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Tiêu đề Samsung Electronics
Tác giả Đan Huy, Lê Phương Vy, Lâm Hải Yến, Dương Minh Thư, Lê Nguyễn Lan Quyên, Nguyễn Ngọc Phương Linh
Người hướng dẫn Nguyen Da Thu
Trường học Hoa Sen University
Chuyên ngành International Business Management
Thể loại Subject Report
Năm xuất bản 2021
Thành phố Ho Chi Minh City
Định dạng
Số trang 34
Dung lượng 762,11 KB

Cấu trúc

  • PLEDGE

  • ABSTRACT

  • TABLE OF CONTENTS

  • CATALOG IMAGES/CHARTS

  • ACKNOWLEDGEMENTS

  • 1. INTRODUCTION OF SAMSUNG ELECTRONICS

    • 1.1. Overview

    • 1.2 Vision and mission

    • 1.3 Logo and slogan

    • 1.4 Products

  • 2. FACTORS AFFECT SAMSUNG’S INTERNATIONAL BUSINESS

    • 2.1 PESTLE of Samsung

      • 2.1.1 Political

      • 2.1.2 Economic

      • 2.1.3 Social

      • 2.1.4 Technology

      • 2.1.5 Legal

      • 2.1.6 Environnment

    • 2.2 SWOT of Samsung

      • 2.2.1 Strengths

      • 2.2.2 Weaknnesses

      • 2.2.3 Opportunities

      • 2.2.4 Threats

  • 3. THE INTERNATIONAL STRATEGY OF SAMSUNG ELECTRONICS

    • 3.1 Samsung Electronics Company penetrates the Vietnamese market

      • 3.1.1 The reason Samsung Electronics entered the Vietnnamese market

      • From 1987 to 1995, Samsung Electronics saw significant transformations both domestically and internationally. The ascension of Lee Kun Hee in 1987 marked the start of this transformation. He has made numerous daring moves to reorganize all current businesses and begin on new enterprises since taking over as chairman of Samsung Corporation in lieu of his father. Lee Kun Hee had an aim to make Samsung Electronics one of the top five technological businesses in the world from the time he was Deputy General Director of Samsung Electronics until he took over the leadership of the Samsung Group. Commitment, change, and transformation have transformed the SEC from a "technical backwardness" enterprise to one that is steadily closing the technology gap with the world's largest technology businesses and moving boldly into the world. The global technology market is both difficult and appealing.

      • Vietnam chose in 1986 to transition from a subsidized economy to a socialist-oriented market economy. This is an important milestone of the Vietnamese Communist Party which has totally reshaped Vietnam's social and economic culture. Between 1986 and 1990, GDP grew almost double the pre-renovation average of 3.9 percent (1975-1986). It is a time of profound change in the process of socioeconomic revival and the release of workforce from the old management mechanism to the new mechanism. It was an era of robust and unprecedented economic expansion in fact from 1991 and 1995. The average rate of economic growth was 8.18%. The economy has steadily turned to manufacturing and services. Annual average increase in industry of 13.3%. Some sectors were growing highly: in 1995 the fuel sector (including petroleum and gas) was three times greater, power was 1,6 times higher, building materials 2,7 times higher, food production was 1,9 times higher. The service sector in 1995 increased by 80% compared to 1990 (an average annual increase of 12%). Transportation has progressed, freight transportation increased by 62%; telecommunications has developed rapidly, postal revenue and tourism revenue are both 10 times higher; The domestic commodity market develops, meeting the increasing demands of the society in terms of quantity, quality and types. The financial and monetary sectors have made remarkable progress, most notably, high inflation has been prevented and inflation has been gradually pushed back. The price index of consumer goods and services decreased from 67.4% in 1991 to 17.5% in 1992; 5.2% in 1993; 14.4% in 1994 and 12.7% in 1995. The scale of social development investment increased quite a bit. In 5 years, it is estimated that the total investment capital of the whole society is about 18 billion USD (according to the 1995 price level), of which the State's share accounts for 43% (including investment through the state budget, state credit and enterprises). State-owned investment), people's investment accounts for over 30%, foreign direct investment accounts for 27%. The rate of foreign direct investment attraction in the past 5 years has increased by an average of 50% annually; the capital to be implemented is about 1/3 of the total registered capital under the project. Foreign direct investment (FDI) increased rapidly, by the end of 1995, licensed projects reached over $19 billion in registered capital. The proportion of investment in industry accounts for 40% of the total capital under the project (if including oil and gas, it accounts for over 60%), of which more than 60% is in-depth investment. Investment area is widely distributed over territories. The main form of investment is a joint venture enterprise, accounting for over 65% of the total capital; enterprises with 100% foreign capital account for nearly 18%; business cooperation contracts account for nearly 17%. The State has supplemented and improved step by step the legal framework for foreign investment, creating an open investment environment with great potential. Since the early 1990s, Vietnam has actively and actively integrated into the international economy. Normalization of relations with the US (1991); accession to ASEAN (1995); signed the Vietnam - EU Framework Agreement (July 1995).

      • The growth of the service industry is also a clear demonstration of this. If before 1986 electricity was quite a luxury concept for most people, by the early 90s electricity was brought to each commune, village, and family. Because of that, the demand for electronic products is increasing day by day. Meanwhile, Vietnam only has factories producing light bulbs, electric fans, etc. such as: Thong Nhat Electromechanical Company, Rang Dong Lamp and Thermos Company..., products such as TVs, refrigerators... mostly are CBU imports from Japan are quite expensive, including both new and used goods.

      • According to the socio-economic research of Vietnam from 1986 to 1995 (before Samsung entered Vietnam), Samsung Electronics identified the potentials of the Vietnamese market and decided to pick the correct product. Select this country as the next stop on your worldwide business trip. Vietnam is experiencing significant economic development, and the rate of attracting foreign investment has expanded fast as a result of the economy's openness. The political climate is stable, and the government has implemented several measures to assist international investors in creating a vibrant, open, and sustainable investment climate. Along with that, in a market with a huge population, consumer electronics demand is expanding but supply remains constrained... These are some of the factors influencing Samsung Electronics' choice to join the market.

      • 3.1.2 Samsung Electronics Vietnam period 1996 – 2008

    • In Vietnam, Samsung Vina primarily establishes its distribution network via big retail enterprises and a network of recognized electronics retailers.

    • Samsung Vina has decided to collaborate with reputed significant organizations in Vietnam in the initial distribution channel, which is retail enterprises. Samsung Vina distributes mobile phones via certified distributors such as FPT Mobile, Viettel, and Phu Thai Group. With computers, Samsung also selects extremely dependable wholesalers, such as Tran Anh computer and Lam Phuong computer... Samsung's distributors are all well-known and experienced companies, which assures that the product is of high quality. Its goods will have a high degree of customer dependability, pushing the Samsung brand to a new level.

    • 3.2 Types of international strategy that Samsung has applied

    • Businesses may also choose to franchise their activities, which, like licensure agreements, outsource operations to a separate owner. Franchisees, on the other hand, are sometimes required to pay a one-time fee for the right to use the brand name and goods, as well as a royalty fee on sales or profits to the corporate business. This is particularly popular in the fast-food industry, with companies such as McDonald's and Domino's Pizza being examples. Samsung makes extensive use of joint ventures, wholly owned subsidiaries, and vertically integrated subsidiaries to manufacture products at a low cost via competitive advantages in areas where tariffs would be detrimental to profitability, to market and sell their goods effectively globally, with many of their product lines occupying the global #1 spot, and to market and sell their goods effectively globally.

    • 3.3 Some stories of Samsung’s business in Vietnam

      • 3.3.1 Samsung’s transnational strategy into Vietnam

      • 3.3.2 Vietnam – Samsung’s potential market and success story of Samsung Electronics

  • 4. EXPERIENCES AND LESSONS FROM SAMSUNG ELECTRONICS

  • REFERENCES

Nội dung

MINISTRY OF EDUCATION AND TRAINING HOA SEN UNIVERSITY ECONNOMICS & MANAGEMENT SUBJECT REPORT GROUP TOPIC: SAMSUNG ELECTRONICS Subject : International Business Management Instructor : Nguyen Da Thu Class : NT401DE01 (0100) Students group making : Đan Huy (ID: 2180079) Lê Phương Vy (ID: 2182832) Lâm Hải Yến (ID: 2183645) Dương Minh Thư (ID: 2183555) Lê Nguyễn Lan Quyên (ID: 2175347) Nguyễn Ngọc Phương Linh (ID: 2172813) June – 2021 Ho Chi Minh City MINISTRY OF EDUCATION AND TRAINING HOA SEN UNIVERSITY ECONOMICS & MANAGEMENT  SUBJECT REPORT GROUP TOPIC: SAMSUNG ELECTRONICS Subject : International Business Management Instructor :

INTRODUCTION OF SAMSUNG ELECTRONICS

O VERVIEW

Samsung Electronics Co., Ltd (SEC), founded on January 13, 1969, is a leading subsidiary of the Samsung Group, a major corporation in Korea With a workforce of approximately 500,000 employees, SEC operates as a multinational electronics company, serving customers in over 120 countries worldwide The company's headquarters is situated in Suwon, Gyeonggi Province Kwon Oh-hyun served as the CEO of Samsung Electronics in 2012.

2018 he resigned And since then, SEC appointed 3 CEOs: Ki Nam Kim, Hyung Suk Kim and Dong Jin Koh

 The process of Samsung Electronics’s formation and development.

1969-1987: The company was founded in 1969 as Samsung Electric Industries.

In the early days, the company produced electronic household appliances: televisions, refrigerators, computers, washing machines,… In 1981, more than

10 million televisions were being manufactured each year And in 1988,Samsung Electronics was officially born by the merger of Samsung ElectricIndustries and Semiconductor & Communications.

From 1988 to 1995, mobile devices made their debut in Korea, marking the start of intense competition for market share By February 1995, Samsung Electronics strengthened its position in the national market by acquiring a 40% stake in AST Research.

1995-2008: Some achievements during this time such as "World's first 64Mb

In 1992, the development of DRAM began with 64 Mb, followed by advancements to 256 Mb in 1994 and 1 Gb in 1996 By 2004, Samsung achieved a significant milestone by producing the world's first 8 Gb NAND memory chip and established a long-term partnership with Apple in 2005 As of October 2013, Samsung emerged as a key supplier for Apple, primarily providing the A7 processor used in the iPhone 5s.

From 2005 to the present, significant milestones have shaped the tech industry In 2005, Sony faced a setback against the SEC, while Samsung achieved a remarkable feat by ranking as the 20th largest consumer brand globally for the first time By 2007, Samsung surpassed Motorola to secure its position as the second largest mobile manufacturer in the world.

In 2020, Samsung Electronics Co., Ltd reported impressive financial results, with a revenue of $200.6 billion and an operating income of $30.5 billion The company's net income reached $22.4 billion, supported by total assets of $320.4 billion and total equity of $233.7 billion These stable and growing figures highlight Samsung's strong development in both domestic and international markets.

V ISION AND MISSION

Samsung's vision statement emphasizes its commitment to inspiring the world through innovative technologies, products, and design The company aims to enhance people's lives and promote social prosperity while striving to create a better future.

This company’s mission statement is “We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society.”

L OGO AND SLOGAN

Samsung's logo is quite simple but very easy to remember Over the years, the logos have also changed, but they still retain their character with a strong brand identity.

Samsung does not have a certain slogan Almost each of their product lines will have a suitable slogan For example:

P RODUCTS

Samsung Electronics is a renowned and established brand in the electronics industry, known for its innovative and practical products The company excels in manufacturing a wide range of electronic devices, including cutting-edge LCD and LED panels, mobile phones, and memory chips, catering to the needs of consumers in today's technological landscape.

Figure 3 - Dynamic AMOLED Infinity-O (punch hole for camera) Display screen

Figure 4 - Samsung Galaxy Note 10 smartphones

FACTORS AFFECT SAMSUNG’S INTERNATIONAL BUSINESS

PESTLE OF S AMSUNG

Political stability is essential for Samsung's success, as a supportive political environment fosters economic activities, even in competitive markets like India However, unstable political climates can lead to corporate losses and stagnation Recently, Samsung has faced political challenges in South Korea due to tensions with North Korea, which underscores the impact of geopolitical relations on business Despite these challenges, the positive trade relationship between South Korea and North Korea contributes to economic growth for both nations.

Samsung aims to expand its presence in emerging markets to enhance its global reach, yet it faces challenges from the ongoing global economic crisis, which has led to decreased consumer demand in various regions To maintain profitability, the company is compelled to explore alternative strategies and adapt its business approach in response to the turbulent worldwide macroeconomic environment.

Samsung's success in global markets is largely attributed to its ability to adapt products to local traditions and social dynamics, which influence consumer demand and work motivation By tailoring its offerings, such as smartphones and televisions, to meet the specific needs for larger screens and user-friendly features, Samsung effectively aligns its global strategy with local preferences The company remains vigilant about socio-cultural factors to enhance its marketing efforts while maintaining ethical standards, recognizing that corruption and poor quality can severely damage its reputation.

The advancement of technology has enabled the discovery of numerous features in smartphones, which can be likened to compact computers with comprehensive functionalities This evolution in mobile device production aligns with the growing developmental needs of human society.

Samsung leverages technology as its core strength and competitive edge by consistently launching a diverse range of devices, including mobile phones, tablets, and computers, accompanied by regular upgrades The company not only introduces innovative products but also employs various digital technologies to foster strong customer relationships Furthermore, Samsung invests significantly in extensive research and professional development, which has contributed to the unique appeal of its SUHD TVs among consumers.

Samsung faced significant penalties for infringing on Apple's iPhone and iPad designs, primarily due to technology-related issues The six-year legal battle culminated in a decisive victory for Apple, resulting in detrimental effects on Samsung's branding and customer engagement strategies.

Samsung faces significant challenges due to ongoing lawsuits, particularly in developed nations A notable incident involved the Galaxy Note 7, which experienced widespread explosions globally, leading to legal action from 527 customers in South Korea.

 Samsung needs to follow a number of rules to help the company avoid legal penalties and other serious consequences.

Following industrialization, pollution and global warming have emerged as significant challenges, highlighting the responsibility of technology companies to safeguard the environment Samsung has taken proactive steps to address these issues by reducing energy consumption and utilizing renewable energy sources to minimize emissions Additionally, Samsung Electronics has partnered with Green Development to supply bioethanol cooking stoves to the residents of Mombasa, Kenya, demonstrating its commitment to environmental sustainability and community support.

Samsung must create an optimal working environment and provide incentives for employees engaged in product manufacturing to effectively address customer demands for sustainability and uphold social responsibility throughout the supply chain.

SWOT OF S AMSUNG

Samsung leads the smartphone market, holding the top position globally with an 18.5% market share in Q1 2020, while Apple follows with 13.7%, according to Gartner.

Samsung is at the forefront of innovation, consistently researching and developing a diverse range of products to stay competitive in the market With 34 research and development centers (R&D) around the globe, the company produces a variety of popular items, including tablets, cameras, televisions, and particularly sought-after smartphones and smartwatches.

With 80 years of experience in branding and development Take a pioneering position in innovation to bring the best experience to consumers with the desire to receive the trust of customers Samsung always does its role well when a small part of users keep faith in the products and services of the brand Samsung has been awarded the CES (Consumer Electronics Show) award for its designs and products for 14 consecutive years Not stopping there, in 2018, Samsung continued to receive 36 CES awards along with 400 others over the course of 14 years.

Samsung's commitment to continuous innovation is a key strength in its SWOT analysis, as the brand consistently enhances product features and interfaces to provide customers with exceptional experiences Additionally, Samsung's focus on environmentally friendly improvements further boosts its brand reputation.

It has always been in the Top 10 technology and telecommunications companies on the EPA's Green Energy Partnerships list.

With a long-term achievement table and many high technologies successfully applied in its products, contributing to increasing the attractiveness and position of the Samsung brand in all business areas.

Samsung has consistently ranked as a top brand in Asia, particularly within the thriving markets of China and India These regions play a crucial role in driving Samsung's business growth, prompting the company to leverage opportunities and implement various incentives to enhance its presence and competitiveness in these countries.

Depends on the US market

Samsung's SWOT analysis highlights a significant weakness: its heavy reliance on the US market, which is a key area for sales With both Apple and Samsung dominating this space, they collectively account for over 70.8% of smartphone sales in the region, underscoring the importance of this market to their overall success.

Samsung has diversified its resources and expanded its market presence in Asia, yet it remains heavily reliant on the U.S market for revenue The unpredictability of the U.S economy poses a significant risk; a potential recession could jeopardize Samsung's revenue and directly impact its operational resources.

The Samsung Galaxy A20e incident represents a significant failure for the brand, as it involved the distribution of a faulty product that posed a potential threat to consumer safety This situation undermines consumer trust in Samsung, even among its loyal customer base.

Dependence on low-end smartphones

Samsung's revenue is primarily driven by the sales of low-end smartphones, which have notably impacted the sales of its high-end devices As a result, Samsung experienced a decrease in smartphone sales, dropping from 71 million units and holding a 19.1% market share in Q1 2019.

55 million smartphones sold in Q1 2020 with 18.5% market share (according to Gartner report).

Investing in personnel management is crucial for Samsung to achieve remarkable transformations, as it enhances product quality and boosts sales By leveraging its strong brand image and employing highly skilled workers, Samsung can gain a competitive edge and significantly improve business performance and productivity.

Samsung is capitalizing on its expertise to seize opportunities arising from the global transition to 5G networks The company is currently engaged in discussions with European operators to supply advanced 5G and future 6G network equipment.

In the fast-paced smartphone market, brands risk obsolescence if they fail to stay current with trends Continuous innovation and product upgrades are essential to meet evolving customer preferences Samsung exemplifies this approach, achieving significant growth by leading the way with groundbreaking products such as foldable phones.

Customers can be categorized into two main preferences: iOS and Android, with Apple and Samsung as the dominant players in these operating systems Samsung consistently maintains a strong global user base and fosters significant customer loyalty, particularly in the lucrative US market.

Samsung faced significant challenges when Apple sued the company for patent infringement, initiating a contentious seven-year legal battle Ultimately, the courts determined that Samsung had copied Apple's innovations, resulting in a substantial damages payment of $1.049 billion.

 This lawsuit damaged Samsung's reputation and reduced its sales.

Samsung faces intensifying competition in the consumer electronics, smartphone, and computer industries, as rivals like Xiaomi, Apple, and Huawei achieve record growth These leading technology companies are striving to establish themselves as the top player in the market, which heightens the competitive and financial pressures on Samsung.

THE INTERNATIONAL STRATEGY OF SAMSUNG ELECTRONICS

S AMSUNG E LECTRONICS C OMPANY PENETRATES THE V IETNAMESE MARKET

3.1.1 The reason Samsung Electronics entered the Vietnnamese market

From 1987 to 1995, Samsung Electronics underwent significant transformations under the leadership of Lee Kun Hee, who became chairman in 1987 His bold initiatives aimed to reorganize existing businesses and launch new ventures, with the goal of positioning Samsung Electronics among the top five technology companies globally This period marked a pivotal shift characterized by commitment, change, and innovation, fundamentally transforming Samsung Electronics into a leading player in the tech industry.

The enterprise is transforming from a state of "technical backwardness" to one that is rapidly bridging the technology gap with leading global tech companies This shift positions the business to confidently engage in the challenging yet enticing global technology market.

In 1986, Vietnam embarked on a significant transition from a subsidized economy to a socialist-oriented market economy, marking a pivotal moment for the Vietnamese Communist Party that transformed the nation's social and economic landscape Between 1986 and 1990, GDP growth surged to an average of 7.8%, nearly double the pre-renovation rate, leading to a robust economic expansion from 1991 to 1995, with an average growth rate of 8.18% Key sectors such as fuel, power, building materials, and food production experienced substantial growth, while the service sector increased by 80% from 1990 to 1995 Transportation and telecommunications saw remarkable advancements, with freight transportation rising by 62% and tourism revenue soaring tenfold The financial sector made notable strides in controlling inflation, with consumer price indices decreasing significantly during this period Investment in social development reached approximately $18 billion, with foreign direct investment attracting an average annual increase of 50%, showcasing Vietnam's evolving investment landscape characterized by joint ventures and a supportive legal framework Furthermore, Vietnam actively integrated into the global economy through the normalization of relations with the US and joining ASEAN, culminating in the signing of the Vietnam-EU Framework Agreement in 1995.

The growth of the service industry highlights a significant shift in Vietnam's access to electricity, transitioning from a luxury in the pre-1986 era to a common utility by the early 1990s, reaching every commune and family This widespread availability has led to a surging demand for electronic products However, domestic production remains limited, with local factories like Thong Nhat Electromechanical Company and Rang Dong Lamp and Thermos Company primarily manufacturing basic items like light bulbs and electric fans More advanced products such as TVs and refrigerators are predominantly imported from Japan, resulting in higher costs for both new and used goods.

Between 1986 and 1995, prior to Samsung's entry into Vietnam, socio-economic research revealed the country's significant market potential, prompting Samsung Electronics to strategically select Vietnam for global expansion The nation's rapid economic growth and increasing foreign investment, fueled by a stable political environment and government initiatives to support international investors, created an attractive investment landscape Additionally, the high population and rising demand for consumer electronics, coupled with limited supply, were key factors influencing Samsung's decision to enter the Vietnamese market.

In 1994, Samsung established a joint venture, SAVINA, with TIE Joint Stock Company in Vietnam, marking its entry into the Vietnamese market This partnership aimed to mitigate risks associated with new market entry, reduce political uncertainties, and enhance market penetration opportunities However, the primary challenge for Samsung's expansion in Vietnam remains the host country's investment policy.

During the initial wave of power investment, Mr Nguyen Van Dao, Deputy General Director of Savina and a key member of the Vietnamese negotiation team with Samsung, reflected on Vietnam's strategic shift towards attracting international investors At that time, as Vietnam prepared to join the ASEAN Free Trade Area (AFTA), the country recognized the importance of establishing joint ventures between foreign and local firms to foster domestic industry growth.

In January 1995, Samsung launched its first factory in Vietnam, located in the Thu Duc district of Ho Chi Minh City This facility marked the initial wave of investment, followed by the establishment of Samsung Electronics Vietnam Co., Ltd (SEV), which represents a significant second wave of foreign electronic investment in the country While Savina began with an investment of $11.8 million in 1994, the SEV project in Bac Ninh was initiated with a substantial investment of $670 million, commencing operations in October.

2009) Samsung increased its entire investment in SEV registration to US$2.5 billion by 2012, establishing itself as the world's largest high-tech mobile phone manufacturing complex.

Chart 1 - Vietnam LCD TV market

- Create a brand with the highest quality criteria:

Samsung Vina has made a strategic decision to refrain from introducing outdated products in Vietnam, opting instead to offer only the latest models tailored to local preferences This commitment ensures that the company supports the market with well-designed items that incorporate cutting-edge technologies and features, effectively capturing consumer interest.

In 1996, Samsung significantly increased its investment in a color television production line, shifting its focus towards the development of high-quality products Today, Samsung Vina has expanded to five production lines, manufacturing 1.5 million units annually across various categories, including televisions, home appliances, and computer screens.

By researching customer preferences, the company identified a growing demand for high-end electronic products across various categories Unlike competitors who focus on a single product line, Samsung has strategically invested in and developed a diverse range of offerings This approach has enabled Samsung to outperform its rivals and achieve significant profits in the markets it enters.

As customer demand continues to rise, Samsung Vina recognizes the necessity for ongoing innovation to thrive in the competitive market The company has made substantial investments in research and development, focusing on creating products with elegant designs and diverse functionalities By consistently introducing new and inventive products, Samsung has successfully navigated the challenges of short product life cycles, appealing to a younger audience that values novelty and continuous innovation in both design and functionality.

Along with the application of "Sashimi theory", Samsung Vina applies a

Samsung employs a skimming pricing strategy targeting customers eager to purchase new products at reasonable prices By positioning its products in the mid-range while maintaining high quality, Samsung effectively penetrates the Vietnamese market, which is characterized by lower income levels.

In Vietnam, Samsung Vina primarily establishes its distribution network via big retail enterprises and a network of recognized electronics retailers.

Samsung Vina has partnered with reputable organizations in Vietnam's retail sector to enhance its distribution channels The company distributes mobile phones through certified distributors like FPT Mobile, Viettel, and Phu Thai Group, while also selecting reliable wholesalers for computers, including Tran Anh Computer and Lam Phuong Computer By collaborating with these well-known and experienced companies, Samsung ensures high-quality products and fosters customer trust, elevating the Samsung brand to new heights.

T YPES OF INTERNATIONAL STRATEGY THAT S AMSUNG HAS APPLIED

In resource-limited environments, a strategy serves as a method for achieving significant objectives, with tactics playing a supportive role Samsung exemplifies this by effectively employing diverse business tactics on a global scale to enhance profitability Key elements of Samsung's international strategy include diversification, tapping into new markets, achieving economies of scale, leveraging comparative advantages, and navigating favorable tax and regulatory conditions The company focuses on global strategic alliances and maintains numerous wholly and partly owned subsidiaries, which benefit from global vertical integration tailored to specific business divisions, geographic locations, and product types.

Businesses may grow all around the globe through a number of methods, each with various degrees of risk and control For starters, there's the export strategy.

When a firm exports its products to a foreign entity, such as a broker or organization, it often relinquishes control over marketing and advertising efforts due to its limited investment in the broker This arrangement typically occurs when the exporting company lacks the resources or expertise to navigate foreign markets, making it a practical choice despite the risks involved Poor marketing decisions by the broker can negatively impact the exporter’s brand perception While companies like Samsung generally avoid using agents or brokers, leveraging their extensive network of subsidiaries and strategic partnerships, some product lines may still follow the typical export model For instance, Samsung exports OLED panels to Apple and semiconductors to manufacturers in the UK and the US, managing these transactions directly to maintain control over their brand and product image.

License agreements enable foreign companies to produce and market products under a brand name, resembling franchising but with less involvement from the original company This arrangement allows other businesses to leverage the brand name or design patents while the original firm establishes guidelines for sales and production to ensure quality and protect brand integrity.

Businesses often choose to form a joint venture, where one company supplies products while the other offers valuable local market knowledge and expertise This partnership typically includes a joint-venture agreement that defines each company's responsibilities, allowing firms with limited international experience to effectively market their products and navigate foreign markets By leveraging their partner's insights, companies can enhance their operations, although this also increases reliance on partners and the importance of strong commercial relationships for success A notable example is Sony's exit from its joint venture with Samsung in LCD television technology in 2011, when Samsung acquired Sony's stake in the partnership.

Samsung's investment of $939 million in OLED LCD screen technology has proven to be a wise choice, enabling the company to achieve dominance in the TV market through superior quality and increased market share.

Global Strategic Partnerships offer firms a broader alternative to joint ventures, requiring significant long-term investment and commitment from both parties These partnerships focus on developing products and services aimed at achieving global market dominance through a unified market strategy rather than localized adaptations A prime example is Samsung, which maintains minimal variations in its flagship phone models across different countries, resulting in substantial global market share with only slight marketing adjustments In 2017, Samsung and Microsoft established a strategic partnership to enhance their product offerings, including the Samsung Galaxy Book, to compete with Apple's iPad This collaboration leverages their combined technological expertise, improving device interoperability and connectivity, particularly in Western markets like the United States.

Businesses often seek to expand into international markets by establishing wholly owned subsidiaries, which occurs when a foreign corporation takes complete control over operations in another country For instance, Samsung operates numerous wholly owned subsidiaries worldwide, allowing these entities to leverage the expertise of local employees for better market decisions In the UK, these subsidiaries import products from Samsung's manufacturing facilities in Vietnam, efficiently promoting and selling them to local customers Additionally, R&D facilities, like the one in Staines, are set up in foreign locations to capitalize on diverse skill sets and local market knowledge, enhancing the research and development process to meet customer needs While this strategy requires significant time and financial investment, it ensures that the company assumes full responsibility and risk in international markets, ultimately fostering greater growth and profitability across all enterprises.

Samsung has strategically established wholly-owned subsidiaries in Korea, China, and India to leverage the advantages of low-cost labor and operations This vertical integration enables the company to produce essential components for its phones domestically, reducing import tariffs and maximizing operational income By minimizing logistics costs, Samsung efficiently distributes its products within these markets, ensuring a streamlined commercialization process for consumers.

Businesses often franchise their operations, allowing separate owners to manage them under a brand name Franchisees typically pay an initial fee and ongoing royalties based on sales or profits, a model widely seen in the fast-food sector with brands like McDonald's and Domino's Pizza In contrast, Samsung leverages joint ventures, wholly owned subsidiaries, and vertical integration to reduce manufacturing costs and enhance global market effectiveness, resulting in many of its product lines achieving the top position worldwide.

S OME STORIES OF S AMSUNG ’ S BUSINESS IN V IETNAM

3.3.1 Samsung’s transnational strategy into Vietnam

When a business is under severe cost pressure and under pressure to act locally, a multinational approach makes sense A business using this approach must aim to accomplish two objectives concurrently:

- Take into account regional disparities.

When entering the worldwide market, Samsung established a transnational approach with the objective of fulfilling the particular demands of each country while remaining price competitive with rivals.

Samsung enjoys a significant cost advantage in the market due to its strategic localization efforts By customizing its operations to fit the unique characteristics of each market, Samsung has made substantial investments in Vietnam, aiming to establish a high-tech manufacturing complex in Bac Ninh This initiative is further bolstered by favorable incentives provided by the Vietnamese government, enhancing Samsung's competitive edge in the region.

"national important project," infrastructural incentives, and labor expenses,Samsung's manufacturing costs are dramatically lowered Low-cost imports and tax incentives for high-tech projects

3.3.2 Vietnam – Samsung’s potential market and success story of

Vietnam plays a vital role in Samsung's globalization strategy, with Samsung Vina starting operations in 1996 and generating $9 million in revenue By 2007, this figure soared to around $400 million, including $88 million in exports The company aims to achieve $1 billion in revenue by 2010, highlighting its significant growth and investment potential in the region.

As of June 2008, Samsung Vina held a dominant position in the market with a 36.7% share of the LCD TV sector, 26% of the light TV market, and 19% of the mobile phone market, according to GFK figures Additionally, Samsung maintained its leadership in side-by-side refrigerators and MP3 players, reinforcing its strong presence across various product categories.

In 2007, Samsung achieved remarkable success in the computer sector, securing the second position in multifunction printer market share Additionally, the company saw a staggering 250 percent increase in sales of its LCD computer displays, while generic computer monitors experienced a notable 40 percent rise in sales.

Samsung Vina continually introduced the debut of new products from early

2010 till the beginning, including: Omnia i900 touchphones, F480, Soul U900, Giorgio Armani – Samsung, Innov8 8MP camera phones or stylistically designed telephones, LiveLoud i450, F330, and F250.

Vietnam actively supports various long-term community initiatives, including the Samsung DigitAll Hope Program (2003-2006), which aimed to bridge technology gaps for individuals with disabilities This program, which continued to resonate with the community until 2011, demonstrates a commitment to social equity Additionally, efforts such as organizing walks for underprivileged students and the Nguyen Duc Canh Scholarship further highlight Vietnam's dedication to improving educational opportunities and uplifting disadvantaged youth.

EXPERIENCES AND LESSONS FROM SAMSUNG ELECTRONICS

Samsung Electronics has effectively utilized International Business Strategies to achieve a prominent position in the electronic technology industry The company's ambitious goal to penetrate new global markets is supported by strategies focused on diversifying customer bases, reducing production costs, and maximizing profits Furthermore, Samsung remains committed to its mission of contributing to national economic development, prioritizing growth, and creating job opportunities By collaborating with reputable partners and distributors, Samsung continues to enhance its market presence and consumer trust.

Samsung possesses a robust core capacity to expand its market share; however, it faces significant challenges and weaknesses in implementing its strategies, particularly when entering new markets with intense competition from global technology firms To navigate these obstacles, Samsung must adapt its strategies without completely overhauling its foundational approaches, tailoring them to meet the needs of target customers and specific markets Additionally, the company should modify its communication and marketing strategies to align with local cultures and customer values while maintaining its core message Addressing these challenges will enable Samsung to strengthen its international business strategy, mitigate competitive pressures, and enhance its position in the industry.

Brianna Parker, (2020) “Samsunng SWOT analysis 2020” Bstrategyhub.com. Retrieved June 5th, 2021 https://bstrategyhub.com/swot-analysis-of-samsung- 2019-samsung-swot-analysis/

Samsung Group's international strategy emphasizes its adaptability and innovation in a competitive global market The company's approach is detailed in the research by Dimitri Dimonin (2014), which outlines key elements of Samsung's strategic framework The MBA Skool Team's PESTLE analysis further highlights the external factors influencing Samsung's operations as of October 12, 2019 Access to these resources can provide deeper insights into Samsung's strategic positioning and market dynamics.

Kiesha Frue: https://pestleanalysis.com/pest-analysis-of-samsung/ update Feb 27,2019.

Nguyen Kim Khang's 2020 article, “Marketing Strategy of Samsung – The Technology Empire,” explores the innovative marketing tactics employed by Samsung to establish its dominance in the tech industry The piece highlights how Samsung's strategic branding, targeted advertising, and customer engagement initiatives have contributed to its success By analyzing Samsung's approach to market segmentation and product differentiation, the article provides valuable insights into the company's ability to adapt to changing consumer demands and maintain a competitive edge For more details, visit Hbr.edu.vn.

Samsung, “About Us”, samsung.com, accessed on June 14 th , 2021, https://samsung.com

In 2019, Tâm Trần conducted a SWOT analysis of Samsung, highlighting the company's continuous growth strategies The analysis emphasizes Samsung's strengths, such as its strong brand reputation and innovative technology, while addressing weaknesses like market competition Opportunities for expansion and potential threats from emerging competitors are also discussed The insights provided in the article illustrate how Samsung adapts to market changes, ensuring its sustained development in the tech industry For more details, visit the original article at atpsoftware.vn.

Thai Phuong “Samsung và cuộc “đổ bộ” 20 năm” Brandsvietnam.com. Retrieved June 11th, 2021 https://www.brandsvietnam.com/5705-Samsung-va- cuoc-do-bo-20-nam

UK Essays, (2019) “Samsung International Business Expansion Strategies”.

Ukessays.com Retrieved June 10th, 2021. https://www.ukessays.com/essays/international-business/samsung- international-business-expansion-strategies.php#:~:text=Samsung's

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