business lines as well. As of 2017, the company was valued at US$188.9 billion. One can argue that the company has had to use different strategies to penetrate almost all markets in the world. This is due to the differences in economies in the different markets it is in.

For example, it is the largest phone brand in Africa. To achieve this, the company came up with a marketing strategy that lowered the prices of its product in the African market. The reason is the lower economic status of the target group in that specific market. The same strategy is not applied in the US, where the economy is more stabilized. The assignment will, however, consider strategies that the company has used in Saudi Arabia. It is prudent to mention that it has employed the use of diversification as a key tool of entering the Saudi Arabian market.

The paper will have a literature review that will discuss the company’s application of the diversification marketing strategy in the Saudi Arabian market. Additionally, the methodology used and a case storyline will be provided. Findings and implications of the study will be presented alongside some discussion questions and answers and conclusions will be drawn from all the material that will have been discussed.

Overall, the paper will provide a comprehensive understanding of the stated strategy, detailing why it was the best option for Samsung when the company was trying to enter the Saudi market. A brief comparison will be made with other strategies that the company has used in the other markets as well. The paper will prove that combined diversification was the best marketing strategy for Samsung’s penetration of the Saudi Arabian market.

Literature Review

Overview of Industry and Company Background

The mobile phone industry has grown over the years at an alarming rate. Giachettia and Marchi (2017) attribute this to innovation and technology. The industry is highly populated with local and international companies all seeking to satisfy the needs of their target audience. One of the reasons for this is the fact that it is fast-moving. The target audience is also always looking for new and better smartphones for use.

As mentioned, technology and innovation have also played a big role in the advancement of the industry. The cell phone has been developed to offer maximum comfort and convenience for telecommunication. For example, smartphones have combined the traditional camera, radio, and recorder into one small package that individuals can carry at all times. Equally important to state is the fact that the Asia Pacific is the largest manufacturer of cell phones.

Samsung is one of the major manufacturers of smartphones. The company is prevalent in some areas such as Africa and Asia due to its flexible and affordable pricing. Indeed, the company employs different strategies to maintain its market share. Giachettia and Marchi (2017) add that Apple is the brand’s biggest competitor. Even though the company is well known for its mobile phones, it has also ventured into other businesses.

Some of these businesses can be linked back to the main business line while others are very different. For instance, the company makes mobile phones and household equipment such as fridges and washing machines. Even though the two are very different, they are tied together by the technology they use. However, the company also ventured into biopharmaceuticals, which are very different and not connect to its main business line at all.

Theoretical/ Exploratory Research

Diversification in marketing is a strategy that allows a new brand to penetrate a given market of interest by introducing a customized product for that target group (Bowen, Baker & Powell, 2015). There are several types of diversification strategies and even though companies usually adopt one in their marketing plan, they can also be combined for better results. The commonly used diversification strategies are the vertical, concentric, and conglomerate.

Gnizy, Cadogan, Oliveira, and Nizam (2017) explain that vertical diversification usually relates directly to the company’s main business line. It does this by going back to a stage in the production cycle and producing brands related to that stage. An example can be given to explain further. Company A is a real estate company and has been building houses for decades. If the company decided to use vertical diversification, it would look within the real estate and construction business. Therefore, it could start selling cement or paints and so forth. Whereas the product is new it is still tied to the company’s main business line.

The second type of diversification is concentric diversification. Bowen et al. (2015) explain that this type allows the company in question to make new products that help it manage any new technologies and maneuver the market system.

For instance, a bakery known for selling cinnamon bread can start producing biscuits to capture the market more. Indeed, whereas the two products are linked by the same production procedure, they are very different. This is unlike the third diversification strategy as products do not relate at all. Bowen et al. (2015) confirm that the conglomerate diversification strategy allows a company to make new products that have no relation to the current business lines or their distribution channels. For instance, a company that deals with phones starts producing food as well and so forth.

Gnizy et al. (2017) argue that the use of diversification as a marketing strategy is coupled with a need for difference both within the company and among the target group. Using the same M10 and M20 for further explanation, one can argue that the Saudi Arabia market feels “different” from “special” since they are the only ones currently retailing the product. Gnizy et al. (2017) reveal that companies use this strategy to increase their market value in a particular country. It is important to note that although Samsung is currently the largest seller of mobile phones in Saudi Arabia, Apple has taken a keen interest in the region as well.

There are three reasons why Apple is becoming more famous in the region. The first is the rise of the middle and upper classes of people in the country. These people can afford the more expensive Apple phones easily than before. Secondly, the influx of people from other countries and cultures into the Saudi market has led to a bigger interest in other brands. This is particularly the case of citizens from Europe and America, where Apple is the preferred brand. The third reason is the differences in technology and systems that people are keener on now. Indeed, one can state that the use of diversification in Saudi Arabia was tactical as it would raise the profile of the company and hold on to the number one spot in the market.

It is important to point out that Samsung is well known for using skimmed and competitive pricing as the core of its marketing strategy. Crespo, Suire, and Vicente (2016) argue that skimmed pricing is the use of high prices to target a select group of people. There are some Samsung products that high-cost. Crespo et al. (2016) reveal that the need to identify a certain class makes skimmed pricing one of the best marketing strategies.

The higher the price of a product the more valuable it becomes regarding identity and class. It is prudent to mention that skimmed costing also involves the lowering of prices to attract clients who could not afford the product at the time of the launch. Both Samsung and Apple are known for using this strategy to remain relevant. For example, a product that launches today and retails at USD 200 will not cost the same if a competitor introduces a similar product into the market. Additionally, if the same company releases a new version of the same product, the price of the initial item will drop.

As mentioned, Samsung has also used competitive pricing to retain its market share. The company uses market research to come up with the right pricing strategy. Albeit the changing economy and ease of accessing money in Saudi Arabia, the company has not raised its pricing much. Bowen et al. (2015) admit that competitive pricing, albeit important, should be considered due to the high possibility of inflation. Even though the country has been on an upward economic scale, Samsung has to put in measures to protect its brand.

Cohesive Summary of All Relevant Findings

One can denote several things from the literature review. The first is the fact that Samsung uses diversification as a marketing strategy to reach its different target groups more effectively. This is especially the case with affordable versions of their mobile phones. Indeed, even though the company uses both skimmed and competitive pricing techniques, it still provides the expected type of product to its clientele.

Unlike Apple, its biggest competitor, Samsung has created a niche for itself in the market due to keen market research that involves all types of clients. It is important to point out that there are studies that show that the use of diversification can also help a company maintain its market share value. One can argue that this is the main reason why Samsung chose the diversification strategy for penetrating the Saudi Arabia market. Despite the broad nature of diversification, companies can incorporate any of the principles of the different types of diversification in their marketing plans.

It has also been realized that many of the companies that use diversification as a marketing strategy do so primarily to develop a culture of the class. Many consumers associated some brands with class. Diversification makes this easily achievable regardless of the price of the item. Indeed, one can argue that companies have used pricing as a key method of dividing their target audiences into classes. For instance, Samsung has several versions of the Galaxy brand that are very expensive. These versions are perceived to be of a higher status than the other affordable Galaxy products. To ensure that everyone has the chance of being in this pre-determined class, Samsung lowers the prices of previous versions when they launch new brands of the same line.

Methodology

Data will be collected empirically through secondary sources. This means that the researcher will rely on academic journals and reviews to get the needed data. The literature review has provided ample evidence that many studies have been done on the topic. The essay will combine these studies and come up with conclusions from the experiments that have been done on the same. The sources that have been chosen are not only peer-reviewed but have been identified as the best resource for the needed data due to their quality and context. It should be noted that the researcher has no affiliation with any of the sources that will be used. This reduces the level of bias that might have been recorded. A case storyline will also be presented by the assignment.

Case Storyline

Samsung: How It Started

In 1938, Lee Byung-Chul registered Samsung as a trading company dealing with textiles, retail, insurance, and food processing. Interestingly, people believe that Samsung began as a cell manufacturer when it did not. The company moved into cell manufacturing in 1960 and grew this business line to become its main source of income. In the mid-1970s, the company ventured into construction and shipping industries which further enhanced their cell phone business line as they were now able to ship their products on their own.

The new business line (shipping) helped the company save on costs and allowed Samsung to sell its products in different parts of the world. After the founder’s demise, the company management divided it into four main groups namely Samsung, Hansol, Shinsegae, and the CJ Groups. Indeed, it can be suggested that the company’s success should be pinned on a strong brand name. Therefore, one can argue that the brand name has ensured loyalty to an extent that clients prefer the brand regardless of the product being bought.

Diversification

The company has employed different strategies in an attempt to completely penetrate different markets. One such strategy is diversification which entails the use of a new customized brand to penetrate a given market of interest. To ensure that the company still maintained its reputation, it has used diversification, especially in Saudi Arabia, by customizing products it already has in the market. The company currently has over 200 subsidiaries in the stated market. The company has partnered with several other companies all over the world to ensure diversification even further. Each of these partnerships has allowed Samsung to become a household name.

It is important to note that diversification has ensured the company is well-known to people of different economic backgrounds. This is because it has both affordable and highly-priced products. These products are found within the same market but target different groups of people. Indeed, there are times when the products slightly different but the difference in pricing is due to the status they are associated with at a given time. It is important to point out that the company has also used other marketing strategies in the region but this was the most common.

Samsung has used all the stated diversification strategies in different markets. In Saudi Arabia, the company relied mainly on the first type of diversification. As mentioned previously, the vertical diversification approach introduces a new product in the market that is closely related to the company’s main business line. For example, Samsung revealed the Galaxy M10 and M20 in the Saudi market first. This product can be bought online from anywhere in the world but is currently only retailed in Saudi Arabia. As mentioned previously, the company is well known for its electronic products. The Samsung Galaxy has been in the market for over five years now.

Each year, the company releases a different and arguably better version of the Galaxy brand and chooses target countries where the new product will retail. There are various reasons why the company chose Saudi Arabia to retail the M10 and M20 brands. Even though Saudi Arabia is not considered a developed country in economic terms, it is a high-income country. Therefore, the target group can afford high-end phones. The M10 and M20 retail at approximately USD 130 and USD 180 respectively. One can argue that these phones are still relatively affordable compared to other brands such as Apple. Whereas this is true, the prices are slightly higher compared to other similar products by the company.

Future Projections

Arguably, there are a lot of things that Samsung has in store for the future. The company has focused on biopharmaceuticals since the mid-1990s and there are indications that it will invest more in this business line. The Samsung Medical Center has invested heavily in both facilities and educational centers. The facilities have been referred to as China’s number one health centers offering viable services for both in and outpatients.

The center has also invested in medical research and has given out money for the same. It is arguable that this venture still uses the diversification approach as it offers a different product completely. It is not clear whether the company is looking to manufacture medicine but the management has been keen on innovative health solutions. It is interesting to note that the company has combined its biopharmaceutical business line with its cell phone one. Currently, a majority of Samsung smartphones have Samsung Health, an application that can record heartbeat rate, pressure and monitor fitness activities.

Findings and Implications

Findings

Several findings can be realized from the case story. The first is that whereas Samsung is not changing its main business lines, it is looking to diversify its portfolio further. One can point out that the cell phone industry is crowded with competitors. The additional fact that more people are investing in locally made mobile phones threatens the company’s market share. This is especially the case in the regions where the company has made a name for itself such as Africa and the Middle East. It is crucial to point out that the company has put measures in place to continue securing its place in the market despite the challenges. Despite this, there is a need to diversify further by bringing in new products under the same trusted brand.

It has also been realized that diversification has to be strategically implemented for it to be successful. Samsung has managed to do this by tying its products and business lines together with one aspect or the other (apart from the brand name). For example, as mentioned earlier, the company has incorporated Samsung Health into some of its common mobile phones. This ensures that the clients have knowledge of the health business line the company also engages in.

Indeed, Samsung Medical Center is only in China yet phones that are shipped to Africa also have the Samsung Health application. The main reason for this is the fact that the company intends to grow its biopharmaceutical and health business line as well. Thus, they are ensuring that their brand is recognized also as a health brand for easier market penetration at the right time.

Implications

There are several implications of the findings that were realized. The first is that the cell phone industry has to keep innovating to remain relevant. Samsung has added more features to their phones to ensure relevance. The fact that their medical center is also rated highly makes its health mobile app more practical. Additionally, the changing cell phone industry will prompt current competitors in the field to invest in other business lines. The fact that more people prefer to support local brands within their countries as a way of ensuring authenticity continues to pose a challenge to cell phone manufacturers. Therefore, diversity is important for the survival of all companies in the industry.

Conclusions

In conclusion, marketing is crucial when trying to enter new markets. This is also the case for companies that have had long-lasting brands such as Samsung. The company is currently the largest cell phone brand in Saudi Arabia and it has employed various marketing strategies to secure its position. As per the requirements of the assignment, only one of these strategies was discussed. The chosen strategy was diversification which allows a company to introduce a customized brand into the market.

Research shows that the strategy has worked well in new markets as it enhances a feeling of a class. For instance, if Samsung were to develop a new version of the Galaxy specifically for Saudi Arabia, it might consider incorporating some of the popular culture needs among the Saudis. This would make the region feel special and boost sales of that particular product.

The essay was guided by the thesis statement that combined diversification was the best marketing strategy for Samsung’s penetration of the Saudi Arabian market. From the literature review and findings presented, one can argue that the thesis was proven true. Combined diversification refers to a mixture of the three types of diversification strategies that can be used. The company has to choose when to apply the said types of diversification, and when to combine them. Indeed, Samsung has used other strategies to help secure its market share. However, diversification stands out as it has also led to the diversification of the company’s portfolio. The research studies that were used to write the literature review also prove the same.

Discussion Questions

Analyze the cell phone business industry with a key interest in Samsung mobile

The cell phone business industry is very diverse. One can argue that it is an overcrowded field. Three of the major cell phone manufacturers are Apple, Samsung, and Huawei, although there are many other companies all over the world. Samsung is known to have penetrated the field more as it has focused on developing countries as well. The company has products that target both high-end and low and middle-income clients. It is important to point out that Samsung has taken cell phone innovation further in an attempt to maintain its profit margins. For instance, it has incorporated its other business lines into the cell phone line.

One of the business lines of the company is biopharmaceuticals and it has opened a Samsung Medical Center in China to this effect. To ensure that all its clients know about their interest in medicine and medical research, the management has incorporated Samsung Health in a majority of its products. The same has been done with its other electronics where the company ties the products to one another. This has also enhanced the brand.

How did Samsung manage to penetrate the Saudi Arabian market?

Diversification was key in the penetration of the Saudi Arabian market. This is the customization of a product to suit the specific needs of the target market. It is important to note that whereas the company has not made entirely new mobile phones for the Saudi market, it has introduced new versions of their main phones in the market. For example, the M10 and M20 were launched in Saudi Arabia and were retailing only in the stores in the country. Other users had to purchase the same product online.

Explain the different types of diversification techniques used in marketing?

There are three types of diversification technics namely vertical, concentric, and conglomerate. Vertical diversification allows a company to manufacture a product from one of its production stages. On the other hand, concentric allows the company to create a possible product using a futuristic approach by taking into account any technologies and new market trends. This product usually falls into one of the business lines of the company.

Lastly, conglomerate diversification introduces a completely new product into the market. This product is usually very different from any other that the company has created in the past. Indeed, one can argue that the last type of diversification is the riskiest regarding business. Therefore, companies have to ensure they do viable market research to manufacture a product that will give back their return on investment.

What type of diversification did Samsung use in Saudi Arabia?

Samsung used a combined approach to the diversification strategy. One of the advantages of the combined approach is the flexibility of the strategy. The combined approach allows for the company to not only rely on their clients’ needs (as they know them at the time) but also be able to provide new and exciting products.

What is the future projection of Samsung?

One can argue that the company has a stable future due to some of the investments it has already made. The cell phone industry is ever-changing and the fact that more people are invested in buying local products makes the environment that much harder for manufacturers. However, Samsung has invested heavily in other electrical products and health care. This provides the company with the needed stability of the future in case the cell phone industry collapses or becomes too overcrowded.

References

Bowen, P. H., Baker, K. H., & Powell, E. G. (2015). Globalization and diversification strategy: A managerial perspective. Scandinavian Journal of Management, 31(1), 25-39.

Crespo, J., Suire, R., & Vicente, J. (2016). Network structural properties for cluster long-run dynamics: Evidence from collaborative R&D networks in the European mobile phone industry. Industrial & Corporate Change, 25(2), 261-282.

Giachettia, C., & Marchi, G. (2017). Successive changes in leadership in the worldwide mobile phone industry: The role of windows of opportunity and firms’ competitive action. Research Policy, 46(2), 352-364.

Gnizy, I., Cadogan, J. W., Oliveira, J. S., & Nizam, A. (2017). National-regional diversification strategy and export performance: An extended abstract. In: P. Rossi (ed.) Marketing at the confluence between entertainment and analytics. Developments in marketing science: Proceedings of the academy of marketing science. (pp. 29-33). New York, NY: Springer.

Abstract

This paper discusses security risks and their influence on both the company that manufactures a potentially dangerous product and its clients. The recent issue with Samsung Galaxy Note 7 will be described. Some background information on the topic will be provided and followed by the damage caused by the recall. The way the company responds to the public and will be mentioned as well as its outcomes. Finally, possible alternative strategies will be considered.

Product and Security Risk

Samsung Galaxy Note 7 was released in September of the previous year and attracted the attention of numerous customers immediately. Among the main shortcomings of the product, professionals identified its high price (alternative devices could be more advantageous unless the S Pen is used), iris scanner (the users need to hold the phone close to their faces), and the hybrid slot (limited opportunity to exchange the storage). However, these limitations had never been considered critical. As it turned out, the main problem of this phone was its battery. It seemed to be an advantage of this product initially because it could be charged fast using a wired or wireless way (CSMArena team, 2016).

The security of the clients was affected as the phones spontaneously burst into flames. As soon as the first 35 cases of this accident were reported, the company decided to recall the product, including all those that had already been sold. As the professionals found out, the problem was in the lithium-ion battery. The liquid that surrounded it was flammable, which was normal. However, Samsung Galaxy Note 7 was rather thin so that the element that separated different sides of the battery was not enough to resist heat. When the liquid turned hot, it made the phone explode (Hollister, 2016).

Damage Caused by the Recall

When Samsung decided to recall its product, about 1 million phones were already sold. In addition to that, 1.5 million more items were manufactured (Hollister, 2016). All of them were considered to be dangerous to human health and were no longer allowed to be sold, which affected the company’s revenue significantly. It should also be mentioned that Samsung planned to manufacture about 19 million phones so that the total recall of Samsung Galaxy Note 7 could have reached more than $16 billion in lost revenue. Still, the missed sales led only to the $5 billion initially. Trying to save the situation, Samsung thought of an idea to resume global sales, but the production was completely ended eventually. Still, regardless of that situation, Lee (2016) stated that “for Samsung, with a market value of $235 billion and $69 billion in cash and equivalents at the end of June, the loss of sales of one model could be absorbed” (para. 13).

The issue with Samsung Galaxy Note 7 became critical because it caused damage to people’s health and property. All in all, professionals indicated “92 incidents in the US, plus at least 17 in Korea, 1 in Taiwan and 2 in Australia” (Hollister, 2016, para. 17). Even though these numbers do not seem to be statistically significant, they were indicated only during the first month on sale and prove that more people could have been at risk if there was no recall. Fortunately, the explosion of the battery did not lead to human deaths. However, some individuals got burns as they were holding the phone when it inflamed. For example, a man from the USA got a second-degree burn. His leg and thumb suffered, as he carried the phone in his pants pocket and then had to take it away (Kastrenakes, 2016). Similarly, the property of the owners was affected.

Even though Samsung Galaxy Note 7 explosions mainly had limited effects that affected its owners and their goods, this problem was claimed to cause environmental damage as well. Pham (2016) underlined that if Samsung decided to save money and dump its phones, it would harm nature. Inappropriate utilization of these devices would be as harmful as toxic waste because they are full of cobalt, tungsten, etc.

It cannot be denied that this issue led to the embarrassment of the company. Being known for high-quality products and having a lot of loyal clients, Samsung suddenly faced critics. Still, it admitted its responsibility and tried to respond to the problem so that people’s dissatisfaction can be overcome.

Company’s Response

To improve the situation, Samsung promised its clients to:

• The USA: offer a refund or another phone, give a gift card or credit, and obtain $100.
• The UK: change this phone for Samsung Galaxy S7 or S7 Edge. A refund can be obtained totally or just for the difference in price between the models.
• Australia: the same as in the UK.
• Singapore: provide a refund or any other phone (Dolcourt, 2016).

Trying to protect its customers, the company encouraged them to bring their phones back to the places where they bought them, but some devices were not returned so that it is not clear whether they were thrown away or continue working properly.

Outcomes of the Recall

As the phones started inflaming, the clients addressed Samsung and even referred to the court (Kastrenakes, 2016). The US Consumer Product Safety Commission supported them. Still, the company realized its responsibility and accepted it without any resistance.

The recall of Samsung Galaxy Note 7 reduced the company’s income and increased expenditures due to the necessity to get the product back, recycle it, and provide the customers with a refund. Billions of dollars were spent by the company to restore clients’ loyalty, but some of them decided to take a break with the brand.

Depending on the location, Samsung replaced Galaxy Note 7 with any other phone produced by the company or with particular items. The company was ready to offer an exchange or refund as long as it would take customers to bring them back (Dolcourt, 2016).

Personal Considerations

I would respond to this issue in the same way as the CEO of the company. I would emphasize that the lives of the clients are critical to me that is why I would encourage them to give the phones back. I would also offer a refund to satisfy those who are willing to take a break or another product for those who remain loyal. However, I would also try to maintain the same response strategy in different locations for the customers not to feel somehow discriminated or deprived. In addition to that, I would gather customers’ feedback regarding this situation so that they can see that I am highly interested in their considerations and want to use some of their ideas when developing the next product. Finally, I would emphasize what would be done to ensure future security (Griffor, 2016).

Conclusion

Thus, focusing on the case study of Samsung Galaxy Note 7, it can be seen that any product can have security and system risks that have an adverse influence on both customers and the organization. It is critical to respond to the problem efficiently so that the damages of the incident can be minimalized and the client’s loyalty promoted. Utilization of an appropriate approach in this situation can save the company from losing its competitiveness completely.

References

Dolcourt, J. (2016). Samsung Galaxy Note 7 recall: Here’s what’s next. Web.

CSMArena team. (2016). Samsung Galaxy Note 7 review. Web.

Griffor, E. (2016). Handbook of system safety and security. Amsterdam, Netherlands: Elsevier.

Hollister, S. (2016). Here’s why Samsung Note 7 phones are catching fire. Web.

Kastrenakes, J. (2016). Samsung is being sued over a Note 7 that allegedly burned a man. Web.

Lee, S. (2016). Note 7 fiasco could burn a $17 billion hole in Samsung accounts. Web.

Pham, S. (2016). The next victim of Samsung’s Note 7 fiasco could be the environment. Web.

Introduction

In the digital era, marketing campaigns have to grab the attention of potential customers within the shortest amount of time possible. Marketing messages have to be kept short, concise, and attractive to viewers, as this form of information exchange must show value and establish a relationship with the audience (Belch & Belch, 2021). Samsung is one of the largest tech companies across the globe, yet it operates in a market that is challenging to survive in, making it crucial to influence people’s purchase intentions with high precision. The selected video ad for Samsung Galaxy Z Flip4 demonstrates the vital qualities of an efficient commercial.

Discussion

Due to market specifics, Samsung utilizes an intelligent approach to segmentation, targeting, and positioning. The firm’s advertisement of its latest smartphone model depicts this strategy perfectly since it includes its desired audience directly and shows their shared interests (Samsung, 2022). The targeting strategy of this advertisement appears to stem from the correlation of the brand’s image with the intended users’ personal interests and life goals. This differentiated marketing method gives the firm the ability to reach a wide population with only minor restrictions that are already applied to its products, such as one’s knowledge of technologies.

First of all, the company targets both male and female consumers and does not prioritize either educational or ethnic backgrounds in its ad. The ad shows a group of young adults and their use of this model’s unique features in a particular social context (Samsung, 2022). However, Samsung does not rely strictly on demographics and geographic positions as the basis for segmentation. This ad focuses on one’s lifestyle, which is a psychographic profile, and one’s tendency to take photos, which is a behavioral aspect (Belch & Belch, 2021). The target segments for this ad include people who follow trends and may not have used Samsung’s products before. Camera perspectives play a vital part in this commercial, as they highlight the phone’s unique capabilities that are highly sought after by the target audience. The demonstration of social activities and popular types of phone camera use gives a clear idea of this phone’s capabilities to end users (Samsung, 2022). Such a strategy enables Samsung to depict the value and the meaning of its product.

Considering the marketing efforts described above, Samsung’s positioning appears to be in line with other modern tech companies, as the firm incorporates a usage-based approach as its primary focus in the ad. Samsung incorporates the smartphone’s advantages via smart visual cues, such as its ability to bend and take selfies with ease. Samsung’s new phone’s characteristics come off as innovative and give an incentive for a specific group of users to purchase it (Belch & Belch, 2021). Samsung does highlight the primary features of its new Galaxy Z, such as camera position and its easy-to-use interface. The smartphone industry is one of the most challenging markets for capturing new audiences, which often have specific product preferences and exhibit brand loyalty traits. Therefore, positioning by competitors plays a vital role in Samsung’s advertisements, as it creates product images similar to Apple’s iPhone (Belch & Belch, 2021). Samsung’s approach ensures that people comprehend both the quality and the significance of its innovation.

Conclusion

In conclusion, this advertisement made by Samsung focuses on young adults who enjoy engaging in social activities and have an active lifestyle. The commercial uses the differentiated marketing method and targets a broad audience, yet it includes imagery specific for attracting a particular type of user. Samsung performs both competitor- and usage-based positioning, as well as incorporates product attributes into its ad. This commercial is made with young, socially active adults in mind, as it highlights their common interests and activities that can be enhanced via Samsung’s products. The firm is highly proficient in creating efficient advertisements that are on par with Apple and similar brands in terms of quality.

References

Belch, G. E., & Belch, M. A. (2021). Advertising and promotion: An integrated marketing communications perspective (12^th ed.). McGraw-Hill.

Samsung. (2022). Galaxy Z Flip4: Launch film | Samsung [Video]. YouTube. Web.

Executive summary

Samsung Corporation (Samsung) is an international designer, manufacturer, and marketer for electronic products such as computers, TV/Audio/Video, camera, home appliances, and printing/press. The company’s headquarters are located in Seoul, South Korea. However, it has a strong presence in various parts of the world. In the Middle East, the company operates a regional office in the city of Dubai, UAE. The office is responsible for marketing, supplying, and marketing research in the region. It uses both direct and indirect market entry strategies such as company stores and joint ventures, respectively. This paper identifies the company’s current mission, vision, objectives, and strategies for marketing in the UAE. It also identifies the problems facing the company in its UAE market. To deal with these problems, the paper formulates a new marketing strategy and develops a method of evaluation.

Section 1: Primary Policies, Objectives, and Strategies

Samsung’s main aim is to increase its market share in the UNITED Arab emirates. Therefore, the company has outlined a number of objectives, policies, and strategies to achieve this dream. Noteworthy, the United Arab Emirates is a fast-developing nation, with major cities and towns growing at a fast rate. In addition, the population is diverse, with a large population of foreigners in cities like Abu Dhabi and Dubai. It is also worth noting that the country does not host any of Samsung’s manufacturing organs, which means that the presence of the company in the country is purely based on marketing. Therefore, the company’s strategies, objectives, and policies in the UAE are meant to improve its presence in the market by increasing its market share every year.

Mission

Samsung hopes to inspire the world and create the future for the global community through the provision of customized, digital, and user-friendly products in the local markets. It aims at making the products available to every person at reasonable prices in all parts of the region. In line with the company’s global vision, the mission is to emphasize new technology, innovative products and create solutions to the problems facing communities.

Strategic marketing objectives

The marketing objectives outlined in the company in its UAE outlets are similar to the set of objectives developed for its presence in the Middle East and North Africa. In general, Samsung aims at improving its sale of all brands from the current 40% to more than 75% in the next five years. In addition, the company aims at creating a market driven strategy and a valuable design for the customers in UAE.

Marketing policies

To achieve these objectives, the company aims at increasing the number of outlets and partnerships with local and regional retailers through joint ventures. The company strives to increase the number of products of all types in order to develop a unique market niche in the UAE. In particular, the company has increased the number of Smartphone, plasma television and other customized and modernized products in order to fit the target market.

Secondly, Samsung Electronics recognizes its responsibilities as a foreign corporation working in the UAE. As such, it strives to address the local and global challenges posed by environmental changes. It supports the regional and global cuts of the greenhouse gas emissions. Moreover, the company strives to ensure that at least 30% of its employees in the UAE are recruited from the local communities in order to abide with the market ethics and corporate social responsibility policies. This policy will ensure that the company’s products are appreciated and embraced in the local market.

Marketing strategies

The company uses a regional marketing strategy that applies to its presence in UAE as well as other countries in the Middle East, India and Pakistan. First, the product strategy used in the UAE is based on the product to be marketed. In this case, the company markets four major categories of products- Mobile Phones, TV/Audio/Video, camera/cam recorder, Home appliances, PC/Peripherals, and printing products. The company ensures that its products are made available in its outlets in major cities in The UAE. In addition, it has embarked on opening smaller retail outlets in other town in all parts of the UAE.

Secondly, Product is an important aspect in marketing. Samsung entered the UAE market in 2007. After three years in the Gulf market, the company launched a number of products, especially Smartphone technologies. To improve its presence and market share, the company has been supplying the local market with Smartphone gadgets enhanced with Windows mobile, android operating system and Bada, a customized operating system developed by Samsung Inc. This strategy will help the company compete with dominant players in the gulf market, including Apple and Research in Motion.

Samsung embarks on providing the market with digital technology in most of its products. The digital technology is in high demand in the country, especially in the communication, entertainment, broadcasting and education sectors. The company aims at becoming the major and model provider and supplier of these products in the UAE.

Thirdly, Samsung emphasizes on a strong pricing strategy. As one of the classic ‘Four P’s’ marketing strategy, pricing is an important aspect of marketing in the UAE as well as the Middle East. In this case, Samsung has recognized the degree of price sensitivity in the country. As such, it aims at sustaining a relatively low pricing strategy compared to its competitors in the UAE market. Customers in the UAE are relatively sensitive to product prices, especially in mobile, TV and digital technology. There is a tendency of comparing product prices before a customer makes decision. Therefore, Samsung strives to maintain reasonable prices in the market.

Fourthly, Samsung has a strong promotion strategy that seeks to create awareness of its product in the local market. For instance, it has embarked on aggressive advertisement and promotion campaigns, especially outdoor and broadcasted messages. The outdoor advertising is aggressive, which involves erecting massive and numerous billboards along major highways, streets and on top of some of the most important buildings. For example, the company has entered into an agreement with a number of major hotels and tourist sites in Dubai and Abu Dhabi, which allows the company to erect large advertisements on their buildings. The aim is to ensure that every person visiting these sites or passing through the nearby streets and avenues notes the presence of the company in the city. In addition, the specific products, especially digital TV, camera and mobile phones, are advertised in these boards.

Management strategies

Samsung has a well-developed and relatively centralized management structure. From its headquarters in Seoul, South Korea, the company has diversified its operations to all the continents in the world. It has a strong presence in Asia, Europe, Americas, Australia and Africa. Currently, the company has a marketing management body that comprises of regional managers, their assistants and other personnel. In the United Arab Emirates, the company has its headquarters located in Dubai. A marketing manager oversees the operation of the company in the country. In addition, it has a telecommunication manager responsible for marketing telecommunication products in the Middle East.

In addition, there are local management bodies responsible for marketing the company’s products in its numerous retails spread all over the country. These personnel are answerable to the regional managers in the Dubai office.

Audit and accounting strategy

Samsung has both external and internal auditing bodies. In Dubai office, auditing is done to account for the company’s operations in the region. It seeks the services of PWC external auditors, a London-based corporation that provides auditing and analyzing services to various organizations throughout the world.

Research and Design strategies

Samsung has a strong R&D strategy that is embedded within the company’s global culture. The company is strongly based on research and design because the electronic and communication sectors are faced with dynamic changes due to the extensive research being carried out to develop superior products. In fact, companies are striving to outdo each other in mobile, digital, TV and computer sectors through research and development. While the company’s research and design is done mainly at its headquarters in South Korea, it is evident that these aspects influence its presence and market share in the UAE.

However, it is also worth noting that market research at the UAE market is significant. The company carries out extensive market research in the Gulf region in order to determine its position relative to other companies. In addition, the market research is important for determining the company’s weaknesses, strengths, threats and identification of new opportunities for expansion. The primary market research for the company in the UAE is done through analysis of its performance, the perceptions of customers and retailers as well as the media. In this way, the company determines its position in the competitive market.

Corporate social responsibility strategy

Samsung has a strong corporate social responsibility strategy that applies to its global market. First, it recognizes the need for a ‘green world’, which simply means reduction of the greenhouse gases released from its activities. For instance, the company is currently building a GHG inventory for controlling the rate of greenhouse gas emission in its activities. The inventory has scope 1 and scope 2 missions that include reduction of direct emission and electricity purchases. In addition, scope 3 inventory focuses on employees, transport, supply and product use. In this case, the company seeks to reduce the amount of greenhouse gases used in all the processes involved in making the product available to the consumers.

In addition, the company is involved in various CSR projects in the Middle East, including UAE. For instance, it is actively involved in supporting medical camps in various parts of the country, especially in the rural areas. The company is also involved in providing scholarships to university students in the Middle East, which aims at creating a strong social, technological and business community.

Appropriate tools used to analyze the company

This analysis develops an intensive analysis of the company’s objectives, missions, policies and marketing strategies. It aims at using the company’s annual reports, advertisement projects, newspaper and magazine reports, online reports and the market analysis literature available for Dubai, Abu Dhabi as well as the UAE in general. In developing an understanding of the company’s strategies, a careful review of its market share, marketing strategies and projects is developed. These materials provide evidence of the company’s presence in the market, its market share, performance and competitiveness in relation to the other companies providing similar products and services.

Problem identification

Despite the strong and effective strategies for marketing, the company’s presence in Dubai faces a number of problems. First, the company has not achieved its target market share of about 25% by 2014. Secondly, the competition in the market is stiff, making it difficult for the company to achieve its target. Thirdly, market dynamics affect the company’s presence in the UAE, especially in Smartphone technology that keeps changing due to extensive research and innovations by competitors. Moreover, it is worth noting that the market itself is highly dynamic due to the changing attitudes, preferences and tastes among the customers. To ensure that the company achieves its objectives and aims, it is important to develop a strong marketing strategy and implement it within the next few months.

The proposed strategy involved three major aspects- expansion of the existing outlets, routine research and analysis of customer’s perceptions and involvement of the opinions of the local communities and employees in decision-making procedures.

First, Samsung needs a major expansion in order to ensure that the company moves beyond Dubai and Abu Dhabi. The company’s competitiveness is affected by its presence. To ensure a smooth and inexpensive approach, the company will identify six partners in order to develop joint ventures. The major partners will be retailers with at least 10 outlets in various small towns in the UAE. The retailers will be involved in the real processes and tasks of marketing the product while Samsung’s offices in Dubai and Abu Dhabi will take the role of suppliers. In this way, the partners will ensure that they market the product in their stores, supermarkets and malls. In addition, it is the role of the partners to ensure that small retailers obtain the product from their stores. This strategy will ensure that Samsung reduces the costs of marketing, advertisement and transport. Since the partners will have already set marketing and advertisement procedures, it is clear that the volume of sale will increase significantly in the next fiscal year.

Secondly, a strategy for routine analysis and review of the company’s presence and performance will be done. This will take place every three months. The aim is to determine the progress of the first strategy. This task will include an in-depth analysis of the partner’s worth in terms of marketing. Partners will be required to provide quarterly reports of their work, including the volume of sales, market dynamics, review of their customer demands and other factors associated with the market. In this way, the company will develop an in-depth understanding of the worth of the joint ventures.

Thirdly, the information above will be used to make major decisions. Such decisions will be important in reviewing or enhancing the company’s market share. Employees, retailers and consumers will be asked to provide their opinions before decisions are made. In the UAE, it is evident that consumer perceptions are mostly communicated to the employees, especially salespeople because they have a personal contact with the customers.

Strategy implementation

Implementation of this strategy will take place in the next eight months. The first step is to call for partnership in joint ventures. The company will advertise in the local media, seeking to recruit the six best partners. The partner must be a company with not less than 10 stores in more than two towns or centers. Secondly, the company must have more than 100 employees in its sales departments. Thirdly, the partner must be registered company operating in the UAE and with an experience of not less than five years. In addition, the company must not be involved in selling or collaborating with Samsung’s competitors in the UAE or the region. Moreover, the company must have a strong marketing and advertising foundation.

The second step is to ensure that employees, retailers and consumers are involved in major decision-making. In order to develop better marketing methods, it is important to ensure that the opinion of these parties are obtained and analyzed. Employees have the best chance of obtaining the opinions and perceptions of the consumers. As such, they will be required to provide their opinions based on their experiences with their customers. This means that the local community of employees and consumers will be involved in the process of developing effective marketing strategies.

With an increasing use of the internet as the major communication platform, most people in UAE are members of at least one social network. Therefore, it is easy to communicate with consumers through these sites. Therefore, the strategy will also involved formation of a social networked community using the existing social sites such as Twitter, Facebook, Google and others. The company will established these sites and ensure that an active Public Relation office is developed in order to control these communities, take people’s opinions and respond to their queries.

Strategy evaluation

The proposed marketing strategy is expected to provide effective results within its three months of existence. To ensure that the model works as expected, it is important to carry out an in-depth strategy evaluation every six months.

First, the expansion of the existing outlets in the UAE is expected to be the most complicated but important strategy. After the joint ventures have been established, it will be the role of Samsung UAE to determine the progress of the partnership. The company will request monthly reports from line managers as well as managers at the partners in the six joint ventures. After every six months, the six different reports from every manager and company will be reviewed, analyzed and compared with others. The aim is to determine the sections with strengths and weaknesses and to develop measures for addressing the problems identified. In addition, the partners will be reviewed in order to determine aggressiveness of marketing in these ventures. A decision to continue, review, overhaul or discontinue with each venture will be made after one year.

Secondly, reports from employees and retailers will be reviewed and analyzed after every three months to determine the effectiveness of the company’s marketing strategies. In this case, the company will determine the perception of the employees and their attitudes towards Samsung products in the UAE. It is clear that employee perceptions and attitudes are different and highly variable. Nevertheless, each analysis is expected to lead to some conclusion. Evaluation of this strategy will be carried after three months of its implementation. The effectiveness of the new strategy will determine whether the existing marketing strategies need to be reviewed, enhanced, maintained or terminated altogether.

To The Board of Directors

Samsung Group is one of the leading companies in the global electronics industry. The company “produces powerful technologies, medicines, petrochemicals, home appliances, electronics, and digital media” (Tong-hyung, 2014, p. 2). Samsung Group is currently reshaping the world using its innovative and reliable consumer products. The company hires competent and talented individuals who have the potential to support its goals.

Samsung Group also supports different corporate social responsibilities (CSRs). The organization currently collaborates with different partners, stakeholders, and customers in order to produce innovative products. The organization’s vision is “to develop powerful processes and technologies that will empower more people in the globe” (Tong-hyung, 2014, p. 2).

Influence of Globalization on Samsung Group’s Organizational Development

Samsung has provided quality products to its consumers within the last seven decades. The company’s early products included “calculators, televisions, washing machines, and air conditioners” (Hill & Jones, 2012, p. 21). Samsung’s business was mainly concentrated in South Korea and Japan. The corporation “produced new products such as mobile phones” (Hill & Jones, 2012, p. 43).

The company marketed such products in South Korea. Samsung began to produce numerous technological products between 1995 and 2008. During the same period, the organization shifted away from its domestic market. It was the right time to market its ideas and products to many consumers across the globe. This new development forced Samsung to re-invent its business strategy. Several competitors such as Sony, Motorola, and Life’s Good (LG) dominated the global market.

The wave of globalization played a major role towards revolutionizing the corporation’s organizational structure. Lee Kun-Hee decided to form new departments and segments that would support the company’s growth strategy. Samsung began to market its diverse products to different consumers in every part of the world. New market patterns emerged because of globalization. Many countries and corporations began to engage in international trade activities. This development “reduced the level of global competition” (Hernaus, 2011, p. 8). The development was also relevant towards reducing the costs of production. Samsung was on the right path towards realizing its potentials.

Globalization has continued to support new international trade patterns. Such patterns have resulted in “expanded markets, cheap sources of labor, outsourcing practices, and availability of resources” (Hernaus, 2011, p. 10). Samsung continued to “produce numerous semi-conductors, LEDs, and resources for different companies” (Tong-hyung, 2014, p. 2). Many companies also outsourced their services from Samsung. This development resulted in a new organizational structure at the company.

The company’s exhaustion of the Asian and American markets resulted in new expansions. Samsung began to market its superior products to more consumers in Europe, Africa, and Latin America. Globalization has therefore “forced Samsung to redesign its organizational structure in order to address the changing needs of its global stakeholders” (Tong-hyung, 2014, p. 3). This strategy has made the company successful thus becoming a leading competitor in different industries.

Why Globalization is Necessary for Conducting Business Today

Globalization remains a powerful phenomenon that encourages companies to engage in global business activities. The agreeable fact is that more global consumers are becoming aware of different services availed by international corporations. This single fact explains why globalization remains necessary for conducting various business activities today. This “situation explains why the global market has flattened” (Geiersbach, 2010, p. 124). Many companies have realized their goals and potentials after expanding their operations to other regions.

Globalization makes it possible for corporations to become more competitive. According to Geiersbach (2010, p. 125), “a company that is afraid to participate in global trade activities will take longer before realizing its business goals”. Some evidences show clearly how globalization supports the economies of many corporations. For instance, the emergence of modern technologies has made communication much easier. The development has resulted in better business practices. The formation of the European Union (EU) has supported the economy of many nations across the continent. The Euro has currently become stable than ever before.

The wave of globalization has played “a positive role towards stabilizing different financial markets and business environments” (Hill & Jones, 2012, p. 47). The process has also lowered the impacts of financial and political situations. Most of the countries engaging in international business activities have recorded better economic gains. For example, China has recorded better economic statistics. The number of consumers in different parts of the world is increasing. Globalization makes companies more competitive. It also provides employment to many individuals across the globe (Hill & Jones, 2012). The case of Samsung Group explains how globalization has transformed the lives of many societies and people.

Globalization has also resulted in better infrastructures. Many companies invest in other countries thus providing different products at cheaper prices. This situation has empowered more citizens than ever before. The process has promoted the level of economic development. New markets are “emerging due to changes in legal processes, regulations, and property rights” (Hill & Jones, 2012, p. 96). The strategy “reduces risks because different markets can sustain an organization’s business” (Hill & Jones, 2012, p. 103). Samsung has diversified its products and services in order to address the diverse needs of different consumers.

This influence of globalization is undeniable. Every society must accept the influence of globalization because it results in new opportunities. Globalization also increases “a company’s brand equity” (Geiersbach, 2010, p. 124). The approach makes it possible for corporations to diversify their risks thereby achieving their potentials. Corporations should therefore expand their businesses globally in order to maximize their profits. This development will result in better organizational structures.

How the Influence of Globalization Affects Samsung Group’s Risk Assessment Strategy

International organizations encounter numerous threats and problems. Such “risks have the potential to affect performance and productivity” (Hill & Jones, 2012, p. 98). Local companies might record increased losses when the level of domestic competition is high. Risk assessment is a powerful practice towards dealing with potential challenges that might result in losses. Samsung Group has been managing every threat using powerful risk assessment strategies. The influences and benefits of globalization have been critical towards reducing the risks affecting Samsung’s business strategy (Geiersbach, 2010).

Samsung Group has “globalized” its operations and businesses in an attempt to emerge successful. Samsung exploits new markets after producing better products (Arokiasamy, 2012). For example, the company’s 3D televisions and smartphones have resulted in better gains. The company uses such products to dominate various developed markets in Asia, Europe, and America. Samsung also markets its superior appliances and mobile phones in the developing world. These two markets have been critical towards reducing every risk.

This Korean company has also been managing its risks using better strategies. The company’s regional departments monitor the risks and challenges affecting its goals (Arokiasamy, 2012). The company monitors every uncertainty in various regions. Samsung Group is currently strengthening its business strategy in new markets. Some of these new markets include Africa, Asia, and Europe. Many parts of the world do not have adequate electricity supply. The company plans to produce new products that will improve its competitiveness. For example, “the company is planning to produce solar panels for consumers in the developing world” (Tong-hyung, 2014, p. 3).

Samsung also strengthens its leadership in every major market. The company identifies new markets for its innovative products. The company analyzes its performance in different global regions before updating its risk management abilities (Hill & Jones, 2012). This strategy has made it possible for Samsung to deal with every market change. The organization is targeting new markets that can support its future goals. The corporation is planning “to harness new businesses such as medical devices, pharmaceuticals, and bio-technology products” (Tong-hyung, 2014, p. 4). It is agreeable that globalization empowers companies to deal with different risks. Samsung can “market its diverse products to many consumers despite the existence of financial uncertainties in certain regions” (Tong-hyung, 2014, p. 5).

Moving Samsung Group Forward in the Competitive Global Environment

Globalization has numerous influences on the performance and competitiveness of different corporations. The global environment has become more competitive than ever before. Many companies are emerging thus increasing the level of competition. Consumers are able to purchase “a wide range of services and products depending on their quality and availability” (Arokiasamy, 2012, p. 153). Samsung must consider these evidences availed by globalization in order to achieve its business goals. The influence of globalization will compel the multinational corporation to invest a lot in its research and development (R&D). The practice will result in superior products that can support the needs of different consumers.

Globalization has made it easier for countries to trade with one another without encountering numerous obstacles. Samsung Corporation can capitalize on this opportunity in order to market its products. Globalization has resulted in infrastructure improvements in many countries. This situation has the potential to support the company’s goals. Many economies have emerged. Such economies have the potential to support the company’s marketing strategies and goals (Geiersbach, 2010).

More professionals and young people are using new technological devices. This development has increased the demand for quality products. Samsung must fulfill this demand in order to emerge successful. Samsung Group should acquire “new technological skills in order to produce quality products for different global consumers” (Arokiasamy, 2012, p. 152). The multinational company must hire competent leaders and managers to monitor its operations in different regions. Such managers should be familiar with the organizational cultures embraced in every targeted region. This strategy will make it easier for Samsung Company to create new organizational structures that supports the expectations of its stakeholders.

This discussion explains why a proper organizational design structure will support Samsung’s goals. The best strategy will be the Team Structure (TM). Team Structure produces cross-functional teams that can achieve the company’s objectives. The structure will break down every functional barrier in the targeted departments (Geiersbach, 2010). The structure will also promote the level of coordination thus solving every organizational problem. The organizational design will support Samsung’s operations in every region across the globe. The structure will resolve managerial problems and reduce conflicts. The costs incurred by the management will decrease. TM has the potential to eliminate various hierarchies. A Teamwork Structure will eventually make Samsung a successful multinational corporation.

Reference List

Arokiasamy, A. (2012). The Influence of Globalization in Promoting Entrepreneurship in Malaysia. South East European Journal of Economics and Business, 7(2), 149-157.

Geiersbach, N. (2010). The Impact of International Business on the Global Economy. Business Intelligence Journal, 3(2), 119-129.

Hernaus, T. (2011). Business Trends and Tendencies in Organization Design and Work Design Practice: Identifying Cause-and-Effect Relationships. Working Papers Series, 11(3), 2-18.

Hill, C., & Jones, G. (2012). Strategic Management Theory: An Integrated Approach. Boston, MA: Cengage Learning.

Tong-hyung, K. (2014). Samsung to Beef Up Risk Management. Web.