Samsung’s Galaxy Tab Strategy - 3025 Words

Samsung's Galaxy Tab Strategy (Research Paper Sample) Content: Samsung and Samsungs Galaxy tab strategy analysis in the UK marketName:University:Course:Instructor:Date: Executive SummaryThis report provides an analysis of the strategy employed by Samsung on its Galaxy tab tabs, in the United Kingdom. It uses PESTEL, Porters Five Forces, Value Chain, and porters generic strategy models to analyse the current competitive position of Samsung and its Galaxy tab. The findings from the analysis show that the political stability in the UK guarantees a peaceful for Samsung. Additionally, the growing UK economy, adoption of green initiatives, advances in technologies, and favourable social aspects such as the growing demand for technological products among the UK citizens, favour the performance of Samsungs galaxy tab. However, the ever-changing customer preferences and stiff competition present challenges to the company. To stay competitive in the market, Samsung employs an effective marketing program, highly-skilled employees, greater R D capability, and focuses on timely and efficient procurement process. However, it has a weak infrastructure in the UK. Additionally, Samsung Electronics Logitech is particularly charged with handling outbound logistics in overseas plants. The company employs focused differentiation because it offers high quality tabs, but at high prices. This report recommends that Samsung should employ a low cost strategy. It also recommends that it should invest in RD capabilities, in order to keep pace with the ever-changing needs, tastes and expectations of its technologically-savvy consumers in the UK. Additionally, the report recommends that Samsung should pay much focus on the UK market, just the way it does overseas. For instance, it should have its production plants in the UK and improve its infrastructure in the UK to avoid delays in delivering and distributing its Galaxy tabs. Table of Contents TOC \o "1-3" \h \z \u  HYPERLINK \l "_Toc390175487"
1.0 Introduction  PAGEREF _Toc39017 5487 \h
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2.0 External Environmental Analysis  PAGEREF _Toc390175488 \h
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2.1 PESTEL Analysis  PAGEREF _Toc390175489 \h
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2.1.1 Political factors  PAGEREF _Toc390175490 \h
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2.1.2 Economic factors  PAGEREF _Toc390175491 \h
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2.1.3 Social factors  PAGEREF _Toc390175492 \h
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2.1.4 Technological factors  PAGEREF _Toc390175493 \h
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2.1.5 Environmental factors  PAGEREF _Toc390175494 \h
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2.1.6 Legal factors  PAGEREF _Toc390175495 \h
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2.2 Porters five forces framework  PAGEREF _Toc390175496 \h
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2.2.1 Threat of new entry  PAGEREF _Toc390175497 \h
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2.2.2 Intensity of competitive Rivalry  PAGEREF _Toc390175498 \h
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2.2.3 The supply power  PAGEREF _Toc390175499 \h
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2.2.4 Bargaining Power of Buyers (customers)  PAGEREF _Toc390175500 \h
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2.2.5 Threat of Substitution  PAGEREF _Toc390175501 \h
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3.0 Value Chain Analysis  PAGEREF _Toc390175503 \h
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3.1 Primary activities  PAGEREF _Toc390175504 \h
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3.2 Support Activities  PAGEREF _Toc390175505 \h
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4.0. SWOT analysis  PAGEREF _Toc390175506 \h
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5.0. Key issues of Samsung galaxy tab  PAGEREF _Toc390175508 \h
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6.0 Portersgenericstrategies  PAGEREF _Toc390175509 \h
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7.0 Conclusion  PAGEREF _Toc390175510 \h
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8.0. Re commendations  PAGEREF _Toc390175511 \h
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References  PAGEREF _Toc390175512 \h
20 1.0 IntroductionSamsung is popular for its electronic brands in the global market. This company comes second after Apple in the tablet global market, basing on market share and shipment units (Majid, 2013). As per its culture in all of its business units, Samsung treats Galaxy tab uniquely and independently in the UK. However, there are several challenges that the company goes through in the UK market, which this report analyses. This report seeks to analyse Samsung and Samsung galaxy tab in the UK market. To begin with, it analyses the external environment of the UK, using PESTEL and Porters Five Forces models. Secondly, it uses the value chain analysis framework to analyse the internal environment of Samsung. Thirdly, it uses SWOT analysis to identify the companys strengths, opportunities, weaknesses, and threats in the UK, after analysing the external and internal environments. It then looks at the key issues surrounding the company and uses Porters generic strategies to analyse the current strategies that Nike integrates in its business operations and devise an alternative strategy to the same organization. Finally the report provides a brief conclusion and recommendations for Samsungs improved performance in the electronics industry.2.1.1 Political factorsPolitical environmental factors refers to the government policies and regulations that directly or indirectly impact business operations in a country (Sherlekar, S. and Gordon, 2010). Politically, the UK is stable. However, there are several government policies and regulations, which affect the performance of tablet products in the UK market. For instance, the country has one of the highest tax rates in the world, which ranges above 28% (Coates, 2014). This increases operational costs to foreign companies such as Samsung. However, the recent initiatives made by the UK government, which include signing bilateral agreements, deregulations, and other trade agreements with other countries is likely to make the country reconsider reducing the corporate tax rates and VAT imposed on foreign corporations. 2.1.2 Economic factorsEconomically, the UK has shown remarkable improvements since the end of the period of recession and the Euro Zone crisis (Berglof, 2011). This is affirmed by the fact that the current consumers in the UK, who easily access borrowings without difficulties and with low interest rates (Coates, 2014). In return, this has led to increased consumer spending and high living standards of the UK citizens (Krishna, 2012). Therefore, this increases the demand for Samsungs galaxy tab tabs in the UK. 2.1.3 Social factorsConsumers in the UK market exhibit a high tendency of consuming high-end products that incorporate the latest technologies (Bergloff, 2011). This implies that companies like Samsung, which offers high-end products such as galaxy tab tabs, is likely to benefit or enjoy the demand for its products. For instance, according to BBC News Business (2013), Samsung galaxy tab enjoys 10% of the UK market share. However, the changes in consumer preferences and tastes might affect the companys performance. For instance, if they opt for substitute products offered by competitors at a lower price, the performance of Samsung and its rivals, operating in the industry can be negatively affected. 2.1.4 Technological factorsMany companies in the mobile and electronics industry utilise the advancing technologies in their operations, in order to meet customers specifications. For instance, as noted by Barrow (2011) and Ranchhod (2012), companies in the industry employ technologies in designing and differentiating features of their products. Furthermore, most companies in the industry invest heavily in Research and Development (RD) projects, in order to keep pace with the ever-changing customer tastes and preferences (Barrow, 2011).2.1.5 Environmental factorsAny company operating in the UK must comply with the environmental rules and policies put forth by the UK government alongside environmental groups and agents. For instance, the UK government as well as environmental pressure groups have been on the forefront, in airing their demand for businesses to adopt eco-friendly business practices (Coates, 2014). Most companies in the mobile electronics industry have adopted and implemented the Go Green Initiatives. For instance, Samsung has made remarkable efforts to go green in its manufacture of tablet products through recycling technologies. Additionally, consumers in the UK market are highly conscious of businesses CSR policies (Coates, 2014). 2.1.6 Legal factorsDespite the recent initiatives made by the UK government, which include signing bilateral agreements, deregulations, and other trade agreements with other countries, there are specific laws that impact on business operations in the UK. For instance, the Busi ness Act 2009 outlines stringent measures and requirements that must be met by foreign firms such as Samsung before and after starting its operations in the country (BBC News Business, 2011). Additionally, the tablet market experiences many legal battles and lawsuits, related to patent rights. For instance, this is affirmed by the Samsungs Galaxy tab, which has been embroiled in lawsuits with Apple before, over patent infringement (Thakur, 2011). 2.2 Porters five forces frameworkThis framework analyses a business units industry, with the aim of establishing its level of competitiveness in the industry.  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