Samsung Electronics

By John Dudovskiy
May 3, 2012

Samsung Electronics is based in Seoul, South Korea and operates in 65 countries worldwide with 157,000 people working for the company. Samsung Electronics products include semiconductors, hard drives, digital displays, home electronics, mobile phones, and others. All Samsung products have the same tone when the device is turned on, so that customers can easily get used to them and this tone is mentioned when Samsung products are being advertised as well.

The business strategy of Samsung Electronics presents an interesting case due to the fact that the company has an experience of pursuing both, cost leadership as well as product differentiation strategies during its lifetime. Specifically, Mitchell (2010) informs that business strategy of the company was mainly cost efficiency prior to Asian Financial Crisis of 1997, as a result of which the company came on the verge of bankruptcy, and the situation was changed with Eric Kim becoming chief marketing officer of the company, who brought dramatic changes to the strategy of the company pursuing product differentiation strategy.

“Smarter Life” theme was introduced recently in Samsung that is based on the innovative approach in improving the company’s current products, and introducing new products to the market. For instance, Android-based Samsung Galaxy Player 50 is to be introduced soon, containing a range of innovative features the product is expected to change the current media players’ market condition significantly.

As a part of the massive initiatives aimed at pursuing product differentiation strategy efficiently Samsung design staff has been tripled to 400 globally (Singhania, 2006), along with numerous other measures. Dramatic change in the strategy of the company has allowed Samsung Electronics to emerge as one of the main players in all of the markets the company operates in. For instance, Galaxy Tab produced by Samsung is currently considered to be the only substantial competition to iPad produced by the market leader Apple.

Samsung Group Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Samsung. Moreover, the report contains analyses of Samsung’s business strategy, leadership and organizational structure and its marketing strategy. The report also discusses the issues of corporate social responsibility.

Samsung Group Report


  • Mitchell, T, 2010, Samsung Electronics: And the Struggle for Leadership of the Electronics Industry, Wiley Publications
  • Singhania, P, 2006, Branding and its Competitive Advantage in Consumer Electronics Industry, Dissertation for M. A. Management Degree

Category: Strategy