My topic is “How competitors affect Samsung’s leadership.” With the recent competitive nature of the technology world, Samsung has been on the lead for quite some time now. The factors that are leading to the company’s global dominance include competition in the industry (Dong, 2014). Samsung has become a global leader in the market due to the actions or presence of numerous competing firms. In my research, I will be reviewing the different competitors that are in the market competing against Samsung.
I will also be evaluating the impacts of these companies’ action in propelling Samsung to the top of the industry leadership (Gassmann & Schweitzer, 2014). Some of the competitors’ actions have fuelled the company’s reaction to dominate the global market in many of its products. Samsung leadership has therefore been as a response to challenges and competitions fuelled by other industry players who are contesting for the top position in the market.
Samsung is one of the most notable innovative companies in the world of technology. Its recent innovation of the Samsung Galaxy S series has changed the entire industry (Dekkers, Talbot, Thomson & Whittam, 2014). Samsung has been raising its competitiveness to a very high scale in the technology world (Choudhary, 2014). However, the company is not making much visible progress in the world of technology without an equal measure of challenges. Other companies have been posing a major threat to Samsung as far as technological innovation is concerned.
They include Apple Inc., Microsoft, Panasonic Corporation, Sony Corporation, LG Electronics to mention but a few. In every business, the competing organization affects its overall management. The business has to keep an eye on the competitors to see what they are doing that could put them out of the market. Samsung has been very careful with this particular aspect of the industry. It has been said Samsung is one of the learners when it comes to observing the market and competitor (Gawer & Cusumano, 2014).
The company learns very fast and before the completion beats its innovations, they have already improved their products. This happened with the development of the Samsung Galaxy S4 (Gershon, 2014). When Apple Inc. developed the iPhone 5 model, they had intended to overthrow Samsung in the Smartphone market. This was counteracted by Samsungs top-notch innovation of the GALAXY S series that overtake over leadership in the market by a storm (Gershon, 2014).
Factors influencing Samsung’s growth
It seems like competition and market threats seem to elevate Samsung’s leadership in the industry. Due to the heightened competition and striking innovations, Samsung has had to put up a team of market researchers to monitor the trends n the market (Holbrook, 2015). Therefore, any slight changes made by the competition, Samsung will have a better alternative within a very short period (Jones, Gelbuda & Walker, 2014). In this light, the opposition seems to be fueling Samsungs need to stay alert and offer its best hence remaining at the top in the industry.
To stay ahead of the completion, Samsung has been using its money to remain at the top of the market. Other companies may have the technical know-how to surpass Samsungs technological innovations but very of these companies are willing to put their money to it (Jung, 2014). In comparison to Apple Inc. which is the closest rival in the Smartphone business, their differences in the amount used for research is striking. Samsung in the last financial year, Samsung spent 5.7% of its revenue compared 2.4% of Apple’s revenue spent on research (Kriger & Culén, 2014).
Effects of competition
This clearly shows that the completion is pushing Samsung to stay at the top. Though market research, the company keeps a close surveillance of what the competition is doing and it responds by doing it better by two or three more times (Kuhn, Dubra & Sumilo, 2014). I believe this research is justified because of the vast business acumen that enables Samsung to respond to competition in such an effective manner. First and foremost, the research will identify the strengths that Samsung enjoys that other competing businesses do not enjoy (Linkner, 2014).
While competing partners are too busy trying to compete with the company, Samsung on the hand is using billions of dollars in advancing its technology through market research (Medhi & Mondal, 2015). It is however very important to note that any action by the competing companies is the driving force that allows Samsung to stay at the top of the industry allows.
In this research, one of the major problems that I anticipated is access to financial information of the company. Financial statement s that can display the company’s financial secrets will be hidden from the public scrutiny so getting this information to conduct a financial analysis will be a great challenge. Also, I anticipate a scenario where I will not be able to analyze the company’s strategic plans (Peng & Sanderson, 2014).
Such organizational plans are the secrets that keep the company ahead of its competition. Sharing that information on the internet where I intend to collect most of my information will be a challenge in this research. Also, contacting the company’s physical address will be a challenge due to the geographical location.
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