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    By Khairi Mohamed Omar Doctor of Business Administration

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    omishkh
    Samsung was founded in 1938 in Korea and initially operated as an exporter of goods. It entered manufacturing in the 1950s and electronics in the 1960s, establishing Samsung Electronics in 1969. Samsung Electronics is now a global leader in electronics, with key businesses in semiconductors, mobile devices, and home appliances. It has grown significantly since the 1990s through global expansion, new management strategies, and focusing on core markets like mobile and home multimedia. Samsung has strong brand recognition and market share in industries like mobile phones and TVs. It faces opportunities from growing customer demand but also threats of increasing competition from companies like Apple.

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    By Khairi Mohamed Omar Doctor of Business Administration

    Uploaded by

    omishkh
    145 views29 pages
    Samsung was founded in 1938 in Korea and initially operated as an exporter of goods. It entered manufacturing in the 1950s and electronics in the 1960s, establishing Samsung Electronics in 1969. Samsung Electronics is now a global leader in electronics, with key businesses in semiconductors, mobile devices, and home appliances. It has grown significantly since the 1990s through global expansion, new management strategies, and focusing on core markets like mobile and home multimedia. Samsung has strong brand recognition and market share in industries like mobile phones and TVs. It faces opportunities from growing customer demand but also threats of increasing competition from companies like Apple.

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    Samsung Electronics

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    Samsung was founded in 1938 in Korea and initially operated as an exporter of goods. It entered manufacturing in the 1950s and electronics in the 1960s, establishing Samsung Electronics in 1969. Samsung Electronics is now a global leader in electronics, with key businesses in semiconductors, mobile devices, and home appliances. It has grown significantly since the 1990s through global expansion, new management strategies, and focusing on core markets like mobile and home multimedia. Samsung has strong brand recognition and market share in industries like mobile phones and TVs. It faces opportunities from growing customer demand but also threats of increasing competition from companies like Apple.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    145 views29 pages

    By Khairi Mohamed Omar Doctor of Business Administration

    Uploaded by

    omishkh
    Samsung was founded in 1938 in Korea and initially operated as an exporter of goods. It entered manufacturing in the 1950s and electronics in the 1960s, establishing Samsung Electronics in 1969. Samsung Electronics is now a global leader in electronics, with key businesses in semiconductors, mobile devices, and home appliances. It has grown significantly since the 1990s through global expansion, new management strategies, and focusing on core markets like mobile and home multimedia. Samsung has strong brand recognition and market share in industries like mobile phones and TVs. It faces opportunities from growing customer demand but also threats of increasing competition from companies like Apple.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 29

    By Khairi Mohamed Omar Doctor Of Business Administration

    1 / 15

    Samsung Group
    Founded in 1938 exporter of dried fish, vegeta bles, and fruits flour mill and confectionery machines
    1950s Economic Stabilization

    Korean War Samsung lost all assets aimed to help rebuild Korean economy; entered the manufacturing industry (sugar , fabrics) became a leader in modern The headquarters of Samsung Sanghoein Daegu in the late 1930s business practices (recruiting from outside) 1960s Expansion of Key Industries
    entered electronics and chemical industries1969 established Samsung Electronics Co.Established in 1969 to manufacture black and white TV sets

    2 / 15

    3 / 15

    Samsung Electronics Established in January, 1969 1970s: Bet the future on electronics
    laid the groundwork for electronics in Korea helped the domestic economy grow paved the way for exports

    1980s: A more comprehensive electroni cs company


    established plants in Portugal and US established Semiconductor and Communicati on corporation began memory chip business

    Early 90s: Integration and Globalization Mid-Late 90s: Implementing new mana gement strategies New Millenium: Digital Vision

    The Samsung pavilion at Expo 2012

    4 / 15

    Business overview
    Visual Display Business Digital Appliances Business Mobile Communications Business IT Solutions Business Telecommunication Systems Business Digital Imaging Business Memory Business System LSI Business LED Business

    5 / 15

    Organization Structure

    4 main groups with 14 divisions

    Samsung Electronics

    Digital Media

    Information & Communications

    Semiconductors

    Home Appliances

    6 / 15

    Focus: 4 Core Markets

    Home Multimedia

    Mobile Multimedia

    Personal Multimedia

    Core Components

    7 / 15

    Vision:
    Samsung is dedicated to developing innovative technologies and efficient processes that create new markets, enrich people's lives, and continue to make Samsung a digital leader.

    Mission
    To devote their talent and technology to creating superior products and services that contribute to a better global society.

    8 / 15

    Mobile vendors market share 2011

    TV MARKET SHARE REPORT 2011

    Source: Displaybank

    9 / 15

    Samsung Electronics

    % Sales ($27B)

    % Operating Profit
    Digital Media 6% Telecommunications 12% Home Appliances 3%

    Semiconductors 40%

    Digital Media 29%

    Home Appliances 8%

    Telecommunications 23%

    Semiconductors 79%

    10 / 15

    11 / 15

    In 2011, achieved sales revenue of KRW 165 trillion with an operating income of KRW 16 trillion ,an increase of 6.7% in sales over 2010. Samsung financial structure remains robust, with 32.1% liability ratio, 75.7% capital adequacy ratio and KRW 10 trillion in cash after deducti ng outstanding loans.

    At the end of 2011, Samsung Electronics recorded a rise in share price of 11%, or KRW 1,058,000, compared to 2010, exceeding the marke t return. Shareholders were paid an interim dividend of KRW 500 per share and a year-end dividend of KRW 5,000 per share. Investment in facilities totaled KRW 20.9 trillion in 2011 and is expecte d to increase to KRW 24.2 trillion in 2012.
    Samsung Electronics ranked 17th on the Interbrand Best 100 Global Br ands 2011, with an estimated brand value of USD 23.4 billion, a 20% i ncrease over 2010.

    12 / 15

    Year 2011
    2006 2005 2004 2003 2002 2001 2000 1999

    Net sales 220.1


    158.9 140.9 121.7 101.7 116.8 98.7 119.5 93.5

    Total Assets

    Total liabilities

    Total stockholders Equity

    Net income

    343.7
    280.8 233.8 209.4 170.4 156.1 124.3 113.7 116.7

    202.6
    181.7 153 137.2 113.9 110.3 88.8 84.8 88.5

    141.1
    99.1 80.8 72.2 56.5 45.8 35.5 28.9 28.2

    21.2
    12.9 9.4 11.8 5.6 8.9 4.5 7.3 2.2

    13 / 15

    Financial Overview
    Revenue (billion Won) 37,869

    26,118 11,518
    16,190 15,875

    1994

    1995

    1996

    1999

    2011

    Stock Performance Samsung Electronics Co. Ltd. 005930 (KRX)


    1,336,000 KRW +6,000(0.45%)

    14 / 15

    Management & Employees


    222,000 employees in 2011 Development of employees strategic to success Making rounds encouraged as a key management practice

    15 / 15

    16 / 15

    Strengths
    Existing knowledge and experien ce of electronics market Strong global presence with stron g brand and customer base, in Q1 of 2012 according to Inter brand ,Global value of Samsungs brand is US$ 32,893 million comp are its competitor, Nokia US$ 21, 009 and Sony, which is US$ 9,11 1 million.

    17 / 15

    18 / 15

    Contd
    Well diversified and differentiated product line, to meet changing customer needs. Samsung electro nics has 4 business areas to cover customer elect ronic needs. Design with an attractive styling that catching the pulse of customer, as the result of the development of Samsungs new products that involve team of product designers.

    19 / 15

    Contd
    Market share: global mark et share of mobile phone i ncrease from 16% in 2011 TV market share report 20 % in 2011 . It is the biggest manufactu rer of liquid-crystal display panels with 23% share in 2005, increase to 26.2% in q1 of 2009.

    20 / 15

    Different perception on worth the price product on each person that difficult to cover. Not pro-active coming out with unique and leading model Focus on mass market instead of niche market Huge investment on Research & Development Samsung has a high commitment to corporate citizenship and environ mental initiatives, but this isnt broadly known by consumers, and that lack of awareness around its efforts may present a hurdle.
    2007 (Mill won) 2006 (Mill won) 2010 (Mill won) 2011(Mill won)

    weakness

    Sales

    98,507,817

    85,834,604

    9,895,079

    11,945,495

    Total R&D
    R&D/Sales

    6,073
    6.17 %

    5,714
    6.66%

    60,210
    6.10%

    620,666
    6.11%

    Consolidated Financial Statement years ended Dec 31, 2011 (audited report) . nowadays rate 1 US$ = 1,104.42004 WON

    21 / 15

    Opportunities
    Strong customer demand for innovative products & value-added features

    High % of younger population, which can be expand a new market now and in the future
    22 / 15

    Threats
    Increasing competition
    Source: Displaybank Mobile vendors market share 2011
    TV MARKET SHARE REPORT 2011

    23 / 15

    Increasing competition
    Mobile phone (Q3-2012)

    No 1 2 3 4 5 6 7 8 9 +8%$77,839 $m +129%$76,568 $m +8%$75,532 $m +26%$69,726 $m -2%$57,853 $m +2%$43,682 $m +13%$40,062 $m +12%$39,385 $m +40%$3m


    24 / 15

    Strong competition Samsung Electronics' faces strong competition from the other Korean industrial groups, such as Matsus hita, Micron Technology ,Sony and LG Group . and globally Nokia and Apple.

    25 / 15

    Current Challenges
    Abandon dependence on cheap commodity products Emphasis on goods developed in-house Rivals are outsourcing production and design Guide the company into the global electronics elite Cross-shareholding among affiliates Shift funds among subsidiaries Outside directors appointed by family

    26 / 15

    Conclusion
    The conclusions drawn from the SWOT analysis were that Samsungs strengths carry more weight than its weaknesses. If Samsung can properly exploited opportunities that exist, it will navigate the threats with no significant difficulties .

    27 / 15

    Recommendations & Suggestions


    Become leader of environmental initiatives to provide more environmental friendly electronic products Enhance their advertisement campaign to create greater brand awareness
    As a Corporate Social Responsibility Samsung needs to enhance their bran d image by indulging in more social causes because a good corporate not only takes from people but also returns to them. Improve After Sales Service because satisfaction helps in retaining custom ers Make their R&D more efficient

    28 / 15

    Thank you !
    29 / 15

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