international marketing-samsung

8/13/2019 International Marketing-samsung

1/38

22

INTRODUCTION

Samsung Electronics Co., Ltd.is a South Koreanmultinationalelectronicscompanyheadquartered in Suwon, South Korea. It is the flagship subsidiaryof the Samsung Groupand has been the world's largest information technology companyby revenues since2!. Samsung "lectronics hasassembly plantsand sales networ#s in $$ countries andemploys around %&, people. or 2(2 the )"* is Kwon *h+yun.

Samsung has previously been #nown for its position as a manufacturer of componentssuch aslithium+ion batteries, semiconductors,chips, flash memoryandhard drivedevicesfor clients such as -pple, Sony, )and/o#ia. In recent years, Samsung "lectronicshas e0panded upon its manufacturing roots and diversified into consumer mar#ets leadingto an ever increasing portfolio of products and revenue stream.

Samsung "lectronics currently stands as one of the world's largest vendors in the mobilephoneand smartphone mar#ets fueled by the popularity of itsSamsung Gala0yline ofdevices. he company is also one of the largest vendors in the tablet computermar#etthan#s to its-ndroid+powered Samsung Gala0y abcollection and is generally regardedas pioneering thephabletmar#et through the Samsung Gala0y /otefamily of devices.

Samsung has been the world's largest ma#er of1) panels since 22, theworld'slargest television manufacturersince 23, and world's largest manufacturer of mobilephones since 2((. Samsung "lectronics displaced -pple Inc. as the world's largesttechnology company in 2(( and has been a ma4or part of the "conomy of South Korea.

In 2((, Samsung was ran#ed as India's fifth most trusted brand and in 2(2, Samsungwas ran#ed as India's fourth most trusted brand by he 5rand rust 6eport, an annualreport published by rust 6esearch -dvisory. In 2(%, he 5rand rust 6eport, ran#edSamsung as India's second most trusted brand.

OPERATIONS

he company focuses on four areas7 digital media, semiconductor, telecommunicationnetwor#, and 1) digital appliances.

he digital+media business area covers computer devicessuch as laptop computers andlaser printers8 digital displays such as televisions and computer monitors8 and consumerentertainment devicessuch as9 players, :;% playersanddigital camcorders8 andhome appliancessuch as refrigerators, air conditioners, air purifiers,washers, microwaveovens, and vacuum cleaners.
http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Suwonhttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Samsunghttp://en.wikipedia.org/wiki/List_of_the_largest_information_technology_companieshttp://en.wikipedia.org/wiki/Assembly_linehttp://en.wikipedia.org/w/index.php?title=Kwon_Oh-Hyun&action=edit&redlink=1http://en.wikipedia.org/wiki/Lithium-ion_batterieshttp://en.wikipedia.org/wiki/Semiconductorshttp://en.wikipedia.org/wiki/Integrated_circuithttp://en.wikipedia.org/wiki/Flash_memoryhttp://en.wikipedia.org/wiki/Hard_disk_drivehttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/HTChttp://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Smartphonehttp://en.wikipedia.org/wiki/Samsung_Galaxyhttp://en.wikipedia.org/wiki/Tablet_computerhttp://en.wikipedia.org/wiki/Android_(operating_system)http://en.wikipedia.org/wiki/Samsung_Galaxy_Tabhttp://en.wikipedia.org/wiki/Phablethttp://en.wikipedia.org/wiki/Samsung_Galaxy_Note_serieshttp://en.wikipedia.org/wiki/LCD_panelhttp://en.wikipedia.org/wiki/Television#Sales_of_televisionshttp://en.wikipedia.org/wiki/Television#Sales_of_televisionshttp://en.wikipedia.org/wiki/Economy_of_South_Koreahttp://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/wiki/Semiconductorhttp://en.wikipedia.org/wiki/Computer_hardwarehttp://en.wikipedia.org/wiki/Laser_printerhttp://en.wikipedia.org/wiki/Digital_displayhttp://en.wikipedia.org/wiki/Consumer_entertainment_devicehttp://en.wikipedia.org/wiki/Consumer_entertainment_devicehttp://en.wikipedia.org/wiki/DVD_playerhttp://en.wikipedia.org/wiki/Portable_media_playerhttp://en.wikipedia.org/wiki/Digital_camcorderhttp://en.wikipedia.org/wiki/Home_appliancehttp://en.wikipedia.org/wiki/Air_conditionerhttp://en.wikipedia.org/wiki/Air_purifierhttp://en.wikipedia.org/wiki/Washing_machinehttp://en.wikipedia.org/wiki/Microwave_ovenhttp://en.wikipedia.org/wiki/Microwave_ovenhttp://en.wikipedia.org/wiki/Vacuum_cleanerhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Suwonhttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Samsunghttp://en.wikipedia.org/wiki/List_of_the_largest_information_technology_companieshttp://en.wikipedia.org/wiki/Assembly_linehttp://en.wikipedia.org/w/index.php?title=Kwon_Oh-Hyun&action=edit&redlink=1http://en.wikipedia.org/wiki/Lithium-ion_batterieshttp://en.wikipedia.org/wiki/Semiconductorshttp://en.wikipedia.org/wiki/Integrated_circuithttp://en.wikipedia.org/wiki/Flash_memoryhttp://en.wikipedia.org/wiki/Hard_disk_drivehttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/HTChttp://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Smartphonehttp://en.wikipedia.org/wiki/Samsung_Galaxyhttp://en.wikipedia.org/wiki/Tablet_computerhttp://en.wikipedia.org/wiki/Android_(operating_system)http://en.wikipedia.org/wiki/Samsung_Galaxy_Tabhttp://en.wikipedia.org/wiki/Phablethttp://en.wikipedia.org/wiki/Samsung_Galaxy_Note_serieshttp://en.wikipedia.org/wiki/LCD_panelhttp://en.wikipedia.org/wiki/Television#Sales_of_televisionshttp://en.wikipedia.org/wiki/Television#Sales_of_televisionshttp://en.wikipedia.org/wiki/Economy_of_South_Koreahttp://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/wiki/Semiconductorhttp://en.wikipedia.org/wiki/Computer_hardwarehttp://en.wikipedia.org/wiki/Laser_printerhttp://en.wikipedia.org/wiki/Digital_displayhttp://en.wikipedia.org/wiki/Consumer_entertainment_devicehttp://en.wikipedia.org/wiki/Consumer_entertainment_devicehttp://en.wikipedia.org/wiki/DVD_playerhttp://en.wikipedia.org/wiki/Portable_media_playerhttp://en.wikipedia.org/wiki/Digital_camcorderhttp://en.wikipedia.org/wiki/Home_appliancehttp://en.wikipedia.org/wiki/Air_conditionerhttp://en.wikipedia.org/wiki/Air_purifierhttp://en.wikipedia.org/wiki/Washing_machinehttp://en.wikipedia.org/wiki/Microwave_ovenhttp://en.wikipedia.org/wiki/Microwave_ovenhttp://en.wikipedia.org/wiki/Vacuum_cleaner


2/38

22

he semiconductor+business area includes semiconductor chips such as S6-:, S6-:,/-/flash memory8 smart cards8 mobile application processors8 mobile 9receivers86 transceivers8 ):*SImage sensors, Smart )ardI), :;% I), 98 and satellite receivers.

he 1) business area focuses on producing+1)and organic light+emitting diode=*1"> panels for laptops, des#top monitors, and televisions.

Samsung ;rint was established in 2! as a separate entity to focus on 525sales and has

released a broad range of multifunctional devicesand printers and more.

VISION STATEENT

Samsung "lectronics' vision for the new decade is to ?Inspire the @orld, )reate theuture.?

hey are committed to inspiring communities around the world by developing newtechnologies, innovative products and creative solutions. hey are also committed tocreating a brighter future by developing new value for our core networ#s7 industry,partners and employees. hrough these efforts, they hope to contribute to a better worldand a richer e0perience for all.
http://en.wikipedia.org/wiki/SDRAMhttp://en.wikipedia.org/wiki/Static_random_access_memoryhttp://en.wikipedia.org/wiki/NAND_flashhttp://en.wikipedia.org/wiki/Flash_memoryhttp://en.wikipedia.org/wiki/Smart_cardhttp://en.wikipedia.org/wiki/Mobile_application_developmenthttp://en.wikipedia.org/wiki/Mobile_TVhttp://en.wikipedia.org/wiki/CMOShttp://en.wikipedia.org/wiki/Smart_Cardhttp://en.wikipedia.org/wiki/Integrated_circuithttp://en.wikipedia.org/wiki/Data_storage_devicehttp://en.wikipedia.org/wiki/Optical_disc_drivehttp://en.wikipedia.org/wiki/Optical_disc_drivehttp://en.wikipedia.org/wiki/Hard_disk_drivehttp://en.wikipedia.org/wiki/DSLAMhttp://en.wikipedia.org/wiki/Faxhttp://en.wikipedia.org/wiki/Cellular_devicehttp://en.wikipedia.org/w/index.php?title=Mobile_intelligent_terminal&action=edit&redlink=1http://en.wikipedia.org/wiki/Receiver_(radio)http://en.wikipedia.org/wiki/Thin_film_transistor_liquid_crystal_displayhttp://en.wikipedia.org/wiki/Organic_light-emitting_diodehttp://en.wikipedia.org/wiki/Business-to-businesshttp://en.wikipedia.org/wiki/Multifunctional_devicehttp://en.wikipedia.org/wiki/SDRAMhttp://en.wikipedia.org/wiki/Static_random_access_memoryhttp://en.wikipedia.org/wiki/NAND_flashhttp://en.wikipedia.org/wiki/Flash_memoryhttp://en.wikipedia.org/wiki/Smart_cardhttp://en.wikipedia.org/wiki/Mobile_application_developmenthttp://en.wikipedia.org/wiki/Mobile_TVhttp://en.wikipedia.org/wiki/CMOShttp://en.wikipedia.org/wiki/Smart_Cardhttp://en.wikipedia.org/wiki/Integrated_circuithttp://en.wikipedia.org/wiki/Data_storage_devicehttp://en.wikipedia.org/wiki/Optical_disc_drivehttp://en.wikipedia.org/wiki/Optical_disc_drivehttp://en.wikipedia.org/wiki/Hard_disk_drivehttp://en.wikipedia.org/wiki/DSLAMhttp://en.wikipedia.org/wiki/Faxhttp://en.wikipedia.org/wiki/Cellular_devicehttp://en.wikipedia.org/w/index.php?title=Mobile_intelligent_terminal&action=edit&redlink=1http://en.wikipedia.org/wiki/Receiver_(radio)http://en.wikipedia.org/wiki/Thin_film_transistor_liquid_crystal_displayhttp://en.wikipedia.org/wiki/Organic_light-emitting_diodehttp://en.wikipedia.org/wiki/Business-to-businesshttp://en.wikipedia.org/wiki/Multifunctional_device


3/38

22

-s part of their new vision, they have mapped out a specific plan of reaching AB billionin revenue and becoming one of the worldCs top five brands by 22. o this end, theyhave also established three strategic approaches in our management7 creativity,partnership and talent.

hey are e0cited about the future. -s they build on our previous accomplishments, theyloo# forward to e0ploring new territories, including health, medicine and biotechnology.hey are committed to being a creative leader in new mar#ets and becoming a truly /o. (business going forward.

T!E SASUN" P!ILOSOP!#


4/38

22

-t Samsung, they follow a simple business philosophy7 to devote their talent andtechnology to creating superior products and services that contribute to a better globalsociety.

"very day, their people bring this philosophy to life. heir leaders search for the brightest

talent from around the world and give them the resources they need to be the best at whatthey do. he result is that all of our productsDfrom memory chips that help businessesstore vital #nowledge to mobile phones that connect people across continentsD have thepower to enrich lives. -nd thatCs what ma#ing a better global society is all about.

Values

hey believe that living by strong values is the #ey to good business. hatCs why thesecore values, along with a rigorous code of conduct, are at the heart of every decision theyma#e.

People

Euite simply, a company is its people. -t Samsung, they are dedicated to giving itspeople a wealth of opportunities to reach their full potential.

Excellence

"verything they do at Samsung is driven by an unyielding passion for e0cellenceDand anunfaltering commitment to develop the best products and services on the mar#et.

Change

In todayCs fast+paced global economy, change is constant and innovation is critical to acompanyCs survival. -s they have done for & years, they set their sights on the future,anticipating mar#et needs and demands so they can steer the company toward long+termsuccess.

Integrity

*perating in an ethical way is the foundation of our business. "verything they do isguided by a moral compass that ensures fairness, respect for all sta#eholders and

complete transparency.


5/38

22

Co-prosperity

- business cannot be successful unless it creates prosperity and opportunity for others.Samsung is dedicated to being a socially and environmentally responsible corporatecitiFen in every community where we operate around the globe.

ANA"EENT AND $OARD O%

DIRECTORS

)hief e0ecutive officer, 9ice chairman7 C&oi "ee'Sung

)hief financial officer7 ;resident #oon (u'&)a

)hief operating officer, ;resident7 Lee (ae'#ong

he following are the names of board of directors members7

"ee'Sung C&oi 9ice chairman, ;resident and chief e0ecutive officer

(u'!)a #oon )hief financial officer

Dong'in

#oon

Independent director =-ttorney at 1aw, Kim )hang>

C&ae'*oong

Lee

Independent director =;rofessor of "conomics,Sung#yun#wan Hniversity>

In'!o Lee Independent director =-dvisor,Shinhan 5an#>O&'Soo Par+ Independent director =;rofessor of 5usiness -dministration,Seoul /ational

Hniversity>

!ISTOR#-- TO -/0 ' EARL# #EARS

Samsung "lectric Industries was established as a subsidiary of Samsung Groupin (!3! inSuwon, South Korea. Its early products were electronic and electrical appliances
http://en.wikipedia.org/wiki/Sungkyunkwan_Universityhttp://en.wikipedia.org/wiki/Sungkyunkwan_Universityhttp://en.wikipedia.org/wiki/Shinhan_Bankhttp://en.wikipedia.org/wiki/Shinhan_Bankhttp://en.wikipedia.org/wiki/Seoul_National_Universityhttp://en.wikipedia.org/wiki/Seoul_National_Universityhttp://en.wikipedia.org/wiki/Seoul_National_Universityhttp://en.wikipedia.org/wiki/Samsung_Grouphttp://en.wikipedia.org/wiki/Suwonhttp://en.wikipedia.org/wiki/Sungkyunkwan_Universityhttp://en.wikipedia.org/wiki/Shinhan_Bankhttp://en.wikipedia.org/wiki/Seoul_National_Universityhttp://en.wikipedia.org/wiki/Seoul_National_Universityhttp://en.wikipedia.org/wiki/Samsung_Grouphttp://en.wikipedia.org/wiki/Suwon


6/38

22

including televisions, calculators, refrigerators, air conditioners and washing machines. In(!&, Samsung Group established another subsidiary, Samsung+/"), 4ointly with apan's/") )orporationto manufacture home appliancesandaudiovisual devices. In (!&B, thegroup e0panded into the semiconductorbusiness by acquiring Korea Semiconductor, oneof the first chip+ma#ing facilities in the country at the time. he acquisition of Korea

elecommunications, an electronic switching system producer, was completed at the startof the ne0t decade in (!$.

5y (!$(, Samsung "lectric Industries had manufactured over ( millionblac#+and+whitetelevisions. In ebruary (!$%, Samsung's founder, 1ee 5yung+chull,made anannouncement later dubbed the ?o#yo declaration,? in which he declared that Samsungintended to become a 6-:=dynamic random access memory> vendor. *ne year later,Samsung became the third company in the world to develop a 3B#b6-:. In (!$$,Samsung "lectric Industries merged with Samsung Semiconductor )ommunications toform Samsung "lectronics.

-//'--1 ' CONSUER STRU""LES

Samsung "lectronics launched its first mobile phone in (!$$, in the South Koreanmar#et. Sales were initially poor and by the early (!!s :otorola held a mar#et share ofover 3 percent in the country's mobile phone mar#et compared to 4ust ( percent forSamsung. Samsung's mobile phone division also struggled with poor quality and inferiorproducts until the mid+(!!s and e0it from the sector was a frequent topic of discussionwithin the company.

Samsung "lectronics acquired a B percent sta#e in -S 6esearch, a Hnited States+basedpersonal computer ma#er, for HSA%&$ million in ebruary (!!J.

--1'233/ ' COPONENT ANU%ACTURIN"

It was decided that by 1ee un Kee that Samsung needed to change strategy. hecompany shelved the production of many under+selling product lines and instead pursueda process of designing and manufacturing components and investing in new technologiesfor other companies. It was hoped in this way Samsung would gain an understanding ofhow products are made and give a technological lead sometime in the future. his patientvertical integrationstrategy of manufacturing components has borne fruit for Samsung inthe late+2s.

-s Samsung shifted away from consumer mar#ets, the company devised a plan tosponsor ma4or sporting events to remain in the public eye. *ne such sponsorship was forthe (!!$ @inter *lympicsheld in/agano,apan.
http://en.wikipedia.org/wiki/NEChttp://en.wikipedia.org/wiki/Home_applianceshttp://en.wikipedia.org/wiki/Professional_audiovisual_industryhttp://en.wikipedia.org/wiki/Semiconductorhttp://en.wikipedia.org/wiki/Black_and_white_televisionhttp://en.wikipedia.org/wiki/Black_and_white_televisionhttp://en.wikipedia.org/wiki/Lee_Byung-chullhttp://en.wikipedia.org/wiki/DRAMhttp://en.wikipedia.org/wiki/Kilobithttp://en.wikipedia.org/wiki/Vertical_integrationhttp://en.wikipedia.org/wiki/1998_Winter_Olympicshttp://en.wikipedia.org/wiki/Naganohttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/NEChttp://en.wikipedia.org/wiki/Home_applianceshttp://en.wikipedia.org/wiki/Professional_audiovisual_industryhttp://en.wikipedia.org/wiki/Semiconductorhttp://en.wikipedia.org/wiki/Black_and_white_televisionhttp://en.wikipedia.org/wiki/Black_and_white_televisionhttp://en.wikipedia.org/wiki/Lee_Byung-chullhttp://en.wikipedia.org/wiki/DRAMhttp://en.wikipedia.org/wiki/Kilobithttp://en.wikipedia.org/wiki/Vertical_integrationhttp://en.wikipedia.org/wiki/1998_Winter_Olympicshttp://en.wikipedia.org/wiki/Naganohttp://en.wikipedia.org/wiki/Japan


7/38

22

-s a chaebol, Samsung Group wielded wealth that allowed the company to invest anddevelop new technology rather than build products at a level which would not have adetrimental impact on Samsung's finances.

Samsung had a number of technological brea#throughs particularly in the field of

memory which are commonplace in most electrical products today. his includes theworld's first 3B:b 6-: in (!!2, 2J3 6-: in (!!B, (Gb 6-: in (!!3. In 2B,Samsung developed the world's first $Gb/-/ :emory chip and a manufacturing dealwas struc# with -pple in 2J. - deal to supply -pple for memory chips was struc# in2J and Samsung remains a #ey supplier of -pple components. owever the Samsung+-pple relationship has soured following Samsung's emergence in the consumer mar#et.

233/ TO PRESENT ' CONSUER PRODUCTS

or four consecutive years, from 2 to 2%, Samsung posted net earningshigher thanfive+percent8 this was at a time when (3 out of the % top South Korean companies ceased

operating in the wa#e of the unprecedented crisis.

In 2J, Samsung "lectronics surpassed apanese rival, Sony, for the first time to becomethe world's twentieth+largest and most popular consumer brand, as measured byInterbrand.

In 2&, Samsung "lectronics became the world's second+largest mobile+phonema#er,overta#ing :otorola for the first time. In 2!, Samsung achieved total revenues ofHSA((&.B billion, overta#ing ewlett+;ac#ard to become the world's largest technologycompany measured by sales.

In 2! and 2(, the HS and "H fined the company, together with eight other memorychip ma#ers, for its part in a price+fi0ing scheme that occurred between (!!! and 22.*ther companies fined included Infineon echnologies,"lpida :emoryand:icronechnology. In ecember 2(, the "H granted immunityto Samsung "lectronics foracting as an informantduring the investigation =1G isplay, -H *ptronics, )himeiInno1u0, )hunghwa ;icture ubes and annStar isplay were implicated as result of thecompany's intelligence>.

espite consistent growth, Samsung, along with its chairman 1ee Kun+hee, hasdeveloped a reputation for insecurity regarding its financial stability and the potential forfuture crises to arise. -fter returning from a temporary retirement period in :arch 2(,

Kun+hee stated that ?Samsung "lectronics' future is not guaranteed because most of ourflagship products will be obsolete in ( years from now.?

Samsung has emphasiFed innovation in its management strategy since the early 2sand it again highlighted innovation as part of core strategies when it announced the9ision 22 in which the company set an ambitious goal of reaching AB billion in
http://en.wikipedia.org/w/index.php?title=NAND_Memory&action=edit&redlink=1http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/Interbrandhttp://en.wikipedia.org/wiki/Mobile_phone#Markethttp://en.wikipedia.org/wiki/Infineon_Technologieshttp://en.wikipedia.org/wiki/Elpida_Memoryhttp://en.wikipedia.org/wiki/Micron_Technologyhttp://en.wikipedia.org/wiki/Micron_Technologyhttp://en.wikipedia.org/wiki/Immunity_from_prosecutionhttp://en.wikipedia.org/wiki/Informanthttp://en.wikipedia.org/w/index.php?title=NAND_Memory&action=edit&redlink=1http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/Interbrandhttp://en.wikipedia.org/wiki/Mobile_phone#Markethttp://en.wikipedia.org/wiki/Infineon_Technologieshttp://en.wikipedia.org/wiki/Elpida_Memoryhttp://en.wikipedia.org/wiki/Micron_Technologyhttp://en.wikipedia.org/wiki/Micron_Technologyhttp://en.wikipedia.org/wiki/Immunity_from_prosecutionhttp://en.wikipedia.org/wiki/Informant


8/38

22

annual revenues within ten years. In order to cement its leadership in the areas of memorychip and television production, the company has invested aggressively in research anddevelopment. he company has 2B research+and+development centers around the world.

In -pril 2((, Samsung "lectronics sold its commercial operations to Seagate

echnologyfor appro0imately HSA(.B billion. he payment was composed of BJ.2million Seagate shares =!.3 percent of shares>, worth HSA3$&.J million, and a cash sumfor the remainder.

In the first quarter of 2(2, the company became the highest+selling mobile phonecompany when it overtoo# /o#ia, selling !%.J million units compared to /o#ia's $2.&million units. Samsung also became the largest smartphone vendor as a result of strongsales of its Gala0y SII and Gala0y /ote devices.

In :ay 2(%, Samsung announced that it had finally managed to test speed+enhancedfifth generation=1"> technology successfully.

In -pril 2(%, Samsung "lectronics' new Gala0y S smartphone the Gala0y SB was madeavailable for retail. 6eleased as the upgrade of the best+selling Gala0y S III, the SB wassold in some international mar#ets with the companyCs "0ynos processor.

In uly 2(%, Samsung "lectronics forecasted wea#er than e0pected profits for its -pril toune quarter. @hile analysts e0pected around (.( trillion won, Samsung "lectronicsestimated an operating profit of !.J trillion won =A$.% billion>. uring the same month,Samsung acquired the media streaming device manufacturer 5o0ee for a reported A%million.

*n -ugust J, 2(%, invitations were received for the ?Samsung Hnpac#ed 2(% "pisode2? event on September B, 2(% in 5erlin, Germany during the annual I- conference.@hile the invitation does not present any details of the event, industry figures stated thatthe launch of the Gala0y /ote III device is e0pected, as Samsung used the 2(2 I-conference to launch the Gala0y /ote II.
http://en.wikipedia.org/wiki/Hard_disk_drivehttp://en.wikipedia.org/wiki/Seagate_Technologyhttp://en.wikipedia.org/wiki/Seagate_Technologyhttp://en.wikipedia.org/wiki/Hard_disk_drivehttp://en.wikipedia.org/wiki/Seagate_Technologyhttp://en.wikipedia.org/wiki/Seagate_Technology


9/38

22

SASUN" AR4ETIN" I5

PRODUCT STRATE"#

LCD AND LED PANELS

5y 2B Samsung was the world's+largest manufacturer of *1"s, with a B percentmar#et share worldwide, and as of 2( has a !$ share of the global -:*1"mar#et. he company generated A(.2 million out of the total AB&J million revenues inthe global *1" mar#et in 23. -s of 23, it held more than 3 -merican patentsand more than 2,$ international patents, ma#ing it the largest owner of -:*1"technology patents.L

Samsung's current -:*1"smartphones use its Super -:*1"trademar#, with theSamsung @ave S$JandSamsung i! Gala0y Sbeing launched in une 2(. Inanuary 2((, it announced its Super -:*1" ;lus displays which offer severaladvances over the older Super -:*1"displays M real stripe matri0 =J percent moresub pi0els>, thinner form factor, brighter image and an ($ percent reduction in energyconsumption.

In *ctober 2&, Samsung introducing a ten+millimeter thic#, B+inch 1) televisionpanel, followed in *ctober 2$ by the world's first &.!+mm panel. Samsung developedpanels for 2B+inch 1) monitors =%.J mm> and (2.(+inch laptops =(.3B mm>. In 2!,Samsung succeeded in developing a panel for forty+inch 1" televisions, with a
http://en.wikipedia.org/wiki/AMOLEDhttp://en.wikipedia.org/wiki/AMOLEDhttp://en.wikipedia.org/wiki/Samsung_Electronics#cite_note-findarticles.com-48http://en.wikipedia.org/wiki/AMOLEDhttp://en.wikipedia.org/wiki/Super_AMOLEDhttp://en.wikipedia.org/wiki/Samsung_Wave_S8500http://en.wikipedia.org/wiki/Samsung_i9000_Galaxy_Shttp://en.wikipedia.org/wiki/Super_AMOLEDhttp://en.wikipedia.org/wiki/AMOLEDhttp://en.wikipedia.org/wiki/AMOLEDhttp://en.wikipedia.org/wiki/Samsung_Electronics#cite_note-findarticles.com-48http://en.wikipedia.org/wiki/AMOLEDhttp://en.wikipedia.org/wiki/Super_AMOLEDhttp://en.wikipedia.org/wiki/Samsung_Wave_S8500http://en.wikipedia.org/wiki/Samsung_i9000_Galaxy_Shttp://en.wikipedia.org/wiki/Super_AMOLED


10/38

22

thic#ness of %.! millimeters =.(J inch>. ubbed the ?/eedle Slim?, the panel is as thic#=or thin> as two coins put together. his is about a twelfth of the conventional 1) panelwhose thic#ness is appro0imately J millimeters =(.!& inches>.

@hile reducing the thic#ness substantially, the company could maintain the performance

as before, including full resolution, (2 F refresh rate, and J7( contrast ratio.

O$ILE P!ONES

Samsung's flagship mobile handset line is theSamsung Gala0y S, which many consider adirect competitor of the -pple i;hone. It was initially launched in Singapore, :alaysiaand South Korea in une 2(, followed by the Hnited States in uly. It sold more thanone million units within the first BJ days on sale in the Hnited States.

he company's I! Gala0y S and S$J @ave smartphones were the winners of the2( "uropean "IS- -wards in the smartphone and social media phone categories. heI! Gala0y S was recogniFed for its superior+quality screen and e0cellent connectivitywhile the S$J @ave for its 5ada operating system with unparalleled social networ#ingand location+based services.

@hile many other handset ma#ers tend to focus on supporting one =or at most two>operating system, Samsung has #ept supporting a wide range of operating systems in themar#et. -lthough the Gala0y S adopts Google -ndroid as the operating system8 Samsungalso supports other competing operating systems such as Symbian, @indows ;hone,

1inu0+based1i:o, and Samsung's proprietary 5ada.

Samsung sold 2%J million mobile handsets in the year 2!. -t the end of the thirdquarter of 2(, the company had surpassed the & million unit mar# in shipped phones,giving it a global mar#etshare of 22 percent, trailing/o#iaby (2 percent. *verall, thecompany sold 2$ million mobile phones in 2(, corresponding to a mar#et share of2.2 percent. ;artially owing to strong sales of the Samsung Gala0yrange ofsmartphones, the company overtoo# -pple in worldwide smartphone sales during thethird quarter 2((, with a total mar#et share of 2%.$ percent, compared to -pple's (B.3+percent share. Samsung became the world's largest cellphone ma#er in 2(2, with thesales of !J million smart phones in the first quarter.

SEI CONDUCTORS

Samsung "lectronics has been the world's+largest memory chip ma#er since (!!%. In2! it started mass+producing % nm+class /-/ flash memories. It succeeded in 2(
http://en.wikipedia.org/wiki/Samsung_Galaxy_Shttp://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/Location-based_servicehttp://en.wikipedia.org/wiki/Symbianhttp://en.wikipedia.org/wiki/Windows_Phonehttp://en.wikipedia.org/wiki/LiMo_Platformhttp://en.wikipedia.org/wiki/Bada_(operating_system)http://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Samsung_Galaxyhttp://en.wikipedia.org/wiki/Samsung_Galaxy_Shttp://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/Location-based_servicehttp://en.wikipedia.org/wiki/Symbianhttp://en.wikipedia.org/wiki/Windows_Phonehttp://en.wikipedia.org/wiki/LiMo_Platformhttp://en.wikipedia.org/wiki/Bada_(operating_system)http://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Samsung_Galaxy


11/38

22

in mass+producing % nm+class 6-:s and 2 nm+class /-/ flashes, both of whichwere the first time in the world.

-ccording to mar#et+research firm Gartner, during the second quarter of 2( Samsung"lectronics too# the top position in the 6-: segment due to bris# sales of the item on

the world mar#et. Gartner analysts said in their report, ?Samsung cemented its leadingposition by ta#ing a %J+percent mar#et share. -ll the other suppliers had minimal changein their shares.? he company too# the top slot in the ran#ing, followed by yni0, "lpida,and :icron, said Gartner.

-nother hitherto not+well+publiciFed area where the company had significant business infor years is thefoundrysegment. It had begun investment in the foundry business since23 and now positioned it as one of the strategic pillars for semiconductor growth.

In 2(, mar#et researcher I) Insights predicted that Samsung would become theworld's+biggest semiconductor chip supplier by 2(B, surpassingIntel. or the ten+year

period from (!!! to 2!, Samsung's compound annual growth rate in semiconductorrevenues has been (%.J percent, compared with %.B percent for Intel

TELEVISIONS

In 2!, Samsung sold around %( million flat+panel televisions, enabling to it to maintainthe world's largest mar#et share for a fourth consecutive year.

Samsung launched its first full % 1" television in :arch 2(. Samsung hadshowcased the product at the 2( International )onsumer "lectronics Show =)"S 2(>held in 1as 9egas.

Samsung sold more than one million % televisions within si0 months of its launch. hisis the figure close to what many mar#et researchers forecast for the year's worldwide %television sales =(.2% million units>. It also debuted the % ome heater =+)3!J@>that allows the user to en4oy % image and surround sound at the same time. @ith thelaunch of % ome heater, Samsung became the first company in the industry to havethe full line of % offerings, including % television, % 5lu+ray player, % content, and% glasses.

In 2&, Samsung introduced theInternet 9, enabling the viewer to receive informationfrom the Internet while at the same time watching conventional television programming.

Samsung later developed ?Smart 1" 9? =now renamed to ?Samsung Smart 9?>,which additionally supports downloadedapps. In 2$, the company launched the ;owerInfolin# service, followed in 2! by a whole new InternetN9. In 2(, it startedmar#eting the % television while unveiling the upgraded InternetN9 2(, whichoffers free =or for+fee> download of applications from its Samsung -pps store, in additionto e0isting services such as news, weather, stoc# mar#et, Oouube videos, and movies.
http://en.wikipedia.org/wiki/Foundry_modelhttp://en.wikipedia.org/wiki/Intelhttp://en.wikipedia.org/wiki/Internet_TVhttp://en.wikipedia.org/wiki/Smart_TVhttp://en.wikipedia.org/wiki/Application_softwarehttp://en.wikipedia.org/wiki/Foundry_modelhttp://en.wikipedia.org/wiki/Intelhttp://en.wikipedia.org/wiki/Internet_TVhttp://en.wikipedia.org/wiki/Smart_TVhttp://en.wikipedia.org/wiki/Application_software


12/38

22

Samsung -pps offers for+fee premium services in a few countries including Korea andthe Hnited States. he services will be custom+tailored for each region. Samsung plans tooffer family+oriented applications such as health care programs and digital picture framesas well as games. Samsung's range of Smart 9s include the appsI9 ;layer and motioncontrolled -ngry 5irds.

OT!ER PRODUCTS

Samsung produces printers for both consumers and business use, including mono+laserprinters, color laser printers, multifunction printers,and enterprise+use high+speed digitalmultifunction printer models.

In 2(, the company introduced a number of energy efficient products, including thelaptop 6J$, netboo# /2(, the world's+smallest mono+laser printer :1+(33, and colorlaser multifunction printer )1P+%($J.

Samsung has introduced several models ofdigital camerasand camcordersincluding the@5JJ camera, the SJJ dual+1)+mounted camera, and the :P+(3 =3BG5SS+mounted full camcorder>. In 2!, the company too# the third place in thecompact camera segment. Since then, the company has focused more on higher+priceditems. In 2(, the company launched the /P(, the ne0t+generation interchangeablelens camera.

In the area of storage media, in 2! Samsung achieved a ten percent world mar#et share,driven by the introduction of a new hard dis# drivecapable of storing 2JGb per 2.J+inchdis#. In 2(, the company started mar#eting the %2Gb+per+dis# , the largest in the

industry. In addition, it was focusing more on selling e0ternal hard dis# drives. ollowingfinancial losses, the hard dis# division was sold to Seagate in 2((.

In the :;% player segment, Samsung has launched products including the :( :;%player, and the world's+smallestivP :;% player 6(.

AR4ET S!ARE O% T!E PRODUCTS IN

INDIA
http://en.wikipedia.org/wiki/ITV_Playerhttp://en.wikipedia.org/wiki/Angry_Birdshttp://en.wikipedia.org/wiki/Multifunction_printerhttp://en.wikipedia.org/wiki/Digital_camerahttp://en.wikipedia.org/wiki/Camcorderhttp://en.wikipedia.org/wiki/Storage_mediahttp://en.wikipedia.org/wiki/Hard_disk_drivehttp://en.wikipedia.org/wiki/DivXhttp://en.wikipedia.org/wiki/ITV_Playerhttp://en.wikipedia.org/wiki/Angry_Birdshttp://en.wikipedia.org/wiki/Multifunction_printerhttp://en.wikipedia.org/wiki/Digital_camerahttp://en.wikipedia.org/wiki/Camcorderhttp://en.wikipedia.org/wiki/Storage_mediahttp://en.wikipedia.org/wiki/Hard_disk_drivehttp://en.wikipedia.org/wiki/DivX


13/38

22

)olour elevision forms % share of the sales volume.

6efrigerators -ir )onditioners together form % share of sales volume.

PRICIN" STRATE"#

Samsung uses the following ;ricing strategies 7+

ocus on cost+cutting measures.


14/38

22

/ot offer any discount and e0change offers.

i0ed mar#et operating pricing=:o;>

/ever been a price warrior.

COPARISON O% SASUN" *IT! OT!ER

$RANDS

Samsung Others

MOBILE PHONES:-

GSM 2599-39,499 2,!!-45,!!!

"Samsung #s $%%&e ,H'(,S)n* +%era,N)a,M.r)ma/,et.0

'1, 1IEO $IO

"Samsung #s S)n* Bra#a, Panas)n. 1erra an L6G60

'1:-

Pr)7e.t)n '1

L( Pr)7e.t)n '1 89,!!!- !9,!!! 9,99!-99,99!

&at Pane&P&asma 285,!!!- 9,!,!!! 2,95,!!!-;,5!,!!!

L( '1- 59,99!- 285,!!! ;5,!!!-,89,9!!

&at '1

29 n.hes- 9,99!- 3,99! 2!,29!-3;,99!

2 n.hes- ,99!- ;,89! 9,9!-,99!

()n#ent)na& '1

2 n.hes- 349! ;,99!-,99!

2! n.hes- ;89!- 99! ;,9!-,9!

1 P&a*er:- 3,99! 5,!!! 3,99!-4,99!"Samsung #s S)n*,LG,1e).)n an Panas)n.0

$u):-

"Samsung #s S)n*,LG,1e).)n,Ph&%s an Panas)n.0


15/38

22

1( S*stem - 9,9!!- 28,99! ,5!!-28,99!

1 S*stem - 8,2!!- 25,99! 3,99!-29,99!

H)me 'heater: - 2,99!- 8,!!! 5,99!-9,99!

In


16/38

22

PLACE AND DISTIRU$TION STRATE"#

CUSTOER AR4ETIN" C!ANNELS

)hannel ( 7 :anufacturer )onsumer

)hannel 2 7 :anufacturer 6etailer )onsumer

)hannel % 7 :anufacturer@holesaler6etailer)onsumer

)hannel B 7 :anufacturer@holesalerobber 6etailer)onsumer

C!ANNEL DESI"N DECISIONS

-nalysing )onsumer Service /eeds .

Setting the channel ob4ectives and constraints.


17/38

22

Identifying ma4or alternatives.

"valuating the ma4or alternatives.

esigning distribution channel.

PLACE DECISIONS

here are three types of decisions that can be ta#en with regards to the place where the

products will be available 7+

-vailable everywhere

Selective

"0clusive

DISTRI$UTION S#STE

Q *ne level channel

Q wo level channelQ Shop+in+shop

Q "0clusive Showrooms

Q Sales and Service networ# all+over the world.

DISTRI$UTION NET*OR4

Original Equipment Manufacturer/Vendor or Supplier

Factory


18/38

22

Regional Distribution Centre ranc! "are!ouse

Distributor Direct

Modern

Dealer

Retail /

Sub#Dealer

E$clusi%e

Stores and

Consumer Samsung

Digital &la'a

PROOTION STRATE"#

6 PRINT EDIA ADVERTISIN"

Samsung has e0tensively been using ;rint :edia -dvertising as means of its

;romotional Strategy.


19/38

22

Samsung has used /ewspapers , :agaFines and 5illboards e0tensively to advertise its

products, both new as well as e0isting products bt way of offers,sales,etc.

26 TELEVISION ADVERTISIN"

Samsung has e0tensively been using elevision -dvertising as means of its

;romotional Strategy.

Smart, sensible and innovative advertising has been helping it gain mass acceptance

and consumers all over the world.


20/38

22

-lso, the approach of advertising as per the different cultures of different countries has

helped it immensely.

76 INTERNET ADVERTISIN"Internet as a medium has been very important for Samsung for advertising itsconsumer durables.

hrough its pages on -)"5**K,@I"6,*6KH,etc it has been able to guide

the consumers about the various products and its uses. -lso, the S-:SH/G website has

been useful in education the consumers in a similar manner about its products.

-lso, Samsung products are e0tensively sold on websites li#e

-maFon,lip#art,"bay,etc. which helps the consumers in obtaining the products directly

at home rather than goin to the Samsung Store.

86 OT!ER T#PES O% ADVERTISIN"

*fficial Sponsor7

(> 9ancouver 2( ;aralympics @inter Games.

2> Samsung )up.

%> )helsea ootball )lub.

B> Sydney 6oosters.

J> /-S)-6 /e0tel )up.

3> rench ;eopleCs 5aseball eam.

&> e0as :otor Speedway.


21/38

22


22/38

22

5rand -mbassadors in India7 (> -amir Khan +R Samsung :obile.

2> ;riyan#a )hopra +R Samsung )onsumer urables

%> -bhinav 5indra +R Samsung )onsumer "lectronics

16SALES PROOTION IN INDIA Samsung has various iwali, usshera, oli, Ganesha and 6epublic ay *ffers

available to )onsumers.


23/38

22

6POINT O% SALE

;oint of ;urchase ;romotion ie ;romotional offers at the Samsung Showrooms itself.Hse of electronic billboards,danglers,etc


24/38

22

06 RURAL PROOTION 9IN INDIA6

Samsung has not only tried catering to the Hrban population, but also the 6uralmasses.

Challenges:

"lectricity Shortage.

-cute @ater Shortage. ;oor ransportation availability.

)onsumer inance *ptions.


25/38

22

1iteracy rate.

)ulture and traditions.

6ural reach.

oo many languages and dialects.

Rural Promotional Strategies:

aat or wee#ly mar#ets

:elas =2J, melas8 &.3la#hs visits annually>

@all paintings

)ustomer contacts =home+to+home>

9an campaigns

"vent management.

S*OT ANAL#SIS

STREN"T!S

(> (Service =)ustomer Satisfaction !&>.

2> ;remium brand image positioning.

%> igh+end echnology.

B> )ultural identity.

J> Innovative and fashionable design.

3> 9arious #ind of products.

&> Solid domestic mar#et.

*EA4NESSES


26/38

22

(> igh ;rice.

2> Insufficient distribution channel.

%> he core technologiesC high dependency on foreign country

= igh 6oyalty>

B> @ea# cost competitive power.

J> 1ac# of patent possession.

OPPURTUNITIES

(> 1G down fall during the year.

2> "0plosive increasing demand.%> Indian mass mar#et.

B> 6egional mar#et activation due to the decentraliFation .

J> @orld cup< -sian game .

3> HtiliFation of local 6 centers

T!REATS

(> Godre4 comes with full product line.


27/38

22

2> Investing in core technologies.

%> Strong requirement for transforming of technologies.

B> "merging native companies.

RELATIONS!IP *IT! APPLE INC.

espite recent litigation activity, Samsung and -pple have been described as frenemieswho share a love+hate relationship. Samsung is a ma4or supplier for -pple + first

providing memory for the early i;od devices in 2J, and -pple is a #ey customer forSamsung + in 2(2 its component sales were thought to be worth in the region of A$billion revenue to Samsung+ to the point where -pple )"* im )oo# originally opposedlitigation against Samsungwary of the company's critical component supply chain for-pple.

In -pril 2((, -pple Inc.announced that they were suing Samsung over the design of itsGala0y range of mobile phones. he lawsuit was filed on (J -pril 2(( and alleges thatSamsung infringed on -pple's trademar#s and patents of the i;hone and i;ad. Samsungissued a counterclaimagainst -pple ofpatent infringement. In -ugust 2((, at he6egional )ourt of Tsseldorf, -pple were granted apreliminary in4unctionagainst the

sale and mar#eting of the Samsung Gala0y ab (.(across the whole of "uropee0cluding the /etherlands. he ban has been temporarily lifted in the "uropean Hnion,with the e0clusion of Germany, whilst it is investigated whether or not the originalin4unction was appropriate.
http://en.wikipedia.org/wiki/Frenemyhttp://en.wikipedia.org/wiki/Apple_Inc._v._Samsung_Electronics_Co.,_Ltd.http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/IPadhttp://en.wikipedia.org/wiki/Counterclaimhttp://en.wikipedia.org/wiki/Patent_infringementhttp://en.wikipedia.org/wiki/Preliminary_injunctionhttp://en.wikipedia.org/wiki/Samsung_Galaxy_Tab_10.1http://en.wikipedia.org/wiki/Frenemyhttp://en.wikipedia.org/wiki/Apple_Inc._v._Samsung_Electronics_Co.,_Ltd.http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/IPadhttp://en.wikipedia.org/wiki/Counterclaimhttp://en.wikipedia.org/wiki/Patent_infringementhttp://en.wikipedia.org/wiki/Preliminary_injunctionhttp://en.wikipedia.org/wiki/Samsung_Galaxy_Tab_10.1


28/38

22

*n -ugust %(, 2(2, theo#yo istrict )ourtruled Samsung "lectronics' mobile devicesdid not violate an -pple Inc. patent. he case only addressed -pple's patent that allowsmobile devices and personal computers to synchroniFe or share data with each other andis not comparable with the H.S. court case ruled on 2B -ugust. *n *ctober ($, 2(2,H.K. igh )ourtruled that Samsung did not infringe -pple's design patents. -pple was

forced to issue a court+ordered apology to Samsung on its official H.K. website.

ENVIRONENTAL RECORD

-ll Samsung mobile phones and :;% players introduced on the mar#et after -pril 2(are free from polyvinyl chloride =;9)> and brominated flame retardants =56s>.

he company is listed inGreenpeace's Guide to Greener "lectronics, which rateselectronics companies on policies and practices to reduce their impact on the climate,produce greener products, and ma#e their operations more sustainable. In /ovember2(( Samsung was ran#ed &th out of (J leading electronics ma#ers with a score of

B.( but scored ma0imum points for providing verified data and itsgreenhouse gas emissions and also scored well for its Sustainable *perations with theguide praising its relatively good e+waste ta#e+bac# programme and information.owever, the company was criticiFed for not setting an ambitious target to increase its
http://en.wikipedia.org/wiki/Tokyo_District_Courthttp://en.wikipedia.org/wiki/High_Court_of_Justicehttp://en.wikipedia.org/wiki/Greenpeacehttp://en.wikipedia.org/wiki/Tokyo_District_Courthttp://en.wikipedia.org/wiki/High_Court_of_Justicehttp://en.wikipedia.org/wiki/Greenpeace


29/38

22

use of renewable energy and for belonging to a trade association which has commentedagainst energy efficiency standards.

In une 2B, Samsung was the first ma4or electronics company to publicly commit toeliminate ;9) and 56s from new models of all its products. he company however

failed to meet its deadlines to be ;9)+ and 56s+free, and has published new phase outdates. Greenpeace activists protested at the company's 5enelu0 headquarters in :arch2( for what Greenpeace calls Samsung's bro#en promises.

he company has been ta#ing the lead in industry efforts to reduce greenhouse gasemissions, the company has been awarded as one of global top+ten companies in the)arbon isclosure 1eadership Inde0 =)1I>. It was the only -sian company among top+ten companies. In addition, the company is listed in ow ones Sustainability Inde0=SI>.

he company's achievement ratio of products approaching the Global "colabel level

=?Good "co+;roducts? within the company> is (( percentage points above the 2( goal=$ percent>. -s of the first half of 2(, Samsung earned the Global "colabel for its2,(%B models, thereby becoming the world's number+one company in terms of the numberof products meeting Global "colabel standards.

he company is also accelerating its effort to recover and recycle electronic wastes. heamount of wastes salvaged throughout 3 countries during 2! was as much as 2B,tons. he ?Samsung 6ecycling irect? program, the company's voluntary recyclingprogram under way in the Hnited States, was e0panded to )anada.

In 2$, the company was praised for its recycling effort by the H.S. advocacy group

"lectronics a#e 5ac# )oalition as the ?best eco+friendly recycling program?.

CONTROVERSIES

DRA PRICE %I5IN"

In ecember 2(, the "uropean )ommission fined si0 1) panel producers, includingSamsung, a total of U3B$.!2J million for operating as a cartel. he company received afull reduction of the potential fine for being the first firm to assist "H anti+trustauthorities.
http://en.wikipedia.org/wiki/Beneluxhttp://en.wikipedia.org/wiki/Dow_Jones_Sustainability_Indexhttp://en.wikipedia.org/wiki/Beneluxhttp://en.wikipedia.org/wiki/Dow_Jones_Sustainability_Index


30/38

22

*n *ctober (!, 2((, Samsung was fined "H6 (BJ,&2&, for being part of a pricecartel of ten companies for 6-:swhich lasted from ( uly (!!$ to (J une 22. hecompany received, li#e most of the other members of the cartel, a (+ reduction forac#nowledging the facts to investigators. Samsung had to pay ! of their share of thesettlement, but :icron avoided payment as a result of having initially revealed the case to

investigators.

PLA"IARI:IN" APPLE

-pple sued Samsung on -pril (J, 2(( in the Hnited States istrict )ourt for the/orthern istrict of )aliforniathat several of Samsung's -ndroidphones and tablets,including the/e0us S, "pic BG,Gala0y S BG, and theSamsung Gala0y ab, infringed on-ppleCs intellectual property7 its patents, trademar#s,user interfaceand style. -pple'scomplaint included specific federal claims for patent infringement, false designation oforigin, unfair competition,andtrademar# infringement, as well as state+level claims forunfair competition, common law trademar# infringement, and un4ust enrichment.

*n -ugust 2B, 2(2 the 4ury returned a verdict largely favorable to -pple. It found thatSamsung had willfully infringed on -pple's design and utility patents and had also diluted-pple's trade dresses related to the i;hone. he 4ury awarded -pple A(.B! billion indamages and Samsung Fero damages in its counter suit. he 4ury found Samsunginfringed -pple's patents on i;hone's ?5ounce+5ac# "ffect? =HS ;atent /o.&,B3!,%$(>,?*n+screen /avigation =HS ;atent /o.&,$BB,!(J>, and ?ap o Voom? =HS ;atent/o.&,$3B,(3%>, and design patents that covers i;hone's features such as the ?home button,rounded corners and tapered edges? =HS J!%$&> and ?*n+Screen Icons? =HS3B%J>.

SA%ET# ISSUES

espite their phones' popularity, several e0plosions of Samsung mobile phones has beenreported. - Swiss teenager was left with second and third degree burns in her thigh due toher Gala0y S%'s e0plosionfollowed by two more Gala0y S% e0plosions in SwitFerlandand Ireland. - house in ong Kong was set on fire by a Samsung Gala0y SB in uly2(%, followed by another minor burnt Gala0y SB in ;a#istan.

COPETITIVE ENVIRONENT

AR4ET S!ARE
http://en.wikipedia.org/wiki/DRAMhttp://en.wikipedia.org/wiki/United_States_District_Court_for_the_Northern_District_of_Californiahttp://en.wikipedia.org/wiki/United_States_District_Court_for_the_Northern_District_of_Californiahttp://en.wikipedia.org/wiki/Android_(operating_system)http://en.wikipedia.org/wiki/Nexus_Shttp://en.wikipedia.org/wiki/Samsung_Galaxy_Shttp://en.wikipedia.org/wiki/Samsung_galaxy_s_4ghttp://en.wikipedia.org/wiki/Samsung_Galaxy_Tabhttp://en.wikipedia.org/wiki/Trademarkhttp://en.wikipedia.org/wiki/User_interfacehttp://en.wikipedia.org/wiki/Designhttp://en.wikipedia.org/wiki/False_designation_of_originhttp://en.wikipedia.org/wiki/False_designation_of_originhttp://en.wikipedia.org/wiki/Unfair_competitionhttp://en.wikipedia.org/wiki/Trademark_infringementhttp://en.wikipedia.org/wiki/Unjust_enrichmenthttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Irelandhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/DRAMhttp://en.wikipedia.org/wiki/United_States_District_Court_for_the_Northern_District_of_Californiahttp://en.wikipedia.org/wiki/United_States_District_Court_for_the_Northern_District_of_Californiahttp://en.wikipedia.org/wiki/Android_(operating_system)http://en.wikipedia.org/wiki/Nexus_Shttp://en.wikipedia.org/wiki/Samsung_Galaxy_Shttp://en.wikipedia.org/wiki/Samsung_galaxy_s_4ghttp://en.wikipedia.org/wiki/Samsung_Galaxy_Tabhttp://en.wikipedia.org/wiki/Trademarkhttp://en.wikipedia.org/wiki/User_interfacehttp://en.wikipedia.org/wiki/Designhttp://en.wikipedia.org/wiki/False_designation_of_originhttp://en.wikipedia.org/wiki/False_designation_of_originhttp://en.wikipedia.org/wiki/Unfair_competitionhttp://en.wikipedia.org/wiki/Trademark_infringementhttp://en.wikipedia.org/wiki/Unjust_enrichmenthttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Irelandhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Pakistan


31/38

22

*n an overall basis, the ma4or competition faced by Samsung is from Sony, ;hilips,/o#ia 1G amongst its biggest competitors. owever, Samsung is a large groupoperating various divisions and businesses including those for the cell phones, monitors,digital media devices and % appliances. -lthough it has a pioneering competitive

position with reference to consumer % televisions, it has had fierce competition with itsrivals in all other categories. )onsider for instance, the mar#et for 1) monitors whereSamsung held (3.( if the total mar#et share rivaled by ell with its immediatecompetitor with a mar#et share of (B.3 =2(2 est.> Similarly, with 1G as its ma4orcompetitor for television sets in 1), ;; )6 category and mar#et share (%.&,Samsung has led the mar#et with a share of 2% =2(2 est.>.

owever, in 2J, Samsung earned acclaim when it had left Sony behind in terms of itspopularity 9%ortune 133, 233-6. 1ater ta#e+over of :otorola in 2& gave it acompetitive edge in mobile phone ma#ing thereby also reducing the competitive pressure.

COPARIN" T!E AR4ETIN" I5

If we are to consider the mar#eting mi0 used by its rivals li#e Sony for instance, it wouldbe quite evident that it too uses advertising, personal selling and massive public relationscampaigns to leverage its brand in order to secure profits. ust as Samsung associatedwith he *lympics, Sony associates itself with various sports series and other publicevents to gain ma0imum consumer awareness. In the promotional arena, the approach ispretty much the same since it too offers discounts and Wbuy+this+get+this+freeC with itsproducts 4ust as Samsung, for e0ample, offered a % starter #it on purchase of % 9 or5lue 6ay purchase. owever, the pricing for both the brands is at a higher end. @hileSony does so by offering value through style, quality, purpose and performance of the

product, Samsung does the same through its technologically advanced offerings high inquality and innovation.

It is important to note that while most of its rivals in the industry, such as /o#ia,-ppleand Siemens promote their products mainly through advertising and direct selling,Samsung has had a long history of its association with sports which has created a positivebrand image along with high customer recall.


32/38

22

INDUSTR# ANAL#SIS

STRUCTURE ; CURRENT PER%ORANCE

"arlier on, the global electronics industry was mainly about the electricity based productsthat could perform the very basic functions. owever, now the utility of the product is4ust not enough. @ith an increasing globaliFation and thus greater e0posure totechnologically advanced possibilities, there is greater demand for providing the sameproducts as before with a technology-intensive added value. his ma#es competition inthe mar#et fiercer as a technology becomes redundant as soon as more and more rivalsimitate it and start offering it at a lower price. his pushes the companies in theelectronics business to continuously innovate and upgrade their products with the latesttechnology. his would however mean higher costs. Oet, if the value addition issignificant, it may 4ustify a premium price for the technologically advanced product andallow positive returns despite increase in cost.

%UTURE TRENDS

Generally and despite the economic down turn which too is e0pected to undergo a turn+around situation, the consumer electronics mar#et in the -sia ;acific region is the oneli#ely to e0hibit large growth trends 9RNCOS E'Ser


33/38

22

RESOURCE ANAL#SIS

Samsung has held a leading position in the electronics mar#et worldwide. :ore than $,J employees =2( est.> are ta#en to be an asset for the company and are valued to bethe most important value. ae+Gyun Shin, the companyCs managing director e0plainedSamsungCs 6 development to be based on three factors. e said in an interview,Samsungs HR development is based on three key words: Value, eadership, and!lobal competence"Value# means value sharing programs which bring together all

Samsung employees under one banner" eadership# re$ers to development programs

that systematically identi$y and develop ne%t-generation leaders" !lobal# meansenhancing our employees global competencies by developing their global business and

$oreign language skills"#9Tae'"=un S&in, 2336 his very clearly points towards thecompanyCs commitment to ensuring the personal development of its employees that inturn ensures ma0imum productivity and wor# quality while they wor# with it. /ot 4ustthis, Samsung is strong an organiFation from the point of view of financial assets as well.In 2( for instance, it accumulated A &$,&(3.3 million worth of revenues while ma#ing aprofit of A&,BJ$.$ million. -lthough this was nearly a 2( decrease in profitscomparative to 2!. he situation by 2(( had improved greatly with the profits for EB2(( recorded to be A%.% billion. 2(% is e0pected to be the year of high profits where theanalysts are pro4ecting profits of A(3 trillion at year end driven mainly by increasedrevenues from memory chips, handsets and flat screen televisions. his has been a resultof its innovative and technology intensive products and the current financial situation andthe e0pected growth in the -sia ;acific region is sure to enable it to invest more in 6.SamsungCs repute as a pioneer in introducing technology intensive products can be wellunderstood from the event of anuary 2(2 when it announced to become the first massproducer of panels for % 1" 1) 9s. It has successfully been able to reduce theresponse time of the 1" screens such that the % images are seem more natural.-ccording to a research carried out by a related firm, the % display mar#et is e0pectedto grow dramatically to A22 billion by 2($ from A !2 million in 2$. @ith this, thee0pected sale of 3B million units by 2($ comparative to 2, units in 2!essentially points to the revenues and profits, this company would be ma#ing.


34/38

22

AR4ET S!ARE

A(OR CLIENTS

Rank/company Part description Buying(trillion KRW)

Percent oftotal sales

( Sony 6-:, /-/ flash, 1)panels, etc...

(.2$ %.&

Product Samsungworld marketshare

Leadingcompetitor

Marketshare

Year

6-: B.B SK yni0 (!.$ E% 2(

/-/ flash B.B oshiba %%.( E2 2(

1arge+siFe 1)panels=revenue>

23. 1G isplay 2J.! E% 2(

-ctive+matri0 *1"s !& 1G isplay (X% 2(

1ithium+ion batteries ($.& Sanyo (!.B E( 2(

1) monitors ($. ell (2.$ 2!

ard+dis# drives ! @estern igital %(.% E( 2(

elevisions=1), ;;, )6,1">

(&.2 1G "lectronics (B.$ E% 2!

:obile phones 2J /o#ia 2% E( 2(2igital cameras ((.$ Sony (&.B 2(

-pplication processors (2 e0as Instruments (& E%,B2((
http://en.wikipedia.org/wiki/South_Korean_wonhttp://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/SK_Hynixhttp://en.wikipedia.org/wiki/Toshibahttp://en.wikipedia.org/wiki/LG_Displayhttp://en.wikipedia.org/wiki/LG_Displayhttp://en.wikipedia.org/wiki/Sanyohttp://en.wikipedia.org/wiki/Dellhttp://en.wikipedia.org/wiki/Western_Digitalhttp://en.wikipedia.org/wiki/LG_Electronicshttp://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/Texas_Instrumentshttp://en.wikipedia.org/wiki/SK_Hynixhttp://en.wikipedia.org/wiki/Toshibahttp://en.wikipedia.org/wiki/LG_Displayhttp://en.wikipedia.org/wiki/LG_Displayhttp://en.wikipedia.org/wiki/Sanyohttp://en.wikipedia.org/wiki/Dellhttp://en.wikipedia.org/wiki/Western_Digitalhttp://en.wikipedia.org/wiki/LG_Electronicshttp://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/Texas_Instrumentshttp://en.wikipedia.org/wiki/South_Korean_wonhttp://en.wikipedia.org/wiki/Sony


35/38

22

% ell 6-:, flat+panels, lithium+ion batteries, etc...

.$& 2.J

B ewlett+;ac#ard 6-:, flat+panels, lithium+ion batteries, etc...

.&3 2.2

J 9eriFon)ommunications

andsets, etc... .J (.%

3 - Inc. andsets, etc... .J (.%

FOR)*+E ,-- R.+0+1 S2S)EM FOR

CO+S*MER D*R.3ES (4-55#4-546
http://en.wikipedia.org/wiki/Dellhttp://en.wikipedia.org/wiki/Hewlett-Packardhttp://en.wikipedia.org/wiki/Verizon_Communicationshttp://en.wikipedia.org/wiki/Verizon_Communicationshttp://en.wikipedia.org/wiki/AT%26T_Inc.http://en.wikipedia.org/wiki/Dellhttp://en.wikipedia.org/wiki/Hewlett-Packardhttp://en.wikipedia.org/wiki/Verizon_Communicationshttp://en.wikipedia.org/wiki/Verizon_Communicationshttp://en.wikipedia.org/wiki/AT%26T_Inc.


36/38

22

CONCLUSION


37/38

22

hus , we can conclude that Samsung "lectronics has been a very successful enterprise

and is ma#in huge profits.

/ot only does it en4oy huge profits, but it also has a very good reputation all over the

world. rom consumer durables li#e elevision sets and -irconditioners to :obile

;hones,Samsung has captured every possible mar#et and is further strengthening its

position.

Samsung has an e0cellent mar#eting strategy which involves ma#ing the right product

available at the right time in the selective mar#ets using appropriate distribution channels.

Samsung has been the world's largest ma#er of1) panels since 22, theworld's

largest television manufacturersince 23, and world's largest manufacturer of mobile

phones since 2((. Samsung "lectronics displaced -pple Inc. as the world's largest

technology company in 2(( and has been a ma4or part of the "conomy of South Korea.

In 2((, Samsung was ran#ed as India's fifth most trusted brand and in 2(2, Samsung

was ran#ed as India's fourth most trusted brand by he 5rand rust 6eport, an annual

report published by rust 6esearch -dvisory. In 2(%, he 5rand rust 6eport, ran#ed

Samsung as India's second most trusted brand.

-t this rate the company loo#s unstoppable.
http://en.wikipedia.org/wiki/LCD_panelhttp://en.wikipedia.org/wiki/Television#Sales_of_televisionshttp://en.wikipedia.org/wiki/Television#Sales_of_televisionshttp://en.wikipedia.org/wiki/Economy_of_South_Koreahttp://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/wiki/LCD_panelhttp://en.wikipedia.org/wiki/Television#Sales_of_televisionshttp://en.wikipedia.org/wiki/Television#Sales_of_televisionshttp://en.wikipedia.org/wiki/Economy_of_South_Koreahttp://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/wiki/The_Brand_Trust_Report


38/38

$I$LIO"RAP!#

International :ar#eting+ :ichael 9aF

*E$LIO"RAP!#

www.google.com

www.samsung.in

www.wi#ipedia.org

international marketing-samsung

Documents