SAMSUNG

Samsung

Samsung Case Study

PESTLE Factors

Samsung has become one the power brands of current times, and delivered what it promised after it changed its core business strategy (Winga & Waib, 2009). It used to be provider of cheap me too products, but due to the economic crisis it faced in 1990s, Samsung realized that a new strategy was needed. This move proved the best decision for Samsung till date. Now Samsung believes in customer delight by providing them innovative and creative products. Samsung invests large amount of its profits in research and development of their product and has an excellent reward system for their researcher and designers. Today Samsung's products are market leaders in their respective markets and are highly innovative. People buy these products because they feel proud of it, these are no more a utility but fashion statement (Turnbull et al, 2000, 143-163).

Recently Samsung became number one mobile company of the world, leaving Apple behind. These products have become a necessity for people, and are full of facilities & features. Not only in mobile, but other products of Samsung are also of high quality, like the Smart TV. Many factors have played huge role in Samsungs success story, which can be explained by PESTLE factors. Political scenario makes it quite easy for Samsung to capitalize on market situation, as different countries like China gives them opportunity to reduce their costs significantly by providing cheap labour and tax breaks. Economic factors such as economic growth and inflation have positively and negatively affected Samsung. While U.S markets and some other faced recession, other emerging markets like Asia made it easier for Samsung to post huge profits. Due to these economies growing purchasing power Samsung was able to increase its sales by providing them the product they desired. Social aspect has largely affected the sales to grow especially in mobile phone market as mobiles have become part of our lives. People have become more open to such products over the time.

The most important factor though has been the technology so far. The advancement in technology has made sure that more innovative and creative products are delivered to customers increasing brand loyalty for the brand. The latest technology Samsung has introduced is the flexible screen in mobile phones, which clearly shows how technology has changed the total business landscape in this industry. With ever changing technology, legal aspect has also come into the picture. Lawsuit claims by Apple have not proved good for Samsung though, as Apple has claimed that Samsung have copied its product design. Last but not the least; environmental factor has also impacted the business practices of conglomerates like Samsung. All of these factors have helped companies like Samsung to deliver better, specially the advancement in field of technology, as products are continuously improved with help of R&D(HANDELSHOYSKOLE, 2009).

Market Segmentation

Market segmentation is a strategy through which marketers divide wider group of target market in to smaller and specific groups having similar kinds of ...