Samsung Growth Strategy Essay

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Introduction
Growth Strategies are strategies that help entrepreneurial ventures to increase turnovers, employment and volume (Abubakar, 2014). Entrepreneurs need growth strategies because they want their businesses to grow in order to survive in the competitive market. However, this is not the only reason why their businesses should grow. Growing ventures satisfy the ego of entrepreneurs as they will capture economic scale which lowers the average cost of production, win larger market shares, gain more power, lead the market and become the brand leader. There are many different types of growth strategies and they can be divided into two groups, organic (internal) growth strategies and inorganic (external) growth strategies. This essay aims …show more content…

The first business Samsung did was textile, the organization started the insurance business in 1958 and the Joong-Ang Development (Samsung Everland today) was established in 1966. In 1969, the venture released that they wanted to diversify their business into a completely new area, which is the electronics industry. Therefore, the Samsung Electronics was established. In 1970, the first product released by Samsung Electronics was a black-and-white television and after two months the product was exported to Panama. At the same time, Samsung-NEC was established by joining with NEC Corporation and they started to produce home appliances and audio devices. The 137 trainees from Samsung Electronics were sent to Sanyo Electric and NEC to learn their technology. Samsung Electronics controlled its production line in 1971, which allowed it to manufacture its own products. As the demands of the product kept increasing so it established two black-and-white television lines with a capacity to produce 480 thousand televisions a year. In 1973, the first Samsung-developed television named Maha-506 was produced and this product became extremely popular in South Korea. The television market was so successful that Samsung Electronics became more confident. Samsung Electronics expanded its business into other electronics categories such as air conditioners, refrigerators, record cassettes and AM/FM radio-cassettes in 1974. Those cassettes were exported to the United States of America for the first time. In 1978, the Samsung’s overall exports reached 100 million dollars. In 1979, Samsung Electronics started mass production of microwave ovens. (The Successful Story of Samsung Electronics, 2012; The History of Samsung Electronics 1, 2012; The History of Samsung

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