Samsung is a world-renowned electronics producer currently venturing into several other technological fields for individuals, industries, and businesses. The organization has its roots in South Korea, but has grown to serve the largest consumer market worldwide. The Samsung Electronics Company was established in 1969 by Byung-Chull Lee. During its initial years, it produced dishwashers, refrigerators, and black and white TVs. Nevertheless, it only ventured into its domestic markets until the year 1977 when it started mass-producing and exporting colored televisions (Haizar et al., 2020). In 1980, the organization invested in a research and development center that allowed it to diversify its products and explore foreign markets. Even so, vast technological advancements and a rich market for electronic products have played a major role in its globalization.
The Samsung Group is currently the most advanced corporate conglomerate in Asia as it has risen above other leading companies like Sony, Panasonic, and Toshiba due to its effective globalization strategy. The organization first set up its foreign production subsidiary in Germany and Portugal in 1982. In 1884, it launched its products in the US and quickly won consumer appeal (Magasházi, 2021). Following these developments, Samsung started producing and selling its electronics in China, the rest of Europe, and South America. Today, the organization operates in 213 locations in 84 countries and employs about 320,000 professionals with more than 70% working outside Korea (Haizar et al., 2020). The organization exhibits continuous growth and is focused on product division and diversification, thus allowing it to serve a broader consumer base.
One of the main factors that spearhead Samsung’s globalization and its success in foreign markets is innovative practices that allow it to take advantage of cutting-edge technology. Samsung expanded its products in 1990 to deal in more digital technologies like audio systems, cameras, and other electronics. Nevertheless, the organization experienced its breakthrough when it started offering cell phones and smartphones in its galaxy series. Samsung’s smartphone sales constitute its largest revenue stream with its latest financial report revealing that it made $59.1 billion from smartphone and semi-conductor sales (Haizar et al., 2020). Nevertheless, the company’s adoption of the latest technologies such as AI in equipment such as home and office appliances separate allows it to have a competitive advantage over others.
Similarly, the rich and promising market for consumer electronics worldwide has played a major role in Samsung’s global expansion. Samsung maintains its business all year round by offering its consumers a range of products depending on their preferences. Moreover, their high-quality products have gained customer trust over the past decades, thus encouraging individuals to purchase various categories of Samsung products (Magasházi, 2021). Samsung’s consumer appeal has encouraged it to explore other markets, some of which are not associated with electronics. The company has heavily invested in cloud computing and cloud storage technologies that enable it to engage with consumers in financial sectors, machinery, shipping, information technology, education, and the chemical industry.
Since its establishment, Samsung has experienced exponential growth due to its ever-improving business prospects high-quality products, and considerable market share. The organization serves millions of people worldwide who highly value its products and the offers it occasionally features. Samsung’s production plants are found on all continents and its products are easily accessible. Moreover, the company has several other unique items to choose from apart from their smartphones and televisions. Thus, its innovation, diversification, and ability to take advantage of consumer loyalty have enabled it to maintain its position as a leading electronics producer.
References
Haizar, N. F. B. M., Kee, D. M. H., Chong, L. M., & Chong, J. H. (2020). The impact of innovation strategy on organizational success: A study of Samsung. Asia Pacific Journal of Management and Education (APJME), 3(2), 93-104. Web.
Magasházi, A. (2021). East–Asian lead firms’ impact on the electronics industry of the v4 countries: samsung and its competitors. Köz-gazdaság, 16(3), 177-197. Web.