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SCM Samsung Company
SCM Samsung Company
SAMSUNG
Presented by:
Avila, Chen-Chen E.
Mangco, Hanida
College Instructor
BACKGROUND OF THE STUDY
The South Korean company Samsung specializes in the production of a wide variety of
company exporting various products from South Korea to Beijing, China. Founded by
The word Samsung means "three stars" in Korean. It became the name associated with
different types of business establishments in South Korea and in various parts of the
After the Korean War, the business expanded into textiles and opened the largest
woolen mill in Korea. Lee focused heavily on industrialization with the goal of helping his
country redevelop itself after the war. During that period the business benefited from the
new protectionist policies adopted by the Korean government, whose aim was to help
providing them easy financing. In the late 1950s the company acquired three of Korea’s
largest commercial banks as well as an insurance company and firms that made
cement and fertilizer. Samsung in the 1960s acquired more insurance companies as
During the 1970s the company expanded its textile-manufacturing processes to cover
the full line of production—from raw materials all the way to the end product—to better
compete in the textile industry. New subsidiaries such as Samsung Heavy Industries,
established. Also, during the same period, the company started to invest in the heavy,
path.
In 1969, Samsung Electronics was born. From there, the company started acquiring and
plant, life insurance Company, department stores and many others. The company was
destined to become a household name starting in its mother country and spanning its
reach to many other cities internationally. Samsung Electronics started catering to the
international market in the seventies kicking off with the corporation's acquisition of half
country.
market with high-tech products that will become a staple in every home. This
development continued on through the next decade as Samsung kept on going beyond
its boundaries and restructuring its business plan to accommodate the global scene.
Adopting a new form of management proved to be a wise move for the company as its
products made their way on the list of top must-haves in their various fields. TV-LCD's,
picture tubes, Samsung printers and other high-tech products became popular
acquisitions due to their high quality. When Samsung ventured into the LCD industry in
providing only the best products to the whole world. It applies a "Line Stop" system
wherein anybody can stop the process of production in the event that substandard
To date, Samsung continues to maintain its status as the "world's best" technology
provider. Its highly qualified workforce is still striving for excellence in their respective
fields making the whole company a huge success in the making. The secret to the
structure and the application of its philosophies: "We will devote our human resources
and technology to create superior products and services, thereby contributing to a better
global society."
ISSUES/ PROBLEMS
1. Main competitors are also largest buyers: the competitors like 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, like the competitors could
not find complementary products and would form a relatively low share Samsung’s
revenues, Because of it could use its bargaining power over competitors. Due to
reverse conditions like competitors can find complements and they form a relatively high
share of firm’s revenues, the Samsung cannot use its bargaining power over
2. .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. Samsung is
a hardware leader but has too much of dependence for software from other parties,
3. Too low profit margin: Samsung Electronics is the largest technology company in
the world in terms of revenues but it has low gross profit and net profit margins.
Although its smartphones business is quite profitable, Samsung’s profit margin is low
The Samsung Company is required to amplify its brand image, identity, product
portfolio, its architecture, brand vision, and brand positioning. Further, it should invest
more capital in technology, design capabilities, and brand marketing just to remain in
the competitive market and to maintain lead over its competitors. As we know,
reputation is very precious for every brand, so, Samsung should ensure the quality of its
As some past incidents like recalling Note 7. unlocking problems with Galaxy S9 and
S10 caused a bad impact on Samsung's goodwill in the world market. Therefore,
Samsung needs to understand that testing a device is also as much important as the
functionality of a device and they should spend more money on the testing facility as
they spend on research and development. It will not only save their money as well as
save them from global embarrassment due to their negligence which demolishes their
brand value.
They should focus more on Quality rather than quantity. Additionally. Samsung also
required to build brand equity in other product categories such as laptops, tablets, and
accessories. Moreover, it should work more on creating its personality and making an
creating emotional connections to one company that distinguishes it from the others, it
is all about creating brand faithfulness overtimes. Apple and BMW are well-known
examples of this.
For engaging more customers, Samsung should make proper use of social media like
Facebook, YouTube, Instagram, Twitter, and Etcetera for the promotion of their
products. Besides this, it should employ or take help from Public Relations
Professionals in building their brand image and position in the market. Samsung should
also pay attention to making its software for its products. As Samsung is only a
hardware company, it has to depend upon other companies like Google and Microsoft
for the operating system for their goods. Apple owns its operating system for all its
products.
CONCLUTION
With the ever growing threats in the technology industry, companies must learn to
predict and adapt to their consumers and their environments in order to remain a
competitive force in this market. As a team, we have learned that in order for Samsung
to grow and succeed, they must focus on the users of their technology and cater to their
constantly evolving wants and needs. In order to be successful, companies will need to
create the latest cutting-edge operating systems, application stores, and their own
unique software.
They must take their current innovations, and simplify them, to develop products that
have similar features and benefits, at a fraction of the price to consumers. Research
and development along with innovation are clearly necessary to companies that have
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