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Samsung Presentation

Samsung Case

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Samsung Presentation

  1. 1. Samsung Electronic Company<br />UlugbekKurbanov<br />Andrea Cirillo<br />Pietro Migliori <br />Ignazio Di Biase<br />Alessandro Monda<br />Emanuele Gasparini<br />23/04/2010<br />
  2. 2. Agenda<br />Part 1. Company’s Overview (Slides 3 – 8)<br />Part 2. SEC’s Market Position (Slides 9 – 15)<br />Part 3. Company’s Success (Slides 16 – 21)<br />
  3. 3. Samsung History (up to 1999)<br />Samsung is a Koreanfirmborn in 1938 as a company thatdealtwithgreengrocery and driedfish<br />In 1969 SEC (Samsung Electronic Company) wasfounded<br />In 1970’s itenteredinto semiconductor business<br />In 1980’s the Samsung TelevisionDivisionwasbuilt<br />In 1997-1999 AsianCrisis (Motor and Aircraftdivisionswere sold)<br />
  4. 4. Ingredientsof corporate TurnaroundStrategy<br />Becoming a world knownbrand (over 200 countries) by:<br />R&D (investing on scientifictalents)<br />Innovation (newdigitaltechnology)<br />Customization (newproductseveryyear)<br />New allocationof marketing resources (M-Net)<br />
  5. 5. Historyof Samsung (after 1999)<br />Kim became the executive vice-presidentof global marketing<br />In 1999 the GMO (Global Marketing Operation) wasbuilt<br />Between 1998 and 2003 about 36$ blnfornew chip factories and TFT-LCDswereinvested<br />In 2005 Samsung became the worldwideinvestor in semiconductor business overcoming Intel aswell<br />In 2006 a joint venture with Sony forLCDspanelswasestabilished<br />
  6. 6. Marketing Implications<br />Changeof the internalperceptionof Marketing<br />Division in threeStrategyTeams: Marketing, Regional and Product<br />MDC: a newinitiativetodevelopnewproductsclosertocustomers<br />Increaseeffortsfor advertising campaignwith the slogan “DigitAll-Everyone‘s Invited”<br />Strong sponsorshipactivities (i.e. Olympic Games, Football Teams and The Matrix Reloaded)<br />
  7. 7. Marketing Implications<br />SEC alsodevelopedsponsorshipswithstylists, suchas Giorgio Armani<br />The Matrix reloaded<br /><br />
  8. 8. M-NET software<br />Itis a programtoanalyzepastresultstounderstandwhich are the mostprofitableopportunities<br />Budget reallocationthrough 3 opportunities:<br />Reduce overspending (suchas in North America and Russia)<br />Identify high growthpotentialareas<br />Deletemisallocation in products<br />Improvements in management incentives<br />
  9. 9. ProductsBreadth<br />Samsung differentiatesfromitscompetitorsbyprovidingdifferentcategoriesofproducts<br />
  10. 10. ProductsBreadth<br /><br />
  11. 11. SWOT analysis of SEC<br />Strengths<br />Threats<br /><ul><li>Ability to refresh product line
  12. 12. Manufacturing as a core competence
  13. 13. Strong Positions in emerging markets
  14. 14. Obsolete products
  15. 15. Hardware & mobile brand
  16. 16. Risk of cannibalization
  17. 17. Digital convergence
  18. 18. Patents loosening
  19. 19. Huge R&D investments
  20. 20. Product breadth</li></ul>Opportunities<br />Weaknesses<br /><ul><li>Weak customer perception in western world
  21. 21. Outsourcing of non-core activities
  22. 22. Lack of deep customer segmentation
  23. 23. Reallocation marketing budget
  24. 24. No Software and Content oriented
  25. 25. Excessive Vertical Integration</li></li></ul><li>Competitors <br /><ul><li>Since SEC was a pioneer in manufacturing TV displays, in both of these categories the Company is a market leader.
  26. 26. SEC was the first mover in the LCD research field and it introduced 52-Inch-Flat -Screen</li></li></ul><li>Competitors (cont’d)<br />In the cell phone, industry SEC has grown fast despite its merely higher prices<br />SEC has significantly cut down costs for Chips manufacturing: SEC’s chips can store 3 times more information than Intel at the same price<br />
  27. 27. Buyers and Suppliers<br />Due to high vertical integration the bargaining power of suppliers is very low: in fact manufacturing is a core competence<br />Thanks to customization SEC’s prices are higher than average. Bargaining power of buyers is therefore low.<br />
  28. 28. Threat of entry and Substitutes<br />Barriers to entry in the digital industry are high, since enormous initial investments are required, particularly in R&D area<br />Analog technology is a substitute: it implies much lower costs however, nowadays, this has become obsolete<br />
  29. 29. Brand Positioning<br />SEC has changed from a “cheap OEM” to a “High value-added products provider”<br />Thanks to new marketing strategy, the SEC started to benefit from higher margins, exploiting its own brand name<br />Due to unique Brand Image, SEC is discovering new horizons <br />
  30. 30. Brand Positioning<br />
  31. 31. SAMSUNG vs SONY<br /><ul><li>Focus also on S/W
  32. 32. More orientedtoyouth market (ex: videogames)
  33. 33. Perceivedas a leader</li></ul>Focus on H/W<br />Highertechnologicaldiversification<br />Perceivedasaninnovator<br />
  34. 34. Top 10 in the world?<br />Samsung couldbeabletoovercome Sony<br /><ul><li>Wider portfolio ofproducts
  35. 35. Innovation & diversifiedtechnology
  36. 36. Top 10 in the world seems a toodifficult target toreach
  37. 37. Intensive competition
  38. 38. Low customerperception: “It’s notenough just tobeknown, youhavetobeloved.”</li></li></ul><li>Kim’s role and responsibilities<br />Kim’s roleistobuild company’s brandimageacross 200 countries<br />Internal marketing education<br />Developmentof career pathstoattracttop-qualitymarketers<br />Head of GMO (Global Marketing Operations) <br />Developmentof marketing plans<br />
  39. 39. Keys of Kim’s success<br />
  40. 40. That’s allfolks!!!<br />Alessandro, Andrea,Bek, Emanuele, Ignazio, Pietro<br />