Samsung was founded in 1938 and is now a global electronics leader, known for phones, displays, and memory chips. It transformed from a trading company to focus on electronics manufacturing. Samsung has the number one global market share in phones and uses strong marketing, manufacturing, and research and development capabilities. While Chinese and Apple competitors pose threats, opportunities exist in emerging markets and new technologies. Samsung invested heavily in R&D and advertising to drive innovation and growth.

1. Competitive Dynamics

2. INTRODUCTION
• Samsung was founded by Lee Byung-Chull in
1938 as a trading company.
• It is a South Korean Multi- National Company.
• Global Market Leader in more than 60
products including DRAM, SDRAM, LCD
Displays, etc
• Tagline- “ Inspire the World. Create the Future

3. TRANSFORMATION

4. SAMSUNG S WIDE RANGE OF
PRODUCTS NOW

5. Growth Engine of Samsung

6. Marketing Strategy
• Focussed on all the electronics manufacture
• Manufactures both components for products
and actual device

7. Contd..
• Enhanced product portfolio.
• Wide Distribution Channels.
• Adjust preferences for specific market.
• Increased Commitment to emerging markets.

8. Contd..
• Provide more than extra.
• Pours a lot of money into R&D

10. STRENGTH
• World’s most successful Electronics
Manufacturer.
• Number 1 marketer of mobile phones with
21.4% of world’s largest market share in
second quarter of 2015.
• Amazing Research and Design capabilities.

11. Contd..
• Strong manufacturing and marketing
strategies and capabilities.
• Innovative and attractive advertisements.

12. Weaknesses
• Chinese competitors are catching up to
Samsung in smart phone market.
• Apple Products are more advanced and more
reliable than Samsung
• Heavily Dependant on Consumer electronics
sales in market

13. Opportunity
• Growing market for smartphones, tablets and
other devices especially in developing
countries.
• Growing online market from sales channles
such as Amazon, Flipkart, etc.
• Research and Development might lead to new
technologies.

14. Threats
• Hasn’t been able to overcome Apple s reputation
for reliability
• Declining or stagnating middle class income in
North America and USA could reduce customer
buying power in those key markets.
• Apple could enter more consumer product areas
such as home appliance and camera and compete
with Samsung ie. threats from competitors.

15. Contd..
• Budgeted $40 billion during 2005-10 for
Research and Development. This type of huge
investment on R&D might back fire when
results aren’t obtained.

16. Product Life Cycle

17. Samsung s Marketing
• At a mass level, Samsung sponsored 6
Olympics and ran several global ad campaigns
• Had catchy lines like “ The Next Big Thing” to
lure customers.
• All the ads were family based and also added
some elements of humour.

18. Questions
1. What are some of Samsung s greatest
competitive strengths ?
Ans:
Throughout Samsung s existence, the brand
evolved with time resulting in competitive
strengths. In the beginning, it focussed on
volume and market domination. Then, cut
company fat, emphasised product quality
and manufacturing flexibility.

19. Questions
2. Samsung s goal of $400 billion in sales by 2020
would bring it to the same level as Walmart. Is
this feasible ?
Ans:
Yes. This is definitely feasible. Samsung is currently
the 9th largest global brand and the number one
in Smartphones, TV’s and memory conductors.
This leadership position suggests that they will
thrive when expanded into new areas. Moreover,
it sells $200Billion now without all these
expansions.

20. Summary
• Incredible transformation.
• Samsung phones are the growth engine of Samsung.
• Brilliant Marketing Strategy.
• Strength- No.1 marketer of Mobile Phones and
brilliant R&D.
• Weakness- Competitors catching up.
• Opportunity- Emerging countries, a big market.
• Threats- Apple perceived to be more reliable.
• Product Life Cycle.
• Good Advertisements

21. DISCLAIMER
• Created by Jishnu Mohan, SRM University
during a marketing internship by Prof. Sameer
Mathur, IIM Lucknow