2. • Multinational corporation
• Headquartered in Samsung
Town, Seoul, South Korea.
• It is South Korea's
largest chaebol and the world's
largest conglomerate by
revenue with an annual revenue of
US $173.4 billion in 2008.
• Composed of numerous
international affiliated businesses,
most of them united under
the Samsung brand
including Samsung Electronics the
world's largest electronics company.
3. • Samsung company started moving into businesses such as
insurance, securities, and retail.
• In the late 1960s, Samsung Group
began the electronics industry.
It formed several
electronics-related divisions.
4. • 1965-1971
Samsung –Sanyo electrical founding period
• 1972-1974
Samsung was setting the base for development.
8. • 2002-2003
initiative to become world class company
• 2003-2004
the first year as an excellent company.
• 2004-2006
laying the foundation to become a world class co.
9. The case study commences with the integration of innovative design and brand
management by Samsung Electronics which started a new trend in the electronics industry.
As discussed in the case, initially Samsung was not much popular and lacked design identity
but later it relocated itself by:
Improvement in the product development processes
Increasing their investments in R&D and product design i.e. R&D globalization.
By adopting right innovation strategies.
By mastering the less tangible, more intuitive qualities of superior design.
By diversification of products and step by step or continual improvement.
Implementing Global localization strategy.
Achieving Vision of leading in digital convergence by using e-processes (electronic
integration of processes by going online).
All these methods were implemented by Samsung in order to improve its productivity and
to gain competitive advantage over its competitors like LG Electronics, Sony, Apple
Computer Inc., etc. Despite this, Samsung is facing the challenge to stay ahead in
competition in the near future. Consumer electronics industry is facing a tough competition
and the need of the hour is to optimize the R & D costs, having relevant information
regarding the IPR (Intellectual Property Rights) while design outsourcing and using
appropriate product design followed by appropriate market strategy.
10. Along with this Samsung also increased the investments in
their R&D centers. After doing the trend analysis for the
Exhibit 3 which shows the Samsung R&D budget and
percentage sales,
Samsung Electronics leading position was contributed by the
enlisted factors:
Creative people in the organization which contributed in the
development of technology.
Co-operation between the business partners throughout the
supply chain
Firms ability in exploring end penetrating into the new markets
Speed of innovation and product development.
11.
12. We arrive at the conclusion that the Samsung’s R&D budget increased till the year
2007 linearly. But there is decline in the percentage of sales in the year 2007, which
suggests that the Samsung will need to rethink this strategy. There is an urgent need
to optimize the cost related to Samsung’s R&D expenditure to prevent the decline
of sales in future.
Samsung globalized their R&D network worldwide to develop technologies which
can be commercialized in the future. Basically the main idea behind the
globalization of R&D network is to:
Focus on innovation and generating new products for global market.
There is a huge scope of product improvement.
This provides an access to the emerging markets.
Leverages the market opportunity for the firm.
13. Comparison of Percentage Sales
It is clear from the graph that both Nokia and Motorola are ahead than
Samsung in terms percentage of net sales. This means that Samsung needs to
redesign and reform their business network to gain competitive advantage
from its competitors. Moreover in 2007, there is a slight decline in sales for
Samsung which is a cause of concern. Though, Samsung is relatively doing
well as compared to its competitors Apple, LG and Sony.
16. Samsung’s 3DTV
Cinema-quality 3D experience 3-Dimensional TVs add new depth and dimension to create
larger-than-life experiences. 3D Active Glasses sync up with the 3D TV to produce 3D
images that virtually leap off the screen. Favorite shows can even be transformed to 3D in
real time for the ultimate "reality" TV.
samsung.com
19. Samsung has strong global brand recognition, which it has leveraged on social
media to reach and engage with a large consumer audience (Walgrove, 2015).
Samsung uses event sponsorships, social influencers, and celebrity endorsers
to promote its social content and increase consumer engagement (Walgrove,
2015).
Samsung utilizes unique, entertaining, and sharable content across its social
media accounts and encourages consumer conversations centered around its
posts (Walgrove, 2015).
Samsung has a major presence on all of the most popular social media
platforms, including Facebook, Twitter, YouTube, and Instagram (Walgrove,
2015).
Samsung’s social media managers operate like humans, rather than strictly
corporate business entities.
Samsung has highly-responsive, dedicated customer support teams available
through its dedicated social media accounts (Kohler, 2015).
20. Samsung has to invest more time and resources into its social media presence than its top
competitor Apple, in order to build and maintain top-of-mind awareness among the consumer
audience (Walgrove, 2015).
Samsung does not focus on a specific niche, which can make it difficult to define its target
social media audience.
Samsung does not consistently emphasize an active presence across all of its social media
accounts, usually focusing on a certain product line, event, or campaign through an integrated
content approach that may not utilize certain accounts or platforms (Walgrove, 2015).
Samsung is often perceived as a fast follower by many consumers, which can decrease the
effectiveness of its social media messaging, particularly when it compares itself to Apple
(Walgrove, 2015).
Samsung does not charge prices as high as some of its primary competitors like Apple and
Sony. As a result, consumers can perceive a link between its comparatively low prices and
assume low product quality.
21. Samsung can continue to expand its social media presence and visibility to meet
increased American adult social media usage, as nearly 65% of American adults use
social media in 2015 (Perrin, 2015, p. 1).
Younger Americans are becoming increasingly dependent on social media as part of
their everyday lives, which is an opportunity for Samsung to target and engage younger
consumers through social media to strengthen its brand.
Samsung can drive its consumer engagement through the increased use of social media
sweepstakes and contests, particularly on Twitter and Facebook.
Samsung can continue to target influential followers on different social media platforms
to encourage more consumer awareness and sharing of its social media content.
Samsung can continue to utilize social media metrics and consumer feedback to
respond to shifting consumer preferences and directly message its core consumer
groups in real-time (Ungerleider, 2014, p. 1).
22. Samsung’s marketing focus is very broad, targeted at capturing the largest
consumer audience possible due to the scope of the global consumer
electronics market (Walgrove, 2015).
Samsung has a variety of product lines, businesses, and geographic
markets, which can lead to difficulties in consumer discovery of its social
media content due to the large number of accounts it operates
(Walgrove, 2015).
A saturated smartphone market in developed countries and new, low-cost
competitors, like Chinese manufacturer Xiaomi, are increasing the
amount of competing brands present on social media (Kovach, 2014).
Encouraging open, two-way communication with consumers could
damage Samsung’s brand image if it receives a strongly negative response
to its products or campaigns.
Apple has not prioritized social media marketing to reach consumers in
the past, but it may begin to do so in the future (Campbell, 2015).
23. • As stated in its new motto, Samsung Electronics' vision for the new decade is,
"Inspire the World, Create the Future.“
• Commitment to inspiring communities by holding samsung’s three key strength
1) New technology
2) Innovative product
3) Creative solutions
Plan of reaching $400 billion in revenue and becoming one of the world’s top five
brands by 2020. To this end, Samsung has also established three strategic
approaches in its management:
Three key strategic pillars are:
“Creativity,” “Partnership,” and “Talent”.
