Table of Contents

1 Company background...............................................................................................................2
1.1 Company Overview..........................................................................................................2
2 Company mission, vision, and goals........................................................................................3
2.1 Mission..............................................................................................................................3
2.2 Vision................................................................................................................................4
2.3 Goals.................................................................................................................................4
3 Swot Analysis...........................................................................................................................5
3.1 Strengths............................................................................................................................5
3.2 Weaknesses.......................................................................................................................6
3.3 Opportunities.....................................................................................................................7
3.4 Threats...............................................................................................................................9
4 Samsung buying behaviors.....................................................................................................10
4.1 Samsung electronics ethical standards for purchasing....................................................11
4.2 Example of company that had been bought by Samsung...............................................12
5 Company relationship management.......................................................................................16
6 Samsung business to business marketing strategies...............................................................17
6.1 Market Opportunities Analysis.......................................................................................17
6.1.1 Geographic...............................................................................................................18
6.1.2 Demographic............................................................................................................18
6.1.3 Psychographic..........................................................................................................18
6.2 Product Management......................................................................................................18
6.3 Channel and logistic........................................................................................................19
6.3.1 Distribution Channels And Logistics.......................................................................19
7 Conclusions and recommendations...................................................................................21

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 1.0 Company background

Company Overview

Samsung Electronics Co., Ltd. is a South Korean multinational electronics company

headquartered in Suwon, South Korea. It is the flagship subsidiary of the Samsung Group,
accounting for 70% of the group's revenue in 2012, and has been the world's largest information
technology company by revenue since 2009. Samsung Electronics has assembly plants and sales
networks in 80 countries and employs around 370,000 people. Since 2012, the CEO is Kwon Oh-
Hyun.

Samsung has long been a major manufacturer of electronic components such as lithium-
ion batteries, semiconductors, chips, flash memory and hard drive devices for clients such as
Apple, Sony, HTC and Nokia.

In recent years, the company has diversified into consumer electronics. It is the world's
largest manufacturer of mobile phones and smartphones fueled by the popularity of its Samsung
Galaxy line of devices. The company is also a major vendor of tablet computers, particularly its
Android-powered Samsung Galaxy Tab collection, and is generally regarded as pioneering the
phablet market through the Samsung Galaxy Note family of devices.

Samsung has been the world's largest manufacturer of LCD panels since 2002, the
world's largest television manufacturer since 2006, and world's largest manufacturer of mobile
phones since 2011. Samsung Electronics displaced Apple Inc. as the world's largest technology
company in 2011 and is a major part of the South Korean economy. In June 2014 Samsung
published the Tizen OS with the new Samsung Z.

For over 70 years, Samsung has been dedicated to making a better world through diverse
businesses that today span advanced technology, semiconductors, skyscraper and plant
construction, petrochemicals, fashion, medicine, finance, hotels, and more. Our flagship
company, Samsung Electronics, leads the global market in high-tech electronics manufacturing
and digital media.

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 Through innovative, reliable products and services; talented people; a responsible
approach to business and global citizenship; and collaboration with our partners and customers,
Samsung is taking the world in imaginative new directions.

Company mission, vision, and goals

Mission

Everything we do at Samsung is guided by our mission: to be the best digital-

Company.

Samsung grew into a global corporation by facing challenges directly. In the years ahead, our
dedicated people will continue to embrace many challenges and come up with creative ideas to
develop products and services that lead in their markets. Their ingenuity will continue to chart
Samsungs course as a profitable, responsible global corporation.

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 Vision

Samsung is guided by a singular vision: to lead the digital convergence movement.

We believe that through technology innovation today, we will find the solutions we need to
address the challenges of tomorrow. From technology comes opportunity-for businesses to grow,
for citizens in emerging markets to prosper by tapping into the digital economy, and for people to
invent new possibilities.

Its our aim to develop innovative technologies and efficient processes that create new markets,
enrich peoples lives and continue to make Samsung a trusted market leader.

Goals

As stated in its new motto, Samsung Electronics' vision for the new decade is, "Inspire the
World, Create the Future."

This new vision reflects Samsung Electronics commitment to inspiring its communities by
leveraging Samsung's three key strengths: New Technology, Innovative Products, and
Creative Solutions. - and to promoting new value for Samsung's core networks - Industry,
Partners, and Employees. Through these efforts, Samsung hopes to contribute to a better world
and a richer experience for all.

As part of this vision, Samsung has mapped out a specific plan of reaching $400 billion in
revenue and becoming one of the worlds top five brands by 2020. To this end, Samsung has also
established three strategic approaches in its management: Creativity, Partnership, and
Talent.

Samsung is excited about the future. As we build on our previous accomplishments, we look
forward to exploring new territories, including health, medicine, and biotechnology. Samsung is
committed to being a creative leader in new markets and becoming a truly No. 1 business going
forward.

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 Swot Analysis

STRENGTHS WEAKNESS
Diversified Legal
Business Mix Proceedings
Wide Geographic
Reach

OPPORTUNITIES THREATS
Rising Demand Intense
for Smartphones Competition
New Product Falling Demand
Launches for PC's & TV's
Growing Demand
for LTE
Technology

Strengths

Diversified Business Mix

Samsung offers a wide range of electronic goods under diverse businesses allowing it to
effectively manage and mitigate risk. The company operates through four business division,
namely, Consumer Electronics (CE), Information Technology &Mobile Communications (IM),
Semiconductor Business, and Display Business (DB). The companys CE business division
offers color TVs, monitors, MP3 players, DVD players, home theater systems, digital
camcorders and portable entertainment devices, Touch of Color TVs and 4th-generation Blu-ray
disc players, among others. It also manufactures and sells handsets, networking systems and
other consumer electronics including home appliances such as air conditioners, refrigerators, air
purifiers, microwaves, washing machines and remote controlled digital home networks
incorporating new technology and design for consumers.

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The IM business division of Samsung provides communication systems, laser printers,
computers, and tablets and mobile phones, among others. The companys Semiconductor
Business division offers dynamic random access memory, static random access memory, NAND
flash memory, Solid State Drives, logic and analog integrated circuit devices, display driver IC,
CMOS image sensor, mobile application processor, smart card IC, and media player SoC, among
others. Samsungs Display Business division offers panels for TVs, digital information displays,
notebook PCs and desktop monitors. It produces various display panels for mobile products. The
division also manufactures next-generation products such as ultra-slim, edge-lit LED-backlit
LCD panels, and advancements in LED-backlit panel design, and 240Hz LCD technology.
In2013, the company generated 53.8% of revenue from IM business, followed by, CE business
with 22.5%, Semiconductor with 12.7%, and DP business with 11%.

Wide Geographical Reach

The company operates through more than 200 offices in over 80 countries. Samsungs major
sales offices are located in Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, the
Philippines, Singapore, Thailand, Russia, Ukraine, Kazakhstan, Austria, Serbia, France,
Germany, Greece, the UAE, South Africa, Turkey, Jordan, the US, the UK, Canada, Mexico,
Argentina, Brazil, Peru, and Panama, among others. Geographically, the company operates
across five regions, namely, Korea, America, Europe, Asia and Africa, and China. For the fiscal
year ended December 2013, the company generated 34.7% revenue from Korea, 17% from
America, 14.2% from Europe, 13.7% from Asia and Africa, and 20.4%from China.

Weaknesses

Legal Proceedings

Involvement in litigation mainly on products and their features may result in increasing
expenses, which in turn affect its profits and brand image. In March 2014, ZiiLabs Inc., Ltd filed
a patent infringement lawsuit in the US against Samsung Electronics Co Ltd and Apple Inc
alleging that certain products of Samsung (including various Galaxy phones and tablets, and
laptops) and Apple (including various ranges of the iPhone and iPad, iMac and Mac Book Pro)
infringe a number of ZiiLabs patents.

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Moreover, DSS Technology Management, Inc. filed a patent infringement lawsuit against
Samsung Electronics Co, Taiwan Semiconductor Corporation and NEC Corporation of America
in the United States District Court alleging infringement by Samsung, NEC and TSMC of
patents related to semiconductor manufacturing.

In November 2013, LARGAN Precision Co Ltd filed a lawsuit against Samsung, Samsung
Electronics America, Inc. and Samsung Telecommunications America, LLC, with U.S. District
Court for the Southern District of California, for violation of lens design and other patents owned
by LARGAN Precision.

In August 2013, Straight Path IP Group Inc. filed patent protection actions against, and is seeking
damages from Blackberry Ltd, Huawei, Samsung, and ZTE. It seeks damages on the sale of the
electronics manufacturers' alleged infringing products including handsets, tablet computers,
smart TVs, Blu-ray players, and set-top boxes.

In March 2013, Samsung countersued Ericsson claiming that the mobile equipment maker
infringed several of its patents including those relating to data transmission, a filing in a U.S.
district court showed. The filing comes after Ericsson filed a suit against Samsung Electronics
Co Ltd in November in a U.S. court alleging the South Korean company infringed its mobile-
technology patents after the two companies failed to agree on licensing terms.

Opportunities

Rising Demand for Smartphones

Rising demand for smartphones could improve Samsungs earning capability and market share.
Smartphones have the highest near-term purchase intent amongst any portable connected
devices. According to in-house research, global mobile subscriptions are expected to reach 8.99
billion at a CAGR of 6% from 2013 to 2018. The key drivers include greater product innovation,
expanding 4G networks, decreasing prices and increasing competition among smartphone
manufacturers. Samsung offers a wide range of smartphones and developing products using
latest technologies such as LTE. The companys Galaxy S4 recorded global sales of 10 million
and launched S4 LTE-A, the LTE-A smartphone. The company expects its smartphone shipments
to increase by more than 10% in 2014.

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 New Product Launches

The company strives to manufacture innovative products to meet customers changing

requirements. Launch of innovative products at regular intervals helps Samsung retain and attract
customers and increase its market presence. In June 2014, Samsung introduced the Samsung
845DC EVO Solid State Drives, adding a new SSD line designed for use in data centers to its
award-winning memory portfolio. During the same month, the company introduced the Samsung
Z, the smartphone powered by the Tizen platform. Furthermore, Samsung announced plans to
release Tizen-based Samsung TV SDK, the first Software Development Kit that allows
developers to build applications for the Tizen-based TV.

In April 2014, Samsung launched the Samsung Galaxy K zoom, new camera specialized
smartphone. During the same month, Samsung announced the Samsung Level, a new series of
premium audio products. The Level series is comprised of four types of expertly crafted audio
products for any type of mobile user: Level Over, Level On, Level In, and Level Box. The
company also launched the new Galaxy S5 and the Samsung Gear devices Samsung Gear 2,
Samsung Gear 2Neo, and Samsung Gear Fit.

In 2013, Samsung launched Business Core Printing Solutions for small and medium sized
businesses to increase workplace efficiency through easy-to-use, serverless printing and unveiled
the GALAXY Note 10.1, 2014 Edition. It also launched Samsung GALAXY S4 Zoom and the
compact GALAXY S4 Mini and Samsung GALAXY S4, the next generation smartphone.

Growing Demand for LTE Technology

Demand for providing mobile broadband services using LTE (Long Term Evolution)
technologies is expected to increase, which may present growth opportunities for the company.
According to in-house research, as of year-end 2012, LTE network subscriptions reached 65.6
million worldwide. Looking further ahead, as networks and devices proliferate, facilitated by
multi-standard radio technology, LTE subscriptions are expected to approach 1.6 billion by 2018,
or 17.3% of global mobile subscriptions.

In January 2014, Samsung and KT announced plans to launch commercial eMBMS (evolved
Multimedia Broadcast and Multicast Service) to KTs LTE subscribers using the Samsung

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Galaxy Note 3. eMBMS is a new LTE technology that enables multiple users to simultaneously
and efficiently enjoy HD quality video service for an enhanced multimedia consumption
experience. In November 2013, Telefnica Chile (Movistar) uses Samsungs advanced and
differentiated LTE network solutions to offer LTE services throughout Chile. In September 2013,
OJSC Mobile TeleSystems and Samsung completed the first stage of MTS LTE network in
Russias Pskov region and the beginning of the testing of 4G network services.

Threats

Intense Competition

Samsung operates in a highly competitive technology market offering consumer electronics,

memory products, mobile handsets, and displays and lights, among others. These markets are
characterized by short product life cycles, continual performance enhancements, and rapid
adoption of technological and product advancements by competitors in the retail market, and
price sensitivity in the original equipment manufacturer market. It mainly competes with Dell,
Hewlett-Packard, LG Electronics and Acer in notebooks market; Sony, Toshiba, and Philips in
consumer electronics market; LG Electronics, Panasonic, Sharp Corp., and Sony in digital
appliances market; Nokia, Motorola, Apple, Sony Ericsson, Lenovo, and HTC in mobile market.
The level of competition in low cost smartphone market is expected to be high, as manufacturers
are undertaking many pricing initiatives. For instance, Intex and Spice together formed a
partnership with Mozilla to launch worlds cheapest smart phone. In India, Celkon launched first
Android 4.4 KitKat smartphone, Campus A35K, for INR2,999, whereas its another competitor
Karbonn, introduced an entry-level dual SIM Android-based mobile device for INR2,790. If the
company fails to take such initiatives, its business operations may be affected.

Falling Demand for PCs & TVs

Decline in demand for TVs may affect the companys business operations. The TV Shipments
are expected to fall due to the emergence of mobile devices and tablets. Although Samsung
maintains number one position in total TV market, including FPTV and LCDTV, the decline in
shipments may affect its overall business growth.

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 Samsung buying behaviors.

Fairness
Samsung complies with all laws and regulations in the countries of its purchasing
activity, and conducts all of its business activities in an ethical and lawful manner.

Openness
Samsung believes that the competitiveness of its suppliers helps the competitiveness of
the company. Any company is welcomed to propose business collaborations with
Samsung.

Win-win Cooperation
Samsung promotes cooperation with its suppliers to enhance their competitiveness based
on the belief that the company

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 Samsung electronics ethical standards for purchasing

1. We shall perform sound and fair purchasing activities, and pursue ethical behavior based
on the awareness that the actions of the individual represent our corporate reputation.
2. We shall comply with the local regulations and business ethics of each country when
performing purchasing activities.
3. We shall not pursue personal interests in dealing with the current or potential partners by
taking advantage of a superior status or favorable relations.
4. We shall not engage in any activity that might cause financial or material damage, make
an unreasonable request, or provide preferential treatment by abusing our authority with
our suppliers.
5. We shall not leak or personally use tangible/intangible assets that belong to the company
or suppliers, or any other private information acquired during work.
6. We shall use appropriate language and maintain respectful behavior when communicating
with stakeholders such as suppliers, and not cause inconvenience to suppliers by calling
or visiting their employees more than necessary.
7. We shall accept any responsibilities related to civil/criminal liability and personnel
matters should we violate the standards stated above. Samsung Electronics is committed
to establish a clean and transparent purchasing organization, and apply the Samsung
Employee Business Conduct Guidelines and our ethical management principles to any
cases that are not defined in these Ethical Standards for Purchasing.

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 Example of company that had been bought by Samsung

The acquisition is Samsungs largest ever, and places the electronics company in the vanguard of
the automotive industry, and marks the latest ambitious foray by an established name in the
technology world into a new generation of smart objects, collectively called the internet of
things.

November 14, 2016

Samsung Electronics and Harman International Industries today announced that they
have entered into a definitive agreement under which Samsung will acquire HARMAN for
$112.00 per share in cash, or total equity value of approximately $8.0 billion. Upon closing, the
transaction will immediately give Samsung a significant presence in the large and rapidly
growing market for connected technologies, particularly automotive electronics, which has been
a strategic priority for Samsung, and is expected to grow to more than $100 billion by 2025.

HARMAN is the market leader in connected car solutions, with more than 30 million
vehicles currently equipped with its connected car and audio systems, including embedded
infotainment, telematics, connected safety and security. Approximately 65% of HARMANs $7.0
billion of reported sales during the 12 months ended September 30, 2016 are automotive-related,
and its order backlog for this market at June 30, 2016 was approximately $24 billion.
HARMANs experience designing and integrating sophisticated in-vehicle technologies, as well
as its long-term relationships with most of the worlds largest automakers, will create significant

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growth opportunities for the combined business by enabling it to leverage Samsungs expertise in
connected mobility, semiconductors, user experience, displays and its global distribution
channels.

In addition, the combination of HARMANs brands and audio capabilities and Samsungs
expertise in consumer electronics will deliver enhanced customer benefits and elevate user
experiences across Samsungs complete portfolio of consumer and professional products and
systems.

HARMAN perfectly complements Samsung in terms of technologies, products and solutions,

and joining forces is a natural extension of the automotive strategy we have been pursuing for
some time, said Oh-Hyun Kwon, Vice Chairman and Chief Executive Officer of Samsung
Electronics.
As a Tier 1 automotive supplier with deep customer relationships, strong brands, leading
technology and a recognized portfolio of best-in-class products, HARMAN immediately
establishes a strong foundation for Samsung to grow our automotive platform. Dinesh Paliwal is
a proven global leader and, in our extensive discussions, we have developed deep respect for
him, his strong senior leadership team and HARMANs talented employees. HARMANs
sustained track record of rapid growth fueled by technology leadership and an unmatched
automotive order pipeline reflects its commitment to innovation and customers.

The vehicle of tomorrow will be transformed by smart technology and connectivity in the same
way that simple feature phones have become sophisticated smart devices over the past decade,
added Young Sohn, President and Chief Strategy Officer of Samsung Electronics.
Dinesh Paliwal, HARMAN Chairman, President and CEO, stated, This compelling all-cash
transaction will deliver significant and immediate value to our shareholders and provide new
opportunities for our employees as part of a larger, more diversified company. Todays
announcement is a testament to what we have achieved and the value that we have created for
shareholders."
"Samsung is an ideal partner for HARMAN and this transaction will provide tremendous
benefits to our automotive customers and consumers around the world. Combining Samsungs
strengths in leading-edge displays, connectivity and processing solutions with HARMANs
technology leadership and long-standing customer relationships will enable OEMs to provide
new offerings for their customers. Partnerships and scale are essential to winning over the long

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term in automotive as demand for robust connected car and autonomous driving solutions
increases at a rapid pace."

"This transaction will bring HARMAN and Samsungs complementary strengths together to
accelerate innovation in this space. More broadly, this investment underscores the strength of
HARMANs employees, as well as our success and leadership across our markets. We look
forward to working together with Samsung to elevate experiences for consumers worldwide.

Customer Benefits and Significant Growth Opportunities

Samsung expects the combination to deliver significant growth opportunities and benefits to
customers by leveraging Samsungs and HARMANs complementary technologies, resulting in
increased market penetration across important end markets.
Automotive: Combining HARMANs leadership in new connected car technologies,
including its top positions in infotainment, cyber security, over-the-air updates and telematics,
with Samsungs significant expertise and experience in connectivity technologies, including
5G, UX/UI, display technology and security solutions, will enhance HARMANs automotive
and connected services businesses to drive greater sales and provide significant benefits as
automakers speed the adoption of next-generation connected cars.
Audio: HARMANs leading brands and cutting-edge audio systems include JBL,
Harman Kardon, Mark Levinson, AKG, Lexicon, Infinity, and Revel. The
company also licenses Bowers & Wilkins and Bang & Olufsen brands for automotive. All
of these brands will greatly enhance the competitiveness of Samsungs mobile, display,
virtual reality and wearable products to deliver a fully differentiated audio and visual
experience for customers.
Professional: The combination will also expand the combined companys business-to-
business platform through its ability to deliver integrated, large-scale audio and visual
professional solutions at stadiums, concert facilities and other performance centers such as
The John F. Kennedy Center for the Performing Arts and STAPLES Center home of the
GRAMMY Awards.
Connected Services: Samsung will gain access to HARMANs 8,000 software designers
and engineers who are unlocking the potential of the IoT market. This collaboration will
deliver the next generation of cloud-based consumer and enterprise experiences, as well as

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 end-to-end services for the automotive market through the convergence of design, data and
devices.

Operating Structure and Leadership

Upon closing, HARMAN will operate as a standalone Samsung subsidiary, and continue to be
led by Dinesh Paliwal and HARMANs current management team. Samsung is pursuing a long-
term growth strategy in automotive electronics, and plans to retain HARMANs work force,
headquarters and facilities, as well as all of its consumer and professional audio brands. Samsung
believes the combination will increase career development and advancement opportunities for
the employees of both companies.
Samsungs Automotive Electronics Business Team, which was established in December of 2015
to identify opportunities for Samsung in the automotive sector, will work closely with the
HARMAN management team to realize the full growth potential of the combination.

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 Company relationship management

One of example company that use CRM is samsung. Samsung is a market leader in
Consumer Electronics and Cell Phones. For more than 70 years, Samsung has been at the
forefront of innovation. Our discoveries, inventions and breakthrough products have helped
shape the history of the digital revolution.

cut the time in the supply chain, SAMSUNG Electronics stringing 4 processes, namely
the process of customer management, process R & D management, and supply chain
management processes. The process that will connect the R & D, production, marketing and
customers. Also, to answer the needs of IT infrastructure in order to speed up 4
processes, They use the ERP system (Enterprise Resource Planning - Resources Action Plan) on
the branches throughout the country and abroad.

SAMSUNG Electronics will combine and make the system network SCM (Supply Chain
Management-Procurement Interwoven Management), PDM (Product Data Management) and
CRM (Customer Relationship Management) and develop management information systems
appropriate world time.

One way of Samsung to run CRM is with use facebook. Samsung use facebook and
create their self part in facebook to their activities especially sales, marketing and to give serve
of customer. Samsung can promote their product using facebook. We know that facebook is one
of succes social media with more than 2 millions follower in wolrd.

Samsung can promote their product using facebook. Can publish about new product to
much people, with writing at the wall or etc. Example is when Samsung promote Nexus as a new
product, they write in wall : Nexus S is here! Samsung has announced the release of the first
smartphone to feature the new Google Android 2.3 OS. Nexus S will be available in the U.S. and
U.K. later this month.

Beside Samsung can give serve to customer. It is trough wall of facebook or through the
board discussion. Samsung use facebook to as a place to talk about Samsung Mobile and all
things mobile. Samsung hear abou suggest from customer, hear abou the advice, or about the

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complain from the customer. Then they respons it. It is one of act, that they care to
customer. They love passionate conversation, but let's keep it clean and fun. They reserve the
right to remove content we deem abusive, offensive, or off-topic and will block users from this
page if repeated inappropriate behavior is observed. One more thing. If we need assistance with
your Samsung product, the fastest and most effective way to reach it is
at www.samsung.com/support. As we known Samsung Hava a filosofi is devote human
resources and technology to create products and exceptional service, thereby contributing to a
better global society.

SAMSUNG Electronics provide unique solutions to meet customer needs. For this,
Samsung will expand marketing programs based on CRM (Customer Relationship Management
Customer Relationship Management) at the world level that can be applied to all products.
Samsung also will develop a digital network by improving the compatibility between products
with the best solutions to serve our customers. SAMSUNG Electronics place and will continue to
place our consumers' needs as the main thing driving the market for a company who can be
trusted.

Samsung business to business marketing strategies

Market Opportunities Analysis

Segmentation and Target Market

Segmentation means that dividing the market into groups, which are Geographic, Demographic,
Psychographic and Behavioural. Segmentation in the market-driven strategy process is segments,
value opportunities, and new market space, matching value requirements with capabilities,
market targeting and strategic positioning. Samsung has done its segmentation of the market
based on the above categories. According to our research behavioural and Psychographic
happens to be the current segmentation strategy of Samsung.

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1.1.1 Geographic
It sells their phones worldwide around 61 different countries by making slight changes according
the countries need. It has divided the market into different regions of Asia such as northern,
eastern and southern areas. Samsung is targeting different countries of Asia differently by
dividing as different markets such as Indian Market, China market.

1.1.2 Demographic
For the demographic segment, Samsung have divided into 5 segment such as Age, family size,
income, gender and occupation. For age factor is not really involved in Samsung segmentation
but its most users are adults enthusiastic people. Secondly, Samsung products are available to
every family size, which is for family size. Then, for income factor, Samsung products are
available to every income class with their own preferences. It has products for lower middle,
Middle and upper middleclass. Samsung Galaxy range is very attractive to Youth
because it has many features such as Great quality camera and multi task handling. It is also a
good option for businessmen. Moreover, Samsung home theatre system is equally beneficial for
male and female. Lastly, Samsung has divided the consumer into different categories based upon
their occupation such as businessman, self-employed, students and teachers

1.1.3 Psychographic
Samsung mobiles are available for every lifestyle personality whether its sporty lifestyle or
professional style. It offers mobile phones in different colours to attract especially girls
attention. The price of mobile phones varies from different models.

Product Management

As the man passes through different scenes, Samsung products transform into more advanced
models. According to company sources, the idea was to convey the message that Samsung uses
Nobel Prize Laureates' ideas for making its products. Samsung Electronics: Innovation and
Design Strategy - In January 2008, Samsung Electronics won 32 innovation and design
engineering awards at the Consumer Electronics Show. This is a management strategy case that
explores product design, innovation strategies and strategic planning in a changing competitive
landscape. While investment in R&D and product design has rewarded Samsung Electronics
with its dominant market position and premium brand perception, such dominance may not be

18
sustainable in the long run, especially now that competitors are achieving higher profitability
with lower investments in R&D per product. The case also discusses such issues as product
design philosophies, innovation strategies, localization of products, product design outsourcing
for consumer electronics products. Samsung has also received International Design Excellence
Awards (IDEA) awards. According to the company: Since 2009, Samsung has won the most
(IDEA) awards among all nominated companies.

The companys commitment to producing ecologically friendly products and to decrease its
greenhouse gas emissions has also been recognized. Samsung has been named as one of the
worlds top-ten companies in the Carbon Disclosure Leadership Index (CDLI). Few other
companies have received as many awards for innovation and eco-friendly product design as
Samsung. This enhances the companys reputation, increasing brand awareness and sales.

Design strategy is a discipline which helps firms determine what to make and do, why do it and
how to innovate contextually, both immediately and over the long term. This process involves
the interplay between design and business strategy, forming a systematic approach integrating
holistic-thinking, research methods used to inform business strategy and strategic planning which
provides a context for design. While not always required, design strategy often uses social
research methods to help ground the results and mitigate the risk of any course of action. The
approach has proved useful for companies in a variety of strategic scenarios.

Channel and logistic

1.1.4 Distribution Channels And Logistics

Firstly distribution channels is defined as a set of independent organisations involved in the
process of making a product or service available for use or consumption by the consumer or
industrial user Kotler, Armstrong. More over distribution channels come in 3 different forms.
Firstly is manufactures sell directly to consumers. Secondly, manufactures sell to retailers then
retailers to consumers. And the thirdly is manufacture sell to wholesaler who sell to retailers who
then sell to consumers.

Demurrage costs are tight control over inventory management. Goods ordered by the dealer or
the distributor must be claimed and stored by them in their inventory. In the event of ordered

19
goods remaining unclaimed, the company has the right to penalise the distributor or the dealer, as
the company has to arrange for extra space through third parties. These costs are to be borne by
the dealer or the distributor (in addition to heavy penalties) known as demurrage costs. Trade-
off between extra goods on display and risk of inventory clearance .Based on speculation and
consumer trends in buying, dealer may order extra goods. Placement of new goods in strategic
places by the dealer (again, based on speculation and observed consumer habits.) Risk of
penalties due to inventory hold-up, against the profit garnered from selling new goods (say, a
newly introduced hot-selling product at that time,) faster based on dealers ideas and
speculations. Every square inch of the store has a cost and penalty associated with it. F8

Bidding System is used by the company to select dealers. Strength of the balance sheet and the
reputation of the dealer is looked at before authorizing the dealer. Incentives to the distribution
channel are through certificates of recognition. Zero Credit policy followed by company when
dealing with distributors and dealers. However, the distributor may allow for a credit period of 7
days, depending on the health of the retailers balance sheet. Offers like goods free with other
goods are almost always given by retailers to push sales during festive seasons. Company does
rarely gives such offers. Companys promotions may be through scratch cards, free trips and/or
microwave cooking kits etc. Explicit offers are generally made by the retailers.

Samsung Electronics America is looking to expand its market presence, by making it easier for
solution providers to source product and support through its new Samsung Team of Empowered
Partners (STEP) program. STEP is the cornerstone of a global effort by Samsung to consolidate
resources and simplify accessibility for partners. Currently, Samsungs channel effort is divided
by regions and product lines. So by consolidating, Samsung is making a concerted effort to bring
more partners into and expose more opportunities to channel partners.

Further, Samsung leads the global IT industry by not only developing innovative products and
solutions, but also investing in programs, like STEP which are essential to creating shared
success with our partners, said Richard Hutton, director of channel marketing at Samsungs
Enterprise Business Division. In some regards, Samsungs new channel effort could be called a
channelification of the company. By nature Samsung does much of its business through
partners, but in a fractured way. Thus STEP and its complementary support programs are
designed to not just simplify and expand support, but make Samsung more approachable.

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 In essence STEP is Samsungs effort to consolidate its channel resources and also serve
as a launch pad for expanding its re seller network in the North America market of 13,000
partners by launching a recruitment campaign, which will be followed by a return to the channel
program providing greater clarity to partners on product and services opportunities. Further
according to Richard Hutton director of channel marketing at Samsungs Enterprise Business
Division, Samsung is focused solely on a channel sales approach and continuously look for ways
to improve its channel offerings by identifying new tools, technical expertise and marketing
strategies to help its partners elevate their businesses competencies.

More over Samsungs desire to build out its channel and drive more indirect sales puts it
on a collision course with companies such as Dell Inc., Hewlett-Packard Co. and Lenovo, which
are all leaning on their channels to drive growth. However Samsungs advantage is brand
leadership in smartphones and tablets, as well as a strong presence in ultra-books hence its future
looks very bright.

Conclusions and recommendations

Samsung Company may sell its consumer products and the customer. People can buy its direct
goods on internets also. Samsung groups have direct selling models, and the telephone network.
They may also maintain negative conversation cash cycle of this model. The company must
receive payment before when what they have to pay for new raw materials. They can also use
just in time management. They must be able to provide their products (electronic goods) in the
right time, right and reasonable prices on track locations.

Samsung electronics should maximize their financial shareholders by marketing to their sides
equilibrium value. They should emphasize their standardized services customer and client
technologies that you want. They propose skims more guaranteed as warranty .customer
insurance, insurance of electronic equipment.

They should develop strategic marketing based on diversity and different economic
environments. Their strategic activities should focus on their business activities. This means that
they must change their basic markets required and new design technologies and marketing

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strategy. If they want to become the world leader and largest electronic measurement of quality
marks, they should adopt Toyta Soney, Lg and Panasonic groups also.

It is better for them, they should produce their goods as the same quality but at different
prices, and average as well as electronic Chinese markets, and this means that they should
concentrate their not only high market and the rich but also poor person. They can produce their
products in different quality and different prices on the basis of their capacity and design. They
should manage their recruitment and selection process. They should concentrate their recruitment
and selection of employees on flexibility, diversity, equal opportunities, and sample selection.
They should motor employees on the basis of their performance and efficiency of work. They
should improve their market and the marketing strategy. They should increase their shareholders,
as well as shareholders.

The employee base, skilful standard and best performance shows that they can able
successfully to become electronic brand world leader. Samsung electronics process design is a
good thing. The product has so many designs on the basis of price and quality customer desired,
different diversity. Supply network design is also a good thing. People can also purchase through
the line. Using the Samsung Web site, we can find many of Samsung electronics, its goods,
management system and supply chain information. The company must own websites. We can
apply to work through the line.

They developed attractive products to promote to the particular market segments

highlighted in this report, including students, women interested in staying fit through calorie
counting as well as exercise, and young professionals. Pinkse and Slade (2004) remind us that
competition is greatest amongst brands that are most similar and it seems that these two large
Korean electronics firms need to distinguish themselves from the other in order to create a
unique selling proposition (USP) for their product(s) and to generate a desire for the product and
organisations. It would be beneficial to take a longer term view of demographic trends,
particularly in view of the ageing demographic, to predict any change in the potential market for
fitness monitors.

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 Exploiting the potential of social media to promote the brand identity through taking
advantage of the buzz around the social side of fitness and exercise; which exists particularly
amongst younger target market segments. Celebrity endorsement is a really effective way to
promote products that are the subject of culture and desire, particularly amongst the youth and
young adult market. However, considering the increasing life expectancy combined with the
ageing demographic (a greater percentage of the population being age over 55, 65 and
particularly 75 there is a considerable untapped market for promoting fitness monitors to this
group of consumers. The lengthier retirement periods experienced by many people nowadays
provide considerable potential for promoting a regular exercise regime to be built into their daily
routine.

Samsung brand is famous worldwide for its service and design, the excellent employees,
reliable product innovation. A responsible approach to enterprise and global citizenship and
globalization with partners and customers, Samsung takes the world in a progressive direction
for the next generation.

Samsung's mission is to be the best 'digital electronics company'. It complies with the low
and ethical care standard s environmental health and safety. Mention an eigenvalue organized
culture and as to the holders of shares of client, stakeholders, employees, citizens of socially
responsible co device. It tries so is best marks in the domain electronic materials in the world by
improving its size, quality price, capacity or power devices.

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