samsung group 3 r1

8/11/2019 Samsung Group 3 R1

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GROUP III

ABHIMANYU VERMA SAGAR SRIVASTAVA

ALBERT BASUMATARY PHANEENDRA VAJRALA

RAHUL PIUS SAI SRAVAN KONDAKA

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AGENDA

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Samsung: Vision & Mission - Introduction and brief profile: Slide (3 - 6).

Affiliated companies and SBUs: Slide (7 - 11).

Samsungs Competitors & its hybrid management system: Slide (12 - 13).

Samsungs market presence and market share: Slide (14 - 17).

Samsungs SWOT Analysis: Slide (18).

Samsung Research and Development: Slide (19).

Way ahead: Slide (20)


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Samsung Vision

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

It wants to develop innovative technologies and efficient processes that create ne

markets, enrich peoples lives and continue to make SAMSUNG a trusted market leader.

Samsung Mission

SAMSUNGs mission is to be the best digital- E company.

TO BE THE BESTDIGITAL E-COMPANY

To create technology products and servicesthat lead the industry

To put into place the most efficientmanagement and production process

To maintain a steadfast focus onstrengthening our organization on

continuing to be a global technology leaderand trusted responsible company

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INTRODUCTION

It is a SOUTH KOREAN multinational conglomerate headquartered in Samsung Town,

Seoul.

It is the largest information technology company by measured revenues since 2009.

It is spread across 72 countries employing 221,730 people.

Samsung has been the world's largest television manufacturer since 2006 and is the

world's largest producer of LCD panels

Samsung Electronics has been the world's largest producer of memory chips since

1993.

Samsung succeeded in mass-producing 30 nm-class DRAMs and 20 nm-class NAND

flashes, both of which were the first of their kind in the world in 2012.

In 2012, SAMSUNG became worlds largest mobile phone maker by unit sales ,

overtaking NOKIA, which had been the market leader since 1998.

In the same year, it sold 98 million phones including 55 million smartphones.

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SAMSUNG GROUP TIMELINE

BIRTH

1938Lee Byung Chull started a small trading company called Samsung Sanghoe

with 40 employees. It was involved in groceries.

EXPANSION

1938 to 1947Samsung entered into a variety of businesses such as insurance,

construction ,securities and retail.

1947A new company called Samsung Trading Corporation was created by joint

investment from Cho Hong Jai and Lee Byung Chull. But after some differences thecompany was separated into SAMSUNG GROUP and HYOSUNG group.

1969Samsung group entered into electronics industry with Samsung electronics

devices, Samsung electro mechanics, Samsung corning and Samsung

semiconductor and telecommunications.

1974- Samsung entered into Heavy Industries. Its main focus is on constructing

ships, offshore floaters, gantry cranes, digital devices for ships, and otherconstruction and engineering concerns.

1980Samsung acquired Hanguk Jeonja Tongsin and entered the

telecommunications hardware industry. With time it produced switchboards,

telephones, fax machines and became the core of Samsungs mobile phone

manufacturing.

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1987- After Lee Byung Chullsdeath, Samsung Group was divided into 4 business

groups namely Samsung Group, Shinsegae Group, CJ Group, and the Hansol Group and

Lee Kun Hee becomes the new chairman.

1991All the four groups of Samsung separated and worked independently. 1992 - Samsung became the largest producer of memory chips in the world.

1993 - Samsung launched new management initiative and sold its 10 subsidiaries and

merged other operations to concentrate on three industries : electronics, engineering

and chemicals.

2005- A manufacturing deal was struck with Apple for supply of memory chips.

2006S LCD was established as a joint venture between Samsung and Sony in order toprovide a stable supply of LCD panels for both manufacturers

2010- Samsung announced a ten-year growth strategy to achieve revenue of 400 billion

dollars.

2011- Samsung Electronics sold its hard disk drive (HDD) business to Seagate in order

to focus only on memory chips.

2012- Samsung Electronics became the world's largest mobile phone maker by unit

sales, overtaking Nokia, which had been the market leader since 1998 but Nine

American jurors ruled that Samsung had to pay Apple $1.05 billion in damages for

violating six of its patents on smartphone technology.

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Electronics

Industry

Engineering &

Heavy Industries

Financial

Services

Chemical Other companies

Electronics C&T Corporation Life Insurance Cheil Industries Cheil Worldwide

SDS Engineering Samsung Card Everland Inc.

Electro-mechanics Heavy Industries Securities Biologics

Techwin

Fire and Marine

Insurance

SDI

Display

AFFILIATED COMPANIES

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SAMSUNGELECTRONICS

Smart phonesand tablets

TVAudio/Video

Homeappliances

PC/peripherals/

Printers

DigitalImaging

MemoryStorage and

otheraccessories

STRATEGIC BUSINESS UNITS

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SAMSUNG ELECTRONICS It was started in 1969 in Suwon, South Korea.

Samsung had a number of technological breakthroughs particularly in the field of memory

which are commonplace in most electrical products today. This includes the world's first

64Mb DRAM in 1992, 256 Mb DRAM in 1994, 1Gb DRAM in 1996. Later, Samsung developed the world's first 8Gb NAND Memory chip and a manufacturing

deal was struck with Apple in 2005.

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.

Currently It is the flagship subsidiary of the Samsung Group, amounting to 70% of thegroups revenue.

It is the world's largest manufacturer of mobile phones and smartphones fueled by the

popularity of its Samsung Galaxy line of devices.

Samsung has been the world's largest maker of LCD panels since 2002, the world's largest

television manufacturer since 2006, and world's largest manufacturer of mobile phones

since 2011. In 2013, Samsung announced that it had finally managed to test speed-enhanced fifth

generation (5G) technology successfully.

In June 2014, Barnes & Noble announced it would be would be teaming up with Samsung -

one of the leaders in Android-based tablets - to develop co-branded color tablets titled the

Samsung Galaxy Tab 4 Nook.


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SAMSUNG ENGINEERING AND HEAVY INDUSTRIES

Engineering

-First Engg. Procurement

Construction(EPC) firm in

South Korea in 1970.

-Established presence in

Saudi Arabia, UAE, India,Thailand, Mexico

Projects:

-IOCL refinery project in

Barauni, India.

-Saudi Arabia Olefin Plant,Al-Jubail, Saudi Arabia.

C&T- Construction and tradingfirm, established in 1938.

- Consists of Engineering &construction group andtrading and investment

group.

Projects:

-Burj Khalifa, Dubai, UAE

-Petronas Towers, KualaLumpur, Malaysia

Heavy industries-Established in 1974, one ofthe largest ship builders inthe world.

- Constructing ships (LNGcarriers and oil drilling ships),gantry cranes, digital devicesfor ships.

Projects:

-Worlds first drillship forArctic regions.

-New residential cruise shipUtopia, largest passengership in ASIA.

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Samsung Electro-mechanics

-TV parts

-Mobile parts

Samsung SDS

-IT consulting services

-Technical services

Samsung SDI

-Lithium Ion Battery,automotive battery.

-Energy storage system.

Samsung Techwin

-Safety solutions

-Security, Defense, IPcameras

Samsung Display

-Mobile, tablet display

, LED, Flexible Display

Samsung Life insurance

-Life, health, annuity

-Asset Management

Samsung Card

-Payment and financialservices

Samsung Fire and marineinsurance

-Property, casualty

-Auto insurance

Samsung Biologics

-Biopharmaceuticals

Samsung CheilWorldwide

-Communication-Advertisement

Samsung Cheil Industries

-Materials (Electronicchemicals, Chemicals,

Fashion)

Samsung Everland Inc.

-Resort business

-Installation of fire

management systems 11

OTHER SAMSUNG SBUs


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Industry Competitors of Samsung

SemiconductorMicron Technology, Infineon

Technologies, Hynix Semiconductor

Life insurance

Shinhan Financial Group Co., Woori

Finance Holdings Co., Kyobo Life

Insurance

Consumer appliances Haier Group, whirlpool, Jarden group

Mobile PhonesNokia Corp, Apple Inc., LG Corp., Lenovo

Group Ltd, Sony, Panasonic

Imaging Devices Canon Inc., Nikon Corp, Sony Corp

Heavy Industries Mitsubishi, Mitsui, Hyundai

Construction and Trading

LG International Corp, Daewoo

International Corporation, Hyundai

Corporation

COMPETITORS OF SAMSUNG IN DIFFERENT PRODUCT CATEGORY

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HYBRID MANAGEMENT SYSTEM FROM THE

PARADOX OF SAMSUNGS RISE - HBR 13


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0

5

10

15

20

25

30

World Market share in different Industries

Consumer Appliances

Major Appliances

Small Appliances

Consumer ElectronicsTV

Mobile Phones

Imaging devices

Video Players

1.2

4.1

.4

21.2 21.8

27.7

7.5

16.5

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31.2

15.3

4.74.7

44.1

Smart phones-Global Market Share (%) in Q1 2014

Samsung

Apple

Huawei

Lenovo

Others

22.6

28.9

4.13.7

2.7

38

Tablets-Global Market Share(%) in Q1 2014

Samsung

Apple

Lenovo

Asus

Amazon

Others

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Samsung

LG corp

Sony Corp

Panasonic Corp

Sharp Corp

Other

21.8

14.1

5.55.34.2

49.1

TV IndustryGlobal Market Share (%) in 2013


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Strengths

1. Strong R&D center forinnovation and design.

2. Excellence in engineering

and producing hardwareparts and consumerelectronics.

3. Cost effective products.

4. Integrated with many opensource OS and software

Weaknesses

1. Lack its own OS andsoftware.

2. Focus on too many

products.

3. Major competitors are alsolargest buyers.

4. Patent infringement.

Opportunities

1. Growth of tablets market.

2. Growth in media solutions

center apps.3. Obtaining patents throughacquisitions.

4. Growing Indias

smartphone market

Threats

1. Saturated smartphonemarket in developedcountries.

2. Low margins in hardwareproduction.

3. Breached patents.

4. Strong competitors such asApple.


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R&D is at the heart of everything Samsung does.

Samsungs team of researchers and engineers include over 80,000 employees

across 42 global research facilities. Increased by 60% from 50,000 in 2010.

Samsung's R&D organization has three layers.The Samsung Advanced Institute of Technology (SAIT)

Investment

Global R&D Network

Each year Samsung invests at least 9% of sales revenue in R&D activities.

Samsung has received at least 36,000 US patents and 108,000 worldwide patents.

Before 2000: Manufacturing Driven

DistributionSales &

MarketingServices

Supply chainManagement

Manufacturing Development

Supply chainManagement

Research &Development

Manufacturing DistributionSales &

MarketingServices

After 2000: R&D Driven

Contribution:

Speed of Innovation and product development.

Firms ability in exploring and penetrating into new markets.

Value Chain

RESEARCH AND DEVOLOPMENT


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samsung group 3 r1

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