Samsung Porter's 5 Forces Essay

905 Words Dec 15th, 2013 4 Pages
INTRODUCTION:

Samsung Group of companies was found in 1938 and major leading company to provide financial and manufacturing services. Since 1980 it has made vast development in semiconductor and electronics industry. Samsung has made remarkable growth in net profits since last two decades. This is regarded as the ways of Samsung conducts the business and strategic INFORMATION MANAGEMENT is the pillars of the entire business at Samsung. For a long period relationships between corporate strategy and information systems; Top management of the firms were not much interested. Information management systems are to be thought as same to corporate data processing and support the daily routine functions
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This is Samsung’s first LCD television to sell more than 1m units. However, it is not all flash and glamour: Up until recently Samsung’s memory division was responsible for 70% of the profit but overcapacity has led to an industry wide decline. Undaunted however, Samsung, which often makes big investments during downturns so that it can increase its market share and make bigger profits when the industry cycle picks up, is raising its capital investment in this division. As peers cut back this is a bold move that signals a strong confidence in the eventual upturn of the memory market. With a brand value now greater than Sony, it is clear that Samsung’s strategy of delivering high quality products with an emphasis on design is paying off and the company is confident of its future performance. Time and again Samsung has proved it is able to look into the future and create what’s just around the corner for the rest of us PORTER’S FIVE FORCES MODEL:

FIVE COMPETITVE FORCES SHAPE FATE OF FIRM: A company needed as many as possible to neutralize the five forces to generate a well competitive advantage. Porter's forces (Porter, 1998) are used basically for the attraction of industry and searches sources of its competition. These forces are dependent on each other and Samsung like industries must know the connection between these forces.

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