Samsung Electronics Multinational Conglomerate Company - America Market

UNIVERSITY OF LA VERNE

La Verne, CA

Samsung Electronics multinational conglomerate company

America Market

Professor Changho Lee

BUS 581 Managing In a Global Economy

Kai Yu 11787368

Fan qi Yu 11760458

Chihchen Huang 11785906

Ye Ma 11021984

Houliang Chen 11756256

College of Business and Public Management

Department of Business Administration

Company Overview

On 1969, Samsung Electronic was founded in Korea by Samsung group. At present, Samsung Electronics has become one the best enterprise in the electronic industry. Samsung Electronic belongs to Samsung group. This global 500 enterprise is the proud and the symbol for the Korean. In the world famous 100 brands, Samsung Electronics is the only Korean brand which is considered as the Korean cultural industry. Samsung Electronics is an electronic multinational company which produce its own electronic products such as television, camera, monitor, and cell-phone and so on. In addition, it also produces the components of the electronic products for Sony, Apple and so on.

This biggest subsidiary of Samsung Group has 370,000 employees worldwide and collect more than 50% revenue of its parent company which is accounted by 0.2 billion dollars. Decades ago, Samsung Electronic aimed for compete with the Japanese enterprises. Since 2009, Samsung Electronic had become the second biggest cell-phone company. Moreover, it went up to the top technological corporation by beating HP and Siemens. Samsung Electronics has a meaningful symbol. It use blue as its enterprise symbol because this color represents more stability and trustful, it implies the meaning of closer to the clients. Meanwhile, it also symbolizes the responsibility to the society. Its English symbol design implies that using innovation of technology to service the customers. Besides, it shows the image of Samsung as the advanced technological enterprise.

Motivation

The motivation for Samsung Electronics to enter the American market is the market-seeking behavior. There are three traditional motivations for a multinational corporation to expand abroad. For starters, the need to secure key supplies, obviously Samsung Electronic produces their own electronic components. The second motivation is the desire to access low-costs factors of production. As we all know, American labor is way higher than the world labor average so that this would not be the motivation for Samsung Electronics to enter the American market. Last but not the least, market-seeking behavior, which is exactly motivation for Samsung Electronics to enter the American market. America has 3rd most population and dimension in the country which is also the country with the largest gross domestic product.  

Moreover, according to the Mashable, 56.4 percent people in Untied States had smart-phones in 2014. All these data indicate that the American electronic market would provide great profit for Samsung Electronics. Besides, there are many outstanding electronic American companies. Although the competition is intense, it shows the power of Samsung Electronics to be able to gain certain market share in this market. For example, Apple's IPhone has always been the competitor with Samsung smart-phones. We can always read the news about iPhone 6 versus Samsung Galaxy S6, iPhone 5s versus Samsung Galaxy S5. Moreover, those laptop and desktop competitor such as Mac, HP, and Dell are competing with Samsung's computer. Last but not the least, Samsung TV is competing with Vizio and those Japan-based companies such as Toshiba and Sharp which manufacture their Televisions in United States.

Although Samsung Electronics is not grabbing absolute market share in the American market, it earns a great profit and reputation in the American market. Since we are the international students who studied in American, we had plenty of electronic experience in the American market. Generally, there are two ways to obtain your target electronic products: online or offline. Furthermore, you do not have to go to the specific brand official website or retail store. For instance, if you are planning to buy it online, you can go to Amazon, EBay, and Newegg and so on. Those websites have different prices with the same type of products. Hence, more choices will provide more sales.

On the other hand, an offline option will be BestBuy, Costco, and Walmart and so on. Although we seldom find a Samsung retail store, we can easily find those stores. They save the cost of setting up retail stores for Samsung Electronics. These conveniences make the American shopping environment attract Samsung Electronics to enter. Market-seeking behavior is defined as a multinational corporation which has its own core technology or intrinsic value and competitive advantage to the industry. With regard to the achievement of Samsung Electronics, it had proved that itself an outstanding multinational corporation. Moreover, the American market shows huge profitable space to Samsung Electronics. There is no doubt that Samsung Electronic would have expanded into American market.

Political & legal environment

Samsung Electronics has almost dabbled to every products related to electronic. From a cell-phone processor to a popular smart-phone, an electronic components to an electronic products. All these designs, productions, unveiling will cause a bunch of political and legal issues. For starters, Samsung's electronic products led to many plagiaristic problems. On April 15, 2011, Apple sued Samsung for patent infringement. Apple accused Samsung Electronic that the design of IPhone and IPad were stolen by Samsung Electronics. On the other hand, Samsung Electronic fights back Apple and charged Apple in Korea, Japan and German with patent infringement as well. However, Samsung ended up with cancelling a bunch of unveiling of its products in German. During these actions at law, Apple and Samsung Electronic had a couple of negotiation. Nevertheless, either of the negotiation had satisfied both companies. Apple and Samsung Electronic involved in lawsuit once again on August 20, 2012. As a result, the juries determined that Samsung Electronic invaded Apple several practical patents. Moreover, they indicated that some of the Samsung smart-phones faded the commercial value of the exterior of IPhone. The juries judged that Samsung Electronic would need to pay 1.51 billion dollars for the loss of Apple. Furthermore, Samsung Electronic had to abandon some of their design in order to avoid patent infringement.