April 18, 2015

Presented by:

Md. Monowar HussainStudent No: 3-12-23-010

Md. Zunayed Bin RakibStudent No: 3-14-28-054

Contents:

•Company Profile•Market Share & Brand Value•Industry Challenges & Strategies•Core Competencies•Past & Current Business Strategy •SWOT Analysis•Overview on Operational Strategy& performance

2015

•Samsung was founded by Lee Byung- Chull in 1938 as a trading company

Company Profile

Headquarters: Seoul, South KoreaRevenue: USD 305 billion + No. of Employees: 489,000 (2014)

Business Area: Consumer Electronics-Visual Display Business-Digital Appliance Business-Printing Solutions-Health & Medical Equipments

IT & Mobile Communications-MC Business-Network Solutions

Device Solutions-Memory Business-System LSI-LED

History:1938: Founded in Daegu, South Korea.1969: Samsung-Sanyo Electronics established (renamed Samsung Electro-Mechanics in March 1975 and merged with Samsung Electronics in March 1977).1970: Samsung-Sanyo started to produce black-and-white TV1978: Microwave Oven Production Started1980: Air Conditioner Production Started1983: Personal Computer Production Started1992: Samsung Developed Mobile Phone Systems2001: Samsung Electronics ranked No. 1 of world’s Top 100 IT Companies by BusinessWeek.2007: Samsung Electronics attained No.1 worldwide market share position for LCD for the sixth year in a row.2009 :Samsung Electronics built the world’s largest mobile phone as recorded in the Guinness Book of World Records.2013: Samsung ranks 8th in Interbrand’s ‘Best Global Brands' with a brand value of USD 39.6B USD.

2015Company Profile

Operations in 80Countries

15 Regional HeadQuarters

54 Global Sales Offices

38 Production Facilities

34 R&DCenters

78 OtherOffices

Focus:1. Innovative Product Idea2. Leading Innovation3. Strong Brand Commitment4. Involvement in global scale

Achievement:Most Admired Companies: 21st

Most Admired CE Business: 2nd

13th Largest Company of the World

2014-2015Market Share & Brand Value

30%

17%

7%6%5%

35%

LTV Market Share

SamsungLGSonyTCLHisenseOthers

21%

11%

10%

5%4%3%

46%

Mobile Phone Market ShareSamsungAppleNokiaLenovoLGXiaomiOthers

Brand Value: USD 45,462 million

2015Challenges & Strategies

Challenges:

Life Cycle for Electronics Goods is short Rapid change in Business Environment Increased demandProtection of new technologyChinese Companies aggressive entry in global market

Strategies:

In 1996, Strategy of Samsung changed from competing on price to competingin technology (Digital appliances were introduced by Samsung).Because of Global operations, Samsung is able to protect its innovationsby patents(they have good idea about lawsuits and country laws). R&D Centers are dispersed across the globe so that, consumers preferencescan be reflected in their product innovation. Creation Higher Brand Value among consumers. - Localized marketing strategy. Premium Pricing of product.

2015Core Competencies

Technology & Leadership innovation-Continuously invests more than their rivals in R&D-Spent almost up to 9% of their annual revenue on R&D-Global R&D network- Lead time for New Product Commercialization is 5 months.

Customer Value Creation-Receives feedback from their consumers and distributors (Best Buy) toIdentify customers needs and demands

Brand Image-Samsung has create a sense of exclusiveness among consumer’s mind

Strong Human Resources Management-Best talents are recruited - Pay Scale is high-Promotion is based on performance, not based on seniority

Own Manufacturing Facility & Vertical Integration -Own Manufacturing facility for faster response- Most of the cases, Samsung is it’s own supplier for raw materials.

2015Past & Current Business Strategy Analysis

2015SWOT Analysis

Strengths

•Strong brand equity•Constant focus on R&D•Diversified Product Portfolio withAttractive design & feature• Involvement in CSR activitiesthroughout the world

Weakness

•High Promotional activity Cost•Too much dependence on softwareFrom other companies• Weak Consumer perception regardingDurability• High Cost in R&D

Opportunities

•Growth in CE Market•Opening more store •Strong Customer demand for innovativeproduct & value-added features.• Improvement in Customer Service•Entry to new emerging markets(E.G: Bangladesh)

•Highly Competitive Business environment•Currency Risk•Chinese Competitors taking market share•Social Resistance & Environmental effect•New Nano-technology may replace Samsung’s technology

Threats

2015Over View on Samsung’s Operations

•Revenue of Samsung Compared to Major Competitors (2013-2014):

Company Sales Revenue

Samsung USD 207 billionSony USD 75.54 billion

LG USD 53.72 billionGE USD 146.04 billion

•Transnational Operational Strategy

- Product is Highly standardized.- Best People are recruited irrespective of any country preference.- Manufacturing is done in cost effective location( 12 factories in China).- Marketing activities are aligned to local culture( Local festivals are highlighted)- CSR Activities are done throughout the world

2015

Thank You

Questions?