Samsung Strategy

In: Business and Management

Submitted By mailtovinu
Words 5673
Pages 23
International Journal of Multidisciplinary Research Vol.2 Issue 3, March 2012, ISSN 2231 5780

*Daniel Froes Batata, Ha Sook Kim, Gladys A. Kelce College of Business, Pittsburg State University, Pittsburg, KS 66762, U.S.A.

ABSTRACT Sony, one of the world‟s most prominent companies in the electronics industry from Japan, has dominated the markets from all over the world for a long time since 1970s. Over the last decade, however, it has faced challenges to maintain its growth. Although sales levels have been relatively steady over the last decade, its profitability has gone from approximately eight to almost zero percent in 2009. Concomitantly, Samsung Electronics from Korea has successfully overcome the challenges presented in the global market. During the same period, its sales have increased over 600 percent and its profitability in 2009 was over ten percent. Additionally, the company has gained prestige in the minds of consumers and enjoys a privileged position in the electronics industry from all over the world. This paper discusses the reasons why the companies have had different performances in the markets and examines their challenges for the future. KEYWORDS: Comparative Study, Business Strategies, Electronics Industry, Korea, Japan. ______________________________________________________________________________ INTRODUCTION The electronics industry is one of the most dynamic markets today. New technologies are daily launched into the market and the life cycle of electronic products is extremely short. In order to survive, companies and countries have to be in constant search for improvement and innovation. Two of the major companies in this market, Sony and Samsung Electronics, have adopted different strategies…...

Similar Documents

Samsung Marketing Strategy

...“Inspire the world, Create the future.” 1.0 Executive Summery Samsung Electronics has proven to the business world that they are one of the most prestigious technology companies in the industry. With more technology advancements than our market can handle at this point and time, Samsung has paved the way for the future in electronics. One of the most popular new “toys” in the market today, is the unbelievable 3D TV. The first 3D TV was launched in March of 2010, and has already had a major impact on the market. With the release earlier this year, Samsung dominated the market, controlling nearly 90% of the total share. Samsung’s product, the 9000 series TV, is incomparable to competition with its ultra-thin screen, measuring only 0.3 inches in width. The 9000 series also comes with a full color spectrum that makes for an incredible viewing experience. Although Samsung is dominating the 3D market, we still have very detailed strategies and tactics that we believe will give us an increased competitive advantage over our competition. The company’s main emphasis the past couple years has been on integration, union, and encouraging innovation. Samsung is always preparing for the next big item to hit the market, which is why their technology is so far ahead of all leading competitors. In the future, we plan to enter the 3D video gaming market with a partnership with Microsoft. This will give us access to all of Microsoft’s gaming technology, in which we will combine with our......

Words: 11684 - Pages: 47


...Below is a free essay on "Samsung" from Anti Essays, your source for free research papers, essays, and term paper examples. Important of Strategic Marketing in Promoting Samsung Galaxy S2 - 09-05-2011 by Expert Article Writer - Ez Go Articles - Important of Strategic Marketing in Promoting Samsung Galaxy S2 by Expert Article Writer - Monday, September 05, 2011 Samsung galaxy series is competing with Nokia N8 and the mobiles present under the similar series. Both the companies are putting in so much of effort to mark a successful presence in the niche. In today’s era, marketing is very important to promote certain products and services because that is the only way to educate consumers about them. Strategic marketing is also vital because it can attract customers’ attention towards certain products and help the particular company to generate more revenue. Samsung Galaxy S2 is popular in the market due to its great features and interesting appearance.However, strategic marketing is what causes it to be so popular in the market. Why is it so important? Basically, strategic marketing is important in promoting this smart phone because of its effectiveness. Well, we all believe that no matter how good your phone is, and if your marketing strategy is not good enough, people will not catch an eye on that phone. Therefore, Samsung Galaxy S2 is so......

Words: 345 - Pages: 2

Samsung-a Global Strategy

...School of Management Project Name: Samsung-A Global Strategy Group Team Name: Team B Virtual Team Members: Marco Davino, Nicholas Kittles, Spencer Thomas, & Trena Vaughner PROJ-587 Professor Robert Kenmore September 29, 2012 I. Overview In 1997 Samsung decided to accelerate the globalization of the Samsung Group and to do so the Global Strategic Group (GSG) was recognized as a key strategic partner to Samsung Affiliates. The business venture started with a class of 20 Global Strategist and by August 2010 consisted of a class of 50 members and nearly 400 completed projects across the industry. It became clear that GSG could enhance Samsung’s strategic position and business operations by providing new perspectives to senior leadership. Chairman Kun-Hee Lee released this statement, “We need high caliber global talent who can reveal to us a fresh perspective on trends and the latest information. Let us develop talent to become global managers abroad by familiarizing them with Samsung through a two to three year posting in the Chairman’s Office.” The South Korean based company experienced a 10% drop in market capitalization due to a decline in flat-screen television sales and the end of a partnership with Sony Corp. The separation allowed the company to focus and invest more in the profitable areas of technological industry such as smart phones, non-memory chips, and next generation panels To improve the competitiveness, Samsung Electronics is now......

Words: 4265 - Pages: 18

Marketing Strategy-Samsung Galaxy

...I have recently purchased a new cell phone. This cell phone is a Samsung Galaxy S Light ray 4G this one of the most popular android smart phones that my carrier have. I was in need of a new phone so I decided to treat myself to something nice. The price of the phone was $459 this is the average price of this phone since the phone just came out it offers so many details it was defiantly worth paying for it. All smart phones are rather expensive but they have so many different functions that they have to expand the price of the phones so a profit can be made. The product is a Samsung Galaxy S Light ray 4G this is a up to date Android Smartphone its able to bring live TV to the palm of your hand with the preloaded Dyle which is a mobile TV service that picks up special broadcasts of local TV channels, Dyle allows you to get programming anywhere you have your handset or Smartphone. I can enjoy movies and photos that shine bright it also have a 4.3” screen that is great for displaying. This Smartphone offers 1.36 GB of internal memory, 3.3 hours of talk time, 200 hours of standby time and 32 GB of external memory. The Galaxy S Light ray have 8MP camera with a LED flash so your pictures can be clear and you are able to get good pictures in the dark. This Smartphone is a 4G phone which allows you to receive mobile hotspot which allows you to share your connection with multiple devices on the fast 4G network. The Promotion is for all the price doesn’t change whether you are a...

Words: 430 - Pages: 2

Operation Strategy: Samsung

...Samsung The philosophy of Samsung is “devoting of human resource and technology in the creation of products services which are superior hence contributing to a better global society. Under the philosophy Samsung has adopted a strategy which based on sport in the brand building. The firm acknowledges the basic role which is played by sports and by the Olympic Games as a promoter of its brand. Its management states that its strategy of sports sponsoring which fits well within their operations at Samsung is an integral part of the company’s philosophy. As they enter into the top plans propels the sponsorship of Samsung to a new era. It has been given an opportunity of acting on the same stage with the top brands of the world like IBM, Coca cola and visa which have enhanced their brand name considerably. Samsung would wish to accomplish two goals with the effort of sponsorship. Firstly it would be the building of brand awareness to especially create higher level of awareness than its rivals. The effectiveness of Samsung sponsoring was portrayed in 2004 in Athens Olympic Games which had a positive impact on the awareness of the brand. The second goal is the enhancement of the global imagery and attitudes towards its brand. Samsung considered its commitment to the Olympic movement as a key element in positioning and strategy. It makes contribution to Olympic Games success and at the same time enhances the brand image of Samsung and its market position. Samsung integrated......

Words: 618 - Pages: 3


...Choosing Personality as the next level of Brand Meaning: Samsung Electronics Company has proved to be a leading technology based company which has a strong design team. But the technological innovations are becoming too common. People have seen these new technologies in different devices that they use. So in order to differentiate from the rest of the market, Samsung should improve its personality by telling a compelling story appealing to the emotions of customers and attract them. Recommendations: FCB has done a wonderful job of segmenting the market into accelerators, turning point and advanced. Samsung should conduct further research in each of these market segments and create a detailed segmentation of customers who can be targeted by creating a personality for Samsung. Conducting campaigns like “Samsung DigitAll-Everyone’s Invited” are first step in this process. More of these campaigns should be formulated giving importance to the cultural aspects of a specific country and should be promoted in each country independently. With the advent of new technologies, electronic devices have become very complex. Samsung can build a personality by differentiating itself from the rest of the brands by making products that are simple to use but which deploy latest complex technologies. While advertising, focus should be given more on explaining the personal benefits and experiences of using a Samsung product than the technology behind them. This will make the consumer to......

Words: 576 - Pages: 3

Samsung Strategy

...Competitive Strategy Samsung Electronics Samsung has a clear cost advantage over its competitors We have identified the following key sources of cost advantages: Economies of learning, production techniques, input costs and residual efficiency. Economies of learning Samsung has demonstrated economies of learning. While in the 80’s Samsung had to acquire outside technology to begin production, Samsung soon lead industry with important breakthroughs such as “stacking” technique or successes in implementing the 8- and 12-inch wafer mass production. 12-inch wafer versus its predecessor yields a 10% lower cost per chip (Exhibit 10a) thanks to a greater output per step of production. Production Techniques The latter goes in hand with production techniques that ensure better yield rates. Minimizing defective chips brings down scrap and re-processing costs. In Exhibit 10c we can see that Samsung has 20% better yield than its closest competitor in this regards. Moreover, Samsung is able to keep producing legacy products (older than 1 year since launch) efficiently. By 2003, for example, Samsung was producing 16.40 million units of 64Mbit (merely 1.8% of its total production) while keeping fully loaded costs 27% lower than the weighted average cost of its competitors for this particular product (Exhibit 7b). Input Cost Large production volumes trigger high-volume purchases that results in discounts from suppliers. For example, raw materials represent on average 27% of the cost per......

Words: 1230 - Pages: 5

Operation Strategy of Samsung

...CuStomer interaCtionS future roAd mAP asian Paints views the latest release of SaP Crm as a platform that will ultimately support all customer activities and interactions, including those that SaP Crm allows us to see them as a single entity,” says Deepak Bhosale. “that helps us develop strategies that are personalized, targeted, and successful.” as part of the drive to create innovative strategies using the SaP Customer relationship management application, asian Paints is working on the following initiatives: • Loyalty management – asian Paints works closely with dealers, contractors, painters, interior designers, and architects to promote its services and offerings. Currently, the company intends to use the new release of SaP Crm to manage the diverse loyalty programs that reward and motivate these partners. • Real-time offer management – at any given time, asian Paints runs a multitude of special offerings and promotions. to help agents and dealers make informed decisions about which product or service to offer, the “Even when customers engage with us via multiple channels and request multiple services, SAP CRM allows us to see them as a single entity. That helps us develop strategies that are personalized, targeted, and successful.” Deepak Bhosale, Chief manager – it, asian Paints Limited company intends to deploy an offermanagement tool that makes recommendations based on relevant customer information. the tool, which uses optimization analytics, will......

Words: 4235 - Pages: 17


...| Samsung Electronics | | | | James BerryStrategic Management 4700 7/14/14 | | Samsung Electronics | | | | James BerryStrategic Management 4700 7/14/14 | SAMSUNG ELECTRONICS I. General Environment A. Economic Environment In 2012 net sales were $201,104 billion with a gross profit of $74,452 billion. The economy has been declining over the years. Samsung should reduce its expenses every year to keep being profitable. Samsung need to supply it components to less competitors. B. Demographic Environment Samsung Electronic has increased its employees because of the new production plants in China. Samsung need to look into reducing its manufacturing cost because the economy is not getting any better. China is known for cheaper labor. Samsung need to find a way to decrease employees in the manufacture or machinery cost. C. Social and Cultural Environment Samsung Electronic is well known worldwide. Samsung products are made for all ages to use. Samsung need to make sure that its products are attractive to all generations. Many of the older generation are happy with the older products. Older generation find the newer phones hard to use. Samsung need to make its newer product more user friendly for all ages. D. Political and Legal Environment Samsung need to work with big competitors to help them go through fewer layers of bureaucracy, taxes and the exchange rates. Samsung need to make sure its Patents are registered. Apple suing Samsung is......

Words: 1287 - Pages: 6

Samsung Corporate Strategy

...Strategy More: Samsung Innovation Strategy Apple Samsung Has A Totally Different Strategy From Apple, And It's Working Great REUTERS/Lee Jae-Won Just a few years ago Samsung was struggling to catch up in the smartphone market. Now it makes more of them than anybody else and has Apple on the back foot, in addition to being the world's largest technology company by revenue.  The heavily hyped launch of its flagship Galaxy S4 smartphone is the latest step as it tries to overtake Apple, and they've gone all out with a massive screen and impressive new features.  Here are some of the core pillars of Samsung's strategy. The ultimate fast follower Samsung is better than anybody else at learning from its competitors. "A market reader is sort of the classic fast follower," explains Barry Jaruzelski, senior partner at Booz&Co and the co-author of the Global Innovation 1000. "It doesn't mean they ignore their customers, but they're very attuned to what competitors are doing and what other people are bringing to market first and observing what seems to be gaining traction, then very rapidly coming up with their own version of that innovation." Samsung's aggression has gotten it into trouble in the past, losing a high profile case to Apple for imitating its design. But the reputation hit and the fine were a small price to pay.  The company pivots and produces quickly, coming out with a variety of devices. It sees what the market responds to, pushes successes, and kills......

Words: 1012 - Pages: 5

Samsung headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses, most of them united under the Samsung brand, and is the largest South Korean chaebol . Samsung was founded by Lee Byung-chul in 1938 as a trading company. Over the next three decades, the group diversified into areas including food processing, textiles, insurance, securities and retail. Samsung entered the electronics industry in the late 1960s and the construction and shipbuilding industries in the mid-1970s; these areas would drive its subsequent growth. Following Lee's death in 1987, Samsung was separated into four business groups – Samsung Group, Shinsegae Group, CJ Group and Hansol Group. Since 1990s, Samsung has increasingly globalized its activities, and electronics, particularly mobile phones and semiconductors, have become its most important source of income. Notable Samsung industrial subsidiaries include Samsung Electronics, Samsung Heavy Industries, and Samsung Engineering and Samsung C&T . Other notable subsidiaries include Samsung Life Insurance, Samsung Everland, Samsung Techwin and Cheil Worldwide . Samsung has a powerful influence on South Korea's economic development, politics, media and culture, and has been a major driving force behind the "Miracle on the Han River". Its affiliate companies produce around a fifth of South Korea's total exports. Samsung's revenue was equal to 17% of South Korea's $1,082 billion GDP. In 2013, Samsung began......

Words: 2549 - Pages: 11


...SAMSUNG ELECTRONICS 1) What is the case about? By investing in the DRAM production in the 80´s, the Samsung Company managed to turn Samsung Electronics group into its main source of revenue. The company developed a very specific strategy: * Investment in production process in order to increase productivity : the main goal being to produce more quickly with less mistakes * Leading in frontier product : always be the leader in technology * Quality control : always focus on the quality of the products * Human resources : stimulating environment by a meritocratic system based on incentive programs In 2005, the arrival of firms companies in the memory chip market is threatening Samsung´s leadership. More specifically, the global memory industry is a sector with a little number of powerful suppliers and various price-conscious customers. Like Samsung in the 80´s, new Chinese companies are creating a fierce competition, willing to sacrifice profits in order to get market share. Those companies got industry experience by creating leadership and managed to build high value facilities by raising international financing. In spite of the American and Taiwanese´s blockade, the government created incentive for other foreign countries by creating an attractive environment. Samsung decided to create partnerships with Chinese companies but this implies two main risks: * The fact that intellectual propriety is not being well-protected * The fact that by moving......

Words: 1846 - Pages: 8

Samsung Strategy

...importance on industrialization, and focused his economic development strategy on a handful of large domestic conglomerates, protecting them from competition and assisting them financially. He later banned several foreign companies from selling consumer electronics in South Korea in order to protect Samsung from foreign competition. The Samsung Way :- It thrives in low-margin consumer electronics. It favors hardware over software. It's still a conglomerate that makes everything itself. Samsung Electronics has already taken giant steps from its early days as a copycat appliance manufacturer. Now, as a consumer electronics behemoth, it has expanded beyond South Korea and the nation’s industrial, conglomerate-run shipyards, steel mills and auto plants. In the past decade, Samsung Electronics has rocketed past Sony Corp. as the largest maker of flat-panel TVs. It has edged out Hewlett-Packard Co. in color laser printers that scan, fax and copy. It’s also the biggest in other technology-dependent areas such as liquid-crystal-display TVs and computer monitors. No. 2 in mobile phones, Samsung is pushing the Galaxy S smartphone to challenge Apple Inc.’s iPhone and narrow the gap with leader Nokia Oyj. Samsung claimed a 22 percent global mobile-phone share in the first quarter, up from 14.4 percent in 2007, when it overtook Motorola Inc., market researcher Strategy Analytics says. All of this gear has helped Samsung Electronics quadruple annual revenue to 139 trillion......

Words: 788 - Pages: 4

Samsung Electronics Strategy

...Samsung Electronics Prepared by: M. O. Prepared for: Dr. N. C. Course: Organizational Strategy, MGM 6123, Fall 2009 [pic] Date: October 5, 2009 H. State University Samsung Group is one of the leading global conglomerates originating in South Korea, termed chaebol in native terms. Their sales in 2004 climbed to $134billion with 337 overseas operations in 58 countries and they employed 212,000 people worldwide. They have myriads of businesses in a wide variety of industry sectors including electronics, finance, trade and services (Siegel and Chang, 2005). In 1974 a semiconductor company in South Korea started ‘wafer’ production. This was purchased by Samsung Company who merged the semiconductor company with their electronics division to form a ‘global powerhouse’ (Siegel and Chang, 2005). They started with producing watch chips. In the 1980s, semiconductor was decided to be the future of Samsung Group. And the company gave most of its resources to this ‘star affiliate’ (Siegel and Chang, 2005). During 1983 to 1985, Intel exited the DRAM market. Samsung still held on despite incurring losses hoping that it would someday pay off. Their persistence paid off in later years. Samsung built its first large plant in the mid 1980s. Building a semiconductor facility is difficult and time consuming, because of high sensitivity to dust and electric shock. But the Samsung workers, from the executives, engineers, down to the field laborers, were highly dedicated. One......

Words: 2333 - Pages: 10

Business Level Strategy of Samsung

...Business level strategy of Samsung Introduction Samsung Group (Samsung, 2016) is the largest group or the giant in Korea. Samsung Electronics is the biggest subsidiary of it, which initiated in 2011. A Korean consolidated company generates an average income of $ 150 billion every year. Samsung Electronics has 144 consolidated subsidiaries which 28 were recently combined at the end of 2014. Samsung Electronics contains three core divisions: • Device Solutions, a Business to Business (B2B) division handling semiconductors, various other chips and also Liquid Crystal Display (LCD) and other components.. • Digital Media & Communications (DM&C) is primarily a Business to Consumer (B2C) Company making computers, television sets and phones and also everything in between. • Samsung Advanced Institute of Technology (SAIT) is the research power of Samsung that likewise manages (at the moment) its brand-new companies. The three company divisions deal with nine business level units. Image 1 These all units are regulating by each different ways. Numerous marketing and advertising strategies, various marketing projects, different devices, various PhD owners, in addition to numerous purposes with goals For that reason these products are numerous business devices of Samsung Company. Important point is that there are numerous rivals for each system around the world with suitable competitors that needs to manage each unit by various business unit level techniques. Business Level......

Words: 2637 - Pages: 11