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April 18, 2015
Presented by:
Md. Monowar Hussain
Student No: 3-12-23-010
Md. Zunayed Bin Rakib
Student No: 3-14-28-054
Contents:
•Company Profile
•Market Share & Brand Value
•Industry Challenges & Strategies
•Core Competencies
•Past & Current Business Strategy
•SWOT Analysis
•Overview on Operational Strategy
& performance
2015
•Samsung was founded by Lee Byung- Chull in 1938 as a trading company
Company Profile
Headquarters: Seoul, South Korea
Revenue: USD 305 billion +
No. of Employees: 489,000 (2014)
Business Area:
Consumer Electronics
-Visual Display Business
-Digital Appliance Business
-Printing Solutions
-Health & Medical Equipments
IT & Mobile Communications
-MC Business
-Network Solutions
Device Solutions
-Memory Business
-System LSI
-LED
History:
1938: Founded in Daegu, South Korea.
1969: Samsung-Sanyo Electronics established
(renamed Samsung Electro-Mechanics in March 1975
and merged with Samsung Electronics in March 1977).
1970: Samsung-Sanyo started to produce black-and-white TV
1978: Microwave Oven Production Started
1980: Air Conditioner Production Started
1983: Personal Computer Production Started
1992: Samsung Developed Mobile Phone Systems
2001: Samsung Electronics ranked No. 1 of world’s Top 100
IT Companies by BusinessWeek.
2007: Samsung Electronics attained No.1 worldwide market
share position for LCD for the sixth year in a row.
2009 :Samsung Electronics built the world’s largest mobile
phone as recorded in the Guinness Book of World Records.
2013: Samsung ranks 8th in Interbrand’s ‘Best Global Brands'
with a brand value of USD 39.6B USD.
2015Company Profile
Operations in 80
Countries
15 Regional Head
Quarters
54 Global
Sales Offices
38 Production
Facilities
34 R&D
Centers
78 Other
Offices
Focus:
1. Innovative Product Idea
2. Leading Innovation
3. Strong Brand Commitment
4. Involvement in global scale
Achievement:
Most Admired Companies: 21st
Most Admired CE Business: 2nd
13th Largest Company of the
World
2014-2015Market Share & Brand Value
30%
17%
7%
6%
5%
35%
LTV Market Share
Samsung
LG
Sony
TCL
Hisense
Others
21%
11%
10%
5%4%3%
46%
Mobile Phone Market Share
Samsung
Apple
Nokia
Lenovo
LG
Xiaomi
Others
Brand Value: USD 45,462 million
2015Challenges & Strategies
Challenges:
 Life Cycle for Electronics Goods is short
 Rapid change in Business Environment
 Increased demand
Protection of new technology
Chinese Companies aggressive entry in global market
Strategies:
In 1996, Strategy of Samsung changed from competing on price to competing
in technology (Digital appliances were introduced by Samsung).
Because of Global operations, Samsung is able to protect its innovations
by patents(they have good idea about lawsuits and country laws).
 R&D Centers are dispersed across the globe so that, consumers preferences
can be reflected in their product innovation.
 Creation Higher Brand Value among consumers.
- Localized marketing strategy.
 Premium Pricing of product.
2015Core Competencies
 Technology & Leadership innovation
-Continuously invests more than their rivals in R&D
-Spent almost up to 9% of their annual revenue on R&D
-Global R&D network
- Lead time for New Product Commercialization is 5 months.
 Customer Value Creation
-Receives feedback from their consumers and distributors (Best Buy) to
Identify customers needs and demands
 Brand Image
-Samsung has create a sense of exclusiveness among consumer’s mind
 Strong Human Resources Management
-Best talents are recruited
- Pay Scale is high
-Promotion is based on performance, not based on seniority
 Own Manufacturing Facility & Vertical Integration
-Own Manufacturing facility for faster response
- Most of the cases, Samsung is it’s own supplier for raw materials.
2015Past & Current Business Strategy Analysis
2015SWOT Analysis
Strengths
•Strong brand equity
•Constant focus on R&D
•Diversified Product Portfolio with
Attractive design & feature
• Involvement in CSR activities
throughout the world
Weakness
•High Promotional activity Cost
•Too much dependence on software
From other companies
• Weak Consumer perception regarding
Durability
• High Cost in R&D
Opportunities
•Growth in CE Market
•Opening more store
•Strong Customer demand for innovative
product & value-added features.
• Improvement in Customer Service
•Entry to new emerging markets
(E.G: Bangladesh)
•Highly Competitive Business environment
•Currency Risk
•Chinese Competitors taking market share
•Social Resistance & Environmental effect
•New Nano-technology may replace
Samsung’s technology
Threats
2015Over View on Samsung’s Operations
•Revenue of Samsung Compared to Major Competitors (2013-2014):
Company Sales Revenue
Samsung USD 207 billion
Sony USD 75.54 billion
LG USD 53.72 billion
GE USD 146.04 billion
•Transnational Operational Strategy
- Product is Highly standardized.
- Best People are recruited irrespective of any country preference.
- Manufacturing is done in cost effective location( 12 factories in China).
- Marketing activities are aligned to local culture( Local festivals are highlighted)
- CSR Activities are done throughout the world
2015
Thank You
Questions?

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Strategy of Samsung

  • 1. April 18, 2015 Presented by: Md. Monowar Hussain Student No: 3-12-23-010 Md. Zunayed Bin Rakib Student No: 3-14-28-054 Contents: •Company Profile •Market Share & Brand Value •Industry Challenges & Strategies •Core Competencies •Past & Current Business Strategy •SWOT Analysis •Overview on Operational Strategy & performance
  • 2. 2015 •Samsung was founded by Lee Byung- Chull in 1938 as a trading company Company Profile Headquarters: Seoul, South Korea Revenue: USD 305 billion + No. of Employees: 489,000 (2014) Business Area: Consumer Electronics -Visual Display Business -Digital Appliance Business -Printing Solutions -Health & Medical Equipments IT & Mobile Communications -MC Business -Network Solutions Device Solutions -Memory Business -System LSI -LED History: 1938: Founded in Daegu, South Korea. 1969: Samsung-Sanyo Electronics established (renamed Samsung Electro-Mechanics in March 1975 and merged with Samsung Electronics in March 1977). 1970: Samsung-Sanyo started to produce black-and-white TV 1978: Microwave Oven Production Started 1980: Air Conditioner Production Started 1983: Personal Computer Production Started 1992: Samsung Developed Mobile Phone Systems 2001: Samsung Electronics ranked No. 1 of world’s Top 100 IT Companies by BusinessWeek. 2007: Samsung Electronics attained No.1 worldwide market share position for LCD for the sixth year in a row. 2009 :Samsung Electronics built the world’s largest mobile phone as recorded in the Guinness Book of World Records. 2013: Samsung ranks 8th in Interbrand’s ‘Best Global Brands' with a brand value of USD 39.6B USD.
  • 3. 2015Company Profile Operations in 80 Countries 15 Regional Head Quarters 54 Global Sales Offices 38 Production Facilities 34 R&D Centers 78 Other Offices Focus: 1. Innovative Product Idea 2. Leading Innovation 3. Strong Brand Commitment 4. Involvement in global scale Achievement: Most Admired Companies: 21st Most Admired CE Business: 2nd 13th Largest Company of the World
  • 4. 2014-2015Market Share & Brand Value 30% 17% 7% 6% 5% 35% LTV Market Share Samsung LG Sony TCL Hisense Others 21% 11% 10% 5%4%3% 46% Mobile Phone Market Share Samsung Apple Nokia Lenovo LG Xiaomi Others Brand Value: USD 45,462 million
  • 5. 2015Challenges & Strategies Challenges:  Life Cycle for Electronics Goods is short  Rapid change in Business Environment  Increased demand Protection of new technology Chinese Companies aggressive entry in global market Strategies: In 1996, Strategy of Samsung changed from competing on price to competing in technology (Digital appliances were introduced by Samsung). Because of Global operations, Samsung is able to protect its innovations by patents(they have good idea about lawsuits and country laws).  R&D Centers are dispersed across the globe so that, consumers preferences can be reflected in their product innovation.  Creation Higher Brand Value among consumers. - Localized marketing strategy.  Premium Pricing of product.
  • 6. 2015Core Competencies  Technology & Leadership innovation -Continuously invests more than their rivals in R&D -Spent almost up to 9% of their annual revenue on R&D -Global R&D network - Lead time for New Product Commercialization is 5 months.  Customer Value Creation -Receives feedback from their consumers and distributors (Best Buy) to Identify customers needs and demands  Brand Image -Samsung has create a sense of exclusiveness among consumer’s mind  Strong Human Resources Management -Best talents are recruited - Pay Scale is high -Promotion is based on performance, not based on seniority  Own Manufacturing Facility & Vertical Integration -Own Manufacturing facility for faster response - Most of the cases, Samsung is it’s own supplier for raw materials.
  • 7. 2015Past & Current Business Strategy Analysis
  • 8. 2015SWOT Analysis Strengths •Strong brand equity •Constant focus on R&D •Diversified Product Portfolio with Attractive design & feature • Involvement in CSR activities throughout the world Weakness •High Promotional activity Cost •Too much dependence on software From other companies • Weak Consumer perception regarding Durability • High Cost in R&D Opportunities •Growth in CE Market •Opening more store •Strong Customer demand for innovative product & value-added features. • Improvement in Customer Service •Entry to new emerging markets (E.G: Bangladesh) •Highly Competitive Business environment •Currency Risk •Chinese Competitors taking market share •Social Resistance & Environmental effect •New Nano-technology may replace Samsung’s technology Threats
  • 9. 2015Over View on Samsung’s Operations •Revenue of Samsung Compared to Major Competitors (2013-2014): Company Sales Revenue Samsung USD 207 billion Sony USD 75.54 billion LG USD 53.72 billion GE USD 146.04 billion •Transnational Operational Strategy - Product is Highly standardized. - Best People are recruited irrespective of any country preference. - Manufacturing is done in cost effective location( 12 factories in China). - Marketing activities are aligned to local culture( Local festivals are highlighted) - CSR Activities are done throughout the world

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