Product portfolio diversification in global companies Samsung Electronics and the launching plan for "The Frame" TV in Austria

Abstract

How a global company produces and sells its products constitute probably one of the most relevant aspects of a global company. Here is where innovation plays a relevant role, since the success or failure of a business venture depends on how a company offers better or more preferred products considering the different ways, means, places and prices possible. The globalization of markets is causing an increase of innovation within companies: as foreign and local competition increases, companies are put under pressure to innovate continuously by offering new services and differentiated products. Similarly, companies also have the possibility to protect their margins by introducing new products to their current portfolios, which also helps to ensure an easier penetration into new market niches. By implementing a diversification strategy, Samsung Electronics is entering a new market segment to take advantage of existing competences. With "The Frame", Samsung Electronics can increase profitability if the employees and managers leverage the right competences to build this new business unit. Involved in this process is the sharing of resources and knowledge between other divisions and the utilization of general organizational competences in order to increase the performance of this new business division. The main objective of the master thesis is to show how to set up a clear agenda for launching and managing the assets needed to succeed with a channel diversification strategy. On a similar note, showing how to implement and control the strategy is equally important in this thesis. The theoretical framework will help the reader understand the internal and external factors for launching new products in new segments. Another purpose of this thesis is to analyze and solve the problem of how a global company¿s should diversify its sales strategy for a local market (Austria). At the end, the reader should be able to understand the most important factors and pillars to consider when launching a new product and how important is to be aware of (and to manage) complementary assets which are not owned by a global company. The paper will help managers of companies and organizations transfer theory to practice; it will be useful for providers of standardized products who want to diversify by using a premium approach in global market.