Bargaining Power of Suppliers Suppliers are the sources of the raw material

Bargaining power of suppliers suppliers are the

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Bargaining Power of Suppliers Suppliers are the sources of the raw material that the company uses to make products. When the power of suppliers is high this will be a problem for the company and the competitive strength of the company will low and vice versa[Abh17], because the suppliers may affect directly on the price such as if they raise the raw materials price. Samsung power of suppliers is low because of many factors such as there are many suppliers for Samsung and the switching cost of suppliers is low, so Samsung push on its suppliers to give it in back high quality and low price. One of the power key of Samsung that it relies on its own of getting raw materials such as (screen, hard drive, and other components) to use in smartphone manufacturing. Samsung always creates strategic corporations with suppliers; about 72% of the total economic was shared with suppliers in 2014. Also, Samsung scope is to keep good communication channels with the suppliers through Dialogue Fair, Hotlines and Shared Growth Day and information meetings. Samsung had a sustainable supply chain by analyzing the supply using SWOT, PESTE and Value Chain analyses[Sam17]. Bargaining Power of Buyers Power of buyer's means that the customer can push to get better prices, quality and/ or service, for many reasons such as the customers are little, or there is a strong competition are high between. In the Samsung case, the power of customers is moderately high. Page 4 of 9
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PT3 Form Samsung facing few threats from the power of customer such as the switching cost are very low because there are many vendors; the advertising and marketing war between the brands are very high and the technology grow fast and if the company didn't catch the new technology it is will lose a competitive advantage. How Samsung deviate these threats, the vision of Samsung is devoted the people and technology to create superior products and services this is what makes Samsung icon in the electronics and telecommunication industry, Samsung creates loyal customers. Also what makes Samsung different is the design, always Samsung is leading to not just for new design but also new products. Rivals among existing firms Electronic and Telecommunication industry sees intense competition; there is a large number of big and icon brands, such as LG, SONY and APPLE. All of them in a war to get market share. What makes Samsung big threat for all other brand are many things such as the innovation of design came from people and technology which make Samsung Leader in the industry, the variety of products and industrial sectors and the strong competitive advantage forces that Samsung gained into its journey. Question Two: Sustainable Competitive Advantage Sustainable competitive advantage is the long-term advantage that is cannot duplicate easily from the competitors. It is an internal attribute of the organization could be human (such as experience or wisdom), financial (such as capital, price or revenue), physical (such as design or production line), and organizational (such as brand name or the history
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  • Winter '16
  • Br. Philip Balaria
  • Samsung Electronics, Samsung Group

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