PRESENTED BY: MOHAMMAD JISHAN

INTRODUCTION

• Multinational corporation• Headquartered in Samsung

Town, Seoul, South Korea. • It is South Korea's

largest chaebol and the world's largest conglomerate by revenue with an annual revenue of US $173.4 billion in 2008.

• Composed of numerous international affiliated businesses, most of them united under the Samsung brand including Samsung Electronics the world's largest electronics company.

• Samsung company started moving into businesses such as insurance, securities, and retail.

• In the late 1960s, Samsung Group began the electronics industry. It formed several electronics-related divisions.

HISTORY OF SAMSUNG

• 1965-1971

Samsung –Sanyo electrical founding period

• 1972-1974

Samsung was setting the base for development.

HISTORY OF SAMSUNG1975-1976

revenue expansion period.1977-1979

the fast development period.1980-1982overcoming the depression, developing the tech.

HISTORY OF SAMSUNG

• 1983-1985

leading the export and developing.• 1986-1989 changing the direction to overseas

HISTORY OF SAMSUNG 1990-1999

Advancing towards the millennium.

2000-2002

Leading the digital convergence revolution.

HISTORY OF SAMSUNG• 2002-2003

initiative to become world class company• 2003-2004

the first year as an excellent company.• 2004-2006

laying the foundation to become a world class co.

Samsung Electronics: Innovation and Design StrategyIntroduction:

The case study commences with the integration of innovative design and brand management by Samsung Electronics which started a new trend in the electronics industry. As discussed in the case, initially Samsung was not much popular and lacked design identity but later it relocated itself by:Improvement in the product development processesIncreasing their investments in R&D and product design i.e. R&D globalization.By adopting right innovation strategies.By mastering the less tangible, more intuitive qualities of superior design.By diversification of products and step by step or continual improvement.Implementing Global localization strategy.Achieving Vision of leading in digital convergence by using e-processes (electronic integration of processes by going online).All these methods were implemented by Samsung in order to improve its productivity and to gain competitive advantage over its competitors like LG Electronics, Sony, Apple Computer Inc., etc. Despite this, Samsung is facing the challenge to stay ahead in competition in the near future. Consumer electronics industry is facing a tough competition and the need of the hour is to optimize the R & D costs, having relevant information regarding the IPR (Intellectual Property Rights) while design outsourcing and using appropriate product design followed by appropriate market strategy.

Along with this Samsung also increased the investments in their R&D centers. After doing the trend analysis for the Exhibit 3 which shows the Samsung R&D budget and percentage sales,

Innovation and product Design at Samsung ElectronicsSamsung Electronics leading position was contributed by the enlisted factors:Creative people in the organization which contributed in the development of technology.Co-operation between the business partners throughout the supply chainFirms ability in exploring end penetrating into the new marketsSpeed of innovation and product development.

PERCENTAGE SALES

CONTINUEDWe arrive at the conclusion that the Samsung’s R&D budget increased till the year 2007 linearly. But there is decline in the percentage of sales in the year 2007, which suggests that the Samsung will need to rethink this strategy. There is an urgent need to optimize the cost related to Samsung’s R&D expenditure to prevent the decline of sales in future.Samsung globalized their R&D network worldwide to develop technologies which can be commercialized in the future. Basically the main idea behind the globalization of R&D network is to:

Focus on innovation and generating new products for global market. There is a huge scope of product improvement. This provides an access to the emerging markets. Leverages the market opportunity for the firm.

Comparison of Percentage SalesIt is clear from the graph that both Nokia and Motorola are ahead than Samsung in terms percentage of net sales. This means that Samsung needs to redesign and reform their business network to gain competitive advantage from its competitors. Moreover in 2007, there is a slight decline in sales for Samsung which is a cause of concern. Though, Samsung is relatively doing well as compared to its competitors Apple, LG and Sony.

Samsung Electronics Products

STRENGTHS Samsung has strong global brand recognition, which it has leveraged on social

media to reach and engage with a large consumer audience (Walgrove, 2015). Samsung uses event sponsorships, social influencers, and celebrity endorsers to

promote its social content and increase consumer engagement (Walgrove, 2015). Samsung utilizes unique, entertaining, and sharable content across its social media

accounts and encourages consumer conversations centered around its posts (Walgrove, 2015).

Samsung has a major presence on all of the most popular social media platforms, including Facebook, Twitter, YouTube, and Instagram (Walgrove, 2015).

Samsung’s social media managers operate like humans, rather than strictly corporate business entities.

Samsung has highly-responsive, dedicated customer support teams available through its dedicated social media accounts (Kohler, 2015).

WEAKNESSES Samsung has to invest more time and resources into its social media presence than its top

competitor Apple, in order to build and maintain top-of-mind awareness among the consumer audience (Walgrove, 2015).

Samsung does not focus on a specific niche, which can make it difficult to define its target social media audience.

Samsung does not consistently emphasize an active presence across all of its social media accounts, usually focusing on a certain product line, event, or campaign through an integrated content approach that may not utilize certain accounts or platforms (Walgrove, 2015).

Samsung is often perceived as a fast follower by many consumers, which can decrease the effectiveness of its social media messaging, particularly when it compares itself to Apple (Walgrove, 2015).

Samsung does not charge prices as high as some of its primary competitors like Apple and Sony. As a result, consumers can perceive a link between its comparatively low prices and assume low product quality.

OPPORTUNITIES Samsung can continue to expand its social media presence and visibility to meet

increased American adult social media usage, as nearly 65% of American adults use social media in 2015 (Perrin, 2015, p. 1).

Younger Americans are becoming increasingly dependent on social media as part of their everyday lives, which is an opportunity for Samsung to target and engage younger consumers through social media to strengthen its brand.

Samsung can drive its consumer engagement through the increased use of social media sweepstakes and contests, particularly on Twitter and Facebook.

Samsung can continue to target influential followers on different social media platforms to encourage more consumer awareness and sharing of its social media content.

Samsung can continue to utilize social media metrics and consumer feedback to respond to shifting consumer preferences and directly message its core consumer groups in real-time (Ungerleider, 2014, p. 1).

THREATS Samsung’s marketing focus is very broad, targeted at capturing the largest consumer

audience possible due to the scope of the global consumer electronics market (Walgrove, 2015).

Samsung has a variety of product lines, businesses, and geographic markets, which can lead to difficulties in consumer discovery of its social media content due to the large number of accounts it operates (Walgrove, 2015).

A saturated smartphone market in developed countries and new, low-cost competitors, like Chinese manufacturer Xiaomi, are increasing the amount of competing brands present on social media (Kovach, 2014).

Encouraging open, two-way communication with consumers could damage Samsung’s brand image if it receives a strongly negative response to its products or campaigns.

Apple has not prioritized social media marketing to reach consumers in the past, but it may begin to do so in the future (Campbell, 2015).

• As stated in its new motto, Samsung Electronics' vision for the new decade is, "Inspire the World, Create the Future.“

• Commitment to inspiring communities by holding samsung’s three key strength

1) New technology2) Innovative product3) Creative solutions

Plan of reaching $400 billion in revenue and becoming one of the world’s top fivebrands by 2020. To this end, Samsung has also established three strategicapproaches in its management: Three key strategic pillars are:“Creativity,” “Partnership,” and “Talent”.

VISION 2020