Business Strategy in a Global Environment Case Study - 2

Business Strategy in a Global Environment - Case Study Example Samsung ensures that all of its raw materials are procured from legal sources like the US, Thailand, Russia, etc (Samsung, 2008). Owing to the highly reputed brand image and high financial strengths, Samsung is often able to exert influence on the supplier companies and thereby controlling the supply chain. However, Samsung is dependent on particular companies for procurement of certain integrated circuit equipments. However, the company maintains a good relationship with its suppliers so as to ensure a long term sustainable sourcing of raw materials (Marketline, 2014). Capability 2 (Manufacturing): The manufacturing process of a firm is the most important capability, as it produces the products for the company which is sold to generate revenue. Samsung owns several manufacturing plants in more than 80 countries (Grobart, 2013). It allows the company to increase the production level in the host countries. It has also enabled the company to manufacture at a lower cost and sell products at a lower price compared to exporting from home country. Samsung leverages the comparative advantage of host countries by utilizing the low cost skilled labours, particularly in the Asian markets. The company used the most technologically advanced tools and equipments to manufacture its products. As a result, its production process is highly cost effective and yields large volume at lesser time. Samsung also employs skilled labours and trains them to increase individual efficiency, which in turn increases the production output of the facility (Samsung, 2015). The man ufacturing process is highly energy efficient which allows the company to operate in an environmentally sustainable way by reducing its carbon foot print. Moreover, Samsung continuously looks forward to expand its production capacities. It has invested nearly $15 billion to develop a new manufacturing plant in Seoul (Market watch, 2014). Capability 3 (Distribution):