Samsung and the Role of Innovator in Mobile Computing Industry

Samsung Cell Phones

In recent times, companies' social contributions have undergone a change from mere philanthropy to activities for creation of shared value (CSV); here, companies simultaneously generate profits in addition to social values. Samsung SDI is of the view that contribution to, and communication with, society is a precondition for being a global world-class brand. Samsung SDI ensures that its local and key overseas sites contribute to the local community. Social contribution programs, for the company, serve as a means to communicate with and develop the local community.

Free Eye Treatment Project

Among the oldest of Samsung's social contributions is the Free Eye Treatment Project, begun in 1995 with the assistance of Siloam Eye Hospital, for the benefit of poor visually-impaired persons.

Hold the Nanuri Marathon Race

Samsung SDI has hosted, since 2005, the 'Nanuri Marathon Race', wherein its employees participate for supporting local communities' malnourished children. The donation, since the year 2008, has been directed towards aiding college admission fees for low-income students (Gongse-Ro Giheung-Gu & Gyeonggi-Do, 2014).

2. While Samsung does not have any official mission, it is expressed via the company philosophy:

"At Samsung, we follow a simple business philosophy: to devote our talent and technology to creating superior products and services that contribute to a better global society."

The above company statement is obviously overly-short and inadequate in providing information regarding what Samsung does and why. It received a score of 1.6 points as it only incorporates three of nine key components and is customer-oriented; i.e., it defines the organization's goal with regard to fulfilling customer requirements, rather than concentrating on what goods/services to produce/serve. Further, Samsung in its philosophy, does not cite any values considered in evaluation; it states them separately:

People

Excellence

Change

Integrity

Co-prosperity

The firm should have included its values integrity, co-prosperity (in other words, citizenship) and excellence in the mission statement. Samsung's philosophy, overall, is ineffective in depicting its key purpose to stakeholders (Jurevicius, 2013; Samsung, 2013).

The company also has a statement for its Vision: "Inspire the World, Create the Future," which reflects its assurance to inspire communities through leveraging of its major three strengths, namely, Novel Technology, Creative Solutions and Cutting-edge Products as well as to promote fresh value for its key networks -- Industry, Employees and Partners. Samsung, via these efforts, endeavors to play a role in providing a richer customer experience, and 'bettering' the world.

3. SWOT analysis.

Strength

Superior engineering and production of consumer electronics and hardware parts

Samsung holds the largest mobile phone and television market share; it is also the market leader in some hardware parts (e.g. memory chips, processors, etc.). Samsung reached this level largely because of its superiority in engineering, as well as effective, efficient production, enabling it to launch globally- accepted new technologies.

Weakness

Profit margin is too low

Though Samsung's revenue is the highest among global technology businesses, its profits are low. The reason behind low profit margin is its aggressive price reductions and semiconductors' sales. This weakness decreases Samsung's ability to allot funds to research and development, an important activity.

Opportunity

Increasing demand for premium application processors

Samsung stands among the major application processor-makers for tablets and smartphones. These products' growing demand necessitates top-grade application processors, which are only provided by Samsung.

Threat

Speedy technological change.

This is a serious threat faced by technology firms like Samsung. Companies are pressurized to rapidly release more advanced products; This is particularly hard when businesses wish to successfully launch an innovative product (Jurevicius, SWOT analysis of Samsung, 2013).