Global Environment Of Samsung

Global environment as defined in chapter four of our textbook as a set of forces and conditions in the world outside an organization’s boundary that affect how it operates and shape its behavior. Such forces evolve as time does and create opportunities and threats for the organization. Examples of some opportunities may be new technology that is as good as the current or better than what is already available to consumers. This technology may be designed, created, and produced cheaper than what is currently on the market. Opening successful new facilities internationally is another example of opportunities for organizations in the global environment. Threats for such organizations may be a competitor opening with comparable products for …show more content…
They spend money and use resources to develop components for competitors. In other words they are a supplier for the competitor before entering the market. This gives Samsung the advantage of understanding the industry for a product or service before they launch their own. Gaining this understanding allows them to duplicate said product for consumers with the knowledge of what works and what doesn’t eliminating some trial and error that other organizations must go through to develop a successful product for consumers.
Samsung has facilities all over the world which helps control potential threats of other companies entering the global market. They already have a presence in over 70 countries, and educate their employees on products, process, and people. Educating managers on global management gives them an upper hand for entering new global markets. (Epstein, …show more content…
This strategy has also proven to be effective for them. Financially it is a smart business decision as it enables the organization to stay in the market even if they were to produce a smartphone that did not sell well. As it would give them time to come out with something else. In preparation for the smartphone industry to slow down, Samsung has already begun working on other products to stay the leader in global markets. Technology is so advanced today, that organizations must have a team dedicated to creating new devices. This team has to be extremely creative to stay ahead of what consumers want, even when the consumers don’t know what they want. This is very difficult for many companies as it is a very expensive investment. Samsung and Apple are both very strong financially and committed to this strategy therefore, they have been able to maintain the majority of the market share worldwide.