Samsung Electronic
Executive Summary There are many ways specifically in innovation that Samsung is doing well. There is no doubt that they are one of the leaders in their industry. With so many products and product lines there many facets that Samsung is involved in maybe too many. There may need to be more focused. There is a large market that Samsung has but there is still more of the target group that can be reached. Green products have become more important to consumers however the approach to green technology Samsung is taking needs to be directed a different way.
The slowing of buying behavior in the U. S. and recession has made the need for entertainment important to everyone but included in this is the need to be financially savvy. This mindset is a gap that can be filled through marketing properly to the consumers sharing this mindset by purchasing Samsung electronics and staying home to save money essay writer in uk. Introduction Samsung has made many changes throughout the years to increase their market share and grow to be one of the top companies in electronics. There has been a growing focus on innovation and design.
Samsung has done this by studying target markets in depth. They do this by study groups, creating innovative design labs and sending designers around the world to study museums and architecture. With the target market’s needs and expectations changing more focuses on green technology and the spending habits of consumers has changed. Samsung started with designing and creating simple electronics and now are in a variety of products outside of computers and televisions. This is a problem Samsung is facing is too many focuses instead of how they started in specializing in a few specific products.
Samsung has done well in creating design centers across the world that can help study a specific localized target market but when you are designing for so many different target markets whose needs change based on region it can be very expensive. There are some generic products that can be made and sold worldwide but you are looking at a high expense for the company. Situation Analysis With the focus of Samsung products having the perfect feel and function, they are doing a great job of studying the needs and wants of the consumer.
The innovation awards that have been won throughout the years show their focus and employees is spot on to where they need to be and with sales every year increasing, the current plan they is successful. The company is already aware of some problems and most are specific to products they are creating. Solar panels they are struggling with over supply and price erosion. Electronic batteries where there is such a small demand. Medical devices and biotech drugs face the same issue of having a large chance of competitors to enter the market. All of these things are associated with green technology.
There problems are being created and could be avoided by focusing on making their current products more “green” instead of creating new products. Reducing their carbon footprint is one way they can look at still being involved in the growing green industry. The recession has affected all businesses especially in the United States. The consumers buying entertainment items have decreased but this fact can also be an opportunity to Samsung. There is a way to focus on the costs of going out versus buying a nice 3D television or HD television and staying at home.
With so many companies producing similar products the competition that Samsung faces can put a decline in market share within certain product categories. Samsung has the resources and ability to do what they want globally in every product category. The company seems to be willing to make changes and take risks despite the potential payoff or loss. With a large amount of revenue this will allow Samsung to test multiple options without it hurting their productivity and money flow. Alternatives
One alternative Samsung could do is limiting the locations of design centers. Currently the locations p the globe and for the president to be involved in every location would require traveling basically the entire time. To keep a more focused eye on productivity and keep the CEO connected and less reliant on managers and supervisors to relay information. Focus on making current product “green” from packaging to ways of transportation to export their products across the world. Some of the current products are not selling well and there is an oversupply.
By taking focus away from those products this will help save money or use the current money being put in these investments to better use. Recommendations I would recommend Samsung doing a full financial and cost analysis on each product line and see what the top selling products are and make a list of all the products and their ranks in selling. I would suggest doing this annually so they are able to compare from year to year. With this information Samsung will be able to eliminate products that are wasting money and continue to improve and invest in innovation for the products that are selling well.
Even taking away some the products that don’t sell well and focusing on the top sellers will help make Samsung be known for making specialized products. Instead of focusing on new green products limit the amount of new green innovation for now and focus on making the current products more “green”. In addition to narrowing focus on successful products there should be more meeting held to compare the target market research that happens at the many design centers across the world to verify similarities and differences within markets. This will help keep communication open and ideas flowing.
If there is a need to continue the green technology product line there needs to be a slowing of production and very detailed account of what is selling from season to geographic location. If there is demand that starts to build then an increase of production would be suggested. In the United States, Samsung is the number one television brand. Although the country is in a recession there is still a large market and amount of money being spent on entertainment. Samsung should start a marketing campaign to show the value in making a large purchase such as a television and watching movies at home.
There is no doubt that it is expensive to go to the movies. It is a reasonable idea that buying an HD television or even a 3D television can provide just as good if not better experience then going to the movies. Most of the older generations like to keep very standard electronics and do not need or desire electronics with all the bells and whistles that a younger generation would want. There is an opening to market to the baby boomer generation. These older generations have money and if their old televisions go out or they are want to keep in touch with family they will be looking for something that is simple and satisfies their needs.
Making a simpler design that could be geared to the older generation is a market within the electronics industry that should be looked at. In addition there is a brand loyalty that is there with this older generation. Brand loyalty when it comes to electronics is becoming rarer with many consumers going with products that number one meet their cost requirement. There are so many competitors that offer similar products. Getting the consumer to keep buying your brand will continue to be a main goal for every company.
