Samsung_International Business

[International Business] [SamSung Case Report] [10th December 2011] [SamSung Company] ( Name) Contents Contents 1.Introduction 2.Reasons for Internationalization .3 3.Trade theories 3.1International Product Lifecycle 4.External environment analysis 4.1Economic environment .6 4.2Legal and political environment 5.Cultural elements 5.1Distinguish the differences between Hall’s high and low context cultural 5.2Application for Samsung when operating in Singapore market 6.Market entry strategies 7.International staffing 8.International marketing Introduction Samsung Corporation by Lee Byung-Chul founded in 1953, is one of the largest trading corporations of Korea He is now chairman Lee Kun-hee In 1969, Samsung Electronics was established in Daegu - Korea, is one of the largest unit of Samsung Group Distillation operations in 58 countries and has about 208,000 workers Samsung Electronics are considered a no.10 of trademark in the world's best From 2000 until now, Samsung is the leader in business digital erae that bring about change and both the revolutionary opportunities for global business with these advanced technologies, competitive products innovation uncontinuously Samsung Corporation business in many areas of the global market including products such as business where she was communications equipment to digital; semiconductor business; the player products; LCD business; insurance for real estate and finance sector With a strategic vision of Samsung Electronics is "leading the revolution in digital convergence," giant Samsung are using technology and modern techniques to conquer the consumer and build the global luxury brands the sentence All members of the group strive to expand production and business activities to enhance brand value in each country in which Samsung Samsung present In five years, Samsung Electronics Company has business effectively and gain more profits Reasons for Internationalization Starting from the goal of becoming multinational corporations leading the world, Samsung does not just stop at the Korean domestic market but also plans to expand business operations, infiltration into the potential market for reach the scarce resources or cheaper than when only using domestic resources When investing in the Singapore market, a market with stable politics, strong economic growth, Samsung corporations can take advantage of the advantage of a source country highly qualified workers, and meets the international standard Diversify the investment portfolio and water always helps companies reduce risk and uncertainty when investing in a country only So this is also one of the reasons that companies always aim to expand business abroad Expand investments to help organizations avoid the trade barriers and reach the investment incentive from the signing of bilateral agreements between governments and multilateral countries Singapore committed to expanding free trade, to befriend all countries in the World Trade organization under MFN status, the tariff quotas, people were also removed, creating all conditions for matter exchange trading, foreign currency revenue growth in the country Find that the advantages of available measurements, Samsung Electronics also boosts investment in Singapore and is increasingly confirmed that Singapore is a point strategic of investment in the future 3 Trade theories 3.1 International Product Lifecycle At the entry period, with the invention and the invention of electronic ngang such as personal computers, automobiles, microprocessor chips, telephone and other American companies Microsoft, IBM, General Mertor was quickly quickly "explore" and dominate the entire market new electronic world The market is still relatively intact at the demand for consumer electronic goods to be modest in part because it is so new, the rest is due to expensive prices Come to the growth period, foror the stimulus, these companies have made campaign fanfare and increasingly invented many useful electronic products So in electronics demand started to increase Understanding this trend, the Japanese company started production cuoc.Chien and business strategy in a "supermarket" in which a company involved in all areas of activity have brought many efficiency during the economic boom from 1960 to 1990 Japanese electronics rapid global leader in quality, the U.S electronics industry so as "defeated" Japanese consumers and the world rushed to buy Japanese goods, Japan's trade surplus rising, rising trade tensions Tokyo became the capital of the consumer electronics world Next is the saturation period: Japanese electronics company to develop a strong day, they are proud of the caliber and reputation of their more profitable Many companies that have 500 branches operating in all areas, from travel to hotels and restaurants, local companies selling mobile phones And the electronic market began to become saturated And in the downturn period, all these things will continue if the company accepts profit unimpressive The global economic downturn is to reveal the internal problems of the industry The demand for electronic goods declined Stronger yen makes exports fall, yen rise 67% over the same table in the last year and up 75% against the Korean won Japanese export goods thus become more expensive, reducing profits Samsung and LG of South Korea is affirmed its position in the provision of television and electronic products to market tuoong And now Samsung's Korean corporations come together with the most powerful electronics such as: Sony, Motorola, Microsoft 3.2 Global strategic rivalry Understand the importance of rivalry’s impacts during the penetration period into new markets, while expanding their business to Singapore market, Samsung has invested a large capital for the study of the elements that related to the rivalry as well as competitors in the electronics field in Singapore According to Interbrand and BusinessWeek magazine 2, the total value of the Samsung brand is ranked 43 among global corporations in 2005 Currently, Samsung has 16 outstanding products on world markets In terms of computer manufacturing, Samsung is still behind other Japanese rivals, especially Sony, or Apple, IBM of American In term of mobilephone manufacturing sector, Samsung just stands after Nokia-Finland in rank of manufacturers in the world Samsung products are now ubiquitous and Samsung is ranked at no 21 in list of the world's leading brands, according to the consulting firm Interbrand As the electronic market has too many companies that manufacture and sale of electronic products, in addition to winning the competition, Samsung also always defend against potential competitors Competitors include small companies are encroaching into the electronics, or the only companies that manufacture or trade in certain products specified For electronic field production, Singapore market is the number of suppliers of equipment, spare parts and materials are relatively large, Samsung itself is one of the suppliers to corporations, business operating in the technology sector So Samsung is not difficult to find suppliers besides yourself and have conducted cooperation with strategic alliances From the supply of raw material inputs to the production process if possible reduce the load also helps companies save the costs Samsung Vina made to improve the supply chain: • Using strategic partners • Data sharing • Priority customer • Outsourcing as needed Customers is a competitive pressure can directly affect the entire business operations of the industry In 2005, Samsung has shifted to serving high-end customers The strong development of science and technology, customers demand high quality products Research and product innovation is an important step to success today by Samsung Electronics The powerful R & D team of Samsung included 13.000 scientists and engineers in 63 countries, has created breakthrough caliber create processors with the fastest speed and mobile CDMA micro But , in fact the product of Samsung encountered many difficulties when almost all businesses in the consumer electronics industry products and services are likely to replace the Samsung products such as Sony, LG, Canon , Panasonic External environment analysis 4.1 Economic environment Singapore is one country with rapid GDP growth and stability in the region Investors always evaluated Singapore as ideal investment destination Because the impact of the global economic crisis, but GDP growth remains high compared to countries in the region Although in terms of the global financial crisis, GDP growth rates of most countries in the region dropped significantly, but the review of the economic experts of the International Monetary Fund IMF, Singapore remains one of the countries which hve highest economic growth in Asia Stable economic development opportunities for foreign investors such as Samsung to continue to expand manufacturing operations in Singapore Singapore is implementing monetary policy which are flexibly and efficiently, contributed to the psychological comfort for foreign companies that are investing in the Singapore market Singapore Government has responded promptly, using synchronized and aggressive about monetary policy tightening to contain inflation and effective macro-economic stability 4.2 Legal and political environment Among 11 countries of Southeast Asia, Singapore is regarded as a country with a favorable investment environment in most aspects of political stability and social development This provides an advantage in attracting foreign investors to invest in market Singapore.However, Singapore's legal system has not really improved, administrative procedures are cumbersome created certain obstacles for foreign investors but to assert that, in recent years, the Singapore government is trying to improve the investment environment Enterprise Law, Investment Law in turn was amended in 2005 has contributed to creating a legal framework to support foreign companies, the procedures for business licensing procedures of investment management as well as other administrative procedures have been simplified step by step 5 Cultural elements 5.1 Distinguish the differences between Hall’s high and low context cultural Edward T Hall, a famous anthropologist with the concept of "high-context culture" and "lowcontext culture." The two terms are applied in cross-cultural research as distinct from nature dense, heavily dependent on context than flexible, no or very little depending on the context of a culture of The first way is called "low-context cultures" means those cultures use language primarily to express ideas more clearly, as well as logic For people who communicate using this method, the meaning of words lies in the word is spoken In contrast, "high-context cultures" are cultures view language as a way of maintaining harmony and not confuse others by speaking directly, for example, the U.S and Canada attaches importance to speak up and show seemed impatient with the meandering speech In contrast, the Japanese, Koreans preferred model "highcontext" Because in this culture, the preservation of peace which are highly valued and will sign the said communication line, which are considered a threat to the people fairly Hall also said that the group communication context styles of communication is high profit, by a series of gestures, attitudes, ground reference between them, based on mutual agreement understood in the context of communication 5.2 Application for Samsung when operating in Singapore market Language barriers to service the advertising, the company name, product name has become one of the major difficulties that Samsung will face in the process involved in international trade, especially when entering a South East Asian markets like Singapore Although the life style and perception of Singapore not too traditional as some other Southeast Asian countries like Vietnam, Indonesia or some Asian countries, notably China, but because this was the first country affected direction by oriental culture, so the behavior, how to speak and communicate the message should be more intentional about the context and the shoulder side, strata of society The best way to overcome this barrier, but Samsung has done is to find managers who understand the language and customs of the country With these different countries, the customs, practices, habits, values and value of social expectations will vary It creates barriers to international trade and occasionally frustrate the campaign of all the market penetration And the younger generation of Singapore has always been knowledge of customers prefer the new technology Therefore, the Singapore market is always a market of electronics and high technology attractive for manufacturers such as Samsung Market entry strategies In 1996, Samsung has selected a joint venture to market entry modes at Singapore SAMSUNG is a joint venture between TIE JSC and Samsung electronics Coporation After years of striving, constant efforts to bring consumers high quality products and positive contribution to the community, Samsung has become one of the trusted brands and best-loved of the domestic consumption SAMSUNG has always maintained its top position on the LCD TV market, flat TV, computer monitor and keep the second position in the market for mobile products Thanks to this alliance that Samsung Group can exploit the advantage of Singapore's market is high qualified labors, political stability, the economy is growing rapidly, positioned between the East South Asia Besides, can increase profitability, expand the group, sharing risks and costs to the TIE in the business This is a secure way and bring in more profit for the Samsung Group International staffing Samsung Singapore’s leadership is well aware of the importance of human resources for sustainable development of the Group So the company has committed to building a company Samsung bar top favorite, where employees are satisfied with the working environment, excellent benefits and opportunities advancing Team of Samsung associates are young people, have the capacity, knowledge and the high spirit, always unite to complete the overall objective of the company, Samsung build luxury brands to become for consumers In addition, Samsung also has an exchange program engineers and technicians abroad to improve their skills and improve knowledge in the area Because the policy in human is the main focus of the development, staff of Samsung was very attached to companies, many of them have worked closely with Samsung since the first day of up The company's goal is to create a professional working environment and humanity in which all employees are happy, passionate work, continuously creative, loving each other and live with responsibility for themselves, their families, companies and society International marketing 8.1 Strategy for diversification of products As a result, each company has always been my choice for a different product strategies: a company focused on a certain product category, and Samsung is a typical path to choose to diversify product line At the private market in Singapore, Samsung also has major product lines: TVs, audio products, cameras, home appliances, mobile phones, monitors and computer components, laser printers and in color The very diversity made a difference between the Samsung with the competitors, opportunities to exploit resources from the various product lines in a certain market for the company The company always focuses on investment in research and product development and result in continuous launching new products with good design, eyecatching, attractive and integrated multiple functions This has created advantages for Samsung compared to its competitors, Samsung helps attract large customers like the new young and innovative in design and continuous function of the product 8.2 Distribution Strategies Samsung mainly build their distribution network in Singapore through major retailers and supermarkets system electronics The first channel is the retail company, Samsung has chosen to cooperate with the prestigious company in Singapore With a computer monitor, Samsung also selected for their distributors very reliable Distribution Monday is a system of home appliance, Samsung also choose to bring their products to consumers through supermarkets, prestigious shopping centers, large urban areas where levels of living and high educational level This helps to improve brand position for Samsung products, helping customers feel confident in the quality of the product 8.3 Avertisisng and Promotion By its own magazine editor and published for information about the activities of the Samsung for internal and customer know as the success of dealers, distributors, marketing ideas, news of Samsung, the results contests, reward employees and information about Samsung products Samsung is famous for its new advertising ideas and always looking for the right subjects for inclusion in the campaign cao.Nhung images, audio transmission of ideas has always been very thorough care Besides using traditional advertising methods such as through advertising on primetime television, advertising through website traffic is large or aggressive PR campaign, Samsung is always my choice for how to put pictures of products to consumers is very different and effective 8.4 Public Relations Along with the efforts of business, Samsung always aim to participate in activities beneficial to the community such as sports, culture and society in Singapore on top, for a better life for the community , co-operated with the community and community development Thereby enhancing the image of Samsung in the eyes of consumers as a brand is always the responsibility for overall operation of the entire society The strategic long-term image-building programs through meaningful community has always been focused on Samsung, and in fact has created a positive effect in improving the company's image in the eyes of consumers Conclusion With a strong leader in digital technology, and deep understanding of consumer needs, the products of Samsung are integrating the latest technology and aesthetic design fully bring style lifestyle more variety for consumers The achievements in production and business in recent years in Singapore as the expression of human resource strength of the company over many years of trying, to with guideline and the principles and strategies of SAMSUNG are on track References list: • James Prendergast and Eammon Murphy and Malcom Stephenson (1996) “International Journal of Quality & Reliability Management”, Vol 13 No 5, 1996, pp 77-90; MCB University Press • Rose Sebastianelli and Nabil Tamimi “How Management Strategies Defining Quality”, Vol 19 No 4, 2002, pp 442-453 • Samovar, Larry A and Richard E Porter Communication Between Cultures 5th Ed Thompson and Wadsworth, 2004 • Rogers, Everett M., Hart, William B., & Miike, Yoshitaka (2002) “Edward T Hall and the History of Intercultural Communication: The United States and Japan.” Keio Communication Review, 24: 3-26 Accessible at http://www.mediacom.keio.ac.jp/publication/pdf2002/review24/2.pdf • How Samsung nurtures new ideas (2005) Strategic Direction, 21(4), 6-8 • Renee Kim (2007); Samsung’s Competitive Innovation and Strategic Intent for Global Expansion; Problems and Perspectives in Management 5(3), 131-138 • Yungwook Kim (2006); Do South Korean companies need to obscure their countryof-origin image? A case of Samsung; Corporate Communications, 11(2), 126-137 • Martin Roll (2011); “Samsung: Building brand equity through brand community”; Business & brand strategist; access on 8th December 2011; available at: http://www.venturerepublic.com/resources/Samsung_Building_brand_equity_through_brand _community.asp [...]... Korean companies need to obscure their countryof-origin image? A case of Samsung; Corporate Communications, 11(2), 126-137 • Martin Roll (2011); “Samsung: Building brand equity through brand community”; Business & brand strategist; access on 8th December 2011; available at: http://www.venturerepublic.com/resources/Samsung_Building_brand_equity_through_brand _community.asp