Global Business Ventures, Foreign Direct Investment, Expansion, and Growth Strategies. Samsung Marketing Strategy: The Master Brand. Market development’s strategic objective is to enter new markets using the company’s existing products, such as introducing new Galaxy tablets in Latin American markets after these products’ introduction in the United States. In Igor Ansoff’s matrix, the strategic objective of market penetration is to grow the technology business by increasing its revenues from the sale of current products in current markets, such as the European Union’s consumer electronics market, where the corporation already has operations. Samsung Mobile Marketing Strategy in India 3030 Words | 13 Pages. Copyright by Panmore Institute - All rights reserved. Samsung’s generic competitive strategy (Porter’s framework) and intensive strategies for growth (Ansoff Matrix) focus on utilizing technological innovation to support the company’s competitive advantage in the consumer electronics, semiconductors, and home appliances markets. Improving communities. So, instead of market development, it relies on the first two strategies to maintain its growth momentum and grow market share. To beat the competitive pressure, apart from its higher-priced Galaxy smartphones, the company has brought a large range of other smartphones that are priced affordably. Put in place a br… Market Orientation, Growth Strategy, and Firm Performance: The Moderating Effects of External Connections. You can have more productive experience on their mobile devices with Samsung Focus. Cost leadership is the strategy of leading on the basis of lower costs. This marketing approach and technological innovation sustain the corporation’s competitive advantages and value chain effectiveness in satisfying customers’ needs in consumer electronics, computing technology, and home appliances. Such companies include: TOMS, Frog Box, and Ten Tree Apparel. A meta-analysis. Economies of scope based on the conglomerate’s various subsidiaries support product development and competitive advantage by providing technological expertise and material inputs from the subsidiaries. A market reader can be defined as a company that closely observes the market and is fast in replicating new products and/or introducing … Apple which is one of the leading competitors of Samsung in the smartphone segment also employs this strategy very well and keeps making improvements to its iPhone model in order to grow sales and customer loyalty. Product development is the strategy of growing sales through the release of new products in the existing markets. Douglas, S. P., & Rhee, D. K. (1989). Samsung is a highly innovative brand that invests a large sum each year in research and development, The company has seen enormous growth in recent years primarily driven by higher smartphone sales. In the smartphone industry mainly due to the overcrowding of brands, achieving differentiation has become difficult. Channel sales strategy However, the most important thing is that the level of competition in the smartphone as well as the home appliances industry has grown too high. A. Samsung ensures that the features it incorporates within its products are different and unique, e.g. Samsung shows that its focus is not just the immediate customer who benefits from the purchase of its products. What have we learned about generic competitive strategy? We use cookies for website functionality and to combat advertising fraud. The advantage here is that there is less competition and, therefore, greater pricing flexibility. In several other product categories too including televisions, the company has achieved strong differentiation through technological innovation. Filatotchev, I., Su, Z., & Bruton, G. D. (2017). Samsung’s focus on product excellence and technological innovation has turned it into a globally famous brand of electronics. New evidence in the generic strategy and business performance debate: A research note. Unlike Apple, which relies exclusively on its range of premium iPhones, Samsung has brought a wider mix with products in varying price ranges and catering to the different needs and preferences of a wide segment of consumers. Samsung NEXT has a dedicated fund focused on investing specifically in early-stage AI startups. Develop an effective channel strategy for Samsung’s HME to support its aggressive future growth. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. So, Samsung’s strategy is a combination of both cost leadership and differentiation strategy. India. For example, effective innovation for cutting-edge technological design makes the corporation’s products more competitive when rolled out in target markets. They employ this strategy to enter new markets and then through sales and distribution as well as marketing grow their sales and customer base. The implementation of product development as an intensive growth strategy is based on Samsung’s differentiation generic competitive strategy, which requires product development for uniqueness that differentiates the business from the competition. However, Samsung does not rely entirely on this strategy but uses it only to a limited extent in its business model to grow sales. Innovation is one main source of competitive advantage for Samsung which is among the leading investors in research and development in the entire industry. It constantly focuses on innovation to achieve cost efficiency and create products that are efficient and yet competitively priced. The focus of Samsung’s supply chain management strategy is to ensure an all-encompassing competitive edge in terms of cost, delivery, quality, technology, and human resources in order to maximize synergy, speed, and efficiency with its suppliers and create a corporate ecosystem that enables sustainable growth. It is evident that the Samsung Company believes in planning and executing its sales strategy by predicting customer behavior, establishing strong customer loyalty, and providing them with a product that is their money’s worth. The brands that rely on this strategy invest large sums in research and development. As a global corporate citizen, we fulfill our social responsibility, deliver innovative products and services, and create economic, social, and environmental values. In. 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