question archive What will be SWOT analysis of this ?SAMSUNG GALAXY Despite being one of the world's largest producers of electronics devices, you may be surprised to find out that Samsung electronics started out primarily as a low-tier manufacturing brand with cheap consumer perception
What will be SWOT analysis of this ?SAMSUNG GALAXY Despite being one of the world's largest producers of electronics devices, you may be surprised to find out that Samsung electronics started out primarily as a low-tier manufacturing brand with cheap consumer perception
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What will be SWOT analysis of this ?SAMSUNG GALAXY Despite being one of the world's largest producers of electronics devices, you may be surprised to find out that Samsung electronics started out primarily as a low-tier manufacturing brand with cheap consumer perception.Back in 1970, Samsung's electronics unit started out making cheap TV sets for the Sanyo label, but over time, it transformed into an innovative company and has turned out to be a pioneer in developing large flat-screen displays, plasma TVs, and cutting-edge smartphones.
But until the mid-1990s, they competed mainly by developing technical components and low-cost manufactured products for bigger brands, such as Dell, Hewlett Packard, and GE. They were also selling other low-cost consumer products - like TVs and microwave ovens under the Samsung brand through discount chains like Walmart. This was referred to as the low cost driven strategy
A PIVOTAL COMPETITIVE & MARKETING STRATEGY
The first decision in Samsung's marketing strategy was to develop new competitive and promotional strategies. they initiated a new competitive strategy with the goal of developing and marketing superior products while also building an image of Samsung as a stylish, high-quality brand worthy of a premium price. The objective was to establish a unique position using technical innovation while designing more appeal to a younger generation, as well as upscale customers around the world. they argued that to continue to compete on price would eventually be their downfall.
R&D INTO INNOVATIVE TECH
Samsung chose to invest heavily in technical innovation and R&D. In order to have a competitive advantage driven by innovation, Samsung had to become a pioneer in developing new technology. this was opposed to the old technology used by their competitors.
The digital world required new products and consequently, the firm shifted substantial resources into developing large-area LCDs, chip sets, and cellphones. Fast forward to the economic crisis of 2008-2009, Samsung spent over 7 Billion dollars for nearly 6% of the unit's revenue into research and development, and at the time more than 25% of the company's workforce engaged in R&D.
PRODUCT DEVELOPMENT & DESIGN
Understanding that cutting-edge technology does not always guarantee market success, Samsung also focused on product development and design. Their goal was to create products that deliver benefits that at least some segment of consumers will consider to be worth the price.
BRAND BUILDING CAMPAIGNS
Last and certainly not least, Samsung's marketing strategy focused on creating a promotional campaign to build Samsung's brand image.
One of his first moves was to re-organize the firm's distribution channels to be consistent with the strategic objective of establishing Samsung as a high-quality brand. To start, many of the company's products were pulled out of the low price discount chains and shifted distribution through big-box electronics stores like Best Buy and online shopping through Amazon.
RESULTS OF SAMSUNG'S STRATEGIC MARKETING DECISION
The revamped competitive strategy and marketing programs that Samsung designed and implemented have been a huge success. The global value of Samsung's brand increased by more than 200% from 2003 to 2008, and it took over Sony as the most valuable consumer-electronics brand. As a result, the unit sales grew to $119 billion by 2009, and with the advent of the Samsung Galaxy, revenue has grown into a staggering $218 billion as of 2018.
According to the vision statement on its website, Samsung seeks to achieve $400 billion in sales while placing Samsung Electronics' overall brand value among the global top 5 by the end of 2020.
Explanation:
sumsung employed various marketing strategies inorder to achieve success despite the available competition it was facing from Sony that was already developed.some of these strategies include;
- innovative technology
- product development and design
- brand building campaigns
References
How Samsung's marketing strategy transformed them into a global brand — Proecho solutions. (2020, June 6). Proecho Solutions | Asheville Marketing Agency. https://proechosolutions.com/asheville-marketing/how-samsungs-marketing-strategy-turned-them-into-a-technological-powerhouse
