SAMSUNG

For over 70 years, Samsung has been dedicated to making a better world through various businesses that today bridge advanced technology, semiconductors, skyscraper and plant construction, petrochemicals, fashion, medicine, finance, hotels, and more. Today, Samsung Electronics, leads the global market in high-tech electronics manufacturing and digital media. Through innovative, reliable products and services; talented people; a responsible approach to business and global citizenship; and collaboration with partners and customers, Samsung is taking the world in imaginative new directions.

HISTORY:
From its origination as a small export business in Taegu, Korea, Samsung has grown to become one of the worlds leading electronics companies, specializing in digital appliances and media, semiconductors, memory, and system integration. Today Samsung's innovative and top quality products and processes are worldwide recognized. The digital age has brought revolutionary change and opportunity to global business, and Samsung has responded with advanced technologies, competitive products, and constant innovation. Samsung sees every challenge as an opportunity and believes to be perfectly positioned as one of the world's recognized leaders in the digital technology industry. Samsungs commitment of being the world's best has won No.1 global market share for 13 of its products, including semiconductors, monitors and CDMA mobile phones. Also, it has made historic advances in research and development of overall semiconductor line, including flash memory and non-memory, custom semiconductors, DRAM and SRAM, as well as producing best class LCDs, mobile phones, digital appliances, and more.

VISION 2020:
Samsung Electronics vision for the new decade is, "Inspire the World, Create the Future." This new vision reflects Samsung Electronics commitment to inspiring its communities by purchasing Samsung's three key strengths: New Technology, Innovative Products, and Creative Solutions and to promoting new value for Samsung's core networks Industry, Partners, and Employees. Through these efforts, Samsung hopes to contribute to a better world and a richer experience for all.

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Samsung has also mapped out a specific plan of reaching $400 billion in revenue and becoming one of the worlds top five brands by 2020. For this, Samsung has also established three strategic approaches in its management: Creativity, Partnership, and Talent. Samsung is also excited about the future. With completion of previous accomplishments, samsung looks forward to exploring new territories, including health, medicine, and biotechnology. Samsung is committed to being a creative leader in new markets and becoming a truly No. 1 business going forward.

SAMSUNG PROFILE 2011:

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2011 FINANCIAL HIGHLIGHTS:

AMOUNT IN BILLIONS Net Sales Total Assets Total Liabilities Total Stockholders Equity Net Income DOLLARS 220.1 343.7 202.6 141.1 21.2

BUSINESS OVERVIEW:
Visual display business: TV that evolves you and your family Digital appliances business: Premium smart appliances that care for the home Mobile communications business: Smart devices, making a life extraordinary IT solutions business: Innovation actuates the high end Telecommunication systems business: leading the next generation mobile markets in the world Digital imaging business: Ever-smarter digital cameras for a new era Memory business: world leader in high-performance eco-friendly memory chips System LSI business: optimal solutions for advanced products LED business: Shining the light on eco-efficiency

SWOT ANALYSIS:
(a)Strength There are two main strengths of Samsung Electronics. First, it has a robust market position reinforced by strong brand equity in most of the segments where it is engaged. It is among the worlds leading companies in the Smartphone, monitor, television, and memory chip markets. The company gained over 20% worldwide market share in five areas. These include the fourdoor refrigerator market (39.5%), LCD panel market (25.7%), television market (22.1%), laser

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printer market (20.6%), and mobile phone industry (20.6%). Moreover, it has consistently built strong brand equity for many years. Fortune magazine (2011) ranked the company as the 38th Worlds Most Admired Company and second in the global electronics industry. Its robust market position in combination with strong brand equity facilitates its competitiveness to expand its business. Second, its functions of products is diversified. The company produces a significant number of products in different segments, such as televisions, audio-visual devices, MP3 players, computers, air conditioners, washers, vacuum cleaners, and integrated circuits. This indicates that the market share of the company across diverse markets is enhanced. In addition, it means that various sources of income are secured. It will also give an opportunity to diversify when some of the markets are depressed. (b)Weakness: The weakness of Samsung Electronics is that it is on the stage of succession. Chang (2012) argues that Korean economic development has been achieved by combination that practices the custom of handing over the torch of leadership to one of the owners sons. The most dangerous moment could be when the management rights pass to the son, because it is uncertain that he will display business insightfulness as successful as his father. Samsung Electronics is one of the biggest accumulations in Korea. Kun Hee Lee appointed Jae Yong Lee, his only son, as CEO of Samsung Electronics in 2010. This indicates that the Samsung Group is in the critical transition stage of succession (Economist, 2011a). (c)Opportunity: Samsung Electronics has an opportunity to grow, as the worldwide mobile phone market is predicted to be optimistic. The market is anticipated to achieve a value of $157 billion USD in 2013, an increase of $56 billion USD from 2008. Samsung Electronics is the worldwide leading cellphone maker with 20.6% market share. Moreover, the operating profits from mobile phones have gradually increased since 2009. As a result, the company is well positioned to harness the advantages of growing the market with its strong market position.

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(d)Threat: The major threat of the company is that it is vulnerable to foreign currency exchange rates. Approximately 85% of its revenues are generated outside Korea, and raw materials and investments are usually secured from overseas. As a result, the currency risk is regarded as a significantly important factor for the company.

STRATEGY:
Samsung Group appears to have achieved a dual advantage of both cost leadership and differentiation. Not only did they have a highly price sensitive customer base but they had the continuing threat that competitors would offer low priced products and thus take away their market share. But Samsung was able to retain loyal buyers because of their reliability. Despite seeking lowest cost, buyers were willing to pay 1% premium for reliable products, since reliability and precision were crucial factors in the complex semiconductor industry. If one semiconductor chip failed in performance, it would result in bad reputation of the OEM (Original Equipment Manufacturer) who purchased from Samsung. At the same time, they had a widely differentiated range of product offerings: totaling 1200 different products. Hence they were able to meet the varied needs of different buyers and provide customized products. They were constantly being rated as the only supplier of choice by even rival companies. Unlike competitors, Samsung tried to create new uses for DRAMs. Samsung had launched new DRAM products with product-specific applications in laptops and personal game players. It enabled Samsung in creating new markets that were unavailable to its competitors. Samsung was the market leader in memory chip technology and constantly remained ahead of its competitors. Samsung was able to create new markets by developing new applications of memory and cutting edge technology. Samsung had two options. One was to actively collaborate with the Chinese partners. Collaboration would provide access to local Chinese market which was growing rapidly and access to cheap resources and local talented engineers. But there was the risk of losing its unique culture and the intellectual rights, which were not yet fully protected.

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An alternative option was to invest heavily in cutting edge memory products and niche markets and leave the low end of the market for the Chinese competitors.

GLOBAL MARKETING OPERATION:

Samsung is trying to create a corporate marketing strategy that will effectively catapult the brand to the forefront of the global electronics industry. The goal is to surpass Sony and to become a premium global brand where consumers consistently view Samsung as a must-have valuable brand. (a)Advertising Campaign: The Digital global advertising campaign doesnt seem to be enough to effectively increase market share. It is the kind of campaign that doesnt necessarily make sales increase, but simply increases awareness. Instead, Samsung needs to create a campaign that educates consumers of what the brand stands for and represents. The marketing message should emphasize the companys values on quality, innovation, and linkage of all of Samsungs offerings. Quality within the Samsung products needs to be advertised giving proof of high consumer reports, product comparisons, and expert reviews. Print campaigns could highlight the fact that the company puts a large majority of its resources on its human capital and their ability to innovate. This makes the company a desirable place to work for and puts a higher value on the brand name. (b)Product Strategy: Samsung should consider specializing in a certain product category just as Apple does with music and computers, and Sony does with audio entertainment. Worldwide, over 120 firms have entered the laptop computer market and no one firm dominates in market share. Samsungs strong IT background points to a possible specialization in laptops. Samsung should look to discovering added features and design to earn a piece of the market share. Bonus features like content storage products or IT customer services will help to entice sales. Warranty policies for products like laptops and cell phones that are used often and daily are very valuable to most consumers who have had problems with their electronics in the past.

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CONCLUSION:
Before spending the marketing budget on a new plan, test market is to be fully utilized to help discover what needs to be adjusted, what works and what doesnt. The campaign educates customers on features and qualities that the brand offers. In the competitive, ever-changing electronics and entertainment industry, it takes strategic marketing efforts for even the best-made products. Products like the innovative Palm Pilot and even the Palm cell phones were unsuccessful over time primarily because of weak marketing management efforts and the failure to re-invent and adapt to consumer trends. With the congestion of the electronics industry, companies have to consistently look for ways to differentiate and to entice a sale based on values of the consumer markets. As long as Samsung continues to test and pinch marketing efforts while upholding a strong commitment to quality, the brand will undoubtedly continue to grow over time.

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REFERENCES:
http://www.samsung.com/in/aboutsamsung/corporateprofile/history.html http://www.termpaperwarehouse.com/essay-on/Samsung/73541 http://www.termpaperwarehouse.com/essay-on/Samsung-Electronics-Global-MarketingOperation/24910 http://www.samsung.com/in/aboutsamsung/corporateprofile/ourperformance/samsungpro file.html http://www.samsung.com/in/aboutsamsung/corporateprofile/index.html

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