Success in India

INTRODUCTION Background and SWOT Analysis

On March 1, 1938, founding chairman Byung-Chull Lee started a business in Taegu, Korea, with 30,000 won. At the start, his business focused primarily on trade export, selling dried Korean fish, vegetables, and fruit to Manchuria and Beijing. In little more than a decade, Samsung—which means "three stars" in Korean—would have its own flour mills and confectionery machines, its own manufacturing and sales operations, and ultimately evolve to become the modern global corporation that still bears the same name today. In the 1970s, Samsung laid the strategic foundations for its future growth by investing in the heavy, chemical, and petrochemical industries. Samsung's core technology businesses diversified and expanded globally during the late 1970s and early 1980s. The early 1990s presented tremendous challenges for high-tech businesses. In the mid-1990s, Samsung revolutionized its business through a dedication to making world-class products, providing total customer satisfaction, and being a good corporate citizen – all under the vision of 'quality first.' Despite the 1997 financial crisis that affected nearly all Korean businesses, Samsung was one of few companies that continued growing, thanks to its leadership in digital and network technologies and its steady concentration on electronics, finances, and related services. The digital age has brought revolutionary change – and opportunity – to global business, and Samsung has responded with advanced technologies, competitive products, and constant innovation. SAMSUNG AS A COMPANY

Strengths Excellent at providing outstanding leadership in products such as televisions, DVD players, microwave ovens, refrigerators, mobile phones, and fax machines. Able to make outstanding profits because of the demand of the AC. Due to traffic density and population growth the demand of the AC has increase. The company has provided better customer service by bringing together call handling and feedback on product quality. Weaknesses Through its success, the company becomes desirous. The company gave out huge discounts on subscriptions to IT (Information Technology) magazines and a free Sony music CDs. SWOT ANALYSIS: STRENGTHS AND WEAKNESSES

Opportunities Capability to produce all types of electronics such as televisions, microwaves, and washing machines. Samsung in India can easily become a market leader. Threats Arrived late in India to penetrate market sometime in This can cause competitors to block out the entering company and make market entry difficult. SWOT ANALYSIS: OPPORTUNITIES AND THREATS

ACTIONS

Samsung (A) Argues that India is not a good market for Samsung expansion. Consumer Durables Market “Rough Patch” Sluggish domestic demand Slowing global economy Slower exports Lack of spending on infrastructure Political uncertainty Samsung decides to move into the Indian market Goal: to be “one of the top three” electronics companies in India ISSUES

K.S. Kim Managing Director of Samsung’s Indian operations ( ) S.S. Lee K.S. Kim’s successor Took over as Managing Director of Samsung’s Indian operations in Heading up Samsung Electronics India Limited (SEIL) and Samsung Electronics India Information and Telecommunications (SEIIT) PERSPECTIVES

Tested Indian market with introduction of Color TVs in 1995 When that was a success, expanded range of product categories to include the majority of its global product portfolio in 1999 Growth in industrialization and the middle class lead to higher demand for air-conditioners (AC) ENTRY

Examine features and match them with the customer needs gap Focus on brand differentiation Technology Distribution After-sales service India’s customers are not “price conscious” but they are “value conscious” MARKETING STRATEGY

18 Branch Offices Over 3,900 Dealers 400 Service Centers Focus 21 Program: Linked majority of service centers with home office DISTRIBUTION AND CUSTOMER SERVICE

Global network set-up to utilize the best brains and resources that the world had to offer RESEARCH AND DEVELOPMENT

68% of components used in color televisions were from local vendors Advanced computer networking system INFORMATION TECHNOLOGY AND SUPPLY CHAIN MANAGEMENT

Samsung Hope for Children An initiative designed to help under-privileged children through e-learning centeres. Innovations for Development of the Community A partnership between Samsung and various educational and media agencies to support grassroots innovations. Hope for Culture Represents Samsung’s tribute to the rich Indian cultural heritage through Tagore Literature Awards that recognises the best literary contributions in 24 Indian regional languages. Sports Sponsorship An ongoing initiative wherein Samsung supports top ranking athletes across individual sports disciplines with their training expenses while they prepare for the Asian or the Olympic Games. Samsung is also the Sponsor of the Indian team to the forthcoming London Olympics. CORPORATE SOCIAL RESPONSIBILITY

Samsung contributed to India’s economic development with recurring investment and increased market development. Can compete with local business or can aim to expand in luxury market and aim for a higher profit margin. CONSEQUENCES

Samsung has achieved great success in the Indian market and should utilize a strategy of continuing to do exactly what they have been doing. RECOMMENDATIONS

Houses facilities for Color Televisions (including 3D, LED and LCD Televisions), Mobile Phones, Refrigerators, Washing Machines and Split Air Conditioners categories. Samsung commenced operations of its second state–of-the-art manufacturing complex at Sriperumbudur, Tamil Nadu in November Samsung India has two R&D Centers in India – at Delhi and Bangalore.While the Delhi R&D Centre develops software solutions for hi-end televisions such as Plasma TVs, LCD TVs and Digital Media Products, the Bangalore R&D Centre works on major projects for Samsung Electronics in the area of telecom, wireless terminals and infrastructure, Networking, SoC (System on Chip) Digital Printing and other multimedia/digital media as well as application software. Samsung India is a market leader in product categories like LED TVs, LCD TVs, Slim TVs and Side by Side Refrigerators. While it is the second largest mobile handset brand in India, it leads in the smart phone segment in India. Samsung India has won several awards and recognitions for both its corporate initiatives as well as its product innovations in audio visual, home appliance, IT and telecom product categories CONCLUSION: SAMSUNG INDIA TODAY

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