2013 . 4. 9~10

The reason Samsung can’t beat off Apple

Prof. YoungChan Ahn

BZeye School

Strategy Premier League : Round 1

(Photo from http://mashable.com/2012/08/27/apple-samsung-jury-foreman/)

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Strategy Premier League : Round 2

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Strategy Premier League : Round 3

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Strategy Premier League : Round 4

Samsung vs Apple

1969 -Samsung Heavy Industries Co. established

(Capital : $ 200 million)

1974 -Began refrigerator, air-conditioner and washing machine production

Samsung vs Apple

1976 -Development own technology

to produce color TV(14inch)

1976 -Founded by Steve Jobs, Steve Wozniak and Ronald Wayne on April 1, 1976 - Developed the first personal computer ‘apple I’ - $774 millions sales

1978 - Samsung Electronic America established

- $100 million in exports

1977 - Launched ‘apple II’, caused a sensation in US - $100 millions sales, production until 1993

Samsung vs Apple

1982 -Sales subsidiary (SEG) established

in Germany and Portugal -Name changed from Korea Telecommunications Corp.

to Samsung Semiconductor & Telecommunications Co.

1984 -Name changed from Samsung Heavy Industries Co.

to Samsung Electronics

1980 - Apple went pubic at $22 per share.

1983 - Hired John Sculley who had been a president of Pepsi Co. as CEO - Developed the first personal computer with a GUI ‘LISA’ - One trillion dollars sales

1984 - Introduced ‘Macintosh’($2,495)

Samsung vs Apple

1988 - Samsung Semiconductor & Telecommunications

Co merged with Samsung Electronics. Home appliances, telecommunications, and

semiconductors selected as core business lines.

1985 -Powerful struggle between Jobs and CEO John Sculley because Apple’s competitive position was undermined compared with IBM - Jobs resigned from Apple and found NeXT Inc.

1986 - Jobs acquired the computer graphics division of Lucasfilm which was spun off as Pixar

Samsung vs Apple

1998 - Achieved top share of world’s TFT-LCD market

- Began mass production of the world’s first digital TV

- World's first 128M SDRAM introduced - $10 trillion sales

1997 - Apple took over NeXT for $429 million - Jobs returned to Apple as CEO

1995 - Released Toy Story - Toy Story earned over 360 million dollars worldwide

1998 - Introduced ‘iMac’ - Sold almost 800,000 units in its first five months

Samsung vs Apple

2003 -Samsung brand value ranked 25th in the world

by Interbrand - Ranked 5th on the "Most Admired Electronics

Company" list released by the Fortune Magazine - Released the first HD DVD combo

- $40 trillion sales

2001 - Announced ‘iPod’ and ‘iTunes’ the first generation of MP3 player

2004 - Developed the world's first 60-nano 8GB NAND

Flash memory chip

2003 - Jobs diagnosed with a pancreas neuroendocrine tumor

2007년 - Achieved No.1 worldwide market share position

for TVs for the 7th quarter in a row - Attained No.1 worldwide market share position

for LCD for the sixth year in a row

Samsung vs Apple

2008 - Taken No.1 spot in U.S. cellphone market

- Achieved No.1 worldwide market share position for TVs for the 9th quarter in a row

2009

- Attained No.1 market share position for digital TV in US for the fourth year in a row

2007 - Announced ‘iPhone’ , caused a huge sensation in mobile market - Sold an average of 1.27 units per a sec - Apple shares hit $97.80, an all-time high at that point. In May, Apple's share price passed the $100 mark.

2010 -Announced a large screen, tablet-like media device ‘iPad’ - Sold over 300,000 units on the first day

2011 - Launched Galaxy S2

- Sold an average of 55 thousands units a day

2011 - Jobs died on October, 5

Success DNA of ‘Samsung’

Man and talent first “Talent Management”

☞ “I spent 80 percent of my life in recruiting and training people.”

(Business Philosophy of Lee Byung-chull)

☞ “The core competence of corporation in the digital era is that does the

company have talented people who can take care of the future"

Bold investing at the right time

☞ Samsung Heavy Industries Co. established in 1969

Success DNA of ‘Samsung’

Speed Management

☞ Keep it simple and clear

☞ Samsung succeeded in removing unnecessary business process and being

equipped with globally standardized development system, producing a rapid

decision-making system

☞ well diversified by field and boasts of top-class global competitiveness in

each sector. Its most powerful strongpoint is its managerial system that has

optimized merits of the Japanese and American-style managerial systems

This is key point how can Samsung catch up Apple’s ‘iPhone’

Success DNA of ‘Samsung’

Vision

☞ Lead employees to higher level sharing their vision and inspiration

Management system

☞ Quipped with the fastest response system in the world by securing global

ERP and SCM management systems through massive investment

☞ Secured both finished products such as smart-phone and TV and relevant

parts, including semiconductor and display is possible to develop

->possible to make new products at a faster pace

than its global competitors as it.

Success DNA of ‘Samsung’

Customization Sales

☞Research and investigate the top 20% salesman

from Samsung Electronics branches

->“How can be a good salesman?”

->Staff training for CRM

Awareness of Crisis

☞ Keep on toes

☞ Internal competition at work

Success DNA of ‘Apple’

Humanities and Arts insights

☞ Combine humanities with techniques and software with hardware,

you can finally make results that make people be impressed

Synergy of Creativity and Leadership

☞ Even though Apple makes computers, MP3 player and smart phones

like other companies, Apple makes them ‘differently’.

Since they make their products based on their motto ‘Think Different’

sincerely, Apple could attract lots of manias and

the basic root of different making is based on Jobs’s leadership.

Success DNA of ‘Apple’

Dominate Markets by using Innovative Products

☞ iPod → iPhone → iPad Apple TV iwatch?

Pursuit Details and Perfectionism

☞Apple always predict the processes that consumers buy their products and

use them firstly. Also Apple check out the processes numerously if there are

factors which make consumers be excited or frustrated

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Strategy Premier League : Round 5

Disney Cases-The power of contents

How much money does Mickey mouse make? Mickey mouse was born in 1928. He still makes money even though he is 85 years old. He get paid more than $6 trillion dollars only for character license fee every year.

(Many kinds of products related to Mickey mouse)

Disney Cases-The power of contents

Remaking of ‘snow white’->Making consistent profits

2013

Worldwide Gross: $1,273,738,009

Disney Cases-The power of contents

1995 1999 2010

US Gross : $191,796,233 Worldwide Gross : $361,948,825

Apple cases-The power of creation

US Gross : $245,852,179 Worldwide Gross : $484,966,906

US Gross : $415,004,880 Worldwide Gross : $1,064,404,880

Total US Gross : 883,355,738 Total Worldwide Gross : 1,947,188,680

1998

US Gross: $162,798,565 Worldwide Gross : $362,000,000

Apple cases-The power of creation

2001

1st Week : $100,000,000

Apple cases-The power of creation

2003

1st Week : $70,000,000

Apple cases-The power of creation

2006

Apple cases-The power of creation

Car 1 US Gross : $244,082,982 Car 2 US Gross : $191,452,396 Car series Total Gross : $1,500,000,000

Worldwide Gross : $2,788,000,000 Total Earnings(including DVD) : $5,000,000,000

Other cases-The power of creation

2009

Do You Know Me?

How about ‘Samsung’?

There’s hope yet.

Pororo the Little Penguin

Brand value : $770,000,000 Accumulated earnings of Character products : $1,200,000,000

There’s hope yet.

$300,000,000 in yearly sales

1.What is the lesson that we have to learn from the best industry?

Strategies From Korean Shipbuilding Industry

2. What is the thing that we can do well? There is a possibility

Strategies From Korean TV Industry

How to hire the next Steve Jobs?

SQUARE

Vs.

What if Samsung is never changed…..Our future?

Hardware Software

Before planning strategies,

you have to change your

thought.