SAMSUNG Prepared by: Xiaomeng Li Jordan Binstock Jordan Binstock Zuotao Liu Zuotao Liu Amy Thompson Amy Thompson

Company introduction Founded in 1938 Founded in 1938 Chairman Byung-Chull Lee Chairman Byung-Chull Lee 30,000 won = $25 30,000 won = $25

What does it do at first? Sell dried Korean fish, vegetables &fruit

After a decade Flour mills & confectionary machine-- -Samsung Mall Flour mills & confectionary machine-- -Samsung Mall 1969 Samsung Electronic 1969 Samsung Electronic

Historical events 1992 British color TV factory 1992 British color TV factory first time to go international! first time to go international! 1994 first subsidiary company in Japan 1994 first subsidiary company in Japan 1995 headquarters in US, Europe & China 1995 headquarters in US, Europe & China

Historical events 2005 brand value $15 billion! 2005 brand value $15 billion! world’s 20 th world’s 20 th 1 st in electronic products 1 st in electronic products

By now 30 subsidiary companies 30 subsidiary companies 300 overseas offices in 76 countries 300 overseas offices in 76 countries Samsung Corporation shoulders 21% of South Korean’s export Samsung Corporation shoulders 21% of South Korean’s export

Tough time Brand image: Brand image: Before 1993, low price & low quality Before 1993, low price & low quality 1994 microwave ovens piled over 1994 microwave ovens piled over sale! sale!

Solution Chairman Kun Hee Lee Chairman Kun Hee Lee 1. determination: crunch and burn cell phones 1. determination: crunch and burn cell phones 2. top-down strategy 2. top-down strategy 3. Wal-Mart vs. Sears 3. Wal-Mart vs. Sears

Go international Factories go to low cost countries Factories go to low cost countries Research center go to Europe Research center go to Europe

Products Cell phones Cell phones TV video & Audio TV video & Audio Computer Computer Home appliance Home appliance

Competition Variety of competing sectors Variety of competing sectors Cell phone market is most competitive Cell phone market is most competitive 5 Main producers of cell phones 5 Main producers of cell phones –Nokia –Motorola –Samsung –Sony Ericsson –LG

Nokia Located in Finland Located in Finland #1 in Worldwide sales #1 in Worldwide sales 34.97% Market Share 34.97% Market Share 348 million units in million units in % Change from % Change from 2005

Motorola US Corporation US Corporation #2 in Worldwide sales #2 in Worldwide sales 21.85% market share 21.85% market share million units sold in million units sold in % Change from % Change from 2005

Samsung South Korean South Korean #3 in Worldwide sales #3 in Worldwide sales 11.86% market share 11.86% market share 118 million units sold in million units sold in % Change from % Change from 2005

Sony Ericsson Joint venture Joint venture #4 in Worldwide sales #4 in Worldwide sales 7.49% market share 7.49% market share 74.5 million units sold in million units sold in % Change from % Change from 2005

LG Korean based Korean based #5 in Worldwide sales #5 in Worldwide sales 6.67% market share 6.67% market share 66.4 million units sold in million units sold in % Change from % Change from 2005

Market Shares

Competition Suggestions Expand Research & Development Expand Research & Development Possible Mergers / Joint Ventures Possible Mergers / Joint Ventures Globalize Market Research Globalize Market Research

Global Market

Introduction Operate in almost 100 countries. Operate in almost 100 countries. Has 229,000 employees around the world Has 229,000 employees around the world Samsung means “three stars”. Samsung means “three stars”. Slogan: imagine the possibilities Slogan: imagine the possibilities

Introduction Be an international corporation since Be an international corporation since Samsung is still too weak to compete effectively. Samsung is still too weak to compete effectively. Got support from the Korean government. Got support from the Korean government.

Introduction Focuses on five business areas : Focuses on five business areas : Digital Media Digital Media Telecommunication Network Telecommunication Network Digital Appliance Digital Appliance Semiconductor Semiconductor LCD LCD

Chinese Market China is the largest developing country. China is the largest developing country. China is also the largest population in the world. China is also the largest population in the world. 50,000 employees in China, Korean employees are less than 1, ,000 employees in China, Korean employees are less than 1,000.

Chinese Market Produced low-end TV at the beginning. Produced low-end TV at the beginning. Had no market. Quit at last. Had no market. Quit at last. Produce superb quality product. Produce superb quality product. Began to advance the digital era. Began to advance the digital era.

Chinese Market Market and brand centre in China. Market and brand centre in China. Achieve 40 billion US dollars in Achieve 40 billion US dollars in Three advantages Three advantages China is close to Korea. China is close to Korea. Has a good management system. Has a good management system. Get many supports from the corporation. Get many supports from the corporation.

American Market Become the market leader in Become the market leader in Captured the number one market share position for digital televisions. Captured the number one market share position for digital televisions. Samsung’s overall unit sales have grown 54 percent in Samsung’s overall unit sales have grown 54 percent in 2006.

American Market Four digital TV categories: Four digital TV categories: LCD LCD Plasma Plasma Micro-display Micro-display Flat Tube Flat Tube

American Market Samsung became America's choice for digital TVs in Samsung became America's choice for digital TVs in Had a significant lead on the competition. Had a significant lead on the competition. Samsung is able to bring price- competitive televisions to market while maintaining their profitability. Samsung is able to bring price- competitive televisions to market while maintaining their profitability.

Sum-up Continue to expand worldwide manufacturing and sale operations. Continue to expand worldwide manufacturing and sale operations. Ensure high customer satisfaction. Ensure high customer satisfaction. Lead the way in the digital era with its superb quality and top-notch management. Lead the way in the digital era with its superb quality and top-notch management. Continue to satisfy customers and shareholders. Continue to satisfy customers and shareholders.

Industry Analysis Three Types of Industries Three Types of Industries –Consumer Electronics –Household Appliances –Telecommunication Devices

Consumer Electronics Struggles: Struggles: –Broad range of products –Rapidly evolving products –Changes in demand

Household Appliances Consumer Differences Among Cultures Consumer Differences Among Cultures –Under-developed Countries –Developing Countries –Developed Countries

Telecommunication Devices Three Types of Consumers Three Types of Consumers –First-time Buyers –Upgraders –Repeat Buyers

CONCLUSION

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