BCG MATRIX

OF
SAMSUNG PRODUCTS
- JUBIN GALA
SNEHA BHOOTRA
SHARATH BABU
SHAIKH MOHAMMED
JOHN WESLEY
DING YONG JUN
MBWD 1025B.
Samsung Electronics was founded in 1969 in Suwon,
South Korea as Samsung Electric Industries.
In 1988, it merged with Samsung Semiconductor &
Communications.
 In 2005, Samsung surpassed Japanese rival Sony for the
first time to become the world's largest and most popular
consumer electronics brand as measured by Interbrand.
 In 2006,Samsung was rated 20th in the list of global brands
and innovation and 2nd in the electronics industry.
 In 2007, Samsung Electronics' handset division overtook
American rival Motorola, making it the world's second-largest
mobile phone maker. It was also ranked as the #1 company in
global brand in electronics.
In 2009, Samsung overtook Siemens of Germany and
Hewlett-Packard of the USA with a revenue of $117.4 billion
to take the No.1 spot as the world's largest technology
company.
CAMERAS LAPTOPS

BLUE RAY
MOBILE
AND DVD
PHONES
PLAYERS
MICROWAV
E REFRIGERATORS
OVENS

AIR
TELEVISIONS
CONDITIONERS
BCG MATRIX is a management tool that serves
four distinct purposes:

 It can be used to classify product portfolio in four

business types based on four graphic labels including
Stars, Cash Cows, Question Marks and Dogs;

 It can be used to determine what priorities should

be given in the product portfolio of a company;

 To classify an organisation’s product portfolio

according to their cash usage and generation;

 Offers management available strategies to tackle

various product lines.
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PHONE
CAMERAS

REFRIGE
RATOR
MICRO
WAVE

AIR
CON
LAPTOP
BLU RAY
T.V. DVD
PLAYER

** ALL FIGURES ARE ASSUMED **

 STRATERGIES NEEDED TO BE FOLLOWED
The five forces are :
1. Relations with suppliers :It means that Samsung needs to improve their relations
with the suppliers. This can be done with Suppliers relationship management and by
bringing the suppliers on a single platform.

2. Relations with buyers : Customer is the king. There is a need to improve their
relationships with the buyers or customers by developing appropriate marketing
strategy, timely delivery of the products and supply chain management

3. New entrants :It is important for Samsung to analyze the threats from new entrants
in the consumer electronic market.

4. Substitutes: With the emergence of chinese products in the market which can act as
the substitutes for Samsung products . Hence, it is important for Samsung to
implement Generic technology strategies which includes:
Cost leadership (e.g. Lower/cheaper material input, logisitics)
Differentiation (e.g. Enhance features, deliverability)
Cost focus (minimum features) y Differentiation (niche markets)

5. Rivalry amongestablished firms: There is a strong competition between the already

existing firms like Nokia, Sony, Apple, LG, etc.
 RECOMMENDATIONS
 Build:The product or SBU’s market share needs to be increased to
strengthen its position. Short-term earnings and profits are deliberately
forfeited because it is hoped that the long-term gains will be higher than
this. This strategy is suited to Question Marks if they are to become stars.
 Hold:The objective is to maintain the current share position and this
strategy is often used for Cash Cows so that they continue to generate
large amounts of cash.
 Harvest:Here management tries to increase short-term cash flows as far
as possible (e.g. price increase, cutting costs) even at the expense of the
products or SBU’s longer-term future. It is a strategy suited to weak Cash
Cows or Cash Cows that are in a market with a limited future. Harvesting
is also used for Question Marks where there is no possibility of turning
them into Stars, and for Dogs.
 Divest:The objective of this strategy is to rid the organisation of the
products or SBUs that are a drain on profits and to utilize these resources
elsewhere in the business where they will be of greater benefit. This
strategy is typically used for Question Marks that will not become Stars
and for Dogs.
THANK
YOU