CLASS 1

GROUP 8LE NHAT HUY 295896

VO THI LE HUYEN 295929

NGUYEN DOAN DOAN HANH 295904

Table of ContentsI. Executive

Introduction Mission statementVisionObjectivesStrategies

II. Product InformationProducts IntroductionCompetitors

III. MethodsSWOT AnalysisCompetitive Profile Matrix (CPM)External Factor Evaluation (EFE) MatrixInternal Factor Evaluation (IFE) MatrixSPACE MatrixGrand Strategy MatrixQuantitative Strategic Planning Matrix (QSPM)

Samsung Problem

o This issue is the result of the poor management of Samsung Electronic which effect on both their visionand strategies in the competition with Apple.

o This is very dangerous and cannot gain as many Competitive Advantages as Apple in general and toincrease the sale as well as gain more market share with their fourth generation smartphone inparticular.

Samsung Backgroundo Founded by Lee Byung-chullo 1950‟s Korean war lost all assets

Aimed to rebuild Korean economy manufacturing industry(sugar, fabrics) Think globally and use of foreign labor

o 1969 SEC (Samsung Electronic Company) was founded

o 1970‟s entered into semiconductor businesso 1980‟s the Samsung Television Division was builto 1987 Lee Kun-He take overo 1997 nearly all Korean business shrunk in size due to Asian

financial crisis(Force to sell company asset on Aircraft/Motor).Making profit from TV‟s and Mobile phone

Samsung IntroductionName Samsung Electronics Co., Ltd.

Industries served Consumer electronics, Telecoms Equipment, Semiconductors, Home Appliances

Geographic areas served Worldwide

Headquarters South Korea

Current CEO Kwon Oh Hyun

Revenue US$224.3 billion (2013)

Profit US$27.4 billion (2013)

Employees 270,000 (2013)

Parent Samsung Group

Main Competitors

Apple Inc., Nokia OYJ, Intel Corporation, LG Display and LG Electronics, Sony Corporation,

Texas Instruments Inc., Lenovo Group Limited, Hewlett-Packard Company, Sanyo Electric Co.,

Ltd., Toshiba Corporation, SK Hynix Inc., Western Digital Corporation and others.

Samsung IntroductionSamsung Electronics Co., Ltd. is the largest world’s technology company in terms of revenues.

Samsung is a conglomerate that is consisting of numerous businesses around the world, of course, so it’s not as though the company has nearly 300,000 people working on Galaxy smartphones and tablets.

Samsung is the second biggest mobile phone producer in the world.

Samsung Mission

To be the best

Digital-Electronics Company

Digital

To create technology products and services that lead the industry

Electronics

To put into place the most efficient management and production processes

Company

To maintain a steadfast focus on strengthening our organization, on continuing to be a global technology leader and trusted responsible company

Samsung VisionDevelop innovative technologies and efficient processes that create new markets, enrich people’s lives and continue to make Samsung a trusted market leader.

Vision 2020

Partner

Industry

Employee

Inspire the World, Create the Future

New Technology

Creative

Solutions

Innovative Products

Samsung Objectiveo Lead the digital convergence movement.o Develop innovative technologies and efficient processes and continue to make Samsung a trusted

market leader.o Look forward to exploring new territories, including health, medicine, and biotechnology.o Identify eight growth engines for Samsung's business including their Digital Television (DTV)

products and printers.

o Pursue innovation throughout all six main areas of the company's business operations.o Be one of the top three electronics companies in the world in quantity and in quality by 2010.o More than double its 2004 sales revenue by the year 2010.o 20 number one market share products in the world by 2010 (currently the company has eight

number one market share products).o Reaching $400 billion in revenue and becoming one of the world’s top five brands by 2020.

Samsung StrategiesThree strategies approaches under vision 2020

Creativity

management

New technology

development

New market

creation

New lifestyles

Most innovative

company

Partnership

management

Increase external

capabilities and

activities

Partner

collaboration/

Environmental

management

Value for

customers/

shareholders

Profession

Talent

incubator

Passion and

challenge

Most admired

company

Great workplace

Products of SamsungSamsung is a Korean company which is a manufacturer of many products such as : Phones, Normal TVs, 3D TVs, Computers, DVD players, Cars, Other Electronics, Shipbuilders, Chemicals, Thumbdrives, Hardrives, Optical storage, Aviation. And this is not all of what they sell.

Smartphone Samsung Galaxy S5

Samsung Galaxy Tab S

Samsung Smart TV 65’’

Strengths Weaknesses

1. Hardware integration with many open source OS and

software

2. Excellence in engineering and producing hardware

parts and consumer electronics

3. Innovation and design

4. Focus on environment

5. Low production costs

6. Largest share in mobile phones and 2 place in

smartphones sales

7. Ability to market the brand

1. Patent infringement

2. Too low profit margin

3. Main competitors are also largest buyers

4. Lack its own OS and software

5. Focus on too many products

Opportunities SO Strategies WO Strategies

1. Growing India’s smartphone market

2. Growing mobile advertising industry

3. Growing demand for quality application

processors

4. Growth of tablets market

5. Obtaining patents through acquisitions

1. Introduce a new product with innovation in hardware

parts and consumer electrics in India's market

2. Innovation and design into growing mobile

advertising industry

3. Introduce a new product for the lower income market

1. Develop a new product through acquisition patents

2. Promote profit margin by produce more products in

tablets market

Threats ST Strategies WT Strategies

1. Saturated smartphone markets in developed

countries

2. Rapid technological change

3. Declining margins on hardware production

4. Breached patents

5. Apple’s iTV launch

6. Price wars

1. Introduce a new product with innovation in

hardware parts and consumer electrics

2. Introduce a new product for the lower income

market

3. Develop a new product through acquisition

patents

1. Produce new products without infringe patents

2. Continue develop technique and design to compete

with other competitors

Samsung SWOT Matrix

Samsung SWOT MatrixStrengthso Customers are loyal and appreciating the brand. o The company is maintaining very good relationship with its suppliers. o The production processes and procedures of inventory management are consistent with industrial

standards.Weaknesseso Samsung is facing hard competition. o South Korea’s labor unions are strategically linked for collective bargaining and negotiation. o Samsung need improvements in defining the vision, mission and strategic corporate objectives. o HRM also needs improvement in all the facts of human resources management.

Samsung SWOT MatrixOpportunities o The economic condition of South Korea seems favorable. o Samsung is interiorizing the social shifts. o Samsung is reasonable equipped to take care of technological changes. Samsung is maintaining good

international relationship with other.Threats o The legislation has been passed frequently related to industry. o Technological transformation takes place in the industry was very high.o Regulatory issues and safeguarding of property rights was main threats in legislations.

Samsung Competitive Profile Matrix (CPM)

Samsung Apple Nokia HTC

Critical Success factors Weight Rating Score Rating Score Rating Score Rating Score

Innovative culture 0.10 2 0.20 4 0.40 3 0.30 2 0.20

Market Share 0.12 4 0.48 3 0.36 2 0.24 2 0.24

Consumer loyalty 0.10 4 0.40 4 0.40 3 0.30 3 0.30

Market penetration 0.11 3 0.33 4 0.44 3 0.33 3 0.33

Advertising 0.07 4 0.28 3 0.21 4 0.28 3 0.21

Product variety 0.09 4 0.36 2 0.18 4 0.36 3 0.27

Brand reputation 0.11 4 0.44 4 0.44 3 0.33 3 0.33

Product quality 0.08 4 0.32 4 0.32 3 0.24 3 0.24

Price competitiveness 0.10 3 0.30 2 0.20 4 0.40 3 0.30

Successful product

promotions0.06 3 0.18 4 0.24 3 0.18 3 0.18

Employee dedication 0.06 4 0.24 4 0.24 3 0.18 3 0.18

Totals 1.00 3.53 3.43 3.14 2.78

Samsung Competitive Profile Matrix (CPM)

External Factor Evaluation (EFE) MatrixKey External Factors Weight Rating Weighted Score

Opportunities

A lot of countries encourage technology innovation and high-tech industry is really

important.0.03 3 0.09

Countries value the protection of intellectual property 0.04 3 0.12

GDP and national income per capita increasing 0.12 3 0.36

Consumption pattern is changing from subsistence consumption to well spending

pattern0.07 3 0.21

Samsung’s mobile phones have high attention 0.09 4 0.36

Growing India’s smartphone market 0.05 2 0.10

People more care about brand and quality than price 0.14 3 0.42

Threats

Legal issues with Apple 0.05 3 0.15

Price wars with Chinese phones 0.10 3 0.30

More and more new substitute and potential entrant 0.10 4 0.4

Strong competitors: Apple, Nokia, HTC… 0.12 4 0.48

The user experience is upgrading 0.09 3 0.27

Total 1.00 37 3.26

Internal Factor Evaluation (IFE) MatrixKey Internal factors Weights Rating Weighted Score

Strengths

Brand Recognition and Loyalty 0.07 3 0.21

A large number of products and broad product line 0.05 4 0.20

Strong research and development ability 0.10 3 0.30

Hardware integration with many open source OS and software 0.04 2 0.08

Innovation and fashion design, especially popular among younger peoples 0.15 4 0.60

With extensive sales channels and propaganda 0.06 3 0.18

Low production costs 0.03 3 0.09

Largest share in Smartphone industry ( 30% market share worldwide, extending its

lead over Apple and Nokia)0.15 4 0.60

Weaknesses

Not high lighting Price/Performance Ratio 0.10 4 0.40

Lack its own OS and Software 0.07 4 0.28

Patent infringement 0.04 3 0.12

Too low profit margin 0.04 2 0.08

Limited high-end products 0.03 2 0.06

Focus on too many products, with inaccurate positioning 0.07 3 0.21

Total 1.00 44 3.41

Samsung SPACE MatrixInternal Strategy Position External Strategy Position

Y Financial Strength (FS) +1 to +6 Environmental Stability(ES) -6 to -1

+3

+5

+4

+4

+3

+3

Earnings per share

Revenue increase

Return on Assets

Leverage

Liquidity

Cash flows

-2

-4

-4

-2

-2

-2

Price of competitive product

Competitive pressure

Global economic

Technology changes

Demand elasticity

Inflation rates

Average 3.7 Average -2.7

Total Axis Y score: 1.00

X Competitive Advantage (CA) -6 to -1 Industry Strength (IS) +1 to +6

-1

-1

-1

-3

-5

-2

Product quality

Market share

Brand & image

Product life cycle

Customer service

Customer loyalty

+6

+5

+5

+6

+6

Barriers to entry

Growth potential

Access to financing

Consolidation

Profits

Average -2.2 Average 5.6

Total Axis X score: 3.4

Y

X

Conservative Aggressive

Defensive Competitive

(3.40; 1.00)

Samsung Grand Strategy MatrixRAPID MARKET GROWTH

WEAK

COMPETITIVE

POSITION

STRONG

COMPETITIVE

POSITION

SLOW MARKET GROWTH

CHARATERISTICS OF

FIRMS:

Weak competitive position working in

rapid growth market

Market development

Market penetration

Product development

Horizontal integration

Divestiture

Liquidation

CHARATERISTICS OF

FIRMS:

Strong competitive position working in

rapid growth market

Market development

Market penetration

Product development

Forward integration

Backward integration

Horizontal integration

Related diversification

CHARATERISTICS OF FIRMS:

Weak competitive position working in

slow growth market

Market development

Market penetration

Product development

Horizontal integration

Divestiture

Liquidation

CHARATERISTICS OF FIRMS:

Strong competitive position working

in slow growth market

Related diversification

Unrelated diversification

Joint ventures

Quantitative Strategic Planning Matrix Key Factors

Market

Penetration

Market

Development

Product and Service

Development

Opportunities Weight AS TAS AS TAS AS TAS

A lot of countries encourage technology innovation and high-tech industry

is really important.0.03 3 0.09 4 0.12 3 0.09

Countries value the protection of intellectual property 0.04 3 0.12 4 0.16 2 0.08

GDP and national income per capita increasing 0.12 4 0.48 4 0.48 1 0.4

Consumption pattern is changing from subsistence consumption to well

spending pattern0.07 3 0.21 3 0.21 3 0.21

Samsung’s mobile phones have high attention 0.09 4 0.36 4 0.36 4 0.36

Growing India’s smartphone market 0.05 2 0.10 3 0.15 2 0.10

People more care about brand and quality than price 0.14 3 0.42 4 0.56 4 0.56

Threats

Legal issues with Apple 0.05 2 0.10 3 0.15 4 0.20

Price wars with Chinese phones 0.10 3 0.30 3 0.30 3 0.30

More and more new substitute and potential entrant 0.10 3 0.30 4 0.40 3 0.30

Strong competitors: Apple, Nokia, HTC… 0.12 4 0.48 4 0.48 4 0.48

The user experience is upgrading 0.09 3 0.27 3 0.27 4 0.36

Total 1.00 3.23 3.64 3.44

Quantitative Strategic Planning Matrix (Cont.) Strengths)

Brand Recognition and Loyalty 0.07 3 0.21 4 0.28 4 0.28

A large number of products and broad product line 0.05 4 0.20 4 0.20 4 0.20

Strong research and development ability 0.10 3 0.30 4 0.40 4 0.40

Hardware integration with many open source OS and software 0.04 3 0.12 3 0.12 4 0.16

Innovation and fashion design, especially popular among younger peoples 0.15 4 0.60 4 0.60 4 0.60

With extensive sales channels and propaganda 0.06 3 0.18 3 0.18 3 0.18

Low production costs 0.03 2 0.06 3 0.09 4 0.12

Largest share in Smartphone industry ( 30% market share worldwide, extending

its lead over Apple and Nokia)0.15 3 0.45 4 0.60 4 0.60

Weaknesses

Not high lighting Price/Performance Ratio 0.10 2 0.20 3 0.30 3 0.30

Lack its own OS and Software 0.07 2 0.14 3 0.21 4 0.28

Patent infringement 0.04 2 0.08 3 0.12 3 0.12

Too low profit margin 0.04 3 0.12 4 0.16 4 0.16

Limited high-end products 0.03 3 0.09 3 0.09 4 0.12

Focus on too many products, with inaccurate positioning 0.07 2 0.14 3 0.21 3 0.21

Total 1.00 2.89 3.56 3.73

Sum Total Attractive Score 6.12 7.2 7.17

Samsung Strategy recommendations

o Develop business to new Potential Market include Asia, South-America and Europeo Develop New and Unique Competitive Technologies

These two strategies in general, not only help Samsung overcome and solve their existed issued but also help develop in the matter of long-term.

Samsung Method

o In summary, there will be three main annual objectives that Samsung need to complete include:

Enter and penetrate new market Building brand images and reputation in new market Seek and cooperate with potential organization.

Samsung Recommendations on procedures

o To ensure to have the desire result in the end, it is recommended to apply and follow the three-step valuation to analyses and check

The three-step valuations include: Analyze: observe, collect and analyze all the necessary factors form internal to external to

identified potential threats and problem may occurs of the plans or strategies. Modification: adjust and modify the plans or strategies to eliminate or minimize the effect of

the threats and problem may occurs Implementation: begin to apply and implement the plans or strategies after modified under

supervision to ensure the result. Repeat the whole procedures if necessary

IS NEAR

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