SAMSUNG

SUBMITTED BY
Harsh Vardhan Yadav
Saurav Yadav
Kunal Yadav
Aju P. Babu
Jaskaran Singh Chhatwal
Hrithik Gupta
BBA.(Sem 6)
UNDER THE GUIDANCE OF DR.RITU SHARMA

STRATEGIC MANAGEMENT AND IMPLEMENTATION IN ELECTRONIC SECTOR

TABLE OF CONTENT

• Introduction

• Mission

• Vision
 
• SWOT Analysis and PESTLE

• Core Competencies

• Competitive Advantage

• Strategic Models
 
• Choosing Strategies

• Controlling and Implementation

INTRODUCTION

 Samsung was founded by Lee Byung-chul in 1938 as a trading. Over the next three decades, the
group diversified into areas including food processing, textiles, insurance, securities and retail.
Samsung entered the electronics in the late 1960s and the construction and shipbuilding
industries in the mid-1970s; these areas would drive its subsequent growth. Following Lee's
death in 1987, Samsung was separated into four business groups – Samsung
Group, Shinsegae Group, CJ Group and Hansol Group. Since 1990s, Samsung has increasingly
globalized its activities and electronics, particularly mobile phones and semiconductors, have
become its most important source of income.
 Samsung has a powerful influence on South Korea's economic development, politics, media and
culture and has been a major driving force behind the "Miracle on the Han River". Its affiliate
companies produce around a fifth of South Korea's total exports. Samsung's revenue was
equal to 17% of South Korea's $1,082 billion GDP.
Samsung’s

Mission Vision
 “We will devote our human resources and  “Inspire the world with our innovative
technology to create superior products and technologies, products and design that
services, thereby contributing to a better enrich people’s lives and contribute to
global society.”
social prosperity by creating a new
 Based on its business operations and current
future.”
international industry positioning, Samsung
focuses on the following components in its  Samsung frequently refers to a shortened
corporate mission: version of this corporate vision: “Vision
Ø Human resources and technological resources 2020: Inspire the World, Create the
Superiority of products and services Future.”
Improvement of the global society
 The following components are contained in
 Company maintain highly competitive
Samsung’s vision statement:
compensation packages and related
human resource administration and 1. Global inspiration
development programs to attract 2. Innovation
sufficient talent while competing against
technology giants like Apple Inc. and 3. Improvement of lives and future social
Google LLC. prosperity

 COMPETITIVE ADVANTAGES(Michael
Porter) Generic Strategy

PORTERS 5
FORCES ANALYSIS
Cost Leadership Cost Focus

The product will be basic -

A strategy of cost leadership requires close perhaps a similar product to
cooperation between all the functional the higher-priced and
areas of a business. To be the lowest-cost
producer, a firm is likely to achieve or use
featured market leader, but
several of the following: acceptable to sufficient
High levels of productivity consumers. Such products
High capacity utilisation are often called "me-too's". 
Use of bargaining power to negotiate the
lowest prices for production inputs
Lean production methods (e.g. JIT)
Effective use of technology in the
production process
Differentiation

Focus Leadership
 The special customer needs of the segment There are several ways in which this can be achieved,
mean that there are opportunities to though it is not easy and it requires substantial and
provide products that are clearly sustained marketing investment. The methods include:
different from competitors who may be 1. Superior product quality (features, benefits,
targeting a broader group of customers. durability, reliability)
 The important issue for any business 2. Branding (strong customer recognition & desire;
adopting this strategy is to ensure that brand loyalty)
customers really do have different needs 3. Industry-wide distribution across all major channels
and wants - in other words that there is a (i.e. the product or brand is an essential item to
valid basis for differentiation - and that be stocked by retailers)
existing competitor products are not 4. Consistent promotional support – often dominated
meeting those needs and wants. by advertising, sponsorship etc
 
 (1)theintensity of rivalry among
competitors,
(2) the threat of potential entry,
(3) the bargaining power of suppliers, 
(4) the bargaining power of buyers, and 
(5) the threatof substitutes. A key
proposition is that firm performance
critically depends on thedegree of
competitiveness these five forces have
within an industry. 

Rivalry among competitors: 1) A big number of

competitors 2) Similar size ofcompetitors.

 Threat of potential entry: 1) The scale-basedlow

cost advantages. 2) The non-scale-based low cost
advantages.
 Bargaining
power of suppliers:1) Only few firms dominate the s
upply industry. 2)Suppliers provide unique,
differentiated products with few or no substitutes.
Bargaining power of buyers:
 1) A small number of buyers leads to strong bargai
ning power 2) The products do not clearly produce
cost savings or add value for buyers
Threat of substitutes: T1) Thesubstitutes have
superior quality and function when compared to
existing products. 2)The switching costs are low.
Strategic models
It is acting as supplier, manufacturer, engineering and also offering various services. Koreans call a big company owned by a family a “Chaebol”. With a growth of 5700% of revenues in 20 years, SE started as one of the biggest suppliers of international high-tech companies (Apple, Sony, IBM…) producing chip, battery and memory. After a few years of experience, SE extended its activities for the public market by producing TV,
screens, micro-waves and so on. SE is the world’s biggest producer of mobile phones and dominates the smartphones’ market.
It helps SE to adapt his products quicker and easier than its competitors. Also present in most of the countries, SE can compensate the risks of a failing market, balancing activities across the markets.
For SE they are the most attractive products (Gupta and Govindarajan, 2000Each country has different laws and it adds complexity in international trading. In fact, SE is spending a lot of money defending its interests, recalling products and paying fees. It causes, of course, damage to its brand image.
Yet the economic risk comes from forex markets. Korean Won is following the US Dollar, meaning that if the latter falls the revenues of SE drop. However, SE does not have the power to control this external risk and has to deal with it as all the international companies.
Choosing strategies

Global Digital & Social Media Strateg

y
Controlling and
Implementation
Strategy

In order to achieve this goal,

Samsung continuously improves
productivity by controlling variations
in various processes in a stable way.
To be successful in satisfying
business expectation, Samsung
selects and develops reliable
suppliers/subcontractors (hereinafter
referred to as ”suppliers”). Each
supplier’s performance is
continuously assessed and
periodically (typically once a year)
conducted in-depth audit in terms of
technology, quality, delivery, cost,
and finance.
 4P’s Mix

  Product - A tangible object or an intangible service that is mass produced ormanufactured on a large scale with a
specific volume of units. Intangible products areoften service based like the tourism industry & the hotel
industry. Typical examplesof a mass produced tangible object are the motor car and the disposable razor. A
lessobvious but ubiquitous mass produced service is a computer operating system.
  Price – The price is the amount a customer pays for the product.
It is determined by a number of factors including market share, competition, material costs, productidentity
and the customer's perceived value of the product. The business may increaseor decrease the price of product
if other stores have the same product.
  Place – Place represents the location where a product can be purchased. It is oftenreferred to as the distribution
channel. It can include any physical store as well asvirtual stores on the Internet.
  Promotion – Promotion represents all of the communications that a marketer mayuse in the marketplace.
Promotion has four distinct elements - advertising, publicrelations, word of mouth and point of sale. A certain
amount of crossover occurswhen promotion uses the four principal elements together, which is common in
film promotion. Advertising covers any communication that is paid for, from and cinemacommercials, radio
and Internet adverts through print media and billboards. One ofthe most notable means of promotion today is
the Promotional Product, as in usefulitems distributed to targeted audiences with no obligation attached.
 Samsung’s IM division is part of its DMC, Digital Media and
Communications unit. This division contains various products
such as the 3G phone and smart phone, telecommunications
systems, printers and computers. Recent and continuing
economic recession has forced the global IT industry to undergo
major change. As consequences, Samsung is strengthening its
soft power capacity by merging with promising new businesses
and proactively nurturing new businesses to become the new
leader of the IT industry.
The company belief is that change is constant and innovation is
critical to a company’s survival. Long term success in the future
consists in anticipating market needs and demands.
The competitive Supply chain Samsung is unusual among mobile
manufacturers in that it tends to use its own hardware
components to produce its handsets, rather than sourcing them
from third parties, as it actually has the resources to achieve this.
Approximately 70% of the major components used in Samsung
Electronics smartphones come from in-house production.
“Samsung could see that this is where the market was heading”
Vertical integration Another major part of the success of Samsung
can be explained through their vertical integration. Samsung
possesses the capability to manufacture most products in-house,
which enables them to react to market changes with more speed
than other manufacturers. For instance Samsung fabricates their
Based on the model, innovation strategy means how a own LCD-screens, has its own memory-plants and semi-conductor
company develops and deploys the resources, plants and fabricates its own camera sensors. Another major part
of the success of Samsung can be explained through their vertical
capabilities, and processes to meet the corporate integration. Samsung possesses the capability to manufacture
objectives. To realize Samsung’s future innovation most products in-house, which enables them to react to market
changes with more speed than other manufacturers. For instance
strategy to transit from ‘follower’ to be ‘leadership’ in Samsung fabricates their own LCD-screens, has its own memory-
5g technologies era, in the next sections, the gap plants and semi-conductor plants and fabricates its own
analyses are fulfilled for strategy, resources, camerasensors.

capabilities, and processes.

 YOU

THANK