SAMSUNG ELECTRONICS

South Korea

D.Ramadevi(7064)

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

1980s: A more comprehensive electronics company

established plants in Portugal and US established Semiconductor and Communication corporation began memory chip business

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

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

Management and board of directors

Chief Executive Officer, Vice Chairman: Choi Gee-Sung Chief Financial Officer: Yoon Ju-hwa Chief Operating Officer, President: Lee Jae-Yong

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

PRODUCT

Price
4Ps IN MARKETING

PROMOTION

Place

Product

In 1970, Samsung Electronics made cheap 12-inch television sets under Sanyo label.

Now, capturing the number one position in the global memory chip market and pioneering the development of flat-screen displays, plasma TVs, multifunction cellphones, and other digital devices.

Product
Semiconductors : DRAM, SDRAM, flash memory, and hard
drives

Digital displays : LCD displays, Plasma displays, and OLED

displays

Home Electronics : TVs, DVD players, Blu-ray players, home

cinema systems, set-top boxes, and projectors

Mobile devices : mobile phones, MP3 players, digital cameras,

and camcorders

Computing products : monitors, laptops, UMPCs, CD and

DVD drives, laser printers, and faxes machine; and

Home appliances : refrigerators, washing machines,

microwaves, ovens, vacuum cleaners, and air conditioners.

design awakeness all your senses.

Samsung invested a lot of money in research and development, in order to meet what customers needs and wants. Samsung spent about 9% of revenue, amounting to around $5billion, in 2005 in research and development.

product

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

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, part of Thomson Reuters : The worlds leading source of

Samsung sells product with price that worthed, if we compared it with the functions, benefits and technology.

Samsung is in the process of building an image as a stylish, high quality brand commanding a premium price

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

PLACE

One of Samsungs store in America

PLACE
Samsung also has other distribution channels: Best Buy and Circuit City, who known as quality-oriented electronics speciality stores. 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).

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

Strengths
Existing knowledge and experience of electronics market Strong global presence with strong brand and customer base, in 2009 according to Interbrand Global value of Samsungs brand is US$ 17,518 million compare its competitor, Sony, which is US$ 11,953 million.

2009 Rank

2008 Rank

Brand

Country of Origin

Sector

Brand Value

Value

Value

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

Strengths (contd)
Market share: Global market share of mobile phone increase from 18% in 2004 to 19.1% in 2009. Memory chip Industry is 27% in 2009 compare with 21% at the end of 2008. It is the biggest manufacturer of liquidcrystal display panels with 23% share in 2005, increase to 26.2% in Q1 of 2009.

2009 Figures

Strengths (contd)
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, flash memory, optical storage drives

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

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

weakness (contd)
Huge investment on Research & Development
2007 (Mill won) 2006 (Mill won)

Sales
Research expenses Ordinary development expenses Total R&D R&D/Sales

98,507,817
2,353,844 3, 720, 115 6,073, 959 6.17 %

85,834,604
2,252,848 3,461, 914 5,714,762 6.66%

Consolidated Financial Statement years ended Dec 31, 2007 and 2006 (audited report) 1 US$ = 938 Won

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, More Developed Countries: 2009

Threats Increasing competition

DRAM (Q1-2009)

Rank 1
2 3 4

Company Samsung
Hynix Micron Technology Elpida Memory

Market Share 34.3%

21.6% 14.6% 14.2%

Qimonda

4.8%

 Increasing competition
LCD TV (Q3-2008) Rank 1 2 3 4 5 Company Samsung Sony Sharp Corporation LG Phillips Market Share 20.2% 13.8% 10.2% 9.3 % 7%

Increasing competition
Mobile phone (Q1-2009)

Rank 1 2
3 4 5

Company Nokia Samsung

LG Motorola Phillips

Market Share 36.2% 19.1%

9.9 % 6.2 % 5.4 %

 Decreasing Operating profit margins

2007 (Thousand US$) Sales Cost of Sales 105,018,995 75,566,005 2006 (Thousand US$) 91,508,107 64,025,507

Gross Profit
Selling, General and Adm exp Operating Profit Gross Profit Margin Operating Profit Margin

29,452,990
19,886,587 9,566,403 28.05 % 9.1%

27,482,600
17,750,164 9,732,436 30.03 % 10.6 %

Consolidated Financial Statement years ended Dec 31, 2007 and 2006 (audited report) 1 US$ = 938 Won

 Economic Slowdown, makes demand for electronics product weaken.

Financial Overview
REVENUE: 148.944 billion USD PROFIT: 12.059 billion USD TOTAL ASSETS: 135.131 billion USD

TOTAL EQUITY: 84.744 billion USD

Market share

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

Thank u.