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1st Issue: Although Samsung has diversified its resources and expanded its operations in Asia, it is still heavily dependent on the American markets. The American economy is very unpredictable, and another recession could put Samsung's revenues in jeopardy and can damage its operational resources. This has been proven to be one of Samsung's weaknesses.
2nd Issue: Samsung has strong competitors in the smartphone sector and a lot of new Chinese brands are rapidly progressing in the market. Whether it's Xiaomi, Oppo or Huawei, all the technological competitors are outperforming each other to become the best technology company. This comes off as a threat for Samsung.
There are a lot of business strategies that are being utilised by firms such as:
- Five generic competitive strategies
- Strategic offensives
- Blue ocean strategy
- Strategic defensives
- Vertical integration strategy
- Diversification
Question: Choose 2 strategies to solve each issue and explain how Samsung can utilise them. Please provide the references for your answers.
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