Samsung Electronics

TeamSakshama Ghoslya,

(B12122, 4th Year, EE)

Himanshu Rathore,(B12075, 4th Year, EE)

History:

Founded in: 1938Founded by:Lee Byung-chul (1910-1987, South Korean)

1951: It became the cooperation1969: Started producing Television, Mobile, Computer etc. 1990: Started expending globally (US, Britain, Germany, China)

Quantitative Goals…………………………………..USD 400 billion in sales, No. 1 in global IT industry & Global top 5

Qualitative Goals……………………………………..Innovative and respected company, Top 10 world’s best work places

VISION----------------

Inspire the world, Create the future

Synopsis:Semiconductors : DRAM, SDRAM, flash memory, and

hard drivesDigital displays: LCD displays, Plasma displays and

OLED displaysHome Electronics: TVs, DVD players,

home cinema systems, set-top boxes, and projectorsMobile devices: mobile phones, MP3 players,

digital cameras.Computing products: monitors, laptops, UMPCs, CD

and DVD drives, laser printers, and faxes machine.Home appliances: refrigerators, washing machines,

microwaves, vacuum cleaners, and air conditioners.

Competitors:

AppleLG

Sony

Performance:

SWOT Analysis: Strengths

 Weaknesses

 • Innovation and design• Low production costs• Largest share in mobile phones• Excellence in engineering and producing

hardware parts

• Lack its own OS and software• Focus on too many products• Too low profit margin

Opportunities 

Threats 

Growing mobile advertising industry Growth of tablets market Growing demand for quality application

processors Growing India’s smartphone market

Rapid technological change Price wars Declining margins on hardware production Saturated smartphone markets in developed

countries

Structure and Model type:

Centralized Structure

Planning Model, Late stage companies

Board of Directors: (Total members: 9)Vice chairman and CEO: 1

President and CEO: 2President and CFO: 1

Independent Directors: 5

Organization Chart:

Porter’s 6 force analysis: • Threat of new entrants:

The White Goods industry is characterized by high barriers to entry especially where global companies like Samsung are concerned. Indeed, it is often very difficult to enter emerging markets because a host of factors have to be taken into consideration such as setting up the distribution network and the supply chain. So threat of new entrants is Low for Samsung. • Threat of substitutes:

This element is indeed high as the markets for white goods are flooded with many substitutes and given the fact that consumer durables are often longer term purchases, companies like Samsung have to be careful in deciding on the appropriate marketing strategy. So threat of substitutes for a particular product of Samsung is High.• Power of buyers:

The power of buyers for white goods makers like Samsung is somewhat of a mixed bag where though the buyers have a multitude of options to choose from and at the same time have to stick with the product since they cannot just dump the product, as it is a high value item. Further, the buyers would have to necessarily approach the companies for after sales service and for spare parts. So power of buyers is Medium for Samsung.

Porter’s 6 force analysis: • Power of suppliers:

In many markets in which Samsung operates, there are many suppliers who are willing to offer their services at a discount. However, this does not mean that the companies can exert undue force over the suppliers as once the supply chain is established; it takes a lot to build a new supply chain afresh. So power of suppliers is Low.• Intensity of rivalry:

This element is especially significant for Samsung as the other White Goods multinationals like LG, Nokia, and Motorola, Apple are engaged in fierce competitive rivalry. Indeed, Samsung cannot take its position in the market for granted as all these and other domestic white goods players operate in a market where margins are tight and the competition is intense. So intensity of rivalry is High in this case.• Complementors:

Public debates on multi brand companies and Indian government regulations and incentives are the complementors of Samsung which complements the effectiveness of the organisation in negative way. So 6th force is also High.

Future:

Samsung is still in the list of world’s biggest mobile phone vendors Samsung’s share of the global market slipped to 22.2% from 27.4% last year.

Its earnings could rise thanks to expanded sales of the S6 and curved-screen S6 Edge.

Smart Phone Market shared in China