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SAMSUNG ELECTRONICS

South Korea

D.Ramadevi(7064)

Samsung Electronics
• Established in January, 1969 • 1970‟s: Bet the future on electronics
– laid the groundwork for electronics in Korea – helped the domestic economy grow – paved the way for exports

• 1980‟s: A more comprehensive electronics company
– established plants in Portugal and US – established Semiconductor and Communication corporation – began memory chip business

• Early 90‟s: Integration and Globalization • Mid-Late 90‟s: Implementing new management strategies • New Millenium: Digital Vision

Vision 2020 Samsung Electronics' vision for the new decade is, "Inspire the World, Create the Future."

Vice Chairman: Choi Gee-Sung • Chief Financial Officer: Yoon Ju-hwa • Chief Operating Officer.Management and board of directors • Chief Executive Officer. President: Lee Jae-Yong .

Operations 4 Core areas  Digital media  Semiconductor  Telecommunication network  LCD digital appliances .

PRODUCT Price 4P’s IN MARKETING PROMOTION Place .

multifunction cellphones. . Now. plasma TVs.Product In 1970. capturing the number one position in the global memory chip market and pioneering the development of flat-screen displays. and other digital devices. Samsung Electronics made cheap 12-inch television sets under Sanyo label.

DVD players. and OLED displays •Home Electronics : TVs. MP3 players. laptops. laser printers. washing machines. and faxes machine. and •Home appliances : refrigerators. SDRAM. set-top boxes. vacuum cleaners. UMPCs. CD and DVD drives. microwaves. and projectors •Mobile devices : mobile phones. and air conditioners. and hard drives •Digital displays : LCD displays. and camcorders •Computing products : monitors. ovens. home cinema systems. Blu-ray players. Plasma displays. digital cameras. flash memory.Product •Semiconductors : DRAM. .

product . Samsung invested a lot of money in research and development. in order to meet what customers needs and wants.“design awakeness all your senses”. Samsung spent about 9% of revenue. in 2005 in research and development. amounting to around $5billion.

SAMSUNG ELECTRONICS United States Top 5 Innovators 2008 Rank # of Records Company Country of Origins 1 2 3 4 5 7404 6576 2931 2421 2019 SAMSUNG ELECTRONICS IBM MICROSOFT TOSHIBA CANON KOREA UNITED STATES UNITED STATES JAPAN JAPAN .

part of Thomson Reuters : The world’s leading source of .SAMSUNG ELECTRONICS Europe Top 5 Innovators 2008 Rank # of Records 1 2753 Company SIEMENS Country of Origins GERMANY 2 3 4 5 2619 1475 1250 905 BOSCH SAMSUNG ELECTRONICS DAIMLER RENAULT GERMANY KOREA GERMANY FRANCE These rankings comes from IP Solutions.

Samsung sells product with price that worthed. Samsung is in the process of building an image as “a stylish. high quality brand commanding a premium price” . if we compared it with the functions. benefits and technology.

Australia. Not only in Asia. PLACE One of Samsung’s store in America . but also in America.Samsung has its own stores which can be found around the world. Europe. and Africa. but also feel the experience of digital lifestyle. At the stores. we not only can buy the product that sold.

who known as quality-oriented electronics speciality stores.PLACE • Samsung also has other distribution channels: Best Buy and Circuit City. . • Bell Microproducts. who known as one of the world's largest storage-centric valueadded distributors.

Internet advertising Product placements Sponsorships .

Product placements • Hotel chains (such as Hilton). where most in-room technology was now dated and required early replacement to retain competitive advantage. .

.sponsorships • The Summer and Winter olympics games • Chelsea FC shirt sponsorship deal • Horse jumping (Samsung Superleague).

the firm devoted nearly 15 % of its media budget allocated to page topping banner ads on over 400 Internet sites • Link to mainstream entertainment : Fox‟s movies Fantastic Four • Display in the film .Internet advertising • In 2005 .

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. in 2009 according to Interbrand Global value of Samsung‟s brand is US$ 17.953 million.Strengths • Existing knowledge and experience of electronics market • Strong global presence with strong brand and customer base. which is US$ 11. Sony.518 million compare its competitor.

2009 Rank 2008 Rank Brand Country of Origin Sector Brand Value Value Value .

Strengths (cont’d) • Well diversified and differentiated product line. to meet changing customer needs. • Design with an attractive styling that catching the pulse of customer. as the result of the development of Samsung„s new products that involve team of product designers. . Samsung electronics has 4 business areas to cover customer electronic needs.

increase to 26. • It is the biggest manufacturer of liquidcrystal display panels with 23% share in 2005. Memory chip Industry is 27% in 2009 compare with 21% at the end of 2008.2% in Q1 of 2009.1% in 2009. 2009 Figures .Strengths (cont’d) • Market share: Global market share of mobile phone increase from 18% in 2004 to 19.

flash memory. optical storage drives .Strengths (cont’d) • Loyal customer & customer satisfaction: Samsung Electronics reports that its “Anycall” mobile phone topped the American Customer Satisfaction Index (ACSI) (2005) • Cost Competitiveness by mass Production Samsung Electronics expanded production dramatically to become the world's largest manufacturer of DRAM chips.

. and in improving its position from the third to second player in mobile phones with their innovative products.Strengths (cont’d) • Technology With an excellent research and development capabilities. It resulted in global leadership in the television segment. they spend a high percentage of revenue on R&D.

weakness • Customer perception of weak product attributes like Durability • Different perception on “worth the price” product on each person that difficult to cover. • Not pro-active coming out with unique and leading model • Focus on mass market instead of niche market .

353.604 2.66% Consolidated Financial Statement years ended Dec 31.17 % 85. 720.848 3.834.507.461. 2007 and 2006 (audited report) 1 US$ = 938 Won . 959 6.073. 115 6. 914 5.762 6.844 3.252.817 2.weakness (cont’d) • Huge investment on Research & Development 2007 (Mill won) 2006 (Mill won) Sales Research expenses Ordinary development expenses Total R&D R&D/Sales 98.714.

More Developed Countries: 2009 .Opportunities • Increasing on electronics consumer market • Strong customer demand for innovative products & value-added features • High % of Younger population. which can be expand a new market now and in the future Population by Age and Sex.

6% 14.8% .3% 21.Threats Increasing competition  DRAM (Q1-2009) Rank 1 2 3 4 Company Samsung Hynix Micron Technology Elpida Memory Market Share 34.2% 5 Qimonda 4.6% 14.

8% 10.2% 13.3 % 7% .2% 9.• Increasing competition – LCD TV (Q3-2008) Rank 1 2 3 4 5 Company Samsung Sony Sharp Corporation LG Phillips Market Share 20.

4 % .Increasing competition  Mobile phone (Q1-2009) Rank 1 2 3 4 5 Company Nokia Samsung LG Motorola Phillips Market Share 36.1% 9.9 % 6.2 % 5.2% 19.

886.566.• Decreasing Operating profit margins 2007 (Thousand US$) Sales Cost of Sales 105.566.482.107 64.452. General and Adm exp Operating Profit Gross Profit Margin Operating Profit Margin 29.995 75.6 % Consolidated Financial Statement years ended Dec 31.005 2006 (Thousand US$) 91.600 17.990 19.1% 27.025.03 % 10.507 Gross Profit Selling.732. 2007 and 2006 (audited report) 1 US$ = 938 Won .018.403 28.508.436 30.750.587 9.05 % 9.164 9.

makes demand for electronics product weaken. .• Economic Slowdown.

059 billion USD  TOTAL ASSETS: 135.944 billion USD  PROFIT: 12.Financial Overview  REVENUE: 148.744 billion USD .131 billion USD  TOTAL EQUITY: 84.

Market share .

Major customers • • • • • • Sony Apple Inc Dell HP Verizon communications AT&T Inc .

.Thank u….