of money for running advertisement to attract the consumer and build up their brand reputation.Counterfeit product is common issue for every country especially in China. Counterfeit product is fake replicas of the real product and it affect the consumer reliable on the real brand product. According Edgar Cervantes reporting, fake Samsung smartphone batteries is spreading out of control in Shenzhen in 2015 (Cervantes, E. 2015). This incident is seriously damaging consumer reliable on Samsung product and Samsung need take law protection for their product and prevent the incident continuous happen.Fluctuation of the world foreign currencies is one of external factor that Samsung could manage. Foreign currencies could impact by the oil price or country political issue. Samsung smartphone will be affect by this threat because of currencies exchange. For example, In exchange rate WON to USD with 0.00088, Samsung could earn 14.4 million, but while exchange rate WON to USD with 0.00078, Samsung could earn 12.4 million. Therefore, Samsung indeed have emergency plan for this threat for minimum thegaps of exchange currencies with another country.
SECTION 4: VRIO Framework & AnalysisCapabilitiesValueRarityInimitableOrganizationSupportProduct BrandYesYesYesYesProductionmanagementYesNoYesYesTechnologicalAdvancementYesYesYesYesMarketing andPromote strategyYesNoNoYesProduct BrandSamsung Newroom indicate Samsung has continually demonstrated growth in brand value and ranking of seventh in Interbrand’s Best Global Brands. Samsung implement consumer-centric marketing activities and innovation were deemed to strengthen the company’s brand power and drive growth in the corporate brand value.(Samsung, N. 2016)Production ManagementProduction management will not a rare thing for Samsung because many organization isimitate concept on production management. Samsung have high production component
capability for their product. Hence, Samsung is not rely on third party manufacturer tosupply back component they need. (Yoo-chul, K. (2015)Technological AdvancementSamsung is one of high tech manufacturer and leading innovator on smartphone inmobile industry. Samsung product have recognized by consumers as a high value andrarity and often unable imitate their design pattern and technology. For boost innovate aproduct, Samsung will received the support and subsidy from their government. (Wan, L.and Yi-geun, R. 2014)Marketing and Promoting strategySamsung is putting a lot of effort in marketing and promoting in electronic and mobileindustry. On spread brand awareness, Marketing and promote strategy is not rare strategyfor every smartphone manufacturer. However, Samsung is advertise their product withunique advertisement strategy to boost their brand awareness and increase their revenue. Conclusion
ReferenceSamsung, N. (2016). Samsung Electronics Ranks 7th in Interbrand’s Best Global Brands 2016. [online] News.samsung.com. Available at: -best-global-brands-2016 [Accessed 17 Oct. 2016].
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