MNE has specific expectation for each of its foreign
subsidiaries, cooperative ventures and other
forms of operation mode in terms of market performance and
contribution to total profit and
competitiveness. Evaluate the predicament that may affect holistic
performance management
implementation.
please provide reference
word count around 200-400
Market performance is subject to economic changes as well as political factors, cultural factors, technological factors, environmental and legal factors.
MNE like Samsung faces host of issues for its subsidiary across the globe and the global competitive analysis is shown below where what factors affect its overall growth :
Five Forces
Analysis:
Bargaining power of Suppliers - Many suppliers in this segments
offer low cost services which means bargaining power is less for
suppliers.
Bargaining power of buyers- Sijce Samsung operates either in
perfectly competitive market or Oligopolistic market across globe,
buyers have higher choices and hence higher power.
Threat of New Entrants- Since new entries from lowcost Chinese
providers can eat up Samsungs share due to ease of taxation and
licensing, threat is higher substantially.
Threat of rivalry between existing firms- This is comparatively
very high as margins are wafee thin and innovation is constantly
evolving making it difficult for the industry as whole.
Barriers to entry- Large initial investment, high marketing and
distribution spends, constant innovation are biggest
barriers.
Pestel Analysis :
Political - India, South and North Korea ar emost errant markets
with high taxation and compliance and warfare tensions.
Economic - global economic degrowth and stagnant growth in mature
markets is cause for worry.
Socio cultural - changing consumers preference and strong core
culture is what Samsung has coped up with and reoriented itself
across global markets to stay ahead of curve.
Technological - Wide-spread innovative solutions from competitors
like Apple, Huawei, Vivo, Oppo, Xiaomi have threatened Samsung and
portfolios. However Samsung has been fast mover and easily stays
ahead of curve with its unparalleled premium segment and upscale
technologies which competitors match too lately.
Legal- the recall of Samsung S9 has been highest litigation based
loss because of malfunctioning and lack of quality checks and also
copyright infringement issues with Apple make it very cumbersome
and difficult to deal with.
Environmental - the organisations has been keen ethical player and
truly abides environmental laws.
Strengths
Global brand image
Economies of scale and cost leadership
Highest patent growth
Innovation and design capability
Weakness
High dependent on OEM
Product cannibalization due to less differentiation
Focus majorly on high prices and premium segment
Opportunity
Tieups with Telecommunications operators for handset SIM
selling
Focus on rural markets
Focus on low price segment
Focussing on diversified products like smartwatches, IoT products,
Smart sensors, Smart devices
Threat
Chinese products and hypercompetition
Uncertainty in government policies
High taxation
Retail markets collaboration with low cost players and private
labels.
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