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Samsung Case Study
1. “ Imagine the Possibilities ”
PRESENTED BY:
RAMINDER PAL SINGH
12030141033
2. HISTORY OF SAMSUNG GROUP
• Founded by Lee Beyong
• Exporter of dry fish, vegetables and fruits
Founded in 1938 • Flour mill and confectionery machines
• Korean war-Samsung lost all the assets
• Aimed to help rebuild Korean economy.
1950’s Economic
• Entered the manufacturing industry(sugar ,fabrics)
Stabilization • Become a leader in modern business practices ,recruiting from outside
• Entered electronics and chemical industries
• 1969 established Samsung Electronics Co.
1960’s Expansion • After the death of founder, Samsung broke down into 4 groups: Samsung Group, CJ
of key Industries Group, Hansol Group and Shinsegae Group.
3. JOURNEY OF SAMSUNG ELECTRONICS
• Manufactured over 10 million Black and White Televisions
• Became World’s Third Company to manufacture DRAM
• Launched First Mobile in 1988
1969-2000
• 2005 - Surpassed Sony to become World 20th largest and most popular consumer Brand
• 2007 - world second Largest Mobile Phone Maker overtaking Motorola
• 2009 - Achieved revenue of $117 Billion surpassing HP to Become world Leader in sales
2000-2010 • Becomes world largest producer of Memory Chips
• 2012- Become the World Highest selling Mobile Handsets beating NOKIA.
• Became World Leader in Smartphone with Galaxy Series phones.
2010-
Present
4. ELECTRONICS MACHINERY AND CHEMICAL FINANCIAL OTHER AFFLIATED
INDUSTRY HEAVY INDUSTRY INDUSTRY SERVICES COMPANIES
• SAMSUNG • SAMSUNG HEAVY • SAMSUNG TOTAL • SAMSUNG LIFE • SAMSUNG
ELECTRO- INDUSTRY PETROCHEMICALS INSURANCE ENGINEERING
MECHANICS • SAMSUNG • SAMSUNG • SAMSUNG FIRE • SAMSUNG C AND
• SAMSUNG SDI TECHWIN PETROCHEMICALS AND MARINE T CORPORATION
• SAMSUNG • SAMSUNG FINE INSURANCE • SAMSUNG
CORNING CHEMICALS • SAMSUNG CARD EVERLAND
PRECISION GLASS • SAMSUNG BP • SAMSUNG • SAMSUNG
• SAMSUNG SDS CHEMICALS SECURITIES MEDICAL
• SAMSUNG • SAMSUNG CORPORATION
MOBILE DISPLAY VENTURE TRUST • S1 CORPORATION
• SAMSUNG • SHILLA HOTELS
DIGITAL IMAGING and RESORTS
• CHEIL
WORLDWIDE
• And many more…
5. PRODUCT LINE OF SAMSUNG ELECTRONICS
Samsung Product Breakdown
CONSUMER PRODUCTS
SEMI- TFT-LCD
MOBILE PHONES 18% Media and
TV/AUDIO/VIDEO CONDUCTORS
TABLETS Appliances
MEMORYCARDS
Semi 34%
Conductor
PC
HOME CAMERA 23%
PERIPHERALS
APPLIANCES CAMCODERS Telecom
PRINTERS 25%
BUSINESS PRODUCTS
ENTERPRISE STORAGE
TELE-
FIBER OPTICS COMPRESSOR MOBILITY & PRINTING
COMMUNICATION
SOLUTION SOLUTIONS
6. SAMSUNG BUSINESS STRATEGIES
UNDERSTANDING TOMORROW MARKET AND CONSUMERS
• Robust market and consumer focused market sensing capabilities
• E.g. vibration reduction tech, French door refrigerators
COLLABRATING FOR GREATER SYNERGY
• Close collaboration between each department-from manufacturing and development to marketing
and purchasing
THINKING OUT OF THE BOX
• R&D
ARRIVING FIRST WITH SPEED AND DELIVERY
• Consistently develop technology and ship product ahead of the rest
CONNECTING WITH CONSUMER LIFESTYLE
• Develop products which fits the consumer lifestyle
MAKING SMART CHOICES THAT GROW MARKET
• Taking risks in investing in new technology
7. SAMSUNG UNIQUENESS
Business Innovation
• Wide Range of Products: new Product launch every year ,Brand value
• SCM and Six Sigma : two pillars in business innovation
Tie Up with Start Ups
• One of the top 4 conglomerates of the World.
• Invested $1.2 Billion in Startups
• Stakes of up to 29.9% in 80+ startups
• Recently invested $5million in Startup named stoke(4G company)
RESEARCH AND DEVELOPMENT
• R&D: 7% of total revenues
• Overseas Partners : Joint R&D Projects, Technology Transfer Agreements, Joint Investments
Pricing
• Deliver Product at Cheapest Rate
• Target Mass Market
8. SAMSUNG BUSINESS MODEL CANVAS
•Hardware Products •Brand •Distributers
•Employees •Innovation
•Management •SCM and SIX SIGMA
•Personal Assistance:
After sale service
•Manufacturing
•Cutting Edge Technology
•Research and
•GREAT DESIGN
Development •MASS MARKET
•Cheap Prices
•Investing in startups •Corporate Buyers
•Green Products
•Manufacturing Cost •Selling Products
•Research and Development cost •Information and Communication
•Distribution cost Services
•Marketing and Advertisement cost •Financial Services
9. ORGANIZATION STRUCTURE OF SAMSUNG
CHAIRMAN
LEE KUN-LEE
Regional Headquarters :North America, Europe, China, Southeast Asia, Southwest
Asia, Latin America, Middle East, and Africa.
CEO
COO CFO
Eco Product Council
Green
Management
Committee
Eco-Operation
Council
IT Solution Division Mobile
Visual Display Digital Appliance Digital Imaging Semiconductor
Communication Network Division LCD Division
Division (PC, Printers) Division Division Division
Division
10. FINANCIALS
Net Sales(dollars in billion) Market
250
200 China Asia
16% 16%
150
Europe
100 America 23%
28%
50 Korea
17%
0
2006 2007 2008 2009 2010 2011
Net Sales(dollars in billion)
11. SWOT ANALYSIS
•ABILITY TO REFRESH PRODUCT LINE
•STRONG POSITION IN EMERGING •WEAK CUSTOMER PERCEPTION IN
MARKET WESTERN WORLD
•HARDWARE AND MOBILE BRAND •LACK OF DEEP CUSTOMER
•HUGE R&D INVESTMENT SEGMENTATION
•PRODUCT BREADTH
•COMPETITORS: LG,SONY
•RURAL SEGMENT
•CHINA THREAT
•GREEN TECHNOLOGY AND HEALTH
•RISK OF CANNIBALIZATION
BUSINESS
•PATENTS LOOSENING
Editor's Notes
Samsung Group is a South Koreanmultinationalconglomerate company 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
Samsung was founded by LEE Beyong in 1938 in Seoul Started business with his family
1. The reason Samsung’s front-loading washers with vibration-reduction technology and French-door refrigerators top their respective category is a direct result of their robust market- and consumer-focused market-sensing capabilities2. close collaboration between each department—from manufacturing and development to marketing and purchasing. And the greater synergy this collaboration enable is helping Samsung lead the way to a more productive & profitable futu3.The most important principle in any R&D process is thinking outside the box. That’s whatSamsung did when they set out to develop a small but very important component of smart cardinformation security. In addition to significantly lower fabrication costs, the resulting all digitalsolution has the added benefit of easing migration to different platforms, technologies, andmarkets. And the ability to step back and challenge the conventional is helping them lead the wayto a more secure digital future4.The thing that’s helped Samsung rise above their rivals in the ultra-competitive LCD panel industry has been its ability to consistently develop technologies and ship products ahead of therest. The cutting-edge R&D capabilities enabled them to seize the first-mover advantage in a new product category at CES 2009 when they unveiled a ready-for- production HD LCD TV with edge-lit LED backlighting when others were just showing mockups.And this ability to consistently be first to market is helping Samsung lead the way to a greener,more profitable future5. At the Samsung, visitors can enjoy an engaging and memorable hands-on experience with over 300 of the latest and greatest Samsung products. The staff of “brand ambassadors” strives to provide exceptional service to each customer while delving deeper into their needs to help themmake the connection with Samsung products that fit their lifestyles. And those lasting impressionsare helping Samsung lead the way to a richer, more enjoyable future.One of Samsung’s strategic goals in 2008 was to grow mobile phone market share in emerging markets. While many of their rivals lost ground in last year’s market downturn, their smart,focused product line and resource allocation choices enabled them to achieve dramatic gains I bothsales and brand awareness across the country. And those are the kind of choices that are helping Samsung lead the way in more markets everywhere.
