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Presentation : Sam1

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  1. 1. SAMSUNG CASE STUDY GENERAL MANAGEMENT By:- Shilpa Kher (43) Reema Kotak (44) Krithika .S (45) Siji Kumar (46) Bhuvan Lalka (47) Malavika M (48) Heena M (49)
  2. 2. AGENDA OF THE PRESENTATION <ul><li>Background of the Samsung case </li></ul><ul><li>Strategy process at Samsung </li></ul><ul><li>Mission statement (aim & goal) </li></ul><ul><li>Objective </li></ul><ul><li>Environmental analysis </li></ul><ul><li>Strategy (generic, alternative) </li></ul><ul><li>Swot analysis </li></ul><ul><li>Challenges faced by Samsung </li></ul>
  3. 3. BACKGROUND OF THE CASE <ul><li>Samsung’s Turnover Target and its Aim </li></ul><ul><li>Philosophy at Samsung </li></ul><ul><li>How Samsung catches up with LG </li></ul><ul><li>Samsung’s move from being a Class product to a Mass product </li></ul><ul><li>Innovative Strategies( Samsung Marketing Academy) adopted to tap potential buyers </li></ul>
  4. 4. SAMSUNG ELECTRONICS… <ul><li>Global leader in semiconductors and digital technologies </li></ul><ul><li>Samsung India commenced its operations in India in December 1995 </li></ul><ul><li>Sales turnover of over US $ 1Bn in just a decade of operations in the country </li></ul><ul><li>Core competency in the field of semiconductors which is backed by it’s R&D capabilities and manufacturing scale </li></ul><ul><li>Emerge as one of the most unique brands creating innovative and superior digital products every year </li></ul>
  5. 5. <ul><li>From being a virtually unknown entity in the Year 1995, brand Samsung today enjoys an awareness of over 95% and a positive opinion of around 80% in the country today (source: BAS 2004) </li></ul><ul><li>Samsung has very successfully leveraged its association with Cricket and Cinema in the form of ‘Team Samsung’ and ‘Samsung IIFA Award’ </li></ul><ul><li>In 2003, LG was the market leader with a share of 17.6% followed by Samsung at 15.8% in Consumer Electronic Products </li></ul>SAMSUNG ELECTRONICS (Ctd…)
  6. 6. <ul><li>STRATEGY PROCESS AT SAMSUNG </li></ul>
  7. 7. SAMSUNGS PRODUCT LINE <ul><li>Consumer Electronic Products like : </li></ul><ul><li>Colour Television (CTV’s) </li></ul><ul><li>Refrigerators (Frost Free) </li></ul><ul><li>Air Conditioners </li></ul><ul><li>GSM Handsets </li></ul><ul><li>Front Loading Washing Machines </li></ul><ul><li>LCD TV, Plasma TV </li></ul>
  8. 8. MISSION STATEMENT <ul><li>AIM : </li></ul><ul><li>Samsung aims to become India’s leading volume retailer in the consumer electronics segment </li></ul><ul><li>Achieving its aim by focusing on its Core Strategy </li></ul><ul><li>Work on strengthening its unique Brand Image </li></ul><ul><li>Gaining Customer Satisfaction </li></ul><ul><li>GOAL : </li></ul><ul><li>Achieving $2 billion turnover by 2008 </li></ul>
  9. 9. ENVIRONMENTAL ANALYSIS (Where are we now??) <ul><li>In 2004 and 2005 sales turnover was 4,900 crore and 6,300 crore respectively </li></ul><ul><li>Trying to Close on to the Market Leader LG </li></ul><ul><li>Trying to come Clean on its IT Business Mess </li></ul><ul><li>Making a mark in the High end category Segment –LCD TV, Plasma TV, Frost free Refrigerators and Split AC’s </li></ul>
  11. 11. CTV
  15. 15. OBJECTIVE (Where do they want to be ???) <ul><li>Cross Rs7,500 Crore in Turnover in 2006 </li></ul><ul><li>Strengthen Exports </li></ul><ul><li>Reorientation of Marketing activities </li></ul><ul><li>Expansion of its Sales Infrastructure </li></ul><ul><li>Move to the Tier-II and Tier-III Cities </li></ul><ul><li>Become a Mass product and still retain its leading edge technology </li></ul>
  16. 16. STRATEGY AT SAMSUNG <ul><li>(A) GENERIC STRATEGY: </li></ul><ul><li>Generic strategy includes Product diversification </li></ul><ul><li>and focus of the company </li></ul><ul><li>PRODUCT DIVERSIFICATION </li></ul><ul><li>Product Range is from contemporary to hi-tech </li></ul><ul><li>Diversifying products so that each and every segment is covered </li></ul>
  17. 17. <ul><li>FOCUS OF THE COMPANY </li></ul><ul><li>Product Innovation through usage of leading edge technology </li></ul><ul><li>Customer Satisfaction </li></ul><ul><li>Continuously Upgrading with technology </li></ul><ul><li>Tapping the ever growing High-end Consumer </li></ul><ul><li>Tweaked its focus to concentrate on middle class segment also </li></ul><ul><li>Spending a good amount of its revenue on R&D </li></ul>
  18. 18. <ul><li>(B) ALTERNATIVE STRATEGY </li></ul><ul><li>PRODUCT DEVELOPMENT </li></ul><ul><li>Research and development centre at Noida. </li></ul><ul><li>Centre recently helped customize two high end frost free refrigerators models, RT 25 and RT 28. </li></ul><ul><li>Features offered by these are Cool Pack, toughened glass shelves and high versatility compressor </li></ul>
  19. 19. <ul><li>MARKET PENETRATION </li></ul><ul><li>Working towards reaching out to smaller cities. </li></ul><ul><li>Planning Dream Home road shows. </li></ul><ul><li>Expanding its sales network. </li></ul><ul><li>Revamping sales infrastructure. </li></ul><ul><li>Samsung Marketing Academy – set up to train frontline sales force and shop demonstrators. </li></ul>
  20. 20. SWOT ANALYSIS <ul><li>STRENGHTS </li></ul><ul><li>Clear target: $ 2 billion by 2008. </li></ul><ul><li>Core value: Approach market through technology and design leadership. </li></ul><ul><li>Launching hi-tech and contemporary products with zeal and speed. </li></ul><ul><li>Target is not only number driven but also about acquiring and retaining customers. </li></ul><ul><li>Created a Unique Brand Image for itself as a high end value driven brand. </li></ul><ul><li>The Samsung Marketing Academy </li></ul>
  21. 21. <ul><li>WEAKNESS </li></ul><ul><li>Approach market through technology and design leadership: a slow process. </li></ul><ul><li>Not targeting the mass market </li></ul><ul><li>Not spreading the brand all over india </li></ul>
  22. 22. <ul><li>OPPORTUNITIES </li></ul><ul><li>LG: its slowing down and has not had any product innovation in the last 6-8 months. </li></ul><ul><li>The Indian Mass Market. </li></ul><ul><li>The high end value driven proposition helps increase the Market Share. </li></ul><ul><li>Samsung is well known for it product differentiation </li></ul>
  23. 23. THREATS <ul><li>Indian Mass Market may be captured by a rival company, LG, Onida, Videocon;etc. </li></ul><ul><li>The consumer durable industry is not in the best of health. </li></ul><ul><li>Due to increased price of inputs and continuing price erosion there is downtrend in the consumer durables market. </li></ul><ul><li>Increased emergence of modern retail chains- a problem as Samsung is investing in building a retail network across the country </li></ul>
  24. 24. THANK YOU