The Samsung Electronics Co

Published Date: 02 Nov 2017

1.0 Introduction

Samsung Electronics Co., Ltd. is a South Korean multinational electronics company headquartered in Suwon, South Korea. It’s also a subsidiary of the Samsung Group which was the world's largest technology company by revenues from 2009 to 2012. Samsung Group was founded by Lee Kun Hee in 1938 as a trading company. Samsung entered the electronics industry since 1960s and the construction and shipbuilding industries in the mid-1970s these drive its continuous growth.

Samsung Electronics has assembly plants and sales networks in 61 countries and employs around 221,000 people. Samsung Electronics has high recognition which also is the world's largest mobile phone maker by 2011 unit sales and world's second-largest semiconductor chip maker by 2011 revenues. It has been the world's largest television manufacturer since 2006 and the world's largest maker of LCD panels for eight consecutive years. It has the largest market share worldwide in memory chips with the most value added services. The company was the world's largest vendor of smart phones in 2011.

Samsung has also established a prominent position in the tablet computer market, with the release of the Android-powered Samsung Galaxy Tab. For example, Samsung mobile available in every range of android mobile for different range of users to choose the most suitable mobile based on price, functions and etc. Samsung is a business’s harness the power of the digital revolution to create ground-breaking products and services that take consumers and businesses beyond imagination. Samsung electronics comprises numerous subsidiaries and an affiliated business, most of them united under the Samsung brand, and is the largest South Korean chaebol.

2.0 Content

In Samsung Technologies, there are three issues faced by Samsung Group.

2.1 Law Issue: Patent Abuse

Based on the article released on 25 July 2012, a patent dispute between Apple and Samsung company’s table computers has brought in German court. Samsung has sued by Apple Company about the design of the Samsung Galaxy Tab 10.1N and the Galaxy Tab 7.7. This is because Apple claimed that Samsung infringed on Apple iPad’s designs and patents. Apple said that the design of the Samsung’s Galaxy Tab 7.7 looked likes Apple’s design and the Apple Company totally cannot accept it. For an example, Samsung has a 10.1 inch large screen, 16:10 version that displaying LCD images on 1200 x 800 resolution. At the same time, Apple iPad screen with a 9.7 inch and that screen is using LED backlit IPS LCD screen. Both of these tablets are offer sparking display that is really impressed users all around the world. This feature totally cannot be faulted and though the Galaxy products are tad clearer which due to higher pixel count mainly. Consequently, the Samsung Galaxy Tab 7.7 is ordered to stop selling their products in Europe. This ban issues only exist on Germany previously, however it has extend to the whole European Union.

2.2 Hardware Issue

2.2.1 ‘Sudden death’ of Samsung Galaxy S3.

One of the popular companies in South Korea is Samsung electronics. However, Samsung has been complaint by many users about the software that used in mobile smart phones. The mobile smart phone is referring to Samsung Galaxy S3. The problem that has brought out was the users are suffering from the ‘sudden death’. This is because the Galaxy S3 users complain that their phones are shuts down even though the phone battery is full charged. The users said that, the battery has full charge about seven hours but the phone is not responsive and not able to revive the phone too. For example, around 30% battery drains in a few hours. Somehow, the Galaxy S3’s battery drains surprisingly, although the phone is not in use. Moreover, the battery shows in standby mode eat more power than actually use. This is the major problem that faced by the Galaxy S3 users.

2.2.2 Overheating

The next problem that faced by Galaxy users is overheating issue. Due to the thin body with large screen, big battery and consist of powerful internal components, therefore, the longer the time the user use, the higher the overheating. Overheating problem can lead the Galaxy S3 to freeze and shut off completely.

2.3 Software Issue

As Samsung Galaxy S3 released, some software issues are raise. In Galaxy S3, the vulnerability is hackers able to tap into and wipe personal data remotely from the smart phone. This vulnerability has been discovered by Ravi Borgaonkar, a researcher, at Technical University Berlin, in the Security in Communications department. He found that the information that send to an application server and leaves it vulnerable to a breach. This issue is very serious because the information is not protected and encrypted which can easily wipe by outsiders or hackers. As long as this problem has not fix, the users of Galaxy S3 will have risk of accessing a malicious codes that would sparks a phones’ factory reset. In short, all private and confidential data will be wiped easily.

3.0 Discussion

Based on the three issues above, here are some discussed Sun Zi’s art of war theories for solving the issue faced by Samsung Electronics.

3.1 Law Issue: Patent Abuse

By using one of the theories that in the Sun Zi’s is 7 considerations. Samsung Corporation has to considerate about the troops between both sides. In this consideration, Samsung have to consider the hugeness of funding by settle this case., if this Samsung has losing the patent abuse, Samsung have to pay a lost to the Apple, beside that it can be affected consumer loyalty to Samsung products as well. Anyhow, according to what Sun Zi’s said: In 12 strategic planning, when the enemy is strong and effective, be well-prepared and ready to confront the enemy. Samsung have to be well prepared and make the possibility of the problem that will be occur, do not giving any chance to the others competitors trying to attack. Mean while, in the theories of Sun Zi’s it said: In war it is better for swift victories rather than engage in prolonged military campaigns. Samsung have continuous to come out new product faster than other competitors compared to the Apple.

3.2 Hardware Issue

For solve the overheating and "sudden death" problems in mobile phone, according to Sun Zi’s theories said: general who do not thoroughly comprehend the inherent dangers of deploying troops are unlikely to understand the advantages of using troops. Samsung Company has to try all the possibility of the product problem before launching a new product. It can help the company to gain more profit by giving a quality and not quantity product to the end consumer. Sun Zi’s theories also said that: the first person who succeeds in capturing ten chariots in a chariot batter should be rewarded. By apply this theory, any of expert who can solve the problem in a period of time given can be rewarded. These can help company to shorten the period of time to solve these hardware problems.

Besides that, Samsung need to have good planning in IT field, invest more on the technology and doing research so that only can able to solve those hardware problem easily. With both excellent technology and expert there are no problems to solve these problems.

3.3 Software Issue

By using Sun Zi’s theories said: general who do not thoroughly comprehend the inherent dangers of deploying troops are unlikely to understand the advantages of using troops. The developer software they have to fully test on their new program that they write. Software is very important in any of device, this is because software are telling the hardware how to work. The program in mobile phone won’t be functioning well if the software had error. Sun Zi’s said: it is better to go for swift victories rather than engage in prolonged military campaigns. Samsung Company have to fast response for solve this issue, this is because it is very serious because the information is not protected and encrypted which can easily wipe by outsiders or hackers. For taking too much time to solving it will cause loses of consumer, drops in sales and company image. Besides that, it may also cause consumer to sue the company.

3.4 SWOT Analysis

SWOT is the short-form of Strength, Weakness, Opportunity and Threat. By adding these four methods will brings a lot of benefits to company and more add value services to gain more competitive advantages among other competitors outside of Samsung Company.

Strength is a part that gains advantages among other competitor. Weakness is the disadvantage of the party by comparing other competitor. Opportunity is help to find out a new advantage to that party. Threat is part to explore the sector of harmful may bring to the project or company.

3.4.1 Strength

Samsung mobile has a powerful technology that meets their customer requirements which competitors will not able to copy. With the unique products, Samsung mobile can attract more customers to buy from them such as the latest model Note2 with S-Pen that can let user edit photo by writing, write down important things without use finger to touch screen. This idea is user friendliness. By this phenomenon, it also brings a lot of loyalty customers and helps to target new potential customers to increase their profits. For example, Samsung mobile will launch different features in order to target every stage of customers such as different budget customer may choose their budgeted mobile. Not only that, Samsung mobile has the high brand recognition so they are able to increase the price of products. Behind of the marketing, a powerful supply chain gain an advantage to them that get high quality from suppliers and deliver the right product in time. At last, a powerful management is very important to maximize strengths and exclude those weaknesses in order to brings benefit to company.

3.4.2 Weaknesses

Samsung mobile has high staff turnover. Many employees not really satisfied with their salary and the team management, so they decided to quit the job to find a higher salary and better working. Experienced staffs are needed to well train by using a lot of time and expenses. In this case, it may lead the company more expenses because of replace the experienced staff. An online market is indispensable to providing the up-to-date information and trading those products. By the way, Samsung mobile is too much realizing on software from other parties although Samsung is hardware conductor. To solve software problem, it might take a long time to solve it because it need to contact with the third party. In addition, the most serious disadvantage is the weak customer service may lead customer rush to competitor and the reputation rate will drop too. From the previous point said about software problem by contact the third party to solve problem, it might take a long period to respond to customers’ problems. This will gain more customers unsatisfied and loyalty customers may lose then customer will rush to competitor. At the same point, reputation of Samsung mobile will drop and lead customer stop to use their product then the sale will drop too.

3.4.3 Opportunity

Samsung was the India’s official ‘Olympic partner’ at 2012 London Olympic and launched ‘Olympic Ratna Program’. This case will increase the brand recognition and the sales rapidly growth because all people in this world will watch the London Olympic. Sometime when going to advertising part, ‘Olympic Partner’ advertisement will on show. Samsung mobile and Home appliance had planned to launch customized products to the Indian market such as some of the customers like performance than design looking. So, they will launch different features and different prices mobiles. This plan can help to raising the market share in the pastoral market. In an additional point, Indian youth population rapidly growing and expected raising mobile phone sales as the result to lesser call rates. The latest products can help Samsung mobile to attract more differences of customer base and enlarge their market range. Besides that, the powerful creativity help Samsung mobile launching more distinct product and better services that meet customer’s requirements in order to increase customer satisfaction. For example, Samsung Note 2 is the successful product because the screen size is big enough to surf internet, perfect watching movie experience and do multiple tasks at the screen at the same time.

3.4.4 Threats

India is a potential market that many foreign company starting to gain market share in India such as Haier. Besides that, China products become a threat because China products are produced in low cost and the price is cheaper than Samsung mobile. At the China, labour cost and hardware cost is very low, so can launch a cheaper price mobile. Samsung mobile has a wide variety of product lines. The failure of a product line will collide to other line and cause in brand dilution. The strong competitor like Nokia Company focused on a part only become a threat because of Samsung Company produces many segments of products and Nokia can fully focus on one segment to launch a powerful mobile. A strong competitor can lead Samsung mobile reduce their profits because it can attract customer easily with unique products. The available of substitute products will lower the Samsung mobile’s ability to increase prices because customers can attract by other products and services easily such as the HTC Butterfly is lighter that bring along anti-scratch glass than Samsung Note 2 with normal display glass. In addition, HTC charger can fully charge faster than Samsung charge. Not only that, international competitor is hard to fight because they have many competitor advantages that can take over Samsung mobile. Volatile is hard to plan which meant drag on the key investment of Samsung mobile’s business. In addition, the design and quality that competitor apply to their mobile is a powerful threat too because many customers will choose a better looking than better performance.

4.0 Recommendations

4.1 Create Own Software

Based on the SWOT analysis weakness, Samsung mobile phone product don’t have their own software, their mobile product are too much rely on other resource to complete their final product. So, the company can’t determine software whether are user friendly or not. Moreover, software have problem, they still need to wait other parties to solve it, therefore it will take long time to get done and this problem can affect their product image. To solve this problem, Samsung Company should have their own team, equipment and resource to create their own software or application. If the company doesn’t have any experience on create software, they can try to cooperate with third parties that have experience, then do research and create their own software together. After few year, they gain the experience on this, they able independent create their own software. If software has any problem they able solve it quickly without wait other parties to solve for them. On the other hand, they may cost much money to do research, analysis and create software for first few time. But after the company success on it, they will earn back profit because they have their own unique software or application to attract customer that their competitors don’t have and this is long term profit. The company also no need to share sales profit with other parties and purchase other resource for software, since the company have own team to create software.

4.2 Take Care Employee Rights

Samsung Company faces a problem which is high staff turnover rate. This happen is because their staffs are not satisfied about salary and team management conflict. So, they prefer to change their job. This problem also can affect personal staff working efficient. Staff can’t focus on their job because they think that is unfair for them because they get paid with low salary and they still need work hard. Sometimes, they have conflict with their team member or management level and they not able to voice up their problem. My suggestion is Samsung Company should pay base on their working performance. If possible the company can reward their staffs who are high working efficient. So that, the company can decrease staff turnover rate and improve staff loyalty. Staff will put more effort on their job. If not, staff may leak out the company privacy information to show their unsatisfied and earn extra income at same time. The other suggestion, company should give their low level staff a chance to voice up their problem and be fair to everyone. Company can conduct some games activities or annual dinner to get better know what problem that their staff face and also reward their staff. These suggestion on above can help to decrease the team management conflict and staffs satisfy.

4.3 Increase More Features

Samsung mobile launch different features in order to target every stage of customers but there are some features still can improve. Nowadays the Samsung Company is too focusing on take note and edits photo image features such as Galaxy Note. They should also focus on other features to meet customer other needs such as music features. That features allows user easy transfer song from computer or mobile device and easy do edit song. I believe that music features also is most customer needs because many people are love to hear music too, especially when they are boring. They also can improve phone security features such as file locker. That allows user to locker their important message, note or image easily because third parties locker software is not user friendly and hard to understand how to use it. It make customer feel unsafe when use it, they worry after locker then can’t unlock back and hard to recover password. So, Samsung Company can add this feature into their phone product. In addition, they also can add more multitasking features, easily web surfing features and so on to meet most customer needs in one product.

4.4 More Focus on Mobile Phone Product

In all Samsung electronic devices product, mobile phones products are the most many problems face by the company because they are not only produce mobile phone, so they may miss out some mistake or problem of the phone. Compare to their competitor such as Nokia, Nokia Company are only produce mobile phone product, so Nokia Company can fully focus segment to produce a powerful mobile phone. For my recommendation, Samsung Company should put more effort and focus on their mobile phone product to improve and minimize the problem. So that, Samsung mobile phone products will not beat by competitor easily.

4.5 Improve Mobile Phone Quality

Samsung mobile phone is in good quality, but still not good enough and their products are easily take over by competitor products. For example, Samsung mobile phone charge batter speed is slow, it spend lot of time to get the battery full charge. Moreover, Samsung mobile phone radiating are weak because when user run few application, the phone heat will become more faster. My recommendation is Samsung need keep improving their mobile phone quality to cover their mistake and make their customer feel more comfort. Samsung phone charger need improve to make sure customer phone battery can get full charger in few hours. Samsung still need improve screen anti-scratch glass to make sure the screen is hard enough, so that customer no need really worry when the phone fall on the flow and specially take care of their phone. So, Samsung company need keeping improves the phone quality to maintain their customer loyalty.

5.0 Conclusion

In conclusion, based on the three issues faced by Samsung Electronics, and the Sun Zi’s art of war theories solving, we had learnt to be more understanding about the important of Sun Zi’s art of war theories. For example, Samsung Electronics’ business application was the core concept of speed. Samsung Electronics selling their SPEED concept by using the shorten time to finish a Product Life-Cycle. This is because Samsung Electronics follows the trend with continuous come out new product faster than other competitors compared. Samsung Electronics have enough market research to keep up-to-date what consumers require and produce the product every trend. Samsung Electronics developed every range of products with several functions, to meet up different categories range of consumers. This concept proves that Samsung Electronics had gone through with market research to focus on every range of consumers. With this concept, Samsung Electronics gains a very strong competitive advantage with fulfil every level of consumers need which also called contingency plan. That is why Samsung Electronics has high innovation and creative to compete with their competitors. On the other hands, Samsung Electronics comes out the strength with meet customers’ requirement with high brand recognition and overcome the weaknesses with the opportunities and threats in cooperate with partnerships. Samsung Electronics cooperate with direct and indirect forces partnerships, to create the strategies to combine the forces to create winning strategies. Yet with the combinations, it gives rise to an endless series of manoeuvres. Although competition have win and lose since this is the law of nature. If lose, prepare and wait for the next opportunity. If win, prepare for the next competition for better result. This is how Samsung Electronics analyzes their strength and weaknesses all the time to be well prepared always to compete with other competitors. Lastly, Samsung Electronics can go with the recommendations discussed, create new own uniqueness software without relying on hardware with use their resources widely and also rewards employees who have high contribution based on performance and fulfil employees job satisfaction to satisfy employees to gain their loyalty. Besides, Samsung Electronics can focus more on mobile phone product with improve mobile phone quality and increase more features to gain their core value in the market.

6.0 Appendixes

6.1 Samsung Logos

The Samsung Byeolpyo noodles logo, used from late 1938 until replaced in 1958.

The Samsung Group logo, used from late 1969 until replaced in 1979.

The Samsung Group logo ("three stars"), used from late 1980 until replaced in 1992.

The Samsung Electronics logo, used from late 1980 until replaced in 1992.

Samsung's current logo, in use since 1993.

6.2 Harvard References:

6.2.1 Internet Gateway

Samsung Electronics Co., Ltd., 1969. Samsung Electronics. Available from: <http://en.wikipedia.org/wiki/Samsung_Electronics> [19 January 2013]

Charlene Cooper, 2012, Samsung Galaxy Tab 7.7 Banned in Europe in Apple Patent Lawsuit. Available from: <http://www.jobsnhire.com/articles/2577/ 20120725/samsung-galaxy-tab-7-banned-europe-apple.htm> [20 January 2013]

Siddartha Thota, 2011, Samsung Galaxy Tab 10.1 vs iPad 2 : Galaxy Tab all the way. Available from: <http://www.gadgetcage.com/samsung-galaxy-10-vs-ipad-2/14024/> [20 January 2013]

Rohit KVN, 2012, Samsung Galaxy S3 Suffers ‘Sudden Death’ Issue; Is Faulty Mainboard Responsible?. Available from: <http://www.ibtimes.co.in/articles/ 417792/20121222/samsung-galaxy-s3.htm> [21 January 2013]

Simon Hill, 2012, Galaxy S3 problems: What users complain about the most. Available from: <http://www.digitaltrends.com/mobile/galaxy-s3-problems-what-users-complain-about-the-most/> [21 January 2013]

Mary Elaine Ramos, 2012, Top 3 Issues and Problems in Samsung Galaxy S3. Available from: <http://au.ibtimes.com/articles/360123/20120706/samsung-galaxy-s3.htm#.UP6aL SdtiUg> [21 January 2013]

Kristin Bent, 2012, Samsung Issues Software Update For Galaxy S III Vulnerability. Available from: <http://www.crn.com/news/security/240008023/ samsung-issues-software-update-for-galaxy-s-iii-vulnerability.htm> [22 January 2013]

http://en.wikipedia.org, 2003, SWOT analysis. Available from: <http://en.wiki pedia.org/wiki/ SWOT_analysis> [25 January 2013]

wikiwealth.com, 2012, Technology (Samsung mobile). Available from: <http:// www.wikiwealth.com/swot-strength:samsung-mobile:technology> [26 January 2013]

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wikiwealth.com, 2012, Supply Chain (Samsung mobile). Available from: <http://www.wikiwealth.com/swot-strength:samsung-mobile:supply-chain> [26 January 2013]

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wikiwealth.com, 2012, New Products (Samsung mobile). Available from: <http://www.wikiwealth.com/swot-opportunity:samsung-mobile:new-products> [28 January 2013]

wikiwealth.com, 2012, Innovation (Samsung mobile). Available from: <http://www.wikiwealth.com/swot-opportunity:samsung-mobile:innovation> [28 January 2013]

wikiwealth.com, 2012, New Technology (Samsung mobile). Available from: <http://www.wikiwealth.com/swot-opportunity:samsung-mobile:new-technology> [28 January 2013]

wikiwealth.com, 2012, New Services (Samsung mobile). Available from: <http://www.wikiwealth.com/swot-opportunity:samsung-mobile:new-services> [28 January 2013]

wikiwealth.com, 2012, Intense Competition (Samsung mobile). Available from: <http://www.wikiwealth.com/swot-threat:samsung-mobile:intense-competition> [29 January 2013]

wikiwealth.com, 2012, Intense Competition (Samsung mobile). Available from: <http://www.wikiwealth.com/swot-threat:samsung-mobile:substitute-products> [29 January 2013]

wikiwealth.com, 2012, Intl Competition (Samsung mobile). Available from: <http://www.wikiwealth.com/swot-threat:samsung-mobile:intl-competition> [29 January 2013]

wikiwealth.com, 2012, Mature Markets (Samsung mobile). Available from: <http://www.wikiwealth.com/swot-threat:samsung-mobile:mature-markets> [29 January 2013]

wikiwealth.com, 2012, Volatile Revenue (Samsung mobile). Available from: <http://www.wikiwealth.com/swot-threat:samsung-mobile:volatile-revenue> [29 January 2013]

6.2.2 Book Reference

UBMM1011 SUN ZI’S ART OF WAR AND BUSINESS STRATEGIES’s note