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INTRODUCTION

Samsung Electronics Co., Ltd.is a South Korean multinationalelectronicscompanyheadquartered in Suwon, South Korea. It is the flagship subsidiaryof the Samsung Group and

has been the world's largest information technology companyby revenues since 2!. Samsung"lectronics has assembly plants and sales networ#s in $$ countries and employs around %&,people. or a 2(2 the )"* is Kwon *h+yun.

Samsung has previously been #nown for its position as a manufacturer of components such aslithium+ion batteries, semiconductors, chips,flash memoryand hard drivedevices for clientssuch as -pple,Sony, )and/o#ia. In recent years, Samsung "lectronics has e0panded uponits manufacturing roots and diversified into consumer mar#ets leading to an ever increasingportfolio of products and revenue stream.

Samsung "lectronics currently stands as one of the world's largest vendors in the mobile phone

and smartphonemar#ets fueled by the popularity of its Samsung Gala0y line of devices. hecompany is also one of the largest vendors in the tablet computermar#et than#s to its -ndroid+powered Samsung Gala0y abcollection and is generally regarded as pioneering thephabletmar#et through the Samsung Gala0y /ote family of devices.

Samsung has been the world's largest ma#er of 1) panelssince 22, the world's largesttelevision manufacturersince 23, and world's largest manufacturer of mobile phones since2((. Samsung "lectronics displaced -pple Inc. as the world's largest technology company in2(( and has been a ma4or part of the "conomy of South Korea.

In 2((, Samsung was ran#ed as India's fifth most trusted brand and in 2(2, Samsung was

ran#ed as India's fourth most trusted brand by he 5rand rust 6eport, an annual reportpublished by rust 6esearch -dvisory. In 2(%,he 5rand rust 6eport, ran#ed Samsung asIndia's second most trusted brand.

OPERATIONS

he company focuses on four areas7 digital media,semiconductor,telecommunication networ#,and 1) digital appliances.

he digital+media business area coverscomputer devicessuch as laptop computers and laserprinters8 digital displayssuch as televisions and computer monitors8 and consumer entertainmentdevicessuch as 9 players, :;% playersand digital camcorders8 andhome appliancessuch asrefrigerators, air conditioners,air purifiers,washers,microwave ovens, and vacuum cleaners.

http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Suwonhttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Samsunghttp://en.wikipedia.org/wiki/List_of_the_largest_information_technology_companieshttp://en.wikipedia.org/wiki/Assembly_linehttp://en.wikipedia.org/w/index.php?title=Kwon_Oh-Hyun&action=edit&redlink=1http://en.wikipedia.org/wiki/Lithium-ion_batterieshttp://en.wikipedia.org/wiki/Semiconductorshttp://en.wikipedia.org/wiki/Integrated_circuithttp://en.wikipedia.org/wiki/Flash_memoryhttp://en.wikipedia.org/wiki/Hard_disk_drivehttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/HTChttp://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Smartphonehttp://en.wikipedia.org/wiki/Samsung_Galaxyhttp://en.wikipedia.org/wiki/Tablet_computerhttp://en.wikipedia.org/wiki/Android_(operating_system)http://en.wikipedia.org/wiki/Samsung_Galaxy_Tabhttp://en.wikipedia.org/wiki/Phablethttp://en.wikipedia.org/wiki/Samsung_Galaxy_Note_serieshttp://en.wikipedia.org/wiki/LCD_panelhttp://en.wikipedia.org/wiki/Television#Sales_of_televisionshttp://en.wikipedia.org/wiki/Television#Sales_of_televisionshttp://en.wikipedia.org/wiki/Economy_of_South_Koreahttp://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/wiki/Semiconductorhttp://en.wikipedia.org/wiki/Computer_hardwarehttp://en.wikipedia.org/wiki/Laser_printerhttp://en.wikipedia.org/wiki/Laser_printerhttp://en.wikipedia.org/wiki/Digital_displayhttp://en.wikipedia.org/wiki/Consumer_entertainment_devicehttp://en.wikipedia.org/wiki/Consumer_entertainment_devicehttp://en.wikipedia.org/wiki/DVD_playerhttp://en.wikipedia.org/wiki/Portable_media_playerhttp://en.wikipedia.org/wiki/Digital_camcorderhttp://en.wikipedia.org/wiki/Home_appliancehttp://en.wikipedia.org/wiki/Air_conditionerhttp://en.wikipedia.org/wiki/Air_purifierhttp://en.wikipedia.org/wiki/Washing_machinehttp://en.wikipedia.org/wiki/Microwave_ovenhttp://en.wikipedia.org/wiki/Vacuum_cleanerhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Suwonhttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Samsunghttp://en.wikipedia.org/wiki/List_of_the_largest_information_technology_companieshttp://en.wikipedia.org/wiki/Assembly_linehttp://en.wikipedia.org/w/index.php?title=Kwon_Oh-Hyun&action=edit&redlink=1http://en.wikipedia.org/wiki/Lithium-ion_batterieshttp://en.wikipedia.org/wiki/Semiconductorshttp://en.wikipedia.org/wiki/Integrated_circuithttp://en.wikipedia.org/wiki/Flash_memoryhttp://en.wikipedia.org/wiki/Hard_disk_drivehttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/HTChttp://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Smartphonehttp://en.wikipedia.org/wiki/Samsung_Galaxyhttp://en.wikipedia.org/wiki/Tablet_computerhttp://en.wikipedia.org/wiki/Android_(operating_system)http://en.wikipedia.org/wiki/Samsung_Galaxy_Tabhttp://en.wikipedia.org/wiki/Phablethttp://en.wikipedia.org/wiki/Samsung_Galaxy_Note_serieshttp://en.wikipedia.org/wiki/LCD_panelhttp://en.wikipedia.org/wiki/Television#Sales_of_televisionshttp://en.wikipedia.org/wiki/Television#Sales_of_televisionshttp://en.wikipedia.org/wiki/Economy_of_South_Koreahttp://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/wiki/Semiconductorhttp://en.wikipedia.org/wiki/Computer_hardwarehttp://en.wikipedia.org/wiki/Laser_printerhttp://en.wikipedia.org/wiki/Laser_printerhttp://en.wikipedia.org/wiki/Digital_displayhttp://en.wikipedia.org/wiki/Consumer_entertainment_devicehttp://en.wikipedia.org/wiki/Consumer_entertainment_devicehttp://en.wikipedia.org/wiki/DVD_playerhttp://en.wikipedia.org/wiki/Portable_media_playerhttp://en.wikipedia.org/wiki/Digital_camcorderhttp://en.wikipedia.org/wiki/Home_appliancehttp://en.wikipedia.org/wiki/Air_conditionerhttp://en.wikipedia.org/wiki/Air_purifierhttp://en.wikipedia.org/wiki/Washing_machinehttp://en.wikipedia.org/wiki/Microwave_ovenhttp://en.wikipedia.org/wiki/Vacuum_cleaner

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he semiconductor+business area includes semiconductor chips such asS6-:,S6-:,/-/flash memory8 smart cards8 mobile application processors8 mobile 9receivers8 6transceivers8 ):*SImage sensors, Smart )ardI), :;% I), 98 and satellite receivers.

he 1) business area focuses on producing +1) andorganic light+emitting diode=*1"> panels for laptops, des#top monitors, and televisions.

Samsung ;rint was established in 2! as a separate entity to focus on 525sales and hasreleased a broad range ofmultifunctional devicesand printers and more.

VISION STATEENT

Samsung "lectronics' vision for the new decade is to ?Inspire the @orld, )reate the uture.?

hey are committed to inspiring communities around the world by developing new technologies,innovative products and creative solutions. hey are also committed to creating a brighter futureby developing new value for our core networ#s7 industry, partners and employees. hroughthese efforts, they hope to contribute to a better world and a richer e0perience for all.

-s part of their new vision, they have mapped out a specific plan of reaching AB billion inrevenue and becoming one of the worldCs top five brands by 22. o this end, they have alsoestablished three strategic approaches in our management7 creativity, partnership and talent.

http://en.wikipedia.org/wiki/SDRAMhttp://en.wikipedia.org/wiki/Static_random_access_memoryhttp://en.wikipedia.org/wiki/NAND_flashhttp://en.wikipedia.org/wiki/Flash_memoryhttp://en.wikipedia.org/wiki/Smart_cardhttp://en.wikipedia.org/wiki/Mobile_application_developmenthttp://en.wikipedia.org/wiki/Mobile_TVhttp://en.wikipedia.org/wiki/CMOShttp://en.wikipedia.org/wiki/Smart_Cardhttp://en.wikipedia.org/wiki/Integrated_circuithttp://en.wikipedia.org/wiki/Data_storage_devicehttp://en.wikipedia.org/wiki/Optical_disc_drivehttp://en.wikipedia.org/wiki/Hard_disk_drivehttp://en.wikipedia.org/wiki/DSLAMhttp://en.wikipedia.org/wiki/Faxhttp://en.wikipedia.org/wiki/Cellular_devicehttp://en.wikipedia.org/w/index.php?title=Mobile_intelligent_terminal&action=edit&redlink=1http://en.wikipedia.org/wiki/Receiver_(radio)http://en.wikipedia.org/wiki/Thin_film_transistor_liquid_crystal_displayhttp://en.wikipedia.org/wiki/Organic_light-emitting_diodehttp://en.wikipedia.org/wiki/Business-to-businesshttp://en.wikipedia.org/wiki/Multifunctional_devicehttp://en.wikipedia.org/wiki/SDRAMhttp://en.wikipedia.org/wiki/Static_random_access_memoryhttp://en.wikipedia.org/wiki/NAND_flashhttp://en.wikipedia.org/wiki/Flash_memoryhttp://en.wikipedia.org/wiki/Smart_cardhttp://en.wikipedia.org/wiki/Mobile_application_developmenthttp://en.wikipedia.org/wiki/Mobile_TVhttp://en.wikipedia.org/wiki/CMOShttp://en.wikipedia.org/wiki/Smart_Cardhttp://en.wikipedia.org/wiki/Integrated_circuithttp://en.wikipedia.org/wiki/Data_storage_devicehttp://en.wikipedia.org/wiki/Optical_disc_drivehttp://en.wikipedia.org/wiki/Hard_disk_drivehttp://en.wikipedia.org/wiki/DSLAMhttp://en.wikipedia.org/wiki/Faxhttp://en.wikipedia.org/wiki/Cellular_devicehttp://en.wikipedia.org/w/index.php?title=Mobile_intelligent_terminal&action=edit&redlink=1http://en.wikipedia.org/wiki/Receiver_(radio)http://en.wikipedia.org/wiki/Thin_film_transistor_liquid_crystal_displayhttp://en.wikipedia.org/wiki/Organic_light-emitting_diodehttp://en.wikipedia.org/wiki/Business-to-businesshttp://en.wikipedia.org/wiki/Multifunctional_device

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hey are e0cited about the future. -s they build on our previous accomplishments, they loo#forward to e0ploring new territories, including health, medicine and biotechnology. hey arecommitted to being a creative leader in new mar#ets and becoming a truly /o. ( business goingforward.

T!E SASUN" P!ILOSOP!#

-t Samsung, they follow a simple business philosophy7 to devote their talent and technology tocreating superior products and services that contribute to a better global society.

"very day, their people bring this philosophy to life. heir leaders search for the brightest talentfrom around the world and give them the resources they need to be the best at what they do. heresult is that all of our productsDfrom memory chips that help businesses store vital #nowledgeto mobile phones that connect people across continentsD have the power to enrich lives. -ndthatCs what ma#ing a better global society is all about.

Values

hey believe that living by strong values is the #ey to good business. hatCs why these corevalues, along with a rigorous code of conduct, are at the heart of every decision they ma#e.

People

Euite simply, a company is its people. -t Samsung, they are dedicated to giving its people awealth of opportunities to reach their full potential.

Excellence

"verything they do at Samsung is driven by an unyielding passion for e0cellenceDand anunfaltering commitment to develop the best products and services on the mar#et.

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Change

In todayCs fast+paced global economy, change is constant and innovation is critical to acompanyCs survival. -s they have done for & years, they set their sights on the future,anticipating mar#et needs and demands so they can steer the company toward long+term success.

Integrity

*perating in an ethical way is the foundation of our business. "verything they do is guided by amoral compass that ensures fairness, respect for all sta#eholders and complete transparency.

Co-prosperity

- business cannot be successful unless it creates prosperity and opportunity for others. Samsungis dedicated to being a socially and environmentally responsible corporate citiFen in everycommunity where we operate around the globe.

ANA"EENT AND $OARD O% DIRECTORS

)hief e0ecutive officer, 9ice chairman7 C&oi "ee'Sung

)hief financial officer7 ;resident #oon (u'&)a

)hief operating officer, ;resident7 Lee (ae'#ong

he following are the names of board of directors members7

"ee'Sung C&oi 9ice chairman, ;resident and chief e0ecutive officer

(u'!)a #oon )hief financial officer

Dong'in #oon Independent director =-ttorney at 1aw, Kim )hang>

C&ae'*oong

Lee

Independent director =;rofessor of "conomics, Sung#yun#wan Hniversity>

In'!o Lee Independent director =-dvisor,Shinhan 5an#>

O&'Soo Par+ Independent director =;rofessor of 5usiness -dministration, Seoul /ational

Hniversity>

http://en.wikipedia.org/wiki/Sungkyunkwan_Universityhttp://en.wikipedia.org/wiki/Shinhan_Bankhttp://en.wikipedia.org/wiki/Seoul_National_Universityhttp://en.wikipedia.org/wiki/Seoul_National_Universityhttp://en.wikipedia.org/wiki/Sungkyunkwan_Universityhttp://en.wikipedia.org/wiki/Shinhan_Bankhttp://en.wikipedia.org/wiki/Seoul_National_Universityhttp://en.wikipedia.org/wiki/Seoul_National_University

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!ISTOR#

-- TO -/0 ' EARL# #EARS

Samsung "lectric Industries was established as a subsidiary of Samsung Groupin (!3! inSuwon, South Korea. Its early products were electronic and electrical appliances includingtelevisions, calculators, refrigerators, air conditioners and washing machines. In (!&, SamsungGroup established another subsidiary, Samsung+/"), 4ointly with apan's/") )orporationtomanufacture home appliances andaudiovisual devices. In (!&B, the group e0panded into thesemiconductorbusiness by acquiring Korea Semiconductor, one of the first chip+ma#ingfacilities in the country at the time. he acquisition of Korea elecommunications, an electronicswitching system producer, was completed at the start of the ne0t decade in (!$.

5y (!$(, Samsung "lectric Industries had manufactured over ( millionblac#+and+whitetelevisions.In ebruary (!$%, Samsung's founder, 1ee 5yung+chull,made an announcementlater dubbed the ?o#yo declaration,? in which he declared that Samsung intended to become a6-:=dynamic random access memory> vendor. *ne year later, Samsung became the thirdcompany in the world to develop a 3B#b6-:. In (!$$, Samsung "lectric Industries mergedwith Samsung Semiconductor )ommunications to form Samsung "lectronics.

-//'--1 ' CONSUER STRU""LES

Samsung "lectronics launched its first mobile phone in (!$$, in the South Korean mar#et. Saleswere initially poor and by the early (!!s :otorola held a mar#et share of over 3 percent in thecountry's mobile phone mar#et compared to 4ust ( percent for Samsung. Samsung's mobilephone division also struggled with poor quality and inferior products until the mid+(!!s and

e0it from the sector was a frequent topic of discussion within the company.

Samsung "lectronics acquired a B percent sta#e in -S 6esearch, a Hnited States+basedpersonal computer ma#er, for HSA%&$ million in ebruary (!!J.

--1'233/ ' COPONENT ANU%ACTURIN"

It was decided that by 1ee un Kee that Samsung needed to change strategy. he companyshelved the production of many under+selling product lines and instead pursued a process ofdesigning and manufacturing components and investing in new technologies for othercompanies. It was hoped in this way Samsung would gain an understanding of how products are

made and give a technological lead sometime in the future. his patient vertical integrationstrategy of manufacturing components has born fruit for Samsung in the late+2s.

-s Samsung shifted away from consumer mar#ets, the company devised a plan to sponsor ma4orsporting events to remain in the public eye. *ne such sponsorship was for the (!!$ @inter*lympicsheld in/agano, apan.

http://en.wikipedia.org/wiki/Samsung_Grouphttp://en.wikipedia.org/wiki/Suwonhttp://en.wikipedia.org/wiki/NEChttp://en.wikipedia.org/wiki/Home_applianceshttp://en.wikipedia.org/wiki/Professional_audiovisual_industryhttp://en.wikipedia.org/wiki/Semiconductorhttp://en.wikipedia.org/wiki/Black_and_white_televisionhttp://en.wikipedia.org/wiki/Black_and_white_televisionhttp://en.wikipedia.org/wiki/Lee_Byung-chullhttp://en.wikipedia.org/wiki/DRAMhttp://en.wikipedia.org/wiki/Kilobithttp://en.wikipedia.org/wiki/Vertical_integrationhttp://en.wikipedia.org/wiki/1998_Winter_Olympicshttp://en.wikipedia.org/wiki/1998_Winter_Olympicshttp://en.wikipedia.org/wiki/Naganohttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Samsung_Grouphttp://en.wikipedia.org/wiki/Suwonhttp://en.wikipedia.org/wiki/NEChttp://en.wikipedia.org/wiki/Home_applianceshttp://en.wikipedia.org/wiki/Professional_audiovisual_industryhttp://en.wikipedia.org/wiki/Semiconductorhttp://en.wikipedia.org/wiki/Black_and_white_televisionhttp://en.wikipedia.org/wiki/Black_and_white_televisionhttp://en.wikipedia.org/wiki/Lee_Byung-chullhttp://en.wikipedia.org/wiki/DRAMhttp://en.wikipedia.org/wiki/Kilobithttp://en.wikipedia.org/wiki/Vertical_integrationhttp://en.wikipedia.org/wiki/1998_Winter_Olympicshttp://en.wikipedia.org/wiki/1998_Winter_Olympicshttp://en.wikipedia.org/wiki/Naganohttp://en.wikipedia.org/wiki/Japan

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-s a chaebol, Samsung Group wielded wealth that allowed the company to invest and developnew technology rather than build products at a level which would not have a detrimental impacton Samsung's finances.

Samsung had a number of technological brea#throughs particularly in the field of memory

which are commonplace in most electrical products today. his includes the world's first 3B:b6-: in (!!2, 2J3 6-: in (!!B, (Gb 6-: in (!!3. In 2B, Samsung developed theworld's first $Gb/-/ :emorychip and a manufacturing deal was struc# with -pple in 2J.- deal to supply -pple for memory chips was struc# in 2J and Samsung remains a #eysupplier of -pple components. owever the Samsung+-pple relationship has soured followingSamsung's emergence in the consumer mar#et.

233/ TO PRESENT ' CONSUER PRODUCTS

or four consecutive years, from 2 to 2%, Samsung postednet earningshigher than five+percent8 this was at a time when (3 out of the % top South Korean companies ceased operating

in the wa#e of the unprecedented crisis.

In 2J, Samsung "lectronics surpassed apanese rival, Sony, for the first time to become theworld's twentieth+largest and most popular consumer brand, as measured by Interbrand.

In 2&, Samsung "lectronics became the world's second+largest mobile+phonema#er,overta#ing :otorola for the first time. In 2!, Samsung achieved total revenues of HSA((&.Bbillion, overta#ing ewlett+;ac#ard to become the world's largest technology companymeasured by sales.

In 2! and 2(, the HS and "H fined the company, together with eight other memory chip

ma#ers, for its part in a price+fi0ing scheme that occurred between (!!! and 22. *thercompanies fined included Infineon echnologies,"lpida :emory and:icron echnology. Inecember 2(, the "H granted immunityto Samsung "lectronics for acting as aninformantduring the investigation =1G isplay, -H *ptronics, )himei Inno1u0, )hunghwa ;icture ubesand annStar isplay were implicated as result of the company's intelligence>.

espite consistent growth, Samsung, along with its chairman 1ee Kun+hee, has developed areputation for insecurity regarding its financial stability and the potential for future crises toarise. -fter returning from a temporary retirement period in :arch 2(, Kun+hee stated that?Samsung "lectronics' future is not guaranteed because most of our flagship products will beobsolete in ( years from now.?

Samsung has emphasiFed innovation in its management strategy since the early 2s and itagain highlighted innovation as part of core strategies when it announced the 9ision 22 inwhich the company set an ambitious goal of reaching AB billion in annual revenues within tenyears. In order to cement its leadership in the areas of memory chip and television production,the company has invested aggressively in research and development. he company has 2Bresearch+and+development centers around the world.

http://en.wikipedia.org/w/index.php?title=NAND_Memory&action=edit&redlink=1http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/Interbrandhttp://en.wikipedia.org/wiki/Mobile_phone#Markethttp://en.wikipedia.org/wiki/Infineon_Technologieshttp://en.wikipedia.org/wiki/Elpida_Memoryhttp://en.wikipedia.org/wiki/Micron_Technologyhttp://en.wikipedia.org/wiki/Immunity_from_prosecutionhttp://en.wikipedia.org/wiki/Informanthttp://en.wikipedia.org/w/index.php?title=NAND_Memory&action=edit&redlink=1http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/Interbrandhttp://en.wikipedia.org/wiki/Mobile_phone#Markethttp://en.wikipedia.org/wiki/Infineon_Technologieshttp://en.wikipedia.org/wiki/Elpida_Memoryhttp://en.wikipedia.org/wiki/Micron_Technologyhttp://en.wikipedia.org/wiki/Immunity_from_prosecutionhttp://en.wikipedia.org/wiki/Informant

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In -pril 2((, Samsung "lectronics sold itscommercial operations toSeagate echnologyfor appro0imately HSA(.B billion. he payment was composed of BJ.2 million Seagate shares=!.3 percent of shares>, worth HSA3$&.J million, and a cash sum for the remainder.

In the first quarter of 2(2, the company became the highest+selling mobile phone company

when it overtoo# /o#ia, selling !%.J million units compared to /o#ia's $2.& million units.Samsung also became the largest smartphone vendor as a result of strong sales of its Gala0y SIIand Gala0y /ote devices.

In :ay 2(%, Samsung announced that it had finally managed to test speed+enhanced fifthgeneration=1"> technology successfully.

In -pril 2(%, Samsung "lectronics' new Gala0y S smartphone the Gala0y SB was madeavailable for retail. 6eleased as the upgrade of the best+selling Gala0y S III, the SB was sold insome international mar#ets with the companyCs "0ynos processor.

In uly 2(%, Samsung "lectronics forecasted wea#er than e0pected profits for its -pril to unequarter. @hile analysts e0pected around (.( trillion won, Samsung "lectronics estimated anoperating profit of !.J trillion won =A$.% billion>. uring the same month, Samsung acquired themedia streaming device manufacturer 5o0ee for a reported A% million.

*n -ugust J, 2(%, invitations were received for the ?Samsung Hnpac#ed 2(% "pisode 2?event on September B, 2(% in 5erlin, Germany during the annual I- conference. @hile theinvitation does not present any details of the event, industry figures stated that the launch of theGala0y /ote III device is e0pected, as Samsung used the 2(2 I- conference to launch theGala0y /ote II.

http://en.wikipedia.org/wiki/Hard_disk_drivehttp://en.wikipedia.org/wiki/Seagate_Technologyhttp://en.wikipedia.org/wiki/Hard_disk_drivehttp://en.wikipedia.org/wiki/Seagate_Technology

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SASUN" AR4ETIN" I5

PRODUCT STRATE"#

LCD AND LED PANELS

5y 2B Samsung was the world's+largest manufacturer of *1"s, with a B percent mar#etshare worldwide, and as of 2( has a !$ share of the global -:*1"mar#et. he companygenerated A(.2 million out of the total AB&J million revenues in the global *1" mar#et in23. -s of 23, it held more than 3 -merican patents and more than 2,$ internationalpatents, ma#ing it the largest owner of -:*1"technology patents.L

Samsung's current -:*1"smartphones use its Super -:*1"trademar#, with theSamsung @ave S$Jand Samsung i! Gala0y Sbeing launched in une 2(. In anuary

2((, it announced its Super -:*1" ;lus displays which offer several advances over theolder Super -:*1" displays M real stripe matri0 =J percent more sub pi0els>, thinner formfactor, brighter image and an ($ percent reduction in energy consumption.

In *ctober 2&, Samsung introducing a ten+millimeter thic#, B+inch 1) television panel,followed in *ctober 2$ by the world's first &.!+mm panel. Samsung developed panels for 2B+inch 1) monitors =%.J mm> and (2.(+inch laptops =(.3B mm>. In 2!, Samsung succeeded indeveloping a panel for forty+inch 1" televisions, with a thic#ness of %.! millimeters=.(J inch>. ubbed the ?/eedle Slim?, the panel is as thic# =or thin> as two coins put together.his is about a twelfth of the conventional 1) panel whose thic#ness is appro0imately Jmillimeters =(.!& inches>.

@hile reducing the thic#ness substantially, the company could maintain the performance asbefore, including full resolution, (2 F refresh rate, and J7( contrast ratio.

O$ILE P!ONES

Samsung's flagship mobile handset line is the Samsung Gala0y S, which many consider a directcompetitor of the -pple i;hone. It was initially launched in Singapore, :alaysia and SouthKorea in une 2(, followed by the Hnited States in uly. It sold more than one million unitswithin the first BJ days on sale in the Hnited States.

he company's I! Gala0y S and S$J @ave smartphones were the winners of the 2("uropean "IS- -wards in the smartphone and social media phone categories. he I! Gala0yS was recogniFed for its superior+quality screen and e0cellent connectivity while the S$J@ave for its 5ada operating system with unparalleled social networ#ing and location+basedservices.

http://en.wikipedia.org/wiki/AMOLEDhttp://en.wikipedia.org/wiki/AMOLEDhttp://en.wikipedia.org/wiki/Samsung_Electronics#cite_note-findarticles.com-48http://en.wikipedia.org/wiki/AMOLEDhttp://en.wikipedia.org/wiki/Super_AMOLEDhttp://en.wikipedia.org/wiki/Samsung_Wave_S8500http://en.wikipedia.org/wiki/Samsung_i9000_Galaxy_Shttp://en.wikipedia.org/wiki/Super_AMOLEDhttp://en.wikipedia.org/wiki/Samsung_Galaxy_Shttp://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/Location-based_servicehttp://en.wikipedia.org/wiki/Location-based_servicehttp://en.wikipedia.org/wiki/AMOLEDhttp://en.wikipedia.org/wiki/AMOLEDhttp://en.wikipedia.org/wiki/Samsung_Electronics#cite_note-findarticles.com-48http://en.wikipedia.org/wiki/AMOLEDhttp://en.wikipedia.org/wiki/Super_AMOLEDhttp://en.wikipedia.org/wiki/Samsung_Wave_S8500http://en.wikipedia.org/wiki/Samsung_i9000_Galaxy_Shttp://en.wikipedia.org/wiki/Super_AMOLEDhttp://en.wikipedia.org/wiki/Samsung_Galaxy_Shttp://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/Location-based_servicehttp://en.wikipedia.org/wiki/Location-based_service

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Samsung sold more than one million % televisions within si0 months of its launch. his is thefigure close to what many mar#et researchers forecast for the year's worldwide % televisionsales =(.2% million units>. It also debuted the % ome heater =+)3!J@> that allows theuser to en4oy % image and surround sound at the same time. @ith the launch of % omeheater, Samsung became the first company in the industry to have the full line of % offerings,

including % television, % 5lu+ray player, % content, and % glasses.

In 2&, Samsung introduced the Internet 9, enabling the viewer to receive information fromthe Internet while at the same time watching conventional television programming. Samsunglater developed ?Smart 1" 9? =now renamed to ?Samsung Smart 9?>, which additionallysupports downloaded apps.In 2$, the company launched the ;ower Infolin# service, followedin 2! by a whole new InternetN9. In 2(, it started mar#eting the % television whileunveiling the upgraded InternetN9 2(, which offers free =or for+fee> download ofapplications from its Samsung -pps store, in addition to e0isting services such as news, weather,stoc# mar#et, Oouube videos, and movies.

Samsung -pps offers for+fee premium services in a few countries including Korea and theHnited States. he services will be custom+tailored for each region. Samsung plans to offerfamily+oriented applications such as health care programs and digital picture frames as well asgames. Samsung's range of Smart 9s include the apps I9 ;layerand motion controlled -ngry5irds.

OT!ER PRODUCTS

Samsung produces printers for both consumers and business use, including mono+laser printers,color laser printers, multifunction printers, and enterprise+use high+speed digital multifunctionprinter models.

In 2(, the company introduced a number of energy efficient products, including the laptop6J$, netboo# /2(, the world's+smallest mono+laser printer :1+(33, and color lasermultifunction printer )1P+%($J.

Samsung has introduced several models of digital camerasand camcordersincluding the @5JJcamera, the SJJ dual+1)+mounted camera, and the :P+(3 =3BG5 SS+mounted full camcorder>. In 2!, the company too# the third place in the compact camera segment.Since then, the company has focused more on higher+priced items. In 2(, the companylaunched the /P(, the ne0t+generation interchangeable lens camera.

In the area of storage media, in 2! Samsung achieved a ten percent world mar#et share, drivenby the introduction of a new hard dis# drivecapable of storing 2JGb per 2.J+inch dis#. In 2(,the company started mar#eting the %2Gb+per+dis# , the largest in the industry. In addition,it was focusing more on selling e0ternal hard dis# drives. ollowing financial losses, the harddis# division was sold to Seagate in 2((.

http://en.wikipedia.org/wiki/Internet_TVhttp://en.wikipedia.org/wiki/Smart_TVhttp://en.wikipedia.org/wiki/Application_softwarehttp://en.wikipedia.org/wiki/ITV_Playerhttp://en.wikipedia.org/wiki/Angry_Birdshttp://en.wikipedia.org/wiki/Angry_Birdshttp://en.wikipedia.org/wiki/Multifunction_printerhttp://en.wikipedia.org/wiki/Digital_camerahttp://en.wikipedia.org/wiki/Camcorderhttp://en.wikipedia.org/wiki/Storage_mediahttp://en.wikipedia.org/wiki/Hard_disk_drivehttp://en.wikipedia.org/wiki/Internet_TVhttp://en.wikipedia.org/wiki/Smart_TVhttp://en.wikipedia.org/wiki/Application_softwarehttp://en.wikipedia.org/wiki/ITV_Playerhttp://en.wikipedia.org/wiki/Angry_Birdshttp://en.wikipedia.org/wiki/Angry_Birdshttp://en.wikipedia.org/wiki/Multifunction_printerhttp://en.wikipedia.org/wiki/Digital_camerahttp://en.wikipedia.org/wiki/Camcorderhttp://en.wikipedia.org/wiki/Storage_mediahttp://en.wikipedia.org/wiki/Hard_disk_drive

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In the :;% player segment, Samsung has launched products including the :( :;% player, andthe world's+smallest ivP:;% player 6(.

AR4ET S!ARE O% T!E PRODUCTS IN INDIA

)olour elevision forms % share of the sales volume.

6efrigerators -ir )onditioners together form % share of sales volume.

http://en.wikipedia.org/wiki/DivXhttp://en.wikipedia.org/wiki/DivX

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1 P&a*er:- 3,99! 5,!!! 3,99!-4,99!

"Samsung #s S)n*,LG,1e).)n an Panas)n.0

$u):-

"Samsung #s S)n*,LG,1e).)n,Ph&%s an Panas)n.0 1( S*stem - 9,9!!- 28,99! ,5!!-28,99!

1 S*stem - 8,2!!- 25,99! 3,99!-29,99!

H)me 'heater: - 2,99!- 8,!!! 5,99!-9,99!

In

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(Samsung #s Genera& ,an, L6G6 an 1)&tas0

Insta (h&& >n)A - 4,99!- 23,99! 5,49!-2!,99!

Insta (h&& S%&t - 24,;9!- 4,99! 28,;5!-42,5!!

PLACE AND DISTIRU$TION STRATE"#

CUSTOER AR4ETIN" C!ANNELS

)hannel ( 7 :anufacturer )onsumer

)hannel 2 7 :anufacturer 6etailer )onsumer

)hannel % 7 :anufacturer @holesaler6etailer)onsumer

)hannel B 7 :anufacturer @holesalerobber 6etailer)onsumer

C!ANNEL DESI"N DECISIONS

-nalysing )onsumer Service /eeds .

Setting the channel ob4ectives and constraints.

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Identifying ma4or alternatives.

"valuating the ma4or alternatives.

esigning distribution channel.

PLACE DECISIONS

here are three types of decisions that can be ta#en with regards to the place where the products

will be available 7+

-vailable everywhere

Selective

"0clusive

DISTRI$UTION S#STE

Q *ne level channel

Q wo level channel

Q Shop+in+shop

Q "0clusive Showrooms

Q Sales and Service networ# all+over the world.

DISTRI$UTION NET*OR4

Original Equipment Manufacturer/Vendor or Supplier

Factory

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Regional Distribution Centre ranc! "are!ouse

Distributor Direct Modern

Dealer Retail /

Sub#Dealer E$clusi%e

Stores and

Consumer Samsung Digital

&la'a

PROOTION STRATE"#

6 PRINT EDIA ADVERTISIN"

Samsung has e0tensively been using ;rint :edia -dvertising as means of its ;romotional

Strategy.

Samsung has used /ewspapers , :agaFines and 5illboards e0tensively to advertise its

products, both new as well as e0isting products bt way of offers,sales,etc.

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26 TELEVISION ADVERTISIN"

Samsung has e0tensively been using elevision -dvertising as means of its ;romotionalStrategy.

Smart, sensible and innovative advertising has been helping it gain mass acceptance and

consumers all over the world.

-lso, the approach of advertising as per the different cultures of different countries has helped

it immensely.

76 INTERNET ADVERTISIN"

Internet as a medium has been very important for Samsung for advertising its consumer

durables.

hrough its pages on -)"5**K,@I"6,*6KH,etc it has been able to guide the

consumers about the various products and its uses. -lso, the S-:SH/G website has been

useful in education the consumers in a similar manner about its products.

-lso, Samsung products are e0tensively sold on websites li#e -maFon,lip#art,"bay,etc.

which helps the consumers in obtaining the products directly at home rather than goin to the

Samsung Store.

86 OT!ER T#PES O% ADVERTISIN"

*fficial Sponsor7

(> 9ancouver 2( ;aralympics @inter Games.

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2> Samsung )up.

%> )helsea ootball )lub.

B> Sydney 6oosters.

J> /-S)-6 /e0tel )up.

3> rench ;eopleCs 5aseball eam.

&> e0as :otor Speedway.

5rand -mbassadors in India7

(> -amir Khan +R Samsung :obile. 2> ;riyan#a )hopra +R Samsung )onsumer urables

%> -bhinav 5indra +R Samsung )onsumer "lectronics

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16SALES PROOTION IN INDIA

Samsung has various iwali, usshera, oli, Ganesha and 6epublic ay *ffers available to

)onsumers.

6POINT O% SALE

;oint of ;urchase ;romotion ie ;romotional offers at the Samsung Showrooms itself.

Hse of electronic billboards,danglers,etc

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06 RURAL PROOTION 9IN INDIA6

Samsung has not only tried catering to the Hrban population, but also the 6ural masses.

Challenges:

"lectricity Shortage.

-cute @ater Shortage.

;oor ransportation availability.

)onsumer inance *ptions.

1iteracy rate.

)ulture and traditions.

6ural reach.

oo many languages and dialects.

Rural Promotional Strategies:

aat or wee#ly mar#ets

:elas =2J, melas8 &.3la#hs visits annually>

@all paintings

)ustomer contacts =home+to+home>

9an campaigns

"vent management.

S"O) *+*,-S.S

STREN"T!S

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(> (Service =)ustomer Satisfaction !&>.

2> ;remium brand image positioning.

%> igh+end echnology.

B> )ultural identity.

J> Innovative and fashionable design.

3> 9arious #ind of products.

&> Solid domestic mar#et.

*EA4NESSES

(> igh ;rice.

2> Insufficient distribution channel.

%> he core technologiesC high dependency on foreign country = igh

6oyalty>

B> @ea# cost competitive power.

J> 1ac# of patent possession.

OPPURTUNITIES

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(> 1G down fall during the year.

2> "0plosive increasing demand.

%> Indian mass mar#et.

B> 6egional mar#et activation due to the decentraliFation .

J> @orld cup< -sian game .

3> HtiliFation of local 6 centers

T!REATS

(> Godre4 comes with full product line.

2> Investing in core technologies.

%> Strong requirement for transforming of technologies.

B> "merging native companies.

RELATIONS!IP *IT! APPLE INC.

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espite recent litigation activity, Samsung and -pple have been described as frenemieswhoshare a love+hate relationship. Samsung is a ma4or supplier for -pple + first providing memoryfor the early i;od devices in 2J, and -pple is a #ey customer for Samsung + in 2(2 itscomponent sales were thought to be worth in the region of A$ billion revenue to Samsung+ to thepoint where -pple )"* im )oo# originally opposed litigation against Samsungwary of the

company's critical component supply chain for -pple.

In -pril 2((, -pple Inc.announced that they were suing Samsung over the design of its Gala0yrange of mobile phones. he lawsuit was filed on (J -pril 2(( and alleges that Samsunginfringed on -pple's trademar#s and patents of the i;honeandi;ad. Samsung issued acounterclaimagainst -pple ofpatent infringement. In -ugust 2((, at he 6egional )ourt ofTsseldorf, -pple were granted apreliminary in4unctionagainst the sale and mar#eting of theSamsung Gala0y ab (.( across the whole of "urope e0cluding the /etherlands. he ban hasbeen temporarily lifted in the "uropean Hnion, with the e0clusion of Germany, whilst it isinvestigated whether or not the original in4unction was appropriate.

*n -ugust %(, 2(2, the o#yo istrict )ourt ruled Samsung "lectronics' mobile devices didnot violate an -pple Inc. patent. he case only addressed -pple's patent that allows mobiledevices and personal computers to synchroniFe or share data with each other and is notcomparable with the H.S. court case ruled on 2B -ugust. *n *ctober ($, 2(2, H.K. igh )ourtruled that Samsung did not infringe -pple's design patents. -pple was forced to issue a court+ordered apology to Samsung on its official H.K. website.

ENVIRONENTAL RECORD

http://en.wikipedia.org/wiki/Frenemyhttp://en.wikipedia.org/wiki/Apple_Inc._v._Samsung_Electronics_Co.,_Ltd.http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/IPadhttp://en.wikipedia.org/wiki/Counterclaimhttp://en.wikipedia.org/wiki/Patent_infringementhttp://en.wikipedia.org/wiki/Preliminary_injunctionhttp://en.wikipedia.org/wiki/Samsung_Galaxy_Tab_10.1http://en.wikipedia.org/wiki/Tokyo_District_Courthttp://en.wikipedia.org/wiki/High_Court_of_Justicehttp://en.wikipedia.org/wiki/Frenemyhttp://en.wikipedia.org/wiki/Apple_Inc._v._Samsung_Electronics_Co.,_Ltd.http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/IPadhttp://en.wikipedia.org/wiki/Counterclaimhttp://en.wikipedia.org/wiki/Patent_infringementhttp://en.wikipedia.org/wiki/Preliminary_injunctionhttp://en.wikipedia.org/wiki/Samsung_Galaxy_Tab_10.1http://en.wikipedia.org/wiki/Tokyo_District_Courthttp://en.wikipedia.org/wiki/High_Court_of_Justice

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-ll Samsung mobile phones and :;% players introduced on the mar#et after -pril 2( are freefrom polyvinyl chloride =;9)> and brominated flame retardants =56s>.

he company is listed in Greenpeace's Guide to Greener "lectronics, which rates electronicscompanies on policies and practices to reduce their impact on the climate, produce greener

products, and ma#e their operations more sustainable. In /ovember 2(( Samsung was ran#ed&th out of (J leading electronics ma#ers with a score of B.( but scoredma0imum points for providing verified data and its greenhouse gas emissions and also scoredwell for its Sustainable *perations with the guide praising its relatively good e+waste ta#e+bac#programme and information. owever, the company was criticiFed for not setting an ambitioustarget to increase its use of renewable energy and for belonging to a trade association which hascommented against energy efficiency standards.

In une 2B, Samsung was the first ma4or electronics company to publicly commit to eliminate;9) and 56s from new models of all its products. he company however failed to meet its

deadlines to be ;9)+ and 56s+free, and has published new phase out dates. Greenpeaceactivists protested at the company's5enelu0headquarters in :arch 2( for what Greenpeacecalls Samsung's bro#en promises.

he company has been ta#ing the lead in industry efforts to reduce greenhouse gas emissions,the company has been awarded as one of global top+ten companies in the )arbon isclosure1eadership Inde0 =)1I>. It was the only -sian company among top+ten companies. In addition,the company is listed in ow ones Sustainability Inde0 =SI>.

he company's achievement ratio of products approaching the Global "colabel level =?Good"co+;roducts? within the company> is (( percentage points above the 2( goal =$ percent>. -s

of the first half of 2(, Samsung earned the Global "colabel for its 2,(%B models, therebybecoming the world's number+one company in terms of the number of products meeting Global"colabel standards.

he company is also accelerating its effort to recover and recycle electronic wastes. he amountof wastes salvaged throughout 3 countries during 2! was as much as 2B, tons. he?Samsung 6ecycling irect? program, the company's voluntary recycling program under way inthe Hnited States, was e0panded to )anada.

In 2$, the company was praised for its recycling effort by the H.S. advocacy group "lectronicsa#e 5ac# )oalition as the ?best eco+friendly recycling program?.

CONTROVERSIES

http://en.wikipedia.org/wiki/Greenpeacehttp://en.wikipedia.org/wiki/Beneluxhttp://en.wikipedia.org/wiki/Dow_Jones_Sustainability_Indexhttp://en.wikipedia.org/wiki/Greenpeacehttp://en.wikipedia.org/wiki/Beneluxhttp://en.wikipedia.org/wiki/Dow_Jones_Sustainability_Index

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DRA PRICE %I5IN"

In ecember 2(, the "uropean )ommission fined si0 1) panel producers, includingSamsung, a total of U3B$.!2J million for operating as a cartel. he company received a fullreduction of the potential fine for being the first firm to assist "H anti+trust authorities.

*n *ctober (!, 2((, Samsung was fined "H6 (BJ,&2&, for being part of a price cartel often companies for 6-:swhich lasted from ( uly (!!$ to (J une 22. he companyreceived, li#e most of the other members of the cartel, a (+ reduction for ac#nowledging thefacts to investigators. Samsung had to pay ! of their share of the settlement, but :icronavoided payment as a result of having initially revealed the case to investigators.

PLA"IARI:IN" APPLE

-pple sued Samsung on -pril (J, 2(( in theHnited States istrict )ourt for the /orthernistrict of )aliforniathat several of Samsung's -ndroidphones and tablets, including the/e0us

S, "pic BG,Gala0y S BG, and the Samsung Gala0y ab, infringed on -ppleCs intellectualproperty7 its patents, trademar#s,user interfaceand style. -pple's complaint included specificfederal claims for patent infringement, false designation of origin,unfair competition, andtrademar# infringement, as well as state+level claims for unfair competition, common lawtrademar# infringement, and un4ust enrichment.

*n -ugust 2B, 2(2 the 4ury returned a verdict largely favorable to -pple. It found that Samsunghad willfully infringed on -pple's design and utility patents and had also diluted -pple's tradedresses related to the i;hone. he 4ury awarded -pple A(.B! billion in damages and SamsungFero damages in its counter suit. he 4ury found Samsung infringed -pple's patents on i;hone's?5ounce+5ac# "ffect? =HS ;atent /o.&,B3!,%$(>, ?*n+screen /avigation =HS ;atent

/o.&,$BB,!(J>, and ?ap o Voom? =HS ;atent /o.&,$3B,(3%>, and design patents that coversi;hone's features such as the ?home button, rounded corners and tapered edges? =HS J!%$&>and ?*n+Screen Icons? =HS 3B%J>.

SA%ET# ISSUES

espite their phones' popularity, several e0plosions of Samsung mobile phones has beenreported. - Swiss teenager was left with second and third degree burns in her thigh due to herGala0y S%'s e0plosionfollowed by two more Gala0y S% e0plosions in SwitFerland andIreland.- house in ong Kongwas set on fire by a Samsung Gala0y SB in uly 2(%, followed byanother minor burnt Gala0y SB in ;a#istan.

COPETITIVE ENVIRONENT

http://en.wikipedia.org/wiki/DRAMhttp://en.wikipedia.org/wiki/United_States_District_Court_for_the_Northern_District_of_Californiahttp://en.wikipedia.org/wiki/United_States_District_Court_for_the_Northern_District_of_Californiahttp://en.wikipedia.org/wiki/Android_(operating_system)http://en.wikipedia.org/wiki/Nexus_Shttp://en.wikipedia.org/wiki/Nexus_Shttp://en.wikipedia.org/wiki/Samsung_Galaxy_Shttp://en.wikipedia.org/wiki/Samsung_galaxy_s_4ghttp://en.wikipedia.org/wiki/Samsung_Galaxy_Tabhttp://en.wikipedia.org/wiki/Trademarkhttp://en.wikipedia.org/wiki/User_interfacehttp://en.wikipedia.org/wiki/Designhttp://en.wikipedia.org/wiki/False_designation_of_originhttp://en.wikipedia.org/wiki/Unfair_competitionhttp://en.wikipedia.org/wiki/Trademark_infringementhttp://en.wikipedia.org/wiki/Unjust_enrichmenthttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Irelandhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/DRAMhttp://en.wikipedia.org/wiki/United_States_District_Court_for_the_Northern_District_of_Californiahttp://en.wikipedia.org/wiki/United_States_District_Court_for_the_Northern_District_of_Californiahttp://en.wikipedia.org/wiki/Android_(operating_system)http://en.wikipedia.org/wiki/Nexus_Shttp://en.wikipedia.org/wiki/Nexus_Shttp://en.wikipedia.org/wiki/Samsung_Galaxy_Shttp://en.wikipedia.org/wiki/Samsung_galaxy_s_4ghttp://en.wikipedia.org/wiki/Samsung_Galaxy_Tabhttp://en.wikipedia.org/wiki/Trademarkhttp://en.wikipedia.org/wiki/User_interfacehttp://en.wikipedia.org/wiki/Designhttp://en.wikipedia.org/wiki/False_designation_of_originhttp://en.wikipedia.org/wiki/Unfair_competitionhttp://en.wikipedia.org/wiki/Trademark_infringementhttp://en.wikipedia.org/wiki/Unjust_enrichmenthttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Irelandhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Pakistan

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AR4ET S!ARE

*n an overall basis, the ma4or competition faced by Samsung is from Sony, ;hilips, /o#ia 1Gamongst its biggest competitors. owever, Samsung is a large group operating various divisionsand businesses including those for the cell phones, monitors, digital media devices and %

appliances. -lthough it has a pioneering competitive position with reference to consumer %televisions, it has had fierce competition with its rivals in all other categories. )onsider forinstance, the mar#et for 1) monitors where Samsung held (3.( if the total mar#et sharerivaled by ell with its immediate competitor with a mar#et share of (B.3 =2$ est.>Similarly, with 1G as its ma4or competitor for television sets in 1), ;; )6 category andmar#et share (%.&, Samsung has led the mar#et with a share of 2% =2! est.>.

owever, in 2J, Samsung earned acclaim when it had left Sony behind in terms of itspopularity 9%ortune 133, 233-6. 1ater ta#e+over of :otorola in 2& gave it a competitive edgein mobile phone ma#ing thereby also reducing the competitive pressure.

COPARIN" T!E AR4ETIN" I5

If we are to consider the mar#eting mi0 used by its rivals li#e Sony for instance, it would bequite evident that it too uses advertising, personal selling and massive public relationscampaigns to leverage its brand in order to secure profits. ust as Samsung associated with he*lympics, Sony associates itself with various sports series and other public events to gainma0imum consumer awareness. In the promotional arena, the approach is pretty much the samesince it too offers discounts and Wbuy+this+get+this+freeC with its products 4ust as Samsung, fore0ample, offered a % starter #it on purchase of % 9 or 5lue 6ay purchase. owever, thepricing for both the brands is at a higher end. @hile Sony does so by offering value throughstyle, quality, purpose and performance of the product, Samsung does the same through its

technologically advanced offerings high in quality and innovation.

It is important to note that while most of its rivals in the industry, such as /o#ia,-pple andSiemens promote their products mainly through advertising and direct selling, Samsung has hada long history of its association with sports which has created a positive brand image along withhigh customer recall.

INDUSTR# ANAL#SIS

STRUCTURE ; CURRENT PER%ORANCE

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"arlier on, the global electronics industry was mainly about the electricity based products thatcould perform the very basic functions. owever, now the utility of the product is 4ust notenough. @ith an increasing globaliFation and thus greater e0posure to technologically advancedpossibilities, there is greater demand for providing the same products as before with atechnology-intensive added value. his ma#es competition in the mar#et fiercer as a technologybecomes redundant as soon as more and more rivals imitate it and start offering it at a lowerprice. his pushes the companies in the electronics business to continuously innovate andupgrade their products with the latest technology. his would however mean higher costs. Oet, ifthe value addition is significant, it may 4ustify a premium price for the technologically advancedproduct and allow positive returns despite increase in cost.

%UTURE TRENDS

Generally and despite the economic down turn which too is e0pected to undergo a turn+ aroundsituation, the consumer electronics mar#et in the -sia ;acific region is the one li#ely to e0hibitlarge growth trends 9RNCOS E'Ser

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Samsung has held a leading position in the electronics mar#et worldwide. :ore than $, Jemployees =2J est.> are ta#en to be an asset for the company and are valued to be the mostimportant value. ae+Gyun Shin, the companyCs managing director e0plained SamsungCs 6development to be based on three factors. e said in an interview,Samsungs HR development is based on three key words: Value, eadership, and !lobal

competence"Value# means value sharing programs which bring together all Samsungemployees under one banner" eadership# re$ers to development programs that systematically

identi$y and develop ne%t-generation leaders" !lobal# means enhancing our employees global

competencies by developing their global business and $oreign language skills"#9Tae'"=un S&in,

23306 his very clearly points towards the companyCs commitment to ensuring the personaldevelopment of its employees that in turn ensures ma0imum productivity and wor# quality whilethey wor# with it. /ot 4ust this, Samsung is strong an organiFation from the point of view offinancial assets as well. In 23 for instance, it accumulated A &$,&(3.3 million worth ofrevenues while ma#ing a profit of A&,BJ$.$ million. -lthough this was nearly a 2( decrease inprofits comparative to 2B. he situation by 2! had improved greatly with the profits for EB2! recorded to be A%.% billion. 2( is e0pected to be the year of high profits where the

analysts are pro4ecting profits of A(3 trillion at year end driven mainly by increased revenuesfrom memory chips, handsets and flat screen televisions. his has been a result of its innovativeand technology intensive products and the current financial situation and the e0pected growth inthe -sia ;acific region is sure to enable it to invest more in 6.SamsungCs repute as a pioneer in introducing technology intensive products can be wellunderstood from the event of anuary 2( when it announced to become the first mass producerof panels for % 1" 1) 9s. It has successfully been able to reduce the response time ofthe 1" screens such that the % images are seem more natural. -ccording to a research carriedout by a related firm, the % display mar#et is e0pected to grow dramatically to A22 billion by2($ from A !2 million in 2$. @ith this, the e0pected sale of 3B million units by 2($comparative to 2, units in 2! essentially points to the revenues and profits, thiscompany would be ma#ing.

AR4ET S!ARE

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Product Samsung

world market

share

Leading

competitor

Market

share

Year

6-: B.B SK yni0 (!.$ E% 2(

/-/ flash B.B oshiba %%.( E2 2(

1arge+siFe 1)panels=revenue>

23. 1G isplay 2J.! E% 2(

-ctive+matri0 *1"s !& 1G isplay (X% 2(

1ithium+ion batteries ($.& Sanyo (!.B E( 2(

1) monitors ($. ell (2.$ 2!

ard+dis# drives ! @estern igital %(.% E( 2(

elevisions=1), ;;, )6,

1">

(&.2 1G "lectronics (B.$ E% 2!

:obile phones 2J /o#ia 2% E( 2(2

igital cameras ((.$ Sony (&.B 2(

-pplication processors (2 e0as Instruments (& E%,B 2((

A(OR CLIENTS

Rank/company Part description Buying

(trillionKRW)

Percent of

total sales

( Sony 6-:, /-/ flash, 1)panels, etc...

(.2$ %.&

% ell 6-:, flat+panels, lithium+ion batteries, etc...

.$& 2.J

B ewlett+;ac#ard 6-:, flat+panels, lithium+ion batteries, etc...

.&3 2.2

J 9eriFon)ommunications

andsets, etc... .J (.%

3 - Inc. andsets, etc... .J (.%

http://en.wikipedia.org/wiki/SK_Hynixhttp://en.wikipedia.org/wiki/Toshibahttp://en.wikipedia.org/wiki/LG_Displayhttp://en.wikipedia.org/wiki/LG_Displayhttp://en.wikipedia.org/wiki/Sanyohttp://en.wikipedia.org/wiki/Dellhttp://en.wikipedia.org/wiki/Western_Digitalhttp://en.wikipedia.org/wiki/LG_Electronicshttp://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/Texas_Instrumentshttp://en.wikipedia.org/wiki/South_Korean_wonhttp://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/Dellhttp://en.wikipedia.org/wiki/Hewlett-Packardhttp://en.wikipedia.org/wiki/Verizon_Communicationshttp://en.wikipedia.org/wiki/Verizon_Communicationshttp://en.wikipedia.org/wiki/AT%26T_Inc.http://en.wikipedia.org/wiki/SK_Hynixhttp://en.wikipedia.org/wiki/Toshibahttp://en.wikipedia.org/wiki/LG_Displayhttp://en.wikipedia.org/wiki/LG_Displayhttp://en.wikipedia.org/wiki/Sanyohttp://en.wikipedia.org/wiki/Dellhttp://en.wikipedia.org/wiki/Western_Digitalhttp://en.wikipedia.org/wiki/LG_Electronicshttp://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/Texas_Instrumentshttp://en.wikipedia.org/wiki/South_Korean_wonhttp://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/Dellhttp://en.wikipedia.org/wiki/Hewlett-Packardhttp://en.wikipedia.org/wiki/Verizon_Communicationshttp://en.wikipedia.org/wiki/Verizon_Communicationshttp://en.wikipedia.org/wiki/AT%26T_Inc.

8/11/2019 Samsung 11

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