Samsung

Published Date: 02 Nov 2017

Q NO 1: Chooose an organization, identify and critically analysis its strategic marketing problems and opportunities ?

Q NO 2 : As a consultants, examine strategic marketing alternatives available and recommend a suitable marketing strategic and realistic implementation plans that are consistent with the overall objectives of the organization ?

Introduction

World largest electronics company Samsung was began in 1969 in Suwon, South Korea as Samsung Electric Industries, originally manufacturing electronic appliances such as TVs, calculators, refrigerators, air conditioners and washers.

The presented piece of work studies the performance of the SAMSUNG company in UK stock market, follows its progress and interesting events for the recent time as well as provides with financial statements, balance sheet and calculates figures required.

First of all, the name and address of the company is presented. Secondly, they present the annual report of the company,share prices graphic in compare with other companies and share price graph for the past two years in his report company provided thelatest news and other information.

Samsung Electronicsis the world largest electronic and technology company. Samsung make business of $117.4 billion in 2009. The headquartered of SAMSUNG is in SOUTH KOREA. It is the one of the largest South Korean company and the flagship subsidiary of the Samsung group. SAMSUNG Electronics is the global market leader in more than 60 products. The main products of Samsung company is flash memory and hard drives, digital displays such as LCD DISPLAYS. Home electronics like Television DVDs Players, set top boxes and projects, mobile devices such as mobile phones,MP3 Players, digital cameras, computing products such as monitors, laptop, UMPCs, CD and DVD Drives, laser printers and fax machines and home appliances such as refrigerators, washing machines, microwaves, ovens, vacuum cleaners and air conditioners.

Name and Address of the company

SAMSUNG

Company Address :

Samsung Town
Seoul,
South Korea

www.samsung.com

Background / History

In 1938 Samsung start business local and non-electronic company ( a dealer of fruits, vegetables etc) Samsung also introduce new innovation other products such as media, machinery ship building from 1950s to 1970s.

Samsung began producing electronic products, TVs and mobile phones in the late 60s. With the death of company founder in 1987, Samsung got its second chairman. The global establishment and expansion of the company started in 90s and reached in various countries of Asia, Europe and America till 1997 its trade in electronic products. Samsung managed to keep its progress pace in late 90s when all other companies were facing severe credit crunch.

Samsung is now producing world famous TVs, Mobile phones, Video Cameras. Keeping an eye on the current market trends, Samsung is now manufacturing high quality smart phones and 3G devices to compete its biggest market rivals Nokia and phone.

SWOT Analysis

a) Strengths

Samsung is one of the largest company worldwide. Samsung is top rated company in the UK and all over the world. Business week rated Samsung as 20th on the top 100 world brand and second in electronic industry. Samsung Electronics is largest worldwide manufacture of memory chip and the second largest manufacture of semiconductors. In 1999 to 2002, Samsung made a lot of work in Hynix Semiconductor, Information Technologies, Elpida Memory (HitachiandNEC) and Micronto fix the prices of DRAM chips sold to American computer makers. Samsung is the world's largest LCD manufacturer. Samsung is one of the largest industry in cell phone brand all of the world. Samsung introduces new innovation in the laptop industry. Samsung company are famous in the UK and others well known countries around the world.

b) Weaknesses

Weaknesses of Samsung company is not pro actively coming out with newer models. Lack of product differentiation. Samsung introduce different models at different prices that focus on Mass market instead of position markets. Samsung wouldn't introduce cell phones like Blackberry and Nokia.Samsung is developing the new models of mobils and laptops but the prices of othr brands is so cheap.

c) Opportunities

Samsung Electronics worked at four areas in the software Market. These are following as:

• 1st in Digital


• 2nd in Media,


• 3rd in Semiconductor, Telecommunication Network,


• 4th is LCD Digital Appliance.

They also expand a lot of opportunities in those areas. The main growing business areas related to LCD Digital Media Semiconductor at 2006. In 2009, Samsung established as a separate entity to focus onB2B sales and has released a broad range of Multi-Functional Devices and printers. All major Print apparatus manufacturers Samsung have developed and released supporting management software and utilities. The main Print-Management software has been released asSyncthru WebAdmi Service.

d) Threats

The other world famous cell phone NOKIA company is very popular in the Europe that's why the threats of Samsung's domination in the U.S. Nokia's popularity in the European market, controlling more than half of the world market hard line competitors, including Sony, Ericsson, and Siemens consumption into its share.

How Samsung influences consumer decision

Customer always demand those things who have some attraction. Due to new product in the market, customer demand change day by day. The consumer decides which brand to purchase Integration Post-purchase evaluation .The consumer evaluates their purchase. affecting purchase decision .We have tried to estimate the strength of the factors that influence consumer buying decision. The most important thing is the buying behavior price of product is the most important factor which effects the buying behavior of consumer. Samsung made some charmfull design electronic mobile and the price should be cheap then Company make progress in all over the world because customer also like charming and good looking design and cheap price. customer always demand good attraction and unique product.

PEST Analysis:

• P= Political


• E= Economical


• S= Social


• T= Technological

 

Political

Samsung considers political policy very important for the betterment and the progress of the company and it obey all the rules and regulation imposed by the government of the UK or any other country. Samsung paying a large amount of income for tax and for the Government stability.

Economical

Samsung had made huge progress in recent years, though it was facing tough challenges by the rival companies. The main factor in this progress can, somehow, be pointed out as the wide range of products offered by Samsung. Below is a table stating some of the economic history of Samsung for the year 2007.[2]

Amount in Billions	Dollars	Euros	won
Net sales	174.2	127.2	161,847.4
Total Liabilites	302.9	205.7	284,165.5
Total Assets	192.7	130.9	180,833.2
Total Stochholder's Equity	110.1	74.8	103,331.3
Net Income	13.9	10.1	12,873.7

Social

Keeping into account the social and cultural aspect of a society is very important for the product acceptance and popularity. Samsung focuses on this issue with great care, and product design is based keeping in mind the social needs and issues. For example, Samsung launched low priced cell phones which proved very successful specially in developing world.

Technological

Updating the technical and technological section is very vital for any company to maintain its position in the market. Any company failing to do so would soon be facing real challenges. Samsung, as being the manufacturer of wide variety of product, needed an up to date technology.

Especially in the manufacture of cell phone, LCDs, and other electronic products needs to be done on automated systems (Robotic machines) to maintain a continuous supply to products in the market, and Samsung has acquired that technological aspects for its progress.

Vision

Vision and Mission Statement:

Samsung has got its aim set as being ''Digital-E '' company. Being ''Digital'' means that company is intending not only to make electronic products but also the products that are competitive enough to provoke inspiration within the company to keep on producing the high quality products. The '' E '' parts relates to the company's contribution in the development of latest research in the electronic industry and developing user-friendly, market-competitive products. To achieve its goals, Samsung has divided its business strategy into four basic parts.

The very first thing in this is developing the home-entertainment accessories and the focus is on the digital TV. Efforts will be made on the technological and design improvement in the TV to get the maximum market attention. Secondly, the research n development in the mobile phone is the key focus of Samsung and there will continuous work in the development of 3G and smart phone which are, no doubt, seem to future of mobile phone industry. Samsung has stated to extend this section of the business from phone to laptops, PDAs and next generation devices and IMT-2000 system. Thirdly, in Office Network business, we will focus on printers, IP Terminal, info mobile as well as existing display area

''In the future, Samsung Electronics will practice holistic marketing strategy instead of individual marketing plans to strengthen its market power and increase brand value with high quality products. Under the brand concept of "Wow, Simple, Inclusive", Samsung Electronics is launching a worldwide brand campaign.'' [3]

It is clear that, mission and vision technology policies, marketing strategies and technological updates are the key

New marketing strategy

Samsung should be introduce the new marketing strategic in our company:

• Overall strategy


• Strategic alliances


• Affliated partners


• Computer hardware


• Dacomnent management services


• Selective target marketing


• Direct advertising


• Attractive site launch

Idea implement

By increasing management prowess and embracing innovation at every opportunity, Samsung electronic will become one of the most profitable and most revered global companies.[4]

Goal of Samsung

''The ultimate goal of Samsung Electronics is to emerge as a global business leader of unparallel determination and accomplishment, offering new values and a more prosperous future not only to our customers, shareholders and regional communities, but also to humanity as a whole. All of us at Samsung Electronics stand together, inseparably linked by a unified commitment to lead the growth of the global electronics industry as a truly exemplary company, admired by customers worldwide. I would like to welcome the encouragement and support of customers and shareholders alike in our tireless efforts to recreate ourselves into the most promising model for becoming what I envision to be "the best of the best."[4]

Conculsion

It is very clear that mission and vision policy, marketing strategies, technological updates and research & development are the key features for the progress of a company. In the precious discussion, it is obvious that Samsung is keeping all of these factors under consideration. In its set goals, samsung not only improving home based entertainment but it has planned to provide all the basic equipment n accessories required for the office use.

Critically speaking, Samsung is facing tough competition form its rival companies specially in the UK and Europe. Although samsung still holds a big place in entertainment products, it has not come up with a very market competitive mobile phone or smart phones.

Marketing strategies of samsung are developing as there is shift in the media from TV to internet. So Samsung has got a good setup of websites and its market strategies are reasonably upto date.

References

[1] : http://www.samsung-mobiles.net/history-of-samsung.html

[2]: www.samsung.com/uk

[3]:http://www.samsung.com/be/aboutsamsung/companyprofile/digitallvision/CompanyProfile_DigitallVision.html

[4]:http://www.samsung.com/cn/aboutsamsung/corporateprofile/download/03_SEC_AR07_E_MessagefromtheCEO.pdf