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Samsung Business Strategy

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Samsung Business Strategy

Samsung is one of the world's industry leaders in technology and consumer electronics. The keys to Samsung's success have been an aggressive and powerful marketing strategy, as well as quality products, effective pricing, and an impressive model of distribution. As the following example of Ultius’ essay writing services demonstrates, Samsung is a powerful leader in this global market. 

Samsung within the technology market

In the modern world of technology, many different companies are attempting to secure their market.  Some companies focus on software, others on mobile phones, some on televisions, and many other companies work in additional tech fields.  Perhaps one of the most recognizable names in the technology field is that of Samsung.  

Samsung’s success

This conglomerate has a diverse spread of products in the tech market, and has expanded its influences into many fields. Samsung is successful through the use of its vast resources and innovative strategies, which lead to the successful implementation of their business plan. These components allow the company to maintain its standing as one of the world’s leading technology companies, based on their largest branch, the electronics division.  

Samsung’s pricing/distribution model

Samsung has been able to maintain its place of dominance in the business world through

  • Effective use of its market by the means of distribution. 
  • Effective pricing. 
  • Utilizing a strategy which features intensive distribution, which results in its products available to the largest amount of potential consumers.  

This strategy makes particular sense for a company such as Samsung because their brand name has become both well recognized and received by the consumer population. This, in turn, allows potential buyers to feel comfortable knowing that the company’s products all meet a certain level of expectations regardless of where the products are originally purchased.  

Samsung’s success is well known:

  • In the third quarter of 2012, the Galaxy S III sold more units than either of Apple’s two products.  
  • Samsung sold roughly 18 million Galaxy S III’s, while Apple sold 16.2 million iPhone 4S’s and 6 million iPhone 5’s (McGrath, 2012).  

Responses to Samsung’s business strategy

Clearly the strategy of flooding the market with their product has been successful for Samsung, however the competition is attempting to hinder the company’s further success.

In response to such a wildly successful marketing, pricing, and retail strategy, Samsung’s leading competitor Apple has pressed charges against Samsung claiming that Samsung stole ideas and copyrighted information about Apple’s iPhone. The implications of these charges have yet to be fully realized, however these are serious accusations that could result in a ban for the Galaxy S III from being sold in the United States.  

Such a ban would be a crippling blow to Samsung as that mobile unit now forms the backbone of its profits in the mobile phone industry. This could not come at a worse time for Samsung, who has seen their market share increase dramatically over the last year from 18% to 36% of the 2nd quarter of 2011 (Trefis Team, 2012).  

Diversification of platforms and systems for samsung business

To combat these potential losses from the Apple lawsuit, Samsung has attempted to try a new strategy in terms of its mobile phone business ventures, through the diversification of its mobile phone operating platforms.  Unlike Apple, a company that exclusively produces units that run on one operating system, Samsung produces phones that run on currently three operating systems and may license a fourth.  If they do so, according to Nguyen, the company would have its corporate fingerprint on the following:

  • Android
  • Windows Phone 7
  • Bada OS (a operating system creating by Samsung itself) and 
  • WebOS (Nguyen, 2011) 

Concluding thoughts

By having products that function on all of these different platforms, the company allows itself to operate with flexibility so that they can focus on producing products that run on the most widely accepted operating systems for the general public.  

It is through the coupling of both an effective marketing, media, and retail strategy that Samsung has positioned itself for positive financial returns.  The success of their mobile phone (the Galaxy S III) has formed the backbone of their profits and marketing success, but the company has not stopped there.  By electing to remain both innovative and competitive in the pursuit of new technology, Samsung has placed itself in a position that will allow it to run on whichever future operating system proves to be the most effective.  By doing so, Samsung will remain one of the most successful and financially lucrative companies in the business world.            


McGrath, Dylan. "Samsung Galaxy S3 Top Smartphone in Q3." EE Times. Aug. 2012. n. p. Web. 16 Nov. 2012. 

Nguyen, Chuong. "Samsung's Mobile Strategy: Diversify." Gotta Be Mobile: Mobile News & Reviews. June 30. 2011. n. p. Web. 15 Nov. 2012. 

Trefis Team. "Samsung's Market-Flooding Strategy May Not Work Much Longer." Forbes. Sep 6. 2012. n. p. Web. 15 Nov. 2012. 



Ultius, Inc. "Samsung Business Strategy." Ultius | Custom Writing and Editing Services. Ultius Blog, 08 Dec. 2013. https://www.ultius.com/ultius-blog/entry/samsung-business-strategy.html

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Ultius, Inc. (2013, December 08). Samsung Business Strategy. Retrieved from Ultius | Custom Writing and Editing Services, https://www.ultius.com/ultius-blog/entry/samsung-business-strategy.html

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Ultius, Inc. "Samsung Business Strategy." Ultius | Custom Writing and Editing Services. December 08, 2013. https://www.ultius.com/ultius-blog/entry/samsung-business-strategy.html.

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Ultius, Inc. "Samsung Business Strategy." Ultius | Custom Writing and Editing Services. December 08, 2013. https://www.ultius.com/ultius-blog/entry/samsung-business-strategy.html.

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