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Table of Contents
Contents
Table of Figures.......................................................................................................................................................5
3.1. Vision...................................................................................................................................................9
3.2. Mission................................................................................................................................................9
3.3. Core values.........................................................................................................................................10
3.4. Objectives..........................................................................................................................................10
a) Strategies to development.........................................................................................................................10
b) Orientations in business.............................................................................................................................12
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5.3. Target customer.................................................................................................................................22
a. About technology.......................................................................................................................................22
b. About Mobile communication....................................................................................................................23
5.4. Analyze the scope to achiveve the objectives.....................................................................................23
5.5. Marketing strategy.............................................................................................................................26
Table of Figures
Figure 1: Source: Samsung (2020)
Figure 6: Source: tuoitre.vn ( Mr. Choi Joo Ho- General Director of Samsung VN)
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Figure 7: Source: Business Asia-Pacific Ocean (2018)
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I.
SAMSUNG GROUP
Romanized name Samseong ( samseong)
Type Private
Industry Conglomerate
Headquarters 40th floor Samsung Electronics Building, 11, Seocho- daero 74-gil,
Seocho District, Seoul, South Korea
Website https://www.samsung.com/vn/about-us/company-info/
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Technology is one of the most rapidly expanding and significant industries, helping to shape
the global economy, drive change, and establish new trends nowadays. Companies must
operate in a fiercely competitive environment with rapid changes in science and technology;
products with modern technology are born from large corporations in the word to meet the
needs of people. In the world, there are many corporations and companies that manufacture
science and technology products. This comes down to the fact that it very difficult for
investors to choose a worthy company or corporation to invest in. According to Surfacepro.vn
page shared that Samsung Group is one of the ten largest technology corporations in the
world. Samsung Group was founded in March 1938 by Lee Byung- chul is a businessman and
industrialist Korean. The following is a report that analyzes the company’s current status.
This assignment will have an overview of all element of Samsung Group in the subsequent
evaluation so that investors will consider whether to invest or not to invest in this
corporation.
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In interview according to Lee Kun- Hee, son of the founder of Samsung group revealed that he is
proud that Samsung attracts Korea’s top talents. Initially, Samsung was a retail company. This day
Samsung to maintain a stable position in the technology industry in the world and Samsung is highly
appreciated in Vietnam. Samsung set certain purpose to accomplish in 2021 with the slogan
“Inspire the world, create the future” that sustained. Facing the great impact of Covid-19,
Samsung companies in Vietnam are also affected. Even so, the Samsung multinational group
continues to development strongly. Samsung’s high profit figures in Vietnam in 2020. Samsung
stock price is 69,700 won (63 USD), an increase of 0.29% from 57,400won in early November 2020.
According to the WSTS forecast, the worldwide semiconductor market would rise 5.1 % this year to
433 billion USD, up from the previous forecast of 3.3 % growth, and will grow by 8.4 % in 2020.
3.1. Vision
It has been suggested by Lee (2020), his goal is to attract talent from all around the world so that
Samsung may remain one of the world's most successful firms. In addition, Samsung aspires to develop
optimal technologies and efficient processes in order to establish new markets that enrich people’s
lives and maintain its position as a market leader.
3.2. Mission
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The mission guides all of Samsung’s present action. According to Samsung .com page
commented that Samsung has a simple corporate philosophy: devote its expertise and technology to
developing exceptional goods and services that improve the word.
The success of a company is built on its people. We do everything we can to support each
person's career, ensuring that they attain their maximum potential and accomplish their intended
outcomes. (Samsung page, 2020)
3.4. Objectives
a) Strategies to development
Samsung has developed from a tiny company to a leading corporation in technology industry after 83
years of existence and strong development. Furthermore, it out forms numerous well-known names and
businesses around the word. Samsung also aspires to be a dependable partner of enterprises in the next
era. Samsung is dedicated to investing time, effort and insight into providing users with the finest digital
experiences possible. All of our efforts are motivated by a strong desire achieve excellent quality in all of
our products and services.
Business
Samsung focuses on investing in development and building an innovative ecosystem.
Samsung invest in developing fields in the future, inventing and using modern
technologies to change the industry, telecommunications technology is also upgraded
to a new generation. It bringing many new opportunities for robotics technology, self-
driving car.
According to Samsung page, in 2018, Samsung has invested a total of 25 trillion KRW
on AI,5G, automotive electronic components, and biopharmaceuticals. To maintain
its worldwide leading position, Samsung continues to invest in the semiconductor and
display industries.
Samsung is at the forefront of creating and stimulating a digital economy ecosystem
of creative fields. Samsung had plan to expand the business incubator program to
include new business ventures.
Samsung’s objective to individual consumers is to provide the finest technological
and costomer serice experience possinle. Samsung will create good experiences for
their customes by implementing innovative technology management platfrorm
solution.
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Figure 3: Soure: Samsung (2018)
Technology
Samsung pioneers industrial development in the following fields: An industry,
telecommunications technology, artificial intelligence (AI) and electronic components
for the future generation of cars (aystem-on-chip) without humans drive.
According to the book Lee Kun-Hee and Strategic Choices and Miracles Samsung cites
that Samsung has chosen to invest in design from the very beginning. This helps
customers have a great experience from beautiful product design to product quality,
improving customer experience.
People
According to Evehr page shared, “ The foundation for this success is the effectiveness of Samsung's
human resource management strategy from the time of chairman Lee Hun Kee to the present.”
For starters, varied working hours are used by Samsung subsidiaries. Given the fact
that Samsung want employees to spend time with their families and themselves;
productivity is higher when the mind is relaxed.
Get rid of the “ command” mentality
Employee benefits that are diverse
Human resource management strategies foster a flexible workforce that can adapt to
a variety of working conditions
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Figure 4: Source: Samsung Viva
b) Orientations in business
Technology sector
About the international market: Samsung is to invest 240,000 billion won ($205.7
billion) in three core business categories, including semiconductors,
biopharmaceuticals, and artificial intelligence, as well as hire 40,000 people in the
next three years. Samsung expects to have many new steps in the future and have
a strong foothold in the word technology market.
For Vietnam domestic market: Since 2008, Samsung Vietnam has been investing
in the Samsung Electronics Vietnam (SEV) Factory. Samsung Vietnam has set an
export turnover target of around 58.5 billion USD for 2019, with a target of more
than 60 billion USD for 2020. Samsung Vietnam focusing on investment mainly on
the production line to expand the investment scope. Establishing a research and
development center (R&D), strengthen cooperation with Vietnamese businesses,
participate in public infrastructure projects.
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Figure 5: Source: Financial Supervisory Service (2021)
To ensure long-term success, Samsung Group has continued to invest in and provide high-value-add
services while also developing essential technology. Samsung Vietnam has been rapidly increasing its
investment. Samsung has no large-scale investment plans in the near future, instead focusing on
stabilizing plant operations and enhancing efficiency and product quality. According to Choi, Samsung
Vietnam's General Director pointd out that to date, we have released 100% of the entire permitted
capital of $17.5 billion USD to 6 companies around the country, while continuing to invest hundreds of
millions of dollars each year.
Figure 6: Source: tuoitre.vn ( Mr. Choi Joo Ho- General Director of Samsung VN)
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Telecommunications sector
Telecommunications Services: Samsung’s telecommunications devices
and solution are heavily enhanced across the globe. Thereby, on October 6,
2017, Korea and Vietnam had a meeting and the general director of Samsung
Electronics Korea reveal, “ Samsung is very interested in expanding
investment in the telecommunications field in Vietnam”. Samsung
broaden the initiative to include future technology sectors such as artificial
intelligence, 5G, and the Internet of Things.
Samsung plans to develop its AI research capabilities on a broad scale, bringing
the total number of AI researchers in its AI centers to 1,000. In addition, the
company would make significant investments to establish a global presence in
the high-end market for 5G CPUs and related equipment.
Biopharmaceutical industry
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Figure 6: Source: Samsung Newsroom(2017)
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Figure 7: Source: Business Asia-Pacific Ocean (2018)
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Figure 8: Source: Samsung corporation (2021)
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4.4. Private corporative
Samsung Corporation is a private corporation. The chairman of the corporation is Lee Kun- Hee.
According to Lao Dong page share that Lee Kun-hee, the late Chairman of Samsung Electronics, owns
4.18 percent of the corporation, 20.76 percent of Samsung Life Insurance, 2.88 percent of Samsung C&T,
the group's parent company, and 0.01 percent of Samsung SDS. Meanwhile, Samsung Life owns an 8%
investment in Samsung Electronics, which, when coupled with other affiliates, amounts to more than
20% of the company's usable shares.
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its ability to discover and create new opportunities in a turbulent market. Samsung is also a
senior partner of industry leaders such as Microsoft, BlackBerry, Apple, SONY, HTC, among
other.
In Vietnam, Samsung has operations in sixty-three provinces. Samsung's goal is to keep improving in
order to reach the worldwide market. Samsung has operations in a number of countries across five
continents. Creating and providing the greatest possible experience for users in all aspect
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Figure 12: Source: Cafef.vn (2021)
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Figure 13: Source: Thế giới di động (2020)
Samsung executives frequently refer to their competitive edge in Korea and Vietnam in general in
offering information technology services to overseas markets as "cheap product value but high quality."
a high level of quality, a large number of human resources, and a high level of professional qualifications
This results in technology products of high quality, innovation, and dependability, as well as sales and
marketing techniques that are cheap
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Figure 14: Source: VnReview.vn (2020)
a. About technology
Samsung generally sells technology items to its clients, such as phones, televisions, and refrigerators.
Samsung's product lines for young people include technological innovations such as wireless charging for
personal security and artificial intelligence (AI), and so on.
Samsung is a well-known technological brand around the world. Samsung has a large human resource
pool, not only in Vietnam but around the world. Customers may expect the best experience in future
innovative products from Samsung. About technology network Samsung focuses on entertainment
technology. Especilly the telephone lines are changed continuously over time to suit the purpose of use
of each customer. In Vietnam, Samsung is also a major supplier of phone and computer components.
This makes a substantial contribution to the country's development. According to The gioi di dong page
point out that Samsung is always in the top 10 market share in Viennam.
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Figure 15: Source: Canalys (2020)
Samsung establishes its scope objectives. They lay out the numbers that must be met in order to make a
profit. Encourage enterprises to attain their objectives. Samsung takes customer feedback and reviews
into account while repairing goods (Putting customers as the main goal). The outbreak of the pandemic
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in Vietnam begins in 2021. This highlights the significance of technological devices much more than
before. Communication, research, work, and transaction are all functions performed by electronic
devices. We recognize the significance of technology and the creation of technologies that can
effectively respond to the epidemic at this time.
In entertainment, information technology plays a significant part in the bonding between everyone in
the family. It also helps us to maintain stable security and perform tasks without being interrupted by
difficult conditions. From here, Samsung is expected to make great strides in modern technologies,
contributing a significant part to the development of the country in 2021. Creativity in product design as
well as images Unique marketing (KOL, PR, Tiktok). This makes it easy for consumers to directly access
Samsung products.. According to Choi (2021) revealed that in the backdrop of the COVID-19 outbreak,
Samsung VN's overall export turnover in 2020 was around 57 billion USD, a relatively positive
performance.
Look at the Samsung factory revenue chart. Although 2020 was a tumultuous year for the covid 19 outbreak,
the total revenue of main factories in Vietnam increased revenue of profitable Samsung factories at Samsung
Factory in Ho Chi Minh City (SEHC), Samsung Display VN Bac Ninh (SDV). Two factories, Samsung Electronic
Bac Ninh (SEV) and Samsung Thai Nguyen (SEVT) factory, saw a decrease in revenue.
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Technology businesses are already establishing new business units in the Cloud since it is regarded
the most effective tool for storing photos of contact data or securely copying vital data. clever
computer and cloud Samsung uses Cloud in its technology devices as well. According to Justin
Denison, Samsung Electronics Americas' Senior Vice President of Product Strategy and Marketing
shared that Samsung's dedication to creating devices that improve user connectivity and productivity
while also allowing businesses to work safely. Samsung Cloud, according to The gioi di dong, is a
location for Samsung phone users to store vital data like as contacts, call logs, messages, images, and
so on. Samsung Cloud protects the safety of data that is automatically backed up. Samsung has a
number of objectives to meet in order to satisfy the needs and interests of customers, including
dominating the domestic technology market in the future. Ruth Porat, the chief financial analyst,
spoke at the Conference of Analysts.
The performance of this platform has almost beaten enterprises. The platforms were installed by 93
percent of the 554 companies who participated in the survey, had 87 percent chosen for a mixture of
public and cloud.
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Figure 18: Source: DTS Telecom
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Figure 19: Source: Thethaovanhoa.vn (2021)
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Figure 19: Source: MSN tài chính (2021)
Earnings report clearly shows revenue, earnings and profit margin (in %) over 4 years at Samsung
Electronics.
In 2020, the impact of covid 19 has caused considerable damage to the production and business process
of Samsung. However, in 2021, the numbers have completely changed in a more positive and developed
direction. ( SMN, 2021)
According to the balance sheet on the Investing page, total short-term debt payable in 2021 is
72,461,451 lower than in 2020 is 73,046,405. Thus, Total liabilities in 2021 is 110,617,143 and
increased
over 2020 is 107,846,602 ( Annual report, 2021)
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Figure 20: Source : Đức Quyền (2020)
Besides, also in the consolidated balance sheet data, Total equity in 2020 is 267,670,331 and In 2021 is
274,160,526. Thus, the total equity from 2020 to 2021 increases to 6,490,195
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Figure 21: Source: Phương Ly (2021)
Samsung is not known as a little company, but rather as a global brand, hence its human resource is
enormous. In 2008, there were just 422 individuals working for Samsung in Vietnam. On the island of
170,000 inhabitants, however, that number has yet to be determined. In the second year of 17 statistics,
there are 320,671 individuals employed by Samsung worldwide. ( Fast Facts, 2019).
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Figure 22: Source: Ron Amdeo (2014)
Engineers and technology specialists with skills in information technology are in charge. For young
people looking for good work possibilities, Samsung Group is an excellent choice. Samsung has a large
pool of highly qualified employees with a variety of information technology bachelor's and master's
degrees. Samsung has also formed partnerships with a number of well-known technological companies,
including Apple, Amazon, Microsoft, and others, resulting in numerous job possibilities and the
development of talent.
Samsung announced a goal in 2021 to directly hire 10,000 additional workers than the original 30,000
people it planned to hire in the country. Samsung's assistance in resolving the problem of youth and
working-age unemployment, which is a present issue in the context of a global economy still in crisis
owing to the extended COVID-19 epidemic. In a broad sense. Because bachelors and competent students
go abroad to work, this also helps the country avoid a "brain drain." According to a Samsung official, the
investment of 180,000 billion won (US$154.3 billion) is planned to create jobs for around 560,000
people, contributing significantly to the development of a social safety net.
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Samsung Group recently announced a plan to invest 206 billion dollars in three core business areas for
expansion between 2021 and 2022. Samsung fosters strategic business in three semiconductor
networks: biopharmaceutical, artificial intelligence, and semiconductor networks. In addition, during the
next three years, the company plans to hire 40,000 employees.
According to Bnews (2021) pointed out that Samsung will invest around 150,000 billion won ($128.6
billion) in the semiconductor chip sector to maintain and develop its position in the system
semiconductor chip business. Samsung has invested about 20 trillion won ($17.14 billion) in biological
domains including biopharmaceutical production (CDMO), as well as high-tech industries like next-
generation telecommunications networks (5G, 6G), artificial intelligence (AI), robots, and
supercomputers. The covid 19 pandemic severely harmed the Vietnamese economy in the second year
of No 21. Samsung Vietnam, on the other hand, continued to actively discuss the government's
regulations on epidemic prevention and control methods, as well as ensuring safety. The entire facility,
as well as efforts to preserve production consistency and a commitment to meeting the revenue target.
More than ever, the sector of semiconductor technology is being scrutinized. This is due to the fact that
it contributes a significant portion of Samsung Group's income. As a result, Samsung Electronics' stock
rose rapidly on the Korean stock exchange in late 2020 and early 2021, owing to the semiconductor
industry's bright prospects. Samsung Electronics' stock increased 0.29 percent, finishing at a new high of
$63. Samsung Electronics' stock price also crossed 70,000 won for the first time during this period,
reaching a high of 70,500 won at one point, compared to 57,400 won in early November 2020. According
to the WSTS (2021) forecast that the worldwide semiconductor market will grow 25% in 2021 to $551 billion,
compared with a previous forecast of $527.2 billion growth. After getting encouraging data for the second quarter
of 2021, the organization updated the growth of the semiconductor market in 2021 from 19.7% to 25.1 %.
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Figure 23: Source:Bloomberg (2019)
Since its inception, Samsung has focused on building foundations for modern technology and product
optimization. Samsung's changes are solutions for the corporation to build trust with customers.
According to Mr. Lee Kun-Hee, Samsang's founder and executive once said that "Samsung is not number
1 or number 2, it is only rank 1.5" (at Beijing Conference, 1993). Samsung focuses on developing areas
such as semiconductors, artificial intelligence (AI) technology, Samsung Cloud, machine components,
technology gadgets, and cooperation in the production of driverless cars. Semiconductor is the industry
that brings huge revenue and profit every year for Samsung.
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of the company's operations. However, because SAMSUNG is a massive organization,
Lee Kun Hee "decentralizes" leadership to subordinates in addition to monitoring.
Samsung is a large global information technology corporation with an international
scale
Organizing the management apparatus of the Samsung Group is based on the
management apparatus' established functions and tasks to organize the forces,
structure, build the model, and create the overall management system. The
corporation's management functions as a cohesive unit.
Samsung has a general split into small parts based on the following criteria: quality
criteria, and those parts conduct specific duties that are separate yet closely related to
one another in order to fulfill the organization's shared aim.
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According to the organizational structure of the management apparatus at Samsung
Group, it is shown that the functions of each department have their own tasks, thereby
orienting the work of each department at the company.
SWOT is a collection of abbreviations of the first letters of English words: Strengths, Weaknesses,
Opportunities and Threats . The SWOT analysis model (or matrix) is a well-known business analysis
model (or matrix) for all firms looking to better their condition and lay sound development foundations.
According to Wikipedia share, “SWOT analysis includes: establishing business principles, SWOT analysis,
defining strategic goals, forming strategic goals and plans, determining strategic control mechanisms”.
The SWOT matrix is a tool to help famous companies like Samsung, Vinamilk, Vingroup, FPT, Viettel, etc.
Start planning a marketing program or business strategy effectively and accurately. Many large
enterprises in the world as well as in the Vietnamese market use SWOT to grasp the strengths,
weaknesses, opportunities and challenges of businesses. This helps them maximize their advantages and
avoid possible risks
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Samsung is a global technology brand that is considered the second largest consumer electronics
company in the world. Up to now, the number of employees at Samsung is more than 320,671 thousand
(2018) and possibly more. Annual revenue at Samsung is about 225 billion USD. Profit and net income
according to Brands statistics in 2018 was 41 billion USD. According to the Brands page revealed that the
total revenue and resources of Samsung group in 2017 was very large, it accounted for about 15% of
Korea's GDP. Samsung from a small brand in Korea is not known to many people and has no prospect in
the technology industry to reach out to the world. Now Samsung's industrial technology industry has
become the world's largest manufacturer of mobile smartphones. It is sold in many different models and
has branches operating in over 70 countries. Samsung's success partly comes from nine business laws
that apply the SWOT matrix model.
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Investing in research and development: Samsung always focuses on human resources
to promote comprehensive innovation in the research and development of new
technologies. The staff is highly qualified and has a deep understanding of information
technology networks. Because of this, Samsung always has products that are strong
enough to compete with other competitors. Products such as televisions, cameras,
phones, technology components, PCs, laptops and others. In addition, Samsung
focuses on building research and development (R&D) centers. According to the Brands
page, Samsung has 34 active research and development (R&D) centers around the
world.
The brand has won many awards: Samsung is known as a pioneer brand in the field of
information technology, so in recent years Samsung has won many great awards for
its services.
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Figure 27: Source: Ngan (2020)
9.2. WEAKNESSES
It is primarily reliant on the US market: The competitor that Samsung competes
with today is Apple, the most popular and famous brand in the US. According to
statistics, Apple and Samsung consume more than 70% of technology phones in
the United States. In the US, the economy is very unpredictable and a recession
could put Samsung in jeopardy in this market. So this is also the reason that
Samsung focuses on Asian and European markets to avoid unnecessary risks if the
US economy turns bad.
Sales of smartphones are declining: In recent years, the number of Samsung
products sold has decreased. Although profits still increase from the
semiconductor business, in many countries more and more famous phone
companies are emerging with new prices and quality products. This makes a
number of customers using Samsung decrease day by day. Especially during
the covid 19 pandemic.
9.3. OPPORTUNITIES
Proposal for Protection: Samsung is ready to debut the 'Three Protection
Proposal,' a new air conditioner that combines modern technology with
immaculate construction. Consumer retention will be maximized if products are
oriented towards a certain customer base.
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HRM: Samsung always has a plan to manage human resources in the most
effective and optimal way with good management policies. On the other hand,
employees who do not achieve high performance in work will be fired, as well as
five to 10% of excellent employees will be trained and trained to become
managers or senior employees. Employees who work for the third year or more
and achieve good results have the opportunity to experience at major Samsung
headquarters globally.
Acquisitions and diversification: Quality new products and keeping pace with
globalization are what Samsung aims to diversify Samsung's products. This is the
main cause for customers to be confused with old products. Diversify to suit each
customer. It is critical that Samsung should not make the error of limiting itself to a
single market. To date, any Samsung product that contains a flaw has been
recalled globally, resulting in mass destruction in order to protect users. According
to EveHR page pointed out that when the SH-700 series was found to be defective
in November 1993, or when the paint quality of the Galaxy S3 case was not as
smooth and attractive as the model, and more than 96 percent of the Galaxy Note
7s were damaged, there were recalls and product cancellations. Due to a fire, this
item has been recalled.
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Figure 29: Source: Cafef.vn (2018)
9.4. THREATS
Argumentative: Currently, Samsung is facing heavy criticism from international
consumers for a number of reasons such as tax evasion. Controversial cases about
Samsung and its rival Apple. Infringement of copying you is Samsung's right to
Apple, causing Samsung to pay damages of 1,049 billion VND to Apple.
Boosted competition: The era of increasing industrialization, the Samsung brand is
increasingly facing more and more competitors such as Huawei, Xiaomi, Oppo,
Apple, rival companies all have plans to develop their products. me . This threatens
a certain number of Samsung customers. According to Brands page shared that
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rivalry has reached new heights, particularly among competitors in the consumer
electronics, smartphone, and computing industries.
Threats from the law and regulations: Currently, the world is getting more and
more customers with technical technologies. Government agencies began to
increase the legal and regulatory requirements for technology-related products,
especially tax payments. Samsung is no exception; From 2000 to now, Samsung
has been constantly involved in tax evasion. According to Law Life news revealed
that the Samsung boss is accused of evading taxes of 8.2 billion won ($7.5 million
USD) by the authorities. Lee Kun Hee allegedly manipulated staff accounts to name
roughly 400 billion won, or 367.3 million USD, according to police.
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products have global influence. Because of that, choosing Samsung as one of the professionals to invest
in is a right decision for businesses who are learning about this corporation.
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