You are on page 1of 7


Key Facts
Origin: South Korea
Employees : 370,000
Countries of operation : 88
Total Revenue (2013) :
Net Income (2013): 30.1 Billion USD
GPD Contribution to South Korean Economy : 16.5%
Growth Rate :
Vision2020 : Inspire the World, Create the Future.
Goal :
01 Quantitative Goals :USD 400 billion in sales, predominantly No.1 in the global
IT industry & Global top 5
02Qualitative Goals : Innovative company; Respected company; Top 10 worlds
best workplaces; Creative leader building new markets; Global enterprise that
attracts the worlds best talents
*No 1 Global Market Share in TV's for 6 Consecutive years

1. Hardware integration with many open source OS and software
2. Excellence in engineering and producing hardware parts and consumer
3. Innovation and design
4. Focus on environment
5. Low production costs
6. Largest share in mobile phones and 2 place in smart phones sales
7. Ability to market the brand
8. Products are free from PVC and BFRS

1. Patent infringement
2. Too low profit margin
3. Main competitors are also largest buyers
4. Lack its own OS and software
5. Focus on too many products
1. Growing Indias Smartphone market
2. Growing mobile advertising industry
3. Growing demand for quality application processors
4. Growth of tablets market
5. Obtaining patents through acquisitions

1. Saturated Smartphone markets in developed countries
2. Rapid technological change
3. Declining margins on hardware production
4. Breached patents
5. Apples iTV launch
6. Price wars


Core Competences (CSF
critical success factors)
1. Samsung invested R&D in digital technology
2. It created the worlds first one-megabit chip and the first chip that held 256 megabits.
Thus, Samsung is now the worlds largest producer of DRAM and SRAM chips
3.Same product development technique for range of new of products
1.32Strong brand position of Apple, Sony and LG.
1.33Highly successful Marketing campaign from Apple Inc.
B2C Device solution-semiconductors, chips and liquid crystal display.
B2B (Digital media and communication-mobile phones, computer and television

6.Cultural Dimension

Table 2 Index for smart phones 2013
Samsung Apple LG HTC Google

Table-3 ...Samsung Electronics market shares by business area (Samsung sustainability report 2014)

Product Smartphone T
System LSI
Refrigerators Washing
Printers Notebooks Cameras


Country PESTL
1.2.1Government regulation and Fiscal policy: Relaxing trade barrier and tax for
electronic products in developing
countries provides opportunity for growth
1.2.2 Labour Law in China and Vietnam: Forced to monitor its subsidiaries in
China about child labour and their
working condition.
1.2.3 Low global economy and stalled growth of BRIC nations, (25% drop
expected in sales for S4 phones)
1.2.4 Samsung's high-end smart phone market drop by 13% in 2Q13
1.2.5 Critical trade union: Raising labour price in China.
1.2.6 Change in customer behaviours: New segment in consumer market.
1.2.7 Rapid changes in technological development:4G network, High resolution
camera, finger scan technology
1.2.8 Reduced product life cycle (6 months-1 year)
1.2.9 Increased awareness of techno- savvy customer
1.2.9 Health & Safety issues: Concerned on working condition and child labour in
Vietnam, Indonesia & China.
1.2.10 Corporate Law in intellectual property, patent and copy right: Litigation
with Apple, Potter's Voice

Independent Software Vendors : Platinum 2 ;Gold 31;Silver 604
Distributor (1) : Tech Data ,Germany
System Integrator / Value Added Reseller : Platinum 1 ;Gold 10;Silver 153

4.1: Key Partners
4.1.1 Google (Android).
4.1.2Sony (Liquid Crystal Panel, S-LCD)
4.1.3 Microsoft (Software Development
its electronics products).
4.1.5IBM (Software Development).
4.1.6Rovi (Social network & connection
between customer and supplier
4.1.7 Bosch for lithium-ion batteries for
4.4: Value Proposition (offers)
4.4.1Cost leadership (B2C)- Samsung
Chrome book (20% MS), Galaxy Ace/Y,
Galaxy Mini.
4.4.2Scores of apps through Android
platform (873,248)
4.4.3Differentiation Strategy- S-Beam,
Stylus pen, multitasking, professional
4.4.4Focus strategy- High end Galaxy
Note, 4K UHD TV, Galaxy Gear, Galaxy
4.4.5Integrated systems
4.4.6Integrated conglomerate structure
through the Chaebol
4.5: Distribution Channel
4.5.1B2B channels-
Mobile service providers, Wholesalers,
Independent software vendors (ISV
4.5.2Corporate family members of
Samsung Electronics
4.5.3 e-Commerce - Amazon, e-bay
through online retailers
4.2 Key Resources
4.2.1 Human resources (235,868) direct employees and through
subcontract 800,000) [1]
4.2.2 Intellectual property/ patents (5081 US patents in 2012,
second largest in the world) [1]
4.2.3 Brand equity (brand value of US$ 23.4 billion, a 20%
increase over 2010) [1]
Infrastructure around the world [3]
4.6:Customer Relationship
4.6.1Comprehensive product portfolio; consumer electronics to
4.6.2Prompt response to warranty demand and after sales
(13,997 approved service centres)
4.6.3Geographical reach, Operates 217 offices in 72 countries.
4.6.4New LED (LM561B) packages that achieves 30%
increase in efficiency and reduced energy consumption.
4.6.5Respond to 'voice of the customer' by designing
innovative and original products.
4.6.6Investing 6% of annual sales revenue on R&D.
4.6.7Geographically-dispersed base of direct dealer, sales
network and indirect channel partners (one stop)
4.6.8Sponsor of London Olympics 2012 increased brand
awareness , Local sponsor for Seoul Olympics, 1988
4.3: Key Activities
4.3.1R&D in next-generation batteries for sunlight generation
and electric car (BMW and Tesla)
4.3.2Innovation R&D(Kaizan Mantra continuously
4.3.3Spending $4.5 billion on 5 new R&D centres in Korea
4.3.4 Building capacity in new business areas (healthcare and
4.3.5 Contribution to create healthy society ($230 million
4.7: Customer Segment
4.7.1Geographically divided into five regions namely, Korea,
America, Europe, Asia and Africa and China.(One stop)
4.7.2Revenue geographically; America (28.9%), Europe
(24.6%), Asia and Africa (17.9%), Korea (14.5%), China
(14%). (one stop)
4.7.3Specific Customer Group- High Users (Young urban
population under 35 years), High income group, High potential
Group (36 years and above)
4.8 Cost Structure
4.8.1 $10.5 billion R&D expenditure for 2012 up by $1.4
4.8.2 $2.8 billion to capital investments
4.8.3 Advertising expense $9.7 billion in 2012
4.8.4 After sales service expense $2.8 billion in 2012
4.9 Revenue Stream
4.9.1CE business contributed 21.5%
4.9.2 IM division contributed 48.3%
4.9.3The Semiconductor division contributed 15.5%
4.9.4 LCD and LED business contributed 14.7%
4.9.5 B2B-Apple, Sony, HP, Dell contributed 13% revenue

Table ..Mergers and acquisition
Serial Year Company Business Used with
1 2013 Boxee TV digital recording Cloud storage solutions
for TV viewers
2 2013 Sharp Corp Photocopier Making photocopier in
OEM arrangement
3 2012 Novalead OLED PIN OLED to reduce
energy consumption
4 2011 Nexus Testing Solution Samsung Electronics
5 2011 Bosch Batteries Lithium-ion batteries
for electric cars
6 2009 Amica, Poland Refrigerators
&Washing machine
Polish Home appliance
7 2007 Limo Developing Linux Vodafone, Motorola
8 2005 IMEC Developing
9 2004 IBM Technology

Table ...Ecosystem of Samsung
Ecosystem Members Value added for Samsung



Table ..Ansoff Matrix
4.1 Smart phone 30.4%
4.2 LED Smart TV 26.
4.3 Increase net Revenue by %
Existing Market/New Product (Product Development)
4.4 Curve screen TV, 4K UHD TV
4.4 Galaxy Gear, Galaxy Round,
4.5 NX300 Smart Camera
New Market/Existing Products (Market development)
4.6 Africa- Assembly plants and R&D centre in Kenya
(Huge growing market)
New Market/New Product (Diversification)
4.7 OLED lights, Lithium-ion Batteries
4.8 Health Care and biotechnology
4.9 Bendable and foldable smart phones

Table ...Comparison of Chaebols and Keiretsu
Features Chaebols (Korea) Keiretsus (Japan)
Ownership and control Family owned
Strong autocratic leadership
Cross-stock ownership
Stakeholder orientation
Collective leadership
Structure Unrelated, vertically integrated
Government does not allow
groups to
own banks
Expansions based on family
moods and
government policies
Either horizontally diversified or
Banks are core group
Expansions based on MITIs
long-term plans
and groups strategic planning
Finance Internal goals dictated by
goal agenda
guaranteed loans
Internal goals dictated by own
institutions long-term returns
Capitalized by using internal
banks and
financial institutions willing to
take higher risks
Government Influence Enforcement of industrial policy
direct grants and subsidies
Cause of undisciplined growth
overcapacity in some industries
Supportive of industrial policy
through research
Competition reduced by
support of weaker
firms and no lose strategy
Culture What enables quick decisions
and ability
to sell or liquidate unprofitable
What requires time to reach

Independent Software Vendor Program:
Designed to promote and support ISVs in developing enterprise mobile solutions on the Samsung mobile
System Integrator/ Value Added Reseller Program:
Designed to cultivate a partner ecosystem that provides robust support for driving business growth
Distributor Program:
Designed to support distribution partners who sell Samsung Mobile products and solutions to enterprise
customers through their sub channel network.

Requirements :
Proven enterprise market leadership and a track record of bringing technology
innovations to the market
By invitation only
Leader in at least one category of enterprise mobile solution with customer references
and a global market presence
Shared goals and joint customers with Samsung
Market presence in enterprise mobile solutions
Commitment to develop and market at least one solution on Samsung mobile products

Partner Placement for SEAP: