Sample Business Studies Paper on Samsung Group’s Business Strategy

Business Strategy

Question One

Samsung Group is one of the world’s industry leaders in technology and consumer electronics. The key to Samsung’s success has been its aggressive and effective business strategy. The business strategy that Samsung uses is a limited growth strategy. The company relies on different types of limited growth strategies such as market penetration, market development, product development, and innovation of its products. In market penetration, the company distributes more innovative products in order to satisfy their potential customers’ needs, and attract new customers. Through product development, the company often launches new products to target their old customers and to attract new customers. In doing so, it increases the market shares. In market development, Samsung tends to target new customers in different areas it has not operated in before. Limited growth strategy is important for the Samsung, as it has enabled the company to use its vast resources to successfully implement its business plans, and helped the company to maintain its standing as the world’s leading technology companies.

Question Two

Competitive priority is defined as the dimensions that a firm’s or company’s production system must put in place to support the demands of its customers or the market it wishes to compete in. A firm’s competitive priority is identified is four categories, which is cost leadership, product quality, delivery reliability, and process flexibility. Focusing on cost leadership, the firm has to deliver its products or services at the lowest cost possible, to satisfy the internal and external customers’ demands in the supply chain (Jitpaiboon, 2014). The firm has to produce consistent and top-quality products by meeting its products’ design specifications consistently and produce outstanding services to the market. The firm also has to introduce its new services or products at a fast speed, and consistently make delivery of its products in time to market. Moreover, the process flexibility enables a firm to produce its products in varieties, and large volumes to satisfy the needs of the customers. Samsung uses the product quality competitive criteria to attract new customers, and maintain the old customers by consistently producing outstanding quality products to the global market.

Question Three

Productivity is a measure of the efficiency of a person, machine, or system in converting inputs into useful outputs. It basically includes labour, material, and capital productivities. Labour productivity measures the efficiency of the labour used in the transformation, and development of a product into a product of higher value. Moreover, material productivity is the measure of the efficiency of the input materials used to acquire more usual outputs. Capital productivity is the ratio of the output to the physical capital input. As such, improving physical capital certainly increases output. Samsung integrates capital productivity into its operations. Through this productivity, the company is able to improve its physical capital such as computers it majorly uses to write and implement a variety of languages and codes.

Question Four

Technology is described as the use of scientific knowledge to create tools. The three common types of technology that most businesses use in today’s global market are information, communication, and management technologies. Organizations rely on information technology to create, store, exchange, and process data. Moreover, the communication technology is used by organizations worldwide to create a platform that enables users to access and exchange various files, and provide feedback such as a social intranet (Reid & Sanders, 2016). Management technology embraces the customer interactions between the sales and marketing team of a given organization (Zhao, Tong, Wong & Zhu, 2005). The strategic role of technology in worldwide business is to enable the creation, storage, and exchange of data amongst various users. It also helps the business management teams to make efficient and better decisions related to their productivity and competitiveness. Samsung has integrated management technology into its operations in order to market its products to the old customers, and attract new customers.

 

References

Jitpaiboon, T. (2014). The study of competitive priorities and information technology selection: exploring buyer and supplier performance. Journal of International Technology and Information Management23(3), 6. Retrieved from https://scholarworks.lib.csusb.edu/cgi/viewcontent.cgi?referer=https://scholar.google.co.in/&httpsredir=1&article=1078&context=jitim

Reid, R. D., & Sanders, N. R. (2016). Supply Chain Management. In Operations Management: An Integrated Approach (6th ed., pp. 98-150). John Wiley & Sons.

Zhao, H., Tong, X., Wong, P. K., & Zhu, J. (2005). Types of technology sourcing and innovative capability: An exploratory study of Singapore manufacturing firms. The Journal of High Technology Management Research16(2), 209-224. Retrieved from https://www.sciencedirect.com/science/article/pii/S1047831005000246