Sneha Singh (747)

Tushar Swami (750) SAMSUNG

Aakshit Nangalia (701)
 Samsung Electronics in The World

• 216 worldwide operating hubs

• HQ in South Korea
• 15 Regional Offices in South Korea, North America, Europe,
Southeast Asia, Africa and other regions of the world.
Samsung| Timeline
Philosophy & Core Values
Tech. & Leadership Stakeholders’ Value
Innovation Creation

Capabilities &
Core
Competencies

Own Manufacturing Unit &

Brand Image
Vertical Integration
1. Technology & Leadership Innovation
 Samsung’s Technological Capabilities
Key activities
Main sources of capabilities
Level of technological
capabilities
International production
and scope of interaction
1970s
Conglomerate Diversification
J/V partners, Original
Equipment Manufacturer
(OEM) buyers and overseas
training
Capabilities in mass
production (TVs)
1990s
Entry into DRAM market
OEM buyers, foreign licensing, Acquisitions, strategic
reverse engineering
Broader product range (VCR,
MWO, DRAM, components),
but very weak in ability to
introduce a major change of
product.
US & EC for low-end markets
(limited success).
Centralized intra-firm
interaction.
2010s
Organizational reform,
Internationalization
alliances, in-house R&D.
Continued weakness in
product development
International production of
low-end items. Moving toward
decentralized intra- and inter-
firm interaction.
Source: US Berkley, eScholarship
World Leader in Innovation

World’s First Foldable Phone

2. Stakeholders’ Value Creation
 3. Own Manu. Unit & Vertical Integration

Digital Media Telecommunications Home Appliances Semiconductors

Semiconductors
23%
40%

48%

29% 8%

Home Appliances

• the company designs and manufactures not only its

phones, but many of the individual parts in them
• this helps mitigate traditional supply chain costs and
risks
 4. Brand Image

• Brand Image can be considered as one of the major criteria for customers when choosing
products or services.
• Samsung’s marketing strategy is one of the most effective strategies because it believes in
pulling the customer to themselves through advertising but at the same time uses strong
tactics to push the product to the customer through sales promotions.
• All of the products come under the name ‘Samsung electronics’ which is an umbrella
approach in its branding.
• Its slogan “The next big thing is here” has taken the company to top of the smartphone
market.
• Samsung’s smartphones have become their brand image driver, which helped the brand to
become a symbol of quality and reliability for its consumers.
 Samsung- “The Brand”

• Samsung has always been at the forefront of technology innovation

• From being one of the top smartphone players in the country, to making the first
projector-less theatre screen, to fitting smart air conditioning systems in modern
apartment complexes, Samsung’s varied product portfolio and investments show
India’s importance in its plans.
• Asim Warsi, senior vice president, mobile business, Samsung India. “Our
philosophy of keeping our ear to the ground and incorporating consumer feedback
into our products has enabled us to remain at the top in the smartphone market.”
• An interesting innovation Samsung brought to India this year has been the Onyx
screen, an LED theatre display
 Factors To Grow in India For A Smartphone Brand

• You cannot afford to ignore India which is likely to contribute

approximately 13 per cent to the worldwide handset market

Price
Durability Affordability
Sensitivity

Innovation Premium
 Focused on Durability Focused on Affordability and Innovation

Focused on Innovation, Affordability and Premium

Focused on Price Sensitivity Focused on Premium and Niche

 What Did Samsung Do?

• The success in the Indian market has been due to its relentless focus on delivering the best possible
phone at prices that are quite affordable. Today, as consumer demand for more capable devices
accelerate, Samsung is playing smart by offering products at punchy price points.
• Mobilising the masses- Samsung's India story started in 2007 with the launch of entry level Guru
series of mobile phones.
• Affordable handsets- cheaper price to a new target audience which is moving from feature phones
to smartphones.
• The company spends over 9 per cent of its global spends in R&D every year.
• Samsung Electronics launched its smartphone platform "bada" in India at the Global Developer Day
organised by the company in June 2010 in Bangalore. The idea, says Samsung, is to "democratise
the smartphone experience". In all, Samsung has over 50 models in India from entry level to mid-
range to high-end, including smartphones.
 What Can A New Company Do?

• The online-only business model has been successfully

• The competitive pricing, aggressive marketing, and faster adoption of the 4G technology of Chinese smartphone
companies are driving a sustained growth.
• Moreover, the integration of high-end specifications, importance on good cameras, and classy design are stuffed even into
the budget mobiles.
• The key restrictions faced by the Indian mobile makers are the sub-standard build quality, unwillingness to provide updated
firmware and seedy circuits. On contrary, the Chinese manufacturers are offering innovation, quality, and expertise in their
products which have put them an edge over its Indian rivals.
• The low penetration of smartphones in the average Indian family is something where the Indian makers can work on. They
can offer feature-rich smartphones to drive growth. Secondly, most Chinese smartphone makers lack good after-sales
service and support. This issue is a tough nut for these companies. Here, the Indian makers can focus and seize the
market control from Chinese manufacturers.
• Offering latest technology in a smartphone is another move Indian smartphone makers can take. For instance, providing
the trending features like dual rear camera, AR and VR compatibility in affordable range can be beneficial
References

• https://escholarship.org/uc/item/1gb7895k
• https://news.samsung.com/us/samsung-electronics-america-
a-history-of-innovation-and-invention/
• https://images.samsung.com/is/content/samsung/p5/global/ir/
docs/sustainability_report_2019_en_new.pdf