HISTORYSamsung Electronics, was founded in 1969. Once known for its televisions and alternative home appliances, Samsung recently eclipsed heavyweights Sony Ericsson and Motorola together of the most important mobile phone makers within the world

Mr. B D Park is the President and CEO of Samsung South West Asia Operations and Managing Director, Samsung India Electronics LtdHe came to India as the Head of Mobile and IT Division in 2008 and has now been elevated to the position of President & CEO, Samsung South West Asia operations

HISTORY

• Samsung Electronics commenced its operations in India in December 1995 and is today a leading provider of Consumer Electronics.

• Samsung India is the Regional Headquarters for Samsung’s South West Asia operations, which provides employment to over 8,000 employees with around 6,000 employees being involved in R&D.

• In 2010, Samsung India achieved a sales turnover of US$3.5 billion.

AMOUNTS IN BILLIONS WON DOLLARS EUROS

Net Sales* 25254,561 220.1 165.9

Total Assets 391,391.9 3343.7 25258.7 Total Liabilitiesotal Liabilities

230,688.5 202.6 152.5

Total Stockholder’s EquityStockholder's Equity

160,693.5 141.1 106.2

Net Income*Net Income* 24,497.9 21.2 16.0

Awards

a] Mar 2010: Samsung won 3 awards at the NDTV Tech Life Awards 2010 to honor the year’s coolest gadgets and the best technological innovations. {Best Budget Mobile of the Year: Samsung Corby}

b] Mar 2011: Samsung won 3 much coveted awards at the NDTV Gadget Guru Awards 2011 that honor innovation and products that truly make a difference in the world of technology. {Smartphone of the Year - Galaxy }

c] Sep 2011: While Samsung ranked 27th in Economic Times’ annual Survey on the Top 100 trusted brands in India, it emerged as the most Trusted Consumer Durable brand in India, while maintaining its position as No. 2 company in the mobile phone category.

d] Dec 2011: Samsung emerged as the Most Aspirational Brand of the Year 2011 in the Best Brands Survey 2011 conducted by Financial Express and market research agency Synovate. Samsung was ranked high for its 'Flaunt Factor' linked to its attributes like quality, brand reputation and imagery

Best selling phone of Samsung…

Samsung Ace Duos

GROWTH & EXPANSION STRATEGY

INTERNAL EXTERNAL

DIVERSIFICATION INTENSIFICATIONMERGERS

JOINT VENTURES

AMALGAMATIONSACQUISITIONS

INTERNAL GROWTH STRATEGY

DIVERSIFICATION

• VERTICAL DIVERSIFICATION– BACKWARD INTEGRATION– FORWARD INTEGRATION

• HORIZONTAL DIVERSIFICATION

• CONCENTRIC DIVERSIFICATION

• CONGLOMERATE DIVERSIFICATION

VERTICAL DIVERSIFICATION• BACKWARD INTEGRATION

Samsung Electronics manufactures chips, terminals, vials, memory cards, etc., along with manufacturing handsets

• FORWARD INTEGRATION

Samsung Electronics would earlier tie up with malls and shopping complexes to sell mobile phones but now there are independent retail outlets in Mumbai, New Delhi, etc.

Company moves one step backward from it’s current line of business activity

Company moves one step ahead of it’s current line of business activity

• HORIZONTAL DIVERSIFICATION

The technology of a Samsung desktop computer and a Samsung mobile phone gave rise to Samsung Galaxy Tablets

• CONCENTRIC DIVERSIFICATION

Company enters into a new line of business that is closely related with existing line of business

through processes, technology, etc.

Diversification indirectly related to existing business line

• CONGLOMERATE DIVERSIFICATION

Diversification totally unrelated to existing business line

For example: Samsung Refrigerators Mobile Phones

INTENSIFICATION

MARKET PENETRATIONMARKET DEVELOPMENT

PRODUCT DEVELOPMENT

MARKET PENETRATION & DEVELOPMENT

Brand Ambassador: Aamir Khan

Providing free content on the mobile by collaborating with the copyright owners of

Bollywood movies. For e.g. Ghajini, Love Aaj Kal

Promotional offers like free entry to the show of ‘10 ka dum’

Organizing contests like ‘Samsung Mobile Karaoke Festival’

Opening the Samsung Fun Club for better customer relationships

SAMSUNG APPOINTS AAMIR KHAN AS IT’S BRAND AMBASSADOR FOR MOBILE PHONES on Mar 18, 2008

Free online software updates, tutorials and customer service

Highlights the innovative features of its products through a combination of innovative advertising and branding

Established many Samsung Mobile Stores to increase the visibility of the brand

PRODUCT DEVELOPMENT

GALAXY NOTE 10.115th AUGUST, 2012

SAMSUNG & SPRINT COLLABORATED ECO- FRIENDLY PHONE (SPH-M910)

Growth StrategyExternal:

Mergers, Acquisitions, Joint Ventures & Amalgamations

MERGERS:

Merger is an absorption of one or more companies by a single existing company.

Eg: Samsung Electronics merged its display company with its mobile company.

ACQUISITIONS: A corporate action in which a

company buys most, if not all, of the target company's ownership stakes in order to assume control of the target firm. 

Eg: Samsung is in talks to acquire a mobile-related tech company.

JOINT VENTURE: A cooperative enterprises entered into by

two or more business entities. This creates:Separate corporationPartnershipLimited liability company

Eg: Samsung and Corning announced a new joint venture .

AMALGAMATION: Amalgamation is a union of two or more

companies, made with an intention to form a new company.

SWOT ANALYSIS

Focus on customers

Hybrid hard drive

Targets youth

Manufactures everything by itself

Creates innovative products

Designs not user friendly

Diversification in products

Costly promotional activities

Lacks fresh ideas

• Strengths • Weakness

Opportunities of Samsung

Distinguish its service from competitors. Offer product variations Demand for cell phones driven by the service

providers or carriers Lowering the price of a phone by just $20 in

many countries could increase its affordability by 43%.(As per a study report)

Threats of Samsung

Motorola’s dominance in the U.S, Nokia’s popularity in the European market, controlling more than half of the world market

Aggressive competitors, including Sony, Ericsson, and Siemens eating into its share.

Current economic climate poses threat to Samsung electronics

Increasing raw material prices

STABILITY STRATEGYAims At Stable Growth

A firm following this strategy focuses its resources on a single product, in a single market, using one tested technology to ensure profitable growth. Companies adopt this strategy as it is less risky and does not demand scarce additional resources.

Features

Environment

Expertise

Market share

Market Philosophy

• EXAMPLE: Rolls Royce Rolls Royce follows the strategy of focusing on the single market. It manufactures only luxurious car and caters to higher income class.

Application of stability strategy on samsung

• Rapid growth• Diversification• Risk taking power• Various other factors

Samsung does not apply to stability strategy.

MODERNIZATION STRATEGY

What is modernization strategy?

Technology

Innovation/improvement

Reduction in cost

R & D

Samsung S

Some of the features are:

Location Wireless & networks Wi-Fi hotspot Locale on text Menu bar Keyboard Notification section

Samsung S lll

Exclusive appSuper LED screenVoice recognitionVoice controlHigh speedRespond to gestures

Self FinancingMeaning

What does it include?

AdvantagesEconomicalEfficiencyLess financial risk

RETRENCHMENT STRATEGY…

What is retrenchment?“To cut down or reduce something”

“Tighten one’s belt”“Use resources more carefully”

Methods of retrenchment

• Significant reduction in output & capacity

• Significant job losses• Product or market

withdrawals• Disposal of business units• Outsourcing key business

functions• De-mergers

Downsides of “downsizing”

• Motivation and morale for those left behind usually worsens

• Potentially damaging effects on productivity, innovation and staff retention

• Little evidence that downsizing actually improves profitability

Samsung at the crossroads August 24 2007, (Business 2.0 Magazine)

 One day in the not-so-far-off past, Kun-Hee Lee, chairman of Samsung Electronics, sent each of his closest friends and key employees one of the company's newest wireless phones as a New Year's present.

It was a nice thought, but it backfired. The things just didn't work properly, and polite complaints started pouring in. Mortified, Lee rushed to the company's factory in the South Korean city of Gumi, where most of Samsung's handsets are made.

He gathered the employees in the courtyard, made a giant heap of the factory's entire inventory of wireless phones ( more than $15 million worth ) and ordered it smashed to pieces and set on fire.

The incineration at Gumi marked a turning point in Samsung's turbulent history. Before 1995 the company was known primarily as a purveyor of cheap knockoff electronics. Afterward, the emphasis shifted dramatically.

Samsung, LG Join Job-Sharing Drive Feb. 25th 2009. The Korea times.

Samsung Group and LG Group are joining a "job-sharing" drive aimed at minimizing layoffs through wage cuts.

Korea's jobless rate rose to 3.6 percent in January with 103,000 jobs lost on a year-to-year basis. 

For Samsung, wage cuts for new recruits will be a maximum 15 percent. 

However, Samsung may lower its number of new hires this year from 3,500 in the first half of last year. LG Group will also cut the wages of new employees by 15 percent.

"We will present more detailed measures for job-sharing," a group spokesman said.

Big companies are set to slash their capital spending this year amid a gloomy outlook in business conditions.The Korean economy, Asia's fourth-biggest, is forecast to fall into its first "recession" in 11 years, directly hit by the global economic turmoil.