CENTRE OF ENVIRONMENTAL HEALTH & SAFETY

FACULTY OF HEALTH SCIENCES

BACHELOR IN ENVIRONMENTAL HEALTH AND SAFETY (HONS.)

ENT 600
TECHNOLOGY ENTREPRENEURSHIP

TITLE
A CASE STUDY REPORT : SAMSUNG COMPANY

GROUP MEMBERS:

STUDE GRO
NAME
NT ID UP
2020483 HS24
KHAIRUNNISAK BINTI NASIR
384 3 7C
YUSRINA AFIFA BINTI MUHAMAD 2020899 HS24
YUSOFF 132 3 7C
NIK NOOR KAMALIAH BINTI NIK HS24
2020878944
HASSAN 3 7C

LECTURER’S NAME
MADAM NUR ATIQAH ZAKIYYAH RAMLEE
 DATE OF SUBMISSION
6th NOVEMBER 2022

EXECUTIVE SUMMARY

This case study discovered Samsung Electronics Co., Ltd. company’s background, products and
services, marketing, operational strategy, financial achievements, SWOT analysis, identify its
problems and solutions. Samsung started in 1938 founded by Lee Byung Chul as a minor
business firm and was recognised by its electronic products in 1969. Other than smartphones, it
also produces televisions, smart watches, home and cooking appliances. Samsung also is well
known as the world’s largest manufacturer of mobile phones and smartphones. including highly
popular and successful Galaxy besides its American rival, Apple Inc. Therefore, in order to ensure
its relevance in the technology industry, SWOT analysis through four factors (strengths,
weaknesses, opportunities and threats) able to help company to understand the dynamics factors
of everything related to the situation that is being contemplated. Besides, the analysis will help the
organization in the company in their strategic planning process, and matching with their
capabilities and resources towards the competitive environment in which they carry out in their
operations. We have found out that Samsung 's problems are mainly due to intense competition,
gadgets’ issues as less organizational buyers as they depend on the Android operating system
(OS) and profit decreased as global economic instability. Solutions we identified for Samsung to
continuously put a lot of effort in the research and development (R&D) as they are potential in
developing a technology that can attract buyers such as the environmental friendly focus
innovations as well as the timely innovations needed in gaming; and cut-off some of their products
prices as some of it are too expensive. In short, Samsung is capable of producing significantly
different products from the others could serve as a platform for the company to continuously be a
global choice.
COMPANY INFORMATION

COMPANY BACKGROUND

Samsung is a manufacturing company for electronics, information technology and

mobile communications, and device solutions. It is a prominent South Korean manufacturer
specializing in electronics production (Abraham C. et al., 2020). The founder of Samsung, Lee
Byung Chul started and established the company as a small export company in 1938 originally
known as Samsung Sanhoe (Madani et al., 2014). Later then, the company expanded its
business by entering other industries such as information, healthcare and biotechnology,
environment energy, and convenience and comfort. The company then established in 1969 in
Suwon, South Korea and widely recognized for its electronic products (Kelly, 2011). The
company’s product portfolio includes televisions (TV), refrigerators, washing machines, air
conditioners, medical devices, printers, monitors, computers, network systems, and digital
cameras. Besides that, Samsung is well known for its vast production of LCD and LED panels,
mobile phones and smartphones, tablets, and related accessories. Moreover, Samsung has
continuously strived to be an innovative company that becomes more technology-oriented and
improved its technology infrastructure and acquisition as well as fulfills the need and customer
satisfaction. Samsung company provides solutions to retail, hospitality, healthcare institutions,
finance, education, transportation, and government sectors. The company has widened its
operations across the world including the Americas, Europe, Africa, the Middle East, and Asia-
Pacific. The company mission is to provide high quality of innovative technology and electronic
devices and services.

The corporate logo of Samsung Company

1. Samsung Electronics corporate logo that used since late

1969 until 1979.
2. Samsung logo that has been used from late 1980 until be
replaced in Year 1992.
3. The logo that been used in 1993 until now that still used by
 other Samsung companies than its electronics segment.

4. Samsung’s wordmark and current corporate logo.

ORGANIZATIONAL STRUCTURE

The organizational structure of Samsung is divided into 3 divisions consisting IT and

mobile communications, consumer electronics, and device solutions division. The company’s
organizational structure is divided into such divisions to systematically focus to achieve the
company vision and mission, in line with the company product portfolio and services the
company offers to the market as well. Moreover, the organization is separated as following the
characteristics of their products that have impacts on new product development, marketing
strategies, selling, and other aspects of the business as the company has around 200
subsidiaries globally.

Samsung has employed numerous strategies for its operation management in different
markets and industrial sectors. The company has a product-type divisional organizational
structure that applies product categories as the basis of the organizational structures. Product
type division is the main characteristic of Samsung's organizational structure where each
division is the group of resources and operations presenting the product category including
production, distribution, and sale of consumer electronics. Meanwhile, the corporate structure’s
emphasis on technological innovation and product development which help to achieve
Samsung’s corporate vision and mission statements. The following are the product-type
divisions in Samsung organizational structure:

i- Consumer Electronics (CE)

The visual display, digital appliances, printing solutions, health, and medical equipment.

ii- Device Solutions (DS)

The division which counters with memory and system LSI (large-scale integration) with the
focusing area, particularly on semiconductor design as well as encompasses in multimedia card
controllers, wireless LANs, and display drivers.

iii- IT and Mobile Communications (IM).

Samsung as the industry leader in an end-to-end product portfolio of 5G commercial services
development in mobile communications and networks.

Figure 1: Organizational structure integrated under Samsung company (Dudovskiy, 2017).

Apart from the 3 main divisions, Samsung organizational structure also integrates
corporate management office and Samsung Advanced Institute of Technology. Under the
corporate management, the department is responsible in administrative and overall group
management as it is the hub for Samsung Reseach and Development for new products and
services.

Other than that, the company corporate structure also following few characteristics in
organizing their organization by centralized corporate hierarchy and geographical groupings
besides the product-type divisions. In centralized corpotage hierarchy, the company structure
involved the hierarchy model, corporate headquarters as the most notable manifestation in the
hierarchy. Notably, to ensure the operation strategies are unified and effective command and
authority can be directed towards company operational strategies from the headquarters.
Meanwhile, geographical groupings in its corporate structure as a minor characteristic for the
company to implement region specific strategies such as strategies intended for the North
American market for Device Solutions.

PRODUCTS / SERVICES

Products / Services Description

Mobile and Gadget Products

● Variety of types of smartphones produced including Samsung

Galaxy Z, Galaxy Z Flip, Galaxy S, Galaxy A, Galaxy M,
Galaxy F, and XCover series.
● Some other smartphone series of Samsung were dropped due
to their overlapping designs with multiple series with each
other.
● The smartphones also offer promotions for students, and
corporate employees, and installation services for smartphone
services.
● Also available accessories like a clear edge, slim and leather
Smartphones
cover.

● The devices are equipped with multiple advanced features

such as wireless types with 24bit Hi-Fi audio, the clear choice
for quality sound,360 audio sound, well-balanced sound, and
lightweight earbuds.
● Iconic and ergonomic design for a comfortable fit.

Audio Sound

● Samsung galaxy tab is a line of android-powered tablets with 3

categories currently, Galaxy Tab S and Tab A.
● Samsung Galaxy Tab S is a high-end tablet, focusing on
productivity and pen computing.
● Large display with revolutionary power.
● Galaxy Tab A is a line of mid-range to end-low tablets.
● Light and portable with a slim design.
● Available tablet accessories such as pouch, book cover, and
book cover keyboard
Tablets
 ● Easily connects to Samsung Galaxy devices and take notes on
different screens.
● Has Bluetooth connectivity and connects to another device
using Air Actions with ease.
● Easily charges via USB Type-C and fast 50-minute plug-in
charging with ability upwards of 16 days of battery life.
● Connection with SmartThings app that helps to detect lost
pens by bringing up location information of the pen and
Stylus Pen tracking it down.

● Smartwatch equipped with multiple advanced features such as

sleep tracking, bioactive sensor, durability, GPS route tracking,
daily activity, and fitness tracking.
● Galaxy Watch 5 and 5Pro are the latest features besides
Samsung Galaxy Watch4 and Galaxy Fit.
● The features on the watch are able to access and measure
body composition, sleeping duration, workout tracking, and
progress that help the consumer to track toward health goals.
● The durability with sapphire crystal front display, sleek,
seamless, and iconic design besides full capacity of battery
performance.
Smart Watches

● Compact, slim, and packed with special functions for booster

performance.
● Wirelessly connectable Samsung Smart Keyboard that
provides a comfortable typing experience for the clients.
● Available to assign custom Hot Keys to help customers
customize their own favorite content streaming apps or
frequent utility apps.

Smart Keyboard

● 15W of Fast Charging support.

● Compatible with USB PD and Adaptive Fast Charging travel
adapters for an easy pick-me-up.
● The charger pad has a built-in cooling system with a fan and
charges smartphones faster with less power consumption.
● Fast charger help keep the device safe from high temperatures
and humidity and overheating from charging.
● Automatic sensor for detection of any foreign objects
interfering during the charge.
Wireless Chargers ● Designed with slim, smooth, and compact design to fit smaller
spaces and be travel friendly.

Televisions and Audio Products

 ● Comprises of multiple choices with different features and
functions such as Neo QLED (Samsung flagship TV), QLED
(Samsung premium 4K TV), Crystal UHD, UHD, Smart TV,
The Frame, The Sherif, and The Sero.
● Available in multiple sizes from 55-inch, 65-inch, 75-inch, and
85-inch.
● The design is easy and convenient to use with HDR
specifications that give sharpness in both light and dark
scenes.
● Multiple types of resolution .

Televisions

● Presence in 5 types of lifestyle TV.

● The Frame types of Lifestyle TV (LTV), are designed to look
like a slim picture frame with a matte display with no reflection
on the TV, modern frame design, and customizable frame that
can match space.
● The art mode on the TV is able to transform the TV into an art
frame when not watching TV with an adjustable height stand.

Lifestyle Televisions

● Presence in 9 types of speaker.

● Most of them are wireless.
● Bi-directional sound
● Karaoke mood
● Highest power 1500 Watts
● Powerful bass

Sound Devices

Home Appliances

● Large capacity side by side with multiple door and bottom

mount freezers.
● 0% installment up to 24 months when purchase with credit
card.

Refrigerators
 ● Presence in 3 types
● Hot blast
● Ceramic enamel interior
● Full glass touch
● 1.2 Cu.ft capacity

Microwave Oven

● A carefree and hassle-free wash with advanced AI Wash

● multi-sensing technology for automatically optimized wash.
● The utilization of AI Ecobubble technology mixed with water,
air, and detergents to fight with stains and protect fabrics.
● Reduce energy usage by up to 70% and protect color and
texture of clothes up to 45.5 % better fabric care.

Washing Machines

● End-to-end cleaning with all-in-one clean station

● Light and powerful cordless vacuum
● Convenient and advanced cleaning performance
● Easy wat in emptying and charging the vacuum
● Usage of Air Pulse technology, by generating heartbeat-like
motion to shake off dust with pulsating air.

Cordless Vacuum

● OLED gaming monitor in an ultra-thin, 34-inch

● 175 hz refresh rate that give clear images and in fast action
scene
● Immerse viewing, smart function and productivity

Monitors
 ● Presence in 3 types
● 8 GB to 2 TB capacity

Memory Storage Card

BUSINESS, MARKETING, OPERATIONAL STRATEGY

Business Strategy

The business strategy of Samsung Electronics aims to improve profits besides marking
the high level of flexibility in a way for strategic changes according to external changes in
business environment. The business strategy utilized by Samsung consists of 3 pillars or
elements which are :

1. Effective market readership.

Market reader is the step of a company closely analyse the market and directly replicate
new products or new features in their existing products that primarily introduced by other
companies. As for Samsung, the company has proved its ability and effectiveness in
replicating design and special features of smartphones from its main rival, Apple. As
according to Heisler (2016), an internal Samsung 2010 presentation provided Samsung
engineers a step-by-step procedure to follow in an effort to duplicate a significant portion
of what made the iPhone such a remarkable device.

2. Scanning and utilize opportunities in market.

More than that, other strategy made by Samsung through constant search for gaps in
the business market and exploitation of any chances with least implications on the
bottom line for the business. To portray, Samsung has discovered that Asian consumers
in particular need a device that could be handwritten on since writing characters with a
pen is much simpler. Noted to that, Samsung has create devices that can meet the need
which then contribute to the creation of Samsung Note as the combination of phone or
tablet (phablet) that has proven to be unexpected success (Nisen, 2013).
 3. New product development.

As Samsung is the diverse production company, it has an extensive product ranging

from hundreds of product types and specifications and divided along three main product
divisions, IT and Mobile Communications (IM), Consumer Electronics (CE), and Device
Solutions (DS). Across the world, there are 36 R&D centres of mltinational electronics
company and manufacturers that secure the core technology for the future and thus,
about KRW 14.84 trillion investment on R&D have been made in 2015. Noticed on that,
Samsung has widen its business by becoming the 2nd largest patent holder in the US
since 2006 (Samsung Engineering, 2016). As the result, Samsung's ability to develop
new products has become one of the key pillars of its strategic advantage.

Marketing Strategy

Samsung's marketing programs and competitive strategy implementation have

subsequently led to its huge success. The marketing strategy adopted by Samsung through
continuous market research, establishing new features, addressing the client's concern, and
employing initiatives toward revenue. The company focuses on new innovative product
development with stronger branding and promotional campaigns. The company established a
unique position using technical innovation in their product designs that meet current trends
which help to increase their approach to the younger generation and upscale their customers
globally as well.

1. Research and Development.

As the company focusing on product innovation, Samsung has put much effort in
technical innovation and R&D product investment. To portray, in Year 2008-2009 in
which the world has fast forward to the economic crisis, Samsung spent over 7 billion
dollars approximately 6% of its unit revenue on research and development, while more
than 25% of the company’s workforce has engaged in R&D.

2. Product Development and Design.

Samsung also focused on product development and design as the advanced technology
may not necessarily correspond into their profitability. The objective aimed on producing
products that offer advantages that, to at least, some consumer groups will deem to be
worth the expense. For every new product development at Samsung, the involvement of
 the designer team who collaborate closely with the firm’s engineers, manufacturing
teams, and also marketers help the company to develop and improve the quality of its
products.

3. Brand Building Campaign.

On top of that, Samsung's marketing strategy is not merely focused on product

innovation and development, the company fixates on creating promotional campaigns for
product branding. Therefore, the company has hired an expert and experienced in
product marketing and software, Eric Kim to be the head of marketing strategy and
leader in their global marketing initiative. The brand-building campaign has been
instrumented by Eric in producing brand visibility widely for Samsung with its “DigitalAll-
Everyone’s Invited” campaign to help in upgrading its branding. The re-organizing of the
firm’s distribution.

Operational Strategy

Red ocean strategy has been employed by Samsung in their operational strategy in
which invloving teh observation of existing competitors, recognizing their weakness, and build
on the faults (Chandrakala & Devaru, 2013). According to Slck and Lewis (2008), operations
strategies is defined as the process used by organizations to manufacture and make timely
deliveries. Therefore, Samsung can effectively utilised this strategy as it develops most of the
components needed for the company in all the process of producing its smartphones and thus
help the company to achieve full benefits from the operations. Other than that, Samsung also
has utilised cost leadership as its strategy where they implemented a low-cost competitive
strategy aimed in reducing their cost of production. Through the strategy operation, Samsung
enable to use of vertical integration, which is used to control over the production chain of the
facility and result in reduction of possible outsourcing some processes to suppliers.

FINANCIAL ACHIEVEMENTS
Samsung Electronics Co., Ltd. incomes in these five years (2017-2021); shows
fluctuating profits where their revenue income from 2017 to 2018 has increased. However, in
2019, the revenue declined from 243.8 KRW trillion to 230.4 KRW trillion. Samsung’s revenue
rose again gradually in 2020 and remained inclined in 2021 where the value of the revenue is
279.6 KRW trillion. The revenue of Samsung in 2021 is the highest compared to the previous
four years. Moreover, the Samsung gross profit graph trend is corresponding with its revenue.
Nonetheless, although the trend of Samsung's net profit fluctuates like its revenue, the value of
the net profit in 2021 is less than its value in 2017 and 2018. This may be because of economic
factors and rising prices of materials from year to year (Samsung2, n.d.).

The current assets of Samsung’s company from 2017 to 2021 have grown continuously
from 147.0 KRW trillion to 218.2 KRW trillion. Although Samsung's current liabilities fluctuate by
year; their current liabilities value is assuredly very low compared to the value of their current
assets. Therefore, the company finances are in good and stable state. Their total shareholder
equity is positive in these five years as it has always expanded from 214.5 KRW trillion in 2017
to 304.9 KRW trillion in 2021 (Samsung2, n.d.).
COMPANY ANALYSIS

Strengths

1. Brand Reputation: Samsung Electronics Co. Ltd. is a well-known brand all over the
world. Samsung was ranked fourth in the world's most valuable technology brand in
2022, according to the renowned Forbes Magazine (Ponciano, 2022). It is also stated
that Samsung is in Top 10 most valuable brands (Anon6, 2022). Because of its strong
brand value, the business can more easily and quickly reach its target market.
2. Research and Development (R&D): Success in the technology sector depends on
innovation. Samsung has always prioritized R&D not only for the sake of the company's
growth, but also to provide quality products to its customers. As reported by ‌(IANS,
 2021), Samsung Electronics' research and development (R&D) spending reached a new
high in the first nine months of the year. According to its quarterly business report,
Samsung invested a total of 16.19 trillion won ($13.73 billion) in R&D in the January-
September period, up 289 billion won from a year earlier, to mark its highest spending
ever during the cited period. R&D spending is strongly related to revenue growth and
expansion into new product markets for a company. Because of its high R&D spending,
Samsung has developed the most patent portfolio among its key competitors. The more
patents a company has, the better positioned it is to defend its innovations from being
copied by competitors. Currently, Samsung's patent portfolio is one of the most robust in
the technology industry (Samsung1, 2022).
3. Variety of products: Although Samsung is best known as an electronics manufacturer,
it is noteworthy that it also produces and sells semiconductor components, LCD panels,
memory, and SIM chips to other manufacturers. As a result, the business can continue
to grow in various ways. Samsung also has great success with every product it makes,
including TVs, smartphones, and refrigerators.
4. Ecologically Friendly Innovations: Samsung has an environmental focus and has
been fulfilling its environmental responsibilities (Anon1, 2022). They provide energy-
efficient products while also ensuring that the chemicals used in the products are safe
for their users. Throughout the year, Samsung has improved its brand reputation through
environmentally friendly innovations. It was ranked eighth among the Top 30 Tech and
Telecom companies on the Environmental Protection Agency's (EPA) list of Green
Power Partners for 2022. It also received the prestigious ENERGY STAR Corporate
Commitment Award (Anon3, 2022). Samsung's product efficiency has avoided roughly
270 million metric tonnes of CO2 emissions worldwide since 2009. This achievement is
unique among organisations, increasing Samsung's attractiveness across all business
units.

Weaknesses

1. Dependence on the US market: Apple and Samsung are estimated to have sold at
least 74% of smartphones in the United States. Despite diversifying its products,
resources, and markets in Asia, Samsung remains heavily reliant on the American
market (Team Counterpoint, 2022). Roughly 70% of its smartphones are sold in the US.
 But because the American economy is so inconsistent and unpredictable, it has the
potential to harm Samsung's sales as well as its entire infrastructure (Parker, 2019).
2. Dependence on Google’s Android Operating System (OS): This dependence
provides little control over user experience. Samsung's inability to independently develop
its own OS and dependence on Google's Android OS for its smartphones and tablets.
Due to the lack of a proprietary OS, Samsung is vulnerable as smartphones become
commodities, making it more difficult for the company to differentiate its products from
competitors' offerings. Other disadvantages Samsung experiences due to their Android
OS dependence include limited ability to influence OS development, forcing Samsung to
rely on Google to create the Android ecosystem; and revenue from app sales has been
lost; however, if Samsung is successful in developing its Tizen OS, it has the potential to
generate significant revenue from app sales. Currently, only Apple, Google, and
Microsoft profit from app sales (Jurevicius, 2021).
3. Profit decline: As a result of the covid-19 pandemic, smartphone sales have been
declining since 2017, and the company's profit has declined since then (Samsung 2,
2022). This loss was also influenced by the lack of security in Samsung smartphones.
Many smartphones in the Samsung Galaxy Note 7 series experienced overheating
batteries, which resulted in an explosion. At the same time, it was reported that some
refrigerators and washing machines began to fire.
4. Costly: Samsung has always charged a high price to reflect the superior quality of its
goods. Apple, Huawei, and Xiaomi, some of its rivals, are competing with one another to
offer better products at lower prices. In order to contend with and survive in this intense
competition, Samsung should concentrate on striking a balance between quality and
finances.

Opportunities

1. Business diversification and acquisitions: Although Samsung has a wide range of

products to offer, there are a lot of new ones it could introduce now that so many people
are aware of its existence. Therefore, the company will benefit from this. Diversifying a
business can increase interest and investment in it. This will serve as advertising and
increase profits (Parker, 2020). Furthermore, Samsung must avoid the mistake of being
limited to a single market. It not only invites risks from an economic perspective but also
draws unwelcome political polarization and negative media attention. Because of this,
the economies of Asia and Europe have a business gap where Samsung can flourish.
 Additionally, it must increase the number of its clients. It can only be accomplished by
diversifying and acquiring other companies. Samsung is a well-known brand that can
generate substantial revenue due to its strong financial position.
2. Innovation: The research and development team at Samsung works diligently to
develop new concepts. Utilizing innovative products like the recently released "Foldable
phone," the company can take control of the market. Other than that, Samsung capable
to makes powerful processor for next-gen smartphone gaming like Samsung’s new
Exynos processor which is the next level mobile processors designed with multiple CPU
cores for exhilarating and breathtaking mobile phone gaming graphics and performance
(Anon5, 2022). In short, Samsung can easily outperform rival manufacturers if the trend
can be established and the quality can be raised.
3. 5G Technology: Samsung is well knows with the capability and expertise to take
advantage of this opportunity as the world transitions to 5G technology. To supply 5G
and 6G network equipment to operators in the EU, the company is already engaged in
active commercial negotiations. Samsung is ranked high on the UK's list of potential 5G
providers (‌Samsung U.S. Newsroom , 2021).

Threats

1. Increased Competition: The level of rivalry has risen to an all-time high, particularly
among those operating in the consumer electronics, smartphone, and computing
sectors. Although Apple is Samsung's main rival, newer Chinese brands like Xiaomi and
Huawei are making headway in the market (IDC, 2022). These new businesses are
producing and selling smartphones for a lot less money than Samsung, which could
cause some concern. Contrarily, Apple's marketing strategy aims to outperform
Samsung in the market even though it does not offer products at a lower cost. This only
puts more financial and competitive pressure on Samsung. Additionally, Android OS-
powered smartphones are moving toward commodity status, which might affect the
company's gross margins.
2. Dissatisfied Phone Users: The inability of users of Samsung Galaxy S devices to clear
their cache is causing a lot of buzzes online. One complaint claimed that all the data
remained after a user deleted their entire cache and then reset the cache setting. The
cache persists despite multiple deletion attempts (Balogun, 2022). One user responded
 that the issue only affects the Samsung internet app when the Samsung support desk
asked if it was the same on other social media apps like Instagram or YouTube (Anon2,
2022).
3. Legal issues: Samsung has been involved in disputes that have put its company at risk.
Samsung works in a sector of the economy that relies heavily on patents for competition.
Patents, particularly software and design patents, are frequently vague, and rivals
frequently violate them. Consequences are rarely favorable, and if they lose in court,
violating businesses may be required to pay royalties or damages. For instance, when
Samsung was sued by rival Apple for patent infringement, the case lasted for seven long
years before a settlement was reached. But when a jury found that Samsung had indeed
copied Apple and had to pay $1.049 billion in damages, the company suffered the
consequences (‌Duckett, 2018). The lawsuit hurt the business's sales and reputation.
Other than that, Samsung has said that the company does not provide a safe working
environment to its own workers. In 2018, it found more than 319 victims, 117 of whom
had died in June of that year. It is reported that the victims are mainly those workers who
are involved with the production lines that make chips and LCD displays. The workers
were diagnosed with leukemia and brain tumor. In order to apologize to the victims’
families, Samsung prepared compensation to get up to 150m won (£103,207) per illness
(‌BBC, 2018).
FINDINGS AND DISCUSSION

FINDINGS
Firstly, Samsung needs to fend off competitors in other industries as there are a lot of
rising companies such as Xiaomi Inc and others begin to take over the chart amidst of the crisis
Samsung is having. The founder and CEO of Xiaomi, a Chinese company, Lei Jun, stated last
year that his business aims to surpass Samsung as the top smartphone seller globally in three
years (Kim Jae Won, 2022). According to Counterpoint Research's Monthly Market Pulse
Service, Xiaomi overtook Samsung and Apple in June 2021 to take the top spot in the global
smartphone market for the first time ever. Xiaomi's sales increased 26% month on month in
June 2021, making it the month's fastest-growing brand. In terms of sales, Xiaomi ranked
second globally for the second quarter of 2021 and has, overall, sold almost 800 million
smartphones since its launch in 2011 (Mishra, 2021). Not to be overlooked, Apple and Samsung
are two of the biggest tech companies in the world according to WCS (2020). One of the biggest
rivalries in history has grown out of what began as a supplier-customer relationship in which
Samsung provided Apple with flash memory for its iPod. Both Apple and Samsung have each
filed a countersuit accusing the other of violating a patent. Furthermore, a strategy document
from Samsung that was leaked in 2014 showed that the company's top priority was to
outperform Apple. Despite Samsung’s success in the mobile phone market where it holds the
largest share with 31.38% of the market, Apple continues to lead in terms of revenue. These
rivals could give intense inferiority to Samsung in term of buyers’ preferences to buy gadgets.

Furthermore the open-source Android OS, which powers Samsung's smartphone, has a
poor reputation for security among users and compared to Apple Inc.'s and Blackberry's
operating systems, this one is more susceptible to viruses and hacking ‌(Kaspersky, 2022).
Samsung's CEO admitted that the operating system used by the company's Smartphone has a
number of security issues. This admission followed complaints from some organizational buyers
who used Samsung communication devices. These customers complained that their data was
easily compromised due to a weak security system. They also issued about how malware
interference every time they went online caused a delay in their work. This issue may cause
Samsung smartphone users to feel overly stressed and prompt them to look for better options.
 Lastly according to Moon (2022), Samsung reported a record consolidated revenue of
76.78 trillion Korean won (US$54 billion) for the third quarter of 2022, but profit was down from
the previous quarter and year on year. The operating profit of the tech giant (KRW 10.85 trillion
or US$7.6 billion) has dropped 23 percent from the second quarter and 31.4 percent from the
same period last year. Samsung's operating profit from July to September 2021 was KRW
15.82 trillion, a 26% increase over the previous quarter. The company stated in its earnings
report that its various divisions have been dealing with weak demand in the midst of global
economic instability. According to the company's earnings report, the Covid-19 pandemic has
caused instability in the affected countries as its various divisions have been struggling with
weak demand amid the instability of the world economy. This economic crisis has hindered
people from buying new appliances that is been sold at quite a high price. This situation will
caused great loss to the company if it does not be tackle as soon as possible.

DISCUSSION
The problems arises in the business of Samsung ranging from the specifications of the
gadget themselves to the increasing competitors. These problems may be induced by the
internal problems within the company such as the legal dispute and others. Therefore, several
measures must be taken in order to solve these problems.

Samsung can differentiate their products from those of their competitors in one of two
ways using their strengths in R&D to gain and maintain a competitive edge. For instance, by
assembling smartphones with parts that are more cutting-edge, superior, and modern than
those of their rivals. Other than that, Samsung can be more stand out by continuously producing
ecologically innovations products as community nowadays slowly becoming aware of the
importance of environment. This type of innovation does not only attract buyers but also help in
promoting a better environment to live in. The second strategy involves differentiating their
ecosystem and software. Software is responsible for delivering the user experience, which is
crucial to how the user perceives the phone. It is a benefit that is also challenging to rival.
Instead of relying solely on their hardware to differentiate themselves, vendors who develop
excellent mobile OS are much more successful. As we know Samsung already has its own OS
which is Tizen. However, its application does not apply to all their products. Hence, they must
work on improving the system so they can use their own operating system thoroughly. By using
their own OS, they are able to avoid any security issues that they had faced and which users
had complained about. As a result, they can attract organizational buyers in buying their
electronic gadgets. Nevertheless, when in the future Samsung starts using its own OS (Tizen)
completely, it may lose some customers who have been comfortable using the Android OS
because each OS must have its own advantages and disadvantages.

Apart from that, Samsung should re-evaluate the price they put on each of their new
products because their products are said to be more expensive than the new iPhone products
nowadays (Minkov, n.d.). Although Samsung products have their own loyal users; they should
be aware of how many users are eager to use the iPhone products. Hence, when consumers
find out that there is a new product of iPhone that is more affordable than Samsung, they might
switch to using iPhone rather than Samsung. Undoubtedly, by raising the price of their products,
Samsung will continue to be able to compete with the iPhone. In spite of that, Samsung may
lose customers if they constantly raise the price of their products. Nevertheless, the tech giant
expects its mobile business to perform even better in the fourth quarter as demand for
smartphones and wearables increases due to year-end seasonality. And since the smartphone
and wearable markets are expected to grow as a whole next year, Samsung's mobile business
might bringing in solid profits. Thus, Samsung must be consistent in producing a good quality
product at reasonable price to achieve the stability.
CONCLUSION

Samsung Electronics undoubtedly really invested in R&D. As a result, the business

should keep enhancing its R&D capabilities and creating ever-more cutting-edge hardware and
software products in order to be more appealing from the others. Short-term differentiation is
aided by developing innovative hardware products, but only software will enable Samsung to
develop and offer distinctive products to customers. Other than that, Samsung should continue
to concentrate on environmentally friendly products because they provide the best margins and
business opportunities right now. The markets for augmented and virtual reality also present
some excellent long-term growth opportunities. In conclusion, Samsung will continue to grow
steadily in the future due to the fact of the company's ability to develop and market high-quality,
innovative products that are in high demand around the globe.
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