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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/)
VS
Strategy Premier League : Round 2
VS
Strategy Premier League : Round 3
VS
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
-NamechangedfromSamsungHeavyIndustriesCo.
toSamsungElectronics
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
VS
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.
Samsung Never Beat off Apple...But...
Samsung Never Beat off Apple...But...
Samsung Never Beat off Apple...But...
Samsung Never Beat off Apple...But...

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Samsung Never Beat off Apple...But...

  • 1. 2013 . 4. 9~10 The reason Samsung can’t beat off Apple Prof. YoungChan Ahn BZeye School
  • 2. Strategy Premier League : Round 1 (Photo from http://mashable.com/2012/08/27/apple-samsung-jury-foreman/)
  • 6. Samsung vs Apple 1969 -Samsung Heavy Industries Co. established (Capital : $ 200 million) 1974 -Began refrigerator, air-conditioner and washing machine production
  • 7. 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
  • 8. Samsung vs Apple 1982 -Sales subsidiary (SEG) established in Germany and Portugal -Name changed from Korea Telecommunications Corp. to Samsung Semiconductor & Telecommunications Co. 1984 -NamechangedfromSamsungHeavyIndustriesCo. toSamsungElectronics 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)
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. 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’
  • 15. 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.
  • 16. 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
  • 17. 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.
  • 18. 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
  • 20. 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)
  • 21. Disney Cases-The power of contents Remaking of ‘snow white’->Making consistent profits
  • 22. 2013 Worldwide Gross: $1,273,738,009 Disney Cases-The power of contents
  • 23. 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
  • 24. 1998 US Gross: $162,798,565 Worldwide Gross : $362,000,000 Apple cases-The power of creation
  • 25. 2001 1st Week : $100,000,000 Apple cases-The power of creation
  • 26. 2003 1st Week : $70,000,000 Apple cases-The power of creation
  • 27. 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
  • 28. Worldwide Gross : $2,788,000,000 Total Earnings(including DVD) : $5,000,000,000 Other cases-The power of creation 2009
  • 29. Do You Know Me? How about ‘Samsung’?
  • 30. There’s hope yet. Pororo the Little Penguin Brand value : $770,000,000 Accumulated earnings of Character products : $1,200,000,000
  • 32. 1.What is the lesson that we have to learn from the best industry? Strategies From Korean Shipbuilding Industry
  • 33. 2. What is the thing that we can do well? There is a possibility Strategies From Korean TV Industry
  • 34. How to hire the next Steve Jobs?
  • 35. SQUARE Vs. What if Samsung is never changed…..Our future? Hardware Software
  • 36.
  • 37. Before planning strategies, you have to change your thought.