INTERNATIONAL STRATEGIC MANAGEMENT PROJECT

International Strategic Management Project

Table of Contents

Introduction3

Samsung's Current Strategy3

Differentiation Range of Products3

Global Efficiencies through Research and Development4

The Global Drivers5

Political5

Economic5

Socio-Cultural5

Technological5

Environmental6

Core Components of Global Strategy6

Diversified Business Portfolio across Multiple Product Categories6

Strategic Alliance7

Competitive Advantage8

Replicating the Competitive Advantage in the Global Markets9

Market Share and Positioning10

Financial Analysis12

Suitability of Samsung's Organizational Structure and Capabilities14

Organizational Structure14

Capabilities in Light of AAA Triangle Framework Developed by Pankaj Ghemawat's14

Adaptation15

Aggregation15

Arbitration15

Entry Mode Strategy16

Concision and Recommendations16

References18

International Strategic Management Project

Introduction

Samsung Electronics Co. Ltd is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies. Represented with over 124 offices in 56 countries, the company employs approximately 138,000 people. Samsung Electronics is divided into five business units: Digital Media Business, LCD Business, Semiconductor Business, Telecommunication Network Business and Digital Appliance Business. Samsung is recognized as one of the fastest growing global brands, and has taken a leadership role in the production of digital TVs, memory chips, mobile phones and TFT-LCDs.

Samsung's Current Strategy

Differentiation Range of Products

The current strategy of the company is based on differentiation through innovation and technology. Consequently, one can already see a first differentiation at Samsung: the GT 7.0 GT 7.7 is more made for mobile use. The WG 10.1 is made for home use, and 8.9 GT sits between the two.

Samsung has decided to create a plan for multi-product suitable for use of each. Thus you can find products last four generations in the Galaxy Tab: the GT 10.1, GT 8.9, GT 7.7, GT 7.0 and more. They are all capable of doing the same thing, they all have the same technical features (dual-core processor, 1 GB RAM,) or so. What differentiate them are mainly their screen sizes. The screen size determines its use: a bar of 7 to 8 inches will be a tablet mobile 9 to 10 inches. Samsung chose to make four products with different screen sizes 4, Asus decided to play the role of innovation by offering atypical tablets (Chris,2010,55-190).

Global Efficiencies through Research and Development

Samsung Electronics has been regularly strengthening its research and developments (R&D) function. The company devotes significant resources and attention to develop consumer-preferred products with innovative and distinctive features. It is evident from the fact that, the company invested approximately 5.9% of its revenue in R&D activities in FY2010. The company's R&D expenditure was KRW9, 099,352 million ($8,189.4 million) in FY2010, an increase of 23.2% over FY2009. Such focus on R&D activities helped the company to launch various new products in the recent past. For instance, in January 2011, the company launched the new SH100, a compact Wi-Fi enabled camera. Later in the same month, Samsung Electronics developed the industry's first DDR4 DRAM module, using 30 nanometer (nm) class process technologies (Chris,2010,55-190).

The Global Drivers

Political

All of the individual countries, the company has a policy environment that allows it to focus better on the market. (John,2008,44-87)

Economic

Samsung certainly the best strategies for the market economy operates on the basis of size and strength of consumers in terms of variables such as disposable ...