Samsung Electronics is a South Korean-based multinational corporation focused on the production of electronics and technology. Samsung operates under the principled vision of ‘Inspire the World, Create the Future’. Based on McKeown & Durkin (2016), embraces the ‘know yourself’ principle. It has the ambition of being the leader in innovative technologies and solutions. It then evaluates its resources and possibilities and sets specific goals such as achieving sales goals and becoming a top 5 global brand in terms of value. Finally, Samsung recognizes its unique value proposition as being one of the best producers of electronics, because of its “operational excellence and innovation prowess” achieved through tremendous investment into research and development as well as quality improvements over decades on the market (Samsung, 2020).
Another major part of internal analysis that drives Samsung’s strategy is understanding its customers and competition. Despite the brand’s widespread recognition worldwide, Samsung earns just a fraction of its revenue from commercial product divisions. Its most profitable divisions are its core electronic components segments creating world class displays (ordered and used by many of its competitors) and chips which are in high-demand consistently (Lawler, 2021). Therefore, seeing this trend years ago, Samsung has reorganized to invest heavily into R&D and leverage its intellectual and technological resources in order to produce not only the high quality powerful electronics products that its customers enjoy, but also become a massive global supplier to other firms, charging a premium price. By doing so, it is able to attain its vision by changing the world through its technological production, but also achieving its financial and operational goals.
In the context of external analysis, based on the grid proposed by McKeown & Durkin (2016), Samsung is at the prime point, it is mainstream, in the mass market, and generally warmly perceived by customers. However, it is seeking to expand, to be at the very peak of being the hottest and most desired product available in its industry. While memory chips, displays, and mobile technologies are a major growth factor for Samsung, going forward into the next decade, it identified data and artificial intelligence as the primary engine of growth. Samsung will invest over $350 billion over the next 5 years into the strategic areas of artificial intelligence, semiconductors, and biotechnologies (Holt, 2022). It sees these areas of tremendous growth opportunities for both the company and the industry, once against operationalizing its vision of changing the world through technology and human innovation.
References
Holt, K. (2022). Samsung is investing $356 billion in chips, biotech and AI. Engadget. Web.
Lawler, R. (2021). Samsung earnings record fueled by chips, OLEDs, and foldables. The Verge Web.
McKeown, N. & Durkin, M. (2016) The seven principle of digital business strategy. Business expert express publisher.
Samsung. (2020). Vision 2020. Web.