SURVEY REPORT

ON

“SAMSUNG ELECTRONICS”

SESSION-2016-2019

SUBMITTED TO: SUBMITTED BY:

Mr. Sunit Mishra AMBUJ RAGHUVANSHI

Assistant Professor BBA. (VI Semester)

S.M.S. College, Varanasi ROLL NO- 11417401058

1
 DECLARATION

I Ambuj Raghuvanshi declare that the project work

entitled as “SAMSUNG ELECTRONICS” is an
authentic record of my own carried out at “School of
Management Science Varanasi” as required for the
project semester for the award of degree of BBA
(Bachelors of Business Administration), under the
guidance of “Mr. Sunit Mishra (Assistant Professor),
School of Management Science, Varanasi.

Ambuj Raghuvanshi

BBA. (VI Semester)

ROLL 11417401058

2
 ACKNOWLEDGEMENT

It is indeed a moment of immense gratefulness for me to express my deepest

gratitude to the faculty of SMS for providing me the opportunity to carry out this
survey and help me create survey report on “SAMSUNG ELECTRONICS”

I am immensely grateful to Prof P.N. Jha (Director of SMS) for providing me

opportunity to prove my skills and shoulder the responsibilities through this
survey report. I would also like to convey my sincere Gratitude to Coordinator
Mr. Amitabh Pandey and my project guide Mr. Sunit Mishra for his valuable
guidance and suggestions while pursuing the project and for taking pains to give
his valuable inputs to structure in making the report. Without his help and
valuable inputs and guidelines, the completion of this project would not have
been possible.

I am highly indebted and thankful to each and every person who devoted valuable
time out of their busy schedule to fill-up the questionnaire in the time. I am also
thankful to our faculty and classmates for their suggestion and support to undertake
his work and also during the course of study.

Ambuj
Raghuvanshi

BBA. (VI Semester)

ROLL NO-
11417401058

3
 PREFACE

Survey on SAMSUNG ELECTRONICS LTD. During the survey was to get an

overview of the Samsung electrical products . It was a first hand experience to get exposed to

the professional set-up and face the market, which was really a great experience. Survey period

was a learning experience.

When business is involved, an experience counts a lot. experience are an instrument,

which leads towards success. Performing survey on SAMSUNG ELECTRONICS

LTD., has been a pleasure.

I take this opportunity to present the project report and sincerely hope that it will be as

much knowledge enhancing to the readers as it was to use during the fieldwork and the

compilation of the report.

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 INDEX

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SR. Contents PAGE
NO NO.

1. I. Executive summary 8-9

2. II. Introduction

I. Company objectives

II.Company
strategies

3. I.Performance Review and

Strategic Goals

 SWOT MATRIX

4.  Competitive Profile Matrix(CPM)

5.  External Factor Evaluation(EFE)

Matrix

6.  Internal Factor Evaluation(IFE)

Matrix

7.  Strategic Position and Action

Evaluation(SPACE) Matrix
 Rapid Market Growth

8.  Quantitative Strategic Planning

Matrix(QSPM)

9.  An analysis of the results of each of

the foregoing matrices

10  Environmental Stability(ES)

.  Competitive Advantages(CA)
 Industry Strength (IS) Analysis

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11  Business Strategy

.  Business Strategy recommendations

 Research Methodology

Research methodology is considered as the nerve of the project. Without a proper well-

organized research plan, it is impossible to complete the project and reach to any conclusion.

The project was based on the survey plan. The main objective of survey was to collect

appropriate data, which work as a base for drawing conclusion and getting result.

Therefore, research methodology is the way to systematically solve the research

problem. Research methodology not only talks of the methods but also logic behind the

methods used in the context of a research study and it explains why a particular method

has been used in the preference of the other methods

Research design

Research design is important primarily because of the increased complexity in the

market as well as marketing approaches available to the researchers. In fact, it is the key

to the evolution of successful marketing strategies and programmers. It is an important

tool to study buyer’s behavior, consumption pattern, brand loyalty, and focus market

changes. A research design specifies the methods and procedures for conducting a

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 particular study. According to Kerlinger, “Research Design is a plan, conceptual

structure, and strategy of investigation conceived as to obtain answers to research

questions and to control variance.

Research design specifies methods and procedures for study. In this study the company

was interested to know the demand of different consumer durable product, about

competitors, and potential for SAMSUNG procedures to be used for the study among

retailers/dealer and. However it was exclusively personal interview.

RESEARCH AREA

VARANASI DISTRICT :-

1. DLW

2. RATHYATRA

3. BHELUPUR

4. PAHARIYA

5. SIGRA CANTT

6. KAKARMATTA

7. LAHURABIR

8. PRAFULL NAGAR LANKA

9. KAMACHHA

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10. DLW ROAD SUNDERPUR

11. GT ROAD INDUSTRIAL ESTATE

12. CHUNAR ROAD

13. DURGAKUND

14. GHANTI MILL ROAD SIGRA

15. CHOWK THANA

16. PANDEYPUR

17. MANDUADIH

18. CHAKLABAGH SHASTRI NAGAR

19. ORDALY BAZAR

20. GODOWLIA

21. LUXA ROAD

22. MALDAHIYA

23. BHOJUBEER

24. CANTT

25. CHOWK THANA

26. NADESAR

27. KANDAWA

28. LINE ROAD

29. MAHMOORGANJ

30. SONAR PURA

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10
NNEXURE

Questionnaire

Study on SAMSUNG ELECTRONICS from several areas

Name of shop:

Address:

Contact no.:

1) How many no. of company’s product you sold from your shop?

□ONE_______________________________________________

□TWO_______________________________________________

□THREE_____________________________________________

□FOUR______________________________________________

□FIVE_______________________________________________

□SIX________________________________________________

2) Which is major brand of Colour-Television you sold from your shop?

□SAMSUNG □LG □ VIDEOCON □ ONIDA

□ SANSUI

3) What is the important parameter for more sales of Colour-Television brand?

□Price □ Quality □ Services □ Advertisement □

Schemes
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4) Which is major brand of Refrigerator you sold from your shop?

□ GODREJ □ WHIRLPOOL □ KENSTAR □ LG

□ SAMSUNG □ VIDEOCON □ KELVINATOR

5) What is the important parameter for more sales of Refrigerator brand?

□ Price □ Quality □ Services □ Advertisement

□Schemes

6) Which is major brand of Washing Machine you sold from your shop?

□ IFB □ WHIRLPOOL □ KENSTAR □ LG

□ SAMSUNG □ VIDEOCON □ KELVINATOR □

GODREG

7) What is the important parameter for more sales of Washing Machine brand?

□ Price □ Quality □ Services □ Advertisement

□ Schemes

8) Which is major brand of DVD you sold from your shop?

□SAMSUNG □ LG □ VIDEOCON □ ONIDA

□ SANSUI □ PHILIPS □ INTEX □SONY

9) What is the important parameter for more sales of DVD brand?

□ Price □ Quality □ Services □ Advertisement

□ Schemes

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10) Which is major brand of Microwave you sold from your shop?

□SAMSUNG □ LG □ VIDEOCON □ KENSTAR

□ GODREJ □ PHILIPS □ BAJAJ □SONY

11) What is the important parameter for more sales of Microwave brand?

□Price □ Quality □ Services □ Advertisement

□ Schemes

12) Which company’s product you give high profit margin?

□SAMSUNG □LG □VIDEOCON □SONY

□WHIRLPOOL □GODREJ □PHILIPS □KENSTAR

14) What are your suggestions for SAMSUNG to increase the sales?

_________________________________________________________________

________________________________________________________________
__

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 Bibliography

1- http://www.samsung.com/in/aboutsamsung/index.html
2- http://www.samsung.com/in/aboutsamsung/corporateprofile/index.html
3- http://www.samsung.com/in/aboutsamsung/corporateprofile/history.html
4- http://www.samsung.com/in/aboutsamsung/corporateprofile/visionmission.html

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 I. Executive Summary
Samsung is the second biggest mobile phone producer in the world. In 2009, it paid
more attention on the fashion style which attracted a great deal of young person and the
shipments got to 235 million, the market share got to 19.5%. Compared with 2008, it
has a big improvement, because the shipment and market share is only 199 million and
16.3% respectively. The successful of Samsung electronics is come from the swift and
agility, but lack of innovativeness may lead to the loss of probability. Nowadays
Samsung pay more attention on the Smartphone, the Bada system is a good example.
Bada system is a platform of the new smart phone which developed by Samsung
company, the interface of it is more fashion in color and style. So it can be looked as the
cash cow product because the market growth rate is low but the market share is very
high, the characteristic of which is the sale volume is high but the rate of liability is low,
it can provide fund for the company and the product do not need improve the invests.
Everything they do at Samsung is guided by mission: to be the best “digital-
εCompany". Samsung grew into a global corporation by facing challenges directly. In
the years ahead, Samsung dedicated people with continue to embrace many challenges
and come up with creative ideas to develop products and services that lead in their
markets. Their ingenuity will continue to chart Samsung's course as a profitable,
responsible global corporation. Samsung is guided by a singular vision: to lead the
digital convergence movement. They believe that through technology innovation today,
and they will find the solutions that need to address the challenges of tomorrow. From
technology comes opportunity-for businesses to grow, for citizens in emerging markets

15
to prosper by tapping into the digital economy, and for people to invent new
possibilities.

It’s our aim to develop innovative technologies and efficient processes that create new
markets, enrich people’s lives and continue to make Samsung a trusted market leader.
As part of this vision, Samsung has mapped out a specific plan of reaching $400 billion
in revenue and becoming one of the world’s top five brands by 2020. Samsung is
committed to being a creative leader in new markets and becoming a truly No. 1
business going forward.

The objectives of Samsung is lead the digital convergence movement, develop

innovative technologies and efficient processes and continue to make Samsung a trusted
market leader, look forward to exploring new territories, including health, medicine, and
biotechnology, to identify eight growth engines for Samsung's business including their
Digital Television (DTV) products and printers, to pursue innovation throughout all six
main areas of the company's business operations, and reaching $400 billion in revenue
and becoming one of the world’s top five brands by 2020. In strategies of Samsung,
they want to develop new product to understand new product development strategy
overview in Samsung R&D. Through the interplay of creative, imaginative people; a
global R&D network, an organization that encourages collaboration and cooperation
among business partners all along the supply chain, and a strong commitment to
ongoing investment, Samsung has put R&D at the heart of everything. On the other
hand, Samsung Get feedback from customers based on new product to study effect of
Consumer behavior on New Product Development of Samsung: Customers are seemed
to move to those products which have good balance between style, technology and price
of the product. Samsung is one of the leaders that have sensed the pulse of the mobile
phone users.

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II. Introduction
Company mission
Everything they do at Samsung is guided by mission: to be the best “digital-εCompany".

Digita ε
l
To create technology products and To put into place the most
services that lead the management and production
efficient
industry processes

To be the best
Digita
-εCompan
l y

Compan
To maintain a steadfast focusyon strengthening our organization, on continuing to be a
global technology leader and trusted responsible
company

Samsung grew into a global corporation by facing challenges directly. In the years
ahead, Samsung dedicated people with continue to embrace many challenges and come
up with creative ideas to develop products and services that lead in their markets. Their
ingenuity will continue to chart Samsung's course as a profitable, responsible global
corporation.

Company vision

Samsung is guided by a singular vision: to lead the digital convergence movement.

They believe that through technology innovation today, and they will find the solutions
that need to address the challenges of tomorrow. From technology comes opportunity-
for businesses to grow, for citizens in emerging markets to prosper by tapping into the
digital economy, and for people to invent new possibilities.
17
It’s our aim to develop innovative technologies and efficient processes that create new
markets, enrich people’s lives and continue to make Samsung a trusted market leader.

Vision 2020
As stated in its new motto, 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 leveraging 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.

Inspire the World, Create the Future

Creative Industry
Solutions

New Innovative Partner Employee

Technology
Products

As part of this vision, Samsung has mapped out a specific plan of reaching $400 billion
in revenue and becoming one of the world’s top five brands by 2020. To this end,
Samsung has also established three strategic approaches in its management:
“Creativity,”
“Partnership,” and “Talent.”
Samsung is excited about the future. As they build on their previous accomplishments,
they look 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.

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 Industry
Vision

Vision
Partner 2020 Employee
Vision Vision

Company objectives
o To lead the digital convergence
movement.
o To develop innovative technologies and efficient processes and continue to make
Samsung a trusted market leader.
o Look forward to exploring new territories, including health, medicine, and
biotechnology. o To identify eight growth engines for Samsung's business
including their Digital Television (DTV) products and printers.
o To pursue innovation throughout all six main areas of the company's business
operations.
o To be one of the top three electronics companies in the world in quantity and in
quality by 2010.
o To more than double its 2004 sales revenue by the year 2010.
o To have 20 number one market share products in the world by 2010 (currently
the company has eight number one market share products).
o Reaching $400 billion in revenue and becoming one of the world’s top five
brands by 2020.

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 1. Enter into the 3D video Gaming Market through a partnership with
Microsoft.
In order to capitalize on the growing video gaming market, we intend on entering into a
partnership with Microsoft to develop a virtual gaming product. Short term, we would
like to couple 3D TV technology with a dominant video gaming console like the XBOX
360. By the year 2020 we intend on launching a virtual gaming product.
2. Launch a comprehensive and campaign that focuses on Samsung Electronic
competitive advantage in 3D technology.
An ad campaign focusing on our competitive advantage in technology would be highly
effective in selling more 3D TV’s to developing market. They want to make it known
that Samsung was the first to pioneer this technology. Therefore, they are getting the
most advanced product in the market.

3.Maintain market dominance throughout the “ Glasses “ and prepare the market
for a 3D TV
Samsung already established a firm hole on the 3D market, we would like to maintain
our position as market leaders in 3D technology with the use of 3D glasses. As the
market evolves closer to glasses free technology, they would like to prepare the market
for our product release in 2014. They objective is to see them market share remain at
88% until the release of our glasses-free product in 2014.

Company strategies
Samsung is a company that markets and market share of companies manufacturing
technology. Market Strategy of Samsung is flooding the market with a multitude of
products in a short time, Samsung produces many product lines and launched
continuously. In addition, Samsung appeal to more markets by providing more facilities
on mobile phones, smartphones, tablets ... Samsung market research for market
classification to low market and high levels are able to use their products. They were
very good in the low end market, but Samsung only in recent years become a strong
company with many achievements and increase their sales in the smartphone market
and has gained a good amount. Specific example: "Last year saw Samsung achieved a
lot of success, they gain more market share. Samsung's market share has doubled to
more than 36% in Q2 2011 from approximately 18% in the same period last year.
"Increase market share rapidly, Samsung achieved great success because they are
willing to spend large sums of money to invest in different devices than Apple.

20
Samsung Galaxy SIII is considered the success of Samsung products with sales of over
10 million units in 2 months.

Many people believe that SIII is Samsung's answer for Apple's iPhone products, as well
as a reason for a huge growth in the market share of Samsung cave. Finally, Samsung
succeed when choosing Google's Android operating system for the products they
produce, in addition they also have smart phones using Windows Phone OS. While
Apple only narrow them into IOS software and not much change in the product design,
the Samsung is taking steps to develop more and gain more market share of the
company Samsung. Strategic value of the Samsung case works very well because they
cannot only diversify their hardware, but their software is better evaluate and use very
clever.

Develop new product

To understand new product development strategy overview in Samsung R&D: As new
technologies are being constantly introduced to the market, speed is essential for
remaining competitive in today's digital era, and new markets have to be pioneered
continuously. Through the interplay of creative, imaginative people; a global R&D
network, an organization that encourages collaboration and cooperation among business
partners all along the supply chain, and a strong commitment to ongoing investment,
Samsung has put R&D at the heart of everything

To understand methodology followed by Samsung R&D in New Product Development

phase: The popularity graph of the Samsung mobile phones shows an ascending curve.
The reason for such a rise obviously directs to the dedication of the makers in offering a
state-of-the-art technology that is cost-effective, stylish, and most importantly user
friendly. Being the owner of a wide range of service support centers throughout the
globe, the popularity of the Samsung models of this make stems from the reason of
cost-effectiveness of the phone models.

Get feedback from customers based on new product

To study effect of Consumer behavior on New Product Development of Samsung:
Customers are seemed to move to those products which have good balance between
style, technology and price of the product. Samsung is one of the leaders that have
sensed the pulse of the mobile phone users. Mobile phones from this technological giant

21
are a rare admixture of style and functionality. To challenges and problems faced by the
organization in the process.

III. Performance Review & Strategic/Financial

Goals
A. SWOT MATRIX
Samsung Group is one of the largest industrial groups in South Korea, operating
through a network of subsidiaries world. The company interested in more than 20
affiliates, and focuses on electronics, finance and service activities. Samsung electronics
is one of the world’s largest manufacturers of random-access memory chip.

1. Strengths
Customers are loyal and appreciating the brand. Samsung is enjoying very good
position against its competitors. The company is maintaining very good relationship
with its suppliers. The company is also maintaining with laborers. Samsung is a
financial strong and Stable. The production processes and procedures of inventory
management are consistent with industrial standards.

• Hardware integration with many open source OS and software. Samsung is

focused on producing devices which can be integrated with most of the software
and OS. This gives
Samsung products an edge over Apple’s (its arch rival) devices, especially as
Android and other OS are gaining market share when is and OS X are losing it.
• Excellence in engineering and producing hardware parts and consumer
electronics. Samsung is the number 1 by market share in televisions and mobile
phones sales and some of the hardware parts (processors, memory chips, etc.).
This was largely achieved due to excellence in engineering and both efficient
and effective production.
• Innovation and design. In 2011, Samsung ranked second on the list of US top
patent assignees. More patents strengthen Samsung position among its
competitors. The firm also won many awards for the design of its products,
proving the superior advantage over the competitors.
• Focus on environment. Samsung focuses on producing environment friendly
products that are free from PVC and BFRs (currently only MP3 and mobile
phones). It also develops various recycling programs that are awarded for their
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 success. Thus, Samsung’s focus on environment gives it an edge over its
competitors in the eyes of its customers.
• Low production costs. The company has set up its production facilities in low
cost countries. This allows producing goods with low production cost and
benefit Samsung as it can offer lower price and earn higher margins.
• Largest share in mobile phones and 2 place in smartphones sales in the world.
Samsung Electronics have achieved large market share in many products they
sell, especially in mobile phones, smartphones, semiconductors and television
sets. Large market share has its advantage, bargaining power that Samsung can
use to further reduce costs and demand for better contract conditions.
• Ability to market the brand. Samsung is named as top rising brand by Interbrains
and is the 9th most valuable brand with value nearly $33 billion. It has risen by
40% from 2011 to 2012. This was mainly achieved due to company’s ability to
market the brand in sporting events and social contributions.

2. Weaknesses
Samsung is facing hard competition. South Korea’s labor unions are strategically
linked for collective bargaining and negotiation. Samsung need improvements in
defining the vision, mission and strategic corporate objectives. Marketing
management needs improvement in all the facts of marketing. HRM also needs
improvement in all the facts of human resources management.

• Patent infringement. Samsung is infringing Apple’s and some other firms’

patents, thus, damaging its reputation and having to pay a huge amount of
money in damages.
• Too low profit margin. Samsung Electronics is the largest technology business in
the world in terms of revenues but it has a low gross profit and net profit
margins. Although its smartphones business is quite profitable, Samsung’s profit
margin is low due to its semiconductors sales and aggressive price cuts.
• Main competitors are also largest buyers. Apple, Sony, Dell, HP are the main
buyers of
Samsung Electronics products as well as the firm’s main competitors. Such
situation would be favorable to Samsung (if competitors could not find
complementary products and would form a relatively low share Samsung’s
revenues) because it could use its bargaining power over competitors. Due to
reverse conditions (competitors can find complements and they form a relatively

23
 high share of firm’s revenues) Samsung cannot use its bargaining power over
competitors as it can easily lose its customers and sales.

.
• Lack its own OS and software. Software and OS production has a high profit
margin, can increase integration of company’s products and brand loyalty.
Without strong software and OS Samsung is at disadvantage over its
competitors.
• Focus on too many products. Samsung Electronics serves 4 different industries
with many different products in them. Samsung is at disadvantage over its
competitors because it loses a focus when competing in too many industries and
too many products.

3. Opportunities
The economic condition of South Korea seems favorable. Samsung is interiorizing
the social shifts. It is having constant policy given by the government. Samsung is
reasonable equipped to take care of technological changes. Samsung is maintaining
good international relationship with other.

• Growing India’s smartphone market. India’s smartphone market is one of the

least penetrated among Asia/Pacific countries. Samsung has a strong presence in
India’s market and could use this opportunity to expand its sales.
• Growing mobile advertising industry. The company could develop advertising
platform for its mobile devices and significantly benefit from this lucrative
market.
• Growing demand for quality application processors. Samsung is one of the key
manufacturers of application processors for smartphones and tablets. The
growing demand for these products requires best quality application processors
that only Samsung provide.
• Growth of tablets market. Tablets market is expected to grow in double digits
over the next few years. Samsung business has a strong position in tablets
market and could expand it by introducing newer, better quality tablet models,
such as its current galaxy line.
• Obtaining patents through acquisitions. The key to Samsung’s competitive
advantage is the large portfolio of patents. Patents can be discovered by
24
 engaging in costly R&D or through acquisitions of other firms. Tries and the
local.

4. Threats
The legislation has been passed frequently related to industry. Technological
transformation takes place in the industry was very high. Regulatory issues and
safeguarding of property rights was main threats in legislations.

• Saturated smartphone markets in developed countries. Smartphones market in

the developed economies is saturated and the sales will not be growing at a high
rate.
• Rapid technological change. The serious threat that Samsung and the other tech
companies are facing is a rapid technological change. Companies are under the
pressure to release the new products faster and faster. The one that cannot keep
up with the competition soon fails. This is especially hard when the business
wants to introduce something new, innovative and successful.
• Declining margins on hardware production. Samsung is the second largest
semiconductors producer where the profit margins are very thin, thus weakening
the whole company's figures.
• Breached patents. Samsung Electronics has many patents which are often used
by its many competitors. Such situation makes it hard to find out which
companies benefit from
Samsung’s technology but do not pay for the rights to use it.
• Price wars. Samsung has a very low gross margin on many of its products and is
already selling some of them with significant price cuts. Competitors could
follow price cutting strategy too and induce price wars, which would erode
Samsung’s profit margin to 0%.

25
 A.Competitive Profile Matrix (CPM)

Samsung Apple Nokia Microsoft

Critical Success
Weight Rating Score Rating Score Rating Score Rating Score
factors

Store Locations 0.10 4 0.40 4 0.4 3 0.30 3 0.30

Market Share
0.12 4 0.48 2 0.24 2 0.24 4 0.48

Consumer loyalty 0.10 4 0.40 3 0.30 3 0.30 2 0.20

Market
penetration 0.11 3 0.33 4 0.44 3 0.33 4 0.44

Advertising 0.07 3 0.21 3 0.21 3 0.21 4 0.28

Product variety 0.09 4 0.36 2 0.18 4 0.36 3 0.27

Brand reputation 0.11 4 0.44 4 0.44 3 0.33 4 0.44

Product quality 0.08 4 0.32 3 0.24 2 0.16 3 0.24

Price
competitiveness 0.10 1 0.10 3 0.30 4 0.40 3 0.30

Successful
product 0.06 4 0.24 3 0.18 1 0.06 4 0.24
promotions

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Employee
dedication 0.06 4 0.24 4 0.24 3 0.18 3 0.18

Totals 1.00 3.52 3.17 2.87 3.33

B.External Factor Evaluation(EFE) Matrix

Weighted
Key External Factors Weight Rating
Score

Opportunities

A lot of countries encourage technology innovation and

0.03 3 0.09
high-tech industry is really important.

Countries value the protection of intellectual property 0.04 3 0.12

GDP and national income per capita increasing 0.12 3 0.36

Consumption pattern is changing from subsistence

0.07 3 0.21
consumption to well spending pattern

Samsung’s mobile phones have high attention 0.09 4 0.36

Growing India’s smartphone market 0.05 2 0.10

People more care about brand and quality than price 0.14 3 0.42

Threats

Legal issues with Apple 0.05 3 0.15

Price wars with Chinese phones 0.10 3 0.30

More and more new substitute and potential entrant 0.10 4 0.4

Strong competitors: Apple, Nokia, HTC… 0.12 4 0.48

The user experience is upgrading 0.09 3 0.27

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 Total 1.00 37 3.26

C.Internal Factor Evaluation (IFE) Matrix

Weighted
Key Internal factors Weights Rating
Score
Strengths

Brand Recognition and Loyalty 0.07 3 0.21

A large number of products and broad product line 0.05 4 0.20

Strong research and development ability 0.10 3 0.30

Hardware integration with many open source OS and
0.04 2 0.08
software
Innovation and fashion design, especially popular
0.15 4 0.60
among younger peoples
With extensive sales channels and propaganda 0.06 3 0.18

Low production costs 0.03 3 0.09

Largest share in Smartphone industry ( 30% market
share worldwide, extending its lead over Apple and 0.15 4 0.60
Nokia)
Weaknesses

Not high lighting Price/Performance Ratio 0.10 4 0.40

Lack its own OS and Software 0.07 4 0.28

Patent infringement 0.04 3 0.12

Too low profit margin 0.04 2 0.08

Limited high-end products 0.03 2 0.06

Focus on too many products, with inaccurate
0.07 3 0.21
positioning
Total 1.00 44 3.41

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 D.Strategic Position and Action Evaluation
(SPACE) Matrix
Internal Strategy Position External Strategy Position
Y Financial Strength (FS) +1 to +6 Environmental Stability(ES) -6 to -1

+3 -2
Earnings per share Price of competitive product

+5 -4
Revenue increase Competitive pressure

+4 -4
Return on Assets Global economic

+4 -2
Leverage Technology changes

+3 -2
Liquidity Demand elasticity

+3 -2
Cash flows Inflation rates

Average 3.6 Average -2.6

Total Axis Y score: 1.07

X Competitive Advantage (CA) -6 to -1 Industry Strength (IS) +1 to +6

-1 +6
Product quality Barriers to entry

-2 +5
Market share Growth potential

-1 +5
Brand & image Access to financing

-3 +6
Product life cycle Consolidation
29
 -5 +6
Customer service Profits

-2
Customer loyalty

Average -2.3 Average 5.6

Total Axis X score: 3.26

There is SPACE Matrix below:

Y

Conservative Aggressive

30
 (3.26; 1.07)

Defensive Competitive

31
 RAPID MARKET GROWTH

CHARATERISTICS OF FIRMS: CHARATERISTICS OF FIRMS:

Weak competitive position working in rapid Strong competitive position working in rapid
growth market growth market
• Market development • Market development
• Market penetration • Market penetration
• Product development • Product development
STRONG • Horizontal integration • Forward integration
• Divestiture • Backward integration
WEAK • Liquidation • Horizontal integration
• Related diversification

CHARATERISTICS OF FIRMS:
CHARATERISTICS OF FIRMS:
Strong competitive position working in slow
Weak competitive position working in slow growth market
growth market
• Related diversification
• Market development • Unrelated diversification
• Market penetration • Joint ventures
• Product development
• Horizontal integration
• Divestiture
• Liquidation

COMPITION

SLOW MARKET GROWTH

32
According to the Grand Strategy Matrix, Samsung is the first quadrant with market penetration
and market development as well as development of existing products have an appropriate
strategy. Diversifying production Samsung products also help reduce the risk associated with
narrower product lines. Samsung also has the resources to take advantage of external
opportunities that expand in the different fields. Samsung staying the quadrant one of the Grand
Strategy Matrix is meant for this firm which are in a strong competitive position and
flourishing with rapid market growth. Samsung located in this quadrant are in excellent
strategic position and they need to concentrate on current markets and products. Concentration
on current markets reveals the adoption of strategies such as market penetration and market
development and likewise concentration on current products calls for adoption of product
development strategy.

E.Quantitative Strategic Planning Matrix (QSPM)

Quantitative Strategic Planning Matrix for Samsung Electronic– Case Study 27
Combine all the analysis and matrix, we have the Quantitative Strategic Planning Matrix
for Samsung Electronic:
Product and
Market Market
Key Factors Service
Penetration Development
Development
Opportunities Weight AS TAS AS TAS AS TAS
A lot of countries encourage
technology innovation and high-tech 0.03 3 0.09 4 0.12 3 0.09
industry is really important.

Countries value the protection of

0.04 3 0.12 4 0.16 2 0.08
intellectual property

GDP and national income per capita

0.12 4 0.48 4 0.48 1 0.4
increasing
Consumption pattern is changing
from subsistence consumption to 0.07 3 0.21 3 0.21 3 0.21
well spending pattern
Samsung’s mobile phones have high
attention 0.09 4 0.36 4 0.36 4 0.36

Growing India’s smartphone market 0.05 2 0.10 3 0.15 2 0.10

33
People more care about brand and
quality than price 0.14 3 0.42 4 0.56 4 0.56

Threats

Legal issues with Apple 0.05 2 0.10 3 0.15 4 0.20

Price wars with Chinese phones 0.10 3 0.30 3 0.30 3 0.30

More and more new substitute and 4

0.10 3 0.30 0.40 3 0.30
potential entrant
Strong competitors: Apple, Nokia,
HTC… 0.12 4 0.48 4 0.48 4 0.48

The user experience is upgrading 0.09 3 0.27 3 0.27 4 0.36

Total 1.00 3.23 3.64 3.44
Strengths
Brand Recognition and Loyalty 0.07 3 0.21 4 0.28 4 0.28
A large number of products and broad
0.05 4 0.20 4 0.20 4 0.20
product line

Strong research and development

0.10 3 0.30 4 0.40 4 0.40
ability
Hardware integration with many
open source OS and software 0.04 3 0.12 3 0.12 4 0.16

Innovation and fashion design,

especially popular among younger 0.15 4 0.60 4 0.60 4 0.60
peoples
With extensive sales channels and
propaganda 0.06 3 0.18 3 0.18 3 0.18

Low production costs 0.03 2 0.06 3 0.09 4 0.12

Largest share in Smartphone industry

( 30% market share worldwide,
0.15 3 0.45 4 0.60 4 0.60
extending its lead over Apple and
Nokia)

Weaknesses

Not high lighting Price/Performance

0.10 2 0.20 3 0.30 3 0.30
Ratio

Lack its own OS and Software 0.07 2 0.14 3 0.21 4 0.28

Patent infringement 0.04 2 0.08 3 0.12 3 0.12
Too low profit margin 0.04 3 0.12 4 0.16 4 0.16

34
Limited high-end products 0.03 3 0.09 3 0.09 4 0.12

Focus on too many products, with

0.07 2 0.14 3 0.21 3 0.21
inaccurate positioning
Total 1.00 2.89 3.56 3.73

Sum Total Attractive Score 6.12 7.2 7.17

(Attractiveness Score: 1 = not acceptable; 2 = possibly acceptable; 3 = probably acceptable; 4 =

most acceptable; 0 = not relevant)

F. An analysis of the results of each of the

foregoing matrices
Competitive Profile Matrix (CPM)
Samsung Apple Nokia Microsoft

Critical Success
Weight Rating Score Rating Score Rating Score Rating Score
factors

Store Locations 0.10 4 0.40 4 0.4 3 0.30 3 0.30

Market Share
0.12 4 0.48 2 0.24 2 0.24 4 0.48

Consumer loyalty 0.10 4 0.40 3 0.30 3 0.30 2 0.20

Market
0.11 3 0.33 4 0.44 3 0.33 4 0.44
penetration

Advertising 0.07 3 0.21 3 0.21 3 0.21 4 0.28

Product variety 0.09 4 0.36 2 0.18 4 0.36 3 0.27

Brand reputation 0.11 4 0.44 4 0.44 3 0.33 4 0.44

Product quality 0.08 4 0.32 3 0.24 2 0.16 3 0.24

Price
0.10 1 0.10 3 0.30 4 0.40 3 0.30
competitiveness

35
Successful
product 0.06 4 0.24 3 0.18 1 0.06 4 0.24
promotions
Employee
0.06 4 0.24 4 0.24 3 0.18 3 0.18
dedication

Totals 1.00 3.52 3.17 2.87 3.33

Since the rise of the smartphone in the past few years, there have been a major
changes and shifting position between many organizations in the mobile phone
industries and if we observe the result in the Competitive Profile Matrix, we can Cleary
see that Samsung are now on the top of the industries.

Samsung reputations has increase and build up since the release of their Galaxy
smartphone product lines that are being considered having equal or even better qualities
and features compare to Apple iPhone. This has been prove by the market share of
Samsung when compare to other competitors such as Apple and Nokia when in 2013,
Samsung has taken over 30% of the Worldwide market share. This result is higher
almost three times compare with the market share of Apple in the same years.

This positive outcome also is the direct result of Samsung marketing plan in the past
years which create a very positive brand image and reputation in the market as well as
build the customer loyalty with the high quality products and services before and after
the purchase. Samsung using both the Android Operating System from Google and
Microsoft Operating System which allow user have more freedom and also more user-
friendly that make Samsung products suitable for the vast majority of consumer not to
mention the wide range of products that Samsung offer to the market. For the same

36
generation phone, they can have at least two other type of phone with different
configuration that also have lower price and allow customer can be able to afford
Samsung products.

External Factor Evaluation (EFE) Matrix

Weighted
Key External Factors Weight Rating
Score
Opportunities
A lot of countries encourage technology innovation
0.03 3 0.09
and high-tech industry is really important.
Countries value the protection of intellectual property 0.04 3 0.12
GDP and national income per capita increasing 0.12 3 0.36
Consumption pattern is changing from subsistence
0.07 3 0.21
consumption to well spending pattern
Samsung’s mobile phones have high attention 0.09 4 0.36
Growing India’s smartphone market 0.05 2 0.10
People more care about brand and quality than price 0.14 3 0.42
Threats
Legal issues with Apple 0.05 3 0.15
Price wars with Chinese phones 0.10 3 0.30
More and more new substitute and potential entrant 0.10 4 0.4
Strong competitors: Apple, Nokia, HTC… 0.12 4 0.48
The user experience is upgrading 0.09 3 0.27
Total 1.00 37 3.26

In the research and analysis of tall the External factors that influence and have
effect on Samsung Electronic business, there are a lot of opportunities for Samsung to
depend on and take advantages to increase their competitive position as well as acquire
more competitive advantages that help Samsung to develop their business and compete
with other strong competitors such as Apple or HTC and Nokia.

The first thing that is really important and also very potential opportunities for Samsung
that the advance and increase in the technology developing of all countries in the World.
The benefits and positive application of the technology has pushed the development of
technology in the next level and create a world full of possibilities for Samsung to
exploit.

37
Most of the countries that have strong economic strength also spend a lot of their GDP
only for technology research and development. Take Japan for example, according to
the 2013 Budget list they spend about 0.4% of their GDP just only for technology
development and they also very close to South-Koran which Samsung can have access
or acquire the technologies they need to develop their new products line. This is very
important when Samsung can survive on the market or not depend on the technology
level of their products when compare to their competitors. The increasing in the world
economic also helps to expand the range and variety of Samsung customer.

South-Korea also is one of the fast economic growths which also create the strong
financial resources for Samsung to extend and expand their market as well as their
strength to penetrate and enter new market. The higher standard of living means the
38
increase in spending and expectation of customer. Now they not care about the lowest
price so much but the features and capabilities of the products they buying. This is the
opportunities but also a threat for Samsung now when they have to develop the high-
end product with better qualities and specification to meet and satisfied the need and
demand of the customer.

The threat from less – expensive products from the Chinese manufacturer that using the
same configuration and technologies like Samsung products also leave another huge
impact on Samsung revenue. The qualities of these products many not meet the standard
of Samsung products but can attract a lot of attention with their low prices and wide
range of distributor. Now not only Samsung have to deal with stronger and better
competitors but they also have to solve their problem with counterfeit products and
cheap substitute from Chinese manufacturer. If we observe the market share of these
products, they are even higher than strong competitors such as Nokia or even Apple.
The fact that these products still have the strand in the market mean the prices affect still
play a major role in the success of an organization that engage in this industries.

Beside the expectation, the legal issues also create very difficult problems for Samsung,
especially on the North America market. Under the accused of Apple that Samsung
stealing intellectual properties from Apple to apply on their products line, this create the
doubt of Samsung capabilities and damages the brand images and reputation that
Samsung has built over the years in the North America market as well as other region in
the world. The final result that Samsung cannot sales some of their products in the
North America market has left a huge impact on Samsung market penetration and
decrease Samsung percentage of market share in the North America market to only
9.6% in 2010 while Apple gain more and reach 16.1% in the same period of time.
39
In conclusion, Samsung need to overcome and eliminate or minimize the damages and
effect of these threats to protect their completive position in the market. However, to be
able to complete these goals they need to concentrate on their internal strength which is
something they can have total control and manipulated. Otherwise they will not stand a
change with the threat from the competitors in the industries

Internal Factor Evaluation (IFE) Matrix

Weighted
Key Internal factors Weights Rating
Score
Strengths

Brand Recognition and Loyalty 0.07 3 0.21

A large number of products and broad product line 0.05 4 0.20

Strong research and development ability 0.10 3 0.30

Hardware integration with many open source OS and
0.04 2 0.08
software
Innovation and fashion design, especially popular
0.15 4 0.60
among younger peoples
With extensive sales channels and propaganda 0.06 3 0.18

Low production costs 0.03 3 0.09

Largest share in Smartphone industry ( 30% market
share worldwide, extending its lead over Apple and 0.15 4 0.60
Nokia)
Weaknesses

Not high lighting Price/Performance Ratio 0.10 4 0.40

Lack its own OS and Software 0.07 4 0.28

40
Patent infringement 0.04 3 0.12

Too low profit margin 0.04 2 0.08

Limited high-end products 0.03 2 0.06

Focus on too many products, with inaccurate
0.07 3 0.21
positioning
Total 1.00 44 3.41

The problems with the sale volumes of Samsung fourth generation smartphones
has indicated that Samsung have problems that is not related to complete to the external
environment but is the result of poor quality management from the inside of Samsung
Electronic structure.

The poor and lack of original technologies will be the most dangerous weakness of
Samsung. In the industries that have the close relationship with the technologies and
technologies development, this is very vital factors that can actually put Samsung out of
the games and these also apply for their accused of Patent Infringement. The threat with
all the lawsuit with Apple in the North America market has also make the consumer
question about the abilities and technological capabilities of Samsung as well as the
qualities of their products lines. The opportunities that have the wide ranges of Products
line also the great weakness for Samsung. With too many products and lack of
prioritization which one is the main products that need concentrate marketing and
promotion, the consumer don’t know which model to choose from, especially the one
who not have wide knowledge about.

41
This also affects the Price/Performance Ratio of Samsung products. If the consumer
don’t have the knowledge about the products and what is it capable of, they will hesitate
to choose and spend a very large sum of money for that products and most likely to
choose what they think they know better. Apple is very good at showing and
demonstrate what their products can do under the usage of average customer, in fact
Apple products is very difficult to handle and not user-friendly when compare to the
Android OS based smartphone. However, Samsung is not utilized this factors as much
as they allow and lose the advantages over their competitors.

Although having many serious weakness, Samsung also very strong internally. Low cost
productions also allow Samsung to increase the configuration of the phone without the
threat that their price will be higher than other competitors. While other companies such
as Apple or Nokia have to outsourcing their manufacturing, Samsung have the
geographic

advantages that allow them to have low –cost but high productivities labors Their brand
images and reputation are very highly recommended by many customers all over the
world and even higher when compare with Apple or Nokia. This is the direct result of
their wide range of products line and high qualities that leave the satisfaction in the
customer.

42
In 2013 only, Samsung are on the top of brand awareness compare with other
smartphone manufacturer from big such as Apple or Nokia to cheap and low-qualities
from China which occupied over 20% when Apple is only 12% in comparison. These
create very strong advantages of Samsung on the market when the customer will
recognize their brand anywhere and increase the sale volume of Samsung products.
Besides the smartphones manufacturing, Samsung also engage in many other industries
that allow them to have stronger and better resources in both financial and technologies
to support the development and competitive position of the smartphone manufacturing.

Strategic Position and Action Evaluation (SPACE) Matrix

Financial Strength (FS)
Earnings per share

Earnings per share also reduce from 67,916 in 2004 to 37,684 in 2008, so I give it +3
43
Revenue increase

Samsung sales are up from 63 million in Q4 2012, Revenues rose 17% to 52.9tn won
and operating profit was up 54%. I give it +5

Return on Assets

Return on capital employed (ROCE) = Operating profit/ (Average shareholders' funds+

Loans)

According to Profitability (Net Income/Sales) and Asset Turnover (Sales/Asset), we can

get ROCE = Profitability*Asset Turnover.

So from 2004 to 2008, the ROCE rates are 15.60%, 10.08%, 9.90%, 9.04% and 7.32%
respectively.

We can see a decline in Return on Assets, but it still has good performance.

So I give it +4.

Leverage

The rates are 2.06, 1.84, 1.74, 1.68 and 1.67 respectively from 2004 to 2008, and
Earnings per share also reduce from 67,916 in 2004 to 37,684 in 2008. Considering it's
a great company, this is a good result, so I give it +4.

Liquidity

Current ratio = Current assets/ Current liabilities

The ratios are 0.722:1.000, 0.709:1.000, 0.767:1.000, 0.826:1.000 and 0.532:1.000 from
2004 to 2008.

The company does not have very good liquidity especially in 2008. I give it +3.

Cash flows

We can see from “Consolidated Cash Flow Statement” that the cash flow from operating
activities keep almost the same level from 2004 to 2008, but the net income decreases
heavily in 2008. So I give it +3

Environmental Stability (ES)

Price of competitive product

44
Most of Samsung competitor such as HTC, Apple and Blackberry also have the
products to compete directly with Samsung Galaxy S4 that have the same or similar
specs and features. However, fortunate for Samsung that most of these products are
having the same price level of Samsung or even higher such as Apple IPhone 5.
Therefore Samsung although don’t have any threat from other but they don’t have so
much advantages in price compare with other manufacture. So I give it -2

Competitive pressure

Samsung not only faces competition from Apple, but also from Chinese phone
manufacturers. I give it -4

Global economic

The whole world is suffering from a recession from 2008, and has not recovered yet. So
I give it -
4.

Technology changes

As for the electronic industry, the rates of obsolescence's are quicker than any other
industry. We can feel that the functions of mobile phone will be out of date after one
year. So I give it -2

Demand elasticity

Refrigerator, washing-machine and TV should be necessary for a family, but a mobile

phone and a laptop may not be so necessary. So we can say the overall demand elasticity
is not so big. I give it -2.

Inflation rates

Due to worldwide recession, inflation is not strong nowadays. So I give it -2.

Competitive Advantage (CA) Analysis

Product quality:

According to the customers' comments, the products of Samsung is better than most of
its competitors. So I give it -1.

Market share:

45
Market share of mobile phone

As companies get larger, it becomes increasingly difficult to deliver organic growth that
meets or exceeds the industry average. Samsung has managed to exceed the industry
average growth by delivering competitively priced handsets with the design features of
more expensive handsets. In the smartphone realm, Samsung has shown great success
with its Android based Galaxy series and its Bada OS.

Market share Second quarter 2012

46
We can see from the chart that Samsung mobile phones' market share is 21% in 2012,
which is the second place after others. So I give it -2.

Brand & image:

As we all know, almost everybody knows Samsung. So I give it -1.

Product life cycle:

Electronics' technologies innovation speed is very fast, and it still develop and growth in
last few years, so the life cycle score is -3.

Customer service

According to data of a survey website customer service is ranked number 457 out of the
728 companies that have a CustomerServiceScoreboard.com rating with an overall
score of 30.07 out of a possible 200 based upon 1695 ratings. So I give it -5.

Customer loyalty

Follow to bgr.com website, Unsurprisingly Apple fans were the most loyal, as 76% said
they planned to stick with the iPhone. Samsung came in second place, with 58% of
Galaxy owners saying they planned to buy a Samsung phone with their next purchase.
So I give it -2

Industry Strength (IS) Analysis

Barriers to entry:

47
The electronic market is mainly shared between those big companies like Nokia, Apple,
Motorola and Samsung, so it's very difficult for new entrants. I give it +6.

Growth potential:

Due to technology is the main factor in electronic industry, the market can grow as the
development of new technology, so I give it +5.

Access to financing:

As a super company, Samsung has good credit which gives banks confidence to give
loan to it, the same as the shareholders, etc. So I give it +5.

Consolidation:

From the Annual Report of Samsung Electronics, they have a large amount of
consolidated subsidiaries, and value the performance of the subsidiaries every year in
order to decide which ones should be eliminated and which ones can be kept. So I give
it +6.

Profits

These are some awfully of Samsung. The company’s Q4 2012 revenue figure is 18.52
percent larger than it was in Q4 2011, and Samsung’s profit this quarter surged to an
impressive 89.3 percent from what it reported last year. The company also released its
48
fiscal 2012 figures — this past year, Samsung scored a net profit of 23.8 trillion won
($22.25 billion) on revenue of 201 trillion won ($187.9 billion). So I give it +6
Internal Strategy Position External Strategy Position
Y Financial Strength (FS) +1 to +6 Environmental Stability(ES) -6 to -1

+3 -2
Earnings per share Price of competitive product

+5 -4
Revenue increase Competitive pressure

+4 -4
Return on Assets Global economic

+4 -2
Leverage Technology changes

+3 -2
Liquidity Demand elasticity

+3 -2
Cash flows Inflation rates

Average 3.6 Average -2.6

Total Axis Y score: 1.07

X Competitive Advantage (CA) -6 to -1 Industry Strength (IS) +1 to +6

-1 +6
Product quality Barriers to entry

-2 +5
Market share Growth potential

-1 +5
Brand & image Access to financing

-3 +6
Product life cycle Consolidation

-5 +6
Customer service Profits

-2
Customer loyalty

49
 Average -2.3 Average 5.6

Total Axis X score: 3.26

 Business Strategy

A. Business Strategy recommendations –both long term

objectives and specific strategies for the company
Since the past 40 years, the development of technology has go with the speed
faster than anyone can imagine they could and the rise and fall of each technology also
being shorten significantly. A new cutting-edge technology can become obsolete in the
matter of days. As one of the organization that have a very close dependence
relationship with the development of technology like Samsung Electronics, it is very
important for them to have a proper strategies that suitable with the unstable
environment such as technology industries so that they can survive and have effective
response with any obstacles and problems may occurs in the future. Based on the result
of the analysis in this research, we have identified the problems and issued that hinder
the development of Samsung Electronics in general and the sales of the fourth
generations’ smartphone that Samsung just released in particular are the poor and
unsuitable strategies and operation of Samsung management. According to the result of
the QSPM matrix, there are two main strategies that Samsung need to concentrate to
overcome their weakness are: Market Development and Products & Service
Development.

The goals of Market Development are to seek and expand Samsung business over new
market and regions such as the Asia market, South-America market and European
market. These regions are content many new potential customer group and may support
and increase the sales of the existed products line of Samsung Electronics. These
regions also don't being under strong influence of Samsung's competitors and Apple is
the best example. If in the United States market, Samsung are having trouble with the
50
all the accused that Samsung steal Apple's ideas and intellectual properties. We don't
confirm that Samsung actually steals those intellectual properties or not, but it have
leave a huge affected on Samsung's reputation and images in the United States market
and also hinder the development of Samsung products sales volumes. The strategies to
expand the business over new market will provide Samsung as many opportunities as
they need to build and develop their business in those markets before their competitors
can achieve those goals and also is a very important and powerful Competitive
Advantages that can support and maintain the Competitive Position of Samsung. These
regions also have many potential organizations and firms that Samsung can create
alliance with or take over if they can. These organizations can have the foundation or
finished new technology that Samsung can acquire and apply to their new or existed
product lines as the support Samsung to achieve the strategies of Products & Service
Development.

With many accused from Apple that Samsung actually don't have any original
technology on their products line is a very dangerous accused that no matter they right
or not, the images and the brand name of Samsung has already been damaged. The
strategies that concentrate on Products & Service Development will create the
foundation for Samsung's Research & Development department to have proper research
and experience to have their own technology that is unique and can be apply on their
product lines. This will immediately create a very strong Competitive Advantages for
Samsung to compete with their competitors and minimize the influence of the
dependence with the technology of any organizations that doing business in this
industries. However, to completely have the most effective result from these strategies,
Samsung need to wisely use all the potential resources and protect their technology at
all cost. The fact that Samsung are being accused that steals other ideas has showed the
important of the secrecy of technology in this industry. Be able to protect their
technology also mean they can protect their Competitive Advantages and maintain their
market shares.

These two strategies in general, not only can help Samsung overcome and solve their
existed issued but also help develop in the matter of long-term. However, the strategies

51
only work if they have proper and detailed plans to support and process to implement
those plans accurate to have the best possible result.

B. Proposed methods and timetable for the

implementation of the long-term objectives and
specific strategies
The result of a strategies are based on the preparation and set up the plans as
well as resource to be able to implement the plan to achieved desire result in the end. In
this research we need to concentrate in two strategies are Market Development and
Products & Service Development. Each of these two strategies needs different approach
and preparation.

For the Market Development strategies, Samsung need to sort out their priorities regions
they want to expand their business over and the best method is using geographic factors.
With most of the manufacturing facilities are located in South Korea, it will be easier
for Samsung to step-by-step expand their business from near too far away. The Asia
markets have the best environment for Samsung to expand their business. They will
have the advantages of cultural and geographic as well as the resources and strategic
partner they need to help Samsung set up the foundation for the expansion. These
regions also have many countries that have the best technology advantages and
development such as Japan or China. These countries still don’t have any organizations
that are big enough to compete directly with Samsung Electronics. Therefore Samsung
will have strong Competitive Advantages over those competitors and allow them to
have the easiest path to acquire any firms or technology they need. However, the Asia
market or South-America market still content many developing and undeveloped
countries which make the customer group of this market is not very potential for
Samsung. To increase the revenue they need to focus on the European market which
have the strong economy status as well as have more potential customer group that are
willing to pay for higher and more modern technologies and products of Samsung.
Although this market already have some strong competitors that can compete with
Samsung such as Nokia, Samsung still have better technologies and competitive
advantages with their diversification. Beside the phone

52
manufacturing, Samsung Electronic also have many other companies that
manufacturing home appliances, laptop or television and make Samsung have more
stable financial resources to compete.

However, to implement the Products & Services Development strategies, Samsung will
need more time and resources than expand their market. The resources in this case is not
just financial resources but also the technology and sciences that requires to do research
and experience new technologies. Therefore, it will be easier and simpler to implement
if Samsung acquire the technologies that already been developed from small but
potential company from Japan or China. This will allow Samsung have install access
with new technology that can help them to maintain the market share or even have more
advantages over their competitors. Although this is easier to implement but this
strategies is too easy to imitate by their competitors. To actually have the technology
advantages over their competitors as well as ensure the competitive position of
Samsung, they still need to develop and invest into their Research & Development
department to actually invent and develop origin technology from Samsung that cannot
be copy or take over by their competitors.

These two strategies many have different goal but in general, they supporting each other
to achieve the final goals that is increase the revenue and profit of Samsung Electronics
in smartphone industries and not to mention about the time and the cost these strategies
need to implement. Therefore it is very important that these two strategies have a proper
and suitable timetable to implement that will guarantee the best possible result in the
end otherwise this will be the end of the Samsung Electric.

C. Recommendations for annual objectives and policies for

the company
With the strategies and plans that focus and concentrate in develop market and
products. Samsung also need to have some modification about their objectives as well
as policies of the company to suitable and adapt the new strategies that have been
planned. However if the key to success in implement the plan and strategies is to
complete step-by-step expansion in both market and products, Samsung need to choose
what strategies need to be implement first to have the best outcome they desires. The
recommendation from our research and analysis suggest that with the current situations

53
and combined all the external environment factors, it would be the best if Samsung
Electronic choose to implement the Market Development strategies first. The expansion
of market will also create opportunities for Samsung to seek and acquire more resources
in both financial and technologies that will provide support the requirement to develop
the products line of Samsung. The development of market also increase the variety and
diversities of customer that will also create more opportunities and maximize the
acceptant of customer with Samsung products. In summary, there will be three main
annual objectives that Samsung need to complete include:
• Enter and penetrate new market
• Building brand images and reputation in new market
• Seek and cooperate with potential organization.

Despite of being the easier strategies to implement, Samsung also need more
appropriate policies to support and guide all the strategic actions and tactical actions to
achieve the goals of the selected strategies, especially for the management of Samsung
Electronics. The current problems and issues of Samsung are the direct and indirect
result of poor management and therefore the policies of Samsung need to be modified to
change the behaviors as well as support the company strategies with guideline for
employees and employers of Samsung Electronics in both strategic action and tactical
actions to achieve the goals to develop market and products of Samsung in the
designated period of times. These policies can be summary in two mains objectives:
• Identified and orientated tasks, missions, strategies and goals of all
departments to support and contribute to the expansion of Samsung’s
markets.

• Identified and orientated tasks, missions, strategies and goals of all

departments to support and contribute to research, develop and experience
new technology for the development of new products lines.
It is very important that both the recommended objectives and policies of Samsung need
to involved support each other to achieve the final goals without conflicting each other's
interests and benefits. Otherwise the strategies will have reverse result and have
negative affect on Samsung Electronics.

54
 D. Recommendations on procedures for strategy review
and evaluation
All the plan and strategies will only work if they being supervise and observe to
make sure that no mistakes are occurred that can affect and hinder the development of
the strategies in the futures. It is very essential for Samsung to have a procedures to
review and evaluation each steps of the strategies so they can be able to identify the
problems to have proper response as fast as they can to prevent undesired result can
happens, or at least minimize the effect when something goes wrong. To ensure to have
the desire result in the end, it is recommended to apply and follow the three-step
valuation to analyses and check if the strategies and plans are going the desired way or
something already gone wrong to have the response for all the strategic action and
tactical action of Samsung Electronics. The three-step valuations include:
• Analyze: observe, collect and analyze all the necessary factors form
internal to external to identified potential threats and problem may
occurs of the plans or strategies
• Modification: adjust and modify the plans or strategies to eliminate or
minimize the effect of the threats and problem may occurs
• Implementation: begin to apply and implement the plans or strategies
after modified under supervision to ensure the result. Repeat the whole
procedures if necessary
The evaluation procedures are very important, especially when Samsung Electronic or
any organization in the industries can control or predicts the external environment. The
procedures will allow Samsung to have proper reaction with unexpected situation to
minimize all the damages and affect can happen if something goes wrong during the
implementation of the plans or strategies.

Conclusion
In conclusion, the recommended strategies for Samsung are based on the current
external and internal factors of Samsung and the industries at the moment. If assume all
the factors are unchanged, it is possible to ensure the positive outcome of Samsung
Electronic if they can adopt and follow the recommendations.

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The first outcome will be the large market expansion of Samsung in three important
regions: Asia,
South-America and European. These regions will not only provide the new market and
customer for all existed Samsung products but also help and support to build up the
Samsung brand and images which already been damages due to the competition with
Apple in the United States market in the past several years. These regions also the
“gold-mine” of technologies for Samsung to exploit and apply to create new and
improve the existed products lines of Samsung to add more value and create more
Competitive Advantages. These new technologies also help Samsung to develop and
create their competitive technologies that they will have absolute control and
monitoring.
The second outcome that Samsung can have is the development of the differentiation of
their Products line. With all the technologies they acquires during the market expansion,
they will have access and foundation to create new technologies to make their products
become more advance and unique thus will increase the advantages of their products in
the market in compare with other competitors.

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