ES2-E Christopher Boyle Raffaele Coccuci Thierry Fornas Mi Sun Park SAMSUNG IN FRANCE Best in France case study

1 Best in France Case study OVERVIEW SAMSUNG in FRANCE, EUROPE I SAMSUNG Mobile Business in FRANCE II Constraints & Benefits in France III Adaptation to France IV Essential Advice V

2 Best in France Case study SAMSUNG in FRANCE, EUROPE  First entered the French Market as SAMSUNG Electronics France in 1988  Initially introduced home appliance products - Niche market: cheap yet of reasonable quality  Transferred to high technology products - Second largest semi-conductor producer

3 Best in France Case study SAMSUNG Mobile Business in FRANCE -1  Entered the French Mobile Market in As a gateway to the Continental European Market  Initial obstacle to market - Stereotyped as home appliances company  Partnership with France Telecom  Initial goal to change mindset - By conveying its overall image as a mobile phone provider, a dynamic enterprise and an innovator

4 Best in France Case study  Great success of “Samsung 600” - Gained market confidence on quality and model  0.7M units sold for the first year (1999) - France telecom made more profit thru partnership  In 2000, received orders amounting to $200M from France Telecom - Sold 0.5M units - Proved that a reliable product = a great-selling product SAMSUNG Mobile Business in FRANCE -2

5 Best in France Case study SAMSUNG Mobile Business in FRANCE -3  SAMSUNG = MOBILE - Introduced new models, in each of the proceeding years, with great success - Brand image as a qualified model - Maintained a partnership with France Telecom  Turning point for SAMSUNG as a whole - Much more influence with other product lines - 30% sales increase for white products - Image of innovative technology and high-end products

6 Best in France Case study Benefits in FRANCE  Labor market is efficient and qualified, one of the best in European market  Workforce ranks high in efficiency  Abundant supply of high quality workforce.  Outstanding performance due to French education policies  Tax credit policy of up to 30% for high-end technology companies

7 Best in France Case study Constraints in FRANCE  Language barrier  Working mentality - Business urgency and working overtime  Adaptation to French culture was difficult at the start - Shorter work week, more vacation time  Network infrastructure is not well-prepared - 2.5G (current) vs. 3G (required)

8 Best in France Case study Adaptation to FRANCE  Adapted corporate culture - Rented the “Hall of Mirrors” at the Chateau de Versailles for a VIP conference  Adapted French workforce - Hard-working and efficient during the working day  French market understands Samsung as a French company - 99% total turnover

9 Best in France Case study Essential Advice  Increase market penetration by maintaining high quality and product designs  Expand global presence to include the rest of Europe  Strengthen competitiveness by adding customer-oriented value to products  Enhance corporate image by global campaigns and commercials

10 Best in France Case study WE THANK SAMSUNG ELECTRONICS FRANCE 56,Quai de Dion Bouton PUTEAUX Cedex  Yong Sung Chun, Executive Sales Manager tel:  Namionne Kim, Supply Chain Manager tel:

11 Best in France Case study References    