Samsung Company’s Structure, Supply Chain, and Marketing

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Samsung is a conglomerate industry that primarily focuses on creating and marketing electrical products. The company focuses on manufacturing and developing a wide range of electrical products, including semiconductors, digital media devices, integrated systems, electronics, and memory chips (Gadalla, 2020). For Samsung company to achieve its goal, develop a sustainable environment and generate a profit, the organization must ensure the efficiency and dependability of its employees by improving their competencies and defining their duties. An efficient framework may benefit the organization by removing communication obstacles, creating a good business climate, enhancing productivity and performance, encouraging employees, and inciting creative ideas (Heizer et al., 2014). Proper organization structure and marketing strategies are excellent for Samsung company to commit its technology and talent to developing plentiful commodities that help make the world better.

Organization Structure

The members, including the Samsung organizational structure employees, are disciplined and have a strong propensity for formalization. The company then prioritized processes, and every department remains distinct, with a solid aversion to outsourcing, a strong preference for internal procurement, and a possessive sense of its capital and technology (Jones et al., 2005). Samsung Electronics has a hierarchical administrative architecture; the corporation’s board of Directors (BOD) comprises five independent directors and four executives (Haizar et al., 2020).

Samsung’s structure aims to increase the board’s autonomy and independence and the openness of the decision-making process. Moreover, there exist six committees beneath the BOD: the Audit Committee, the Related Party Transactions Committee, the Management Committee, the Compensation Committee, the committee of Independent Director Recommendation, and the newly formed committee of Corporate Social Responsibility, all of which collaborate with the staff to gain knowledge and experience (Samsung company, 2022). Nevertheless, because the management of Samsung is centralized, focused on a single team, the application arrangement and policies must be evaluated and approved by the BOD.

Samsung Electronics organizes its companies in technology, marketing, and consumers as Device Solutions (DS), reinforcing their separate operational structure. DMC is divided into two divisions, namely: IT & Mobile Communications (IM) and Consumer Electronics (CE) (Haizar et al., 2020). The CE division oversaw the department of home appliances and the department of visual display business. The IT & Mobile Communications division covers wireless companies, media solutions, digital imaging displays, network business, and IT Solutions.

This restructure incorporates workforce developments such as the employment of soft power experts, which has become more crucial than ever in the ‘Smart’ age. Samsung has already proclaimed its desire to become a soft-driven corporation and has developed a Software center to improve its software capacity until it is on top par with renowned global manufacturers (Samsung company, 2022). Changes were also made in the Device Solutions (DS) division, such as the growth of the entities in charge of controller, solution, and software, controller development to assure special teams for each.

The software-related groups were expanded to accomplish Samsung Electronics’ ambition of generating new experiences and values by combining Samsung’s current hardware design prowess with efficient software and an emotionally attractive user interface (UI). Samsung Electronics further extended the group in charge of the medical and biological device sectors. Then Bio Lab at the Samsung Technology Research Center was renamed the research center of Bio. They also employed biomaterial specialists to improve their fields of study and increase biosimilar and biomedical research funding.

Structure of the Supply Chain

Samsung Suppliers

Samsung’s global supplier network includes mostly first-tier suppliers; these companies offer components of their products that are useful, raw materials, and equipment. A substantial portion of Samsung’s supplier network is based in the United States, Vietnam, Korea, Japan, China, Taiwan, Hong Kong, and the United Kingdom (Bondarenko, 2021). China is the dominant supplier nation for many notable brands, including Samsung’s main competitors, Apple and Huawei, and numerous other technological companies.

Through strategic supply chain management, Samsung aims to ensure that there is the existence of operational efficiency and cost competitiveness while also focusing on sustainability. Samsung’s strategic supply chain management is built around five fundamental requirements: price competitiveness, response to risks, delivery of goods on time, the competitiveness of the supplier, and human resource capacity. The company focuses on its supply chain activities’ social, environmental, and economic elements to control its influence in all three key aspects.

Social Aspect

Corporate accountability and social responsibility among suppliers are significant focal points of Samsung’s strategic supply chain management. Additionally, Samsung guarantees that its suppliers follow international regulations and standards in human rights, ethics, work environment, and conflict minerals to create a transparent system that engages all stakeholders throughout the supply chain. While dealing with its suppliers, the company always ensures that it complies with the ethical standards and laws to protect its environment.

Economic Aspects

Concerning the economic aspect, Samsung’s strategic supply chain management is to maintain a comprehensive competitive advantage. The act can be accomplished in terms of delivery, applied technology, cost, quality delivered, and human resources to enhance the efficiency and speed of its suppliers and create a business ecosystem that allows long-term growth. The company’s primary concern areas are product quality, technology, and efficiency cost applied in supply chain management.

Environmental Factors

Samsung only works with Eco-Partner authorized distributors to provide an environmentally sustainable supply chain. This guarantees that the effects of raw materials, manufacturing processes, and other production effluents on the environment are managed and assessed simultaneously. Samsung developed best practices for manufacturing sustainability. Its manufacturing strategy aims to make products financially viable through eco-friendly design from the planning stage forward. To maintain a pollution-free environment, the company invests in environmentally friendly means of production, and to some extent, it recycles its products.

Marketing Strategies at Samsung

The strategies of marketing at Samsung company are centered on producing novel advanced, user-friendly devices backed by robust promotional and branding procedures. The company’s unique competitive strategy is manufacturing and promoting special interests while simultaneously positioning Samsung as a high-quality brand, fashionable, and worthy of a premium price. The objective was to carve out a particular position through technical innovation while appealing to a younger generation and affluent clients worldwide.

Design and Development of Products

Acknowledging that cutting-edge technology often does not guarantee success, Samsung also focused on product development and design. Their goal was to create goods that deliver benefits that specific buyers consider valuable. Because the help of several commodities is subjective, the development of the new electronic devices at Samsung company often involved various designers who mutually collaborate with the marketers, production teams, and engineers.

Research and Development (R&D) into the Innovative Technology

According to Samsung Sustainability Report (2020), for a decade now, the Samsung industry has been investing 1.5 trillion dollars in its major R&D projects, a strategy that has kept it at the top. The tech company chooses to invest in research and innovation to gain a competitive advantage by pioneering its competitors on the novel technologies immensely. In the 1990s, Sony Electronics had consumer dominance, but it was built on analog technology (Bondarenko, 2021). As the digitalization needed new devices, Samsung invested heavily in developing large-area chipsets, cellphones, Liquid Crystal Displays.

Campaign to Build Brand

The marketing strategy of Samsung is centered on developing a publicity strategy to enhance the brand image of Samsung. Samsung streamlined its roster of advertising companies from 55 to one worldwide advertising company like Wire and Plastic Products plc, which conducted the organization’s first brand-building campaign, to guarantee adequate marketing communications globally (Samsung company, 2022). Additionally, to guarantee Samsung’s distribution route is consistent with good quality, several of Samsung’s items were taken from shops that offer low discounts and transferred through big-box electronics retailers. Restructuring their marketing activities was just as crucial to the success of a new strategic plan since even the most technically complex and well-designed items are prone to failures unless buyers learn of their existence.

Financial Strength

One of the most noticeable assets of Samsung Electronics is its intense financial situation. On a cumulative basis, Samsung has upheld a 35 percent debt ratio, a stable financial structure, a 73.9 percent equity ratio, and an 11 percent return on equity ratio (Bondarenko, 2021). According to Gadalla (2020), seven years back, the international electronics firm generated South Korean won (KRW) 200.7 trillion in revenue and consolidation profits of over South Korean won 25 trillion. Proper management of its financial affairs has also been one of its survival strategies over the years.


In conclusion, for Samsung to achieve its goals, it must critically consider its organizational structure, supply chain, marketing strategy, and financial status. To outdoor other competitors, the company has to properly coordinate its activities in hierarchical leadership and production sectors, with these high-quality products being produced constantly in large quantities. The production of the products is done as per the socioeconomic and environmental requirements. In addition to that, maintaining good supplier relations is also a key concern for the company. This ensures a constant flow of raw materials and other production requirements. Samsung also does consider strategic marketing strategies centered on a novel, innovative skills backed by powerful promotional, branding activities, and proper financial management.


Bondarenko, P. (2021). Samsung. Encyclopedia Britannica. Web.

Gadalla, A. (2020). Samsung Management. Web.

Haizar, N. F. B. M., Kee, D. M. H., Chong, L. M., & Chong, J. H. (2020). The impact of innovation strategy on organizational success: A study of Samsung. Asia Pacific Journal of Management and Education (APJME), 3(2). Web.

Heizer, J., Render, B., & Griffin, P. (2014). Operations management (Canadian Edition). Don Mills, Canada: Pearson Canada Inc. Chapter 12.

Jones, G. R., Mills, A. J., Weatherbee, T. G., & Mills, J. H. (2005). Organizational theory, design, and change (Canadian ed.). North York, Canada: Pearson Canada Inc. Chapter 4.

Samsung company. (2022). About us. Retrieved 13 February 2022, from

Samsung Sustainability Report (2020) Samsung Electronics.

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BusinessEssay. "Samsung Company's Structure, Supply Chain, and Marketing." January 9, 2023.