MINISTRY OF EDUCATION AND TRAINING

HOA SEN UNIVERSITY

ECONNOMICS & MANAGEMENT

SUBJECT REPORT GROUP 4

TOPIC:

SAMSUNG ELECTRONICS

Subject : International Business Management

Instructor : Nguyen Da Thu
Class : NT401DE01 (0100)
Students group making : 1. Đan Huy (ID: 2180079)
2. Lê Phương Vy (ID: 2182832)
3. Lâm Hải Yến (ID: 2183645)
4. Dương Minh Thư (ID: 2183555)
5. Lê Nguyễn Lan Quyên (ID: 2175347)
6. Nguyễn Ngọc Phương Linh (ID: 2172813)

June – 2021
Ho Chi Minh City
 MINISTRY OF EDUCATION AND TRAINING
HOA SEN UNIVERSITY
ECONOMICS & MANAGEMENT


SUBJECT REPORT GROUP 4

TOPIC:

SAMSUNG ELECTRONICS

Subject : International Business Management

Instructor : Nguyen Da Thu
Class : NT401DE01 (0100)
Students group : 1. Đan Huy (ID: 2180079)
making 2. Lê Phương Vy (ID: 2182832)
3. Lâm Hải Yến (ID: 2183645)
4. Dương Minh Thư (ID: 2183555)
5. Lê Nguyễn Lan Quyên (ID: 2175347)
6. Nguyễn Ngọc Phương Linh (ID: 2172813)

June – 2021
Ho Chi Minh City
 PLEDGE
“We have read and understood the violation of academic integrity. We commit
by personal honor that this test is self-administered and does not violate
academic integrity.”

June 11, 2021

(Name and signature of students)

ID
First and Last name Name and signature of students
Students

1 2180079 Đan Huy Đan Huy

2 2182832 Lê Phương Vy Lê Phương Vy

3 2183645 Lâm Hải Yến Lâm Hải Yến

4 2183555 Dương Minh Thư Dương Minh Thư

5 2175347 Lê Nguyễn Lan Quyên Lê Nguyễn Lan Quyên

6 2172813 Nguyễn Ngọc Phương Linh Nguyễn Ngọc Phương Linh

i
 ABSTRACT
After completing the International Business Management course, we
understand the importance of applying business strategies in the business to
contribute to accelerating the development of the business, increasing revenue
and brand recognition for consumers. With this final topic, our team chose
Samsung Electronics of Korea to analyze and learn. The article is analyzed by
us based on information sources available on the Internet. And after a thorough
investigation, we have a relatively comprehensive view of the mighty
development of this corporation over a long period of time since its
establishment, as well as the strategies the company has used to bring products
to more new markets than trene worldwide.
This report consists of 4 main parts: The first part is an introduction to
Samsung Electronics company, Part 2 will be the factors influencing the
group's strategic choice, Part 3 is the strategy that the group uses and the last
part is the lessons learned from the company.
We have tried to analyze based on the knowledge and information found, if
there is any mistake, the lecturer can ignore it. Our team would be delighted to
hear your comments on this group report. Thank you so much!

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 TABLE OF CONTENTS
PLEDGE..................................................................................................................................I
ABSTRACT...........................................................................................................................II
TABLE OF CONTENTS.....................................................................................................III
CATALOG IMAGES/CHARTSACKNOWLEDGEMENTS...........................................IV
1. INTRODUCTION OF SAMSUNG ELECTRONICS.................................................1
1.1. OVERVIEW.................................................................................................................1
1.2 VISION AND MISSION.................................................................................................2
1.3 LOGO AND SLOGAN....................................................................................................2
1.4 PRODUCTS..................................................................................................................3
2. FACTORS AFFECT SAMSUNG’S INTERNATIONAL BUSINESS.......................5
2.1 PESTLE OF SAMSUNG.............................................................................................5
2.1.1 Political..............................................................................................................5
2.1.2 Economic............................................................................................................5
2.1.3 Social..................................................................................................................5
2.1.4 Technology.........................................................................................................6
2.1.5 Legal...................................................................................................................6
2.1.6 Environnment....................................................................................................6
2.2 SWOT OF SAMSUNG.................................................................................................7
2.2.1 Strengths.............................................................................................................7
2.2.2 Weaknnesses.......................................................................................................8
2.2.3 Opportunities......................................................................................................9
2.2.4 Threats..............................................................................................................10
3. THE INTERNATIONAL STRATEGY OF SAMSUNG ELECTRONICS.............11
3.1 SAMSUNG ELECTRONICS COMPANY PENETRATES THE VIETNAMESE MARKET.......11
3.1.1 The reason Samsung Electronics entered the Vietnnamese market...................11
3.1.2 Samsung Electronics Vietnam period 1996 – 2008...........................................13
3.2 TYPES OF INTERNATIONAL STRATEGY THAT SAMSUNG HAS APPLIED.....................16
3.3 SOME STORIES OF SAMSUNG’S BUSINESS IN VIETNAM...........................................20
3.3.1 Samsung’s transnational strategy into Vietnam................................................20
3.3.2 Vietnam – Samsung’s potential market and success story of Samsung
Electronics.....................................................................................................................21
4. EXPERIENCES AND LESSONS FROM SAMSUNG ELECTRONICS................22
REFERENCES.......................................................................................................................24

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 CATALOG IMAGES/CHARTS
FIGURE 1 - SEC'S HEADQUARTERS............................................................1
FIGURE 2 - LOGO HISTORY..........................................................................3
FIGURE 3 - DYNAMIC AMOLED INFINITY-O (PUNCH HOLE FOR
CAMERA) DISPLAY SCREEN................................................................3
FIGURE 4 - SAMSUNG GALAXY NOTE 10 SMARTPHONES....................4
Figure 5 - Memory chip.....................................................................................4

Chart 1 - Vietnam LCD TV market..............................................................14

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 ACKNOWLEDGEMENTS
First of all, group 4 would like to thank Ms. Nguyen Da Thu, lecturer of
International Business Management class, for accompanying the group in the
process of studying this subject and supporting the group to complete the final
assignment successfully. Although we had to study online because of the
complicated situation of the epidemic, Ms. Thu tried her best in the process of
imparting knowledge to us so that we could absorb them in the best way.
Next, we would like to thank Hoa Sen University for giving us the opportunity
to apply and learn about reality through reports and classroom discussions with
lecturers. At the same time, we thank the school for its timely response to the
epidemic situation to protect the health of students throughout the school as
well as faculty.
Finally, the group would like to thank all members of group 4 for their efforts
to complete this report on schedule and meet the requirements of a standard
report.

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 1. INTRODUCTION OF SAMSUNG ELECTRONICS
1.1. Overview
Samsung Electronics Co., Ltd (SEC) was established on January 13, 1969. This
is one of the major subsidiaries of Samsung Group – a giant corporation of
Korea. SEC is a multinational electronics company with an official number of
employees up to 500,000 people. Until now, Samsung Electronics has appeared
in more than 120 countries around the world. Its headquarters is located in
Suwon, Gyeonggi. Kwon Oh-hyun was the company’s CEO in 2012, but in
2018 he resigned. And since then, SEC appointed 3 CEOs: Ki Nam Kim,
Hyung Suk Kim and Dong Jin Koh.

Figure 1 - SEC's headquarters

Source: www.alamy.com
 The process of Samsung Electronics’s formation and development.
1969-1987: The company was founded in 1969 as Samsung Electric Industries.
In the early days, the company produced electronic household appliances:
televisions, refrigerators, computers, washing machines,… In 1981, more than
10 million televisions were being manufactured each year. And in 1988,
Samsung Electronics was officially born by the merger of Samsung Electric
Industries and Semiconductor & Communications.

1
 1988-1995: In 1988, mobile devices were sold in Korea for the first time. At
this point, the competition for market share has begun. In February 1995,
Samsung Electronics acquired 40% stake of AST Research, increasing its share
of the national market.
1995-2008: Some achievements during this time such as "World's first 64Mb
DRAM in 1992, 256 Mb DRAM in 1994, 1Gb DRAM in 1996." In 2004,
Samsung successfully made the world's first 8Gb NAND memory chip and
then reached a long-term agreement with Apple (2005). As of October 2013,
Samsung is one of the main suppliers for Apple, with the main product being
the A7 processor, which inside the iPhone 5s devices.
2008-now: In 2005, Sony were defeated by the SEC. Samsung became the 20th
largest consumer brand globally for the first time. Samsung beat Motorola to
become the second largest mobile manufacturer in the world in 2007…
In 2020, the revenue of Samsung Electronics Co., Ltd was US$200.6 billion,
while the operating income was US$30.5 billion. The net income was US$22.4
billion and the total assets was US$320.4 billion, total equity was US$233.7
billion. These numbers in recent years have always been stable and tend to
increase, which proves that the SEC has been developing very strongly in the
domestic and foreign markets.
1.2 Vision and mission
The vision statement of Samsung is “to inspire the world with our innovative
technologies, products, and design that enrich people’s lives and contribute to
social prosperity by creating a new future.”
This company’s mission statement is “We will devote our human resources and
technology to create superior products and services, thereby contributing to a
better global society.”
1.3 Logo and slogan
Samsung's logo is quite simple but very easy to remember. Over the years, the
logos have also changed, but they still retain their character with a strong brand
identity.

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 Figure 2 - Logo history
Source: internet
Samsung does not have a certain slogan. Almost each of their product lines will
have a suitable slogan. For example:
 Phones: “DO BIGGER THINGS”
 TVs: “TV’s NEXT INNOVATION”
 Appliances: “BRING IT HOME”…
1.4 Products
Samsung Electronics is a large and long-standing brand specializing in
electronics and manufacturing electronic devices. The company has been
creating products that are outstanding and useful for everyone in today's
technology era. In which, there are some modern and outstanding electronic
products such as LCD and LED panels, mobile phones, memory chips, ...

Figure 3 - Dynamic AMOLED Infinity-O (punch hole for camera) Display

screen
Source: internet

3
Figure 4 - Samsung Galaxy Note 10 smartphones
Source: internet

Figure 5 - Memory chip

Source: internet

4
 2. FACTORS AFFECT SAMSUNG’S INTERNATIONAL
BUSINESS
2.1 PESTLE of Samsung
2.1.1 Political
Political stability is critical to Samsung's performance; the political
environment is very supportive for all economic activities, despite the presence
of tiny players in some overseas markets, such as India, and Samsung's
continued political pressure in Africa and Latin America. Any country with an
uncertain political environment, as well as unstable changes in the government
structure, is prone to corporate losses and stagnation. However, due to tensions
with North Korea, the corporation has had political challenges in South Korea
in recent months due to tensions with North Korea. As a result, the positive
trade relationship between the two countries is a factor that aids in the
promotion of both countries' economies in terms of economic activity.
2.1.2 Economic
Samsung's tendency to grow its global reach in emerging countries is a result of
the company's desire to increase its global reach in its market, but it must also
contend with the ongoing global economic crisis. Customers' demand for items
declined in various markets, pushing the corporation to find other ways to be
profitable in the market. Samsung's worldwide macroeconomic climate has
always been turbulent, and the corporation needs to reposition its business
approach.
2.1.3 Social
Traditional habits and traditions that differ from one group to the next are
included in this component. Differences in social status have a significant
impact on product demand as well as people's motivation to work
conscientiously. Samsung had to tailor and upgrade its products to meet the
needs of local people when it sought to expand into new countries. That is why
Samsung has been able to successfully mix a global strategy with a local
approach. Such socio-cultural aspects are always of interest to a business, like
Samsung till they can properly target their product marketing efforts. Samsung

5
goods, such as smartphones, tablets, and televisions, have adapted effectively
to the demand for large screens and conveniences, allowing users to take full
advantage of their capabilities. Simultaneously, the corporation acts ethically
and recognizes that corruption and poor quality can have severe consequences
and cause substantial damage to the company's reputation and image.
2.1.4 Technology
Thanks to the development of technology, people have been able to discover
many different features from smartphones. It can be seen as a small computer
with full functions. It can be seen that the technology of producing mobile
devices can meet the development needs of human society.
Samsung has captured that and turned technology into its strength and biggest
competitive advantage. For example, they constantly create devices: mobile,
tablet, computer and have different upgrades. In addition to constantly bringing
to market many innovative products, they also use a variety of digital
technologies to build relationships with customers. Besides, Samsung also
invests a lot in the field of extensive research combined with professional
development that has made SUHD TVs a special attraction for customers.
2.1.5 Legal
It was the technology factor that made Samsung suffer a heavy penalty for
copying Apple's Iphone and Ipad. The legal battle between Samsung and Apple
has been going on for 6 years and the victory has completely belonged to
Apple. This has led to failure in branding as well as customer outreach
strategies.
Things become even more difficult when Samsung is constantly entangled in
many lawsuits, especially in developed countries. For example, Samsung's
Galaxy Note 7 kept exploding around the world, prompting Samsung to receive
lawsuits from 527 customers from South Korea.
 Samsung needs to follow a number of rules to help the company avoid legal
penalties and other serious consequences.
2.1.6 Environnment

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After the process of industrialization, there has been pollution along with
global warming. It is very reasonable for technology companies to have a
responsibility to protect the environment. Samsung has been very active in
reducing energy and using renewable energy to reduce emissions into the
environment. Samsung Electronics signed a deal with Green Development and
provided bioethanol cooking stoves to help the people of Mombasa in Kenya.
In addition, Samsung needs to ensure the right working environment and
incentives for employees who are involved in the production of products to
meet customer demand for sustainability from the supply product level as well
as social responsibility.
2.2 SWOT of Samsung
2.2.1 Strengths
Great brand value
In the smartphone market, Samsung is now the brand that dominates the
market. Samsung maintained its global No. 1 position with an 18.5% market
share in Q1 2020; while Apple is 13.7% (According to Gartner).
Varety of product categories
Samsung's platform is constantly researching, innovaing and developing
many product categories among competitors. They have 34 research and
development centers (R&D) operating worldwide. Samsung products
include: tablets, cameras, cameras, TVs; especially popular today can be said
to be phones and smart watches…
Award-winning brands
With 80 years of experience in branding and development. Take a pioneering
position in innovation to bring the best experience to consumers with the
desire to receive the trust of customers. Samsung always does its role well
when a small part of users keep faith in the products and services of the
brand. Samsung has been awarded the CES (Consumer Electronics Show)
award for its designs and products for 14 consecutive years. Not stopping
there, in 2018, Samsung continued to receive 36 CES awards along with 400
others over the course of 14 years.

7
 Renovate
It can be said that always innovats is Samsung's advantage in the SWOT
matrix when the brand is constantly improving the features and interface of
products, in order to bring customers a new experience in the best way. Not
only that, environmentally friendly improvements are also factors that help
Samsung enhance its brand reputation.
It has always been in the Top 10 technology and telecommunications
companies on the EPA's Green Energy Partnerships list.
With a long-term achievement table and many high technologies successfully
applied in its products, contributing to increasing the attractiveness and
position of the Samsung brand in all business areas.
"Stronghold" in Asian market
In Asia, Samsung has always been among the leading brands, especially in
the Chinese and Indian markets. These two markets help Samsung's business
grow significantly, which is why Samsung takes advantage of opportunities
and encourages many incentives in these countries.
2.2.2 Weaknnesses
Depends on the US market
The first weakness in Samsung's SWOT matrix is its dependence on the US
market. This is considered a potential market when it is estimated that both
Apple and Samsung - the "giants" in the tech world, sell at least 70.8% of
smartphone products here.
Although Samsung has diversified its resources and expanded its market
operations in Asian countries, evenitsrevenuedepends heavily on the U.S.
market. However, the U.S. economy is unpredictable, and if a recession
occurs, it will put Samsung's revenue at risk and could directly affect its
operational resources.
Product failure
It can be said that the Samsung Galaxy A20e exploded is a failure of
Samsung when the brand distributesa faulty product and can threaten the

8
lives of consumers to the market. This "erodes" trust in the company of
consumers, even loyal customers.
Dependence on low-end smartphones
Samsung's revenue comes largely from the sale of low-end smartphones.
Samsung's sale of smartphones in the low segment has significantly affected
the sale of smartphones in the high-end segment. This caused Samsung to
decline from 71 million smartphones sold and 19.1% marketsharein Q1 2019 to
55 million smartphones sold in Q1 2020 with 18.5% market share (according to
Gartner report).
2.2.3 Opportunities
HR Management
Besides product quality, Samsung can create impressive transformation
achievements if invested in personnel management. This not only helps to
increase sales, but also creates competitive leverage with competitors. The
company can use its brand image and use highly skilled, skilled employees to
improve the performance and productivity of the business.
5G Technology
Samsung has leveraged its capacity and know-how to fully exploit
opportunities as the world shifts to 5G networks. The company has been
actively in negotiations with operators in the EU to provide 5G and 6G
network equipment.
Innovative products
In today's dynamic and innovative smartphone market, not keeping up with
the trend will make the brand instantly obsolete. Brands must constantly
upgrade and create to catch up with customer tastes. And Samsung has done
a great job of achieving tremendous growth by setting up a trend of
innovative products like foldable phones.
Customer (High)
If customers are divided into 2 preferences: iOS and Android, respectively,
the two leading giants of these two operating systems are Apple and
Samsung. Samsung's global user market is always high and it also builds

9
huge customer loyalty to its products. Especially with potential markets in
the US.
2.2.4 Threats
Controversy
It can be said that the controversy was a challenge for Samsung when Apple,
its competitor, filed a lawsuit against Samsung for patent infringement and
this has launched a fierce seven-year battle between the courts and finally
came to the settlement that Samsung copied Apple and had to pay damages
of up to $1.049 billion.
 This lawsuit damaged Samsung's reputation and reduced its sales.
Increased competitiveness
Samsung's competitors in the growing market, especially in the consumer
electronics industry, smartphone products and the computer industry have
reached record highs. Xiaomi, Apple, Huawei are all well-known technology
competitors, aiming to become the best technology company. This will
increase the pressure on Samsung in both competition and finance.
Legal and regulatory threats
As the world globalizes and digital trends grow, government agencies have
begun to enact tougher guidelines and laws to increase legal threats to
companies around the globe. Samsung is no exception to these rules.
Different laws from the market and these strict regulations will be a
significant obstacle in all Samsung operations. Failure to comply with the
"playing field" of each market can lead to a complete closure in the market,
which can even cause a "fatal" blow to Samsung.
 With Samsung's SWOT matrix analysis, to find out its weaknesses,
weaknesses, opportunities and challenges will help you better understand
the development strategies of this team. So far, Samsung has been
maintaining its position in the market, its products deserve to be the
Chaebol of kimchi country and the leading brand of the world smartphone
market.

10
 3. THE INTERNATIONAL STRATEGY OF SAMSUNG
ELECTRONICS
3.1 Samsung Electronics Company penetrates the Vietnamese market
3.1.1 The reason Samsung Electronics entered the Vietnnamese market

From 1987 to 1995, Samsung Electronics saw significant transformations both

domestically and internationally. The ascension of Lee Kun Hee in 1987
marked the start of this transformation. He has made numerous daring moves to
reorganize all current businesses and begin on new enterprises since taking
over as chairman of Samsung Corporation in lieu of his father. Lee Kun Hee
had an aim to make Samsung Electronics one of the top five technological
businesses in the world from the time he was Deputy General Director of
Samsung Electronics until he took over the leadership of the Samsung Group.
Commitment, change, and transformation have transformed the SEC from a
"technical backwardness" enterprise to one that is steadily closing the
technology gap with the world's largest technology businesses and moving
boldly into the world. The global technology market is both difficult and
appealing.

11
Vietnam chose in 1986 to transition from a subsidized economy to a socialist-
oriented market economy. This is an important milestone of the Vietnamese
Communist Party which has totally reshaped Vietnam's social and economic
culture. Between 1986 and 1990, GDP grew almost double the pre-renovation
average of 3.9 percent (1975-1986). It is a time of profound change in the
process of socioeconomic revival and the release of workforce from the old
management mechanism to the new mechanism. It was an era of robust and
unprecedented economic expansion in fact from 1991 and 1995. The average
rate of economic growth was 8.18%. The economy has steadily turned to
manufacturing and services. Annual average increase in industry of 13.3%.
Some sectors were growing highly: in 1995 the fuel sector (including
petroleum and gas) was three times greater, power was 1,6 times higher,
building materials 2,7 times higher, food production was 1,9 times higher. The
service sector in 1995 increased by 80% compared to 1990 (an average annual
increase of 12%). Transportation has progressed, freight transportation
increased by 62%; telecommunications has developed rapidly, postal revenue
and tourism revenue are both 10 times higher; The domestic commodity market
develops, meeting the increasing demands of the society in terms of quantity,
quality and types. The financial and monetary sectors have made remarkable
progress, most notably, high inflation has been prevented and inflation has
been gradually pushed back. The price index of consumer goods and services
decreased from 67.4% in 1991 to 17.5% in 1992; 5.2% in 1993; 14.4% in 1994
and 12.7% in 1995. The scale of social development investment increased quite
a bit. In 5 years, it is estimated that the total investment capital of the whole
society is about 18 billion USD (according to the 1995 price level), of which
the State's share accounts for 43% (including investment through the state
budget, state credit and enterprises). State-owned investment), people's
investment accounts for over 30%, foreign direct investment accounts for 27%.
The rate of foreign direct investment attraction in the past 5 years has increased
by an average of 50% annually; the capital to be implemented is about 1/3 of
the total registered capital under the project. Foreign direct investment (FDI)

12
increased rapidly, by the end of 1995, licensed projects reached over $19
billion in registered capital. The proportion of investment in industry accounts
for 40% of the total capital under the project (if including oil and gas, it
accounts for over 60%), of which more than 60% is in-depth investment.
Investment area is widely distributed over territories. The main form of
investment is a joint venture enterprise, accounting for over 65% of the total
capital; enterprises with 100% foreign capital account for nearly 18%; business
cooperation contracts account for nearly 17%. The State has supplemented and
improved step by step the legal framework for foreign investment, creating an
open investment environment with great potential. Since the early 1990s,
Vietnam has actively and actively integrated into the international economy.
Normalization of relations with the US (1991); accession to ASEAN (1995);
signed the Vietnam - EU Framework Agreement (July 1995).

The growth of the service industry is also a clear demonstration of this. If

before 1986 electricity was quite a luxury concept for most people, by the early
90s electricity was brought to each commune, village, and family. Because of
that, the demand for electronic products is increasing day by day. Meanwhile,
Vietnam only has factories producing light bulbs, electric fans, etc. such as:
Thong Nhat Electromechanical Company, Rang Dong Lamp and Thermos
Company..., products such as TVs, refrigerators... mostly are CBU imports
from Japan are quite expensive, including both new and used goods.

13
According to the socio-economic research of Vietnam from 1986 to 1995
(before Samsung entered Vietnam), Samsung Electronics identified the
potentials of the Vietnamese market and decided to pick the correct product.
Select this country as the next stop on your worldwide business trip. Vietnam is
experiencing significant economic development, and the rate of attracting
foreign investment has expanded fast as a result of the economy's openness.
The political climate is stable, and the government has implemented several
measures to assist international investors in creating a vibrant, open, and
sustainable investment climate. Along with that, in a market with a huge
population, consumer electronics demand is expanding but supply remains
constrained... These are some of the factors influencing Samsung Electronics'
choice to join the market.
3.1.2 Samsung Electronics Vietnam period 1996 – 2008
In 1994, Samsung joined the firm of the Samsung Vina Electronics Co., Ltd,
Vietnam in creating a joint-venture firm (SAVINA). TIE Joint Stock Company
(Vietnam) and Samsung Electronics have partnered to create SAVINA (Korea).
Samsung chooses to enter the Vietnamese market through a joint venture for a
variety of reasons, including lowering risks associated with entering a new
market, reducing political risks, and increasing market penetration
opportunities, but there is one reason why Samsung has yet to enter the
Vietnamese market. The most essential cause is the host country's investment
policy.
At that time, Mr. Nguyen Van Dao, Deputy General Director of Savina and a
member of the Vietnamese negotiation team with Samsung to form a joint
venture, recalls: "It was the period of the first wave of power investment."
Vietnam was flooded with death. Vietnam was poised to join the ASEAN Free
Trade Area (AFTA) at the time, which opened the door to investment.
Vietnam's strategy is to encourage international investors, but a joint venture
between foreign and indigenous firms must be developed to provide a basis for
domestic industry growth.

14
In January 1995, Samsung's first factory in Vietnam located in Thu Duc
district, Ho Chi Minh City officially came into operation. If Savina was the
first wave of investment, Samsung Electronics Vietnam Co., Ltd. (SEV), the
following project with 100 percent foreign money from Samsung, is the second
wave of electronic investment in Vietnam. While Savina received an initial
investment of 11.8 million dollars in 1994, the SEV project in Bac Ninh
received an initial investment of 670 million dollars (operating from October
2009). Samsung increased its entire investment in SEV registration to US$2.5
billion by 2012, establishing itself as the world's largest high-tech mobile
phone manufacturing complex.

Chart 1 - Vietnam LCD TV market

Source: GFK.com
- Create a brand with the highest quality criteria:
The corporation Samsung Vina took a decision: not to introduce outdated items
into Vietnam, even when inexpensive, but only the newest models and adapted
to Vietnamese preferences. Samsung Vina's choice has always supported the
market through items that have been magnificently created, merged with new
technologies and features, which draw consumers' attention.
In 1996, Samsung invested more capital in a color T.V. production line, to
move to the strategy of developing top-quality products, until today the factory
of Samsung Vina grew to five lines and produced 1,5 million products

15
annually, including many different product lines such as televisions, home
appliances and computer screens...
- Product diversification:
Through the process of researching the needs and tastes of customers, the
company realizes that the demand for high-end electronic product lines is
increasing with many types. While competitors only pay attention to one
product category, Samsung has boldly invested and produced many different
product lines to create a rich diversity. That has helped Samsung to surpass its
rivals and profit from the fields it sets foot in.
- Product innovation:
Customer demand is growing, and Samsung Vina, in particular, and businesses
generally need goods to be continually innovated to survive and prosper.
Samsung Vina has invested with elegant, appealing design, and numerous
functionalities in research, development and development of new goods.
Samsung has overcome the short product life cycle that has attracted a
significant number of youthful consumers who enjoy novelty and continual
innovation in product design and functionality by having a high rate of product
invention.
- Pricing strategy:
Along with the application of "Sashimi theory", Samsung Vina applies a
"skimming pricing strategy” aimed at customers who are ready to immediately
buy new products and new models at a reasonable price. Pricing its products in
the mid-range, but still ensuring good quality, is a highly effective strategy for
Samsung when entering the Vietnamese market - a market with a low income
level.
- Distribution network:

16
In Vietnam, Samsung Vina primarily establishes its distribution network via
big retail enterprises and a network of recognized electronics retailers.
Samsung Vina has decided to collaborate with reputed significant organizations
in Vietnam in the initial distribution channel, which is retail enterprises.
Samsung Vina distributes mobile phones via certified distributors such as FPT
Mobile, Viettel, and Phu Thai Group. With computers, Samsung also selects
extremely dependable wholesalers, such as Tran Anh computer and Lam
Phuong computer... Samsung's distributors are all well-known and experienced
companies, which assures that the product is of high quality. Its goods will
have a high degree of customer dependability, pushing the Samsung brand to a
new level.
3.2 Types of international strategy that Samsung has applied
When resources are few, a strategy may be defined as a technique of achieving
a significant goal. Tactics should be utilized to assist strategy and should be
secondary to the ultimate goal of the plan. To reach such dominance, Samsung
has efficiently utilised a range of business tactics on a global scale.
Diversification, expanded potential markets, economies of scale, cost reduction
via comparative advantages, advantageous tax laws, advantageous legal and
regulatory regimes, and ultimately increased profitability are all aspects in
Samsung's international objectives. Samsung implements a range of global
strategies, but they tend to be focused on their global strategic alliances, a large
number of wholly owned subsidiaries, and a large number of partly owned
subsidiaries. Many of these subsidiaries will benefit from global vertical
integration, albeit this will depend greatly on the business division,
geographical location, and product type, as previously stated.
Businesses may grow all around the globe through a number of methods, each
with various degrees of risk and control. For starters, there's the export strategy.
A firm will sell its products to a foreign firm, broker, or organization. After
selling its items to the broker or other entity, the company will have little to no
control over their advertising. This is due to the exporting company's relatively
low investment in its broker, which transfers responsibility and potential profits

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to the broker, often due to a lack of resources, experience, or capacity to learn
about the market in which things are offered. Because the expense and risk of
building such systems would be disproportionately high, this is typically the
best course of action for organizations with minimal or no foreign marketing
expertise. When it comes to exporting, there is always the possibility that the
broker or entity in charge of marketing the products may make bad policy or
judgment decisions that may affect the exporter's brand and product perception.
Many of Samsung's divisions export, but generally not via agents or brokers
over whom they have little or no influence. This is due to Samsung's huge
worldwide network of wholly owned subsidiaries, as well as strategic
agreements with phone service providers, which I will go over in further detail
below. A more typical relationship, as described above, will be pursued in
some of their product lines, such as the export of OLED screen panels to Apple
for use in their iPhone Xs, or the use of Samsung's semiconductors to be sold or
exported into western countries such as the United Kingdom or the United
States, which will be organized directly with foreign manufacturers.
There are also license agreements that permit the production and marketing of
items with a name by a foreign firm. Similar to franchising, but with less
engagement from the original firm, this allows other firms to benefit on your
brand name or design patents. In order to minimize brand damage, the original
firm normally outlines and outlines the operations of selling and production for
quality assurance.
Afterwards, businesses may decide to form a joint venture, which is formed
when two companies form a partnership, with one supplying the products to be
sold and the other possessing extensive local knowledge of their domestic
markets and infrastructure and thus able to provide crucial expertise and tactics
to aid the success of the supplying company's operations. A joint-venture
agreement will typically outline each company's obligations and
responsibilities. This enables enterprises with minimal international knowledge
or experience to advertise their goods and traverse overseas contexts efficiently
with the assistance of a partner's expertise. This increases a company's capacity

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to learn since the necessary information should be easily accessible via the
partnership, and it will transfer tasks to their more capable partner to promote
successful operations. This increases both control and risk in foreign markets,
since a heavy reliance on partners and the quality of commercial ties become
vital to success. Sony exited a joint venture with Samsung in LCD television
technology in 2011, and Samsung purchased Sony's stake in the company for
$939 million. This proved to be a prudent decision for Samsung, as they went
on to dominate the TV business in terms of both market share and quality as
OLED LCD screen technology advanced.
As an alternative to joint ventures, firms may choose to engage in Global
Strategic Partnerships, which are far larger in scope and demand a long-term
commitment from both sides in terms of both time and money. These
operations are carried out in order to develop goods and services that would
allow the company to gain market domination on a global basis. These
partnerships often don't result in things being updated or modified for various
areas; instead, a single market strategy for a product is employed across all
areas in a bid to acquire global market domination. The reason that Samsung
uses this method, is that there is very little variation between models of their
flagship phones sold in different countries, and that they have achieved
significant success in terms of worldwide market share with only minor
promotional tweaks across areas of their marketing plan. As of 2017, Samsung
and Microsoft have forged a strategic partnership in a variety of products,
including tablet computers. In order to effectively compete with Apple's iPad
product line, they are partnering on the Samsung Galaxy Book. This
collaboration will allow for more effectiveness with Microsoft's software
solutions and marketing power in western countries such as the United States.
Through the pooling of technological expertise, this alliance immediately
enhanced the device's interoperability and connection criteria, which were
previously lacking.
Following that, businesses may desire to enter overseas markets by establishing
wholly owned subsidiaries. When a foreign corporation acquires a controlling

19
stake or complete control over a company's operations in a foreign nation and
market, this is known as a takeover. Samsung has a large number of completely
owned subsidiaries across the world. Samsung would offer these companies a
lot of leeway to operate in their home markets, because the skills and
experience of the company's domestic employees should help them make better
decisions in that market. In the UK, these companies will import items from
Samsung's other manufacturing subsidiaries and facilities in Vietnam, then
promote and sell them to UK customers as efficiently as possible. There are
additional R&D facilities built up in foreign nations through companies, such
as the plant in Staines. These are adopted to take use of the diverse skillsets and
expertise provided by a global workforce, as well as to take use of unique local
expertise and understanding of markets to conduct R&D to better assist the
exchange process and customer needs inside each nation. This sort of approach
necessitates a significant time and financial investment, as well as the
company's complete responsibility and risk in international markets. This, in
turn, promotes the largest possible development and profitability since the
advantages are shared by all of the enterprises.
Samsung has vertically integrated wholly-owned subsidiaries in specific sectors
where the comparative benefits of low-cost labor and operations allow for a
greater share of operational income to be saved than by exporting it from their
primary manufacturing facilities through an import tariff. Samsung in Korea,
China and India can produce the products needed for these phones on a
domestic scale and forward them to their other subsidiaries in these national
markets at low cost, with little required logistics to be commercialized and
distributed to consumers. This applies to Samsung in Korea, China and India.

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Businesses may also choose to franchise their activities, which, like licensure
agreements, outsource operations to a separate owner. Franchisees, on the other
hand, are sometimes required to pay a one-time fee for the right to use the
brand name and goods, as well as a royalty fee on sales or profits to the
corporate business. This is particularly popular in the fast-food industry, with
companies such as McDonald's and Domino's Pizza being examples. Samsung
makes extensive use of joint ventures, wholly owned subsidiaries, and
vertically integrated subsidiaries to manufacture products at a low cost via
competitive advantages in areas where tariffs would be detrimental to
profitability, to market and sell their goods effectively globally, with many of
their product lines occupying the global #1 spot, and to market and sell their
goods effectively globally.
3.3 Some stories of Samsung’s business in Vietnam
3.3.1 Samsung’s transnational strategy into Vietnam
When a business is under severe cost pressure and under pressure to act locally,
a multinational approach makes sense. A business using this approach must
aim to accomplish two objectives concurrently:
- Reduce costs;
- Take into account regional disparities.
When entering the worldwide market, Samsung established a transnational
approach with the objective of fulfilling the particular demands of each country
while remaining price competitive with rivals.
Why does Samsung have such a low cost advantage in the market? Apart from
standardizing considerations, Samsung has tailored its strategic moves to each
market. Samsung, for instance, invests in Vietnam with the goal of developing
a complex for producing high-tech items in a convenient location such as Bac
Ninh. As a consequence of the Vietnamese government's incentives for a
"national important project," infrastructural incentives, and labor expenses,
Samsung's manufacturing costs are dramatically lowered. Low-cost imports
and tax incentives for high-tech projects...

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 3.3.2 Vietnam – Samsung’s potential market and success story of
Samsung Electronics
Vietnam is a critical investment location for Samsung as part of its
globalization strategy. Samsung Vina began operations in 1996 with a revenue
of 9 million USD and grew to approximately 400 million USD in 2007, with
exports accounting for 88 million USD. By 2010, the corporation hopes to
generate a revenue of $1 billion.
According to GFK figures, Samsung Vina had 36.7 percent of the LCD TV
market, 26% of the light TV market, and 19% of the mobile phone market in
June 2008. Samsung continues to be the market leader in side-by-side
refrigerators, MP3 (July), and other items.
Samsung had a very successful year in the computer sector in 2007. Samsung
came in second place in terms of multifunction printer market share. Samsung
LCD computer displays had a 250 percent increase in sales, while generic
computer monitors had a 40% increase.
Samsung Vina continually introduced the debut of new products from early
2010 till the beginning, including: Omnia i900 touchphones, F480, Soul U900,
Giorgio Armani – Samsung, Innov8 8MP camera phones or stylistically
designed telephones, LiveLoud i450, F330, and F250.
Vietnam is known to support many of its long-term and consistent community
activities, including: The Samsung DigitAll Hope Program (2003- 2006)
promotes technology to shorten disability gaps and the society in the
community in Vietnam; its program has lasted from heart to heart until 2011;
walks with poor student children; Nguyen Duc Canh Scholship...

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4. EXPERIENCES AND LESSONS FROM SAMSUNG
ELECTRONICS
With the International Business Strategies that Samsung Electronics uses, we
can see that it has been operating quite effectively for a long time and has
brought the company scale to a high position in the electronic technology
industry as it is today. Ambitious to penetrate into many new and potential
global markets, the strategies considered and implemented by Samsung
Electronics are aimed at diversifying customers and markets, reducing
production costs and increasing sales reasonable profits. Besides, the company
has also met the mission, values and direction that it has declared from the
beginning: to contribute to the development of the national economy;
prioritizing development; creating jobs for many human resources;… The
company has cooperated with many potential partners and distributors of
prestigious products to consumers, which is also what Samsung Electronics has
done a lot good and should be promoted.
With the previous analysis of the rationale for the strategy that Samsung uses, it
can be seen that the company has a strong and good core capacity to be able to
capture an even larger market share, but vice versa, Samsung's weaknesses are
barriers and challenges while finding strategic solutions. For example, the
company will not always succeed with the strategy it has set out when entering
a new market, with hundreds of competitors, technology companies are
growing strongly around the world, their fierce competition can disrupt the
balance just as much as the images Samsung has tried to build before.
Therefore, Samsung needs to implement strategies in a reasonable way, not to
completely change the basic strategies used, but to adjust them to suit the target
customers and the market that Samsung is using. company is aiming for.
Another example is that communication and marketing strategies should be
changed in different places to fit the culture and customer values there, but still
keep the message that the company wants to convey. This will likely be one of
the challenges that Samsung Electronics poses in the process of implementing
and re-planning the international business strategy that the company uses. Once

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this issue is resolved, the company will have circumvented a major weakness
and can expect a consistently strong position in the industry, much less
competitive impact and other issues arising.

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