How Global Trends Influence the Strategies Used by Samsung in the Communications Market
International Business Management (MGMT 425)
March 31, 2013
As global trends shape the business landscape, they will certainly influence competition among companies; and just as companies frequently fail to examine global trends in details, they can also fall short in their analysis of the competitive factors those trends create. Czinkota, Ronkainen,and Kotabe, (2010) carried out a survey that showed that “competition is becoming more intense: 85% of them [executives] describe the business environment of their companies as more competitive.” As such organizations to include the owners and staff have to continually make changes to supplement the ever changing demands of their target market as well as the total market. Samsung has felt the negative effects associated with changes in global trends and as such have developed strategies to compliment those changes in the communication market.
Overview of Samsung
In the present unpredictable business trade, marketing plays a fundamental and considerable role and it is a course of action or means to create, deliver, exchange and communicate with customers and clients which is now more pronounce because of globalization. Globalization according to Hamilton (2009) is not a new phenomenon. Nonetheless, within the last few decades, the improvements in technology, international trade and communication have rocketed. However, before we move on to discuss this great phenomenon, it is imperative that we define the terms globalization and marketing. Bilton, Bonnett, and Jones, et al. (1996) argued that globalization can be defined as “the process whereby political, social, economic and cultural relations increasingly take on a global scale, and which has profound consequences for individuals’ local experiences and everyday lives.” Hamilton (2009), in view of some of these profound consequences of globalization aptly states, “International trade through globalization can have many benefits. Trade helps increase economic wealth and establishes good political relationships with trading partners. Globalization also promotes free trade and competition between corporations which in turn gives consumers throughout the world more options and cheaper products from which to choose.” Therefore, the increase in trade, as well as technological communication and transportation advancements have allowed societies to become more connected. The term globalization signifies the combination of the marketing process with global business requirements. The globalization of marketing has made marketing processes more intricate, unwieldy and costly to deal with. Ferrell (2011) postulates that marketing may be defined as “an organizational function and a set of processes for creating, communicating, and delivering values to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.” Global sourcing and hostile global competition, pooled with growing customer demand, are drastically affecting the supply chain. To battle these new globalization challenges, many companies are moving away from a “push” supply chain model to a demand-driven, customer focus model. The desire to become demand-driven requires sophisticated, flexible responsiveness at every point along the supply chain, from sourcing and obtaining to use. One such company is Samsung; founded in 1938. From its foundation as a petite export company in Taegu, Korea, Samsung has developed into one of the world’s top electronics companies, specializing in digital appliances and media, semiconductors, memory, and system integration. For over three decades Samsung has defended developments in the business and played a fundamental part in the advancement of the mobile telecom sector. Their powerful past performance in invention...
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