SAMSUNG SAMSUNG

Prepared by: Xiaomeng LiPrepared by: Xiaomeng Li Jordan BinstockJordan Binstock Zuotao LiuZuotao Liu Amy ThompsonAmy Thompson

Company introductionCompany introduction

Founded in 1938Founded in 1938 Chairman Byung-Chull LeeChairman Byung-Chull Lee 30,000 won = $2530,000 won = $25

What does it do at What does it do at first?first?

Sell dried Korean fish, Sell dried Korean fish, vegetables &fruitvegetables &fruit

After a decadeAfter a decade

Flour mills & confectionary Flour mills & confectionary machine---Samsung Mallmachine---Samsung Mall

1969 Samsung Electronic1969 Samsung Electronic

Historical eventsHistorical events

1992 British color TV factory1992 British color TV factory

first time to go international!first time to go international! 1994 first subsidiary company in 1994 first subsidiary company in

JapanJapan 1995 headquarters in US, Europe 1995 headquarters in US, Europe

& China& China

Historical eventsHistorical events

2005 brand value $15 billion!2005 brand value $15 billion!

world’s 20world’s 20thth

11stst in electronic products in electronic products

By nowBy now

30 subsidiary companies30 subsidiary companies 300 overseas offices in 76 300 overseas offices in 76

countriescountries Samsung Corporation shoulders Samsung Corporation shoulders

21% of South Korean’s export21% of South Korean’s export

Tough timeTough time

Brand image:Brand image: Before 1993, low price & low Before 1993, low price & low

quality quality 1994 microwave ovens piled over1994 microwave ovens piled over

sale!sale!

SolutionSolution

Chairman Kun Hee LeeChairman Kun Hee Lee

1. determination: crunch and burn 1. determination: crunch and burn 15000 cell phones15000 cell phones

2. top-down strategy2. top-down strategy

3. Wal-Mart vs. Sears3. Wal-Mart vs. Sears

Go internationalGo international

Factories go to low cost countriesFactories go to low cost countries Research center go to EuropeResearch center go to Europe

ProductsProducts

Cell phonesCell phones TV video & AudioTV video & Audio Computer Computer Home applianceHome appliance

CompetitionCompetition

Variety of competing sectorsVariety of competing sectors Cell phone market is most competitiveCell phone market is most competitive 5 Main producers of cell phones5 Main producers of cell phones

– NokiaNokia– MotorolaMotorola– SamsungSamsung– Sony EricssonSony Ericsson– LGLG

NokiaNokia

Located in FinlandLocated in Finland #1 in Worldwide sales#1 in Worldwide sales 34.97% Market Share34.97% Market Share 348 million units in 2006348 million units in 2006 +2.27% Change from 2005+2.27% Change from 2005

MotorolaMotorola

US CorporationUS Corporation #2 in Worldwide sales#2 in Worldwide sales 21.85% market share21.85% market share 217.4 million units sold in 2006217.4 million units sold in 2006 +3.85% Change from 2005+3.85% Change from 2005

SamsungSamsung

South KoreanSouth Korean #3 in Worldwide sales#3 in Worldwide sales 11.86% market share11.86% market share 118 million units sold in 2006118 million units sold in 2006 -0.84% Change from 2005-0.84% Change from 2005

Sony EricssonSony Ericsson

Joint ventureJoint venture #4 in Worldwide sales#4 in Worldwide sales 7.49% market share7.49% market share 74.5 million units sold in 200674.5 million units sold in 2006 +1.19% Change from 2005+1.19% Change from 2005

LGLG

Korean basedKorean based #5 in Worldwide sales#5 in Worldwide sales 6.67% market share6.67% market share 66.4 million units sold in 200666.4 million units sold in 2006 -0.13% Change from 2005-0.13% Change from 2005

Market SharesMarket Shares

Competition Competition SuggestionsSuggestions Expand Research & DevelopmentExpand Research & Development Possible Mergers / Joint VenturesPossible Mergers / Joint Ventures Globalize Market ResearchGlobalize Market Research

Global MarketGlobal Market

IntroductionIntroduction

Operate in almost 100 countries.Operate in almost 100 countries. Has 229,000 employees around Has 229,000 employees around

the worldthe world Samsung means “three stars” .Samsung means “three stars” . Slogan: imagine the possibilities Slogan: imagine the possibilities

IntroductionIntroduction

Be an international corporation Be an international corporation since 1990.since 1990.

Samsung is still too weak to Samsung is still too weak to compete effectively.compete effectively.

Got support from the Korean Got support from the Korean government.government.

IntroductionIntroduction

Focuses on five business areas :Focuses on five business areas : Digital Media Digital Media Telecommunication Network Telecommunication Network Digital Appliance Digital Appliance Semiconductor Semiconductor LCD LCD

Chinese MarketChinese Market

China is the largest developing China is the largest developing country.country.

China is also the largest China is also the largest population in the world. population in the world.

50,000 employees in China, 50,000 employees in China, Korean employees are less than Korean employees are less than 1,000.1,000.

Chinese MarketChinese Market

Produced low-end TV at the Produced low-end TV at the beginning.beginning.

Had no market. Quit at last.Had no market. Quit at last. Produce superb quality product.Produce superb quality product. Began to advance the digital era. Began to advance the digital era.

Chinese MarketChinese Market

Market and brand centre in China.Market and brand centre in China. Achieve 40 billion US dollars in Achieve 40 billion US dollars in

2010.2010. Three advantagesThree advantages China is close to Korea.China is close to Korea. Has a good management system. Has a good management system. Get many supports from the Get many supports from the

corporation.corporation.

American MarketAmerican Market

Become the market leader in Become the market leader in 2006.2006.

Captured the number one market Captured the number one market share position for digital share position for digital televisions. televisions.

Samsung’s overall unit sales have Samsung’s overall unit sales have grown 54 percent in 2006. grown 54 percent in 2006.

American MarketAmerican Market

Four digital TV categories:Four digital TV categories: LCD LCD Plasma Plasma Micro-display Micro-display Flat Tube Flat Tube

American MarketAmerican Market

Samsung became America's Samsung became America's choice for digital TVs in 2006.choice for digital TVs in 2006.

Had a significant lead on the Had a significant lead on the competition.competition.

Samsung is able to bring price-Samsung is able to bring price-competitive televisions to market competitive televisions to market while maintaining their while maintaining their profitability. profitability.

Sum-upSum-up

Continue to expand worldwide Continue to expand worldwide manufacturing and sale operations.manufacturing and sale operations.

Ensure high customer satisfaction.Ensure high customer satisfaction. Lead the way in the digital era with Lead the way in the digital era with

its superb quality and top-notch its superb quality and top-notch management.management.

Continue to satisfy customers and Continue to satisfy customers and shareholders. shareholders.

Industry AnalysisIndustry Analysis

Three Types of IndustriesThree Types of Industries– Consumer ElectronicsConsumer Electronics– Household AppliancesHousehold Appliances– Telecommunication DevicesTelecommunication Devices

Consumer ElectronicsConsumer Electronics

Struggles:Struggles:– Broad range of productsBroad range of products– Rapidly evolving productsRapidly evolving products– Changes in demandChanges in demand

Household AppliancesHousehold Appliances

Consumer Differences Among Consumer Differences Among CulturesCultures– Under-developed CountriesUnder-developed Countries– Developing CountriesDeveloping Countries– Developed CountriesDeveloped Countries

Telecommunication Telecommunication DevicesDevices Three Types of ConsumersThree Types of Consumers

– First-time BuyersFirst-time Buyers– UpgradersUpgraders– Repeat BuyersRepeat Buyers

CONCLUSIONCONCLUSION

THE ENDTHE END

THANK YOU!THANK YOU!