BusinessStrategy,A1,power pt

8/11/2019 BusinessStrategy,A1,power pt

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ZIN MIN LWIN, Business Strategy

HND-1250



I am going to cover and present on some of thebusiness related studies on this Samsung Electronicsindustry.

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This report is going to include its: Missions and Visions

Goals and objectives

BCG matrix

Ansoff growth matrix analysis



Samsung Electronics is one of the most prestigioustechnology companies in the industry. With moretechnology advancements than our market can handleat this point and time, Samsung has paved the way forthe future in electronics.

It is part of the Samsung Group, the flagshipsubsidiary of Samsung Group.



Vision 2020

As stated in its new motto, Samsung Electronics' vision forthe new decade is, "Inspire the World, Create the Future."

This new vision reflects Samsung Electronics’ commitmentto inspiring its communities by leveraging Samsung's threekey strengths: “New Technology,” “Innovative Products,”and “Creative Solutions.” -- and to promoting new value forSamsung's core networks -- Industry, Partners, and

Employees. Through these efforts, Samsung hopes tocontribute to a better world and a richer experience for all.



As part of this vision, Samsung has mapped out aspecific plan of reaching $400 billion in revenue andbecoming one of the world’s top five brands by 2020.To this end, Samsung has also established threestrategic approaches in its management: “Creativity,”“Partnership,” and “Talent.”



The four Core competencies of Samsung are: creativepeople, technology leadership, innovative culture, andcustomer value creation.

According to the report on Samsung Mobile’s strategicand marketing practices, the core competencies of theSamsung Group remain manufacturing, productdevelopment, research and development, andmarketing/ branding. Recently, the focus has shiftedmore towards strategic brand management ofSamsung Mobile. (EFFIE/ The Best Brand 2006).



Samsung's cost of production for the S 4, and other half of

the components for these devices are sourced out from their

own plants, which means that half of the cost goes back totheir bank account and that they already earn money even

before they sell S 4 units. Whereas Apple and other sources

out most of its components from others, which means that

they only become profitable once they have sold the iPhoneunits.



The origin of the Boston Matrix lies with the BostonConsulting Group in the early 1970s. It was devised as aclear and simple method for helping corporationsdecide which parts of their business they shouldallocate their available cash to.

The Boston Matrix is also a good tool for thinkingabout where to apply other finite resources: people,time and equipment.



Dogs: Low Market Share / Low Market Growth In these areas, your market presence is weak, so it's going

to take a lot of hard work to get noticed. You won't enjoythe scale economies of the larger players, so it's going to bedifficult to make a profit. And because market growth islow, it's going to take a lot of hard work to improve thesituation.

Cash Cows:High Market Share / Low Market Growth Here, you're well-established, so it's easier to get attentionand exploit new opportunities. However it's only worth

expending a certain amount of effort, because the marketisn't growing, and your opportunities are limited.



Stars:High Market Share / High Market Growth

Here you're well-established, and growth is exciting! Thereshould be some strong opportunities here, and you should work hard to realize them.

Question Marks (Problem Child):Low Market Share / High Market Growth

These are the opportunities no one knows what to do with.They aren't generating much revenue right now because you don't have a large market share. But, they are in highgrowth markets so the potential to make money is there.

Question Marks might become Stars and eventual Cash

Cows, but they could just as easily absorb effort with littlereturn. These opportunities need serious thought as to

whether increased investment is warranted.



Star Problem child

Cash cow Dog



The Ansoff Growth matrix is another marketingplanning tool that helps a business determine itsproduct and market growth strategy.

Ansoff ’s product/market growth matrix suggests that abusiness’ attempts to grow depend on whether itmarkets new or existing products in new or existingmarkets.



Market Penetration - the firm seeks to achieve growth with existing products in their current market segments,aiming to increase its market share.

Example: Smart phone sector and Samsung 3D TV

Market Development - the firm seeks growth bytargeting its existing products to new market segments.

Example: Samsung Home appliances, washing machine,Notebook and cameras.



Product Development - the firms develops newproducts targeted to its existing market segments.

Example: Each year Samsung has invested at least 9% of

sales revenue into R&D activities. As the companycontinues to increase R&D spending, theircommitment to leading technology standardizationand securing intellectual property rights remainsstrong. S4,note 1, note 2

Diversification - the firm grows by diversifying intonew businesses by developing new products for newmarkets. The product and market development may beoutside the core competencies.

Example: Samsung TV, since LG and Sony has been abeen a better player in that field.



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