Samsung Electronics Strategics

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

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  • Samsung Electronics Strategics

    1. 1. Brian Marketing Manager
    2. 2. “Inspire the World, Create the Future”
    3. 3. Jamshid Se ni o r Ma n a g e r
    4. 4. 2.6 1.7 0.8 0.2
    5. 5. $2.6 million revenue
    6. 6. 21.9% GLOBAL MOBILE PHONE MARKET SHARE
    7. 7. Samsung Electronics World-Class Organization Strategies
    8. 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. 9. Company Overview
    10. 10. Company Overview Mission & Vision
    11. 11. Company Overview Mission & Vision Sustainable Marketing Price Globalization
    12. 12. Company Overview Mission & Vision Sustainable Marketing Price Globalization SWOT analysis
    13. 13. Company Overview Was found in 1969
    14. 14. Company Overview ❖World’s largest electronic company ($117.4 billion) Was found in 1969
    15. 15. Company Overview ❖Currently19th rank in Brand value Was found in 1969
    16. 16. Company Overview ❖Key product divisions: LCD panel, Mobile, Home appliances, semiconductor, digital media Was found in 1969
    17. 17. Multidivisional structure with tall hierarchy
    18. 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. 19. Board Director Yoon-Woo Lee Vice chairman and CEO
    20. 20. Board Director Gee-Sung Choi President DMC business
    21. 21. Board Director Ju-Hwa Yoon President cooperate Auditing Team
    22. 22. Board Director Sang-Hoon Lee Executive Vice President
    23. 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. 24. Sales by business division 8 7 16 29 17 32 21 17 26 27 2007 2008 Digital Media Telecommunication Semiconductor LCD Other
    25. 25. Henrik Wei Regional Brand Manager
    26. 26. Mission and Vision Based on the value and philosophy of Samsung
    27. 27. Vision Leading the Digital Convergence Revolution
    28. 28. Gustaf Bergner R & D m a n a g e r
    29. 29. Mission Inspire the World, Create a Future
    30. 30. Mission Inspire the World, Create a Future Creative Solution New Innovative Technology Product
    31. 31. Mission Inspire the World, Create a Future Industry Partners Employee
    32. 32. Sustainable Strategy Global Harmony with People, Society and Environment
    33. 33. Harmony Society Environment People
    34. 34. Harmony Society Environment People
    35. 35. Harmony Society Environment People
    36. 36. Harmony Society Environment People
    37. 37. Harmony Society Environment People
    38. 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. 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. 40. Eco Management 2013
    41. 41. $ 4.3 Billion Investment Eco Management 2013
    42. 42. Planet First
    43. 43. Manufacturing Logistics Product Design Planet Consumer First Supplier Disposal & Parters Recycling
    44. 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. 45. Unit(%) 90 96 95 74 72 94 2006 2007 2008 2006 2007 2008 Employee Volunteer Employee Donation Ratio Participation Ratio
    46. 46. Marketing Strategies Understanding tomorrow markets and consumers Kyu-Hee Lee Assistant manager, Brand Marketing Group
    47. 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. 48. Marketing strategies Focus on the “digital” aspect -> “Samsung digital, everyone is invited” Training employee about brand Focus on sport marketing
    49. 49. Marketing strategies Focus on the “digital” aspect -> “Samsung digital, everyone is invited” Training employee about brand Focus on sport marketing
    50. 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. 51. Distribution and Pricing Strategies Marking smart choice that grow market Jee-Hyun Dina Lee Manager, Southeast Asia Sale & Marketing Group
    52. 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. 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. 54. Pricing Strategies Selling products for prices that suite product’s actual quality Adopt high price strategies and high-margin policy
    55. 55. Globalization Strategies It is globalizing... Angelo Vicari General Manager, Samsung experience
    56. 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. 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. 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. 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. 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. 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. 62. SWOT analysis Strength, Weakness, Opportunity, Threat
    63. 63. Strength Clear target, top-five position in 2020 with $21 billion investment Focus on innovation product - high-end market
    64. 64. Strength Clear target, top-five position in 2020 with $21 billion investment Focus on innovation product - high-end market
    65. 65. Strength Strong brand - 19th in brand value Heavy invest in technology, product design, human resources Catching need of customer well
    66. 66. Strength Strong brand - 19th in brand value Heavy invest in technology, product design, human resources Catching need of customer well
    67. 67. Weakness Slow process in approaching technology and design leadership Lack of product differentiation Not actual user affable design Excessive centralization
    68. 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. 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. 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. 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. 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. 73. The future of Samsung World Class Organization
    74. 74. Invest more in innovation ($400 billion) Changing company structure: more diversity Strive to have better work environment
    75. 75. Thank you

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