However, there are emerging opportunities in several areas including the latest technologies like AI, IoT, self-driving cars, and other technologies. Samsung has made several acquisitions in its history. These acquisitions have helped the company cement its position in the electronics and smartphone industries. Acquisitions can be a great source of growth by providing opportunities to hack into new user segments as well as access to new markets. For example, the acquisition of Harman in has helped the company cement its position in the electronics industry.
The Covid pandemic has emerged as the biggest threat before businesses globally. Its impact will be felt even into According to several senior scientists, it is a threat that society needs to learn to live with.
While it began abruptly in January , before businesses could sense the scale of devastation the pandemic could cause, it had jeopardized supply chains and made it difficult for physical businesses to operate on a full scale. While the impact on the digital and cloud industries was relatively lower, the effect of the pandemic on the global supply chains brought a large number of businesses to an abrupt halt, including those in the automobile, aviation, and manufacturing industries.
At the other end, the pandemic has caught economies by the tail sending them into a tailspin. Its impact has been severe on the primary, secondary and tertiary sectors in the global economy. The largest economies and markets like the US and China have also felt a severe impact as unemployment levels ran very high as the pandemic broke out.
With the pandemic, consumer behavior around the world has also changed profoundly. People are spending on essentials mainly and shopping more using digital channels. While China has been the first nation to have recovered from the pandemic and the US has also reopened, the impact has been deep in specific areas of the two leading economies and it might take some time even after a vaccine is released to fully recover from the losses caused by Coronavirus.
Overall, in such an environment, the sales of Samsung products were bound to fall and they did. If the brand was able to mitigate the threat from Coronavirus to a large extent, then it was primarily because of its strong position in the global markets.
Despite that, its sales and revenue declined considerably. The impact of Coronavirus will take time to go away even after a vaccine has been found.
Right now, the best thing for Samsung is to follow a strategy that helps its business and supply chain survive the blow. The pandemic has led to some major changes in the industry environment. Its economic impact is severe and would last longer than However, some other challenges have also emerged since despite the reopening of major economies the changes in consumer behavior are going to last.
The dependence of businesses on digital technology has also suddenly grown. Companies like Samsung are also depending on e-commerce channels for a major part of their sales during the pandemic. After the pandemic has been brought under control, these trends will remain and the shift towards digitalization of supply chains and distribution channels will continue to grow.
The situation has stabilized a bit in the US economy since the outbreak. According to a forecast , the global demand for smartphones and consumer electronics can grow in the second half of the year and that is going to result in superior results for Samsung.
Despite being the global leader in the smartphone industry, Samsung is facing a lot of competition from China and the US based smartphone manufacturers. Its leading competitor is Apple. In the other leading smartphone markets too such as India and China, there is a lot of competition from the Chinese brands as well as Apple. Samsung has a very small or just about a less than one percent market share in the China smartphone market which is mainly because of the tough competition from the local Chinese brands.
These are also among the leading competitors of Samsung in India. Samsung is the second biggest brand of smartphones based on shipments and market share in India. Overall, there is intense competition in the smartphone industry. Apart from it, Samsung also faces tough competition in the other product segments including televisions and consumer electronics from brands like LG, Panasonic, SONY and others. Intel is its main rival in the semiconductor market. While Samsung had managed to reach the top in the global semiconductor market a few years ago, Intel captured the top spot again in Overall, Samsung operates in a highly competitive industry environment which is one of the leading challenges before the company driving higher expenses on research and development as well as marketing.
Higher competition also means higher pressure related to growth and market expansion. Legal pressures related to business have continued to rise in recent years. It is mainly because the technology industry has expanded rapidly giving rise to the need for an evolved legal framework to deal with several new concerns. Almost all of the leading technology brands are dealing with one or another legal issue. These issues can prove costly if the business is caught being noncompliant with any of the relevant laws in any region where it operates.
From data security to consumer privacy and labor laws among others, there are several legal concerns that constantly bother the technology brands. Samsung has been rattled by many legal concerns over the previous few years.
Its legal tussle with Apple regarding a design patent came to an end in after having continued for around seven years. Samsung has also been battling with many more legal issues including those related to the company chairman. The company chairman Lee Sang-hoon has already spent a substantial amount of time behind the bars in a bribery case. His imprisonment in the case ended in February, Again, Samsung chairman has been convicted in another case related to labor laws. He was charged by a court with disruption of union activities at Samsung.
Around 24 more current or formal Samsung officials have also been found guilty with similar charges. So, the legal woes of Samsung are far from coming to an end. It has led to higher legal scrutiny and uncertainty for Samsung. At the end, it can have a noticeable impact on sales and revenue. For a large business like Samsung, it is of utmost importance to mind ethics and compliance since apart from substantial sums in the form of fines like it paid in the Apple case, it also keeps losing reputation internationally.
Economic fluctuations also have a sizable impact on the business of conglomerates like Samsung. The company is feeling the pinch of economic uncertainty caused by Coronavirus.
While the domestic economy of South Korea has fared relatively a lot well compared to several major economies, other leading markets of Samsung like the US and India have not been able to manage the pandemic with the same efficiency.
So, the impact apart from being on the personal lives of the people and consumer behavior has also been felt on economic activity in these regions. Coronavirus has directly impacted economic growth globally from the US to India, UK and many other major economies. While Samsung expects performance to improve in the second half of the year, the impact of the pandemic will remain on the world economy for longer.
The US economy has experienced a severe decline in the second quarter of It has also had a significant impact on the sales of Samsung products. On the other hand, the Indian economy also contracted significantly during the second quarter of India is also a major market for Samsung products. The Indian economy contracted by Goldman and Fitch ratings have also estimated a deep economic recession in case of the Indian economy. Since growth is hampered in two leading economic markets, the impact can be negative on the sales of Samsung products in both regions.
While the US market will recover faster, the Indian market may take some time due to the growing cases of Coronavirus as well as a lack of strong financial measures that could support rapid recovery.
Samsung has found a lot of growth internationally. The international growth and expansion of the company are driven by multiple factors including technological innovation. They play a critical role in the international business environment. Analyzing these factors helps understand the extent to which each one can affect the performance of a specific business and industry.
The role of political factors is crucial in terms of successful operations of international businesses like Samsung. However, the political environment of a country or region also has a definite impact on the business environment there. It is because economic stability or the condition of trade in a particular area depends on the kind of government in the region. In many regions of the world, you will come across governments that have formed more business friendly policies and also entered into international partnerships with other nations to help their domestic companies flourish.
On the other hand, in some regions the government exercises tighter control over the businesses in the area and its policies are also not so business friendly. Moreover, as governments change these policies can change leading to direct impact on the domestic businesses as well as the international businesses operating in the region.
It is why businesses like Samsung have to create strategies and policies with an understanding of the political environment of each market. South Korea, which is the domestic market of Samsung, is considered a business friendly market. Its economic freedom score is 74 which makes it the 25th most free market in the index.
Its relatively higher degree of business openness offers potentially big benefits for large businesses like Samsung and other international businesses operating in the region. Suppose two nations have formed very good economic relationships, then it allows a business from one nation to operate more freely in the other and vice versa. The United States is strategically the most important market for Samsung. Apart from its smartphone products, the US is also a crucial market for televisions, displays, semiconductor and 5G equipment made by Samsung.
The political and economic relationships between the two nations have remained strong for a long time.
South Korea is among the most important strategic partners of the United States in the Asian region. Apart from forming military agreements, the two nations have also entered into economic alliances.
In this way, the strong economic relationships between the two nations have continued to help South orean brands operating in United States. Samsung continues to benefit from their friendly relationships. Considering the strategic importance of the US market for the brand, trade relationships between the two nations play a crucial role in ensuring the success of brands such as Samsung.
The role of economic forces in the context of international business and the growth of international trade is immensely important. The condition of the world economy as well as the local economies where a particular brand operates has a major role in determining the financial growth and success of international brands.
With higher economic activity and a higher level of employment, people spend more on consumer electronics products. Economic fluctuations in key markets can have a positive or negative impact on the revenue and profits of a firm operating in those areas. There is a strong relationship between the condition of the world economy and the performance of major international firms like Samsung.
The growth of the world economy has continued to support faster growth of Samsung over the past several years. However, the condition of the global economy following the spread of the coronavirus pandemic has worsened and it has led to declining sales for companies like Samsung.
Since the pandemic grew, a large number of people around the world have lost their jobs. Continuously falling level of employment in key economies like the United States and India has led to lower spending on items like smartphones and consumer electronics. As a result, the revenue and profits of Samsung have been affected in the first and second quarters of The company expects its revenue to grow again in the second half of the year as economies reopen and employment grows.
Due to the extended shutdowns, several economies experienced a swift decline in economic activity that led to stunted economic growth. During the second quarter of , both the US and India have experienced a considerable decline in economic performance. The United States has been able to recover faster as compared to India, which is clearly showing in the form of falling unemployment levels that had risen very high since the pandemic spread.
In February , the unemployment rate in the United States was only 3. Since then the unemployment rate and the number of unemployed persons had grown a lot but started declining in May. The unemployment rate in the US jumped to the highest during April to Having fallen to With the unemployment rate declining consistently since it peaked in April, the situation is expected to be considerably better in the second half of the year than the first.
It can lead to increased spending on smartphones and consumer electronics. Due to the pandemic and the resulting conundrum, the sales of 5G smartphones were much lower than expected. As the economic situation continues to improve in the US, the sales of Samsung products including 5G and other smartphones as well as consumer electronics is expected to grow thereby improving revenue and profits of the South Korean firm.
Sociocultural factors have gained importance in the field of international business as their strong influence on business performance has come to be recognized now. Sociocultural factors are not divorced from business even if their impact may be less direct or less evident in the terms of international business. However, with time a lot of research and evidence has accumulated that shows that the effect of these factors on business is significant.
Otherwise businesses would nto need to create different business and marketing strategies for different regions. Societies and cultures differ from region to region. You can find vast cultural differences between two regions. Something that works in the West might fail badly in terms of producing results in the East.
While a lot of things have changed with the advancement of technology and the rise of social media, still, these sociocultural differences need to be kept in mind while formulating strategies for various regions. For example, for a business operating internationally in several leading markets, it is important to mind how social and cultural differences affect its business in each region. If you are operating in China having some understanding of the local preferences and taste will definitely help you build a better strategy.
Many of these differences do not matter much because of growing digitalization and use of technologies like social media around the world, still marketing strategies need to be crafted carefully in order to avoid any kind of complexity.
Whether the Asian region or North America, Erope or MIddle east, the marketing and business strategies of the same business can differ from one to another region. Samsung is a South Korean conglomerate. It has acquired an excellent footing in the United States market but in China, it does not enjoy the same status. Apart from political and other factors, the sociocultural factors are also responsible to some extent for it. Many businesses have found it difficult to crack the Chinese market because of the complex culture and local laws.
However, the firms that have acquired a good understanding of the local culture have advanced there without difficulties and through the help of local partnerships. They find it easier to market their products locally and penetrate the market deeper. The advancement of digital technology has brought a sea change in the way businesses operate internationally.
Most of this growth is driven by technological factors globally. With technological growth happening at an exponential rate and with the arrival of technologies like IoT, AI and 5G, the world of technology has acquired a higher acceleration rate. While the world of technology is evolving at a fast speed, the technology related needs of people around the world are also growing.
From Alexa to Google and other voice assistants, people are living a highly digitalized life. Netflix, facebook and the other social media channels are keeping people engaged throughout the day. Most of the marketing throughout the world is taking place online using digital channels. Smartphones are like digital partners that people use during the entire day to accomplish personal and professional tasks. According to Statista , the number of smartphone users around the world is 3.
Their number stood at 2. This number proves that the top five smartphone brands have grown many times richer within the last five years. The smartphone industry is experiencing intense competition. Despite the intense competition, the company has maintained excellent growth momentum. The main factor driving the growth and competitive advantage of Samsung is technology. Its focus on innovation is the leading factor that has helped it become the largest smartphone brand in the world market.
Over the last few years, its research and development expenditure has grown a lot driven by the intense competition in the smartphone industry. So, at the core it is the technological factors that are driving most of the growth for international smartphone brands like Samsung.
Whether in terms of production or marketing, technology is the real game changer in the industry. Apart from managing its supply chain using modern technologies like AI, IoT and Blockchain, the company has also focused on digitizing its business operations as well as investing more in digital marketing to grow its market influence. Digital transformation is happening around the world at a faster rate.
To provide a superior customer experience, Samsung will need to maintain its focus on research and innovation. It is also the key to surviving in a highly competitive industry environment.
Environmental concerns and sustainability are also among some important concerns for international businesses. Especially, the companies that make physical hardware and have a significant environmental footprint will need to focus on making their products and processes more and more sustainable. Apart from governments and environmental watchdog agencies, the public itself is now concerned about the environmental impact of businesses.
Customers like to buy products from the brands that are the most sustainable and care for their environmental impact.
Following the spread of the pandemic, the environmental impact of large and international businesses has also become a grave concern for governments and the public. The spread of Covid pandemic has reignited discussions related to the environmental impact of businesses and if companies are really managing it with full focus. It will inevitably lead to more stringent laws in the favor of the environment. At this critical time, companies need to take sustainability even more seriously.
For a business like Samsung, it is now impossible to operate without having sustainable operations. Sustainability is also related to ethics and companies that do not focus on it can lose their reputation. Samsung has created a detailed sustainability strategy that focuses on making products as well as its business processes and the entire system more sustainable. Even if there are some costs associated with managing sustainable business operations, it can be highly profitable for Samsung in the long run.
The company publishes an annual sustainability report for its stakeholders that summarizes its policies and actions related to sustainability as well as the key milestones it has achieved in this area. Some of the key focus areas highlighted in the annual sustainability report of Samsung include better resource management, recycling, circular economy, minimization of Greenhouse Gas Emissions and expansion of the energy management plans already at work.
The company is also making use of the latest technologies to facilitate the success of its sustainability strategy and energy management plans. The company has also been successful at minimizing the use of non renewable energy as well as environmental resources.
Overall, Samsung has taken several significant steps that apart from helping it minimize its dependence on natural resources as well as its environmental impact will also help it manage the impact of climate change with higher efficiency.
Considering the impact of law on every business and especially the international businesses, it would not be an exaggeration to say that distraction will inevitably cause accidents. In the case of large businesses like Samsung it is even essential to consider the compliance related requirements very minutely.
Noncompliance can easily lead to hefty fines and even imprisonment for company officials. Samsung itself is a great example. Its current chairman has spent a substantial amount of time behind the bars.
However, the legal framework differs from region to region. That does not, however, reduce the risks for international businesses. Instead, the international firms need to consider each and every big and small applicable law that can affect its business in any of the regions where it operates. Most of the largest firms consider the impact of law on their businesses at least once each year during their annual meeting, However, it is also an area that requires considerable and continuous scrutiny on the part of the businesses themselves.
They cannot put everything at risk including their reputation or take risks related to compliance. If a business decides to act illegally or unethically or even take advantage of the loopholes in the local legal framework, it will yield negative results in the long run.
The Samsung chairman was behind the bars in a case of bribery from which he was released in However, again he is facing fresh indictment in a labor case. While the company has maintained a strong reputation as an innovative firm that makes and sells innovative and excellent products, its legal woes seem to have become a permanent problem.
Samsung definitely needs to act more carefully since the most recent case has aso put a question mark on its performance in the latest quarter.
While growth is necessary for an enterprise, it must not come at the cost of ethics and compliance. Samsung needs to definitely grow its focus on this area since if it emerges as a grey area then the impact will the most on its reputation globally and in turn on the sales of Samsung products worldwide. Being compliant and ethical will help the brand strengthen its roots and establish itself as a respectable and responsible brand of smartphones and consumer electronics.
There are several forces in the industry that affect the market position of businesses and their competitive strength. It was named after Michael E Porter. In a article titled How Competitive Forces Shape Strategy , published in the Harvard Business Review, Michael E Porter noted regarding his five forces model that it is the collective strength of these forces that ultimately determines the profit potential of any industry and it can range from intense to mild.
The profit potential grows with the weakening of these forces. In each and every industry, a different force may be more prominent than the others. Porter offers three examples in his article. In the ocean-going tankers industry, it is the buyers who are the most important force whereas, in the tires industry, it is the powerful OEM buyers coupled with tough competitors.
On the other hand, in the steel industry, foreign competitors and substitutes are the most prominent forces. Let us take a look at how these forces work in the smartphone industry and how Samsung can cope best with the current industry environment. The bargaining power of buyers can be high in some specific cases. When there are fewer buyers compared to the suppliers, the bargaining power of the buyers will be higher.
If the switching costs for the buyer is low or if the buyer buys the product in volume then the bargaining power of the buyer will be higher compared to the seller. In another case if the availability of substitutes is high in the market or if the buyer can obtain similar products from other suppliers, then the bargaining power of the buyer will be higher. If the product is not sufficiently differentiated, then also the bargaining power of the buyer will be higher.
In the case of Samsung, the bargaining power of individual buyers is moderate. It is because despite the high availability of substitutes, the total number of reliable sellers is limited to five or six. There are only five or six leading brands that the customers trust for the quality of their products.
Moreover, Samsung products are well differentiated. While the scope of differentiation has reduced a lot in the smartphone industry, there are several brands like LG, Huawei, Apple and One Plus that can offer products that match or offer better performance.
The smartphone market is expanding every year and not completely saturated. Samsung products are excellent in terms of performance and design. The customer experience also differentiates Samsung from the rivals. Compared to Apple, its phones are more affordable and since a large part of the smartphone using population worldwide is from the middle class, affordability can grow the demand for a particular brand.
However, the higher end products made by Samsung also enjoy strong popularity and sales. Overall, the bargaining power of buyers is moderate. The level of competition in the smartphone industry also gives the buyers some bargaining power. The bargaining power of suppliers in the smartphone industry is mild or low which is mainly because the number of brands that buy from these suppliers is low compared to the number of suppliers.
Each of the leading brands that manufacture smartphones sources the raw material from thousands of suppliers in the world and mainly in Asian countries including China, Taiwan and other Asian countries. The bargaining power of suppliers can be high only in cases when the number of suppliers is low and the threat of forward integration by suppliers is high. In other cases when the supplier does not have to depend on a particular buyer, then too the bargaining power of suppliers is high.
The e-mail address is not made public and will only be used if you wish to receive a new password or wish to receive certain news or notifications by e-mail. Other wholesale [Includes specialized wholesale not covered in any one of the previous categories and wholesale in a variety of goods without any particular specialization. Click here to see other companies involved in same activity.
Login to view previous names. Login to view previous cins. Login to view. Login to view this information. Login to view past directors. We are adding and updating information about hundreds of thousands of companies every day, and periodically add companies to the queue for being updated.
You can ask for a company to be added to the front of the queue for updating, especially useful if the address, directors, or other critical information has changed.
Just click on the 'Update Information' button below to start the process. Change of directors Filing of financials Registration of new loans Registration of Debentures Change of Company to LLP Satisfaction of loans Change of Address Application form for change of name Application for Conversion of Public Company into Private Company Notice of the court or the company law board order Conversion of public company into private company or private company into public company Allotment of equity ESOP, Fund raising, etc Return in respect of buy back of securities Letter of Offer Notice of consolidation, division, etc.
Please enter valid URL. Thank you. We will update the website after verifying the website address. India has become one of the best places for foreign investment in the world. Since the adoption of liberalized economic policies in , India has opened up foreign investment as one of the important policies. In terms of GDP composition, investment and domestic demand are to promote India's economic growth.
Looking up, India, with its huge labor force and market, seems to be likely to become the new global manufacturing center after China. It is arguably one of the most high-profile economies in the world. In addition to mainland China, India is a dazzling market. In , the Indian machine tool industry ranked 12th in the world, the seventh-largest machine tool consumer, and the sixth-largest machine tool exporter in Taiwan. There are not many large enterprises, mostly small and medium-sized enterprises.
It is one of the major steel-producing countries in the world. The secondary processing industry in the midstream has no technical threshold. Because of the low labor costs in India, many countries have turned to Indian OEM for procurement, while the downstream Cooperating with the industry is weak, especially precision machining.
Because of the backward processing equipment in India, there is not much chance of finding qualified suppliers in India. Therefore, in India, if you want to invest in the machinery and equipment industry, you still use imported components for finished product assembly. India has a large number of scientists, researchers, and engineers, a well-educated English manpower, a wealth of products, and a democratic state mechanism.
It has made India the best base for manufacturing. From the perspective of export value over the years, the overall growth has continued. Also, multinational companies have transformed the Indian market from a low-cost production plant to a global an important production base of strategic layout significance.
Innovative products designed and manufactured by India are not only sold in the Indian domestic market but can also compete in the international market. From foreign investment, it can be seen that its annual expansion trend.
In the past 60 years, the Indian machine tool industry has been developing for a long time. In , it ranked 12th in the world's total production, and it also can manufacture various machine tools, especially CNC machine tools. The requirements of modern machine tools are mainly productivity, precision, reliability, and processing and formation of new materials. All the most famous Indian machine tool manufacturers also focus on these major aspects of machine tools in their research and development.
Power improvement. The design concepts and functional improvements of several new machines are assisted by professional international manufacturers in the development of one or other machine types and have had good results. Most of the technologies developed are from Germany and Japan. Germany and Japan are All have a long history of the development of machine tools and strong research and development capabilities in the world.
The development of Indian machine tools must have significant progress in productivity, precision, and reliability before it can effectively drive the development of Indian manufacturing. The Indian government puts forward the goal of manufacturing in India in From the statistics of Taiwan's manufacturing exports to India in recent years, the Indian manufacturing market seems to be rapidly rising.
In and , the export value of Taiwan's machine tools to India grew by an average of The ranking of exports to the Indian market also jumped from Modi's 11th place when he first took office to Taiwan's fourth-largest export market for machine tools.
0コメント