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INTRODUCTION

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

Byung-chul established a trucking business in Daegu on 1 March 1938, which he

named Samsung Trading Co, the forerunner to Samsung. Samsung means "Three

Stars" which explains the initial corporate logos.

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

war proved to be highly beneficial to Lee's trucking company.


Lee in 1950

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

directives from Park's government.


INDUSTRY PROFILE

Samsung Heavy Industries or SHI (Korean: ) is one of the largest

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

Korea's largest conglomerate, SHI's main focus is on constructing ships, offshore

floaters, gantry cranes, digital devices for ships, and other construction and

engineering concerns.

SHI operates manufacturing facilities at home and abroad, including ship block

fabrication factories in Ningbo and Rongcheng, China. The Geoje Shipyard in

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

and the launch of 30 ships per year.

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

on LNG tankers and drillships.

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

shipbuilding facilities and merger with Daesung Heavy Industries.

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

heavy equipment and construction.

Since the 21st century, SHI began to build LNG and large passenger ships in earnest,

and exported shipbuilding technologies to the United States. Samsung Heavy

Industries decided to advance into the cruise ship market, the last remaining

stronghold of EU shipbuilders. The company stated entering the undertaking was

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

Samsung Group (Hangul: ; Hanja: ; Korean pronunciation: [sams]) is a

South Korean multinational conglomerate headquartered in Samsung Town, Seoul. It

comprises numerous affiliated businesses, most of them united under the Samsung

brand, and is the largest South Korean chaebol (business conglomerate).

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

important source of income.

Notable Samsung industrial affiliates include Samsung Electronics (the world's 2nd

largest information technology company measured by 2015 revenues, and 5th in

market value), Samsung Heavy Industries (the world's 2nd largest shipbuilder

measured by 2010 revenues), and Samsung Engineering and Samsung C&T

(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

measured by 2012 revenues).


Samsung has a powerful influence on South Korea's economic development, politics,

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

Samsung Town in the Gangnam Station area in

Seoul

Industry Conglomerate

1 March 1938; 79

years ago
Founded
Daegu, Japanese

Korea

Founder Lee Byung-chul


40th floor Samsung

Electronics Building,

11, Seocho-daero
Headquarters
74-gil, Seocho

District, Seoul, South

Korea

Area served Worldwide

Lee Kun-hee

(Chairman)
Key people
Lee Jae-yong

(Vice Chairman)

Apparel, chemicals,

consumer electronics,

electronic

components, medical

equipment,

Products semiconductors, solid

state drives, DRAM,

ships,

telecommunications

equipment, home

appliances

Services Advertising,
construction,

entertainment,

financial services,

hospitality,

information and

communications

technology, medical

and health care

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)

Number of employees 489,000 (2014)

Samsung Electronics
Divisions Samsung C&T

Corporation
Samsung Heavy

Industries

Samsung SDS

Samsung Life

Insurance

Samsung Fire &

Marine Insurance

Cheil Worldwide

Korean name

Hangul

Hanja

Revised Romanization Samseong

McCuneReischauer Samsng

Website samsung.com
History

1938 to 1970

Lee Byung-chul, founder of Samsung

In 1938, Lee Byung-chull (19101987) of a large landowning family in the Uiryeong

county moved to nearby Daegu city and founded Samsung Sanghoe (,

). Samsung started out as a small trading company with forty employees located in

Su-dong (now Ingyo-dong). It dealt in dried-fish, locally-grown groceries and noodles.

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

industrialization. He focused his economic development strategy on a handful of large

domestic conglomerates, protecting them from competition and assisting them

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

due to differences in management style. Cho wanted a 30 equity share. Samsung

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

electronics-related divisions, such as Samsung Electronics Devices, Samsung

Electro-Mechanics, Samsung Corning and Samsung Semiconductor &

Telecommunications, and made the facility in Suwon. Its first product was a

black-and-white television set.[citation needed]

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

Electronics in the 1980s.

After Lee, the founder's death in 1987, Samsung Group was separated into four

business groupsSamsung Group, Shinsegae Group, CJ Group and the Hansol

Group. Shinsegae (discount store, department store) was originally part of Samsung

Group, separated in the 1990s from the Samsung Group along with CJ Group

(Food/Chemicals/Entertainment/logistics), and the Hansol Group (Paper/Telecom).

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

the Samsung Group".

In 1980s, Samsung Electronics began to invest heavily in research and development,

investments that were pivotal in pushing the company to the forefront of the global

electronics industry. In 1982, it built a television assembly plant in Portugal; in 1984,

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

An organization having a business unit that is a part of mature industry can be

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

evolving industry which offers growth prospects to the businesses. As a result,


companies are interested to invest in developing these units further to gain a larger

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

has invested its resources to expand its market presence.

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

printer and IT related products obtain a larger market share.

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

able to gain adequate attention from the target market.

RESEARCH METHODOLOGY

The research has followed descriptive research.

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

customer was taken.

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.

Less then 18 years -06.67%

18-22 years -36.67%

22-2 years 30.00%

26-30 years 16.67%

Greater than 30 years - 10%

These numbers shows that most of the respondents are young.

The occupation of the respondents was also kept in mind while conducting the survey

to have a complete and comprehensive analysis. The occupation of the respondents

was in the following proportion.

College students - -46.67%

Business man -16.67%

Working population -20%

Other -16-67%

Data used in this report is mainly primary data, which is collected first hand by survey

in the filed. In some areas secondary data also been used.

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

attempt was made to understand the brand image of SAMSUNG in India.


To analyze who the major players of consumers durable and mobile phones in the

market.

To study the market share of Samsung electronics.

To study the brand value of Samsung.

SWOT ANALYSIS
Samsung Electronics Co. Limited (OTC: SSNLF) is actually the consumer

electronics subsidiary of the Samsung Group, a conglomerate based in Suwon, South

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.

(NASDAQ: AAPL), reported larger revenues.

Unfortunately, it is difficult to determine exactly what Samsungs are because it is

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

figure is based on sales of 48 trillion Korean won.

Strengths

Samsung is the worlds most successful electronics manufacturer. It is the

worlds largest manufacturer of television sets, liquid crystal display (LCD)

panels, mobile phones and smartphones.

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

number two with 13.9%

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

system for mobile devices.

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

2014 and 2015. In contrast, Apples share price grew by 34.9%.

Some Chinese competitors are catching up to Samsung in the smartphone

market. Between 2014 and 2015 Huaweis share grew by 48.1%, and Xiaomis

share grew by 29.4%.

Samsung is heavily dependent upon consumer electronics sales in markets

with limited potential for growth, such as the United States and Europe, for

much of its revenue.

Samsungs devices use the Google Android open source operating system.

Many consumers seem to view Android as an inferior product to Apples iOS.

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

in developing regions such as Africa and India, where consumers are

unfamiliar with PCs. Sales of tablets finally overtook sales of traditional

personal computers in 2015.

Increased demand for tablet and smartphone-based solutions such as Samsung

Pay

New technologies such as wearable tech

Growing middle class in developing world will increase market for consumer

electronics.

Growing online market from sales channels such as Amazon.com

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

Apples reputation for reliability.

Apples reputation for quality, reliability and sophistication seems to be

growing.

The Google Android operating system, which Galaxy devices depend upon, is

not as popular with average people as iOS is.


Declining or stagnating middle-class incomes in North America and the

United States could reduce consumer buying power in those key markets for

Samsung.

Chinese manufacturers such as Huawei and Xiaomi could emerge as serious

rivals to Samsung. These companies share of the critical mobile device

market is growing while Samsungs is falling.

Apple could enter more consumer products areas such as home appliances and

cameras and directly compete with Samsung in those markets.

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