Samsung as a company has many strategies that help it to grow economically and expand its operations. With its base in Japan, Samsung has been able to take advantage of the technology levels in Japan and has flourished in the electronics sector (Integrative case 1994). In comparison with other electronic companies, Samsung appears to be advanced technologically and financially. As an example, Goldstar Company has profits of $65.6 million while Samsung has profits of $154.6 million. This is not supposed to be the case as Goldstar started ten years earlier than Samsung.
One of the strategies seen to be used by Samsung for development is globalization. Samsung Corporation has made efforts to establish firms and companies all around the world (Integrative case 1994). Through this, they are able to maximize on profits and also gain new ideas and technologies from different countries in the world. With globalization, Samsung has been able to know the current trends in the electronics industry and hence design electronics that suit customer needs.
With the different markets having different preferences and tests of commodities, the experience has enabled Samsung to develop a variety of its products to fit customer needs in the different parts of the world (Integrative case 1994). Samsung also has strict business driven aspects for direct foreign investment. This enables it to engage properly in the markets and deal with the political instability and general challenges in the different markets (Integrative case 1994). Globalization has also helped Samsung as a company to know how to deal with different challenges in the market.
Dealing with challenges such challenges as competition, lack of markets and all other challenges becomes easy if one has a past experience in dealing with the situation. This is the advantage Samsung has over other electronic companies.
Samsung has also been keen as a company to make changes and corrections on their products. This has enabled their products to improve and gain market share (Integrative case 1994). As an example, the company’s products had high defect rates in 1980s. This scenario was corrected accordingly making Samsung one the most reliable customer to buy products from. All products from Samsung today are regarded as durable and genuine. This is because of the continued correction and improvement of their products (Integrative case 1994). Samsung also has a powerful leadership structure that allows a balance in centralization and decentralization of power. It has also employed cultural changes in its structure such that it does not follow a layered approach of management unlike most of the Japanese firms. This structure makes the management more powerful and makes them to have an added advantage in accessing resources and market share.
Samsung also uses refocussing and divestment as a strategy in fulfil all customer needs. As an example, Samsung ventured into mobile phone industry and has since then improved economically (Integrative case 1994). This shows its flexibility in venturing into new business markets provided profitability will be guaranteed. It is also a form of investment into other forms of business and market rather than the current stable ones. This guarantees it of receiving revenues from all aspects of the investments and does not depend on one investment for revenues and profits (Integrative case 1994).
In conclusion, it is evident that Samsung as a company has good strategies for management. In comparison to other companies based in Japan, it develops at a faster rate and is flexible to implement new technologies in the markets. The strategies employed by Samsung are good and need to be taken by other companies for better management (Integrative case 1994).