Company Profile :

SAMSUNG

COMPANY REVIEW
Introduction:

Samsung was founded byLee Byung- Chullin 1938

as trading company.
South Korean company.
Largest Information Technology company measured
by 2011 revenues.
Assembly plantsand sales networks in 61 countries.
In first quarter of 2014, Samsung became worlds
largest mobile phone makerby unit sales, which had
been the market leader since 1998
In third quarter of 2014, it sold 98 million phones, of
which 55 million were smart phones.

Samsung logo
First logo was developed

in the year 1958 .

It was the present logo of Samsung from

the year 1993

Tagline:Inspire the World, Create the

Future

Samsung in India
Samsung Electronics commenced

its operations in India in December

1995
Two R&D centers in India- Delhi &
Bangalore
In 2010 achieved a sales turnover
of $3.5 billion
Market leader in LED TVs, LCD TVs,
Slim TVs

HISTORY OF SAMSUNG
Samsung Electronics was founded in 1969 in Suwon, South Korea

as Samsung Electric Industries, originally manufacturing electronic

appliances such as TVs, calculators, refrigerators, air conditioners
and washers. By 1981, the company had manufactured over 10
million black and white TVs. In 1988, it merged with Samsung
Semiconductor & Communications. Samsung Electronics is the
global market leader in more than 60 products, including
semiconductors such as DRAM , SD RAM, flash memory and hard
drives, digital displays such as LCD displays, plasma displays and
OLED displays , home electronics such as TVs, DVD players, Blu-ray
players, home cinema systems, set-top boxes and projectors,
mobile devices such as mobile phones, MP3 players, digital
cameras and camcorders, computing products such as monitors,
laptops, UMPCs, CD and DVD Drives, laser printers and fax
machines and home appliances such as refrigerators, washing
machines, microwaves, ovens, vacuum cleaners and air
conditioners.

SAMSUNG ELECTRONICS
In 2005, Samsung surpassed Japanese rival Sony

for the first time to be rated as the new leading and

most popular consumer electronics brand in the
world by Interbrand. In 2007, Samsung Electronics'
handset division overtook American rival Motorola ,
making it the world's second-largest mobile phone
maker. At the end of 2007, Samsung Electronics
exceeded the $100 billion mark in annual sales for
the first time in its history. This achievement places
the company, along with Siemens of Germany, IBM
of the U.S. and Hewlett-Packard of the U.S., among
the world's top three companies in the electric
appliances and electronics industry.[

PRODUCT

Price
4Ps IN
MARKETING

PROMOTION

Place

Products

Semiconductors : DRAM, SDRAM, flash

memory, and hard drives
Digital displays : LCD displays, Plasma
displays, and OLED displays
Home Electronics : TVs, DVD players, Blu-ray
players, home cinema systems, set-top boxes, and
projectors
Mobile devices : mobile phones, MP3 players,
digital cameras, and camcorders
Computing products : monitors, laptops,
UMPCs, CD and DVD drives, laser printers, and faxes
machine; and
Home appliances : refrigerators, washing
machines, microwaves, ovens, vacuum cleaners,
and air conditioners

In 1970, Samsung Electronics made cheap

12-inch television sets under Sanyo label.
Now, capturing the number one position in
the global memory chip market and
pioneering the development of flat-screen
displays, plasma TVs, multifunction
cellphones, and other digital devices.
Samsung invested a lot of money in research
and development, in order to meet what
customers needs and wants.
Samsung spent about 9% of revenue,
amounting to around $5billion, in 2005 in
research and development.

Smart phones
Samsung developed its first lightest mobile in the year 1993

and the model is SCH-R800.

It was available in CDMA (Code Division Multiple Access)
networks.
Developed smart phones with mp3 player towards the end of
the 20th century.
Now they have 41.6% of smart phone market share in India.
Samsung wave S8500 & SI9000 Galaxy S launched launched
in June 2013.
Planning to clinch 60% of smart phone market share in India
by mid 2014
Plan to launch Samsung Galaxy S4 by March 2014.
In India main competitor is Nokia
The firm wasrecently named the worldwide handset market
leader with a market share of 29%

Top 5 smart phone vendors

Q4-2014
31.3
45.5

4 4.2

15

Sams
ung
Apple
ZTE
HTC
Other
s

Tablet
Samsung Galaxy Tabis an Android-basedtablet

computer
It was introduced on 2nd September 2010
Samsung launched the Galaxy Tab inIndiaon 10 th
November 2010
The competitor for Samsung tablet are Apple,
Amazon, Google and Lenovo
In India during 3rd Q, 2012, 47.4% of tablet sales
were from new entrants.
In India their competitor is Micromax.
Average price of tablets sold in India dropped to Rs
13,000 compared to previous year quarter

Units sold in million in 2014

60

55

50
40

35

30
20
10
0

Samsung

Apple

Tablet Market Share in India

Q4-2014
24%
41%

35%

Microm
ax
Samsu
ng
Apple

Television
Samsung Electronics was established in

1969
Competitor for Samsung television is LG,
Sony and Toshiba
They have three models in television such
as LCD, LED and Plasma
Samsung plans to introduce a new model of
Ultra HD TV(85 inch) in 2013
Price for this new TV not announced, but it
is expected to be around $25,000

Market Share of TV in Q42014

30%

27%

25%
19%

20%
15%

13%
9%

10%
5%
0%

LG

Samsung

Sony

Toshiba

Camera
Major digital camera players are Canon,

Nikon, Sony, Samsung and Panasonic

In India the main player is Nikon
Two new NX models will use the Android OS
Now Polaroid and Nikon are the two
companies have Android based point and
shoot cameras
New NX series model will launch between
March 2013

PC
Samsung is producing PC, but they are not successful

in Indian market
India has grown 22% in PC segment of 4 th quarter
2012
In India Lenovo is the market leader in PC with 16.6%
Market Share in PC:
50%
38.40%

40%
30%
20% 16.60% 13.40% 13.10% 12.90%
10%
5.60%
0%

Lenovo

Acer

HP

Dell

HCL

Others

Places
Samsung has its own stores which can be found around

the world. Not only in Asia , but also in America, Europe,

Australia and Africa.
Samsung has its stores located & also its service center

at places where it is closes to the customer reach.

At the stores, we not only can buy the product that

sold, but also feel the experience of digital lifestyle.

In India after covering the urban market Samsung is

now ready to tap the urban market.

Plans are to start up a plant in Tamil Nadu & Andhra

Pradesh with an investment of $150 million.

PRICE
Samsung sells product with a price thats
worth, if we compare it with the functions,
benefits and technology.
Samsung is in the process of building an
image as a stylish, high quality brand
commanding a premium price

Product placements

Media
Advertising

Sponsorships

Product Placement
Hotel chains (such as Hilton), where

most in-room technology was now dated

and required early replacement to retain
competitive advantage.
Their products are also been used in
various movies which is also been used
as a marketing base.
Also their giving away their products at
various sports event as gift for the
players.

Sponsorship

The Summer and Winter olympic s

games
Chelsea FC shirt sponsorship deal
Horse jumping (Samsung Superleague).

Internet Advertising
In 2005 ,the firm devoted nearly

15 % of its media budget allocated

to page -topping banner ads on
over 400 Internet sites
Link to mainstream
entertainment : Foxs movies
Fantastic Four
Display in the film.

SWOT ANALYSIS

Strengths
Existing knowledge and experience of

electronics market
Strong global presence with strong brand
and customer base, in 2009 according to
Interbrand Global value of Samsungs
brand is US$ 17,518 million compare to
its competitor, Sony, which is US$ 11,953
million.
Well diversified and differentiated

product line, to meet changing customer

needs. Samsung electronics has 4
business areas to cover customer
electronic needs.
Design with an attractive styling that
catching the pulse of customer, as the
result of the development of Samsungs
new products that involve team of
product designers.

Market share: Global market share of mobile phone increase

from 18% in 2004 to 19.1% in 2009. Memory chip Industry

is 27% in 2009 compare with 21% at the end of 2008.
It is the biggest manufacturer of liquid-crystal display panels
with 23% share in 2005, increase to 26.2% in Q1 of 2009.
Loyal customer & customer satisfaction: Samsung
Electronics reports that its Anycall mobile phone topped
the American Customer Satisfaction Index (ACSI) (2005)
Cost Competitiveness by mass Production
Samsung Electronics expanded production dramatically to
become the world's largest manufacturer of DRAM chips,
flash memory, optical storage drives

Technology
With an excellent research and development
capabilities, they spend a high percentage of
revenue on R&D. It resulted in global leadership
in the television segment, and in improving its
position from the third to second player in
mobile phones with their innovative products.

Weakness
Customer perception of weak product

attributes like Durability

Different perception on worth the price

product on each person that difficult to cover.

Not pro-active coming out with unique and

leading model
Focus on mass market instead of niche market

Huge investment on Research &

Development

Opportunities
Increasing on electronics consumer market
Strong customer demand for innovative

products & value-added features

High % of Younger population, which can be
expand a new market now and in the future
Not pro-active coming out with unique and
leading model
Focus on mass market instead of niche market
Huge investment on Research &

Development

Samsung 5 Forces Analysis

Strategy
1997 Turnaround:
Cut a third of workforce, cut debt
Sold and spun off divisions
Set firewalls to other Samsung Divisions
New business proposition: profits
Streamlined inventories
Diversification
New Economy:
Exodus of engineers and managers to startups
Top 4 conglomerates: $1.2B in startups (Samsung: $520M)
Stakes of up to 29.9% in 80+ startups

Startups benefit from links to global networks and

financial expertise
You simply cant survive without adapting to the fastchanging Internet era, and one solution is linking up with
startups

Digital Vision: A Company that leads the digital

convergence revolution
Brand power, logistics, IP:
High-margin products
Create value chain that integrates competencies of all

areas
Customer and market oriented
Global network by function
Performance evaluation and compensation system

Digital Vision:
Innovation, meeting challenges and creativity
Target debt-to-equity ratio: 50%
R&D: 7% of total revenues
Overseas partners:
Joint R&D projects
Technology transfer arrangements
Joint investments

Challenges
Internal: You must maintain a sense of crisis to stay
competitive
Profits vs. Growth
Financial discipline

Foster creativity
Executives jumping ship for startups

External:
Abandon dependence on cheap commodity products
Emphasis on goods developed in-house
Rivals are outsourcing production and design

Guide the company into the global electronics elite

Suggestions
Become leader of environmental initiatives to

provide more environmental friendly electronic

products
Enhance their advertisement campaign to create
greater brand awareness
As a Corporate Social Responsibility Samsung needs
to enhance their brand image by indulging in more
social causes because a good corporate not only
takes from people but also returns to them
Improve After Sales Service because satisfaction
helps in retaining customers
Make their R&D more efficient