VISION AND MISSION STATEMENTS

There are two parts of being a "Digital- Company", and the first is clearly about being "Digital" producing not just digital products, but products that inspire digital integration across our entire company. The second part of being a "" is to use - Processes connecting R&D, production, and marketing to customers, partners, and the market-disciplined approach is the way we bring value to every part of our supply chain, including products data to and customer relationship through Enterprise Resource Planning (ERP).

OBJECTIVES
Grow our core business in Egypt. Expand our core business outside Egypt. Maintain market leadership and increase our market shares. Loyalty and commitment to our Customers. Build alliances with the leading manufacturers in the industries we serve. Keep investing in People, Systems, Facilities and Distribution Systems with a long term view.

VALUES
Continuous Innovation Creativity Challenge Strategic Focus Speed Simplicity Empowerment Crisis Awareness Customer Focus

INDUSTRY ANALYSIS
Introduction Indian Electronics industry dates back to the early 1960's. Electronics was one industry initially restricted to the development and maintenance of fundamental communication systems including radio-broadcasting, telephonic and telegraphic communication, and augmentation of defense capabilities. Until 1984, the electronics Industry was primarily government owned and then in 1980s witnessed a rapid growth of the electronics industry due to sweeping economic changes, resulting in the liberalization and globalization of the economy. The total size of Indian electronic industry is US $25 billion. It is growing at a rate of over 25% and is expected to be worth of US $ 158 billion by 2015. Indian electronics industry today is ranked 26th in the world in terms of sales and 29th in the world in terms of production. Electronic industry is one of the fastest growing industries in the country and is driven by growth in key sectors such as IT, Consumer Electronics and Telecom. By 1991 in the country private investments - both foreign and domestic were encouraged. The easing of foreign investment norms, allowance of 100% foreign equity, reduction in custom tariffs, and relicensing of several consumer electronic products had attracted remarkable amount of foreign collaboration and investment. The domestic Electronic industry also responded

favorably to the policies of the government. Improvements in the Indian Electronics industry have not been limited to a particular segment, but encompass all its sectors. This pace made in the areas of commercial software, telecommunications, electronics, instrumentation, positioning and networking systems, and defense. The result therefore has been a significant trade growth that began in the late 1990's. The Indian Electronics Industry is a text for investors who consider India as a potential investment opportunity. Size of the Industry The electronic industry in India constitutes just 0.7 % of the global electronic industry. Hence it is miniscule by international comparison. However the demand in the Indian market is growing rapidly and investments are flowing in to augment manufacturing capacity. India however remains a major importer of electronic materials, components and finished equipment amounting to over US$12 Billion in 2005. The electronic industry in India constitutes just 0.7 % of the global electronic industry. Hence it is miniscule by international comparison. However the demand in the Indian market is growing rapidly and investments are flowing in to augment manufacturing capacity. India however remains a major importer of electronic materials, components and finished equipment amounting to over US$12 Billion in 2005. This is not a desirable situation and local manufacturing has to keep pace with growing local demand. The output of the Electronic Hardware Industry in India is worth $11.6 Bn at present. The breakup of production in various segments the industry is as shown below:

India is also an exporter of a vast range of electronic components and products for the following segments

Display technologies Entertainment electronics Optical Storage devices Passive components Electromechanical components Telecom equipment Transmission & Signaling equipment Semiconductor designing Electronic Manufacturing Services (EMS)

KEY SUCCESS FACTORS GOVERNING THE GROWTH OF INDIAN ELECTRICAL INDUSTRY

Every industry thrives on some supporting factors. In this connection, there are few factors governing the growth of electrical and electronics industry:

Research & development played an important role to the increased productivity and higher-value added electrical and electronics products. Foreign investments accelerated growth in production and export as well. To expand their business, foreign companies have done huge investment which lead developing countries in establishing production units.

Global industries like Medical, Telecommunications, Industrial & Automotive industries have been cordially supported by electrical & electronics industry. Increase in income changed living standards of the common mass. As a result, it increased the demand of electronics especially consumer electronics products globally. Electric & Electrical industry is highly fragmented which comprises of many small and medium size enterprises resulting into a huge industry. Asia Pacific region is emerging as the most spinning place for the consumer electronics industry, as the markets remain still unreached. Innovation has played importantly in this industry. It led to a consistent demand for newer and faster products and applications.

Characteristic Features of the Electronic Industry from Indias point of view India is growing up to be one of the biggest markets for electronic instrumentations. The main factor pertaining to the success of the Indian Electronics and Hardware Industry is the growth in the market demand. The growth in the manufacturing of semiconductor serves as the key driver in the emergence of India as one of the leaders. The growth in demand for telecom products has been high, with India adding two million mobile phone users every month, which serves as one of the main reasons for the growth in production of electronic goods.

The consumer electronics segment has grown at a rate of 10% in the last five years includes a wide range of products such as DVD, VCD/MP3 players, television sets and microwave ovens.

Today the industry is at the stage of entering into a very crucial phase in economic growth where, if the government and entrepreneurs take concrete steps it can create a US $100 billion electronics product from India in the next 10 years.

The Market Share Perspective of Indian Electronic Industry The growing Indian market for electronic products is over US$25 Bn and is growing at about 30% per annum. At this rate it is projected to exceed US$ 70 Bn by 2010 and US$158 Bn by 2015. The growing Indian market for electronic products is over US$25 Bn and is growing at about 30% per annum. At this rate it is projected to exceed US$ 70 Bn by 2010 and US$158 Bn by 2015. This growth has attracted global players to India and leaders like Solectron, Flextronics, Jabil, Nokia, Elcoteq and many more have made large investments to access the Indian market. In consumer electronics Korean companies such as LG and Samsung have made commitments by establishing large manufacturing facilities and now enjoy a significant share in the growing market for products such as Televisions, CD/DVD Players, Audio equipment and other entertainment products. The growth in telecom products demand has been breathtaking and India is adding 2 million mobile phone users every month! With telecom penetration of around 10%, this growth is expected to continue at least over the next decade. Penetration levels in other high growth products are equally and growth in demand for Computer/ IT products, auto electronics, medical, industrial, as well as consumer electronics is equally brisk. Combined with low penetration levels and the Indian economy growing at an impressive 7% per annum, the projection of a US$150 Bn + market is quite realistic and offers an excellent opportunity to electronics players worldwide.

Future Prospects of Indian Electrical Industry The domestic market in India is itself large, and one must firstly satisfy this market with products that meet international quality standards. With increasing globalization, every international player is now operating in India, providing goods and services complying with international quality. Once we deliver high quality products and services within the domestic market, accessing the international market for exports should not pose a serious challenge. The Electrical/Electronics Industry in India is growing to its full potential in the coming years and no doubt that India will soon come to be recognized for quality products and services which in turn, will bring this industry to a position of true leadership.

Indian electrical industry has grown because of government's thrust on it and also due to overall economic growth. It has also reached a stage where the industry has demonstrated its capabilities. The industry has seen a growth of 20% and should continue at the same level for the next few years.

PEST ANALYSIS
In this section, I analyze the companys strategy by the PESTEL analysis. Each of the elements of this framework is analyzed in detail. Political: Samsung faces significant political risks in the countries where it operates though in the majority of the countries, the political situation is conducive for the operation of the country. In recent times, the political climate in South Korea has become a worrying factor for Samsung and the country faces political instability at home as well. However, the situation is not that serious as compared to some of the other countries where it operates. This is particularly the case in countries in the African continent and the South East Asian countries where Samsung is at a distinct disadvantage because of the hostile business environment. In countries like China and India, the company has a conducive political environment which allows it to concentrate on the markets in a better way. (Yu, 1998, 57-60) Economic: Samsung certainly follows good strategies in the markets it operates based on the economic size and the strength of the consumers in terms of variables like disposable income. Given the fact that the company needs high levels of disposable income from its consumers to

buy the products that it makes, the company has followed a targeted marketing strategy aimed at the middle classes in the countries in which it operates. Further, the company enters markets where the business cycle for the products that it sells is in the initial stages unlike the developed countries where the product lifecycle for its range of products is in the decline or the maturation phase. This strategy of entering countries where the products find a readymade market has indeed paid off. Socio-Cultural: Despite being a South Korean based company, Samsung has managed to integrate itself well in the emerging markets where it does business. This has resulted in a think global, act local mindset that has effectively bridged the cultural and social gap between its home countrys business landscape and the markets where it operates. One troubling aspect has been the companys attitude towards local officials in the matters concerning bribing them to get its business done. The company tries to strike a balance between the aspiration values of the consumer classes and the levels of income that they possess. Technological: As has been mentioned elsewhere in this paper, the company prides itself on its innovative approach to technology and harnessing the same for rolling out products that use cutting edge technologies in their design and features. The technological capabilities of Samsung are well known and the company is especially strong on this element. The companys innovation drive is its biggest strength and the company can take pride in the fact that it is a pioneer for many of the technological innovations that it has introduced through its products in the global marketplace.

PORTERS FIVE FORCES

In this section, I analyze Samsung using Porters Five Forces model. As stated in the instructions, the model is not explained but the model is applied to Samsung. The five forces are analyzed with an additional element The impact of Stakeholders on the business prospects of the company. Each of the forces is analyzed in detail and presented with respect to the companys macro and micro environment.
Samsung

Industry Rivarly 100 Stakeholders 50 0 Power of Suppliers Power of Buyers Market Entry

Threat of Substitutes

Suppliers: The bargaining power of suppliers is relatively limited as there are a number of suppliers in the market for consumer electronics. For instance, there are well over a thousand suppliers in South Korea and across the world for the kinds of parts that Samsung needs for making its electronic appliances. However, the fact that the suppliers make parts that are unique for each appliance maker gives the suppliers an advantage that is hard to ignore. The point here is that like in any other industry, the consumer electronics industry needs a wide network of suppliers for the vendors to function effectively. Hence, Samsung depends on its suppliers for timely delivery of the components and hence any disruption to the supply chain can be troublesome. Market Entry: The impact of Market Entry is high as Samsung has found it easy to enter markets where it desires to do business. For instance, Samsung has entered Chin and India, two emerging markets that provide the much needed volumes for its expanding business. The fact

that Samsung has entered these markets with relative ease makes this a force that can be harnessed for the companys good. However, it might not be easy for Samsung to capture markets with ease as it has done previously because of the rise of protectionist tendencies in the wake of the global financial crisis. The rivalry from existing players is a factor that needs to be considered when deciding upon the market entry into foreign companies. This is something that Samsung needs to take into account when deciding upon its foreign market entry strategy. Power of Buyers: The power of buyers is indeed an element that is something of a mixed bag. This is because of the fact that the buyers have a wide variety of choices and a range of products to choose from. There are many models of mobile phones and other consumer electronics gadgets in the market and the buyers can easily switch to alternatives. Hence, the impact of this element on the company is a bit high. The bargaining powers of buyers are high since the market for consumer electronics is essentially a buyers market with so many players in the fray to sell consumer electronics to the consumers. This is reflected in the endless price wars that Samsung is engaged in with respect to the mobile phones and other electronic goods. However, the factor that is to Samsungs advantage is because buyers cannot switch brands immediately and they take their time to adjust and adapt and only when they are completely dissatisfied with the company do they switch brands. This is the decline of the so-called repeat customers when they lose faith in the brands ability to deliver the goods. Threat of Substitutes: The threat of substitutes is indeed high for a company like Samsung. Given the fact that the consumer durables market is characterized by intense competition with competitors introducing products similar to those of Samsungs with regular frequency, it is no wonder that the company needs to be on its toes to keep pace with the blistering pace of new products entry. Further, there are many me-too products that are introduced that are the clones of the products that established brands like Samsung introduce in the market and this leads to a situation where the company constantly needs to innovate to be ahead of the pack. The threat of substitutes is indeed high for Samsung given these facts and this is one element of the Five Forces that pose a significant threat to the company. However, the buyers who switch to the substitutes are the price conscious segment and those who prefer price over quality. Hence, this puts Samsung at an advantage over other competitors as the quality conscious customers stay loyal to the company.

Industry Rivalry: The impact of this element is certainly high because of the presence of other competitors like LG, Ben Q, Motorola and Nokia. The competition is so fierce and intense, particularly in the emerging markets like India, where the wars between these competitors are akin to the equivalent of cola wars between Coke and Pepsi. To give an example, both LG and Samsung spend huge amounts of money in India on sponsorship of sports events (cricket championships) and teams. Though the advent of these companies has certainly altered the landscape of sports partnerships, sometimes the rivalry is taken too far resulting in lot of bad blood between the rivals. Stakeholders: The impact of this element has been evident in recent times because of the rise of the environmentally conscious movement and the drive towards CSR (Corporate Social Responsibility) that has seen the likes of Samsung receptive towards the concerns of these groups. The fact that the shareholders are increasingly demanding more accountability and transparency following the recent scandals is proof of their growing power in making the management of Samsung accountable and responsible.

INDUSTRY DRIVING FORCES

Behind the impressive growth of the electronics industry is the robust and consistent growth in Electronic hardware market of approximately 25% due to a stable economy and large middle class of 350 million people. The fastest growing segments are demand foe telecom services particularly cell phones, internet subscribers, and growth in demand for IT products with increasing penetration of computers, falling prices & Govt. support to encourage usage of IT in all sectors. Penetration of telephone users (both landline & mobile) is projected to increase exponentially. Some of the others factors are: Highly talented workforce, especially for design and engineering service with good communication skills. Rising labor costs in China. Presence of global Electronics Manufacturing Services majors in India and their plants for increased investments in India. More outsourcing of manufacturing by both Indian and global equipment manufacturers.

THE KEY FACTORS FOR THE SUCCESS OF ELECTRONIC INDUSTRIES mainly relate to the demand for technological production. By providing a comfortable and reliable working environment for employees, electronic companies manage to maintain steady production and successful talent management. Technology producers also globalized the assembly process of goods by establishing production plants in countries with cheaper labor and so have generated more income from sales. Responding to Demand - Society has demanded technological production for the past several decades. Since the invention of computers, electronic industries have tried to respond to such demand efficiently by providing customers with technology products. A good example is the mobile devices sector -- after the appearance of the first mobile phones, the public has demanded more innovative devices. This led to the invention of color displays and integrated cameras as well as business applications in the mobile devices.

Competition - Competition is the moving force of every production because by competing, companies come up with more and more innovative technological products. This is evident in the success of the electronic industries. A report by the leading technology experts IBM, for instance, indicates that through competition between Japanese electronics companies and western corporations, the industry has developed more attractive products and has incorporated more advanced technologies. The competition between, for example, Sony and Microsoft has led to the distribution of two of the most successful game consoles -- Play station and Xbox. Working Environment - The electronic industries offer some of the most attractive employment opportunities in terms of environment and labor. EHS Today Magazine concludes that by providing comfortable social conditions and especially by increasing the pay rates for technology specialists in developed countries, electronic industries have become a sought-after employer for educated individuals. This gives the technology companies the opportunity to manage talent in their organizations and to enjoy progressive work by specialists.