Therefore Samsung faces a higher level of threat from the existing rivals

Therefore samsung faces a higher level of threat from

This preview shows page 4 - 7 out of 20 pages.

Therefore, Samsung faces a higher level of threat from the existing rivals. Supplier Power Galpin, Whitttington & Bell (2015) remarked that supplier power indicates the capability of the vendors to bargain on prices charged for the raw materials. Due to the presence of a large number of raw material suppliers and low switching costs, the negotiating capacity of the vendors is low; thus, Samsung enjoys a low threat from the suppliers. Buyer Negotiating capability As the customers have greater access to information and shopping platforms due to more competitor companies and online sites, the buyer capability of bargaining is on the higher side, thereby posing a high threat to Samsung (Xiaowen, 2016). Threat of Substitution Dobrivojevic (2013) stated that threat from substitute items reveal the alternative solution through which the customer can get the things done. However, in the case of mobile phones and electronics, a large number of substitute products emerge in the market constantly due to technological advancements, thereby posing moderate to the high amount of threat to Samsung. Student ID
Image of page 4
20 Sustainable Strategy: Samsung The threat of New Entry Alrawashdeh (2013) elucidated that extent of competition rises due to the new ventures in the same domain, thereby threatening the market expansion of the company. In the case of Samsung, which deals with electronic gadgets, the threat of new ventures is low. Jacobsson (2012) highlighted that barriers to entry in the electronic market are relatively higher as it requires higher investment and more finances to outcompete with the giant multinationals like Samsung. Further, the cost of research and development is also comparatively higher than in other industries. Table 1: Porters 5 Forces Framework: Samsung 3.0 Strategic capability of the firm using VRIN: Physical Resources As per Johnson, Whittington & Scholes (2011), strategic capability indicates the competency of the multinational to utilize and exploit the resources, skills, and assets available to acquire a competitive advantage over the rivals and augment the value of the company in total. One of the techniques widely used by the researchers for evaluating the business environment and assess the strategic capability of the firm is VRIN. Hamel & Prahalad (2013) added that VRIN is employed as an assessment technique to precisely gauge the internal facets of the organization and its probable areas of expansion, as well as divestment. The strategic capability of Samsung that will be analyzed using VRIN is the physical resources of the company. The physical resources of Samsung will identify the product designs, specifications, patents, raw materials, infrastructure, machinery, computer system, and the database. The physical resources of Samsung are one of the Student ID
Image of page 5
20 Sustainable Strategy: Samsung greatest strategic capabilities of the brand as the image of the firm is known to its customers due to the quality of electronics it offered since the time of its origin.
Image of page 6
Image of page 7

You've reached the end of your free preview.

Want to read all 20 pages?

  • Summer '20

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes