Success story of… … …

Pratik GodhaniPharmacy management

Introduction • Company of South Korea.

• Established in 1969 to manufacture black and white TV sets

• Purchased a Korea Semiconductor Business in 1974

• In 1980 dedicated most of its resources to semiconductor business and built its first manufacturing facility.

• Annual revenue of US $173.4 billion in 2008.• Samsung Group accounts for more than 20%

of South Korea's total exports.• The company has a powerful influence on the

country's economic development, politics, media and culture.

Growth

• In the late 1960s, Samsung Group began the electronics industry.

• It formed several electronics-related divisions, such as– Samsung Electronics Devices Co., – Samsung Electro-Mechanics Co., – Samsung Corning Co., and – Samsung Semiconductor & Telecommunications

Co.

Phase Details

1970-79 1972: Production of black-and-white televisions for domestic sale5 millionth black-and-white TV produced by 19761979: Began mass production of microwave ovens

1980-89 1982: Began producing air conditioners, 1 millionth colour TV produced 1983: Began production of personal computers (PCs)1986: world's smallest, lightest 4mm video tape recorder1989: 20 millionth colour TV produced.

1990-99

Established R & D center.Development of mobile phone handset 1993: developed first-ever digital video disk recorder (DVD-R)1994: developed the world's first four-power zoom camera1995: World's first 33" double-screen TV introduced1996: Developed world's fastest CPU.1998: Developed world's lightest PCS (105g) Developed world's largest TFT-LCD (30)1999: Developed the world's first 3D TFT-LCD Monitor Developed wireless Internet phone (small phone)

2000- 2009 2001: Ranked No. 1 of world's Top 100 IT Companies by BusinessWeek2002: Launches PDP-TV, the slimmest in the world2003: Released 46" LCD TV for the first time in the world2004: Released the world's first 7 mega pixel camera phone2006: Unveiled 10M pixel camera phone2007: No.1 worldwide market share position for TVs 2001-07: No.1 worldwide market share position for LCD2008: Samsung takes No. 1 spot in U.S. cellphone market2009: Became No. 1 in the US digital TV market for the 4th consecutive yearSamsung’s LED TV won “TV of the YearReceived the 2009 LCD TV Market Leadership AwardDisplayed the world’s thinnest TV (6.5mm)

Structure

• Spans 58 countries• Samsung Electronics has 5 business divisions :– Semiconductor – Digital Media– Telecommunications– LCD– Digital Appliances

• Two dimensions of competitive strategy– Competitive advantage - low cost vs.

differentiated play– Target Market - broad vs. niche .

– Focused on market penetration with low cost.

Competitive Strategies

Overall Low-CostProviderStrategy

(Commodity DRAM)

BroadDifferentiation

Strategy(Cutting Edge DRAM)

FocusedLow-CostStrategy

(Low cost flash memory chip)

FocusedDifferentiation

Strategy(Rambus DRAM)

Best-Cost ProviderStrategy

(Samsung’s Strategy)

Lower Cost Differentiation

BroadRange of Buyers

Narrow Buyer

Segmentor Niche

Conclusion

Samsung’s success has been due to • Developed innovative products every year but

they focused on market penetration with lower cost products to meet customers of all classes.

• Large product portfolio (occupy the entire spectrum for a broad market play).

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