Samsung - Tom
Samsung - Tom
Samsung - Tom
M061210001 M061220001 M061220002 M061220003 M061230002 M061230009 Lim Mei Chin Muhammad Fikry Farrahiyah Ismail HaryaniAbKarim Najmin Yusoff Samiyah Othhman
Outline
Introduction Samsungs competitive advantage Samsungs management analysis Samsungs corporate strategy Competitive analysis on Samsung Key drivers for future growth Value chain analysis Conclusion
Introduction
Samsung has realized how to combine early-fancyinnovative-cutting edge technology and mindblowing advertisement to dominate mobile phone industry. Samsung Electronics Co. Ltd., as part of Samsung Group has become the worlds largest mobile phone makers (Gartner, Inc, 2012; and IDC, 2012). Samsung sales have continued to accelerate and have widened the gap with Apple in the Smartphone market.
Facts
Sony Co.
Phillips Electronics
125,241 employees
LG Electronics
Competitive Advantage
Samsung capable to produce variety products with customized product and at the same time Samsung can maintain the core design of its products. Samsung success attracts various customers from the low income customer to high income customer to occupy the Smartphone market. Samsung success aims Asian market to promote low-cost Android mobile phones. Samsung is always saving and control their capital, so during recession in 2009, Samsung has allocated capital from the semiconductor industry to build Smartphone industry.
Samsung has always supported and respect the choice of customers. Samsung has built a geographically dealer and indirect distributor to promote and sell Samsung products. Policies used as a means of attracting foreign investments could lead to reduced benefits from these investments for host countries as a whole. FDI can have undesirable outcomes such as rising inequality between individuals, groups or regions. As Samsung continuously increases research and development spending, Samsung strong determination to leading technology and obtaining intellectual property stay solid. At the same time, Samsung creates new technology affordable so customers can enjoy the latest technology that provide by Samsung.
Samsungs top management was decided to expand their products and technologies on telecommunication. Samsung Electronics is growing in partnership. In 1994, Samsung Electronics established a strategic agreement with ISB whereby Samsung Electronics helped them develop next generation chips. Samsung main brands today concentrate on mobile phones and semiconductors. The Chairman also stressed more on Samsung products and said that Samsung product will have disappeared in next decade.
Corporate Strategy
Branding
Sponsor for Seoul Olympic
Alliances with world wide companies Listed in the Top 100 brands by Interbrand
Market Penetration
African market & gained 41% market share
Product Development
Develop products in various aspect
New technology - OLED
Unrelated Diversification
In Insurance & Heavy industries Listed in Fortune Global 500 Company
Horizontal Integration
Acquire UK Chipmaker CSR handset technology Do not want to depend much on 3rd party silicon suppliers Grant of using intellectual property
Competitive Analysis
Competitive Analysis - to provide an understanding of the competitive forces that have to be found within any given organization's competitive environment; it will attempt to understand an organization's industry, its competitive position within it, the prerequisites for survival and prosperity and the nature of competition and the market process. (Oxenfeldt and Schwartz, 1981). Competitive analysis has done specifically with the external environment of an organization and has been shaped by five factors, which are:
1. 2. 3. 4. 5. 6. economic factor; social, cultural, and demographic environmental factor; political, governmental and legal factor; technological factor; and competitive factor
Economic Factor
Fact:
1. Samsungs 2011 financial statement has stated the net income has increased from 180 billion won in 2010 to 4 trillion won. 2. Samsungs financial statement September 30 2012, stated that net income rose to 6.56 trillion won. 3. Samsungs Best Global Brand ranking has increased from 19th position in 2009 to 9th position (rankingthebrands, 2012) 4. Samsung Sales in 2009 - 0.6 million, 2010 - 23.9 million, 2011 - 97.4 million, 2012 300million for smart phones. In 2013 Samsung aim 510 million handsets to sell, 390 million are slated as smartphones and 120 million, feature and budget phones (koreatimes.co.kr)
Technological Factor
West country co. (Apple, Google, BlackBerry, Nokia) better in software engineering. East country co. (Samsung, LG, Sony, HTC) better in hardware engineering and reverse engineering Google produce free Android O.S that help east country to overcome and compete Apple monopoly in smart phones. Samsung R&D cost = Apple + Google
Competitive Forces
Medium - Threat of new competition Low - Threat of substitute products or services High - Bargaining power of customers (buyers) Low - Bargaining power of suppliers High - Intensity of competitive rivalry
Figure 5.6: Main approaches to sustainability at Samsung Source: Our Sustainability Reports - Citizenship - About Samsung - Samsung
Primary activities
Inbound logistics
mainly concerned with supplier, storage and handling the external sources material currently subsidies their major logistics activities to Samsung Electronics Logitech primary handles both inbound and outbound logistics and goes further in handling payments and processes with outsourced companies working seamlessly with the global ERP system maintained by Samsung SDC
Primary activities
Operation
the product components throughout the world but the most factories are located in Korea, China, Vietnam and Indonesia 196 subsidiaries across the world total workforce reached at 101, 973 working in Korea and 119,753 outside of Korea
Primary activities
Outbound logistics.
Samsung Electronic Logitech
being given a full range of trade support functions as well as logistics where all the activities related to the gathering, storing or distribution of their finished products
Primary activities
After sales
products are entitled a least a year international warranty for every item purchase. Any defects are normally replaced with the new item so that the failed product can be studies. training of the employees in all category given to maintain the value of the product and the services in term of safety standard by the Samsung technology
Supporting activities
Supporting activities
Procurement.
build the relationship between the Samsung Company and the supplier create a family of accredited within the supplier and give opportunities to internal division cooperative policy is to promote a win-win policy based on cooperation for mutual benefits with cooperative companies
Supporting activities
Firm Infrastructure and HR Management
enhance all the value created Firm infrastructure will be modified to account for new employees gained through acquisition, which will include adjustments in the accounts related to said employees and their companies, the management of these employees, the quality of the newest items produced, and in the information systems required to communicate live data across national borders.
Conclusion
Samsung has devoted electronic market nowadays with variety products; from smart phones to home appliances Samsung has become innovative company with strong determination to supply their customer with the newest but affordable technology. Samsung have strong culture and ecosystem to grow bigger in the future. With variety products Samsung success survive in electronic market; even now become the leader in smart phones technology. Samsung already invest in branding and marketing; introduce themselvesas innovate company that generate technology that made for humans.