Description of the Organization
Samsung Electronics is one of the major affiliates of the Samsung group and it specializes in the manufacture of mobile and smart phones. In addition to being the largest manufacturer of smart phones since 2011, the company has been the largest manufacturer of television sets in the world since the year 2006. The company also manufactures electronic components such as machine chips, flash disks and hard drives, semi-conductors and lithium-ion batteries for other companies such as Apple, HTC, Nokia and Sony. Following the success of its Galaxy line of android phones, the company went on to manufacture tablets and pioneered the phablets through the Samsung Galaxy Note devices. The successes of the company have seen it becoming recognized internationally and based on its revenues, the company has successfully become the second largest company in the information technology industry.
Being one of the leading electronic manufacturing companies in the world, Samsung is dedicated to creating new technology and coming up with new alternatives to the existing problems in the electronics industry for the benefit of their customers. The company is also dedicated to being a pioneer to innovation and these commitments are indicated in the company’s mission statement which states “Inspire the world, create the future”. This shows that the main mission of the company is to become the creative master and inspire the world through innovation and the introduction of new products into the market. Its vision is to inspire the world with its creative prowess and grow together with the rest of the world. It plans to become classified as one of the top five brands in the world. Its main goal it to become the leader in the telecommunication industry.
Strategic communication can be defined as exchanging information of a plan, idea, process or concept that, when applied has the potential to put an organization in a position to achieve its main goal. Strategic communication has several aspects but the can either be internal or external. Samsung Electricals has failed in its communication strategy with the members of the public but excelled in internal communication. Samsung executives have often been accused of ignoring the media and shying away from the public eye. Whenever there is an issues under scrutiny by the media, these executives tend to respond vaguely and do not really offer enough information to the public and as a result, a large section of the consumers do not have complete faith in the company. This failure was reflected in its failure to address the issue of the exploding Note 7 devices. This allowed negative press to dominate the airwaves and this could cost the company more than $5 billion. Their failure to address the issue saw a drop in consumer confidence with most consumers defecting to their direct competition. This will have a negative long-term effect on the company’s position in the market.
The company has, however, performed excellently in its internal communication efforts. In 2014, for instance, the company had plans to introduce a pensions plan to its employees. The company embarked on a vigorous program termed Pension Month, where the company persistently distributed information on the pension plan to its employees. It attempted communication through video streams and text messages, emails and even branded napkins and other materials to stimulate conversation among the employees. It also held workshops where they educated the young employees on the importance of the pension scheme. This saw more than 90% of their employees becoming registered while others even increased their monthly contribution. This saw the company receiving the Most Strategic Communications Award. A company whose internal communication strategy has been proved to work as efficiently as Samsung’s has the potential to rise above the competition and deliver the best quality of products to its customers.
Another important concept of strategic communication is marketing. Marketing helps the organization to achieve its goals by providing the information about the products that the company has for its consumers. Samsung has successfully become ranked among the best companies in the information technology industry and this is partly due to the fact that among its competitors, it has the largest marketing budget. Its marketing strategy comprises different forms of advertising, events organization and public relations. Advertising is among the core elements of the company and it has put a lot of time and finances to ensure that they outperform their competitors. The company uses all modern forms of advertising, including live event advertising and the use of social media. The company has formed partnerships with other corporations such as Fox and this saw 30-second clips being streamed during major live events worldwide. Viral marketing followed by issuing printed advertisements are also some of the other means of advertisement that the company has employed. Newspaper articles and journals have also been used to promote their products and also directly attacking their competitors. By engaging in these activities, the company has ensured that it communicates the latest products to their consumers. This also generates a lot of attention to the industry, making people who were not aware of their products to be aware, thus capturing a new market (Lee, 2014).
Assessment and recommendations.
Organizations which have integrated a well detailed strategic communication plan into their organization structure have recorded higher profit returns than companies, with those which invest more amounts into their budget recording even higher returns, as seen in the case of Samsung Electronics. They have managed to crush their competition and are even threatening to advance into the already established Apple market. The company has always been at the center of communication technology innovations in multiple industries and this is shown by its success in both the television and mobile industry. Key among the main drivers of their success is their investment in communication technology, especially internally. Developing their internal communication channel has helped the company move closer to accomplishing its goal by enabling exchange of information to be faster, clearer and more effective. Effective information sharing means that the company is also able to increase awareness in its products. They are also able to push sales of their products through advertisements.
The company can still improve its strategic communication clearer and easier to understand. This improves the effectiveness of the recipients of the information. The company has failed in its aim of improving public relations. The company can improve these relations by showing more concern to the opinions of the public. The company should become more open and inviting to constructive criticism. Responding to the questions raised by the media is equivalent to communicating to their customers. This will also make it easier for the company to develop crisis management strategies, making it able to avoid the losses that it experiences out of not addressing the exploding battery crisis.
Lee, S. J. (2014). Samsung Electronics and its growth strategy. Handbook of East Asian Entrepreneurship, 336.