Samsung Electronics (Mother Company of the Samsung Group) is one of the largest electronics and appliances company across the globe. Its brand is so diverse that it is now a household name. This is attributable to its products such as mobile phones, television sets, refrigerators, air conditioners, laptops, cameras, DVD players, home theatre systems, micro waves, and vacuum cleaners. They have also diversified into a niche market where they became the sole supplier of a combustor module for the world’s largest passenger airline.

In the year 2007, annual sales exceeded the $100 billion mark in its history. The company dedicated 2,1 trillion to biopharmaceuticals in the year 2010. The peak of its achievements was seen in early 2012 when Samsung officially became the market leader in the provision of mobile telephones beating the original market leader Nokia in terms of units sold. Evidently, growth and success has been in the company’s profile in the last five years.

Value Innovation Strategy as Developed by Samsung

Samsung’s innovation has been based on a number of strategies. However, it strongly leans towards the value innovation strategy, which focuses on the addition of value to a product in terms of either improving on its performance, durability, physical appearance or diversification in the available features. Addressing value places the buyer at the centre of strategizing as opposed to the competitors. Since, they have been able to improve their products from the original simple appliances or electronics to more complex ones assisted with the change of technology and customer/market demands as well as expectations.

While making these improved changes, Samsung still has to consider several factors so as to sustain the current market and at the same time attract new customers. To satisfy the needs of customers in the different markets, it has to consider the marketing mix that is: the product itself, pricing of the product, how to promote which product, how to package the product, who is the target market for which product and where a certain product will sell best.

Most importantly, a company will look into satisfying its target market

The “consumer is always right” and with the change in customer needs and demands, implementation of product innovation is essential if the doors of the company are to remain open. Consumers will purchase electronics that will ease and reduce their manual work, look good to the eye and perform as required. Samsung has to foresee all these requirements in order to gain a competitive edge. As a result, Samsung has invested in research work that looks into the consumer needs long before technological considerations are put in place.

To beat its competitors, Samsung has kept reviewing its pricing strategy against the relevant product. The more complex and latest technology is in the market, the more expensive is the product. Consumers are more willing to pay the price for a good product and Samsung seized this opportunity. The prices are relatively affordable in comparison to its competitors for a product with the same features.

Samsung products have been improved to suit the different target markets

Diversity has been their strong hold. It is a ‘one stop shop’ for household appliances. They have Samsung dealers who purely stock Samsung products. Despite their functionality, Samsung has dedicated their resources to making sleek looking products, a product that can immediately catch the eye of the customer. In regards to a product category like the mobile phones, there are various subsets that give every consumer their requirements in terms of physical appearance, performance and durability. For example, the Samsung Galaxy Tab 2 7.0 P3 110 and the Galaxy Tab 2 7.0 P3 100 only differ in the features, but look exactly the same on physical appearance.

When it comes to advertising and promotions, Samsung has invested heavily in ensuring that their products are known to the masses. In the effort to advertise their products, Samsung electronics has sponsored various sports including the English Premier League. It is at these events that consumers get to relate to the brand and the company obtains the chance of keeping the brand in their minds/memory. In case the consumer thinks of buying an electronic, the first brand that comes to their minds would be Samsung due to the frequent exposure and remembrance. Consumers get to know of any appliance in store even before it is released to the market. They also give the pricing of the product such that by the time they release it, customers are able to save for it. They communicate by advertising through social sites like Facebook and Twitter. Consumers can post their comments or complaints on these sites. As a result, the company is able to address these concerns as fast as possible. In reverse, these social sites are used by the company to showcase its various products. With the growing use of the Internet as a way of interacting, Samsung has explored this and through their website, provided the relevant information on everything concerning them.

Positioning and place in the market has been put in place depending on the plan to reach the target market. Although there are specific dealers and outlets, the company’s products are also carried by retail outlets such as supermarkets and retail shops. This has helped to reach out to the mass markets all over as accessing the products is easy and fast. Consumers are also taught how to use the appliances where the innovation introduced is somehow complicated.

Diffusion Innovation Theory by Samsung

Diffusion of innovations is a theory that addresses how cultures relate to new ideas and technology. It covers how an innovation is communicated to members in certain social systems. Advertising, considerations of beliefs are also considered. For example, they will not advertise heating a sausage as some communities do not eat them as it would be considered offensive.


This theory is best applicable based on the mass global market they supply to and the success in sales from all over the globe, which proves that the method of communicating used by the organization for the different cultures has been effective. The main objective would be to sell acceptably across the globe.

Implications of Value Innovation Strategy on Growth

With value innovation, a company is able to put the consumer at the centre of the strategies involved. The customers’ needs and demands provide for the value to be added on the product. As a result, the target market has expanded, which in turn has increased the number of sales. Due to this, Samsung has become the market leader in the provision of mobile phones in the year 2012.Samsung increased its annual sales to over $100 billion in the year 2007 for the first time in its history proving its growth in the market.

Value innovation has enabled the company to provide for the lower, middle class and upper class customers thus enabling them to expand their target market. For value innovation, it is not about a new product, but an improved product to suit the different markets. It has been able to sell its products across the globe without rejection anywhere. Its ability to expand is rarely unmatched.

Their expansion of the company has enabled it to approach new markets in a more readily acceptable way. For example, in the year 2012, they acquired a storage software vendor in Santa Clara. In the year 2011, Samsung and Sony had a joint venture where Samsung bought the liquid crystal display (LCD) making Sony’s market its potential market. 

Sustainability of Success for the Organization

Samsung Electronics has been able to sustain success across the years due to its investment in research, which enables the company to identify what the consumers need and thus act as a compass for which the company’s direction is focused. Not only has the company looked into functionality of their products, but also into the physical appearance. The company also believes that the first step to making a sell is to attract the customer and there is no better way to do this than to make the product appealing to the eye.

Diversity of their products also gives a competitive edge. Samsung, being a household name, ensures that the brand is recognizable by everyone. This has made it Asia’s most valuable technology company and one of the worlds’ most known brands. 

Prospects for the Future

Samsung Electronics is still looking at bettering its products and giving back to the community. It plans to convert its Austin chip manufacturing plant to a more profitable chip. This project commences early this year and its launch is due at the end of the year.

SWOT Analysis of Samsung Electronics

A SWOT analysis, which looks at the company’s strengths, opportunities, weaknesses and threats, will identify factors affecting the company’s success/failure. The internal factors relate to the strengths and weaknesses while the external factors reflect on the opportunities and threats.

Samsung’s diversification of products acts a competitive edge due to the fact that it has made the brand a household name. Consumers may not use all their products in the home, but will at least opt for few electronics with the brand depending on necessity. Their sleek products are also a source of strength as they are able to catch the consumers’ eye as compared to other brands.

The company has been accused of imitating Apples Company’s features of their products, which has led to law suits. In the year 2012, a court ruling led to the drop of Samsung shares in the market. Hence this is a threat; although, the act of imitating is a weakness.

Opportunities as seen by the company include the ability to attract new markets and venture into the production of more products. Serving a mass market, Samsung can venture into all countries and introduce new products into already existing markets as a way of increasing sales and expansion.

Threats that the company faces are: competition and the possibility of new entrants into the market. Competitors include Life’s Good electronics, Philips and Sony. Apple Company has been suing Samsung over a number of accusations leading to a drop in the company’s performance or slowing down of one procedure or another.

Application of Strategic Management and Planning

Samsung Electronics often ask its customers to return the used products to the dealers for recycling. As a result, the company is able to identify any arising problems with their products. Resources are recycled leading to a cheaper means of production, which eventually reflects on the profitability of the company. Since technology can be short-lived, it is important to be able to reacquire certain products to help produce the new products, which have been added value to suit the new market demands.

Planning helps foresee what is required at which point and for which target market. It also helps in working with the provided budget, thus providing consumers with affordable gadgets, while at the same time meeting their expectations.

Ethics and Sustainability on Organization Innovation Strategy and Execution

Every company works with a given code of ethics. It is, therefore, necessary to ensure that everyone follows them. In case of a failure, punishment is given as provided by the company policy. Being able to maintain the customer satisfaction in any market will involve constantly improving of the products so as to ensure the target markets are satisfied. The company should deliver more than what they promised as this ensures satisfied clients.While giving back to the society, Samsung has sponsored the on-going English Premier League.

During the football matches, they are also able to advertise to all football fans. In the year 2012, September, Samsung declared that it will examine its Chinese suppliers for any violation of labor policies. Children under the age of 16 should not be used in the provision of labor in any of their suppliers’ factories. This ensures that child labor is eradicated. Thus, the company’s relationship with the society is upheld.


Samsung Electronics is a company that has attained successes not only in the Asian markets, but also in the global market. Its products have been widely accepted. It has successfully implemented its strategies to maximize on profits and minimize on costs. It is evident that use of technology is on the rise and any appliance that can make work easier is always on demand. Samsung has ensured that the society does not have to tire by availing such products as mobile phones, vacuum cleaners, microwaves, fridges and fancy television sets and at an affordable price. In conclusion,Samsung has done well in their innovations since it has managed to capture and secure a big market.


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