Group # 8 Case# 10

Group MembersSumyya AfzalSaima AshiqIbrahim Wali

Presented by:

OU

TLIN

E

Company OverviewKey PeoplesMission & VisionName & LogoProductsBrand AmbassadorCompetitorsMarket ShareQuestionsConclusion

HISTORYSamsung Group: Founded in 1938 Founded By: Lee Byung-Chull

› exporter of dried fish, vegetables, and fruits› flour mill and confectionery machines

1950’s Economic Stabilization› Korean War - Samsung lost all assets

1960’s Expansion of Key Industries› entered electronics and chemical industries› In January1969 established Samsung electronic corporation

SAMSUNG GROUP

Electron-ics

28%

Machinery & Heavy Equipment

6%

Chemicals2%

Financial Services

26%

Other37%

% of Sales ($72B)distributionhotelsamusement theme parkstradingconstructiontextileadvertisingbaseball teamsecurity

• distribution• hotels• amusement

theme parks• trading• construction• textile• advertising• baseball team• security

• home appliances• wireless

communication• semiconductors

• cameras• aircraft• ships• dump trucks• oil trucks

• polymerized compounds

• plastics• specialty chemicals

• life insurance• credit card services• securities trading• finance and trust

management services

1970’s: Bet the future on electronics› laid the groundwork for electronics in Korea

1980’s: A more comprehensive electronics company› established Semiconductor and

Communication corporation Early 90’s: Integration and Globalization Mid-Late 90’s: Implementing new

management strategies New Millennium: Digital Vision

SAMSUNG ELECTRONICS

Samsung Electronics% Sales ($27B)

Semiconductors 40%

Digital Media 29%

Home Appliances 8%

Telecommunications 23%

% Operating ProfitDigital Media

6%

Semiconductors 79%

Home Appliances

3%

Telecommunications 12%

Company overview

Samsung Electronic

Type PublicKorean

Traded asKRX: 005930 KRX: 005935 LSE: SMSN LSE: SMSD

Industry

Consumer electronics

TelecommunicationSemiconductor

Genre Electronics

Founded 1969, January

HeadquartersSamsung Town, Seoul, South Korea[1][2]

Area served Worldwide

Products See products listingRevenue US$ 133.78

billion (2010)[3]

Profit US$ 13.67 billion (2010)

Total assets US$ 118.35 billion (2010)

Employees 187,800 (2009)

Parent Samsung Group

Website www.samsung.com

Key Peoples

Founder Lee Byung-Chull

Lee Kun- HeeCompany CEO & Chairman

Gee Sung-Choi , President & Director

Jay y. Lee, EVP & COO..

Digital

• To create technology products & services that lead the industry

E

• To put into the place the most efficient management7 production process

Company

• To maintain a steadfast focus on strengthening our organization

MISSION

Vision

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

As stated in its new motto, Samsung Electronics' vision for the new decade is, "Inspire the World, Create the Future."

This new vision reflects Samsung Electronics’ commitment to inspiring its communities by leveraging Samsung's three key strengths: “New Technology,” “Innovative Products,” and “Creative Solutions.”

Samsung Electronics’ corporate name “Samsung” comes from the word “three stars” that shine brightly. The Hanja character “Sam” has the double meaning of three and strong while “sung” connotes “star” and “bright” (or “shining”). The corporate name has auspicious meaning in it, meaning that it foretells success.

Samsung’s logo design emphasizes flexibility and simplicity while conveying a dynamic and innovative image through the ellipse, the symbol of the universe and the world stage.

The basic color in the logo is blue, the color that Samsung has had used in its logos for years. The blue color symbolizes stability and reliability, which are precisely what the company wishes to accomplish with its customers.

Corporate name and logo

Products Semiconductors Slimmer panels OLED Displays Televisions 3D experience Smart TVs and apps Mobile phones

3.8 Home appliances (TVs, calculators, refrigerators, air conditioners and washers)Samsung Electronics manufactures products in a number of categories:Semiconductor: DRAM, SDRAM, flash memoryDigital display: LCD displays, LED displays, plasma displays, Hard drive division was sold to Seagate Technology in 2011

FOCUS: 4 CORE MARKETSHome Multimedia Mobile Multimedia

Personal Multimedia Core Components

FOCUS: 4 CORE MARKETS

Brand Ambassador

Amir Khan

Major Competitors

ProductSamsung'sglobal M/S

Competitors M/S Year

DRAM 40.4% Hynix 19.8% Q3 2010

NAND Flash 40.4% Toshiba 33.1% Q2 2010Large-size LCD Panel(revenue)

26.0% LG Display 25.9% Q3 2010

Active-Matrix OLED 97% LG Display, AUO 1~3% 2010

Lithium-ion battery 18.7% Sanyo 19.4% Q1 2010

LCD Monitor 18.0% Dell 12.8% 2009

Hard disk drive 9% Seagate Technology 31% Q4 2009

Television sets(LDC, PDP, CRT)

17.2% LG Electronics 14.8% Q3 2009

Mobile phone 21.0% Nokia 23.4% Q3 2010

Digital camera 11.8% Sony 17.4% 2010

Market Share

Organization Structure 4 main groups with 14 divisions:

Samsung Electronics

Digital Media

Semiconductors

Information &

Communications

Home Appliances

QUESTIONS

Question#1

› How was Samsung able to go from copycat brand to product leader?

In 1993, Lee unveiled “new management” which is a top-to-bottom strategy for the Samsung Company. The goal of the new management is making Samsung become a premier brand that would dethrone Sony as the biggest consumer electronics firm in the world. Samsung then hired a new group of young designers who creates sleek, bold, and beautiful product targeting high-end users. Also, Samsung abandoned low-end distributers, and they decide to choose to work with specialty retailers such as Best Buy and Circuit City. Samsung clearly shows that they are no longer the cheap brand. They revamped their strategy & positioning along with developing stylish & innovative products.

Answer

Question#2

› Is Samsung’s product development process customer centered? Team based? Systematic?

I believe Samsung’s product development process all these three approaches since the “new management” is a top-to-bottom strategy; it requires various company departments to work together. In addition, every new Samsung product had to pass the “Wow!” test: If it didn’t get a “Wow!” reaction during market testing, it went straight back to the de-sign studio. It is definitely creating more customer satisfying experiences, and the test is also how Samsung review, evaluate and manage the new products. It is the most innovative company as well.

Answer

Question#3

› Based on the PLC, what challenges does Samsung face in managing its high- tech products?

After 17 years remarkable success, Samsung is now in the decline stage of their high-tech products; therefore, Lee has announced Samsung’s newest strategy “mabuljungje” which means “horse that does not stop” in Chinese axiom, and he think now is not the time for Samsung to complacent but a time to run.

Answer

Question#4

› Samsung likely achieve its goals in markets where it does not dominate, such as smartphones? Why or why not?

I believe Samsung can achieve its goals in markets where it does not dominate basically because they does not claim to know what will replace today’s products as they become obsolete. Rather, it is investing heavily to ensure that it is the company that develops them. Since, Samsung is willing to use the large amount of money for the investment plan.

Answer

Conclusion

The company stands on the pillars of innovation, trust and excellent customer services. With the changing trend it mould itself to maintain its credibility.

Comments

&Discussi

on