Answer to Question #214282 in Management for Ashneel

Question

1.    Discuss the types of cooperative strategies undertaken by Samsung Electronics Co. What is the company’s rationale behind employing these types of strategies? 

(5 marks)

 

2.    Discuss how Samsung’s acquisitions contributed to maintaining the company’s strategic intent and achieving competitiveness.   

(5 marks)

 

 

 

3.    Describe three modes of international market entry that allowed Samsung to expand globally. Use examples from the case study.    

Answer 1

Question 1

1. Global strategy, the company, uses international integration to increase its capacity, cost efficiencies, and labor competencies. Samsung Electronics uses this strategy by developing manufacturing centers in strategic places globally and use the competencies of local labor, skills, and market for growth.

2. Partnership strategy, the company has succeeded in using the partnership strategy to build capacity with other players in the market, such as Microsoft. This strategy was aimed to promote business desire, enhance digital technology and provide professionals with an opportunity to operate from anywhere. 

Question 2

Samsung’s acquisition is one of the most excellent strategies used by the company to increase its supply chain capabilities across the globe. The company has acquired many organizations to expand its capacity in terms of production and marketing. Acquiring local organizations enables the company to create its presence locally and use its competencies to expand its presence and increase its competitive advantage. The acquisitions also enabled the company to achieve its diversification strategy by acquiring organizations dealing with different products and markets. 

Question 3

Export

Export is an entry mode used by the company to enter into new markets; it is a low-risk mode of entry, especially in countries with low per capita income and issues of political instability. For example, Samsung is using the export mode to enter most of the markets in Africa.

Joint Venture (JV)

JV is one of the leading modes of entry that has allowed the company to expand globally. It has used the mode to partner with Sony and other companies that operate on similar platforms and competencies use the opportunity to exploit the global market.

Direct investment

Samsung has successfully entered the global market through foreign direct investment, such as in China. The mode increased company’s production and marketing capacity globally.