Final power point, group 4


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Final power point, group 4

  1. 1. October 13, 2010 Group 4: Ben Julian, Samantha Macdonald, Lauren McNamara, Tom Pojero, & Laura Voisine
  2. 2. 1. About Samsung – Tom 2. External environment- Ben 3. Internal analysis- Lauren 4. Business strategies- Laura 5. Problems identified- Samantha 6. Our suggestions- Samantha
  3. 3.  Founded in 1938  Headquarters in Samsung town, Seoul, South Korea  276,000 employees worldwide  World’s largest electronic company by sales  Lee Kun-Hee took over as CEO in 2009  They are also involved in shipbuilding, construction, life insurance and even have a theme park  20% of Korea’s GDP
  4. 4.  Consumer Products  Cell Phones and Televisions  21% of global cell phone market share as of Q3, 2009  23% of global television set market share as of Q3, 2009  Technology Products  Memory Chips and Displays  Over 40% of global market share of memory chips as of 2008  Products include devices such as flash drives, hard disk drives, and dynamic random access memory cards
  5. 5. o Consumers o Through large retailers like Wal-Mart, Best Buy and others o Cell phones, televisions, home appliances, and computers o Business to Business o Heavy Investment in R&D o Their incredible core technologies o Over 100 design awards o Business to Government (through other Samsung companies) o Nuclear Power Plants in the United Arab Emirates o Solar Energy in Ontario, Canada
  6. 6.  Employees and Communities – ◦ Largest corporation in Korea ◦ Major Employer of many Koreans and people worldwide ◦ Represent 20% of Korea’s GDP  Government – ◦ Major source of tax revenue  Suppliers and Customers – ◦ Huge consumer of materials and customer to many Korean companies ◦ Produce consumer products, customers look for good quality at reasonable price  Stockholders
  7. 7. Profitability Gained through market share - Differentiation Threat of Substitutes- Minimal Buyers – High Bargaining power, many choices in products Suppliers – Low bargaining power, Samsung is high volume customer Industry Competition- Television and Smart Phone market extremely competitive New Entrants – Threat exists in new product markets not in major markets
  8. 8. LED/3D Market LCD – Samsung, Sony, LG, Vizio, Philips Proscan, Memorex, AOC, Sansui, Major Brands Plasma Price Perceived Quality
  9. 9.  Value Chain Analysis: ◦ Technology development is the company’s strongest activity. ◦ Inbound Logistics is a possible area of improvement. They need to continue to find ways in which they can continue to cut costs. ◦ Possess a fast market launch, but other activities could further be improved.
  10. 10.  Competitive Advantage ◦ Samsung’s research and development team is what differentiates the company from its competitors. ◦ By continuing to utilize this differentiation strategy, the company will see an increase in profits. ◦ The innovation of their research and development team is going to be a key element of their future success.
  11. 11.  Previously cost management  New products are a result of Samsung’s desire to differentiate itself  Samsung’s position in the marketplace: Samsung LG Sony Toshiba *Chart shows revenue of each company
  12. 12.  Current revenue generators: ◦ Low cost, low priced products like laptops and basic cell phones  Potential growth areas: ◦ High end cell phones and tablets (the Galaxy line) ◦ Innovative home appliances ◦ Home theaters of the future (3-D technology)
  13. 13. Apple vs. Samsung Product Differentiation
  14. 14. Problems and Issues:  Hurt by the worldwide economic recession in 2008  On the brink of bankruptcy in the late 1990’s  Previously identified as a “me too” brand  Haven’t branched out into music, movies, or video games (like competitors Apple and Sony)  Inability to acquire The SanDisk Corporation (inventor and largest supplier of storage cards in the world)
  15. 15. Suggested Solutions: • Start taking risks! • Use techniques that have worked in other domains • Suggestion #1: continue building a fund for research and development to develop a strong competitive advantage over others • Suggestion #2: develop a more rigorous advertising campaign
  16. 16. Our Recommendations: • Maintain a logical research and development strategy – Don’t play “catch up” – Design and introduce new products to the market that will likely make a profit – If the product needs improvements or further innovation, re-visit R & D & invest more money – Don’t waste money in R & D of products that may not survive in today’s marketplace • Boost advertising and marketing campaign – Learn about consumers – Target the right people – Advertise more aggressively – Market products as innovative but within a reasonable cost range – Continue to cut down factory costs – Use just-in-time inventory management
  17. 17. Q&A Opportunity