Strategic Perspectives for Finance and Accounting-Passing Grades Study Material

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Strategic Perspectives for Finance and Accounting-Passing Grades Study Material Portfolio 3: Strategic Proposal Report Introduction Samsung Electronics Co Ltd., besides being one of the world’s largest smartphone brands, also manufactures and sells computers and computer chips, displays, televisions, and home appliances. The company, based in Seoul, South Korea, has exhibited tremendous growth in recent years, primarily driven by its outstanding business model, market position, product quality, and robust, innovative capabilities. Despite its apparent success, the looming intense competition from Apple, Huawei, and Xiaomi and trends in the electronics production industry require the organization to reassess its business and corporate strategy. External Analysis of the Smartphone Industry According to Statista (2023), the revenue of the smartphone sector in 2023 is approximately £0.38tn. A report by Counterpoint Research (2023) shows that since global smartphone shipments declined by 12% to 1.2 billion units, the industry’s global revenue dropped by 9% to the mentioned £331 million or $409 billion. Several smartphone brands generate the overall revenue, including Samsung, Apple, Huawei, Xiaomi, Oppo, Vivo, and others. The chart below displays the sector’s latest statistics on the smartphone market share worldwide as of January 2023. The chart, by GS Statcounter through Oberlo’s Lin (2023), demonstrates that Apple has the highest percentage of 27.63%, followed closely by Samsung with a 27.1% share.

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