The company has a market capitalization of 520.65 million dollars. This figure is ranked as the world’s twelfth largest. Samsung is a major producer of electronic components, such as batteries, sensors, cameras, and screens, for firms like Apple, Sony, and Nokia. It first rose to prominence with the Samsung Solstice, and then with the Samsung Galaxy family of handsets. The Galaxy S22 and Galaxy Z fold 3 are two 5G-capable smartphones produced by Samsung. Since 2006, it has been regarded as the world’s largest television manufacturer.
Samsung’s Competitive Advantages
Samsung has grown into the world’s largest multi-billion-dollar corporation. This was made feasible by Samsung’s numerous competitive advantages. In 1960, the Samsung Group also entered the electrical industry.
Some of the competitive advantages of Samsung are as follows:
1)Samsung has a strong commitment to its research and development –
Samsung is dedicated to research and development, and it is continuously looking out for the demands of its customers. This puts Samsung ahead of its competitors. They are constantly on the lookout for solutions to meet their clients’ needs. Samsung engineers are constantly working to create new goods that will suit the needs of their customers. They design and test new Samsung goods in response to client demand.
2)Samsung combines both the Japanese as well as American strategies into their products –
Samsung’s ability to blend the strategies of both the Japanese and American markets is another competitive edge. Companies in Japan are recognized for providing a wide selection of items, whereas companies in the United States are known for focusing on a small number of products. Samsung employs both horizontal and vertical integration by integrating these two markets. This means that, after combining both the Japanese and American markets, Samsung can now offer a varied choice of products to its clients while also specializing in production. Samsung is one of the top electronic firms due to several distinct competitive advantages. Samsung’s culture provides certain competitive benefits. It accepts all cultural differences and adapts so that customers may locate trustworthy products in local markets. It has expertise in building quality products at very low costs. It also has a surplus supply chain and distribution channels.
3)Samsung’s brand image –
Another reason Samsung has a competitive edge is that its brand image is extremely important in marketing and international business. Samsung’s brand image is what makes it so successful. Samsung is a renowned technology and electrical industry brand with a substantial presence in the Smartphone and electronics industries. One of the reasons for this is that Samsung has a very strong brand and is very customer-centric, supporting the needs and wants of the consumer’s tastes and preferences continually. It also aids clients in having a positive experience with their products as a whole.
4)Samsung’s marketing strategy –
One of the most important elements in Samsung’s growth and competitiveness in the electronics market is its marketing strategy. The major goal of the marketing strategy is to take into account both the needs of the customers and the quality of the products on sale. The marketing strategy is critical to increasing the company’s sales and establishing a strong brand image in the industry. Every year, Samsung spends a significant amount of money on the marketing and production of its products. Samsung’s advertising costs were estimated to be around 4 trillion won in 2018. Samsung’s overall marketing budget was more than $9 billion. This statistic represents the amount of money Samsung spends on marketing and promotions. It also depends heavily on digital technology for customer engagement. The company has made a very strong image in the highly competitive electronics industry.
5)Pricing strategy of Samsung –
Samsung’s pricing strategy also contributes significantly to the company’s competitive edge. The pricing strategy aids the organization in gaining market competitiveness and global leadership. It sells things at both the upper and lower price ranges. It sells premium Galaxy Smartphone models to its consumers as well as more economical products such as smartphones and laptops. Samsung’s vast client base is one of the primary drivers of its competitive advantages. Samsung’s price approach, which allows the corporation to cater to the requirements of a broader client base, has resulted in this big customer base. Apart from mobile phones, the electronics area includes both high-end and low-end devices.
Conclusion
Samsung Electronics Co., Ltd. is a South Korean multinational electronics corporation. Samsung is now regarded as one of the most successful firms in the electronics industry. This is due to Samsung’s constant attention to its customers’ requirements. Samsung’s ability to blend the strategies of both the Japanese and American markets is another competitive edge. One of the most important aspects of Samsung’s growth is its marketing strategy. Samsung’s pricing strategy also contributes significantly to the company’s competitive edge.
