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Report Example: Strategy Management in Samsung Company

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Harvey Mudd College
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Samsung has grown steadily in a competitive market of electronics and mobile phones to become one of the best in the market (Jung 2014). The blossom and the success can be associated with the strategic management that the company employs. Findings illustrate that Samsung uses a model called the generic value chain model for strategy management on human resources, technology, as well as cost control procedures (Jung 2014). The success is also attributed to a sound leadership, standardizing management systems, collaborations with other firms and its innovative strategies. In strategic management, Samsung adopted an open management of personnel, by respecting the autonomy and creativity of its employees (Samsung Group 2017). This has, in turn, propelled them to greater heights of creativity and improved performance. Samsungs success has also been boosted by its marketing and design of products, which are tailored to the dynamics of customer preferences (Stone, Kim & King 2017). Samsung also has quality-based management and hybrid management system as part of strategy management. The hybrid management system is the use of both the Asian and American styles of management, thus presenting more opportunities and creativity to the company.

Cooperative Strategy and Growth

A companys cooperative strategy is its attempt to realize its objectives by having cooperation with other organizations. It is staging alliances and partnerships with other businesses strategically to achieve its goals instead of being in competition with them (The New Economy 2014). Many global companies today engage in cooperative strategies, due to the benefits that come with it. A cooperative strategy helps a business acquire particular expertise, competencies or resources it was lacking. Samsungs cooperative strategy enabled it to diversify its operations from just a Smartphone company to an electronic powerhouse (Herh 2017). It now makes, other than mobile phones; televisions, digital cameras, LCD and LED panels, semiconductors, refrigerators, etc. Some of the partnerships included one with its chief competitor in the Smartphone market, Apple (Jung 2014). Samsung was a major supplier for iPod, providing its memory in 2005, while Apple is also a key customer for the Samsung. Samsung also partnered with Best Buy Co., Inc. to create the Samsung experience shop for viewing and testing Samsungs newest products (Jung 2014). The company has also invested heavily in Silicon Valley to indulge in software, as it has done with hardware.

Samsung PESTL Analysis


In most of the markets where Samsung operates, the political environments are always calm and conducive to investment (Kasi 2016). However, the political headwinds in its country of origin, South Korea have been detrimental to its operations to some extent in recent times. The political tension in South Korea is due to its relationship with North Korea.


The company has opened many markets in the developing markets in the Asian continent, meaning that it can expand its global reach. However, it is also risky due to the ongoing global economic crisis, which has dented its customers purchasing power in these emerging markets (Kasi 2016). However, investing in these developing markets taps a bigger market and can compensate for lack of competitiveness in the developed markets.


Samsung is a South Korean family-owned multinational company, implying that regardless of its global reach, its operations are local (Kasi 2016). Therefore, it has to adapt itself when venturing into a new market; it has to adopt itself into global strategy in various emerging markets. Apart from it operating locally, it has had to tailor its products to suit different markets of operation.


Samsung is one of the worlds technologically advanced companies, and it uses the latest technology to make world-class products for its customers. As such, there is a massive innovation in the business, which is one of its biggest assets.


Samsung has had legal issues with Apple Inc. for allegedly imitating its iPad and iPhone designs, which has a massive effect on the public perception of the companys creativity and authenticity.


There is a continued call for companies to be mindful of the environments from where they operate, and their products must be socially and environmentally friendly. Samsung has to be among these corporations which are environmentally conscious, more so due to its global presence.


List of References

Gammeltoft, P., Filatotchev, I. and Hobdari, B. 2012. Emerging multinational companies and strategic fit: A contingency framework and future research agenda. European Management Journal, 30(3), pp.175-188.

Hitt, M., Ireland, R. and Hoskisson, R., 2013, Strategic management. Australia: South-Western Cengage Learning.

Ji-young, K. 2010, Former Roh aide admits to receiving Samsung funds. The Korea Herald. [online] Available at: [Accessed 29 Dec. 2017].

Jung, S. 2014, The Analysis of Strategic Management of Samsung Electronics Company through the Generic Value Chain Model. [ebook] Seoul, pp.1-10. Available at: [Accessed 29 Dec. 2017].

Kasi, A. 2016, PESTEL-PESTLE Analysis of Samsung. [online] Available at: [Accessed 29 Dec. 2017].

McCarthy, E., Jr., W.D., & Cannone, J.P., 2011, Basic marketing a marketing strategy planning approach, 18th. New York, NY: McGraw-Hill/Irwin.

Herh, M. 2017, Despite 10% Sales Portion Samsung Electronics Local Tax Payment Covers 67% of Its Total Tax Paid Business Korea, Available at:

Hosain, M. 2015, Adoption of Proper HRM Practices: A Technique for Retaining Employees and Increasing Firm Performance?. SSRN Electronic Journal. Group 2017, Open Secrets, Available at:

Stone, B., Kim, S. & King, I. 2017, Summer of Samsung: A Corruption Scandal, a Political Firestormand a Record Profit Bloomberg, Available at:

The New Economy 2014, Available at:


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