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Samsung Group
Samsung Group
Lee Byung-chul (February 12, 1910 November 19, 1987) was the founder of the
Samsung Group and one of South Korea's most successful businessmen. With the
breakup of the Hyundai chaebol, Samsung is now South Korea's largest business
group.
Early life
Byung-chul was the son of a wealthy landowning family (a branch of the Gyeongju
Lee clan). He attended college at Waseda University in Tokyo but did not complete
his degree.
Career
Beginning
named Samsung Trading Co, the forerunner to Samsung. Samsung means "Three
By 1945 Samsung was transporting goods throughout Korea and to other countries.
The company was based in Seoul by 1947. It was one of the ten largest "trading
companies" when the Korean War started in 1950. With the conquest of Seoul by the
North Korean army, Lee was forced to relocate his business to Pusan. The massive
influx of U.S. troops and equipment into Busan over the next year and a half of the
In 1961 when General Park seized power, Lee was in Japan and for some time he did
not return to South Korea. Eventually, a deal was struck and Lee returned but
Samsung had to give up control over the banks it acquired and follow economic
shipbuilders in the world and one of the "Big Three" shipbuilders of South Korea
(including Hyundai and Daewoo). A core subsidiary of the Samsung Group, South
floaters, gantry cranes, digital devices for ships, and other construction and
engineering concerns.
SHI operates manufacturing facilities at home and abroad, including ship block
particular, SHI's largest shipyard in South Korea, boasts the highest dock turnover
rate in the world. The largest of the three docks, Dock No. 3, is 640 meters long, 97.5
meters wide, and 13 meters deep. Mostly ultra-large ships are built at this dock,
having the world's highest production efficiency with yearly dock turnover rate of 10
SHI specializes in the building of high added-value and special purpose vessels,
including LNG carriers, off-shore related vessels, oil drilling ships, FPSO/FSO's, ultra
Large container ships and Arctic shuttle tankers. In recent times SHI has concentrated
Samsung Heavy Industries was established in 1974, when the company's Changwon
plant was opened. SHI soon purchased Woojin, followed by the construction of Geoje
Samsung Shipbuilding and Daesung Heavy Industries were merged under Samsung
Heavy Industries in 1983. Since then, it has put efforts in the introduction of new
technologies and development of products, while expanding the business area into
Since the 21st century, SHI began to build LNG and large passenger ships in earnest,
Industries decided to advance into the cruise ship market, the last remaining
necessary to maintain its number one position in the global shipbuilding market. In
2009, SHI was contracted to build a new residential cruise ship named Utopia, which
will be the largest passenger ship ever assembled in Asia. The ship will test the waters
by 2016
COMPANY PROFILE
comprises numerous affiliated businesses, most of them united under the Samsung
Samsung was founded by Lee Byung-chul in 1938 as a trading company. Over the
next three decades, the group diversified into areas including food processing, textiles,
insurance, securities and retail. Samsung entered the electronics industry in the late
1960s and the construction and shipbuilding industries in the mid-1970s; these areas
would drive its subsequent growth. Following Lee's death in 1987, Samsung was
separated into four business groups Samsung Group, Shinsegae Group, CJ Group
and Hansol Group. Since 1990, Samsung has increasingly globalised its activities and
electronics; in particular, its mobile phones and semiconductors have become its most
Notable Samsung industrial affiliates include Samsung Electronics (the world's 2nd
market value), Samsung Heavy Industries (the world's 2nd largest shipbuilder
(respectively the world's 13th and 36th largest construction companies). Other notable
subsidiaries include Samsung Life Insurance (the world's 14th largest life insurance
company), Samsung Everland (operator of Everland Resort, the oldest theme park in
South Korea) and Cheil Worldwide (the world's 15th largest advertising agency
media and culture and has been a major driving force behind the "Miracle on the Han
River". Its affiliate companies produce around a fifth of South Korea's total exports
Samsung's revenue was equal to 17% of South Korea's $1,082 billion GDP.
Samsung
Seoul
Industry Conglomerate
1 March 1938; 79
years ago
Founded
Daegu, Japanese
Korea
Electronics Building,
11, Seocho-daero
Headquarters
74-gil, Seocho
Korea
Lee Kun-hee
(Chairman)
Key people
Lee Jae-yong
(Vice Chairman)
Apparel, chemicals,
consumer electronics,
electronic
components, medical
equipment,
ships,
telecommunications
equipment, home
appliances
Services Advertising,
construction,
entertainment,
financial services,
hospitality,
information and
communications
technology, medical
services, retail,
shipbuilding
US$305 billion
Revenue
(2014)
US$22.1 billion
Net income
(2014)
US$529.5 billion
Total assets
(2014)
US$231.2 billion
Total equity
(2014)
Samsung Electronics
Divisions Samsung C&T
Corporation
Samsung Heavy
Industries
Samsung SDS
Samsung Life
Insurance
Marine Insurance
Cheil Worldwide
Korean name
Hangul
Hanja
McCuneReischauer Samsng
Website samsung.com
History
1938 to 1970
). Samsung started out as a small trading company with forty employees located in
The company prospered and Lee moved its head office to Seoul in 1947. When the
Korean War broke out, he was forced to leave Seoul. He started a sugar refinery in
Busan named Cheil Jedang. In 1954, Lee founded Cheil Mojik and built the plant in
Chimsan-dong, Daegu. It was the largest woollen mill ever in the country.[citation
needed]
Samsung diversified into many different areas. Lee sought to establish Samsung as
leader in a wide range of industries. Samsung moved into lines of business such as
insurance, securities and retail. President Park Chung Hee placed great importance on
financially.
In 1947, Cho Hong-jai, the Hyosung group's founder, jointly invested in a new
company called Samsung Mulsan Gongsa, or the Samsung Trading Corporation, with
the Samsung's founder Lee Byung-chull. The trading firm grew to become the
present-day Samsung C&T Corporation. After a few years, Cho and Lee separated
Group was separated into Samsung Group and Hyosung Group, Hankook Tire and
other businesses.
In the late 1960s, Samsung Group entered the electronics industry. It formed several
Telecommunications, and made the facility in Suwon. Its first product was a
1970 to 1990
The SPC-1000, introduced in 1982, was Samsung's first personal computer (Korean
market only) and used an audio cassette tape to load and save data the floppy drive
was optional
In 1980, Samsung acquired the Gumi-based Hanguk Jeonja Tongsin and entered
telecommunications hardware. Its early products were switchboards. The facility was
developed into the telephone and fax manufacturing systems and became the center of
Samsung's mobile phone manufacturing. They have produced over 800 million
mobile phones to date. The company grouped them together under Samsung
After Lee, the founder's death in 1987, Samsung Group was separated into four
Group. Shinsegae (discount store, department store) was originally part of Samsung
Group, separated in the 1990s from the Samsung Group along with CJ Group
Today these separated groups are independent and they are not part of or connected to
the Samsung Group. One Hansol Group representative said, "Only people ignorant of
the laws governing the business world could believe something so absurd", adding,
"When Hansol separated from the Samsung Group in 1991, it severed all payment
guarantees and share-holding ties with Samsung affiliates." One Hansol Group source
asserted, "Hansol, Shinsegae, and CJ have been under independent management since
their respective separations from the Samsung Group". One Shinsegae department
store executive director said, "Shinsegae has no payment guarantees associated with
investments that were pivotal in pushing the company to the forefront of the global
a plant in New York; in 1985, a plant in Tokyo; in 1987, a facility in England; and
another facility in Austin, Texas, in 1996. As of 2012, Samsung has invested more
than US$13,000,000,000 in the Austin facility, which operates under the name
Samsung Austin Semiconductor. This makes the Austin location the largest foreign
investment in Texas and one of the largest single foreign investments in the United
States
BCG MATIX
Cash Cows
identified as a cash cow. The key feature for the business or product to qualify as a
cash cow is that it would not be a resource intensive production process, while the
return on investment is high. The slow pace of expansion of the industry indicates that
the businesses in this environment are not likely to gain major market share.
Nevertheless, the existing market share is large enough to bring in high sales for the
organization.
Stars
Products or businesses that are considered as star in the BCG matrix are a part of
market share and attain a stronger position in the market. The product manufactured
by Samsung that can be seen as a Star is the mobile phones and tablets. In an effort to
deal with the competitive pressure from other mobile phone manufacturers, Samsung
Question Marks
There are products that formulate a part of the industry that is still in the phase of
development, yet the organization has not been able to create a significant position in
that industry. The small market share obtained by the organization makes the future
outlook for the product uncertain, therefore investing in such domains is seen as a
high risk decision. The investment can either make the business grow into a star, or
the product can remain at the position of question mark, bringing no significant sales
to the firm. In the segment of IT, Samsung products such as printer are not able to be
a main source of earning for the company. Improvements can be made to make the
Dogs
The BCG matrix has further identified those business units that have become a source
of continuous loss for the organization. Moreover, these business units or products are
not likely to offer any significant growth to the organization in terms of sales or
market share. Such future prospects makes this category a focal point for liquidation.
Galaxy smart watch is one such example in this regard as the product has not been
RESEARCH METHODOLOGY
Descriptive research is used in this project report in order to identify the brand value
of Samsung in India. This is the most popular type of research, generally used in
survey research design and most useful in describing the characteristics of consumer
behaviour. The method used was questionnaire and interview of the Samsung
The essential part of any report is research methodology. The filed study was
conducted to analyze the market share and understand the brand image of Samsung
product. The sample size was 100. 60% males and 40% females was the ratio of the
respondent in this survey. The age of the respondents was in the following proportion.
The occupation of the respondents was also kept in mind while conducting the survey
Other -16-67%
Data used in this report is mainly primary data, which is collected first hand by survey
Objectives
The basic idea of taking up this research study is to analyze the market share of
SAMSUNG consumer durable and mobile phones in Delhi. At the same time an
market.
SWOT ANALYSIS
Samsung Electronics Co. Limited (OTC: SSNLF) is actually the consumer
Korea. Outside of Korea, Samsung is best known as the worlds largest manufacturer
of mobile phones and smart phones, including the highly popular and successful
Galaxy.
It is also the worlds largest manufacturer of televisions and LCD panels. Thanks to
its manufacturing and marketing expertise, Samsung is regarded as the worlds second
largest consumer electronics company. Only its American rival, Apple Inc.
based in Korea and not covered by U.S. corporate reporting laws. Samsung did report
an estimated TTM revenue of $42.35 billion for the second quarter of 2015. That
Strengths
Samsung is the worlds number one marketer of mobile phones with 21.4% of
the worlds largest market share in the second quarter of 2015. Apple is
Samsung has impressive research and design capabilities. It was able to create
and roll out Samsung Pay, a payment app with similar capabilities to Apple
Pay, in less than a year. Samsung has been able to replicate many of the
capabilities of both Apple Inc.s phones and Google Inc.s Android operating
Weaknesses
Samsung has not been able to match Apple Inc.s marketing capabilities for
smartphones. Its share of the U.S. smartphone market fell by 2.3% between
market. Between 2014 and 2015 Huaweis share grew by 48.1%, and Xiaomis
with limited potential for growth, such as the United States and Europe, for
Samsungs devices use the Google Android open source operating system.
The public has not been as accepting of Android as the tech community has.
Opportunities
Growing market for smartphones, tablets and other mobile devices, especially
Pay
Growing middle class in developing world will increase market for consumer
electronics.
Threats:
Apple has emerged as the dominant smart phone and tablet brand in some
markets, such as the United States. Samsung has not been able to overcome
growing.
The Google Android operating system, which Galaxy devices depend upon, is
United States could reduce consumer buying power in those key markets for
Samsung.
Apple could enter more consumer products areas such as home appliances and