Samsung Technology Strategy, Essay Example

Abstract

The purpose of this study is to analyze a company’s technology strategy. The company I will focus on is Samsung. In this study, I will try to analyze how the company understands the technology strategy. In addition, I will focus on the company’s technology strategy in the market. This is how the company views the trend and structure of the market in terms of the technology as a strategy. The company can apply technology strategy in the market to advertise, buying, and selling, and any other online transaction in the company.

Samsung was started as a small export organization in Daegu, Korea in 1938. The founding chairperson was Byung-Chull who started the business with 30000 won. Samsung has grown that it has become one of the largest electronic companies. The company is specializing in digital media and appliances, memory, semiconductors, and system integration. Samsung entered the electronic industry in 1960s. This was when many focused electronic divisions were formed. Samsung entered the industry of telecommunication hardware in 1980s. This was with the purchase of Hanguk Jenja Tongsin. Initially, Samsung constructed telephone switchboards, which expanded to fax and telephone systems. Samsung shifted all these later to a mobile manufacturing industry. Today Samsung is recognized all over the world because of its processes, top quality products, and innovativeness.

Samsung Company is undergoing stiff competition in the market. This is because of the rapidly changing technology. The changing technology has been an advantage and a problem at the same time to the company. This is because the new technology has come up with digital ways of marketing products, which is a beneficiary to the company. The trend in the market is not predictable for the company. This is because every competitor company is coming up with new ways and methods of technological marketing its products. The Samsung Company is taking its time to understand the trend of the market before reacting to it. This will assist the company design a strategy that will assist in staging up competition with the other companies like Nokia and many others. Due to the frequent changing in the market trend, Samsung Company has designed an effective strategy, which assists them to dope up with the unpredictable situation. The strategy is for Samsung to introduce new products of different kinds in the market. Samsung has been able to sustain its market by introducing new phones in the market. This has assisted because the company will keep its customers from moving to the competitors as they are getting new products frequently. For example in 2000, Samsung Company started to manufacture batteries for gadgets. In ten years time, Samsung was selling more of the batteries than any other company in the world was. In 2001, Samsung ventured into flat panel televisions and after four years, Samsung was leading in the market. Samsung worked on flash memory in the years 2002 after which it delivered a technology, which led to the introduction of iPad and iPhone in the market. This made Samsung be the biggest supplier of Apple and now Samsung is the biggest hardware competitor.

Samsung has the largest market structure in the world. This is because it has many businesses, but it is well known in the mobile, camera, television, and home appliances businesses. The type of market structure for Samsung is oligopoly. This is whereby the company is among the few companies are selling products that have the same characteristics, prices and attributes. The few companies are competition to sell the products at highest price possible and at the same time maintain as many customers as possible. In addition, oligopoly can be the few companies selling products that are substitutes of each other, but are different from each other. Samsung and other companies are selling mobile phones and other products, which are substitutes of each, other, but different because they are from different companies. This has enabled Samsung to sustain its market structure as it is among the few companies selling the products like phones, televisions, radios, and many others. As the technology is changing, Samsung maintains its market structure because it introduces new products into the market. This makes it the sole supplier of the products and it will be able to maintain the market structure.

Product position is whereby the company ensures that the created differences between its products and those of competitors are made to stick in the minds of the customers. This is making the customers understand the important features in your product that make it more efficient than that of a competitor. Samsung has been successful in this with the help of the changing technology. Samsung products like mobile phones have some features and settings, which make the customers, prefer the products. For example, internet accessibility and mobile phone restrictions are some of the features in Samsung products. The impact of the technology strategy on the Samsung Company has been positive and effective. This is because the company has been able to sell more products in the market, it has maintained the competition in the market, and it has remained the leading supplier in the market. In addition, the company is introducing new products frequently in the market with the help of technology strategy.

Conclusion

The company’s technology strategy has been effective, as the company has moved to be the top reliable supplier than its competitors. The technology strategy has enabled the company to maintain its market structure, compete with its competitors, and remain the market. The technology strategy has enabled the company to introduce new products into the market, which helps to maintain its customers. The company has been able to venture in various products in the market. The company has moved from selling gadget batteries to selling IPads, iPhones, and tablets.