INTRODUCTION TO ELECTRONICS INDUSTRY

The electronics industry, especially meaning consumer electronics, emerged in the 20th

century and has now become a global industry worth billions of dollars. Contemporary

society uses all manner of electronic devices built in automated or semi-automated factories

operated by the industry. Products are assembled from integrated circuits, principally by

photolithography of printed circuit boards.

The size of the industry and the use of toxic materials, as well as the difficulty of recycling

has led to a series of problems with electronic waste. International regulation and

environmental legislation has been developed in an attempt to address

Consumer electronics are electronic equipment intended for everyday use, most often in

entertainment, communications and office productivity. In British English they are often

called brown goods by producers and sellers.

Radio broadcasting in the early 20th century brought the first major consumer product, the

broadcast receiver. Later products include personal computers, telephones, MP3 players,

audio equipment, televisions, calculators, GPS automotive electronics, digital cameras and

players and recorders using video media such as DVDs, VCRs or camcorders. Increasingly

these products have become based on digital technologies, and have largely merged with the

computer industry in what is increasingly referred to as the consumerization of information

technology.

The CEA (Consumer Electronics Association) estimated the value of 2007 consumer

electronics sales at US$150 billion.

HISTORY

The electric power industry began in the 19th century and this led to the development of all

manner of inventions. Gramaphones were an early invention and this was followed by radio

transmitters and receivers and televisions. The first digital computers were built in the 1940s

with a slow development in technology and total sales. In the 1990s the personal computer

became popular. A large part of the electronics industry is now involved with digital

technology.

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The industry now employs large numbers of electronics engineers and electronics technicians

to design, develop, test, manufacture, install, and repair electrical and electronic equipment

such as communication equipment, medical monitoring devices, navigational equipment, and

computers.

For its first fifty years the phonograph did not use electronics. However, in the 1920s radio

broadcasting became the basis of mass production of radio receivers. The vacuum tubes that

had made them practical were used to improve record players as well. Television was soon

invented but remained insignificant in the consumer market until the 1950s.

The transistor, invented in 1947 by Bell Laboratories, led to significant research in the field

of solid-state semiconductors in the early 1950s. The transistor's advantages revolutionized

that industry along with other electronics. By 1959 Fairchild Semiconductor had introduced

the first planar transistor from which come the origins of Moore's Law. Integrated circuits

followed when manufacturers built circuits (usually for military purposes) on a single

substrate using electrical connections between circuits within the chip itself.

“ When we were patenting this [planar transistor] we recognized it was a significant

change, and the patent attorney asked us if we really thought through all the

ramifications of it. And we hadn't, so Noyce got a group together to see what they

could come up with and right away he saw that this gave us a reason now you could

run the metal up over the top without shorting out the junctions, so you could

actually connect this one to the next-door neighbor or some other thing. – Gordon

Moore ”

Bell's invention of the transistor and the development of semiconductors led to far better and

cheaper consumer electronics

ELECTRONICS INDUSTRY IN INDIA

HISTORICAL DEVELOPMENTS

The Indian electronics industry had its origins to the year 1965 with an orientation towards

space and defence technologies. This was rigidly controlled and initiated by the government.

This was followed by developments in consumer electronics mainly with transistor radios,

black & white TVs, calculators, and other audio products. Colour televisions soon followed.

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1982 was a significant year in the history of television in India when the government allowed

thousands of color TV sets to be imported into the country to coincide with the broadcast of

Asian Games in New Delhi. 1985 saw the advent of Computers and Telephone exchanges,

which were succeeded by Digital Exchanges in 1988. The period between 1984 and 1990 was

the golden period for electronics during which the industry witnessed continuous and rapid

growth.

CURRENT SCENARIO

The electronics market is one of the largest in the world and is anticipated to reach US$ 400

billion in 2022 from US$ 69.6 billion in 2012.

The market is projected to grow at a compound annual growth rate (CAGR) of 24.4 per cent

during 2012-2020.

The electronics sector consists of consumer and industrial electronics, computers,

communication and broadcasting equipment, strategic electronics and electronic components.

Total production of electronics hardware goods in India is estimated to reach US$ 32.7

billion in FY13 and US$ 104 billion by 2020. The communication and broadcasting

equipment segment constituted 31 per cent, which is the highest share of total production of

electronic goods in India in FY13, followed by consumer electronics at 23 per cent.

The consumer electronics and durables industry is currently poised at about Rs 340 billion.

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WHAT IS RESEARCH

Research comprises "creative work undertaken on a systematic basis in order to increase the

stock of knowledge, including knowledge of humans, culture and society, and the use of this

stock of knowledge to devise new applications."

Research is a systematic investigation to search for new facts in any branch of knowledge.

Research helps to arrive at new conclusions. It enables to find solutions to certain problems.

Research is often referred to as ‘scientific inquiry’ into a specific problem or situation. This is

because; the search for facts needs to be undertaken systematically and not arbitrarily. The

systematic approach to research enables the research to search for facts in a rational manner

and to arrive at logical conclusions, whereas, the arbitrary approach attempts to find solutions

to problems based on one’s belief and imagination.

It is used to establish or confirm facts, reaffirm the results of previous work, solve new or

existing problems, support theorems, or develop new theories. A research project may also be

an expansion on past work in the field. To test the validity of instruments, procedures, or

experiments, research may replicate elements of prior projects, or the project as a whole. The

primary purposes of basic research (as opposed to applied research) are documentation,

discovery, interpretation, or the research and development (R&D) of methods and systems for

the advancement of human knowledge. Approaches to research depend on epistemologies,

which vary considerably both within and between humanities and sciences. There are several

forms of research: scientific, humanities, artistic, economic, social, business, marketing,

practitioner research, etc.

Research is not confined to science and technology only. There are vast areas of research in

other disciplines such as languages, literature, history and sociology. Whatever might be the

subject, research has to be an active, diligent and systematic process of inquiry in order to

discover, interpret or revise facts, events, behaviours and theories. Applying the outcome of

research for the refinement of knowledge in other subjects, or in enhancing the quality of

human life also becomes a kind of research and development.

Research is done with the help of study, experiment, observation, analysis, comparison and

reasoning. Research is in fact ubiquitous. For example, we know that cigarette smoking is

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injurious to health; heroine is addictive; cow dung is a useful source of biogas; malaria is due

to the virus protozoan plasmodium. How did we know all these? We became aware of all

these information only through research. More precisely, it seeks predictions of events,

explanations, relationships and theories for them.

Research is, thus, an original contribution to the existing stock of knowledge making for its

advancement. It is the pursuit of truth with the help of study, observation, comparison and

experiment. In short, the search for knowledge through objective and systematic method of

finding solution to a problem is research. The systematic approach concerning generalisation

and the formulation of a theory is also research. As such the term ‘research’ refers to the

systematic method consisting of enunciating the problem, formulating a hypothesis,

collecting the facts or data, analyzing the facts and reaching certain conclusions either in the

form of solutions(s) towards the concerned problem or in certain generalisations for some

theoretical formulation.

It is divided into two general categories:

(1) Basic research is inquiry aimed at increasing scientific knowledge, and

(2) Applied research is effort aimed at using basic research for solving problems or

developing new processes, products, or techniques.

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DEFINITIONS

Research has been defined in a number of different ways.

A broad definition of research is given by Martyn Shuttleworth - "In the broadest

sense of the word, the definition of research includes any gathering of data,

information and facts for the advancement of knowledge."

Another definition of research is given by Creswell who states that - "Research is a

process of steps used to collect and analyze information to increase our understanding

of a topic or issue". It consists of three steps: Pose a question, collect data to answer

the question, and present an answer to the question.

The Merriam-Webster Online Dictionary defines research in more detail as "a

studious inquiry or examination; especially  : investigation or experimentation aimed

at the discovery and interpretation of facts, revision of accepted theories or laws in the

light of new facts, or practical application of such new or revised theories or laws".

William C. Emory in the book ‘Business Research Methods’ defines “research is any

organised inquiry designed and carried out to provide information for solving a

problem.”

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WHAT IS RESEARCH METHODOLOGY

“Methodology” implies more than simply the methods you intend to use to collect data. It is

often necessary to include a consideration of the concepts and theories which underlie the

methods.

The process used to collect information and data for the purpose of making business

decisions. The methodology may include publication research, interviews, surveys and other

research techniques, and could include both present and historical information.

In simple terms, methodology can be defined as, giving a clear cut idea on what methods or

process the researcher is going to use in his or her research to achieve research objectives. In

order to plan for the whole research process at a right point of time and to advance the

research work in the right direction, carefully chosen research methodology is very critical. In

other words; what is Research methodology can be answered as it maps out the whole

research work and gives credibility to whole effort of the researcher.

More over methodology guides the researcher to involve and to be active in his or her

particular field of enquiry.

Right from selecting the topic and carrying out the whole research work till

recommendations; research methodology drives the researcher and keeps him on the right

track. The entire research plan is based on the concept of right methodology.

Further, through methodology the external environment constitutes the research by giving an

in depth idea on setting the right research objective, followed by literature point of view,

based on that chosen analysis through interviews or questionnaires findings will be obtained

and finally concluded message by this research.

On the other hand from the methodology, the internal environment constitutes by

understanding and identifying the right type of research, strategy, philosophy, time horizon,

approaches, followed by right procedures and techniques based on his or her research work.

Research methodology acts as the nerve center because the entire research is bounded by it

and to perform a good research work, the internal and external environment has to follow the

right methodology process.

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Methodology is the systematic analysis of the methods applied to a field of study. It

comprises the theoretical analysis of the body of methods and principles associated with a

branch of knowledge.

A methodology does not set out to provide solutions. Therefore, it is not the same thing

method. Instead, it offers the theoretical base for understanding which method, set of methods

or so called “best practices” can be applied to specific case. For example, it may indicate the

method that can be used to collect data to solve the problem of declining sales.

Research methodology is a systematic way to solve a problem. It is a science of studying how

research is to be carried out. Essentially, the procedures by which researchers go about their

work of describing, explaining and predicting phenomena are called research methodology. It

is also defined as the study of methods by which knowledge is gained. Its aim is to give the

work plan of research.

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the

various steps that are generally adopted by a researcher in studying his research problem

along with the logic behind them. It is necessary for the researcher to know not only the

research methods/techniques but also the methodology. Researchers not only need to know

how to develop certain indices or tests, how to calculate the mean, the mode, the median or

the standard deviation or chi-square, how to apply particular research techniques, but they

also need to know which of these methods or techniques, are relevant and which are not, and

what would they mean and indicate and why. Researchers also need to understand the

assumptions underlying various techniques and they need to know the criteria by which they

can decide that certain techniques and procedures will be applicable to certain problems and

others will not. All this means that it is necessary for the researcher to design his

methodology for his problem as the same may differ from problem to problem. For example,

an architect, who designs a building, has to consciously evaluate the basis of his decisions,

i.e., he has to evaluate why and on what basis he selects particular size, number and location

of doors, windows and ventilators, uses particular materials and not others and the like.

Similarly, in research the scientist has to expose the research decisions to evaluation before

they are implemented. He has to specify very clearly and precisely what decisions he selects

and why he selects them so that they can be evaluated by others also.

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DEFINITIONS

Merriam- Webster Dictionary provides two definitions on research methodology as

follows:

1. “The analysis of the principles of methods, rules, and postulates employed by a

discipline”.

2. “The systematic study of methods that are, can be, or have been applied within a

discipline.”

Research methodology is the name of the methods and ways through which a research

process is going to be completed and measured.

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OBJECTIVE OF STUDY

A profound knowledge or understanding would provide a clue as to preferences of

one brand over the other, the motive behind brand loyalty and how brand awareness is

built.

To understand the marketing strategies adopted by the company.

To understand the market position of the company.

To know about the awareness of the products in the market.

To understand the marketing mix of the company.

DATA COLLECTION METHOD

Both primary and secondary data were chosen to collect the data that were used in analyzing

the research study.

Primary data were obtained through questionnaires given to respondents while the secondary

data were gathered through Journals, articles, internet and other published materials.

LIMITATIONS OF THE STUDY

The data may not be completely accurate as the sample size was small and does not

represent the entire universe.

Unable to obtain company certificate due to time constraint.

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SAMSUNG ELECTRONICS Co. Ltd.

Samsung Electronics Co., Ltd. is a South Korean multinational electronics company

headquartered in Suwon, South Korea. It is the flagship subsidiary of the Samsung Group,

accounting for 70% of the group's revenue in 2012, and has been the world's largest

information technology company by revenue since 2009. Samsung Electronics has assembly

plants and sales networks in 80 countries and employs around 370,000 people. Since 2012,

the CEO is Kwon Oh-Hyun.

Samsung has long been a major manufacturer of electronic components such as lithium-ion

batteries, semiconductors, chips, flash memory and hard drive devices for clients such as

Apple, Sony, HTC and Nokia.

In recent years, the company has diversified into consumer electronics. It is the world's

largest manufacturer of mobile phones and smartphones fueled by the popularity of its

Samsung Galaxy line of devices. The company is also a major vendor of tablet computers,

particularly its Android-powered Samsung Galaxy Tab collection, and is generally regarded

as pioneering the phablet market through the Samsung Galaxy Note family of devices.

Samsung has been the world's largest manufacturer of LCD panels since 2002, the world's

largest television manufacturer since 2006, and world's largest manufacturer of mobile

phones since 2011. Samsung Electronics displaced Apple Inc. as the world's largest

technology company in 2011 and is a major part of the South Korean economy. In June 2014

Samsung published the Tizen OS with the new Samsung Z.

For over 70 years, Samsung has been dedicated to making a better world through diverse

businesses that today span advanced technology, semiconductors, skyscraper and plant

construction, petrochemicals, fashion, medicine, finance, hotels, and more. Our flagship

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company, Samsung Electronics, leads the global market in high-tech electronics

manufacturing and digital media.

Through innovative, reliable products and services; talented people; a responsible approach to

business and global citizenship; and collaboration with our partners and customers, Samsung

is taking the world in imaginative new directions.

MISSION

Everything we do at Samsung is guided by our mission: to be the best “digital-εCompany”.

Samsung grew into a global corporation by facing challenges directly. In the years ahead, our

dedicated people will continue to embrace many challenges and come up with creative ideas

to develop products and services that lead in their markets. Their ingenuity will continue to

chart Samsung’s course as a profitable, responsible global corporation.

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VISION

Samsung is guided by a singular vision: to lead the digital convergence movement.

We believe that through technology innovation today, we will find the solutions we need to

address the challenges of tomorrow. From technology comes opportunity-for businesses to

grow, for citizens in emerging markets to prosper by tapping into the digital economy, and

for people to invent new possibilities.

It’s our aim to develop innovative technologies and efficient processes that create new

markets, enrich people’s lives and continue to make Samsung a trusted market leader.

VISION 2020

As stated in its new motto, Samsung Electronics' vision for the new decade is, "Inspire the

World, Create the Future."

This new vision reflects Samsung Electronics’ commitment to inspiring its communities by

leveraging Samsung's three key strengths: “New Technology,” “Innovative Products,” and

“Creative Solutions.” - and to promoting new value for Samsung's core networks - Industry,

Partners, and Employees. Through these efforts, Samsung hopes to contribute to a better

world and a richer experience for all.

As part of this vision, Samsung has mapped out a specific plan of reaching $400 billion in

revenue and becoming one of the world’s top five brands by 2020. To this end, Samsung has

also established three strategic approaches in its management: “Creativity,” “Partnership,”

and “Talent.”

Samsung is excited about the future. As we build on our previous accomplishments, we look

forward to exploring new territories, including health, medicine, and biotechnology. Samsung

is committed to being a creative leader in new markets and becoming a truly No. 1 business

going forward.

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HISTORY

Samsung Group, based in Seoul, is South Korea's largest business group. The multinational

conglomerate contains numerous subsidiaries and affiliated businesses, most of them under

the Samsung brand.

Here are key dates in the company's history:

1938: Samsung is founded by Lee Byung-chull as a trading company.

1953: After the Korean War, Lee forms profitable Cheil Sugar, which is followed by textile,

banking and insurance enterprises.

1961: Despite a political coup, charges against Lee of illegal profiteering and a 1966 family

scandal of smuggling, the company grows by diversifying into paper products, department

stores and publishing.

1969: Lee, with the help of Sanyo, establishes Samsung Electronics. It produces inexpensive

TVs, microwave ovens and other consumer products for Western companies such as Sears

and General Electric.

1970s: Under a government policy of rapid industrialization, Samsung launches a number of

enterprises in ship building, petrochemicals and aircraft engines.

1980s: The Company is exporting electronics under its own name.

1983: Samsung begins production of personal computers.

1987: Lee's son, Lee Kun-hee, assumes control of Samsung.

1988: Samsung Semiconductor and Telecommunications merges with Samsung Electronics.

Its core business focus is home appliances, telecommunications and semiconductors.

1990: Samsung becomes a world leader in chip production.

1994: Samsung Motors is formed.

1996: Lee Kun-hee is involved in a corruption scandal and gets a suspended sentence for

bribery.

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1998: Samsung completes the development of flat-screen televisions and begins the first mass

production of digital TVs. Samsung Motors delivers its first cars.

2005: Samsung develops the first speech-recognition phone.

2007: Samsung Group is accused of political bribery and influence-peddling throughout the

South Korean government, judicial branch and the media.

2012: Samsung Electronics becomes world's largest mobile phone-maker by unit sales,

overtaking Nokia, the market leader. U.S. jurors rule Samsung must pay Apple (AAPL) $1.05

billion in damages for violating six Apple patents on smartphone technology.

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BUSINESS DESCRIPTION

Samsung Electronics, Co., Ltd., a part of Samsung Group, is the world’s largest technology

company by revenues. The company produces consumer electronics, telecoms equipment,

semiconductors and home appliances. Samsung Electronics business is divided into three

divisions:

Consumer electronics. Visual Display Business, Digital Appliances Business, Printing

Solutions Business and Health & Medical Equipment Business.

IT and Mobile communications. Mobile Communications Business and Networks Business.

Device solutions. Memory Business, System LSI Business and LED Business.

The company is the world’s largest mobile phones and smartphones vendor. It is the largest

memory chip maker and the largest TV manufacturer. Company operates in 80 countries,

where it sells more than 100 products.

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PRODUCTSMobile PhonesTablet PCLaptops and Chrome DevicesLCD and LED TelevisionsCameras

GENERAL ANALYSIS

SWOT ANALYSIS

STRENGTHS

Diversified Business Mix

Samsung offers a wide range of electronic goods under diverse businesses allowing it to

effectively manage and mitigate risk. The company operates through four business division,

namely, Consumer Electronics (CE), Information Technology &Mobile Communications

(IM), Semiconductor Business, and Display Business (DB). The company’s CE business

division offers color TVs, monitors, MP3 players, DVD players, home theater systems,

digital camcorders and portable entertainment devices, Touch of Color TVs and 4th-

generation Blu-ray disc players, among others. It also manufactures and sells handsets,

networking systems and other consumer electronics including home appliances such as air

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STRENGTHSDiversified Business MixWide Geographic ReachWEAKNESSLegal ProceedingsOPPORTUNITIESRising Demand for SmartphonesNew Product LaunchesGrowing Demand for LTE TechnologyTHREATSIntense CompetitionFalling Demand for PC's & TV's

conditioners, refrigerators, air purifiers, microwaves, washing machines and remote

controlled digital home networks incorporating new technology and design for consumers.

The IM business division of Samsung provides communication systems, laser printers,

computers, and tablets and mobile phones, among others. The company’s Semiconductor

Business division offers dynamic random access memory, static random access memory,

NAND flash memory, Solid State Drives, logic and analog integrated circuit devices, display

driver IC, CMOS image sensor, mobile application processor, smart card IC, and media

player SoC, among others. Samsung’s Display Business division offers panels for TVs,

digital information displays, notebook PCs and desktop monitors. It produces various display

panels for mobile products. The division also manufactures next-generation products such as

ultra-slim, edge-lit LED-backlit LCD panels, and advancements in LED-backlit panel design,

and 240Hz LCD technology. In2013, the company generated 53.8% of revenue from IM

business, followed by, CE business with 22.5%, Semiconductor with 12.7%, and DP business

with 11%.

Wide Geographical Reach

The company operates through more than 200 offices in over 80 countries. Samsung’s major

sales offices are located in Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia,

the Philippines, Singapore, Thailand, Russia, Ukraine, Kazakhstan, Austria, Serbia, France,

Germany, Greece, the UAE, South Africa, Turkey, Jordan, the US, the UK, Canada, Mexico,

Argentina, Brazil, Peru, and Panama, among others. Geographically, the company operates

across five regions, namely, Korea, America, Europe, Asia and Africa, and China. For the

fiscal year ended December 2013, the company generated 34.7% revenue from Korea, 17%

from America, 14.2% from Europe, 13.7% from Asia and Africa, and 20.4%from China.

WEAKNESSES

Legal Proceedings

Involvement in litigation mainly on products and their features may result in increasing

expenses, which in turn affect its profits and brand image. In March 2014, ZiiLabs Inc., Ltd

filed a patent infringement lawsuit in the US against Samsung Electronics Co Ltd and Apple

Inc alleging that certain products of Samsung (including various Galaxy phones and tablets,

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and laptops) and Apple (including various ranges of the iPhone and iPad, iMac and Mac

Book Pro) infringe a number of ZiiLabs patents.

Moreover, DSS Technology Management, Inc. filed a patent infringement lawsuit against

Samsung Electronics Co, Taiwan Semiconductor Corporation and NEC Corporation of

America in the United States District Court alleging infringement by Samsung, NEC and

TSMC of patents related to semiconductor manufacturing.

In November 2013, LARGAN Precision Co Ltd filed a lawsuit against Samsung, Samsung

Electronics America, Inc. and Samsung Telecommunications America, LLC, with U.S.

District Court for the Southern District of California, for violation of lens design and other

patents owned by LARGAN Precision.

In August 2013, Straight Path IP Group Inc. filed patent protection actions against, and is

seeking damages from Blackberry Ltd, Huawei, Samsung, and ZTE. It seeks damages on the

sale of the electronics manufacturers' alleged infringing products including handsets, tablet

computers, smart TVs, Blu-ray players, and set-top boxes.

In March 2013, Samsung countersued Ericsson claiming that the mobile equipment maker

infringed several of its patents including those relating to data transmission, a filing in a U.S.

district court showed. The filing comes after Ericsson filed a suit against Samsung

Electronics Co Ltd in November in a U.S. court alleging the South Korean company

infringed its mobile-technology patents after the two companies failed to agree on licensing

terms.

OPPORTUNITIES

Rising Demand for Smartphones

Rising demand for smartphones could improve Samsung’s earning capability and market

share. Smartphones have the highest near-term purchase intent amongst any portable

connected devices. According to in-house research, global mobile subscriptions are expected

to reach 8.99 billion at a CAGR of 6% from 2013 to 2018. The key drivers include greater

product innovation, expanding 4G networks, decreasing prices and increasing competition

among smartphone manufacturers. Samsung offers a wide range of smartphones and

developing products using latest technologies such as LTE. The company’s Galaxy S4

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recorded global sales of 10 million and launched S4 LTE-A, the LTE-A smartphone. The

company expects its smartphone shipments to increase by more than 10% in 2014.

New Product Launches

The company strives to manufacture innovative products to meet customers’ changing

requirements. Launch of innovative products at regular intervals helps Samsung retain and

attract customers and increase its market presence. In June 2014, Samsung introduced the

Samsung 845DC EVO Solid State Drives, adding a new SSD line designed for use in data

centers to its award-winning memory portfolio. During the same month, the company

introduced the Samsung Z, the smartphone powered by the Tizen platform. Furthermore,

Samsung announced plans to release Tizen-based Samsung TV SDK, the first Software

Development Kit that allows developers to build applications for the Tizen-based TV.

In April 2014, Samsung launched the Samsung Galaxy K zoom, new camera specialized

smartphone. During the same month, Samsung announced the Samsung Level, a new series

of premium audio products. The Level series is comprised of four types of expertly crafted

audio products for any type of mobile user: Level Over, Level On, Level In, and Level Box.

The company also launched the new Galaxy S5 and the Samsung Gear devices – Samsung

Gear 2, Samsung Gear 2Neo, and Samsung Gear Fit.

In 2013, Samsung launched Business Core Printing Solutions for small and medium sized

businesses to increase workplace efficiency through easy-to-use, serverless printing and

unveiled the GALAXY Note 10.1, 2014 Edition. It also launched Samsung GALAXY S4

Zoom and the compact GALAXY S4 Mini and Samsung GALAXY S4, the next generation

smartphone.

Growing Demand for LTE Technology

Demand for providing mobile broadband services using LTE (Long Term Evolution)

technologies is expected to increase, which may present growth opportunities for the

company. According to in-house research, as of year-end 2012, LTE network subscriptions

reached 65.6 million worldwide. Looking further ahead, as networks and devices proliferate,

facilitated by multi-standard radio technology, LTE subscriptions are expected to approach

1.6 billion by 2018, or 17.3% of global mobile subscriptions.

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In January 2014, Samsung and KT announced plans to launch commercial eMBMS (evolved

Multimedia Broadcast and Multicast Service) to KT’s LTE subscribers using the Samsung

Galaxy Note 3. eMBMS is a new LTE technology that enables multiple users to

simultaneously and efficiently enjoy HD quality video service for an enhanced multimedia

consumption experience. In November 2013, Telefónica Chile (Movistar) uses Samsung’s

advanced and differentiated LTE network solutions to offer LTE services throughout Chile.

In September 2013, OJSC Mobile TeleSystems and Samsung completed the first stage of

MTS LTE network in Russia’s Pskov region and the beginning of the testing of 4G network

services.

THREATS

Intense Competition

Samsung operates in a highly competitive technology market offering consumer electronics,

memory products, mobile handsets, and displays and lights, among others. These markets are

characterized by short product life cycles, continual performance enhancements, and rapid

adoption of technological and product advancements by competitors in the retail market, and

price sensitivity in the original equipment manufacturer market. It mainly competes with

Dell, Hewlett-Packard, LG Electronics and Acer in notebooks market; Sony, Toshiba, and

Philips in consumer electronics market; LG Electronics, Panasonic, Sharp Corp., and Sony in

digital appliances market; Nokia, Motorola, Apple, Sony Ericsson, Lenovo, and HTC in

mobile market. The level of competition in low cost smartphone market is expected to be

high, as manufacturers are undertaking many pricing initiatives. For instance, Intex and Spice

together formed a partnership with Mozilla to launch world’s cheapest smart phone. In India,

Celkon launched first Android 4.4 KitKat smartphone, Campus A35K, for INR2,999,

whereas it’s another competitor Karbonn, introduced an entry-level dual SIM Android-based

mobile device for INR2,790. If the company fails to take such initiatives, its business

operations may be affected.

Falling Demand for PCs & TVs

Decline in demand for TVs may affect the company’s business operations. The TV

Shipments are expected to fall due to the emergence of mobile devices and tablets. Although

Samsung maintains number one position in total TV market, including FPTV and LCDTV,

the decline in shipments may affect its overall business growth.21

BCG MATRIX

QUESTION MARKS

Samsung recently took the wraps off two new smartphones, the Galaxy Note 5 and

the Galaxy S6 Edge Plus. The company also teased its long-awaited smartwatch, the

Samsung Gear S2 running Tizen, during the launch of these new smartphones.

The UN55JS8500 is a 2015 model and features the latest and greatest from Samsung.

This is technically one of their SUHD televisions, which will give you 64X greater

color expression then a regular HD TV, as well as a more dynamic picture.

STARS

Samsung's flagship mobile handset line is the Samsung Galaxy S, which many

consider a direct competitor of the Apple iPhone. Samsung became the world's largest

cellphone maker in 2012, with the sales of 95 million smart phones in the first quarter

CASH COWS

Samsung Electronics has been the world's largest memory chip maker since 1993. In

2009, it started mass-producing 30 nm-class NAND flash memories. It succeeded in

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QUESTION MARKSSmart TV'sNew SmartphonesWearablesSTARSSmartphonesTabletsDOGSPC'sCamcordersCamerasCASHCOWSTV'sHome AppliancesSemi- conductors

2010 in mass-producing 30 nm-class DRAMs and 20 nm-class NAND flashes, both

of which were the first time in the world

Samsung sold more than one million 3D televisions within six months of its launch.

This is the figure close to what many market researchers forecast for the year's

worldwide 3D television sales (1.23 million units).

Analysts estimate Samsung Electronics earned around 13 trillion won ($12 billion)

last year from home appliances, part of the firm’s consumer electronics arm.

DOGS

Samsung left the laptop market in Europe last year

While predicting the future of digital technology is a mug's game, it's safe to say that

for the immediate future, consumers are clearly leaning towards HDD and flash

memory as their preferred formats. Responding to this demand, camcorder

manufacturers are steadily reducing the number of tape and DVD-based models.

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COMPETITORS

PANASONIC CORPORATION

Panasonic has been one of the world's most prolific electronics manufacturers since 1919. It

operates worldwide through about 600 companies under brands Panasonic, Quasar, Technics,

and others. The company spans multiple fields: Its consumer business consists of AVC

(audio, video, and communications) equipment, along with hardware and software for linking

it together, and home appliances (washing machines, vacuum cleaners, personal grooming

aids, and commercial HVAC). In the field of devices, Panasonic covers multimedia and eco-

car equipment, industrial electronic components, and batteries. The company's

solutions equipment targets environmentally conscience businesses, manufacturers, and

health care firms.

SONY CORPORATION

Sony is synonymous with consumer electronics. It's especially big in TVs and game consoles

like the new PlayStation4. Officially named Sony Kabushiki Kaisha, the company designs,

makes, and sells a host of electronic equipment, instruments, and devices for consumer,

professional, and industrial markets. Professional products include semiconductors and

components. A top global media conglomerate, Sony boasts additional assets in the areas of

music (Sony Music Entertainment), film (Sony Pictures Entertainment and Sony Digital

Production), smartphones (Sony Mobile), DVDs (Sony Pictures Home Entertainment), and

TV (Sony Pictures Television). Sony also has several financial services businesses and an

advertising agency in Japan.

LG ELECTRONICS INC.

LG Electronics (LGE) makes the products that have tech-savvy consumers chomping at the

bit in the kitchen, in the media room, and on the go. A leader in consumer electronics, mobile

communications, and home appliances, LGE operates through more than 100 subsidiaries

worldwide that design and make flat panel TVs, audio and video products, mobile handsets,

air conditioners, washing machines, refrigerators, and more. Asia and North America are its

two largest markets, each contributing about a quarter of LGE's sales. LGE owns Zenith

Electronics (acquired in 1995) and LG Display. Founded in 1958 as Goldstar, LGE

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established a North American headquarters in 2004. South Korea's LG Corp. owns about one-

third of LGE.

APPLE INC.

Apple Inc. (commonly known as Apple) is an American multinational technology company

headquartered in Cupertino, California, that designs, develops, and sells consumer

electronics, computer software, and online services. Its best-known hardware products are the

Mac personal computers, the iPod portable media player, the iPhone smartphone, the iPad

tablet computer, and the Apple Watch smartwatch. Apple's consumer software includes the

OS X and iOS operating systems, the iTunes media player, the Safari web browser, and the

iLife and iWork creativity and productivity suites. Its online services include the iTunes

Store, the iOS App Store and Mac App Store, and iCloud.

HTC CORPORATION

HTC Corporation is a Taiwanese multinational manufacturer of smartphones and tablets

headquartered in New Taipei City, Taiwan. Founded in 1997, HTC began as an original

design manufacturer and original equipment manufacturer, designing and manufacturing

devices such as mobile phones, touchscreen phones, and PDAs based on Windows Mobile

OS and Brew MP to market to mobile network operators who were willing to pay a contract

manufacturer for customized products. After initially making smartphones based mostly on

Windows Mobile, HTC expanded its focus in 2009 to devices based on Android, and in 2010

to Windows Phone. As of 2011, HTC primarily releases and markets its smartphones under

the HTC brand, ranking as the 98th top brand on Interbrand's Best Global Brands 2011

report. A September 2013 media report stated that HTC's share of the global smartphone

market is less than 3 percent. However a report published in April 2015 states that the market

share has risen to 7.2 percent due to its strong sales of the HTC One M8 and Desire series.

The stock price has fallen by 90 percent since 2011.

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MARKETING MIX OF SAMSUNG ELECTRONICS Co.

Ltd.

PRODUCT

The benefit of Samsung in terms of its products is that there is trust on all Samsung products

because of the way Samsung products have performed in the last few years. Problems with

the products have been negligible. And with its smartphones, Samsung has achieved a status

symbol for its customers. At the same time, Samsung is known for its service and people

know that Samsung gives a very fast service for any of its product.

PRICE

Skimming price- Samsung’s smartphones are one of the best in the market and are the

market leader in terms of the features and USP’s that they provide. The recent Samsung

galaxy note 5 is another entrant in the market which is catching people’s eyes. Thus Samsung

uses skimming price for these products wherein it tries to get a high value in the start before

competition catch up.

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Competitive pricing- for products other than smartphones, Samsung uses competitive

pricing, televisions, air conditioners, refrigerators and other products have competition in the

form of Panasonic or lg. Samsung is known to be a great brand but it is not greater than LG

for home appliances. In fact LG beats Samsung where home appliances are concerned.

PLACE

Samsung is present through various channels in the market. It works on the channel

marketing concept wherein there are three segments: Sales and service dealers, modern retail

and distributors. The sales and service dealers handle key accounts for Samsung and are

involved in corporate sales. These dealers may also open exclusive Samsung showrooms.

The distribution network is the most interesting in the case of Samsung. In several cities,

Samsung has a single distributor through whom they distribute throughout a territory.

PROMOTIONSamsung uses multiple forms of promotions. Samsung as a company 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. Thus on one hand, Samsung uses

various marketing vehicles across the year covering festive season as well as non-festive

time. On the other hand, it gives many offers and discounts to trade partners to motivate them

to sell Samsung above competition.

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SALES TURNOVER

Samsung announces Q1 2015 revenue of $44 billion, operating profit of $5.63 billion

After releasing its earnings guidance earlier this month, Samsung has just posed its official

Q1 2015 earnings. The company reports an operating profit of $5.63 billion off of revenues

of $44 billion. These numbers represent a drop in operating profits year-over-year, down

from $7.8 billion in Q1 2014.

Specifically taking just mobile sales into account, Samsung reports an operating profit of $2.5

billion on revenues of $24.1 billion. Samsung claims that smartphone sales have increased

thanks a heightened interest in the mid-range Galaxy A series. Revenues, however, fell

because of lowered tablet and feature phone sales.

As for its future plans, Samsung says that it hopes to streamline its low-end and mid-range

lineup, while continuing to also focus on the Galaxy S6 and Galaxy S6 Edge.

Strategy Analytics claims that with its Q1 performance, Samsung has overtaken Apple as the

#1 smartphone manufacturer at 24 percent of the market. Apple captured 16 percent of the

market.

Samsung’s full earnings press release can

be read below and the Strategy Analytics

release below that:

Samsung Electronics Announces First

Quarter Results

Registers net profit of KRW 4.63 trillion on

sales of KRW 47.12 trillion 1Q consolidated

operating profit reaches KRW 5.98 trillion

Samsung Electronics announced financial

results for the first quarter ended March 31,

2015. Samsung’s revenue for the quarter was

KRW 47.12 trillion, an 11 percent decrease

quarter-on-quarter (QOQ), while the operating profit for the quarter was KRW 5.98 trillion,

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an increase of KRW 690 billion QOQ. In the company’s earnings guidance disclosed on

April 7, 2015, Samsung estimated first quarter consolidated revenues would reach

approximately KRW 47.0 trillion with consolidated operating profit of approximately KRW

5.9 trillion.

The first quarter saw growth across the Device Solutions (DS) and IT & Mobile

Communications (IM) Divisions. The Memory Business further accelerated its 20-nanometer

class migration for DRAM, while DDR4/LPDDR4 sales increased for mobile devices and

servers. The Display Panel segment saw profit growth, as OLED panels for smartphones and

LCD panels for premium TVs saw increased sales. The Mobile Business also saw profit

growth, due to increased sales of new middle- to low-end smartphones, all the while

decreasing marketing expenditures.

In the second quarter, the company expects its overall earnings to increase compared to the

previous quarter, despite an expected growth in marketing expenditures. With premium

smartphone sales entering into full swing, the DS Division is expected to see demand in

growth for its semiconductor products. The System LSI Business is expected to improve its

overall business performance through increased supply of 14-nanometer application

processors. The Display Panel segment expects smartphone and TV sales to boost its earnings

from OLED and LCD panel sales. The IM Division earnings are expected to grow, due to

increased global sales of the Galaxy S6 and S6 edge. Meanwhile, the Consumer Electronics

(CE) Division expects to see improvements, as seasonality should improve air conditioner

sales, while the flagship SUHD TV sales are expected to increase.

Looking ahead to the rest of 2015, despite strong seasonality, competition is expected to

toughen for the set business and there is also a risk of weaker demand due to the weak Euro

and emerging market currencies. For the component business, while we expect stable supply

and demand conditions, weak demand for set products and increase in LCD panel supply may

negatively affect earnings. While the information technology (IT) industry has typically had a

weak 1H and a strong 2H each year, this may be less so for 2015.

Capital expenditure (CAPEX) for 1Q 2015 totaled KRW 7.2 trillion, including KRW 4.4

trillion for the Semiconductor Business and KRW 500 billion for the Display Panel segment.

While we expect the total CAPEX to remain at a similar level to that of 2014, there is a

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strong possibility that it may increase. CAPEX will be adjusted depending on

macroeconomic conditions and each business’ market conditions.

Increased Sales, Decreased Expenses Improve Profitability for IM Division

The IM Division posted KRW 25.89 trillion in consolidated revenue and KRW 2.74 trillion

in operating profit for the quarter.

Smartphone sales increased QOQ. However, tablet and feature phone sales decreased, along

with a decreased ASP, resulting in a slight decrease in revenue. Meanwhile, earnings

improved due to more efficient management of marketing expenditures, expanded sales of

middle-end smartphones including the Galaxy A Series, and a strengthened premium lineup

following the introduction of the Galaxy S6 and S6 edge.

In the second quarter, market demand for smartphones and tablets is expected to remain at a

similar level QOQ. Global sales are expected to improve with the global launch of the Galaxy

S6 and S6 edge. In particular, the Galaxy S6 and S6 edge have been receiving positive

feedback from the market. However, total smartphone shipments are expected to remain at

the same level as the previous quarter, due to a possible decrease in sales of middle- to low-

end models, while marketing expenses are expected to increase due to the global launch of

the Galaxy S6 and S6 edge.

In 2015, continued growth is expected due to the growth of emerging smartphone markets,

such as China and India, as well as the global expansion of the LTE business. However,

increased competition in the middle- to low-end market and a possible decrease in demand

due to the impact of foreign exchange rates in specific regions may present challenges.

The IM Division will drive smartphone sales growth in 2015 by strengthening its leadership

in premium smartphones and actively responding to the growing middle- to low-end market

with a streamlined lineup. Further, the overall cost efficiency across all business areas,

including R&D and marketing, will be increased to improve profitability.

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AWARDS AND ACHIEVEMENTS

Samsung’s award-winners represent the breadth of Samsung’s product portfolio, including

TV, home theater system, mobile phone, tablet, home appliance, software and computer

component categories.

Samsung’s JS9500 TV which received more than eight awards including Ubergizmo’s

Best of CES award, Digital Trends’ Best Television at CES 2015 award and

Reviewed.com’s 2015 CES Editors’ Choice award.

Samsung’s 105-inch UN105S9B TV, the World’s First and Largest Bendable SUHD

TV earned a CES award for Best of Innovation: Video Displays.

Samsung’s Active Wash Washing Machine received three awards including Digital

Trends’ Top Tech of CES 2015 Awards, Mashable’s Best of CES 2015 award and

Reviewed.com’s CES Editors’ Choice Award.

The Samsung Flex Duo Dual Door Range amassed three awards including 2015

International CES Best of Innovation Honoree, Reviewed.com’s CES Editors’ Choice

Award and Techlicious’ Top Pick of CES.

Samsung’s revolutionary portable SSD T1 earned eight awards including PC Mag’s

Best of CES Best Storage Device award, Reviewed.com’s CES Editors’ Choice

Award and Techlicious’ Top Picks of CES list.

Samsung’s ATIV Book 9 received four awards, including Digital Trend’s Top Tech

of CES 2015 Finalist, Pocket-Lint’s Best Laptops of CES 2015, Tech Times’ CES

Best of Innovation award and Windows Central’s CES Top Pick award.

SmartThings earned Reviewed.com’s 2015 CES Editors’ Choice Award.

The Brand Trust Report, India Study 2015- Samsung is the top most trusted brands in

the country.

The Economic Times (Top Consumer Durables company) - Samsung India received

the award for 'Top Company' for Mobile handsets and tablets from Voice and Data

magazine.

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CONCLUSION

Samsung has positioned itself as one of the world’s most recognized leaders not only in cell

phones, but in TVs and appliances. The digital age is here and Samsung is taking every

opportunity to advance in this technology to be a competitive force.

Their unwavering commitment to being the world's best and pledge to be ―better than its

competitors has given them the No.1 global market share for more than a dozen of their

innovative products. Its marketing strategy proved successful by sponsoring the Olympic

Games and other sporting events, as well as partnering with electronics giant, Best Buy.

For over 70 years, Samsung has been dedicated to making a better world through diverse

businesses that today span advanced technology, semiconductors, skyscraper and plant

construction, petrochemicals, fashion, medicine, finance, hotels, and more. Our flagship

company, Samsung Electronics, leads the global market in high-tech electronics

manufacturing and digital media.

Through innovative, reliable products and services; talented people; a responsible approach to

business and global citizenship; and collaboration with our partners and customers, Samsung

is taking the world in imaginative new directions.

Samsung has created a revolutionary mode of entertainment that consumers will be able to

experience in their own homes—3D television. Samsung Electronics has proven that its name

synonymous with quality and progress.

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QUESTIONNAIRE

1. Do you use a Samsung product?

Yes

No

2. Which product of Samsung do you use?

Mobile

Tablet

TV

Home appliance

PC/Laptop

Others

3. Are you satisfied with the product quality?

Yes

No

4. Are you satisfied with the product service?

Yes

No

5. What do you think is the differentiating factor of Samsung compared to its competitors?

Affordable Price

Innovative design

Technology

Applications

Others

6. Do you believe Samsung could become the market leader in majority of their product

categories?

Yes

No

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7. Why do you like the Samsung Brand?

Advertisement

Appearance

Price

Functions

Quality

Brand Image

Service

Other

8. Do you feel purchasing a Samsung product to be worth?

Yes

No

9. What describes Samsung according to you?

Innovative brand leader in fashion

King of touch technology

Aspirational and luxurious brand

10. Which part of the product attracts you?

Fashionable appearance

User friendly

Product quality

Product integration

After sales service

Cost-performance ratio high

Brand reputation

11. Why do you pay for the product premium price?

Product feature

Design innovation

Corporate reputation

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Premium quality

After sales service

12. Where do you often see the Samsung advertisements?

TV

Newspaper

Magazine

Online

Outdoor

Radio

Others

13. Will you purchase a Samsung product in future?

Yes

No

14. Are you satisfied with the after sales service provided by company?

Yes

No

15. Would you recommend a Samsung product to your friend/relative?

Yes

No

Maybe

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CASE STUDY

START OF A NEW ECOSYSTEM

MOBILY CASE STUDY

“Following the successful launch of a 4G mobile broadband service, we are very pleased

to keep working closely with Samsung to deliver enhanced mobile services to the

Kingdom’s people”-Nasser Al Nasser, CTO, Mobily

Saudi Arabia is by far the largest telecoms market in the GCC, accounting for two thirds of

the region’s mobile subscribers and more than half its internet users. The Saudi Arabian

market has been growing at an annual rate of nearly 10% for the past few years, and almost

three quarters of its revenue is attributable to mobile services. A large factor in this growth

has been the rise of high-speed mobile broadband services in the country, where monthly

downloads regularly average 18GB per subscriber.

Mobily’s challenge

Mobily, the brand name of Etihad Etisalat, took its first step in becoming Saudi Arabia’s

monopoly-breaking mobile operator when it won a tender against five other competing

consortiums in the summer of 2004. Mobily launched commercial services in May 2005, and

in less than 90 days, the company announced it had passed the one million subscriber base

mark. By the end of Q12006, the GSM World Association described Mobily as the fastest

growing mobile operator in the MENA region, marking the start of Mobily’s rapid growth

ever since.

Mobily pioneered with 3G services in 2006 and began to offer HSDPA mobile broadband in

2007. In 2008, as a complementary initiative, Mobily acquired Bayanat Al-Oula, a Data

Service Provider with its own spectrum holdings.

By 2011, subscriber uptake had greatly increased, together with a rapid rise in data transfer

rates. Mobily saw the market shifting and recognised the need for specific action. Faced with

the need to decide on an appropriate evolution path, Mobily had to address three major

criteria:

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Efficient spectrum allocation: Only limited unpaired spectrum was available in the

allocated band; Mobily needed a solution to utilize this efficiently

Industry commitment & evolution path: The chosen solution had to have global

availability and strong R&D backing, plus capacity for future roadmap development

Rich user device portfolio : Mobily needed to know that its network would have

innovative devices available to it well into the future

Solution overview

To address all three criteria, Mobily turned to Samsung in February 2011 to deploy its TD-

LTE network solutions. Mobily had been accustomed to procuring and operating

Samsung’s telecom equipment since 2009; this streamlined many processes. Moreover,

migration was further simplified by using the same cell sites and recycling common hardware

elements. Upon deployment only seven months after choosing Samsung, Mobily was able to

considerably boost its previous network’s throughput.

Samsung proposal incorporated the following:

Efficient spectrum allocation by utilizing the unpaired spectrum with a TD-LTE

implementation

Industry commitment & evolution path, with TD-LTE expected to be used in 25% of the

world’s LTE deployments. Samsung offered a future-proof solution with strong potential

and prospects

Rich user device portfolio with extensive TD-LTE CPE and dongle availability. Mobily’s

network could afford to grow as the ecosystem of smartphones and tablets developed

Through cost-saving efficiencies, forward-looking design and a strong user terminal range,

Samsung addressed Mobily subscribers’ requirements and reinforced Mobily’s reputation for

reliable innovation.

Efficient spectrum allocation

Making efficient use of the available spectrum was a critical constraint for Mobily. Paired

spectrum (required for FDD-LTE) was unavailable to Saudi operators, so attention turned to

Mobily’s unpaired spectrum for quick and seamless migration to a more versatile solution.

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Besides its usefulness for green field rollouts in unpaired bands, TD-LTE is well-suited for

operators with restricted spectrum resources. No spectrum pairing is needed for air

transmission, as is the case with FDD-LTE.

The choice of TD-LTE for Mobily was also based on the nature of Mobily’s data traffic.

With a growing majority of Mobily’s users downloading much more than they would upload,

a need for significant downlink capability had developed. For relatively short transmission

distances, TD-LTE can accommodate such usage asymmetries on its links through flexible

capacity allocation; the time slot allocated to each direction is simply adapted as needed.

Again, this fit well with Mobily’s focus on upgrading its network in key Saudi cities.

There were also certain cost savings to be realized with TD-LTE for Mobily. Additional

expenditures were capped through hardware reuse (same digital units) and power sharing.

Samsung’s network solutions presented Mobily with a unique means of transitioning to TD-

LTE at its own pace, with minimal disruption. From a pilot of 6 initial cities in the Central

and Western regions in September 2011, Samsung progressed its deployment and by July

2012 had upgraded Mobily’s network in over 30 cities.

Samsung recommended the most appropriate solution for Mobily’s low-latency, capacity-

driven applications. The resulting TD-LTE deployments saw significant throughput increase.

As a result, in Saudi Arabia’s increasingly competitive and demanding market, Mobily’s

differentiation as a reliable innovator was reinforced.

Industry commitment and evolution path

In recommending TD-LTE at the time, Samsung was mindful of key future drivers of the

technology and its sustainability.

One driver was vendor commitment: Both chipset and infrastructure vendors were strongly

backing TD-LTE through continuous investment.

A second driver was operator demand: Clear wire (USA), Vivid wireless (Australia), Asia

space (Malaysia) were promising future deployments. More significantly, there was strong

Chinese and Indian operator commitment to TD-LTE.

The third driver was economies of scale: With no operational differences in system

architecture above the physical layer, there was much to leverage in terms of TDD/FDD 38

convergence, evolution of the 3G ecosystem and migration from other TDD technologies. In

actual fact, the Global TD-LTE Initiative (GTI) had just been founded (February 2011)to

drive these objectives.

In short, Samsung’s industry-backed TD-LTE network solution and its efficient execution

allowed Mobily to differentiate and grow in its highly competitive marketplace.

Rich user device portfolio

When Mobily first engaged Samsung for network migration, there were no commercially

available multimode TDD/FDD terminals (owing to chipset limitations), but Mobily was still

able to select a device portfolio that met its market demands. Mobily’s CPE subscriber base

in 2011 outnumbered its USB Dongle base by over 9:1, which matched the widespread TD-

LTECPE availability at the time.

Furthermore, although FDD-LTE devices outnumbered TD-LTE ones at the time, the

common architecture now makes this less important. In 2012, single-chipset devices with

combined FDD/TDD support have been released, and it is expected that at least three major

vendors will release TD-LTE smartphones by Q1 2013.

In addition, recent developments on TD-LTE global roaming are indicative of a near future of

ubiquitous data coverage in both TDD and FDD bands.

It is testament to Samsung’s forward-looking design, end-to-end optimization and close

operator collaboration that its original TD-LTE deployments have since been expanded and

Mobily’s customers can now select from an ever-growing ecosystem of end-user devices,

including the aforementioned forthcoming TD-LTE smartphones.

Evolution with smart LTE networks

In February 2012, Mobily requested an evolution of its network, according to planned

roadmaps. Further base stations were commissioned for Samsung to deploy, together with all

associated systems and network support services. Additionally, Samsung was engaged to

establish managed services, ensuring high quality of service at all times.

In line with Mobily’s initial projections of TD-LTE user uptake and the TD-LTE evolution

path, Samsung would further develop the Mobily network solution for more precise control

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of quality and scaling. In less than five years, the Saudi Arabian ICT sector had become one

of the most data-intensive in the region, and Mobily was focused on preparing itself for the

future.

In response, Samsung proposed to launch its Smart LTE Networks, which follow cloud

computing principles to enable centralized network management. Through the Samsung

Smart Scheduler, connected via Ethernet to up to 500 cells, Mobily would be able to manage

radio resources in real time.

Smart LTE Networks allow all connected base stations to work together. The Smart

Scheduler receives coordinated radio channel information and sends back the most optimal

resource allocation pattern for superior quality of service. Dropped call rates are lower

because of reduced cell edge interference and smoother inter-cell handover, and throughput is

boosted via capacity increases.

There are also direct operator benefits to Mobily. Total cost of ownership is lowered thanks

to controlled maintenance, reduced cell site establishment and site rental expenses.

“Samsung has been a great managed services partner for Mobily.” - Mohammed E.

Alzaaidi, Director, Access Infrastructure, Mobily

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