Samsung Electronics was founded in 1969 in Suwon, South Korea as
Samsung Electric Industries, originally manufacturing electronic appliances
such as TVs, calculators, refrigerators, air conditioners and washers. By
1981, the company had manufactured over 10 million black and white TVs.
In 1988, it merged with Samsung Semiconductor & Communications.
Samsung Electronics is the global market leader in more than 60 products,
including semiconductors such as DRAM , SD RAM, flash memory and hard
drives, digital displays such as LCD displays, plasma displays and OLED
displays , home electronics such as TVs, DVD players, Blu-ray players,
home cinema systems, set-top boxes and projectors, mobile devices such
as mobile phones, MP3 players, digital cameras and camcorders, computing
products such as monitors, laptops, UMPCs, CD and DVD Drives, laser
printers and fax machines and home appliances such as refrigerators,
washing machines, microwaves, ovens, vacuum cleaners and air conditioners.
In 2005, Samsung surpassed Japanese rival Sony
for the first time to be rated as the new leading
and most popular consumer electronics brand in the
world by Interbrand. In 2007, Samsung Electronics'
handset division overtook American rival Motorola ,
making it the world's second-largest mobile phone
maker. At the end of 2007, Samsung Electronics
exceeded the $100 billion mark in annual sales for
the first time in its history. This achievement
places the company, along with Siemens of Germany,
IBM of the U.S. and Hewlett-Packard of the U.S.,
among the world's top three companies in the
electric appliances and electronics industry.[
Today, Samsung brand is the best known South
Korean brand in the world and in 2008. Business
week rated Samsung as 21st
on the Top 100 Best
Global Brands 2008. Samsung overtook Japanese
rival Sony as the world's leading consumer
electronics brand.
history
In 1970, Samsung Electronics made
cheap 12-inch television sets under
Sanyo label.
Now, capturing the number one
position in the global memory chip
market and pioneering the
development of flat-screen displays,
plasma TVs, multifunction
cellphones, and other digital devices.
Product
Semiconductors : DRAM, SDRAM, flash memory, and hard
drives
Digital displays : LCD displays, Plasma displays, and OLED
displays
Home Electronics : TVs, DVD players, Blu-ray players, home
cinema systems, set-top boxes, and projectors
Mobile devices : mobile phones, MP3 players, digital cameras,
and camcorders
Computing products : monitors, laptops, UMPCs, CD and
DVD drives, laser printers, and faxes machine; and
Home appliances : refrigerators, washing machines,
microwaves, ovens, vacuum cleaners, and air conditioners.
Product
Samsung invested a lot of money in
research and development, in order
to meet what customers needs and
wants.
Samsung spent about 9% of revenue,
amounting to around $5billion, in
2005 in research and development.
product “design awakeness all your senses”.
United States Top 5 Innovators 2008
Rank # of Records Company Country of Origins
1 7404 SAMSUNG ELECTRONICS KOREA
2 6576 IBM UNITED STATES
3 2931 MICROSOFT UNITED STATES
4 2421 TOSHIBA JAPAN
5 2019 CANON JAPAN
Europe Top 5 Innovators 2008
Rank # of Records Company Country of Origins
1 2753 SIEMENS GERMANY
2 2619 BOSCH GERMANY
3 1475 SAMSUNG ELECTRONICS KOREA
4 1250 DAIMLER GERMANY
5 905 RENAULT FRANCE
These rankings comes from IP Solutions, part of Thomson Reuters : The
world’s leading source of intelligent information for businesses and
professionals.
Samsung has its own stores which can
be found around the world. Not only in
Asia , but also in America, Europe,
Australia and Africa.
Samsung has its stores located & also
its service center at places where it is
closes to the customer reach.
At the stores, we not only can buy
the product that sold, but also feel the
experience of digital lifestyle.
In India after covering the urban
market Samsung is now ready to tap
the urban market.
Plans are to start up a plant in Tamil
Nadu & Andhra Pradesh with an
investment of $150 million.
Samsung sells product with a price that’s
worth, if we compare it with the functions,
benefits and technology.
Samsung is in the process of building an image
as “a stylish, high quality brand
commanding a premium price”
Hotel chains (such as Hilton), where most in-room
technology was now dated and required early
replacement to retain competitive advantage.
Their products are also been used in various
movies which is also been used as a marketing
base.
Also their giving away their products at various
sports event as gift for the players.
The Summer and Winter olympics
games
Chelsea FC shirt sponsorship deal
Horse jumping (Samsung
Superleague).
In 2005 ,the firm devoted nearly 15
% of its media budget allocated to
page -topping banner ads on over 400
Internet sites
Link to mainstream entertainment :
Fox’s movies Fantastic Four
Display in the film
Existing knowledge and
experience of electronics
market
Strong global presence
with strong brand and
customer base, in 2009
according to Interbrand
Global value of Samsung’s
brand is US$ 17,518 million
compare to its competitor,
Sony, which is US$ 11,953
million.
2009 2008 Brand Country of Origin Sector
Brand
Rank Rank
value Value Value
US $
Well diversified and differentiated product
line, to meet changing customer needs.
Samsung electronics has 4 business areas to
cover customer electronic needs.
Design with an attractive styling that
catching the pulse of customer, as the
result of the development of Samsung‘s new
products that involve team of product
designers.
Market share: Global
market share of
mobile phone increase
from 18% in 2004 to
19.1% in 2009.
Memory chip
Industry is 27% in
2009 compare with
21% at the end of
2008.
It is the biggest
manufacturer of
liquid-crystal display
panels with 23% 2009 Figures
Loyal customer & customer
satisfaction: Samsung
Electronics reports that its
“Anycall” mobile phone
topped the American
Customer Satisfaction Index
(ACSI) (2005)
Cost Competitiveness by
mass Production
Samsung Electronics
expanded production
dramatically to become the
world's largest manufacturer
of DRAM chips, flash
memory, optical storage
Technology
With an excellent research and
development capabilities, they spend a
high percentage of revenue on R&D. It
resulted in global leadership in the
television segment, and in improving its
position from the third to second
player in mobile phones with their
innovative products.
Customer perception of weak product attributes like
Durability
Different perception on “worth the price” product
on each person that difficult to cover.
Not pro-active coming out with unique and leading
model
Focus on mass market instead of niche market
Huge investment on Research & Development
Consolidated Financial Statement years ended Dec 31, 2007 and
2006 (audited report)
1 US$ = 938 Won
2007 (Mill won) 2006 (Mill won)
Sales 98,507,817 85,834,604
Research expenses 2,353,844 2,252,848
Ordinary development expenses 3, 720, 115 3,461, 914
Total R&D 6,073, 959 5,714,762
R&D/Sales 6.17 % 6.66%
Increasing on electronics consumer market
Strong customer demand for innovative products &
value-added features
High % of Younger population, which can be expand a
new market now and in the future
Population by Age and Sex, More Developed Countries: 2009
Availability of cheap Chinese electronic products.
Delay in technological innovation which helps other
company(Apple).
Saturated in only multimedia & communication field .
Making the people
suggestions
Become leader of
environmental
initiatives to
provide more
environmental
friendly
electronic
products
Enhance their
advertisement
campaign to
create greater
suggestions
As a Corporate
Social
Responsibility
Samsung needs to
enhance their
brand image by
indulging in more
social causes
because a good
corporate not only
takes from people
but also returns to
them
suggestions
Improve After
Sales Service
because
satisfaction
helps in
retaining
customers
Make their
R&D more
efficient
The conclusions drawn from the
SWOT analysis were that
Samsung’s strengths carry
more weight than its
weaknesses. If Samsung can
properly exploited
opportunities that exist, it will
navigate the threats with no