DANIELLE DEWEY, PEBBLES GILBERT,

MICHAEL GREEN

Success in IndiaSAMSUNG (B)

INTRODUCTIONBackground and SWOT Analysis

On March 1, 1938, founding chairman Byung-Chull Lee started a business in Taegu, Korea, with 30,000 won.

At the start, his business focused primarily on trade export, selling dried Korean fish, vegetables, and fruit to Manchuria and Beijing. In little more than a decade, Samsung—which means "three stars" in Korean—would have its own flour mills and confectionery machines, its own manufacturing and sales operations,

and ultimately evolve to become the modern global corporation that still bears the same name today.

In the 1970s, Samsung laid the strategic foundations for its future growth by investing in the heavy, chemical, and petrochemical industries.

Samsung's core technology businesses diversified and expanded globally during the late 1970s and early 1980s.

The early 1990s presented tremendous challenges for high-tech businesses.

In the mid-1990s, Samsung revolutionized its business through a dedication to making world-class products, providing total customer satisfaction, and being a good corporate citizen – all under the vision of

'quality first.'

Despite the 1997 financial crisis that affected nearly all Korean businesses, Samsung was one of few companies that continued growing, thanks to its leadership in digital and network technologies and its

steady concentration on electronics, finances, and related services.

The digital age has brought revolutionary change – and opportunity – to global business, and Samsung has responded with advanced technologies, competitive products, and constant innovation.

SAMSUNG AS A COMPANY

StrengthsExcellent at providing outstanding leadership in products such as televisions, DVD players, microwave ovens, refrigerators, mobile

phones, and fax machines.Able to make outstanding profits because of the demand of the AC.

Due to traffic density and population growth the demand of the AC has increase.

The company has provided better customer service by bringing together call handling and feedback on product quality.

WeaknessesThrough its success, the company becomes desirous.

The company gave out huge discounts on subscriptions to IT (Information Technology) magazines and a free Sony music CDs.

SWOT ANALYSIS:STRENGTHS AND

WEAKNESSES

OpportunitiesCapability to produce all types of electronics such as

televisions, microwaves, and washing machines.Samsung in India can easily become a market leader.

ThreatsArrived late in India to penetrate market sometime in 1995.

This can cause competitors to block out the entering company and make market entry difficult.

SWOT ANALYSIS:OPPORTUNITIES AND

THREATS

ACTIONS

Samsung (A) Argues that India is not a good market for Samsung expansion.

Consumer Durables Market “Rough Patch”

Sluggish domestic demand

Slowing global economy

Slower exports

Lack of spending on infrastructure

Political uncertainty

Samsung decides to move into the Indian marketGoal: to be “one of the top three” electronics companies in India

ISSUES

K.S. KimManaging Director of Samsung’s Indian operations (1998-2001)

S.S. LeeK.S. Kim’s successor

Took over as Managing Director of Samsung’s Indian operations in 2001.

Heading up Samsung Electronics India Limited (SEIL) and Samsung Electronics India Information and Telecommunications (SEIIT)

PERSPECTIVES

Tested Indian market with introduction of Color TVs in 1995

When that was a success, expanded range of product categories to include the majority of its global product portfolio in 1999

Growth in industrialization and the middle class lead to higher demand for air-conditioners (AC)

ENTRY

Examine features and match them with the customer needs gap

Focus on brand differentiation

Technology

Distribution

After-sales service

India’s customers are not “price conscious” but they are “value conscious”

MARKETING STRATEGY

18 Branch Offices

Over 3,900 Dealers

400 Service Centers

Focus 21 Program:

Linked majority of service centers with home office

DISTRIBUTION AND CUSTOMER SERVICE

Global network set-up to utilize the best brains and resources that the world had to

offer

RESEARCH AND DEVELOPMENT

68% of components used in color televisions were from local vendors

Advanced computer networking system

INFORMATION TECHNOLOGY AND SUPPLY CHAIN MANAGEMENT

Samsung Hope for Children An initiative designed to help under-privileged children through e-learning centeres.

Innovations for Development of the Community A partnership between Samsung and various educational and media agencies to

support grassroots innovations.

Hope for Culture

Represents Samsung’s tribute to the rich Indian cultural heritage through Tagore Literature Awards that recognises the best literary contributions in 24 Indian regional

languages.

Sports Sponsorship

An ongoing initiative wherein Samsung supports top ranking athletes across individual sports disciplines with their training expenses while they prepare for the Asian or the Olympic Games. Samsung is also the Sponsor of the Indian team to the forthcoming

London Olympics.

CORPORATE SOCIAL RESPONSIBILITY

Samsung contributed to India’s economic development with recurring investment and increased market development.

Can compete with local business or can aim to expand in luxury market and aim for a higher profit margin.

CONSEQUENCES

Samsung has achieved great success in the Indian market and should utilize a strategy of continuing

to do exactly what they have been doing.

RECOMMENDATIONS

Houses facilities for Color Televisions (including 3D, LED and LCD Televisions), Mobile Phones, Refrigerators, Washing Machines and Split Air Conditioners

categories.

Samsung commenced operations of its second state–of-the-art manufacturing complex at Sriperumbudur, Tamil Nadu in November 2007.

Samsung India has two R&D Centers in India – at Delhi and Bangalore .While the Delhi R&D Centre develops software solutions for hi-end televisions such as

Plasma TVs, LCD TVs and Digital Media Products, the Bangalore R&D Centre works on major projects for Samsung Electronics in the area of telecom, wireless terminals and infrastructure, Networking, SoC (System on Chip) Digital Printing

and other multimedia/digital media as well as application software.

Samsung India is a market leader in product categories like LED TVs, LCD TVs, Slim TVs and Side by Side Refrigerators. While it is the second largest mobile

handset brand in India, it leads in the smart phone segment in India.

Samsung India has won several awards and recognitions for both its corporate initiatives as well as its product innovations in audio visual, home appliance, IT

and telecom product categories

CONCLUSION:SAMSUNG INDIA TODAY

QUESTIONS? COMMENTS?Thank You!