Research And Select An MNC And One Of Its Subsidiaries To Us

Research And Select An Mnc And One Of Its Sbus To Use As A Case Study

Research and select an MNC and one of its SBUs to use as a case study for this discussion. You may use the same MNC and SBU for both this discussion and the Unit 7 assignment. Within an organization, SBUs are interested in growth. SBUs that lead in growing markets will likely be given additional resources, while those that fall behind in stagnant markets will be shut down so the company as a whole can operate more efficiently. As you analyze your selected SBU, what business strategy has been its most successful over the last 3–5 years? Analyze this strategy in terms of resources, capabilities, and competitiveness as described in Chapter 4 of your assigned unit reading. Provide evidence to support your analysis and conclusions. Your discussion post should be a minimum of 250 words and incorporate at least one scholarly reference along with citations from one of the required readings.

Paper For Above instruction

The multinational corporation (MNC) selected for this case study is Samsung Electronics, a dominant player in the global technology industry. One of its strategic business units (SBUs) is the Consumer Electronics division, which encompasses products such as smartphones, televisions, and home appliances. Over the past 3–5 years, Samsung's Consumer Electronics SBU has prioritized innovation-driven differentiation to maintain its competitive advantage in a highly saturated market.

Samsung's business strategy has been largely centered around technological innovation and relentless investment in research and development (R&D). This approach has enabled Samsung to introduce cutting-edge products that meet evolving consumer preferences, thereby reinforcing its market position. For example, Samsung's investment in foldable display technology has positioned it as a leader in innovative smartphone design, substantially contributing to its growth and market share expansion.

From a resource-based perspective, Samsung possesses significant tangible and intangible resources that underpin its strategic success. Its extensive R&D facilities and patent portfolio provide a technological edge that is difficult for competitors to replicate. The company's global supply chain network and manufacturing capabilities ensure cost efficiencies and timely product delivery. Moreover, Samsung's brand reputation for innovation and quality enhances its competitive positioning in both developed and emerging markets.

Capabilities such as rapid innovation cycles, effective supply chain management, and robust marketing strategies further bolster Samsung's competitiveness. The company's ability to quickly develop and commercialize new technologies, like 5G-compatible devices, demonstrates the integration of its resources and capabilities to sustain competitive advantages. According to Barney (1991), resources and capabilities that are valuable, rare, inimitable, and non-substitutable (VRIN) are crucial for sustained competitive advantage, which Samsung effectively leverages.

Evidence of Samsung's successful strategy is reflected in its consistent revenue growth, strong market share, and high customer satisfaction ratings. Its strategic focus on innovation has enabled it to differentiate its products in a crowded marketplace, helping it to outperform many competitors. However, maintaining this competitive edge requires continuous investment and adaptation to rapid technological changes, as highlighted by Prahalad and Hamel (1990) regarding core competencies.

In conclusion, Samsung's focus on innovation, supported by substantial resources and capabilities, has been the most successful strategy for its Consumer Electronics SBU over recent years. This approach aligns with the principles outlined in Chapter 4 of our course reading, emphasizing the importance of leveraging unique resources and capabilities to sustain competitive advantage in the global marketplace.

References

• Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
• Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68(3), 79–91.
• Lee, S., & Trimi, S. (2018). Innovation for sustainable development: Towards a sustainable society. Sustainability, 10(8), 2740.
• Kim, W. C., & Mauborgne, R. (2005). Blue ocean strategy. Harvard Business Review, 83(10), 76-84.
• Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic management: Concepts and cases: Competitiveness and globalization. Cengage Learning.
• Chesbrough, H. (2006). Open innovation: The new imperative for creating and profiting from technology. Harvard Business Press.
• Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press.
• Grant, R. M. (2019). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
• Rothaermel, F. T. (2019). Strategic management. McGraw-Hill Education.
• Verma, P., & Gustafsson, A. (2019). Investigating the emerging role of digital channels in customer engagement. Journal of Business Research, 98, 244–253.