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SAMSUNG

SAMSUNG. Prepared by: Xiaomeng Li Jordan Binstock Zuotao Liu Amy Thompson. Company introduction. Founded in 1938 Chairman Byung-Chull Lee 30,000 won = $25. What does it do at first?. Sell dried Korean fish, vegetables &fruit. After a decade.

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SAMSUNG

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  1. SAMSUNG Prepared by: Xiaomeng Li Jordan Binstock Zuotao Liu Amy Thompson

  2. Company introduction • Founded in 1938 • Chairman Byung-Chull Lee • 30,000 won = $25

  3. What does it do at first? Sell dried Korean fish, vegetables &fruit

  4. After a decade • Flour mills & confectionary machine---Samsung Mall • 1969 Samsung Electronic

  5. Historical events • 1992 British color TV factory first time to go international! • 1994 first subsidiary company in Japan • 1995 headquarters in US, Europe & China

  6. Historical events • 2005 brand value $15 billion! world’s 20th 1st in electronic products

  7. By now • 30 subsidiary companies • 300 overseas offices in 76 countries • Samsung Corporation shoulders 21% of South Korean’s export

  8. Tough time • Brand image: • Before 1993, low price & low quality • 1994 microwave ovens piled over sale!

  9. Solution • Chairman Kun Hee Lee 1. determination: crunch and burn 15000 cell phones 2. top-down strategy 3. Wal-Mart vs. Sears

  10. Go international • Factories go to low cost countries • Research center go to Europe

  11. Products • Cell phones • TV video & Audio • Computer • Home appliance

  12. Competition • Variety of competing sectors • Cell phone market is most competitive • 5 Main producers of cell phones • Nokia • Motorola • Samsung • Sony Ericsson • LG

  13. Nokia • Located in Finland • #1 in Worldwide sales • 34.97% Market Share • 348 million units in 2006 • +2.27% Change from 2005

  14. Motorola • US Corporation • #2 in Worldwide sales • 21.85% market share • 217.4 million units sold in 2006 • +3.85% Change from 2005

  15. Samsung • South Korean • #3 in Worldwide sales • 11.86% market share • 118 million units sold in 2006 • -0.84% Change from 2005

  16. Sony Ericsson • Joint venture • #4 in Worldwide sales • 7.49% market share • 74.5 million units sold in 2006 • +1.19% Change from 2005

  17. LG • Korean based • #5 in Worldwide sales • 6.67% market share • 66.4 million units sold in 2006 • -0.13% Change from 2005

  18. Market Shares

  19. Competition Suggestions • Expand Research & Development • Possible Mergers / Joint Ventures • Globalize Market Research

  20. Global Market

  21. Introduction • Operate in almost 100 countries. • Has 229,000 employees around the world • Samsung means “three stars” . • Slogan: imagine the possibilities

  22. Introduction • Be an international corporation since 1990. • Samsung is still too weak to compete effectively. • Got support from the Korean government.

  23. Introduction • Focuses on five business areas : • Digital Media • Telecommunication Network • Digital Appliance • Semiconductor • LCD

  24. Chinese Market • China is the largest developing country. • China is also the largest population in the world. • 50,000 employees in China, Korean employees are less than 1,000.

  25. Chinese Market • Produced low-end TV at the beginning. • Had no market. Quit at last. • Produce superb quality product. • Began to advance the digital era.

  26. Chinese Market • Market and brand centre in China. • Achieve 40 billion US dollars in 2010. • Three advantages • China is close to Korea. • Has a good management system. • Get many supports from the corporation.

  27. American Market • Become the market leader in 2006. • Captured the number one market share position for digital televisions. • Samsung’s overall unit sales have grown 54 percent in 2006.

  28. American Market • Four digital TV categories: • LCD • Plasma • Micro-display • Flat Tube

  29. American Market • Samsung became America's choice for digital TVs in 2006. • Had a significant lead on the competition. • Samsung is able to bring price-competitive televisions to market while maintaining their profitability.

  30. Sum-up • Continue to expand worldwide manufacturing and sale operations. • Ensure high customer satisfaction. • Lead the way in the digital era with its superb quality and top-notch management. • Continue to satisfy customers and shareholders.

  31. Industry Analysis • Three Types of Industries • Consumer Electronics • Household Appliances • Telecommunication Devices

  32. Consumer Electronics • Struggles: • Broad range of products • Rapidly evolving products • Changes in demand

  33. Household Appliances • Consumer Differences Among Cultures • Under-developed Countries • Developing Countries • Developed Countries

  34. Telecommunication Devices • Three Types of Consumers • First-time Buyers • Upgraders • Repeat Buyers

  35. CONCLUSION

  36. THE ENDTHANK YOU!

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