No one market entry strategy works for all international markets. Direct exporting may be the most appropriate strategy in one market while in another you may need to set up a joint venture and in another you may well license your manufacturing. There will be a number of factors that will influence your choice of strategy, including, but not limited to, tariff rates, the degree of adaptation of your product required, marketing and transportation costs. While these factors may well increase your costs it is expected the increase in sales will offset these costs.
We strive to devote our people and technology to create superior products and services, thereby contributing to a better global society. Working closely together with customers, building strong ties to the local communities we serve, and responding creatively to future challenges, are principles deeply instilled in the minds of our employees.
History of Samsung Electronics Co. The company sells televisions, video, and audio equipment; computers and related products; phones, cellular phones, and fax machines; home appliances; semiconductors; network-related products; factory automation products; fiberoptics products; closed circuit security products; motors and compressors; and solar energy systems.
The unit was established as a means of getting Samsung into the burgeoning television and consumer electronics industry. The division's first product was a small and simple black-and-white television that it began selling in the early s.
From that product, Samsung Electronics gradually developed a diverse line of consumer electronics that it first sold domestically, and later began exporting.
The company also began Samsung entry strategy china out into color televisions, and later into a variety of consumer electronics and appliances. By the s, Samsung was manufacturing, shipping, and selling a wide range of appliances and electronic products throughout the world.
Although the rapid growth of Samsung Electronics during the s and early s was impressive, it did not surprise observers who were familiar with the Samsung Group, which was founded in by Byung-Chull Lee, a celebrated Korean entrepreneur.
He called it Samsung, which means 'three stars' in Samsung entry strategy china. The company enjoyed moderate growth before the Communist invasion in forced Lee to abandon his operations in Seoul.
Looting soldiers and politicians on both sides of the conflict diminished his inventories to almost nothing. With savings contributed by one of his managers, Lee started over in and within one year had grown his company's assets fold.
Lee established a sugar refinery ina move that was criticized at the time because sugar could be easily obtained through American aid. But for Lee, the act was important because it was the first manufacturing facility built in South Korea after the Korean War.
From sugar, wool, and other commodity businesses, Lee moved into heavier manufacturing. The company prospered under Lee's philosophy of making Samsung the leader in each industry he entered. From manufacturing, Samsung moved into various service businesses during the s, including insurance, broadcasting, securities, and even a department store.
Lee experienced several major setbacks during the period. The charges turned out to be the fabrication of a disgruntled government official to whom Lee had refused to pay a bribe. Nevertheless, one of Lee's sons was arrested and Lee was forced to donate a fertilizer plant to the government to win his release.
Despite that and other problems, Samsung continued to flourish.
Shortly after Lee's son was arrested, Lee decided to break into the mass communication industry by launching a radio and television station, as well as by manufacturing televisions and electronic components through the Samsung Electronics division.
The industry was dominated at the time by several U. Nevertheless, Lee was confident that Samsung could stake its claim on the local market and eventually become a global contender.
During the early s, the company invested heavily, borrowed and coaxed technology from foreign competitors, and drew on its business and political connections to begin carving out a niche in the consumer electronics industry.
In addition to televisions, Samsung branched out into other consumer electronics products and appliances. Government Involvement During the s Samsung Electronics' gains during the s were achieved with the assistance of the national government.
During the s and s, Samsung and other Korean conglomerates struggled as the Rhee Sungman administration increasingly resorted to favoritism and corruption to maintain power. Student revolts in the s finally forced Rhee into exile. The ruling party that emerged from the ensuing political fray was headed by military leader Park Chung-Hee.
His regime during the s and s was characterized by increasing centralization of power, both political and industrial, as his government was obsessed with economic growth and development. So, while Park was widely criticized for his authoritarian style, his government is credited with laying the foundation for South Korea's economic renaissance.
To develop the economy rapidly, Park identified key industries and large, profitable companies within them. The government worked with the companies, providing protection from competition and financial assistance as part of a series of five-year national economic growth plans.
By concentrating power in the hands of a few giant companies the chaebolsPark reasoned, roadblocks would be minimized and efficiencies would result. Samsung Electronics and the entire Samsung chaebol were beneficiaries of Rhee's policies.
Several countries, including Japan, were barred from selling consumer electronics in South Korea, eliminating significant competition for Samsung.
Furthermore, although Samsung Electronics was free to invest in overseas companies, foreign investors were forbidden to buy into Samsung. As a result, Samsung was able to quickly develop a thriving television and electronics division that controlled niches of the domestic market and even had an edge in some export arenas.
During the s and s, Samsung Group created a number of electronics-related divisions, several of which were later grouped into a single entity known as Samsung Electronics Co.
Samsung Electron Devices Co.The essential tech news of the moment.
Technology's news site of record. Not for dummies. Get the latest science news and technology news, read tech reviews and more at ABC News. Samsung Group (Hangul: 삼성; Hanja: 三星; Korean pronunciation:) is a South Korean multinational conglomerate headquartered in Samsung Town, Seoul.
It comprises numerous affiliated businesses, most of them united under the Samsung brand, and is the largest South Korean chaebol (business conglomerate). Samsung was founded by Lee Byung-chul in as a trading company. Samsung’s Global Management and Management Strategy in East Asia Samsung’s overseas operations entry into local markets - Produce high-price-range products Adopt a two-way sales strategy.
¾Export of products made in China directed by the Head Office in Korea. Samsung wants to be the dominant player in the smartphone market, it has a strategy to do so, and it's using every tool it has as it attempts to succeed at it.
Market Entry Strategies. On the plus side this entry strategy will immediately provide you the status of being a local company and you will receive the benefits of local market knowledge, an established customer base and be treated by the local government as a local firm.