Samsung's Business Case Study, its various aspects on its competitive dynamics, its future challenges and opportunities.

1. Analysis of Samsung’s Business
Structure
 Samsung’s Competitive Advantage
 Samsung’s competition with Apple
 Samsung’s goal of 400$ billion sales by
2020
 Present Challenges for Samsung
 Opportunities for Samsung
Ashish Upadhyay

2. Samsung’s Wide Range of Products
Samsung delivers a wide range of Products
Mobile Devices: Galaxy S7, Note,
SmartPhones, Tablets, Cameras
Home Apps: Refrigerators, Cooking
Appliances, Washing Machines, ACs, Vacuum
cleaners
IT: PCs, Monitor, Printer and its accessories
Memory Storage: USBs, SSD, Portable SSD

3. Samsung’s Price Ranges in its Different
Product Lines
Smartphones vary from Rs . 3990 for SamsungZ1
to Rs . 56990 for Galaxy Edge S7
ACs with price range between Rs. 31K and Rs. 60K
PCs with price range between Rs. 40K and Rs. 80K
Many more products and prices available,
catering to a diverse set of customers who vary in
their economic status, utility drivers, and social
aspirations.

4. Expanding Total Market Demand
Samsung is beefing up sales by providing by
providing annuity-like products and services that
are ordered again and again.
By providing products such as Lens NX and GX for
Cameras, Samsung toners and Samsung Imaging
Units.
Samsung generally brings new Mobile Phones
through packaging and redesign of its previous
products without much innovative change,
boosting the ‘amount of consumption’.

5. New Ways to use the Brand
Samsung Pay
It is an easy way for Customers to pay by attaching a
card with the ‘Samsung Pay’ application, they can
secure it with their Fingerprints.
Samsung Live Chat
In this feature, you are connected to the nearest
Samsung agent, where the consumers can ask their
queries and get immediate answers.
Samsung Gear Virtual Reality
A device to attach a Samsung phone and experience
Virtual Reality on the go.

6. Protecting Market Share by Product
Placements
Hotel chains(such as Hilton), where most in-
room technology was now dated and required
early replacement to retain competitive
advantage.
Their products are also used in various movies
which is also being used as a marketing base.
Giving away products at various sports events
as gifts to the players.

7. Sponsorships
The Summer and Winter Olympic
Games.
Chelsea Football club sponsorship
deal.
Horse Jumping (Samsung Super
league).

8. APPLE VS SAMSUMG (Competition
Analysis)
Apple is the lead competitor of Samsung,
when it comes to PCs and Smart Phones.
To put the numbers into perspective as per
ComScore’s data from August 2015, Apple had
44.1% market share , followed by Samsung
with 27.4% market share.

9. APPLE VS SAMSUNG(Contd.)
In 2010, Apple accused Samsung that it had
copied their model of iPhone into their Galaxy
Phones. Since then, there has been many
court files being bundled up.
Besides all this, Samsung continued to launch
its Smartphones and kept expanding to
various other Product lines, where Apple
didn’t explore. Therefore, this was the
competitive strategy for Samsung.

10. Research and Developments
Samsung invested a lot of money in R&D,
Samsung spent about 9% of its revenue in
2005 , around $5 billion.
This has resulted in a well diversified and well
differentiated product line, high product
depth; to meet changing customer needs.
It is focused on growing technologies and has
partnered with both Microsoft Windows and
Google’s Android Software.

11. Recent Marketing Strategies
Many of the Samsung’s recent marketing
strategies have been taken, taking into
perspective the decline of its Smartphone’s sales.
Samsung has not been pro-active coming out
with unique and leading models.
Durability of Samsung’s product has been under
question for the recent years.
Samsung will give more weight to its
semiconductor businesses this year as the
outlook on its smartphone business is uncertain.

12. Recent Marketing Strategies
• There has been a decrease in its sales, due to
fierce competition from Apple in Smartphones
and PCs.
• Various other brands like LG, Sony continue to
affect the market share of Samsung, resulting in
its decrease of share
from 2013-2015.
Samsung has continued
its commitments in
emerging markets.

13. PRODUCT LIFE CYCLE-SAMSUNG
MOBILES(India)
The following analysis has been observed by
marketers over Samsung and its Life Cycle.
However, Recent studies
have revealed that the
share had declined from
2013 to 2015.

14. PRODUCT LIFE CYCLE-SAMSUNG
MOBILES
 Introduction Stage (2001-2006)
 Launched very few models due to less demand, launched
Samsung R220 with simple blue display, competed with
then market leaders Motorola and Nokia.
 Growth Stage (2006-11)
 Launched phones without external antennae, Had better
features, Wide range of single and Dual sim phones
launched
 Maturity Stage(2011-present)
 Launched Smartphones with Android, Galaxy series
launched, Launched Windows phone to compete with
Nokia’s Windows Phones, Focussed on the Galaxy S Series
phones to compete with all the competitors.

15. Is Samsung’s Target of 2020 feasible?
 Samsung’s goal of $400 billion in sales by 2020 would
bring it to the same levels as Walmart.
 I think $400 billion in sales is not feasible by Samsung
unless it branches off to new markets and has new
products.
Market diversification will allow Samsung to spread the
sales across different markets and not just rely on
technology to get them to that goal
As the CEO has said, Samsung will explore areas like
HealthCare and Home Energy Products, Samsung will
have to make sure that it becomes the market leader
till 2020, in these product lines.

16. Is Samsung’s Target of 2020 feasible?
To enter in these new markets, it has to spend a
lot of money on their Introductory phase of life
Cycle, making sure they continue to dominate
market.
The CEO of Samsung may have calculated
inflation in the numbers as well, very high
inflation.
There are too many unforeseeable threats in the
electronics industry, Staying cutting edge can only
last so long before another company comes in
and does it better.

17. Present Challenges for Samsung
 There has been a slowdown in the Smartphone sales of Samsung,
impacting its revenues in the fiscal year 2016.
 The strengthening Korean
won made Samsung’s
product Expensive.
 Samsung’s Product S6 has
failed to earn the desired
revenue, forcing them to
cut its price just 3 months
after its launch.
 Leading mobile chipmaker Qualcomm
and Samsung noted that the trend is
moving away from high-end smartphones
toward mid- and low-end smartphones.

18. Strategic Steps to be taken by
Samsung
Despite the challenging environment, Samsung is
looking to maintain a double-digit margin in the
mobile business by streamlining its smartphone
product portfolio, capitalizing on mid- and low-
end smartphone demand, and improving
competitiveness by offering software, hardware,
services, and wearable products along with its
smartphones.
Samsung is also launching its flagship product
Galaxy S7 in order to boost sales.

19. Strategic Steps to be taken by
Samsung
 Presently, Samsung’s semiconductor business is one of its most profitable
businesses, accounting for 45% of its total Profit, so it’ll have more focus in
this field.
 In the memory space, Samsung
is looking to increase its
products’ competitiveness by
making advanced technological
improvements. Although the
demand for smartphones & PCs
is slowing, the demand for greater
memory capacity continues to increase.
Capitalizing on this trend, Samsung
will manufacture high-end memory
chips.

20. Opportunities for Samsung
Samsung has the opportunity to expand its market
reach to new segments – the average buyer.
Samsung also has the opportunity to take its low
cost memory chip to different markets. The low
cost memory chip is attractive for any company
that has memory enabled devices.
Samsung would not have to dump money into R&D
for memory chip market penetration strategies
because the product already exists and is up-to-date.