Company Profile : SAMSUNG

Company Profile :SAMSUNG

COMPANY REVIEWIntroduction: 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 logoFirst 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 IndiaSamsung Electronics commenced its operations in India in December 1995Two R&D centers in India- Delhi & BangaloreIn 2010 achieved a sales turnover of $3.5 billionMarket leader in LED TVs, LCD TVs, Slim TVsIndias largest mobile handset brandLeading in smart phone segment in India

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 PROMOTION Price4Ps IN MARKETINGPlaceProducts

Semiconductors : DRAM, SDRAM, flash memory, and hard drivesDigital displays : LCD displays, Plasma displays, and OLED displaysHome Electronics : TVs, DVD players, Blu-ray players, home cinema systems, set-top boxes, and projectorsMobile devices : mobile phones, MP3 players, digital cameras, and camcordersComputing products : monitors, laptops, UMPCs, CD and DVD drives, laser printers, and faxes machine; andHome appliances : refrigerators, washing machines, microwaves, ovens, vacuum cleaners, and air conditionersIn 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 phonesSamsung 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 2014Plan to launch Samsung Galaxy S4 by March 2014.In India main competitor is NokiaThe firm wasrecently named the worldwide handset market leader with a market share of 29%

Top 5 smart phone vendorsTabletSamsung Galaxy Tabis an Android-basedtablet computerIt was introduced on 2nd September 2010Samsung launched the Galaxy Tab inIndiaon 10th November 2010The 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 Tablet Market Share in IndiaTelevisionSamsung Electronics was established in 1969Competitor for Samsung television is LG, Sony and ToshibaThey have three models in television such as LCD, LED and PlasmaSamsung plans to introduce a new model of Ultra HD TV(85 inch) in 2013Price for this new TV not announced, but it is expected to be around $25,000

Market Share of TV in Q4-2014CameraMajor digital camera players are Canon, Nikon, Sony, Samsung and PanasonicIn India the main player is NikonTwo new NX models will use the Android OSNow Polaroid and Nikon are the two companies have Android based point and shoot camerasNew NX series model will launch between March 2013

PCSamsung is producing PC, but they are not successful in Indian marketIndia has grown 22% in PC segment of 4th quarter 2012In India Lenovo is the market leader in PC with 16.6% Market Share in PC:

PlacesSamsung 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.

PRICESamsung 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 placementsSponsorshipsMedia AdvertisingProduct PlacementHotel 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.

SponsorshipThe Summer and Winter olympic s gamesChelsea FC shirt sponsorship dealHorse 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 sitesLink to mainstream entertainment : Foxs movies Fantastic FourDisplay in the film.

SWOT ANALYSIS26StrengthsExisting knowledge and experience of electronics marketStrong 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.

27Market 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 TechnologyWith 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.

WeaknessCustomer 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 marketHuge investment on Research & Development

OpportunitiesIncreasing on electronics consumer marketStrong customer demand for innovative products & value-added featuresHigh % of Younger population, which can be expand a new market now and in the futureNot pro-active coming out with unique and leading modelFocus on mass market instead of niche marketHuge investment on Research & Development

Samsung 5 Forces Analysis

Strategy1997 Turnaround:Cut a third of workforce, cut debtSold and spun off divisionsSet firewalls to other Samsung DivisionsNew business proposition: profitsStreamlined inventoriesDiversificationNew Economy:Exodus of engineers and managers to startupsTop 4 conglomerates: $1.2B in startups (Samsung: $520M)Stakes of up to 29.9% in 80+ startupsStartups benefit from links to global networks and financial expertiseYou simply cant survive without adapting to the fast-changing Internet era, and one solution is linking up with startups

Digital Vision: A Company that leads the digital convergence revolutionBrand power, logistics, IP:High-margin productsCreate value chain that integrates competencies of all areasCustomer and market orientedGlobal network by functionPerformance evaluation and compensation systemDigital Vision:Innovation, meeting challenges and creativityTarget debt-to-equity ratio: 50%R&D: 7% of total revenuesOverseas partners:Joint R&D projectsTechnology transfer arrangementsJoint investments

ChallengesInternal: You must maintain a sense of crisis to stay competitiveProfits vs. GrowthFinancial disciplineFoster creativityExecutives jumping ship for startupsExternal:Abandon dependence on cheap commodity productsEmphasis on goods developed in-houseRivals are outsourcing production and designGuide the company into the global electronics elite

SuggestionsBecome leader of environmental initiatives to provide more environmental friendly electronic productsEnhance their advertisement campaign to create greater brand awarenessAs 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 themImprove After Sales Service because satisfaction helps in retaining customersMake their R&D more efficient