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Edwards 1

Samsung: Global Marketing Plan Part 1
Markis’ Edwards
BUS 622
Dr. 
Lorraine Cigainero

March 15, 2021

Abstract

Corporate organization adapt to remain competitive within the market, the advancement in technology, effects of globalization, and population have made several companies expand their operations to mature marketplaces while other have chosen to do so with internal markets. This document reviews Samsung’s internal environment and identifies a country where it can expand its operations based on the identified factors.

Executive Summary

 There are various strategies that corporate organizations adapt to remain competitive and to thrive in the market. The advancement in technology, effects of globalization, and population have forced many companies to expand their operations to mature marketplaces while others have expanded their operations to international markets. According to the last Forbes news, companies that open their needs where their opponents have not opened have more significant power. Through global expansion, a company can make its brand awareness durable before its competitors do. The global expansion also creates the firm’s image and builds an excellent reputation for future operations worldwide (Anwar, 2017).

Samsung: Global Marketing Plan

There are reports that companies with more global outlets control a large customer base and are also well established in the market. In the United States, top companies with robust brand loyalty and enormous profit, such as Apple, Samsung, Netflix, PayPal, etc., are globally known for their vigorous branches. The process of global expansion also involves analyzing environmental factors such as political, economic, social, technological, and legislative factors of a company (Keegan & Green, 2020). This paper will analyze Samsung’s internal environment and identify a country where it can expand its operations based on the identified factors.

Background information about Samsung

Samsung is one of the leading electronic companies globally. It is located in South Korea. Samsung products include memory chips, digital media devices, appliances, semiconductors, and integrated systems. Samsung has been in existence for over 80 years, and currently, it controls over $4 billion net worth with over 2000 display centers in over 400 countries. According to the company’s previous report, over 80 of its profit is obtained from overseas countries, with the U.S., Russia, U.K., China, Germany, and France being its primary target market (Gumparthi & Deb, 2019). However, the company has also expanded in Africa, and Australia and today, the company’s brand is prevalent in all continents. Samsung contributes to over 50% of South Korean export. Besides, Samsung contributes to over 20% of South Korea GDP. Samsung currently has more than 5000 workers; Samsung has received several international awards, including the best company in empowering employees and a center of excellence for quality customer services. Samsung has appeared in the Forbes list and Fortune 500 companies since 2010 (Gumparthi & Deb, 2019). The main competitors of Samsung Company are Amazon, Apple, Hot Point, Techno, Huawei, Sony, L.G., and Dell. Samsung had led the electronic market with its superior products for many years until later, when Apple emerged. The company is taking plight in its brand recognition and its brand loyalty globally.

Environmental analysis

Economic factors

The economic factors that determine the company’s hiring ability include the employment rate, level of income, and educational level—the higher the unemployment rate, the lower the bargaining power of employees (Keegan & Green, 2020). Employees obtained in areas with high unemployment rates tend to accept a lower salary. However, these employees are less competent, and they are also expensive in terms of the process and resources needed to train and equip them with the skills necessary for the job. This is because these employees have low education levels, and their income level is relatively poor (Haizar et al., 2020). Samsung usually expands its operations to high literacy levels, high income, and low unemployment rates. Since Samsung products are relatively high, they target middle and high-class customers. Samsung attracts customers in developed and developing countries globally. The economy of these countries allows customers to buy rather expensive products. Also, the operation of Samsung products requires a medium or high literacy level. Therefore, the company usually prefers expanding its operations to countries with high education and stable income.

Socio-cultural factors

Cultural factors such as workplace diversity and religion affect the global expansion of Samsung products. These factors also affect the hiring method of the company. For instance, in Japan, women are still considered not fit to be leaders (Keegan & Green, 2020). The role of women is undermined in many countries globally. Over the past ten years, Samsung only hires youth adults who are energetic, innovative, and flexible. The company believes that young adults are more productive than aged people. The company also believes that young adults are flexible and can change to the changing priorities than adults. Another cultural factor associated with the company is the effect of religion. In Islamic countries, especially in the Middle East, the company enjoys much support and customer loyalty in Christian regions (Haizar et al., 2020). These factors influence the company’s move to ensure cultural diversity in terms of age, religion, gender, or race. Technology is another cultural aspect that Samsung considers when it wants to expand to a country. Countries with innovative, literate, and technologically informed people tend to be the target market for Samsung.

Political, legal and regulatory

The process of obtaining a permit to operate in some countries may be complicated than in some countries. Some countries have strict trade policies that affect trade. Other countries pose high taxes to foreign investors, thereby undermining their ability to engage in business effectively. Other challenges such as political instability caused by civil war and terrorism jeopardize its ability to expand to some countries (Wulff et al., 2019). For instance, Middle East is highly characterized by civil war and terror attacks, including some African countries such as Syria, Myanmar, Iraq, Afghanistan, South Sudan, Ethiopia, and Somalia. These countries experience constant war, which poses serious threats to economic growth, and this undermines trade. Also, corruption is a significant issue that affects commerce globally. There are countries with extreme cases of corruption. Corruption affects business because it violates the ethical principles as well as core values of Samsung. Samsung tends to avoid countries with t5hese challenges.

Trade

Countries that are trading partners of South Korea are given priority during the expansion process. Trading unions as European Union provides a better platform to expand its operations because it engages in free trade, thereby eliminating the effects of taxation and harsh government regulations (Wulff et al., 2019). Over a third of Samsung branches are found in the countries which are trade partners of South Korea.

Nigeria

Nigeria is one of the fast-growing countries in Africa. It has the highest population in Africa currently with a low unemployment rate. The highest population in Nigeria is youths. Nigeria is one of the technologically advanced countries. Besides, Nigeria’s literacy level is above average, making it a better area for expanding Samsung operations.

General Strategies

Demographic factors

Nigeria has the highest population in Africa. The highest population is youths. Since youths for a significant market share for Samsung products, Nigeria can offer more opportunities. The population of Nigeria is evenly distributed throughout the country. A third of the population is found in the urban areas while the rest live in the rural population. The high population of youths contributes to the rapid economic growth of the country. Nigeria is the most suitable country for expansion because currently, there no giant electronic companies such as Amazon or Apple that have expanded in the region (Agwu, 2018). This implies that when Samsung expands o Nigeria, there will be limited competition.

Economic factors

Nigeria is a fast-growing country in Africa. The country’s economy relies on its immense population growth, low unemployment rate, high education rate, and high-income rate. The current unemployment rate in Nigeria stands at 23%. This is considered one of Africa’s best unemployment rates since some countries have as much as 40% unemployment rate. Over 60% of Nigerian youths are active in social media and are using smartphones, computers, and tablets. These are opportunities that make Nigeria suitable for expansion.

Socio-cultural factors

Nigeria loves a lavish lifestyle, and they are very fashionable. They are flexible to changing priorities and are very peaceful people. Nigeria has produced global women leaders. This shows that it is a country that gives equal opportunity to both women and men in employment, politics, and education. The previous report indicated that over 60% of the Nigerian youth population is active on social media platforms. This shows that when Samsung enters the Nigerian market, it will attract all the youth population.

Political, legal, and legislative factors

Nigeria is one of the most peaceful countries in Africa. The rate of corruption in Nigeria has also significantly reduced Nigeria over the past decades. The government of Nigeria allows foreign investors to invest in Nigeria at a low cost. The tax regulation is low. This attracts international traders to expand their operations in Nigeria. The employment laws do not capture minimum wage, thereby allowing employees and employers to enter bargaining power with employees regarding salary and wages. This will help Samsung set and control employee wages and decide on the best compensating employees.

Trade factors

Nigeria is one of the closest trading partners of Arab countries. Nigeria has partnered with some Arab countries, including Japan, China, and Russia, in business before. Nigeria exports most of its oil to China and Japan. The excellent relationship with other Arab Countries allows the South Korean government to trust Nigeria and consider it suitable for the expansion process.

Conclusion

Based on the critical analysis of Samsung’s global environment, Nigeria is the most suitable country to consider for expansion. This is because Nigeria’s general strategy aligns with the environmental factors determining regions that Samsung believes for future growth. Nigeria has a technologically advanced population, high literacy level, stable economy and politics, high youth population, high-income rate, low unemployment rate, and expensive lifestyle. These characteristics align with the features of Samsung’s target market.

References

Agwu, P. E. (2018). Analysis of the impact of strategic management on the business performance of SMEs in Nigeria. Academy of Strategic Management, 17(1).
Anwar, S. T. (2017). Alibaba: Entrepreneurial growth and global expansion in B2B/B2C ma Pickering, S. Y. (2016).
Effiom, L., & Edet, S. E. (2018). Success of small and medium enterprises in Nigeria: Do environmental factors matter. Journal of Economics and sustainable Development, 9(4), 117-127.
Gumparthi, V. P., & Deb, M. (2019). Branding Dilemma and Global Expansion: The Case of Caliber Technologies. South Asian Journal of Management, 26(3), 162-183.
Haizar, N. F. B. M., Kee, D. M. H., Chong, L. M., & Chong, J. H. (2020). The impact of innovation strategy on organizational success: A study of Samsung. Asia Pacific Journal of Management and Education, 3(2), 93-104.
Keegan, W. J., & Green, M. C. (2020). 
Global marketing (10th ed.). Retrieved from https://www.vitalsource.com 
Wulff, E., Kee, D.M.H., Halttunen, E., Kara, H. and Pakarinen, N., 2019. An Analysis on How Samsung Can Improve Their Environmental Work by Adding New Ecological Transportation Method of Goods. Asia Pacific Journal of Management and Education, 2(3), pp.55-66.