Strategies used by samsung in the past

2. HISTORY
Samsung Electronics, was founded in 1969. Once known for
its televisions and alternative home appliances, Samsung
recently eclipsed heavyweights Sony Ericsson and Motorola
together of the most important mobile phone makers within
the world
Mr. B D Park is the President and CEO of Samsung South West Asia Operations and
Managing Director, Samsung India Electronics Ltd
He came to India as the Head of Mobile and IT Division in 2008 and has now been
elevated to the position of President & CEO, Samsung South West Asia operations

3. HISTORY
• Samsung Electronics commenced its operations in
India in December 1995 and is today a leading
provider of Consumer Electronics.
• Samsung India is the Regional Headquarters for
Samsung’s South West Asia operations, which
provides employment to over 8,000 employees with
around 6,000 employees being involved in R&D.
• In 2010, Samsung India achieved a sales turnover of
US$3.5 billion.

4. AMOUNTS IN BILLIONS WON DOLLARS EUROS
Net Sales* 25254,561 220.1 165.9
Total Assets 391,391.9 3343.7 25258.7
Total Liabilitiesotal
Liabilities
230,688.5 202.6 152.5
Total Stockholder’s
EquityStockholder's
Equity
160,693.5 141.1 106.2
Net Income*Net Income* 24,497.9 21.2 16.0

5. Awards
a] Mar 2010: Samsung won 3 awards at the NDTV Tech Life Awards 2010 to honor the year’s
coolest gadgets and the best technological innovations.
{Best Budget Mobile of the Year: Samsung Corby}
b] Mar 2011: Samsung won 3 much coveted awards at the NDTV Gadget Guru Awards 2011
that honor innovation and products that truly make a difference in the world of
technology. {Smartphone of the Year - Galaxy }
c] Sep 2011: While Samsung ranked 27th in Economic Times’ annual Survey on the Top 100
trusted brands in India, it emerged as the most Trusted Consumer Durable brand in India,
while maintaining its position as No. 2 company in the mobile phone category.
d] Dec 2011: Samsung emerged as the Most Aspirational Brand of the Year 2011 in the Best
Brands Survey 2011 conducted by Financial Express and market research agency Synovate.
Samsung was ranked high for its 'Flaunt Factor' linked to its attributes like quality, brand
reputation and imagery

6. Best selling phone of Samsung…
Samsung Ace Duos

7. GROWTH & EXPANSION
STRATEGY
INTERNAL EXTERNAL
DIVERSIFICATION INTENSIFICATION
MERGERS
JOINT
VENTURES
AMALGAMATIONS
ACQUISITIONS

8. INTERNAL GROWTH STRATEGY
DIVERSIFICATION
• VERTICAL DIVERSIFICATION
– BACKWARD INTEGRATION
– FORWARD INTEGRATION
• HORIZONTAL DIVERSIFICATION
• CONCENTRIC DIVERSIFICATION
• CONGLOMERATE DIVERSIFICATION

9. VERTICAL DIVERSIFICATION
• BACKWARD INTEGRATION
Samsung Electronics manufactures chips, terminals, vials,
memory cards, etc., along with manufacturing handsets
• FORWARD INTEGRATION
Samsung Electronics would earlier tie up with malls and
shopping complexes to sell mobile phones but now there
are independent retail outlets in Mumbai, New Delhi, etc.
Company moves one step backward
from it’s current line of business activity
Company moves one step ahead of it’s
current line of business activity

10. • HORIZONTAL DIVERSIFICATION
The technology of a Samsung desktop computer and a
Samsung mobile phone gave rise to Samsung Galaxy
Tablets
• CONCENTRIC DIVERSIFICATION
Company enters into a new line of business that is
closely related with existing line of business
through processes, technology, etc.
Diversification indirectly related to existing
business line

11. • CONGLOMERATE DIVERSIFICATION
Diversification totally unrelated to existing
business line
For example: Samsung Refrigerators Mobile Phones

12. INTENSIFICATION
 MARKET PENETRATION
 MARKET DEVELOPMENT
 PRODUCT DEVELOPMENT

13. MARKET PENETRATION &
DEVELOPMENT
Brand Ambassador: Aamir Khan
Providing free content on the mobile by
collaborating with the copyright owners of
Bollywood movies. For e.g. Ghajini, Love Aaj Kal
Promotional offers like free entry to
the show of ‘10 ka dum’
Organizing contests like ‘Samsung
Mobile Karaoke Festival’
Opening the Samsung Fun Club for
better customer relationships

14. SAMSUNG APPOINTS AAMIR KHAN AS
IT’S BRAND AMBASSADOR FOR MOBILE
PHONES
on Mar 18, 2008

15. Free online software updates, tutorials
and customer service
Highlights the innovative features of
its products through a combination of
innovative advertising and branding
Established many Samsung Mobile
Stores to increase the visibility of the
brand

18. PRODUCT DEVELOPMENT
GALAXY NOTE 10.1
15th AUGUST, 2012
SAMSUNG & SPRINT COLLABORATED
ECO- FRIENDLY PHONE (SPH-M910)

19. Growth
Strategy
External:
Mergers, Acquisitions, Joint
Ventures & Amalgamations

20.  MERGERS:
Merger is an absorption of one or more
companies by a single existing company.
Eg: Samsung Electronics merged its display
company with its mobile company.

21.  ACQUISITIONS:
A corporate action in which a
company buys most, if not all, of the
target company's ownership stakes in
order to assume control of the target
firm.
Eg: Samsung is in talks to acquire a
mobile-related tech company.

22.  JOINT VENTURE:
A cooperative enterprises entered into
by two or more business entities. This
creates:
 Separate corporation
 Partnership
 Limited liability company
Eg: Samsung and Corning
announced a new joint
venture .

23.  AMALGAMATION:
Amalgamation is a union of two or
more companies, made with an
intention to form a new company.

26. Focus on
customers
Hybrid hard drive
Targets youth
Manufactures
everything by itself
Creates innovative
products
Designs not user
friendly
Diversification in
products
Costly promotional
activities
Lacks fresh ideas
• Strengths • Weakness

27. Opportunities of Samsung
 Distinguish its service from competitors.
 Offer product variations
 Demand for cell phones driven by the service
providers or carriers
 Lowering the price of a phone by just $20 in
many countries could increase its affordability
by 43%.(As per a study report)

28. Threats of Samsung
 Motorola’s dominance in the U.S, Nokia’s
popularity in the European market, controlling
more than half of the world market
 Aggressive competitors, including Sony, Ericsson,
and Siemens eating into its share.
 Current economic climate poses threat to
Samsung electronics
 Increasing raw material prices

29. STABILITY STRATEGY
Aims At Stable Growth

30. A firm following this strategy focuses its
resources on a single product, in a single market,
using one tested technology to ensure profitable
growth. Companies adopt this strategy as it is
less risky and does not demand scarce additional
resources.

31. Features
Performance
Profit
Risk factor
Resources
Environment
Expertise
Market share
Market Philosophy

32. • EXAMPLE: Rolls Royce
Rolls Royce follows the strategy of
focusing on the single market. It
manufactures only luxurious car and
caters to higher income class.

33. Application of stability strategy
on samsung
• Rapid growth
• Diversification
• Risk taking power
• Various other factors
Samsung does not apply to stability strategy.

34. What is modernization strategy?
Technology
Innovation/improvement
Reduction in cost
R & D

35. Samsung S
Some of the
features are:
 Location
 Wireless & networks
 Wi-Fi hotspot
 Locale on text
 Menu bar
 Keyboard
 Notification section

36. Exclusive app
Super LED screen
Voice recognition
Voice control
High speed
Respond to gestures

37. Meaning
What does it include?
Advantages
Economical
Efficiency
Less financial risk

38. RETRENCHMENT STRATEGY…
What is retrenchment?
“To cut down or reduce something”
“Tighten one’s belt”
“Use resources more carefully”

40. Methods of retrenchment
• Significant reduction in
output & capacity
• Significant job losses
• Product or market
withdrawals
• Disposal of business units
• Outsourcing key business
functions
• De-mergers
Downsides of “downsizing”
• Motivation and morale for
those left behind usually
worsens
• Potentially damaging
effects on productivity,
innovation and staff
retention
• Little evidence that
downsizing actually
improves profitability

41. Samsung at the crossroads
August 24 2007, (Business 2.0 Magazine)
One day in the not-so-far-off past, Kun-Hee Lee, chairman of
Samsung Electronics, sent each of his closest friends and key
employees one of the company's newest wireless phones as a
New Year's present.
It was a nice thought, but it backfired. The things just didn't work
properly, and polite complaints started pouring in. Mortified, Lee
rushed to the company's factory in the South Korean city of Gumi,
where most of Samsung's handsets are made.
He gathered the employees in the courtyard, made a giant heap
of the factory's entire inventory of wireless phones ( more than $15
million worth ) and ordered it smashed to pieces and set on fire.
The incineration at Gumi marked a turning point in Samsung's
turbulent history. Before 1995 the company was known primarily as
a purveyor of cheap knockoff electronics. Afterward, the
emphasis shifted dramatically.

42. Samsung, LG Join Job-Sharing Drive
Feb. 25th 2009. The Korea times.
Samsung Group and LG Group are joining a "job-sharing" drive aimed at
minimizing layoffs through wage cuts.
Korea's jobless rate rose to 3.6 percent in January with 103,000 jobs lost
on a year-to-year basis.
For Samsung, wage cuts for new recruits will be a maximum 15 percent.
However, Samsung may lower its number of new hires this year from
3,500 in the first half of last year.
LG Group will also cut the wages of new employees by 15 percent.
"We will present more detailed measures for job-sharing," a group
spokesman said.
Big companies are set to slash their capital spending this year amid a
gloomy outlook in business conditions.
The Korean economy, Asia's fourth-biggest, is forecast to fall into its first
"recession" in 11 years, directly hit by the global economic turmoil.