BU530 W 2019 10thWEEK Final Paper with Company 1 & Co and Company 2 10
BU530 Company Case Studies for Final Research Paper
By
Your Name
BU530 Winter 2019
Globalization of Business
Southern States University
Dr. Kim, Rachel ( DBA & MBA)
March , 2019
Company 1 Brief Intro:
Founded in xxxx, xx
Company 2 Brief intro:
Company 2 is a US-based xxxx, its headquarter is located xxx
1. GLOBALIZATION OF COMPANY 1 & 2
· Company 1’ globalization of Markets reflects:
Currently, company 1xxx
· Company2’ globalization of Markets:
1.2 Drivers towards Globalization.
· Company 1’s Drivers towards globalization.
· Company 2’s Drivers towards globalization.
1.3 Describe the global business environment and its main elements such as culture
· Company 1:
· Company 2:
2. COMPANY ANALYSIS
2.1. Company Mission and Goals
· Company 1:
· Company 2:
2.2Core Competency and Value Creation
· Company 1:
· Company 2:
2.3Three Levels of Corporate Strategy
Company 1 (example answers)
· Corporate Level Strategy is Growth Strategy: according to WSJ, xxx
· Business Level Strategy is Differentiation Strategy: according to NY times, xxx.
· Department-Level Strategy is Functional Strategy.
Company 2
· Corporate Level is Strategy Growthstrategy.
· Business Level Strategy is Differentiation strategy.
· Department-Level Strategy is Functional strategy.
3. COMPETITOR ANALYSIS.
3. Competitor’s analysis
3.1. Number of competitors in each market (domestic and international)
· Company 1:
· Company 2:
3.2. Market share of each competitor
· Company 1:
· Company 2:
3.3. Whether each competitor’s product appeals to a small market segment or has mass appeal.
Company 1:
· Company 1:
· Company 2:
3.3. Whether each competitor focuses on high quality or low price.
· Company 1:
· Company 2:
3.5. Whether competitors tightly control channels of distribution.
· Company 1:
· Company 2:
List of References:
BU530 2019 4th week with Samsung Company 2
BU530 Samsung Company Case Studies
By
Raushan Ibrayeva
BU530 Winter 2019
Globalization of Business
Southern States University
Dr. Kim, Rachel ( DBA & MBA)
February, 2019
SAMSUNG
Samsung is the largest company in Korea. Samsung Electronics was founded in 2011 and is a large subsidiary. The Korean company receives about $ 150 billion a year and has 144 consolidated branches, including 28 recently merged at the end of 2014.
The company plans to develop innovative technologies and efficient processes that will open up new markets, make people's lives better, and Samsung will become the leader in the digital market. The company aimed at markets such as India, in order to reduce the cost of the product, reducing high technology.
The company was not going to standardize this product worldwide, at that moment there could.
BU530 W 2019 10thWEEK Final Paper with Company 1 & Co and Company .docx
1. BU530 W 2019 10thWEEK Final Paper with Company 1 & Co
and Company 2 10
BU530 Company Case Studies for Final Research Paper
By
Your Name
BU530 Winter 2019
Globalization of Business
Southern States University
Dr. Kim, Rachel ( DBA & MBA)
March , 2019
Company 1 Brief Intro:
2. Founded in xxxx, xx
Company 2 Brief intro:
Company 2 is a US-based xxxx, its headquarter is located xxx
1. GLOBALIZATION OF COMPANY 1 & 2
· Company 1’ globalization of Markets reflects:
Currently, company 1xxx
· Company2’ globalization of Markets:
1.2 Drivers towards Globalization.
· Company 1’s Drivers towards globalization.
· Company 2’s Drivers towards globalization.
3. 1.3 Describe the global business environment and its main
elements such as culture
· Company 1:
· Company 2:
2. COMPANY ANALYSIS
2.1. Company Mission and Goals
· Company 1:
· Company 2:
2.2Core Competency and Value Creation
· Company 1:
· Company 2:
2.3Three Levels of Corporate Strategy
Company 1 (example answers)
· Corporate Level Strategy is Growth Strategy: according to
WSJ, xxx
· Business Level Strategy is Differentiation Strategy: according
to NY times, xxx.
· Department-Level Strategy is Functional Strategy.
Company 2
· Corporate Level is Strategy Growthstrategy.
4. · Business Level Strategy is Differentiation strategy.
· Department-Level Strategy is Functional strategy.
3. COMPETITOR ANALYSIS.
3. Competitor’s analysis
3.1. Number of competitors in each market (domestic and
international)
· Company 1:
· Company 2:
3.2. Market share of each competitor
· Company 1:
· Company 2:
3.3. Whether each competitor’s product appeals to a small
market segment or has mass appeal.
Company 1:
· Company 1:
· Company 2:
3.3. Whether each competitor focuses on high quality or low
price.
· Company 1:
· Company 2:
3.5. Whether competitors tightly control channels of
5. distribution.
· Company 1:
· Company 2:
List of References:
BU530 2019 4th week with Samsung Company
2
BU530 Samsung Company Case Studies
By
Raushan Ibrayeva
BU530 Winter 2019
Globalization of Business
Southern States University
6. Dr. Kim, Rachel ( DBA & MBA)
February, 2019
SAMSUNG
Samsung is the largest company in Korea. Samsung
Electronics was founded in 2011 and is a large subsidiary. The
Korean company receives about $ 150 billion a year and has 144
consolidated branches, including 28 recently merged at the end
of 2014.
The company plans to develop innovative technologies and
efficient processes that will open up new markets, make
people's lives better, and Samsung will become the leader in the
digital market. The company aimed at markets such as India, in
order to reduce the cost of the product, reducing high
technology.
The company was not going to standardize this product
worldwide, at that moment there could not have been a better
strategy for this company.
1.Company Mission and Goals
Samsung's mission is to create your brand and become a
creative leader in new markets. Samsung to win the title of
creative leader in new markets believes that they need to change
the culture and strategy of the company.
The 2020 Samsung's Mission is “Inspiring the World, Creating
7. the Future.” With this vision, Samsung plans to inspire its
communities, taking advantage of its key strength, creative
solutions, innovative products and new technologies. This
vision includes partners, employees, and industry. Samsung
hopes to contribute to the world the best and great experience
for everyone. In addition, Samsung plans to reach an income of
400 billion dollars and enter the top five world leaders by 2020.
2. Core Competency and Value Creation
Core competencies: Samsung has four core competencies:
innovative culture, consumer value creation, technological
leadership, and creative people.
Competitive Advantage: Samsung products are design-
oriented, and product design must match market demand. In
addition, all Samsung products are of good quality, introducing
new and powerful technologies and new products for this. There
are also technical advantages in the semiconductor industry.
Samsung can articulate a competitive advantage in the following
terms: “reducing costs and creating advantages in terms of cost-
effectiveness in the production of a large number of IP
devices”. They think that Samsung’s competitive advantage lies
in its ability to innovate and in scale.
How Samsung creates value. Samsung is a very large and
complex company that has three main divisions, such as:
Consumer Electronics, Gain, and IT.
Despite its impeccable reputation and many of its own
innovations, Samsung combines market research and
unprecedented execution.
3. Value-Chain Analysis
For analyzing the value chain, Samsung takes as its basis an
analytical analysis that helps identify business operations that
can later create a competitive advantage and value for a huge
electronics company. In order to more effectively manage the
incoming logistics component of the business, Samsung has a
number of subsidiaries.
8. · Samsung operations
Samsung Electronics is a huge company with 38 production
bases in 17 countries of the world. The company produces 90%
of its products independently. Samsung operations are divided
into three main divisions:
Consumer Electronics (CE)
Device
Solution
s (DS)
IT and Mobile (IM)
· Samsung Outbound Logistics
Samsung has proven that it can release its products very
quickly. An important role in the timely delivery of Samsung
plays an important outbound logistics system with updates to
popular products for customers.
The bulk of the logistics operations Samsung Electronics
Logitec makes it easier to work abroad. She also conducts a
wide range of logistics operations, reviews insurance claims and
negotiates collection of payments on behalf of Samsung. It is
safe to say that one of the main sources of value creation for
Samsung Electronics is the effective integration of information
and communication technologies.
· Samsung Marketing and Sales
9. The main activities, such as marketing and sales, are aimed at
targeting the consumer segment to the competitive advantage of
the brand, associated with the expanded functions and
capabilities of the products and, of course, with high product
quality.
Meeting the needs and desires of customers at an effective level
is one of the main sources of value for Samsung in terms of
marketing and sales in business.
· Samsung Service
Samsung is doing everything possible to provide customers with
the highest standards and service. The company constantly
conducts customer satisfaction surveys in order to achieve and
maintain a high level of customer satisfaction.
4. Three Levels of Corporate Strategy
· Corporate-Level Strategies
Samsung Electronics has developed a global strategy. This can
be a rather low response rate and differentiation. These
attributes are accompanied by advantages but also problems.
Depending on local costs, the company is engaged in
production, research, and development. The company uses to
attract cheap labor to countries such as China and Vietnam.
Samsung in 2013 began construction of mobile phones in
10. Vietnam, Thailand and Nguyen. In our country there is
everything that is needed for a compromise between labor and
the necessary supply of energy for the European market. SE
uses tax savings and high competencies of local employees. The
California government made a tax rebate to attract SE when the
company opened its Silicon Valley center.
· Business-Level Strategies
The best leadership and cost strategy provides a high-quality
and valuable product at a cheap price compared to its
competitors. This method focuses much on improving the
quality of the product than on competitors, because when
considering the cheapest cost to get an advantage over
competitors, new knowledge and modern technologies become
much better than competitors.
Better supply: may be due to volume discounts and better
market power, raw materials are 37% cheaper than its
competitors.
Reduced depreciation: Samsung saved an average of 12% of
construction costs by scaling up its investments and co-location.
Price advantage
Compared with competitors Samsung managed to set a higher
selling price for the products.
· Department-Level Strategies
11. In the international market The Samsung Group is a leader in
big business. It includes more than 30 subsidiaries with various
activities. It acts as a supplier, manufacturer, engineering, and
also offers other various services.
But despite all this, Samsung also faces major international
challenges. To benefit from scale efficiency and to be local to
meet local needs, the SE must be global and standardized. In
addition, as the SE hired foreign employees, a cultural discord
arose. We dare to say that foreigners are responsible for local
internal management, and not for end-users.
5. Number of competitors in each market (domestic and
international)
Samsung has 21 competitors
Samsung is the leader among smartphones. Samsung has
released several beautiful phones using the Google Android
operating system, which subsequently conquered the whole
world. A huge part of the smartphones sold by Samsung. These
are such series as Samsung Note, Galaxy Edge and Samsung
Galaxy.
It is believed that Samsung’s largest competitor is Google.
Google does not produce as many smartphones and consumer
electronics as Samsung, but they compete in the technology
world to be considered the most innovative and progressive
12. company. This competition is more important. This company
will be most successful in their chosen markets, which are
usually considered the newest, even if these markets are
different.
6. Market share
For three years, the share of Samsung in the smartphone market
has increased markedly. None of its competitors have seen such
a significant increase over the past few years. To the extent
Samsung was able to maintain its leadership position in the
global market. In 2015, Samsung shipped more than 320 million
smartphones worldwide, which represents 21.6% of all
smartphone shipments worldwide.
7. Whether each competitor’s product appeals to a small market
segment or has mass appeal
Distribution channels and communications are analyzed by
commercial infrastructure. The prevalence of free market
principles is assessed by economic freedom. Market "openness"
is assessed by market susceptibility. The country assesses the
political, financial and economic risks for doing business in the
market. Currently, more important issues are: management and
labor, efficiency of local infrastructure and the cost of training
local managers.
8. Whether each competitor focuses on high quality or low price
Based on the triumph of the previous version, the new model
13. retains the same appearance and introduces more subtle
improvements.
Samsung focuses its efforts mainly on small and invisible
changes that lead to a better impression, but do not drastically
change.
After a big change in the design of Samsung, we know what a
premium phone is - these are good things like display, design
and bad things like software.
9. Whether competitors tightly control channels of distribution
Samsung is a large company in Korea that deals with almost all
areas of business, including heavy equipment, shipbuilding,
aviation, chemicals, electronics, food, finance, clothing, retail,
and more. They even have a medical unit at the Samsung
Medical Center Cancer Center, one of the largest in Asia.
Distribution channels
Distribution channels are divided into three different forms;
1. manufacturers sell directly to consumers
2. Products are sold to retailers and then to retailers to
consumers.
3. production for sale to wholesalers who sell to retailers who
subsequently sell to consumers.
Samsung may sell directly or indirectly to consumers. The
company sells its product wherever it wants. In addition, it has
the ability to expand and saturate the market with its products
anywhere in the world, except America, because the relations
14. between American telecommunications companies are strictly
demanding that Samsung create different versions of its phones.
Samsung also has a distribution network of existing enterprises.
This is a very important point, because, unlike other companies,
Samsung does not need a lot of resources to bring its products
to new markets. These distribution channels will subsequently
be available for further distribution to other Samsung products.
This means that if they want, it will be easier for them to sell
more products than just electronics.
10. Customer loyalty commanded by competitors
The analysis shows that, despite the fact that Samsung has
already its own audience, a shortage of products may lead to
some consumers looking for products elsewhere in the holiday
season.
If the Company fails to provide its inventory as the holiday
approaches, competitive companies can take advantage of this
opportunity: during a shortage of their favorite electronics
brand, 17 percent of consumers said they would look for an
alternative from other manufacturers.
11. Potential threat from substitute products
· Threat of new entrants:
Samsung is not afraid of the emergence of new members of such
brands. The company invests enough to attract talent and build
15. its brand through marketing. Regulatory pressure has increased,
and this has become a big barrier for new entrants. Any new
brand that is trying to enter the market may start a business on a
small scale, but to become a large and global brand such as
Samsung, it will need to invest a lot in such things as human
capital, marketing and operations. From this it can be concluded
that for new brands trying to enter the market, the barriers are
quite large.
· Threat of substitutes:
Samsung has several competitors such as Sony, LG and other
local and international brands that offer competing products and
services and with low switching costs. In this regard, for the
Company, the threat of replacement is moderately high. Factors
that prevent and mitigate the threat of substitutes are
technological innovation, a great brand image, customer
convenience and other such factors.
12. Potential entry of new competitors into the market
An important role in the development and change of competitive
dynamics of any industry was played by the possibility of new
participants. This threat is both influential and significant. It
changes the competitive environment and has a direct impact on
the profitability of an existing firm. If there is a high threat to
new entrants, this means that there are low barriers to entry and
there is a high probability that the profit potential of the
16. industry as a whole will decrease. This all happens because
more competitors will compete for the same amount of business.
Sales and market shares will be redistributed, and this may
affect the price and quality of products.
13. Competitors’ control of key production inputs (such as
labor, capital, and raw materials)
The resources that are used to produce products, goods, and
services are called production factors. These are the necessary
resources that a company needs to make a profit by producing
goods and services. Factors of production are divided into four
categories: land, labor, capital and entrepreneurship.
Production factors
Earth is a natural resource, the company uses it to produce
goods and services for profit. Resources are natural materials
that are included in the production of goods and services.
Labor is the amount of work that workers do for the production
process.
Capital is any tool, machine, or building that is used to produce
goods or services; it varies by industry.
Entrepreneurship combines all these factors of production for
profit.
17. References
Bartlett, C. and Ghoshal, S. (2000). Going global. 1st ed.
[Boston, MA: Harvard Business School], Doyle, C. (2014).
Samsung Electronics to get aggressive and acquire more global
18. firms
EETimes, (2014). Samsung Semi to expand Silicon Valley R&D
facility | EE Times. [online]
English.hani.co.kr, (2014). South Korea a veritable tax break
paradise for chaebol. [online]
Faculty.ist.psu.edu, (2014). Samsung Business Strategy -
Apple's Use of Litigation as a Business
Strategy and the Ripple Effects on the Mobile Marketplace.
[online] Available at: Faktor, S.
Financial Times, (2014). Crisis hits profits at Samsung
Electronics - FT.com. [online] Available at: Financial Times,
(2014). Samsung makes break from Android dependence -
FT.com. [online]
Ghemawat, P. (2001). Distance still matters. Harvard business
review, 79(8), pp.137--147.
Gil, Y., Bong, S. and Lee, J. (2003). Integration model of
technology internalization modes and
learning strategy: globally late starter Samsung's successful
practices in South Korea.
Technovation, 23(4), Grobart, S. (2013). How Samsung Became
the World's No. 1 Smartphone Maker. [online]
https://www.slideshare.net/SomakGhosh,
https://strategiccfo.com/threat-of-substitutes-one-of-porters-
five-forces/, https://www.cheshnotes.com/2017/10/samsung-
five-forces-analysis/,
19. Chand, S 2015, Types of Distribution: Intensive, Selective &
exclusive distribution, Smriti Chand D