Assignment 2: External And Internal Environments – Samsung

Samsung is a South Korean publicly traded company (ticker: SSNLF on NYSE) where in America is headquartered in Ridgefield Park, New Jersey, and was founded in 1938 (Samsung (1), n.d.). Since then, Samsung has grown into a global information technology leader, managing more than 200 subsidiaries around the world. (Samsung (2), n.d.). Samsung is today one of the largest tech companies in the world. The company offers a variety of products including home appliances such as TVs, monitors, printers, refrigerators, and washing machines as well as key mobile telecommunications products like smartphones and tablet PCs (Samsung (3), 2013). Today, the company has the following divisions in the U.S.: Consumer Business Division (CBD), Enterprise Business Division (EBD), Samsung Telecommunications America (STA), Samsung Semiconductor, Inc. (SSI), Samsung Information Systems America (SISA), and Samsung Austin Semiconductor (SAS) (Samsung (2), n.d.). Last year the company had a net profit of $17.26 Billion (Bloomberg, 2013) and its current U.S. stock price was $1450.00 (Bloomberg, 2013) How Segments of the General Environment affect Samsung? Samsung operates in the tech industry, and is an electronic company that makes and distributes high-tech products around the globe. All segments of the general environment influence the company, but the technological and demographic segments rank highest in their influence on the company. Is important to know that the company has no control over the demographic segment, only on the technology one in which the company has to be up to date in order to create successful strategies. Out of these two segments the technological is the one that has the most influence. The most important aspect of this segment is innovation. “Innovation distinguishes between a leader and a follower” Steve Jobs, (Woo, 2013). Samsung is dedicated to develop innovating products,
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SAMSUNG therefor they are constantly seeking new technology in order to keep ahead of its competitors. An example of this is the new smart watch or Samsung Galaxy Gear. This innovating product is going to revolutionize the tech industry. Some industry analysts are predicting that the smart-watch is going to be a boom, especially with Apple expected to enter the market in 2014. Canalys estimates the smart-watch market will exceed 5 million shipments in 2014 (Canalys, 2013). Samsung is the first to introduce this product to the market. By developing this new market for its products, it achieves strategic competitiveness, earn above-average returns, and remain ahead of competitors (Bodie, 2013). You can see that by having control of the technological segment the company performance will im

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