Samsung is one of the world’s largest producers of electronic devices

1. SAMSUNG

NIKITANOVA ELIZAVETA, 1390 GROUP

2. WHY TO CHOOSE THIS COMPANY?

Samsung is one of the world’s largest producers of electronic devices,
it constantly brings innovations to the market.

3. GENERAL INFORMATION

Samsung Electronics Co., Ltd. engages in the manufacturing and selling of
electronics and computer peripherals. The company operates through following
business divisions: Consumer Electronics, Information Technology & Mobile
Communications and Device Solutions. The Consumer Electronics business
division provides cable television, monitor, printer, air-conditioners, refrigerators,
washing machines and medical devices. The Information Technology & Mobile
Communications business division offers handheld products, communication
systems, computers and digital cameras. The Device Solutions business division
comprises of memory, system large scale integrated circuit and light emitting
diode. The company was founded on January 13, 1969 and is headquartered in
Suwon, South Korea.

4. PRODUCT LIFECYCLE OF THE COMPANY

Present time:
Flagship Galaxy Note series
Innovative Galaxy Fold
And other up-to-time popular
devices

5. QUALITY MANAGEMENT

High standard and quality control
Continuous improvement of products
Proactive approach
Environmental focus

6. ANSOFF MATRIX

7. ANSOFF MATRIX

Market Penetration
In growing markets, Samsung launches its market penetration strategy to increase its existing market share. The company can adopt aggressive marketing and
promotions, offer competitive pricing etc. to eat into its competitors market share.
For instance, Samsung drops the prices of its smartphones a few months before the launch of its next model.
Market Development
The market development strategy involves Samsung targeting its existing products and services into newer market segments or geographical regions.
Samsung has used and still uses a combination of different approaches to enter new markets, which include direct export, licensing, joint-venture, mergers and
acquisitions and direct foreign investment.
Product Development
Samsung uses a combination of enhancing its existing products to completely launching a new product under its brand name.
For instance, Samsung is a dominant name in the smartphone industry. Samsung has developed different smartphones, for different market segments, and
launches these new products in its existing markets.
Diversification
The extensive product portfolio of Samsung which includes apparels, automotive, solid state drives, telecommunications equipment, chemicals, consumer
electronics, electronic equipment, medical equipment, home appliances, semiconductors and electronic components speaks volumes about Samsung’s
diversification strategy.

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10. SOCIAL IMPOVEMENT

The Device Solutions Division of Samsung Electronics gives hope to socially
disadvantaged individuals, working with others to improve lives globally and in
local communities, and experiencing the joy of sharing through employees’
voluntary donations of their money and time and their participation in activities
such as educating children and adolescents, creating jobs for the less fortunate,
providing living support for low-income groups, granting wishes to children with
hard-to-treat diseases, and providing health and medical services and cultural
events in underdeveloped regions.

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12. LIST OF COMPETITORS

13. COMPETITIVENESS

Samsung Group’s generic competitive strategy and intensive growth strategies
are observable in product design, marketing strategies, and the business
organizational development direction of Samsung Electronics and other
subsidiaries. Differentiation plays a major role in building the company’s
competitive advantage, although other generic competitive strategies, such as
cost leadership and focus strategies, also support the technology enterprise and
its competitiveness. Samsung’s operations management strategies and
administration must align with the differentiation generic strategy and the
intensive growth strategies to support business growth while competing against
Apple, Google, Sony, and other aggressive multinational companies.

14. SAMSUNG’S COMPETITIVE ADVANTAGES

15. THE COMPARISON OF TWO COMPANIES – MOBILE MARKET

Apple makes money on iPhones and MacBooks, more than anything else. Samsung looks
beautiful. It has unique mobile phone design. Samsung mobile phones are more emphasis on
changing the appearance of the perfect combination of utility functions within which sits on a
large number of loyal consumers. The phones outsell the laptops 5-to-1, but the massive
margins on the latter make the race more or less a wash. Samsung’s profit center is more
evident. Its mobile phones that are responsible for 60% of the company’s earnings. Samsung
might beat Apple on market share for mobile phones, but Apple happily sells fewer phones than
Samsung given that it means netting close to $400 profit per unit. That being said, other
departments have begun to account for a greater portion of Samsung’s profits in recent
quarters.
Apple is so big that it can live comfortably without Samsung. Similarly, Samsung doesn’t need to
be an Apple vendor to flourish. As competitors in the marketplace, they’ve put life-changing
electronics in the hands of hundreds of millions. As competitors in the halls of justice, they’ve
spent enormous sums of money to assert their dominance. Regardless of the legal outcome(s),
it’s a safe bet that both companies will continue to innovate for decades more.

16. CONCLUSION OF COMPETITIVE STAGE

The stability of the company has been observed by the top management by
applying corporate governance points and strategic approach that best suits the
industry without gambling at ideas. The decision making process is adhered to
for the growth and progress to be ascertained. The key official settled down and
scrutinizes the ideas by brainstorming unlike other competitors who rush to
implement a mere assumption. There is due consideration of the step to be put
in the operations of the organization given that it may lead to profit or loss, The
aim of the company has been profit maximization hence this has been achieved
by adopting a clear scope of work.

17. Stages of product development

18. STAGES OF MANAGEMENT

Started as a grocery trading store in South Korea (30s)
Got business support by the chaebol (60s)
Entered the market as Samsung Elictronics and creating
subsidiaries (70s)
Rebranding and major company transformation (90s)
Launched first MP3 mobile phone and headed digital
revolution (00s)
Number one TV producer (00s)
Innovations and becoming the largest technological
company (now)

19. BRIDGES’ TRANSITION MODEL ACCORDING ELOP

20. ACTUAL BRIDGES’ TRANSITION MODEL

21. WAYS TO CHANGE EXAMPLES

Xiomi
Huawei
WAYS TO CHANGE EXAMPLES
More powerful software
More available accessories
More originality
More battery stability
More stable camera
Heating consistance
New brand strategy
UI optimization

22. ADKAR MODEL

Awareness: Need to have long term thinking rather than short term, Date Driver
Decision making is required to get the list of expectations and a clear vision
Desire: Searching a new (innovative) market to reestablish the brand
Knowledge: Samsung need to lift their platform with strategic alliance with
other AI companies
Ability: Create more developer tools, making it easier for application developers
to leverage in global scale.
Reinforcement: Mobile progress, encourage and direct/motivate employees.

23. MCKINSEY MODEL

Strategy. Samsung business strategy is mainly based on
market readership, i.e. replicating innovations made by
market leaders in terms of introducing new products
and/or adding innovative features to new products.
Structure. Samsung organizational structure is divisional and
the company is divided into three divisions on the basis of
products: IT & Mobile Communications (IM), Consumer
Electronics (CE), and Device Solutions (DS).
Systems. Samsung’s long-term growth prospects depend on
smooth running of a wide range of systems. These include
employee recruitment and selection system, team
development and orientation system, transaction processing
systems, customer relationship management system, business
intelligence system, knowledge management system and
others.

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Shared values.
Samsung strategic level management attempts to promote the values ofdedication to work, creativity and
industriousness among the workforce at all levels. Samsung’s shared values are well aligned with its corporate
mission “to inspire the world with innovative technologies, products and designs that enrich people’s lives and
contribute to a socially responsible, suitable future.”
Skills.
The range of skills and
competencies required to be
successful at Samsung is vast
andincludes interpersonal skills,
teamwork, ability to work under
pressure, customer
orientation,creativity and analytical
thinking.
Staff.
Samsung employs 325,677 people
in 80 countries, including 1921
designers.
The global electronics company
maintains “Next Generation
Leaders” program for employee
training
and development and the Global
Mobility Program to provide on-thejob training for global employees.
Style.
Samsung leadership style has
been traditionally paternistic and
autocratic, reflecting relevant
features of national cultures of its
home country, South Korea. Such
a leadership style may have
perceived advantages such as a
high level of employee obedience
and faster implementations of
decisions.

25. SAMSUNG LEADERSHIP STRUCTURE

Each manager or departmental head is responsible for his area and is expected to work for the good of the entire firm.

26. STRATEGIC ISSUES

Heavily dependent on the American Markets – It is estimated that both Apple and Samsung sold
at least 70.8% of smartphones in the USA. While Samsung has diversified its resources and
expanded its operations in Asia, it is still heavily dependent on the American markets. The
American economy is very unpredictable and another recession could put Samsung’s revenues
in jeopardy and can damage its operational resources. That’s why Samsung needs to involve
itself into the Asian and European markets to ensure sustainability and avoid potential failures if
the US economy ever collapses.
The decline in Smartphone Sales – Samsung has been experiencing a decline in smartphone
sales since 2017. A similar trend was seen in China due to the price sensitivity of the Chinese
market. They dump a lot of those products in the Indian market at a lower cost which harms the
Samsung sales. Samsung has tried to shift more focus in India, but that strategy did not produce
substantial results for the company.

27. CURRENT MARKETS AND TECHNOLOGICAL INNOVATION

Has a wide range of products such as mobile phones, camera, home appliance
and other devices.
Enjoys advantage over a few electronic items by introducing advanced features
in LCD, refrigerator, Air Conditioner etc.
Holds significant market share in many product Categories.
Does R&D to keep innovating its products and to be ahead from its competitors
and to be first in the market with new range of products (at Samsung Strategy
and Innovation Center they drive global innovation for Samsung in diverse fields
such as artificial intelligence, digital health, the Internet of Things, autonomous
mobility, data center infrastructure, security, privacy and more)

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