Founded in 1939, Samsung is one of the world's largest electronics businesses, with 206 offices and

facilities in 68 countries. Lee Byung-chull began the company as an export company in Taegu, a tiny
city in Korea. Samsung has evolved to be one of the most successful electronic corporations, focusing
on digital media and appliances, memory, semiconductors, and system integration. Its profile is one
that many businesses would like to have. The corporation increased its product lines over time,
increasing its market share and revenues. The corporation is headquartered in Seoul and has a global
presence in over 100 countries. According to Samsung's 2011 profile, the company had a very
successful year, generating 220 million in revenue billion euro revenue, and employing 344 thousand
people all over the world. About Samsung

The company's strength and success stem from its creative and dependable products, brilliant staff and
employees, and responsible approach to business and global citizenship, all of which are altering the
world in whole new directions. The company concept is about making the world a better place and
improving people's lives in many ways. Their values are also essential variables that influence their
performance and play an important role in their business.
Their working philosophy, together with strong values, form the basis of their business principles,
which are depicted here.
About Samsung-Values & Philosophy

Samsung Profile

In addition to electronics, Samsung has roots in other industries. This corporation is made up of
various companies that are changing the way people live, from electronics to petrochemicals.

Demand–supply dynamics of Samsung

Demand
Because of its distinctiveness, novelty, quality, and affordability, Samsung is in high demand all
around the world. Samsung Electronics, a significant division of Samsung, dominates global markets
with its products. When compared to other subsidiaries, Samsung has focused on the provision of
these products because it generates a substantial percentage of revenues. Televisions, refrigerators,
cookers, speakers, hoofers, radios, and disc video players are among the electrical products. Because
these are domestic items, they are in high demand in every household. Furthermore, the low cost of
these goods has provided Samsung a competitive advantage in worldwide markets.

Because Samsung has divided products into numerous market groups based on consumer wants and
economic level, both high-end and low-end customers can acquire electronics items. Furthermore, cell
phones include products that are in high demand in worldwide marketplaces. The emergence of
Android technology, together with Samsung microprocessor technology, has spurred the production
of smartphones with enhanced capabilities. These smartphones are in high demand because people
need them to access the Internet and do a variety of other tasks. Smartphones are heavily used by
social media users, bloggers, and businesspeople to access the Internet.
Competition in demand of smartphones Samsung directly compete with apple but Samsung also
provide alternative item to apple so Samsung win the war when it comes to demand of products.
Apple employs iOS, a distinct mobile operating system, resulting in fresh alternative items. Samsung
produces complementary goods in the computer sector. Samsung makes hardware for smartphones
and PCs, but it relies on software from Google and Microsoft. Google's Android software is a
supplement to Samsung's smartphone hardware, whereas Windows is a supplement to computer
hardware. As a result, in the electronics, computer, and smartphone industries, Samsung has both
substitutes and complements.
Apple provides distinct software and operating systems, such as MacOS and iOS, for PCs and
smartphones, respectively, providing Samsung with stiff competition. Because of the rise of
smartphones, Samsung faces the most intense competition in the mobile market. Apple is Samsung's
main competitor because it produces the iPad and iPhone, which are distinct cell phones owing to
their operating system and design. Samsung Heavy Industries competes in the construction business
alongside Mitsubishi Heavy Industries, China Shipbuilding Corporation, and Hyundai Heavy
Industries, who are Samsung's closest competitors in the shipbuilding industry.
 Worldwide Mobile Phone Market Share

Demand Elasticity Based on Income

Samsung's products have positive income elasticity of demand, which means that their consumption
rises as customers' incomes rise. The type of income elasticity is high-income elasticity since they are
considered luxuries and comforts. High-income elasticity is the positive income elasticity of demand
in which an increase in income generates an increase in demand. According to this point of view,
because Samsung sells digital items, their demand is determined by the purchasing power of its
clients. To meet the needs and spending power of customers, Samsung offers both low-end and high-
end products.
Demand Price Elasticity
Because demand varies with market pricing, Samsung's products display price-elastic demand. Price
elasticity of demand is defined as the sensitivity of customers to changes in product prices. Because
Samsung operates in a highly competitive market, it employs a pricing strategy to outperform its
competitors. Customers readily change the character of the items they consume due to fierce
competition and the availability of substitute products, based on their purchasing power and options.

Suppliers
Partner firms are an essential asset for Samsung since they assist the company earn money and
operate smoothly. The company engages in a variety of operations that assist and collaborate with
their partner companies in order to establish a stronger and more competitive operating market. A
solid supplier network is one of the elements that place Samsung among the top six most successful
electronic firms in the world. Because of the critical role that suppliers play, Samsung has created the
"Seven Key Program for Mutual Growth," which aims to build ties between suppliers and the
company, foster strong collaborations, and boost mutual competitiveness.
 Worldwide Smartphone Sales to End Users

SAMSUNG's Supply Chain Competence

Samsung is unique among mobile makers in that it prefers to employ its own hardware components to
create its handsets rather than procuring them from third parties since it has the means to do so.
Approximately 70% of the primary components used in Samsung Electronics devices are
manufactured in-house. Samsung is much more than a smartphone manufacturer. It is a multinational
conglomerate, a manufacturer, and the world's largest chip manufacturer. It manufactures many of the
components used in its smartphones, providing it a cost edge and allowing it to be considerably more
flexible in terms of what and when it produces.

The company's supply chain is a hybrid of outsourcing and in-house production, which distinguishes
it from its main competitor, Apple, which is exclusively reliant on contract manufacturers. Samsung
has stated that their method will provide the corporation with a competitive advantage. Samsung
makes more than 90% of its goods in-house and only uses contractors for peripheral items like
components, feature phones, and handset cases.
Samsung believes that by taking this method, it will be able to respond swiftly to changing market
conditions. According to industry observers, Samsung's vertical integration gives the corporation a
competitive advantage. It creates and manufactures four of the most lucrative smartphone
components: application processors, DRAM, NAND flash, and screens, which account for around
two-thirds of a phone's bill of materials. Apple, on the other hand, relies on external partners, which
might cause delays and challenges despite having a broad, well-managed, and futuristic supply chain.
Samsung believes that by taking this method, it will be able to respond swiftly to changing market
conditions. According to industry observers, Samsung's vertical integration gives the corporation a
competitive advantage. It designs and manufactures four of the most valuable smartphone
components: application processors, DRAM, NAND flash, and screens, which account for around
two-thirds of a phone's bill of materials. Apple, on the other hand, relies on external partners, which
might cause delays and challenges despite having a broad, well-managed, and futuristic supply chain.

S AMSUNG ELECTRONICS VALUE CHAIN

The feature phone's rigid relationship with the mobile carrier

Samsung also has a significant distribution advantage. Samsung already had partnerships with
telecom carriers. It is quite difficult to get your goods into the hands of customers without the
assistance of carriers. They serve as your marketing helper, sales force, and customer service section.
Samsung already had partnerships with over 500 carriers worldwide. It claims that switching from
feature phones to smartphones was a simple matter for them.
Top management leadership
In March 2017, upper management directed the development of a smart phone to compete with the I-
phone. Samsung devoted all of their resources to releasing the Galaxy S on the same day as the
iPhone 4. When compared to last year and the R&D spending used to produce the Galaxy S, they
hired twice as many s/w experts.
Forecasting market transformation
The company pushed hard into smartphones, abandoning the lower-margin feature phones that other
manufacturers relied on to fund their businesses. "Samsung could sense where the market was
heading."
Integration vertical
Another important aspect of Samsung's success can be explained by their vertical integration.
Samsung has the ability to manufacture most products in-house, allowing them to respond to market
developments faster than other manufacturers. Samsung, for example, manufactures its own LCD
displays, has its own memory and semi-conductor factories, and manufactures its own photo sensors.