According to a new study, electronic industry is a varied and aggressive business setting. Competing firms in this production continuously endeavor to surpass their opponents through innovative promotional approaches, often developing and reevaluating their techniques based on external and internal components affecting the business. For this reason, Samsung Asia is focused on envisioning and recognizing all customer expectations and needs. From its inception, Samsung Asia has been working tirelessly to excel in innovation work, in fact, it has been working towards maximizing opportunities that are close to its operational potential by utilizing the existing resources. And it has benefited a lot from this approach since it can develop products that speak to its intended audience and furthermore it imparts to its customers in a significant and convenient manner. Established in the 1930s, Samsung Asia is one of the business pioneers in a lot of commercial ventures. Each of its departments sticks to the same vision of transforming into the preferred supplier of services and products to their clients. A lot of strategic development techniques have been used by this organization to achieve these goals.
Many critics have lamented that the prosperity of Samsung is due to copying and modifying of the innovation of other companies. However, according to Sastry (2015) Samsung is one of the best companies in batteries, televisions, chip designs and screen technology. This clearly shows that it is doing well regarding its innovation strategy. To fully explain the strategic developments of this company, we will have this question. What trick does Samsung Asia apply to remain the world leader in the electronic industry? Well, this company has applied a lot of techniques in its quest of becoming the best innovative company, but some of the outstanding strategies include; introduction to a new management system, initiation of effective team working, unique design and marketing and great communication (Sastry, 2015).
Based on Sutton (2014) findings, since the launch of the new management system by the Chairman Lee Luu, the corporation has transformed from an average manufacturer to a world class producer dealing with strong quality brands and premium products. The new management under director Lee coordinated this revolution to see through that Samsung becomes one of the leading companies in the 21st century. This new management came with new strategies and some of the include eliminating biases based on academic background and gender within the company. It also introduced a new technique called value chain whereby it allowed all employees within the organization to carry out all the major activities of the company. This has helped Samsung transform to a world class business with quality brands. This management ensured that every employee is respected and recognized as well as their works and talents. Through this, the organization was able to improve its competitiveness and effectiveness, while at the same time promoting a system that realizes the potential of all employees and considers skills first. The company also ensured that it enhances the productivity of its employees by centering payment on the performance. According to a new study, centering payment on productivity enhances employees skills, knowledge, and capabilities (Sutton, 2014).
The team working at Samsung is tremendously high. The company has embraced a more profound technique which offers a lot of sophisticated monetary benefits. Based on Teece (2008) conclusions, cross-functional teams have been formed, which creates unique learning sets and allows for an easy approach to solving decision-making matters and also in the creation of new business ventures. To allow more effective team-working, Samsung has ensured that each group administers itself and most importantly it has motivated sharing of information among these groups. This is one of the most efficient approaches to improving the organizational productivity since it is a natural methodology that aims at enhancing progression in all departments of the company (Teece, 2008).
This company has also ensured that there is an extensive communication between the consumers and the company. Also, Samsung has communicated consumer demands and its strategy to its stakeholders and employees. There is a section in the company which is responsible for overseeing decisions and thoughts from the clients and then circulating them to every department in the company. The ideas collected are then evaluated by the supervisors who in turn increase knowledge, opinions, and perspectives. This technique has enabled Samsung to have a rapid change in business environment and also increased adaptability and speed in its operations. It is critical to note that Samsungs branding and marketing methodologies have taken a huge part in its success. This company has built up a solid customer-focus whereby it relates the requirements and the needs of its customers with their impending desires. Moreover, it has achieved wide recognition in Asia since it constantly produces ingenious services and products. In general, Samsung has implemented a lot of strategic developments to get to where they are today, but what stands out from these strategic developments is their design philosophy, which is one of the most productive and versatile designs in the world. Through this, they can make more smart and interesting products.
According to Wit (2007), nowadays Asia has become very trendy, and many firms in the region are facing many challenges due to this. Nearly everyone wants to invest and grow in Asia at the same time. Therefore the level of competition is rising tremendously, not only are the companies competing for clients but also for recruitment and retaining of the best employees. On the other hand, Samsung is not exempted, like other firms in the region, it is also facing a lot of challenges Samsung remains to be one of the biggest electronics and smartphone vendor in Asia. However, other companies are coming up, and the competition is intensifying. Manufacturers such as Lenovo and Chinas Huawei have introduced products with high-end features, and low prices and the customers are slowly turning to their products and moving away from Samsungs products. Samsung is likely to lose a bigger market share and also its revenues if this kind of trend continues (Wit, 2007).
Rising manufacturing costs is also another challenge faced by Samsung. During the production of the latest models such as Galaxy S5, there was an inclusion of totally new impressive hardware features and new sensors. However, it should be realized that these hardware components came with a cost. According to Lipman (2013), the S5 has a bill of hardware components valued at approximately $205, including the manufacturing expenses. It is estimated that huge prices at the top end of the market combined with the likeability of decreasing selling prices would certainly pressure the Samsungs gross margins. The prices of electronics particularly the smartphones is drastically going down, and all those emerging Asian smartphone manufacturers are making cheaper products. In fact, some companies such as OnePlus are settling on prices ($300) which are less than half the average high-end price tag ($750-$1050) favored by Samsung. This situation is making Samsungs phones look uncompetitive (Lipman, 2013).
In Asia there is a constant development in Electronics and IT industries, this means that, as time goes by new technologies are rapidly coming up and rendering the existing technologies obsolete. These conditions have made Samsung not have a guaranteed position in the market. Nowadays people are moving towards more connectivity, and the new developments attract many of them. Therefore the pace in the electronic industry is increasing. Samsung like many other electronic industries in Asia is attempting to survive in near and longer future by ensuring that there is a smooth transition to technologies that come into demand. The Asian consumer electronics industry is characterized by a winner-takes-all setting whereby big firms in the region tend to take a huge share of the profits and revenues. Therefore this company has to put more efforts in being consistent with its production and ensuring that it also gets a fair amount of the markets share.
According to Eberstadt (2016), innovation is no longer enough to drive success in the electronics industry. Although for a long time this industry has always been dominated by constant product innovations. Nowadays this trend is changing since consumers brand loyalty is eroding and many technologies and products have short lifecycles. Therefore, this means that even the best organization can lose the minds and hearts of its fickle clients in just few innovation cycles. Currently, Samsung is finding it hard to sustain the momentum it built in the past. This is because it is experiencing the intense pressure of softening the Asian demand for client electronics together with the short life cycles of its technology and products. The bottom line is Samsungs cheaper opponents are doing well, Xiaomi, for instance, is a smartphone manufacturer based in Asia and is looking better. OnePlus on the other hand, is keeping it simple. However, its design is still poor (Eberstadt, 2016).
Another fundamental obstacle facing Samsung is the increasing demand for capacity. It is evaluated that data intensive gadgets are increasing the requirements for wireless throughput, therefore putting a heavy strain on networks that do not have the capacity to cope with this increase in data traffic. For example, advanced mobile features are putting intense pressure on mobile operators like Samsung to re-access their phone architectures. At this point, the biggest challenge for most mobile operator companies including Samsung is getting the most cost-effective and flexible infrastructure for the future generation services.
A lot of Asian companies have shown from their progress that despite unique regional obstacles it is possible for these firms to achieve great success and prosperity (Salamzadeh, 2012). However, it is not an easy task. Firms face a lot of pressure, and they are required to be competitive not only on prices but also on the quality of the products they produce. For companies in Asia including Samsung to perform well, there must be appropriate infrastructures. The lack of infrastructures has adverse effects and poses real risks to all those companies which are attempting to achieve success. For example, one of the Samsungs project failed in Bangladesh due to small land. Governments have a responsibility in ensuring that these companies get a conducive business environment and also in making sure that these firms are interlinked with global value chains. These will see through that these companies have appropriate requirements to strengthened firm and employees abilities (Salamzadeh, 2012).
To solve the issue of production and manufacturing costs, Samsung needs to come up with appropriate strategies that enhance efficiency and human capital development. With the production of the company expected to increase, opportunities are opening up both from inside and outside of the Asian continent. Therefore this organization should ensure that it grabs the opportunity and in turn, it provides the solutions for increasing the efficiency and productivity of the company.
Samsung together with other manufacturers in the electronic industry has been experiencing changing prices of their products in the market. This is because new companies are emerging and they are offering very cheap products. To avoid such surprises in pricing, Samsung has to conduct research in the market and assess different prices offered by the rival companies and then come up with...
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