Current Situation Samsungs Position Marketing Essay

Current Situation Samsungs Position Marketing trySamsungs Position in 2003, was strong as compared to its current situation. Its stock was unitary of the most widely held amongst the companies emerging in the securities industry as more than(prenominal) than half of its shares were outside of Korea, its home country. In 2003, Business week be Samsung 25th most valuable shuffling from 34th position in 2002 and with a fast growing brand value compared to its competitor Sony.In the electronics Industry both Samsung and Sony are leading names and as the electronic industry requires heavy emphasis on research and development, transitions on grocery store and to optimize supply chains. New innovations in technology runs the consumer electronic industry. Samsung uses its traditional in-house RD instead of outsourcing it from Business partners as outsourcing transfer capital investment has bring low risk to separate companies but has high cost, however the risk elusive is lower.Sa msung operates on the virtual integration model which has leveraged all the aspects of the manufacturing process from raw- materials to to the full assembled convergences. Keeping the cost d bear from what it would be if being outsourced, Samsung degraded cost further by off-shoring efforts. As in off-shoring a firm uses its own assets and locates Business units in places much(prenominal) that it has lower costs of action, for this purpose Samsung has put its plants in China and India.Out of the two core securities industrying groups of Samsung, oneness in Korea and the other one for rest of the world, Samsung consolidated to use a single ensure worldwide brand consistency in 2001. A percentage of the current sales of 2003 were set aside for marketing, reallocations were also do to market research to identify if marketing funds could be use to achieve high interprets.SWOTStrengthsHas a wide range of products much(prenominal) as mobile phones, camera, home appliance and o ther devices.Enjoys advantage everyplace a few electronic items by introducing advanced features in LCD, refrigerator, nimbus Conditioner etc.Holds signifi layaboutt market share in many product Categories.Does RD to keep innovating its products and to be ahead from its competitors and to be first in the market with late range of products.WeaknessCaused product CANNIBALIZATION due to launch of series of smart phones.Lack of product software for which it has to depend on other companies.Competitors like SONY and APPLE who have their own products as well as software.Other Areas of business like Chemicals, Machinery Heavy Industry, financial Services recondite to the Public.OpportunitiesContinue sponsoring major events like Olympics in order to spread brand equity and to increase sales and cut competition.Develop its own whimsical software in order to keep up with competitors and to make itself unconditional from other software oriented companies.Should increase its spending o n advert and market its products more.ThreatsRecent tie up of Google and Motorola where Google has decided to sell its software only to Motorola, without its own software its very difficult for Samsung to survive in prox competition.Increasing competition from APPLE and SONY.Amount of money dog-tired in RD for product innovation and creation on unsanded and remarkable products is huge, which other companies save by reverse engineering Samsungs products.Strategic discoloration ManagementBrand Building in order to increase onward motional costs and decrease revenues by sacrificing certain product lines and with the digital variation going on a new opportunity window is in that respect to dominate consumer electronics market. Doing so without proper precautions can cause the come with around irreparable damage. The need for advertisement and promotion is a must for the company in order to increase the awareness among consumers. Though advertisement and promotion of Samsung d epends on the activities done by it in the particular region. Activities carried out by the company can have both positive and negative impacts such as promotional materials intended and developed for one countrys market can limit its ability to develop promotional campaigns made specifically for other market. Samsungs competitive advantage led to unique breeding environment for innovation, RD and the production of new technology should be pre serve welld therefore, all new products should be kept in a safe location e.g. in the Korean Headquaters.RecommendationsMoving away from the supplier mentality Samsung should de-emphasize the importance of new products, though innovation of products has brought Samsung great wealth, Samsung can still survive in the market by cutting costs spent in RD of new technology and let the market forces be the driving force in the development of new technology.Training of internal staff in fashioning use of effective marketing as it is related to othe r areas of Business, in particular development. First-hand knowledge of the development process should benefit the marketing team as they should know what a delay in research can beggarly to the project.Development of a career path in marketing and a formal structure for Samsung employees would demonstrate to the company a commitment to marketing, which would serve as a recruiter and developer to grow new marketing talent.Marketing professionals if carry within a structured environment would help Samsung further to affect build consistency with its brand identity.Use of interactive marketing such as making of online ad campaigns on frequently visited websites like Youtube, where the beauty should be able to interact with the help of annotation feature. Where multiple options should be given and if any of the options is chosen then each option should blossom out a new video.Should move its product from price-driven stores to more focused retailers. effectuationTo make the selli ng of developed products easier the resources should be shifted from RD to marketing which would increase the return of RD spending. Samsung should know that branding is as important as the high bore of the products that Samsung supplies. Partnership with a Chinese firm can help reduce the labour costs related to production of legacy products without compromising on the valuable intellectual property.Samsung besides being in partnership with the Chinese, cannot immerse that the Chinese can still prove as competitors which can wound their business. Therefore the company should keep a strong focus on maintaining its technological leadership by pursuing cutting-edge RD, especially towards future substitutes for DRAMS. One more way to reduce the chances of development of competition, though more risky and should be applied with care is to surpass new market entrants by lowering margins on low-end DRAMs. The profit will not be more but Samsungs name and the build quality of their prod ucts will shake up the competitors towards more or less operational losses, at the same quantify itll ensure that Samsung will still be able to earn on the other products from its wide range of portfolio.