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Samsung Case Study

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Samsung Case Study

  1. 1. “ Imagine the Possibilities ” PRESENTED BY:RAMINDER PAL SINGH 12030141033
  2. 2. HISTORY OF SAMSUNG GROUP • Founded by Lee Beyong • Exporter of dry fish, vegetables and fruitsFounded in 1938 • Flour mill and confectionery machines • Korean war-Samsung lost all the assets • Aimed to help rebuild Korean economy.1950’s Economic • Entered the manufacturing industry(sugar ,fabrics) Stabilization • Become a leader in modern business practices ,recruiting from outside • Entered electronics and chemical industries • 1969 established Samsung Electronics Co.1960’s Expansion • After the death of founder, Samsung broke down into 4 groups: Samsung Group, CJof key Industries Group, Hansol Group and Shinsegae Group.
  3. 3. JOURNEY OF SAMSUNG ELECTRONICS • Manufactured over 10 million Black and White Televisions • Became World’s Third Company to manufacture DRAM • Launched First Mobile in 19881969-2000 • 2005 - Surpassed Sony to become World 20th largest and most popular consumer Brand • 2007 - world second Largest Mobile Phone Maker overtaking Motorola • 2009 - Achieved revenue of $117 Billion surpassing HP to Become world Leader in sales2000-2010 • Becomes world largest producer of Memory Chips • 2012- Become the World Highest selling Mobile Handsets beating NOKIA. • Became World Leader in Smartphone with Galaxy Series phones. 2010- Present
  4. 4. ELECTRONICS MACHINERY AND CHEMICAL FINANCIAL OTHER AFFLIATED INDUSTRY HEAVY INDUSTRY INDUSTRY SERVICES COMPANIES• SAMSUNG • SAMSUNG HEAVY • SAMSUNG TOTAL • SAMSUNG LIFE • SAMSUNG ELECTRO- INDUSTRY PETROCHEMICALS INSURANCE ENGINEERING MECHANICS • SAMSUNG • SAMSUNG • SAMSUNG FIRE • SAMSUNG C AND• SAMSUNG SDI TECHWIN PETROCHEMICALS AND MARINE T CORPORATION• SAMSUNG • SAMSUNG FINE INSURANCE • SAMSUNG CORNING CHEMICALS • SAMSUNG CARD EVERLAND PRECISION GLASS • SAMSUNG BP • SAMSUNG • SAMSUNG• SAMSUNG SDS CHEMICALS SECURITIES MEDICAL• SAMSUNG • SAMSUNG CORPORATION MOBILE DISPLAY VENTURE TRUST • S1 CORPORATION• SAMSUNG • SHILLA HOTELS DIGITAL IMAGING and RESORTS • CHEIL WORLDWIDE • And many more…
  5. 5. PRODUCT LINE OF SAMSUNG ELECTRONICS Samsung Product Breakdown CONSUMER PRODUCTS SEMI- TFT-LCD MOBILE PHONES 18% Media andTV/AUDIO/VIDEO CONDUCTORS TABLETS Appliances MEMORYCARDS Semi 34% Conductor PC HOME CAMERA 23% PERIPHERALS APPLIANCES CAMCODERS Telecom PRINTERS 25% BUSINESS PRODUCTS ENTERPRISE STORAGE TELE- FIBER OPTICS COMPRESSOR MOBILITY & PRINTING COMMUNICATION SOLUTION SOLUTIONS
  6. 6. SAMSUNG BUSINESS STRATEGIESUNDERSTANDING TOMORROW MARKET AND CONSUMERS• Robust market and consumer focused market sensing capabilities• E.g. vibration reduction tech, French door refrigeratorsCOLLABRATING FOR GREATER SYNERGY• Close collaboration between each department-from manufacturing and development to marketing and purchasingTHINKING OUT OF THE BOX• R&DARRIVING FIRST WITH SPEED AND DELIVERY• Consistently develop technology and ship product ahead of the restCONNECTING WITH CONSUMER LIFESTYLE• Develop products which fits the consumer lifestyleMAKING SMART CHOICES THAT GROW MARKET• Taking risks in investing in new technology
  7. 7. SAMSUNG UNIQUENESSBusiness Innovation• Wide Range of Products: new Product launch every year ,Brand value• SCM and Six Sigma : two pillars in business innovationTie Up with Start Ups• One of the top 4 conglomerates of the World.• Invested $1.2 Billion in Startups• Stakes of up to 29.9% in 80+ startups• Recently invested $5million in Startup named stoke(4G company)RESEARCH AND DEVELOPMENT• R&D: 7% of total revenues• Overseas Partners : Joint R&D Projects, Technology Transfer Agreements, Joint InvestmentsPricing• Deliver Product at Cheapest Rate• Target Mass Market
  8. 8. SAMSUNG BUSINESS MODEL CANVAS•Hardware Products •Brand •Distributers•Employees •Innovation•Management •SCM and SIX SIGMA •Personal Assistance: After sale service•Manufacturing •Cutting Edge Technology•Research and •GREAT DESIGNDevelopment •MASS MARKET •Cheap Prices•Investing in startups •Corporate Buyers •Green Products •Manufacturing Cost •Selling Products •Research and Development cost •Information and Communication •Distribution cost Services •Marketing and Advertisement cost •Financial Services
  9. 9. ORGANIZATION STRUCTURE OF SAMSUNG CHAIRMAN LEE KUN-LEE Regional Headquarters :North America, Europe, China, Southeast Asia, Southwest Asia, Latin America, Middle East, and Africa. CEO COO CFO Eco Product Council Green Management Committee Eco-Operation Council IT Solution Division MobileVisual Display Digital Appliance Digital Imaging Semiconductor Communication Network Division LCD Division Division (PC, Printers) Division Division Division Division
  10. 10. FINANCIALS Net Sales(dollars in billion) Market250200 China Asia 16% 16%150 Europe100 America 23% 28%50 Korea 17% 0 2006 2007 2008 2009 2010 2011 Net Sales(dollars in billion)
  11. 11. SWOT ANALYSIS•ABILITY TO REFRESH PRODUCT LINE •STRONG POSITION IN EMERGING •WEAK CUSTOMER PERCEPTION IN MARKET WESTERN WORLD •HARDWARE AND MOBILE BRAND •LACK OF DEEP CUSTOMER •HUGE R&D INVESTMENT SEGMENTATION •PRODUCT BREADTH •COMPETITORS: LG,SONY •RURAL SEGMENT •CHINA THREAT •GREEN TECHNOLOGY AND HEALTH •RISK OF CANNIBALIZATION BUSINESS •PATENTS LOOSENING

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