International Strategic Management Project Overview Assessment

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It also creates consumer loyalty thereby ensuring dominance in the international market.


Branding helps to create consumer attachment to products Myers H., 2004.

Samsung electronics gives more meaning to products and customer through branding its products. Branding according to Rumelt (1991)

brings in the aspect of trust, loyalty and excellent value to customers. To venture in the international market branding is important for sustainability and survival Finch P., 2004.

It is also an innovative way of improving the customers' experiences in using products and reserving identifying with the products. Branding by Samsung has ensured that customer identification of the products is easy and they can easily accord a value on the product.

Overview of Samsung's Strategy

In choosing its preferred internationalization strategy Samsung electronics deploys emphasis on three major aspects. These aspects give a summary of strategies discussed earlier. They include Adaptation, Aggression, arbitrage (AAA triangle).

Adaptation is concerned with specific market condition where aspects of culture, regulation and needs for the market are incorporated Ricart et al., 2004.

Samsung electronics uses adaptation to obtain an edge in market penetration and add value to the market.

Aggression works on ensuring the economies of scale are within bounds of operations. It entails standardization of products and brings the activities of the corporation together. Samsung embraces aggression through marketing, branding and producing its products in a standardized manner.

Arbitrage involves assessing the differences and exploiting them for economies of scale and product development Ricart et al., 2004.

The assessment entails determining the suitability of using one location to source for raw materials and another to develop technology based on suitability. Samsung uses arbitrage to determine whether it is viable to locate a production plant in a particular country or just exploit the market. In arbitrage factors such as local knowledge of technology source of raw material and government regulations are put in mind Ricart et al., 2004()

Lessons learned by Samsung Corporation

Increased competition means a decrease in profits and market share to Samsung owing to high supply and decreased sales. Competitors in the electronics international market will bring in lower prices and segregate the market proportion enjoyed by Samsung. Competition will also bring in the aspect of technological advancement and thus higher cost to Samsung. The elevated costs will be due to the need for innovations required to match the international competition. Other issues facing Samsung are discussed below.

Threat to entry

Samsung faces great threat is a company dealing in the international arena take up to produce a variety of products just as it does. Though it is not easy to open up a wide range production such as the one run by Samsung technology, should such development occur the corporation faces a grave danger of threat.


Rivalry in the electronics market is very high. Firms have not only to be on level with technology but also, track the developments of their competitors. Rivalry is heightened by introduction of new products in the market (Barney and Hesterly, 2008). It is even worse where the competing firms are not in a position to technologically differentiate products. Failure to keep up with trend development in the market of electronics will lead to loss of customers.


The supplies of electronics are a formidable force to reckon with where competition is volatile. Suppliers can easily form partnership with producing firms. Since this are the linkages to the market and consumer Samsung faces more threat if they fail to ascertain they are in good relations with the suppliers. Suppliers will keep with companies whose future is promising Rumelt (1991)


This is the greatest threat among all since they consumer is the back bone of every production activity. Consumers decide what and where to buy the products and since the electronic products are based on need and want of the consumer the threat is great. This threat comes in when the producer fails to consider the needs and wants of the consumer and also does not keep trend with technology advancements.


Redesign and make innovative electronics

Samsung needs to differentiate its products more from those of its competitors. It is admirable to remain at the top of electronic industry in competition however it is not easy. Samsung needs to keep bring new electronics and technology into the market. Technology advancements need also to be miles away from replication by other competitors. Considerations should also be made to use the lead role they have in existing electronics to incorporate new technology. This will make their technology in electronics more desirable and leap it ahead of competitors Barney J.B. And Hesely W.S (2008)

The likely outcome from redesigning and innovations are that the long-term cost of redesigning are low compared to shorter term costs. Product differentiations will be higher and pressure on competition is expected to be high. With redesigning it is favorable for the company to since it will also increase its potential for growth both in revenues and brand name. Potential for failure is also minimized owing to wider base of operations.

Increase Global Presences

Samsung should consider venturing in more markets abroad with more electronic products. The introduction of their products in new demographics will mean that they can earn original market loyalties. Venturing in global markets should also be used to tap in to local skills that are otherwise unavailable and advance their technology Ricart et al. (2004)

. Advancing technology that has failures and introducing it in new market will also add the advantage of reducing loss and increasing revenues. In venturing in global markets the Samsung should also obtain partnership with suppliers to ensure that they keep trends with market needs and also they have an outlet for their products.

The gains of a global venture by Samsung will out way costs likely to be incurred if it is taken up Rumelt (1991)

. Global venture increases has more potential in increasing pressure on competition, increasing international mission development, increasing growth and profits and brand name development. On the contrary, with global venture there is potential of failure, higher shot term costs.

Under differentiation, product redesign solution aims at improving the features of an existing product and gives it a new perspective for evaluation by the consumer. In effect this will result in a highly valued product by the consumer which competition will face a steep climb to get to. It also assists in the global arena to unlock new markets which are yet to be exploited.


Venturing in globally new markets will add value to the corporation owing to the wider market share acquired. The presence of Samsung technology solution in new unexploited market will also increase the barriers to entry for competitors.

Development of brand name will be highest should the company venture in global market and also redesign their products. It will give potential to the product to tap new markets and also embrace new talent to add value to its operations.

Samsung stands to benefit more through increasing it competitive advantage by use of the aforementioned strategies for global market innovations. It has a chance to know out potential threat to its market leadership and increase its market dominance.


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