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Black Box presentation Final
- 1. Black Box Samsung: Inspirethe world, Create the future
- 2. •Founded in 1938by Byung-Chull Lee •Electronics division began with a black-and- white TV •Strong semiconductor and memory sales •Began manufacturing cell phones in the 1990s Company Overview
- 3. Company Overview 26.7% USsmartphone market share - ComScore, Jan 2014 30.4% Global smartphone market share - Samsung Strategy/Analytics, Jan 2013 Aaa~Aa (Moody’s) AAA~AA (S&P, Fitch) A1 (Credit rating agencies in Korea)
- 4. Industry Analysis Five ForcesModel of Competition Analysis Threat of New Entrants â—‹ Low Large CAPEX requirements Bargaining Power of Suppliers â—‹ Low Suppliers forced to control SG&A Bargaining Power of Buyers â—• Medium High High quality requirements with price sensitivity Threat of Substitute Products â—• Medium High Relatively low switching costs and complementary goods Rivalry â—Ź High Large market demand saturated by many different suppliers
- 5. Industry Analysis Strength â—Ź Strongdistribution networks â—Ź High market share and leading industrial position â—Ź Advanced and innovative technology Weakness â—Ź Product patent infringement â—Ź Quality issue for mobile phones â—Ź Lack of trying for laptops Opportunity â—Ź Rapid development of smart tech â—Ź Revolution driven by big data centered in mobility, cloud and the Internet of Thing â—Ź Operating system dominated by iOS and Andriod Threat â—Ź Fierce competition with other high-tech giants â—Ź Saturated smartphone market
- 6. Strength • HeavyR&D • Strong marketing and advertising team • Physical retail footprint • Strong market position • Wide distribution network • Various range of premium products • Leading technology standards • Broad product and services ranges • Strong R&D technology • Focus on environmental- friendly and sustainable products Weakness • Relies on service manufacturers (e.g. Samsung, Foxconn) • Top-tier price • Limited types of products • Issues of product recalls • Decline in phone business • Weak outlook for future development • High costs of manufacturing prices • Lose main focus on consumer-electronic products • Reduction on financial performance Industry Analysis
- 7. Target Market Consumers: - 56% Americans with smartphone - Urban and Suburban markets - Gender split - Majority under the age of 54 - Over $50,000 annual income - Some college or higher - Largest ethnic/race: Black-non-Hispanic; Hispanic; White-non-Hispanic
- 8. Target Market Firms: - Manufacturers -Resellers - Retailers - Distributors
- 9. Key Issues • Highdegree of competition in virtually all markets • Patent infringement • Heavy R&D costs • Trust crisis • Weak outlook for new market and product expansion
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- 11. •Product 4P Strategy In-home consumerelectronics Portable consumer electronics Computers and peripherals
- 12. •Pricing - Products forprices that suit for real quality - Adopt Price Sensitive strategy
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- 15. Strategic Alternatives •Product Development -Add New Features - Improve Quality
- 16. •Market Development - “Experience”Store -Market Expansion Strategic Alternatives
- 17. Strategic Alternatives •Diversification New productswith new markets
- 18. Our Strategy Diversification - Stuffingfeatures problem - Blue Ocean Strategy - Increase market share - Capture new market
- 19. Tactics 1.Create Categories (innovation) •4% projected increase in global electronics demand • Immeasurable opportunity • “Lifestyle enabler” - Samsung COO - In-car technology - In-home technology - Wearable technology
- 20. Tactics 2.Customization ( Buildyour own device) • Reinforce Current Positioning • Attract New Customers • Collaborative Marketing - Self-pricing - Self-Segmentation
- 21. Risks • Uncertainty • SignificantInvestment
- 22. Measuring Implementation • BalancedScorecard - Backward Metrics - Forward Metrics (Crucial)
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