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Business Issues: Samsung In China

  1. 2. 0 SUMMARY
  1. 5. 1 Michael Porter's PESTEL analysis
  2. 5. 1. 1 Political
  3. 5. 1. 2 Economic
  4. 5. 1. 3 Society
  5. 5. 1. 4 Technological
  6. 5. 1. 5 Environment
  7. 5. 1. 6 Legal
  8. 5. 2 Michael Porter's Diamond
  9. 5. 2. 1 Organization Strategy, Structure and Rivalry
  10. 5. 2. 2 Demand Conditions
  11. 5. 2. 3 Factor Conditions
  12. 5. 2. 4 Related and Helping Industry
  14. 6. 1 Michael Porter's Five Forces
  15. 6. 1. 1 Buyers
  16. 6. 1. 2 Suppliers
  17. 6. 1. 3 Threat of Substitutes
  18. 6. 1. 4 Level of Rivalry
  19. 6. 1. 5 Threats of New Entrants
  20. 7. 0 Rival ANALYSIS
  21. 7. 1 Competitor's Strategy
  22. 7. 2 Competitor's Objectives
  23. 7. 3 Competitor's Assumptions
  24. 7. 4 Competitor's Resources and Capabilities
  26. 8. 1 Market Segmentation
  27. 8. 1. 1 Geographic Segmentation
  28. 8. 1. 2 Demographic Segmentation
  29. 8. 1. 3 Psychographic Segmentation
  30. 8. 1. 4 Behavioralistic Segmentation
  31. 8. 2 Marketing Combine Gap analysis
  32. 8. 2. 1 Product
  33. 8. 2. 2 Price
  34. 8. 2. 3 Place
  35. 8. 2. 4 Promotion
  36. 8. 2. 5 People
  37. 8. 2. 6 Distance Analysis
  39. 9. 1 SWOT analysis
  40. 9. 1. 1 Strengths
  41. 9. 1. 2 Weaknesses
  42. 9. 1. 3 Opportunities
  43. 9. 1. 4 Threats
  44. 9. 2 Hofstede's Dimensions
  45. 9. 2. 1 Electricity Distance
  46. 9. 2. 2 Individualism versus Collectivism
  47. 9. 2. 3 Masculinity versus Femininity
  48. 9. 2. 4 Doubt Avoidance
  49. 9. 2. 5 Time Orientation
  52. 12. 0 CONCLUSION

To identify and understand the international business issues just lately experienced by Samsung in China and how do they react as well as to continue to be competitive against its opponents over the years by using international marketing strategies predicated on different factors which would influence the activity throughout the globe.

Design/strategy/approach: The approach is used to study and illustrate the real world situation where organizations being in the electronics industry face high strength and problems as it impacts the market all together.

Findings: The main findings are based on the various tools to recognize and evaluate different strategies, factors, and conditions for going abroad in order to capture a more substantial market level and segmentations.

Practical implications: The tools used have different characteristics that explain into different varieties which may be used to study the strategic movements and what provides Samsung a competitive advantage.

Originality/value: The newspaper is specifically centered on the analysis of business strategies based on the various tools for long-term development and sustainability.

Keywords: Globalisation, competitive gain, innovation.

Paper type: Research newspaper.


Samsung Gadgets Company is a company operating in the consumer electronics industry for consumers' goods, one which is mobile devices. Furthermore, they have got made successful comebacks in conditions of their mobile devices where it accounted a high ratio of users that uses Samsung brand that is included with many different models. In the past, Samsung might not be the best-selling brands for mobile devices unlike the Nokia, and Sony Ericsson because they were much less competitive in conditions of quality, product technology, and features that able to meet up with the needs of consumers.

Apart from that, China has been a huge market for gadgets and Samsung can capture a broad market size in China by spending into research and trends to improve in digital products such as LCDs and other kitchen appliances, moving away from being simply a mere manufacturers for OEM or quite simply, producing products out from part parts bought from others. In addition, it changes rapidly plus they would need to follow the tempo based on consumers' preferences to attain long-term goals and sustainability.

However, there are international business issues which just lately encountered by Samsung in China due to the allegations that child labour were used and Samsung have been accused for exploiting younger workers. Therefore, this might have an effect on its reputable image and brand yet along being sued just lately by Apple for infringement of its patent.


Samsung Consumer electronics Company has one of the best-selling devices on the planet amongst other electronic hardware where they have made its way internationally throughout various marketplaces by having an established supply string and manufacturing plants in China and a great many other countries. Furthermore, Samsung has made its effort by marketing its product with the initiatives to capture a larger market share. However, countries which have different political legislation and stability, ethnicities, factors and conditions, etc would influence the strategic activity for Samsung, for illustration in China that have been accused for using child labour and violating human rights.

Based on the issues as per previously listed, China market can be analysed through the use of these management tools that consists of the Michael Porter's PESTEL Examination and Porter's Gemstone to look for the exterior environment, the Five Pushes for the industry, Rival Analysis, Marketing Research, as well as Internal Research through the use of SWOT and Hofstede's Measurements. These tools were essential to understand the environment from all aspects in another market as well to identify its competitive border against its rivals and other market segments globally.

On top of this, Samsung has applied its technology into its technology and the real human capital would be a major aspect in conditions of potential capacities to perform (Anwar, 2007). This is to improve its brand acknowledgement in terms of product development and development for sustainability.


Today, Samsung Consumer electronics Company manufactures electronic products such as mobile devices whereby Samsung was initially founded by Lee Byung-chul back yr 1938 in Taegu, Korea. Samsung was first began as trading company which exports groceries products to China and has turned into a multinational organization today. In 1958, Samsung expanded into market sectors such as dispatch building, chemicals etc throughout the 1970's before moving on through the ages to yr 1969 whereby Samsung Gadgets was formed to set-up work at home opportunities by acquiring business institutions like the insurance company, clinic, shops as well by producing electronics which includes cellular devices which what Samsung is well-known for (Murat, n. d. ).

Next, the successes Samsung possessed from its technological aspects in the DRAM industry for processing experience throughout Samsung Electronics has made a higher growth and sales in terms of product development and by marketing them out in large quantities to other countries which made way for expanding abroad. In addition, Samsung has an excellent approach to quality and product development which manages and innovate services whereby Samsung also hires the finest workers that retains a PhD and that's no real surprise because Samsung's company assets is accounted about $300 billion (Lero, 2008). Around today, Samsung keeps the position of "world's best" technology that provides regular improvement to contribute to the world as qualified workers would also play a significant role for quality in their particular fields (Murat, n. d. ).

However, there are problems which Asian monetary crisis and just how do they survive as well as the recent lawsuits for the infringement of intellectual property and the allegations of child labour used whereby the existing chief executive officer (CEO) of Samsung, Shin Jong-kyun embattled with its competitors.


5. 1 Michael Porter's PESTEL analysis

5. 1. 1 Political

In politics factor, Samsung have to take cognizance of policies regulated in several countries. For example, some governments may protect their local brands in the gadgets industry and therefore impose an increased tariff or restricted quota for importing overseas. It is because some rivals may have federal contracts and Samsung must separate its products to contend with competitors. Yet, in China, the China Labor Watch is taking initiatives towards the allegations of child labour below 16 years of age and exploiting younger workers really whereby it would influence Samsung's image and branding as well of its suppliers which were accused as well (Arthur, 2012).

5. 1. 2 Economic

Next in monetary, Samsung have suffered from the Asian monetary crisis back time 1997 which resulted in a negative online earnings even though Samsung made $16 billion out from sales and the dismissal of 29, 000 employees (Quelch & Harrington, 2008). Therefore, consumers' spending was influenced as well scheduled to a lower throw-away income which resulted from a high unemployment rate in some countries. In addition, the economy tough economy in countries such as with the U. K. has made a direct effect on Samsung being in the electronic digital industry as U. K. is one of the modest countries that follow the up-trend technology. Apart from that, the marketplace in China is huge whereby the Asian economic turmoil have made a higher impact towards Samsung.

5. 1. 3 Society

In society, more people which includes younger era even demand for a smartphone thus increasing the sales. Thus, people in expanding countries would have a higher demand and Samsung would have to segment certain sets of consumers predicated on the applications available through the merchandise. Therefore, Samsung have to take this advantages to continuously innovate and develop its product to stay in the competitive market. However, there are allegations in China that more youthful generation were also being exploited to work more 100 hours overtime in per month and that could violate human protection under the law and it could bring about consumers' boycotting on Samsung products (Arthur, 2012).

5. 1. 4 Technological

This is one of the most crucial factors in the consumer electronics industry as it demands for new features and specifications that meet consumers' needs. For example, Japan being one of the very most advanced country would seek technological improvements for convenience and therefore able to make their lifestyle into excellence. Besides that, cellular systems and data transfers improvement are one of the most basic needs for consumers which Samsung could make the most in countries that has a high bandwidth wireless interconnection.

5. 1. 5 Environment

Next in environment, Samsung would have to foresee its weather in certain countries because it may impact its manufacturing vegetation. Furthermore, Samsung would need to take the contemporary society and natural environment into consideration because of the pollution and the emission of fumes from factories. In China, the weather and air pollution index is bad which would lead to society protesting towards more manufacturing facility in China that might be detrimental with their health.

5. 1. 6 Legal

In legal, more and more companies would like to protect their intellectual property rights such as Apple Inc. that recently sued Samsung for infringing its design and other features. In addition, human rights need to be protected whereby a woman in China has brain tumors due to the fact that she was exposed to toxic chemicals for half of a ten years in her career. Therefore, it might tarnish Samsung's image for income rather than people's concern as allegations has been made towards Samsung in China for exploiting workers (Globalization Keep an eye on, 2012).

5. 2 Michael Porter's Diamond

5. 2. 1 Organization Strategy, Structure and Rivalry

Taking China for example for expanding in foreign countries, Samsung is able to capture a huge market in China as China is well populated thus it's cost-efficient anticipated to transport costs and close proximity. Within the other side, Samsung joint projects with Corning with regards to the new Chinese LCD facility so that Samsung can understand the Chinese language cultures and contend with its competition (Matt, 2012).

5. 2. 2 Demand Conditions

In the demand conditions, consumers' throw-away income must be watched and the Chinese language may have a higher disposable income because of the growing economy in China. In addition, Samsung have to forecast consumers' choices based on their cultures to fit into the products, for occasion kitchen appliances that fits into their homes which are used to be much smaller in size unlike in the european homes.

5. 2. 3 Factor Conditions

Samsung have accounted an enormous ratio of consumers located in China and it gives an advantage in conditions of logistics and human capital. For instance, South Korea plug-ins would give cheap for shipping and delivery products and also have the procedures to operate with China. Inside the other palm, Samsung is able to safe cost through cheap labour and the hiring of knowledgeable candidates from universities from a more substantial market in China (Dilipnaidu, n. d. ).

5. 2. 4 Related and Helping Industry

The supporting industry such as Tesco has given talk about relationship to Samsung as they are mutually beneficial in the retailing industry. In addition, Samsung has plenty of OEMs in Asia and infrastructure support in China which reaches an advantage in conditions of resources and logistically in specific geographical locations.


6. 1 Michael Porter's Five Forces

6. 1. 1 Buyers

The bargaining powers of customers are high due to the fact that consumers can certainly change to other competitor's products. Therefore, Samsung make an effort to keep cost down at bay whenever you can and by doing so, they are able to capture a larger market share as China is well filled. However, switching cost can be high because some consumers may want to change to a newer cellphone whereby the old ones are still under agreement. Thus, people in China would have a tendency to will have the latest device scheduled to high disposable income which would also effect them a high turning cost unlike the home appliances where people have a longer period frame of with them but there are a great many other rivals producing them as well.

6. 1. 2 Suppliers

The suppliers have a minimal bargaining power in the sense that Samsung itself is the suppliers for component parts such as DRAM computer chips etc. Therefore, they have a cost gain and able to retain its originality. However in the electronics industry as a whole, the bargaining power of suppliers are high anticipated to other parts required to produce its other electronic hardware (Huvard et al, 2011, p. 8).

6. 1. 3 Threat of Substitutes

The risk of substitutes is high as there are many other smartphones available which could perform the same features and applications. For example, Apple and Nokia smartphones could perform as very much like Samsung's and they are competing in terms of quality and innovation, thereby they would look like the same. But also for older generation users, the threat of substitutes would be higher because most of them are not IT literate and would spend less to get cheaper phones which would be a threat to Samsung as well. Within the other hands, replacement products for home appliances amidst others are high as well. Not to mention about China phones whereby China used to imitate products into another type of brand thus bringing on a higher threat of substitutes.

6. 1. 4 Level of Rivalry

The level of rivalry is high because there are a great many other competitors on the market such as Apple Inc. in the smartphones industry as well as Sony in the house gadgets products (Huvard et al, 2011, p. 9). In addition, the market composition of Samsung is monopolistic competition whereby they do not compete in cost with the competition, but be competitive in conditions of invention, product development, and which works better with one another because consumers have a tendency to get the the one which performs best for them. Thus, the rivalry is strong in China because it's a big market whereby all competitors have expanded there.

6. 1. 5 Threats of New Entrants

The threats of new entrants are extremely low because a very high original investment is necessary for research and development to compete with the existing competitors. Today, Samsung have made a great success in product development and it's very hard for new entrants to keep up with the speed as well of issues for safe intellectual property. Furthermore, consumers' commitment would form a more powerful barrier of entrance and thus problematic for new entrants to contend (Chan et al, 2011, p. 12).

7. 0 Rival ANALYSIS

In order to be competitive in a huge market such such as China, Samsung have to analyse its competition in order to understand their aims, strategies, assumptions, as well as the resources and functions to execute in China and other countries (NetMBA, 2012). In that way, competition in the mobile industry one which is Apple Inc. and Sony for other digital appliances has generated a high strength for Samsung to keep speed with the moving technology before they are left out.

7. 1 Competitor's Strategy

Thus, it is critical to understand their strategies and also to keep track with latest revisions. For instance, opponents tend to advertise to promote its products and Samsung must understand its strategies out from it. However, Samsung has made good strategy in conditions of advert whereby they use Korean pop performers and dancers in music videos to market its products. Furthermore, China is enthusiastic to Korean celebrities and therefore would be inspired to Samsung smartphones which will be a competitive advantages as well.

7. 2 Competitor's Objectives

All competition have different targets where to capture a larger market share particularly in China. For example, Apple Inc. comes with an objective to build up the best computer systems and software to meet up with the needs of consumers even in future as well to align with the fast change of technology (Apple, 2012). Therefore, Samsung have to take effort to plan and develop its product for distinguishing itself than its rivals.

7. 3 Competitor's Assumptions

It's important to expect certain activity on opponents to keep rate with the market. For instance, Apple Inc. have recently sold its new iPhone 5 that comes in with better specs for four cores processors because of the fact that the prior model has only two cores and the rumours for Samsung's smartphones have a somewhat wide display screen. Therefore, Samsung can foresee the coming approaches for Apple Inc. in terms of product development in which Samsung could develop a much better smartphone. However for Sony in conditions of other digital devices, Samsung have to look for the household needs for consumers to market its products.

7. 4 Competitor's Resources and Capabilities

In terms of competitor's resources and capacities, Sony for case may have resources by venturing into China market and the features to produce highly scientific products for developments because Sony is originated from Japan which is recognized as a sophisticated technology country. Therefore, Samsung has to compete in conditions of its features also to understand the scope they would go after.


8. 1 Market Segmentation

8. 1. 1 Geographic Segmentation

Samsung have segmented its market geographically in China particularly in cities because of the population thickness and the necessity for consumers to utilize smartphones because of their day to day routine. Therefore, there would be popular for smartphones and other electronic products which would consequence of Samsung exploiting staff to work more than 100 time per month over time to meet the higher demand of consumers (Arthur, 2012). However, Samsung do not necessarily segment markets in rural areas because of the fact that most people aren't IT literate and therefore don't need smartphones, aside from home appliances which may be useful.

8. 1. 2 Demographic Segmentation

In demographics, Samsung targeted young generations specifically and working individuals for smartphones as well as housewives for kitchen appliances. It is because the younger years regardless of its gender, and job, there will probably get themselves a smartphone for some reasons. Furthermore, Samsung also section its market predicated on the average or high income level because its products will set you back a certain level whereby some categories may only in a position to manage them.

8. 1. 3 Psychographic Segmentation

Based on the consumers' activities and desire for China, these are active in their daily lifestyle and the smartphone would works best for them that made responsibilities easier and convenient to allow them to organize ideas. Hence, their lifestyles are turning into one of the advanced country as well as the market of China keeps growing which more people are continue towards information technology.

8. 1. 4 Behavioralistic Segmentation

This is discussing consumers' behavior in China based on the design, pattern, prospect, as well as the features available from the digital products of Samsung. Therefore, Samsung would need to take this matter into consideration to find a more substantial market show in China and other countries. In addition, brand loyalty is definitely important within its competitive benefit over its opponents if they're able to identify its product and also to meet consumers' needs. However, the allegations made to Samsung about the use of child labour and the exploitation of Chinese employees in Samsung would build a bad image amidst the Chinese language and would be harmful in the long run if this matter persists.

8. 2 Marketing Combine Gap analysis

8. 2. 1 Product

Samsung has many different products and models predicated on the various categories such as smartphones, home appliances, televisions and so forth. The products were designed specifically to meet up with the needs of consumers but however the products target an array of market as a whole and may well not focus on certain market niches. That is to avoid additional costs in terms of businesses but Samsung have to keep tempo with the competition since it is a pattern that grows quickly. Next, one of the best-selling products in Samsung was the smartphones whereby the recent reports has reported that this has sold about 20 million Galaxy S III smartphones over calendar months of marketing it globally (TheStar, 2012). Hence, this may cause the effect for allegations made against Samsung by China Watch Labor for using child labour as well of exploiting employees in China for producing products in a higher capacity to meet up with the high demand for consumers.

8. 2. 2 Price

In price, Samsung have a tendency to lower its cost as well as prices of consumers' goods to stay competitive in the market. This is because consumers have a tendency to look for products and features available in smartphones or other digital appliances however they are likely to be like the competitor's. Therefore, Samsung have to take advantage in conditions of price whatever the physiological simple fact that higher price constitute better product unless the product quality can proof for a better product. In addition, Samsung can take advantage of its price by collaborating with providers predicated on the deals whereby consumers are able to obtain a phone line whilst having the product for a cheaper price.

8. 2. 3 Place

Samsung has its developing crops and suppliers within the source chain around the globe in numerous countries to be able to travel global. By doing so, they have a competent flow in conditions of resources and logistically. In China, Samsung has many suppliers to adjust to the broad geographical locations and meet the popular of consumers. In addition, countries that contain a growing overall economy would in turn good for Samsung for kitchen appliances because of the fact that property prices would increase and you will see a higher demand for home appliances as well. Thus, Samsung can capture a higher market share because of the growing current economic climate such as Australia and particularly in China.

8. 2. 4 Promotion

In advertising, the Samsung had invested about billions of dollars into advertisements to promote its brand and products. For instance, Samsung used the Korean pop superstars through music videos to market its product due to the fact that Korean pop music videos are one of the very most viewed on Internet because of its popularity regardless viewers being in Asia, Europe, and the American countries. Thus, this would effect the consumers for the merchandise predicated on the advertising strategy and on top of that, Samsung also had made great work into corporate sociable responsibility to market a better welfare of the culture, apart from the allegations being made against Samsung lately in China.

8. 2. 5 People

The people are discussing the staff and employees Samsung has throughout the world and particularly in China. In China, Samsung can work with the skilled employee, for case PhD holders from colleges and on top of that hire cheap labour into creation plants which in a position to save costs. Furthermore, there a wide range of suppliers as they founded a stable supply chain in the market.

8. 2. 6 Distance Analysis

Based on the marketing mixes as per previously listed, there are spaces among its online marketing strategy. One among others is the merchandise and prices strategy whereby Samsung will not focus on low to no income level whereby young students weren't targeted. This is basically important because they are affected by the up-trend and they're likely to get its product. Thus, Samsung may be able to produce smartphones that may have the similar but less features and functions at a lesser price for low to no income level in which their parents may afford one for his or her children. This is to capture a more substantial market scale also to establish consumers' devotion as well to fortify its brand.

Next, its promotional strategy whereby adverts were meant to get young to working individuals' market groups but however older groups may well not be influenced by these promotional strategy. Therefore, Samsung should have mixes of advertisement showing concerns for the elderly generation as they are part of the market group whereby they start using smartphones regardless of focusing on how to utilize them or otherwise. It is because they are following the up-trend using their children in terms of communication and the features available that make their life convenient.


9. 1 SWOT analysis

9. 1. 1 Strengths

In advantages, one which is the brand whereby Samsung have a strong brand identification throughout the world. Hence, almost everyone understands what Samsung is and what do they produce. Furthermore, the brand they had can be strengthened through the use of its quality and product development such as smartphones, and electronic appliances. On top of that, by venturing in China, there's a growing market in demand for smartphones in particular as well as other electronic products produced by Samsung. Therefore, Samsung is able to capture a more substantial market level. Hence, not to forget about the diplomatic romantic relationship China had with the administrative centre city of Korea, Seoul that could be at an advantage at political program (Anon. , 2009).

9. 1. 2 Weaknesses

There are several weaknesses for Samsung like the increased expense for investment into research and development which reduce the net revenue for Samsung. In doing so, this could bring about Samsung in employing child labour as well to exploit employees in creation facility predicated on the allegations made against Samsung recently. On top of that, Samsung might not be able to protect its product because China have imitated and produced its similar products with an alternative brand name in China, yet along market them away globally as well although the quality might not be as strong as Samsung's. Furthermore, Samsung essentially focuses on the whole market somewhat than market niche categories and may well not fit its products with certain market teams.

9. 1. 3 Opportunities

There are opportunities in China whereby it accounted a huge market for consumers' goods and electric products. Therefore, Samsung is able to gain its competitive benefits by venturing into China anticipated to geographic location and the use of cheap and skilled labour. In geographic location, Korea is situated close to China and for that reason would give delivery and port edge which would bring about cost efficient which would be profitable because of the fact that China is a huge market and it's really well populated. In the other hand, the use of cheap and skilled labour permit Samsung to save lots of cost although they are allegations made towards the use of child labour against Samsung. Furthermore, skilled and educated employees can be employed through colleges in China because of their convenience.

9. 1. 4 Threats

There are several threats in the industry one of which is the lifetime of its opponents. Samsung's rival such as Apple Inc. and Sony would be the largest threat to fully capture a more substantial market in China. Therefore, to be able to stay competitive, these parties would make an effort to save cost in order that they could have a larger investment into research and development to produce better products in terms of quality and advancement. Thus, this led to Samsung exploiting workers to meet demands of the marketplace and was accused for using child labour and it'll definitely impact Samsung's image and branding which would give an advantage for its competitors. On top of that, Samsung being the overdue mover on the market will be a danger as well because of the high intensity in the market inclusive of the Chinese competitors which accounted of a huge percentage of the market.

9. 2 Hofstede's Dimensions

Hofstede's Dimensions were used to look for the cultural distinctions between two countries predicated on the 5 pushes like the electricity distance, the individualism versus collectivism, the masculinity versus femininity, the uncertainty avoidance, and enough time orientation. Hence, the causes as per above mentioned can be dependant on using the BRIC Geert Hofstede Ratings to study the various cultures before going abroad. Thus, this survey is to review the cultural differences between Korea, and China for competitive advantage.

9. 2. 1 Electricity Distance

In electric power distance, the Chinese in China have an increased power distance compared to the Koreans BRIC Geert Hofstede Ratings and this shows that the Chinese are aware of the higher government bodies that produce decisions knowingly that the bigger positions have significantly more experience and knowledge. Thus, their organizational set ups would seem to be to be bureaucratic and the low level employees may not make any decisions. In so doing, Samsung being truly a Korean company have a tiny gap between your scores in relations to the power distance and they're able to joint endeavors with Corning in China.

9. 2. 2 Individualism versus Collectivism

Next on individualism versus collectivism, both scores for China and Korea are relatively low and have the slightest space between one and another BRIC Geert Hofstede Scores. Therefore, it can be seen that both countries are collectivism whereby they used to make decisions collectively in a group. Thus, Samsung would be able to adjust with the Chinese language culture to make decisions in an organization without taking chances for making decisions singularly.

9. 2. 3 Masculinity versus Femininity

In masculinity versus femininity, the China would be referenced as masculinity whereas the Koreans are described femininity predicated on the BRIC Geert Hofstede Scores. This indicated that the Chinese wish to have more identification in terms of value as well to dominate its decision-making in the business for higher income. Therefore, the subordinates are anticipated to check out their superior purchases whereas the Koreas are less emphasized to the value of its status but are romance oriented in conditions of social norms.

9. 2. 4 Doubt Avoidance

BRIC Geert Hofstede Ratings, there's a huge difference between your Chinese and Koreans whereby the China can be discovered as risk taker whereas for the Koreans, are much likely a risk adverse. The huge difference in between mentioned that the Koreans would take due diligence and care in decision-making before taking initiatives. However, if Samsung is venturing into China, there would not be a problem because the decision-maker is with Samsung and therefore will make its decisions diligently prior to going into any arrangement to joint projects with Chinese companies whereby China will probably take risk in this case as long gains could be made regardless of being in a brief or a longer-term.

9. 2. 5 Time Orientation

In time orientation, the Chinese language would be going for a longer-term for decision-making unlike the Koreans that would take a shorter time predicated on BRIC Geert Hofstede Scores. Furthermore, this is because of the time had a need to make decisions collectively but however Koreans are would have a shorter time even though they make decisions collectively as well. Thus, the Koreans are likely to gain opportunities in China due to the fact that they are risk taker but might take a longer-time for getting the Chinese language companies to agree with the fact in certain extent as long they make profits.


There are several issues to be discussed about the international business of Samsung. It can be seen that the management tools to evaluate its business strategies were also damaged by the issues that arise regarding the use of child labour as well as exploiting employees in China which would have an impact on its brand and reputation all together. On top of that, Samsung were sued again for infringing its patent of Apple Inc. and was fined for about $1 billion. However, it could be a tiny amount for Samsung to tolerate the fine for lawsuits but what's costly is the brand that was affected through the sight of consumers.

In China, if consumers were seen that their own nationality of the Chinese language were being exploited by the Koreans in their processing plants, they might start boycotting Samsung products irrespective of its smartphones or other electronic products which would be detrimental to Samsung and it worsen if they propagate virally in the web as it offers bad image in the sight of consumers throughout the world. However, Samsung and its own suppliers were resistant to the allegations made by the China Labor Watch to protect themselves from phony allegations. Thus, these allegations were brought up in the recent September 2012 and there are no signs that Samsung will fail.

As for the infringement of Apple Inc. patent, there are questions that Apple Inc. would continue steadily to attack on Samsung on its product development and this would result in a high cost which is damaging in the long-run. You will find issues about the court situations as well whereby the courtroom were supporting of the Apple Inc. for suing Samsung however the UK as well as Japan's judge were encouraging Samsung indicating that the Samsung had not been infringing Apple's products.

In relationships to the issues as per above mentioned, it would affect other manufacturing crops predicated on different countries as well. In that way, it would have an effect on political regulations to avoid the use of child labour, as well as other regime that appears to be much stringent in order to examine proper procedures against the hiring of local employees. Thus, it may affect Samsung in overall in terms of its international business when it moves global elsewhere in the future.


Based on the evaluation of corporate strategies in Samsung and international business possibilities, it can be targeted into several aspects. For instance, Samsung have concentrated into expanding its main products in the mobile device industry which comes into several models such as Samsung Galaxy S's, Samsung Galaxy Notes, Samsung Galaxy Tabs, as well as the several Tabs can be used to make calls whereas Apple Inc. only targeted into its iPhones and iPads which only accounts a smaller market in comparison to Samsung. In doing so, Samsung can differentiate its product with a variety of models as entrepreneurs are keen to get Samsung Galaxy Note that includes a wider screen and in a position to organize its business plans through them. Therefore, Samsung have its blended low-cost and differentiated strategy to portion its consumers predicated on different needs with the low cost as is feasible compared to Apple's and other challengers' products.

Next, Samsung also offers the strategy to separate its collaboration with Sony in terms of its digital appliances to be able to target its product predicated on different categories. Hence, Samsung can develop its products based on consumers' needs also to invest onto profitable areas within the technology industry (Paracha, 2012).

Moving on to the analysis of international business options of Samsung, Samsung have taken opportunities to explore on unexplored market to get a more substantial market share. Inside the other hands, Samsung can promote corporate social obligations on poverty or developing countries to gain recognition as well to improve brand image. Therefore, Samsung is able to reinforce its brand throughout the nation and globally which will be a competitive gain.

Lastly, based on the allegations made against Samsung regarding the use of child labour and exploiting of employees in China, it could tighten its business options and opportunities throughout other provinces and this indicate negative aspect of business strategy if this wrongful functions are true. However, Samsung can overcome this problem by clarifying the problem in the multimedia or by running inspections on creation plants and suppliers or through maintenance and review the utilization of its labor force in terms of their working time, benefits and income given, as well of its welfare to be concerned.


In conclusion, it could be seen that Samsung has made good effort to capture a more substantial market in terms of its product development and advancement that provides them a competitive border against its competition. However, with the recent instances of allegations made against Samsung as well of being sued for infringing Apple Inc. 's product patents, it retains Samsung back at it could have an effect on its brand and reputation. Therefore, Samsung would need to clarify the problem and review as well to run maintenance to ensure individuals protection under the law of its employees are secured and to still contend with its extreme rival such as Apple Inc. and Sony, what more of Chinese language opponents in China which used to imitate products that could be harmful in the long-run.

Nevertheless, Samsung is an internationally brand and it's really strong in terms of its image as well of the relationship Samsung had with the consumers through various strategies and approach that could boost a higher sales margin. Furthermore, the financial positions of Samsung is strong and it permit Samsung to invest more into research and development to continue to strive and modify with the speed of IT development as well to meet consumers' needs for sustainability.

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