External and Internal Environments

External and Internal Environments
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Introduction
Samsung Electronics Company is a worldwide leader in technology which opens new possibilities for people all over the world. The company through persistent innovation and discovery, it has transformed the worlds of Smartphone, tablets, TVs and other products. The company was started in Tageu, Korea as a small business exporting dried Korean fish, fruits and vegetables to Beijing and Manchuri. The company has now grown to a global leading electronic company. The company has come up with a strategic partnership with blackberry as a way of providing End to End safety measures for android. With KNOX, Samsung developed diverse Android devices with capability of safeguarding enterprise data with numerous layers of software and hardware-based protection. Blackberry on the other hand brings to the partnership EMM (enterprise mobility management), a class-leading cross-platform which is a highly secure option of mobility. Together, the two companies offer enterprises endowed with new as well as extremely secure mobility option (BlackBerry, 2014).
Samsung Electronics Co. Ltd and its subsidiaries are involved in information technology, mobile communications, consumer electronics and device solutions businesses globally. Some of its products include mobile phones, television, tablets, DVD players, Blu-rays, home theaters, Bluetooth speakers, and home appliances such as air conditioners, refrigerators, microwave oven, washing machines, ovens and dishwashers, mini components such as camcorders and cameras, PC/printers/peripherals such as tablet PC, chrome devices, notebooks, monitors, laser printer/multifunction and optical disc drive, storage and memory products such as memory cards, accessories and computer products. The company is also involved in the production of health care products such as ultrasounds, digital X-ray, in-vitro diagnostics, large format displays, hospitality displays, LSI products (such as smart card IC, display driver IC, field communication IC, microcontroller units and system-on-chip, foundry services as well as mobile devices’ application processor), LED lighting solutions ( such as lighting packages, display panels, dashboard and exterior lighting, engine, retrofit lighting and drivers), OLED and LCD panels. The company also engages in hosting cyber game match, manufacturing semiconductor components, and technology business undertaking capital investment, as well as offering repair services for electronic devices. In addition, the company offers general logistic agency services; sponsors games and sports team, dental CT, medical equipment, software, credit management and manufacturing optical cable/fiber (Bloomberg 2015).
For the success of every business, customers are the key players. Companies should therefore capitalize on understanding their customers. Today, many companies have diverted from mass marketing and are opting for market segmentation as well as targeting. Segmentation involves splitting a market into various groups of consumers depending on their distinct needs or characteristic that necessitates marketing mixes or individual products. Through market segmentation, companies are able to breakdown heterogeneous markets into minute homogenous market segments which are reachable in a more successful way. Since consumers’ needs diversify with time, companies need to know the buyers so that they can form effective segmentation.
There are several dimensions of segmenting the market and they include: geographical segmentation which is based on sub-dividing the market into several geographical areas like regions, nations, cities or even continents; demographic segmentation which is based on family size, gender, age, education and income; psychographic segmentation which is based on lifestyle, social class and personality characteristics; behavioral segmentation which is based on benefit segmentation, occasion segmentation, intention to use and service usage (Kotler, 2003).
All the above general environmental segments influences the market of Samsung products but demographic and consumer behavior have been ranked highest in their influence. Consumers’ behavior is characterized by their choice on products and services present in the market depending on their assessment of greater value. This means that they go for the proposition that possess the benefits they want and at price perceived as offering superior value for money. The characteristic that affects consumer behavior includes social, cultural, psychological and personal factors. Cultural factor is a significant determinant of an individual’s wants and behavior. According to Kotler (2003), cultural factors exert the deepest and broadest influence of buyer’s behavior. These is because every individual acquires a set of beliefs, values, preferences, perception and behaviors which are held throughout one’s family, neighborhood or institutions and which happens to be the foundation of cultural value. Social groups also play a big role in influencing the behavior of a consumer and it consists of reference groups such as family, neighbors, friends, co-workers, social rules and status. These have a big influence on an individual’s behavior because they have an intense contact hence will have influence on what an individual purchases or uses.
The stage of personal life cycle is another factor that shapes the behavior of a consumer. Such stages may include young singles, young married, recently divorced, same-sex couples or aged. Personal life-cycle stage influences consumer’s taste in products. Other factors such as income and level of education influence a consumer in choice making for the products and services to be bought. Psychological factor has effect on consumer’s behavior through four main ways which include motivation, perception, learning and lastly beliefs and altitude (Kotler, 2003).
The other segment that has greatly influenced Samsung market is demography. In the segment of demography, the market is sub-divided into various groups based on various variables such as family life cycle, family size, age, gender, occupation, income, religion, education, generation, nationality, race and social class. In most cases, demographic variables have been the most popular dimensions for identifying customer groups. This is because consumer’s wants, usage and preferences have been linked to demographic variables. Secondly, it’s very easy and convenient to measure and in most cases vary closely with and needs of consumers as well as their usage rates (Ferrell and Hartline 2008). While the target market is identified by the use of non-demographic terms, linking to demographic characteristics is needed as a means of profiling the market segment through estimating the size of the market as well as selecting the appropriate media for reaching out to the segment.
Age is a frequently used way of segmenting markets and through it, the market is delineated. Gender difference is also put into consideration by marketers as men and women tend to have disparity in attitude and behavior orientations. The social economic status or consumer’s income is also a significant demographic variable as it determines the affordability of a good or service by consumers. Economic status is dictated by consumer’s personal income, their household income, their employment status, their disposable income as well as their assets net worth. People in a similar part of life cycle ma...