Chapter 1

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CHAPTER 1

INTRODUCTION TO STUDY

Advertising in other words mobile advertising is the technique that


focuses on marketing smart phones. Marketing which forms an bridge
gap between the product and customer. A market generally takes into
consideration the 4 important Ps that is Product, Place, Price,
Promotion. The marketer while decided to promote a product he tries
to ful fill the 4ps so that the product information reaches perfectly to
the target consumers.

Samsung is a South Korean company originally founded as a grocery


trading store by Lee Byung-Chull in March 1938. The company
forayed in the electronics industry in 1969 and its first electronic
product was a black-and-white television. Soon, the company also
started exporting its products and became a major electronic
manufacturer in its home country. In 1970, the company acquired a 50
per cent stake in Korea Semiconductor.

Witnessing a rapid expansion in the early 1980s, the company


established separate branches for its various electronics businesses. It
is at this time that the company also made investments in two research
& development institutes which helped it become the market leader in
information technology services. By 1990s, the company had become
one of the top five electronics makers in the world and was mainly
known for its semiconductors, LCD screens and other technology
products. Samsung forayed into mobile phones in 2000 with the
launch of a feature phone with built-in camera that could take up to 20
photos at a time. By late 2000, the company had launched several
phones, but its global success story started with the launch of the
Galaxy S series of smartphones that used the company’s OLED
screen technology and hummingbird processor. Besides smartphones,
the company is also a major vendor of tablet computers, particularly
Android-powered Samsung Galaxy Tab-series, and is regarded as the
originator of the phablet category through its Samsung Galaxy Note-
series devices. Now, Samsung is one of the major manufacturers of
electronic components globally. It is also one of the major suppliers
of electronic products like batteries, semiconductors, chips, flash
memory and hard drive to companies such as Apple, Sony, Nokia, etc.
Samsung has also been the world's largest manufacturer of television
since 2006, and of smartphones since 2011. In 2017, the company
overtook Intel to also become the world's largest manufacturer of
semiconductor chips.

HISTORY

1938–1970

In 1938, during Japanese-ruled Korea, Lee Byung-chul (1910–1987)


of a large landowning family in the Uiryeong county moved to
nearby Daegu city and founded Mitsuboshi Trading Company
((kabushiki gaisha mistuboshi)), or Samsung sanghoe. Samsung
started out as a small trading company with forty employees located
in Su-dong (now Ingyo-dong).[16] It dealt in dried-fish,[16] locally-
grown groceries and noodles. The company prospered and Lee moved
its head office to Seoul in 1947. When the Korean War broke out, he
was forced to leave Seoul. He started a sugar
refinery in Busan named Cheil Jedang. In 1954, Lee founded cheil
mojik and built the plant in Chimsan-dong, Daegu. It was the largest
woollen mill ever in the country.

Samsung diversified into many different areas. Lee sought to establish


Samsung as a leader in a wide range of industries. Samsung moved
into lines of business such as insurance, securities, and retail.

In 1947, Cho Hong-jai, the Hyosung group's founder, jointly invested


in a new company called Samsung Mulsan Gongsa, or the Samsung
Trading Corporation, with the Samsung's founder Lee Byung-chul.
The trading firm grew to become the present-day Samsung C&T
Corporation. After a few years, Cho and Lee separated due to
differences in management style. Cho wanted a 30 equity share.
Samsung Group was separated into Samsung Group
and Hyosung Group, Hankook Tire and other businesses

In the late 1960s, Samsung Group entered the electronics industry. It


formed several electronics-related divisions, such as Samsung
Electronics Devices, Samsung Electro-Mechanics, Samsung Corning
and Samsung Semiconductor & Telecommunications, and opened the
facility in Suwon. Its first product was a black-and-white television
set

1970–1990

The SPC-1000, introduced in 1982, was Samsung's first personal


computer (sold in the Korean market only) and used an audio cassette
tape to load and save data – the floppy drive was optional.[19]

In 1980, Samsung acquired the Gumi-based Hanguk Jeonja


Tongsin and entered telecommunications hardware. Its early products
were switchboards. The facility was developed into the telephone and
fax manufacturing systems and became the center of Samsung's
mobile phone manufacturing. They have produced over 800 million
mobile phones to date.[20] The company grouped them together under
Samsung Electronics in the 1980s.

After Lee, the founder's death in 1987, Samsung Group was separated
into five business groups – Samsung Group, Shinsegae Group, CJ
Group, Hansol Group and the JoongAng Group.[21] Shinsegae
(discount store, department store) was originally part of Samsung
Group, separated in the 1990s from the Samsung Group along with CJ
Group (Food/Chemicals/Entertainment/logistics), Hansol Group
(Paper/Telecom), and the JoongAng Group (Media). Today these
separated groups are independent and they are not part of or
connected to the Samsung Group.[22] One Hansol Group representative
said, "Only people ignorant of the laws governing the business world
could believe something so absurd", adding, "When Hansol separated
from the Samsung Group in 1991, it severed all payment guarantees
and share-holding ties with Samsung affiliates." One Hansol Group
source asserted, "Hansol, Shinsegae, and CJ have been under
independent management since their respective separations from the
Samsung Group". One Shinsegae department store executive director
said, "Shinsegae has no payment guarantees associated with the
Samsung Group".[22]

In the 1980s, Samsung Electronics began to invest heavily in research


and development, investments that were pivotal in pushing the
company to the forefront of the global electronics industry. In 1982, it
built a television assembly plant in Portugal; in 1984, a plant in New
York; in 1985, a plant in Tokyo; in 1987, a facility in England; and
another facility in Austin, Texas, in 1996. As of 2012, Samsung has
invested more than US$13,000,000,000 in the Austin facility, which
operates under the name Samsung Austin Semiconductor. This makes
the Austin location the largest foreign investment in Texas and one of
the largest single foreign investments in the United States.[23][24]

In 1987, United States International Trade Commission order that the


Samsung Group of South Korea unlawfully sold computer chips in
the United States without licenses from the chip inventor, Texas
Instruments Inc. The order requires Samsung to pay a penalty to
Texas Instruments within the coming weeks. Otherwise, sales of all
dynamic random access memory chips made by Samsung and all
products using the chips would be banned in the United States. The
ban includes circuit boards and equipment called single-in-line
packages made by other companies that use D-RAM's made by
Samsung with 64,000 or 256,000 characters of memory. It also covers
computers, facsimile machines and certain telecommunications
equipment and printers bearing either of the Samsung chips.

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