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Samsung Electronics Strategics

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Analysis about Samsung Electronics Strategics until 2010. It covers all kind of strategics of Samsung

Analysis about Samsung Electronics Strategics until 2010. It covers all kind of strategics of Samsung

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Transcript

  • 1. Brian Marketing Manager
  • 2. “Inspire the World, Create the Future”
  • 3. Jamshid Se ni o r Ma n a g e r
  • 4. 2.6 1.7 0.8 0.2
  • 5. $2.6 million revenue
  • 6. 21.9% GLOBAL MOBILE PHONE MARKET SHARE
  • 7. Samsung Electronics World-Class Organization Strategies
  • 8. Mr. Yong Il Choi - Senior manager of Samsung SDI Samsung annual report 2009 and Samsung sustainable report 2008 An inside story of Samsung and Sony
  • 9. Company Overview
  • 10. Company Overview Mission & Vision
  • 11. Company Overview Mission & Vision Sustainable Marketing Price Globalization
  • 12. Company Overview Mission & Vision Sustainable Marketing Price Globalization SWOT analysis
  • 13. Company Overview Was found in 1969
  • 14. Company Overview ❖World’s largest electronic company ($117.4 billion) Was found in 1969
  • 15. Company Overview ❖Currently19th rank in Brand value Was found in 1969
  • 16. Company Overview ❖Key product divisions: LCD panel, Mobile, Home appliances, semiconductor, digital media Was found in 1969
  • 17. Multidivisional structure with tall hierarchy
  • 18. Visual display, Digital printing, Computer system, Mobile telecommunication, Telecommunication DMC system North America, Europe, China, Southeast Asia, Digital Media & Communication Southwest Asia, CIS, Latin America, Africa, KR CEO DS Memory, System LSI, Storage system Device Solution Business LCD SAMSUNG ADVANTAGE OF TECHNOLOGY/NEW BUSINESS
  • 19. Board Director Yoon-Woo Lee Vice chairman and CEO
  • 20. Board Director Gee-Sung Choi President DMC business
  • 21. Board Director Ju-Hwa Yoon President cooperate Auditing Team
  • 22. Board Director Sang-Hoon Lee Executive Vice President
  • 23. SALE AND OPERATION PROFIT - in KRW trilion Sales Operating profit 121.3 98.5 85.8 9.1 9 6 2006 2007 2008
  • 24. Sales by business division 8 7 16 29 17 32 21 17 26 27 2007 2008 Digital Media Telecommunication Semiconductor LCD Other
  • 25. Henrik Wei Regional Brand Manager
  • 26. Mission and Vision Based on the value and philosophy of Samsung
  • 27. Vision Leading the Digital Convergence Revolution
  • 28. Gustaf Bergner R & D m a n a g e r
  • 29. Mission Inspire the World, Create a Future
  • 30. Mission Inspire the World, Create a Future Creative Solution New Innovative Technology Product
  • 31. Mission Inspire the World, Create a Future Industry Partners Employee
  • 32. Sustainable Strategy Global Harmony with People, Society and Environment
  • 33. Harmony Society Environment People
  • 34. Harmony Society Environment People
  • 35. Harmony Society Environment People
  • 36. Harmony Society Environment People
  • 37. Harmony Society Environment People
  • 38. Integrity Management Strategy Promoting creative organization culture: incentive for new ideas, applying talent management Respecting global diversity Foreign worker Korean workers 38% 41% 52% 48% 62% 59% 2006 2007 2008
  • 39. Products and Services 7years in the top ranking of service Strengthen products competitivenesses by improving product safety and improving product quality Innovating customer satisfaction service
  • 40. Eco Management 2013
  • 41. $ 4.3 Billion Investment Eco Management 2013
  • 42. Planet First
  • 43. Manufacturing Logistics Product Design Planet Consumer First Supplier Disposal & Parters Recycling
  • 44. Social contribution Establish Community Relations Department Having different Global Social Contributions around the world: U.S, China, Africa, Latin America Supporting Children and low income family in Korea
  • 45. Unit(%) 90 96 95 74 72 94 2006 2007 2008 2006 2007 2008 Employee Volunteer Employee Donation Ratio Participation Ratio
  • 46. Marketing Strategies Understanding tomorrow markets and consumers Kyu-Hee Lee Assistant manager, Brand Marketing Group
  • 47. Marketing strategies Establishing a company-wide “Global Marketing Team” Increasing on advertising expenditures, from 1% to 3.5% Marketing focus on mobile phone because highest ROI
  • 48. Marketing strategies Focus on the “digital” aspect -> “Samsung digital, everyone is invited” Training employee about brand Focus on sport marketing
  • 49. Marketing strategies Focus on the “digital” aspect -> “Samsung digital, everyone is invited” Training employee about brand Focus on sport marketing
  • 50. Ad expense Brand value 20 19th 15 10 5 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Brand values, ranking and ads expense. Sources: InterBrand
  • 51. Distribution and Pricing Strategies Marking smart choice that grow market Jee-Hyun Dina Lee Manager, Southeast Asia Sale & Marketing Group
  • 52. Distribution Strategies Samsung store in Best Buy Avoid discount store sale channel, sell only to small number of specialist electronics stores Placed a direct sales force in major cities and regions
  • 53. Distribution Strategies Samsung store in Best Buy Avoid discount store sale channel, sell only to small number of specialist electronics stores Placed a direct sales force in major cities and regions
  • 54. Pricing Strategies Selling products for prices that suite product’s actual quality Adopt high price strategies and high-margin policy
  • 55. Globalization Strategies It is globalizing... Angelo Vicari General Manager, Samsung experience
  • 56. Building complexes To create various synergies: sharing local knowledge, saving labor cost, jointly purchases some components These complexes connected the entire value chain, from manufacturing to sale
  • 57. Building complexes To create various synergies: sharing local knowledge, saving labor cost, jointly purchases some components These complexes connected the entire value chain, from manufacturing to sale $7 million reducing logistic cost
  • 58. Regional Headquarter System Create synergies by integrating the administration of various subsidiaries Accelerating communication and decision making Enabling these HQs to capitalizing on their Samsung America understanding of local markets
  • 59. Securing Global Manager Various program for recurring talent people - IRO office in China, India, Russia, U.S and other countries But most of important position is Korean
  • 60. It is Globalizing... In the complexes, all important positions was filled by Korea The regional HQs only focus on finance, All the important decision making back on Korea Centralized power on Chairman Lee
  • 61. It is Globalizing... In the complexes, all important positions was filled by Korea The regional HQs only focus on finance, All the important decision making back on Korea Centralized power on Chairman Lee ➡ Should recruit people from different countries who have diverse opinion and creative ideas ➡ Allow the regional HQs make decision
  • 62. SWOT analysis Strength, Weakness, Opportunity, Threat
  • 63. Strength Clear target, top-five position in 2020 with $21 billion investment Focus on innovation product - high-end market
  • 64. Strength Clear target, top-five position in 2020 with $21 billion investment Focus on innovation product - high-end market
  • 65. Strength Strong brand - 19th in brand value Heavy invest in technology, product design, human resources Catching need of customer well
  • 66. Strength Strong brand - 19th in brand value Heavy invest in technology, product design, human resources Catching need of customer well
  • 67. Weakness Slow process in approaching technology and design leadership Lack of product differentiation Not actual user affable design Excessive centralization
  • 68. Opportunity Distinguish service from competitor Offer product variation Investment in Supply Chain, build a 24h R&D system, production investment boost efficiency, marketing increase brand awareness International Expansion: India, Eastern Europen
  • 69. Opportunity Distinguish service from competitor Offer product variation Investment in Supply Chain, build a 24h R&D system, production investment boost efficiency, marketing increase brand awareness International Expansion: India, Eastern Europen
  • 70. Opportunity Distinguish service from competitor Offer product variation Investment in Supply Chain, build a 24h R&D system, production investment boost efficiency, marketing increase brand awareness International Expansion: India, Eastern Europen
  • 71. Opportunity Distinguish service from competitor Offer product variation Investment in Supply Chain, build a 24h R&D system, production investment boost efficiency, marketing increase brand awareness International Expansion: India, Eastern Europen
  • 72. Threat Lost India market by rival company, such as: LG, Onida The consumer durable industry is not the best Less profitable because of over-employment Aggressive competitor Regulatory Issues and Safeguarding of Intellectual Property Rights
  • 73. The future of Samsung World Class Organization
  • 74. Invest more in innovation ($400 billion) Changing company structure: more diversity Strive to have better work environment
  • 75. Thank you