International Business BUSN 407

Fall-2015

Instructor: Dr. Mohammed Rizwan Alam

Amal Al Sharabi
ID: S0000000907

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Table of Contents
3............. ................................ ................................ ................................ Introduction
4............. ................................ Strategies of Samsung electronics/ Alternatives strategies
4............ ................................ ................................ ................................ Swot analysis
5................. ................................ ................................ ................................ Strengths
5............. ................................ ................................ ................................ Weaknesses
6........... ................................ ................................ ................................ Opportunities
6.................... ................................ ................................ ................................ Threats
7......................... ................................ ................................ Marketing mix of Samsung
7.................... ................................ ................................ ................................ Product
8........................ ................................ ................................ ................................ Place
8........................ ................................ ................................ ................................ Price
8................ ................................ ................................ ................................ Promotion
8........... ................................ ................................ ................................ Below the line
8................................... ................................ ................................ Recommendations:
9................ ................................ ................................ ................................ Conclusion
9............. ................................ ................................ ................................ Bibliography

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Introduction
Samsung Electronics Co., Ltd, is a global leader in digital media and digital
convergence technologies, ?Samsung is the world largest company having the highest
brand value. Samsung is operating in more than 50 countries in the world. The head
office of Samsung is in the capital of Seoul, South Korea. The chairman of the
Samsung group is Mr. KUN HEE LEE. The name of Samsung literally means tristar
in Korean. Nowadays Samsung invests in the buildings foundation and concrete
sector under the Samsung brand. The word Samsung electronics is written in white on
a blue background. It represents stability, reliability and warmth. Samsung
manufacturers electronic goods such as TVS, computers, notebooks, washing
machines, microwaves, usb devices mobiles, lcds, cameras, cd players etc. The other
production of Samsung groups is in construction sector such as in real estate but it
specializes in electronic log ,electronic pipe , tube pipe, telephone log (which all are
made by concrete and iron).Samsung is the highest brand having the medium cost
value. Most of the Samsung electronic company had been moved in china and other
Asian countries for example Vietnam, the Philippines, and India. The reasons behind
its transfer were low labor and raw materials costs. They said Asian countries are way
much cheaper than US, Canada and UK.

The brand vision of Samsung is to totally different and unique from other brands like:
Sony, LG and Panasonic. Leading the digital convergence revolution is the vision of
the Samsung brand. This case study is totally based on the electronics side of the
Samsung brand. The word Samsung is written in Korean language.

Samsung is the third largest South Korean company which was established in 1969 as
the flagship company of the Samsung group or Samsung corporation. Samsung
achieved fast growth through exports. Samsung decided to venture into the television
market. It started production of black and white television sets for the local markets in
1972. However, Samsung realized that it can become a global brand. They searched
and analyzed the global market opportunities and challenges with the help of
customers and employees feedbacks. Samsung decided to change the concept of its
brand .It had to change the perceptions of consumer with a new brand image. During
the Olympics in Seoul, South Korea in 1988, Samsung decided to become an official
sponsor for the wireless technology in order to associate its image with global sports
brand. Through the help of promotion and physical evidence Samsung is currently

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recognized as a worldwide brand. Every country especially the member of Olympic
games then, now knows about the brand. In this way, Samsung was successful in
changing the concept of its brand image and now has a good customer base.
Nowadays, Samsung has 25 production base worldwide and more than fifty sales
subsidiaries in nearly about 50 countries. Their global strategy involves eight main
regions Southeast Asia, Central Asia, Africa, and Middle East, China, North America,
Europe and Latin America.

Strategies of Samsung electronics/ Alternatives strategies

Strategy is long term planning to achieve the goals. It is a roadmap of future actions.
After market researching the global market, Samsung gets lots of feedback from its
customer and employees. Samsung needs to improve its products promotional
activities, customer service and online business since it is very important to satisfy its
customers. Samsung strategic growth plan aims to fulfill the needs and wants of
customers, expectations of employees and other stakeholders. According to its
strategic plans, it requires to focus all its resources on increasing technological
innovation and market share growth but the industry's infrastructure and labor skills at
that moment were too unfavorable for Samsung to achieve these and become
competitive in the world market. In order to attain this, Samsung reinvented itself by
primarily keeping on tract with its customer's needs and wants.

Swot analysis
Swot analysis is the most important and first stage of planning. It is a feedback
mechanism to make new strategies for any company. Strengths, Weaknesses,
Opportunities and Threats are the four components of a swot analysis. Weaknesses
and Strengths are correlated and examines the internal part of the business analysis
whereas Opportunities and Threats deals with the external environment of business
operation.

Weaknesses and strengths refer to aspect of marketing, finance, manufacturing or

organizational structure. Swot analysis helps clarifies the objectives of the company
Samsung electronics key strength is its diversity in product, good brand image.
Samsung electronics is a part of the samsung group. They are one of the leading
consumer electronics brand in the world. The Headquarter of Samsung is in Seoul,
South Korea and employs about 150,000 people. The company recorded revenues of
KRW 121, 294,319 million or ? 75,981 million during the financial year (FY) ended
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December 2008, which is an increase of 23.1% than FY 2007. Unfortunately, the
operating profit of the company presents a different picture even though its sales
produce double digit growth rate. It is only KRW 6,031,863 million or ?3778 million
during FY2008, which is a decrease of 25.5% than FY 2007.

Strengths
Samsung's electronic strengths are:

1. A strong global brand. It is the leading consumers electronics brand in the

world. The Quality is good .They promise the same quality and range
worldwide.
2. Its vision is leading the digital convergence resolutions. It means they want to
be the leader of the electronic items worldwide in order to get the goodwill as
well.
3. A strong concept. They are offering good design , good quality as well
medium prices
4. Diversity product. Samsungs products has based on diversity . It means they
manufacture same items in different way for the different kind of people for
different countries.
5. Technology. Voice call is clear and reckoned by customers as having a good
value for their money; and the design of samsung's electronics technology is
very high. We can order right quality at the right price.
6. Good reputation among customers.

Weaknesses
Weakness for samsung are:

1. The global scale of Samsung's operation means it has serious implication on

its management system. To control a business in just one location is easy but
for a worldwide operation is complicated and problematic.
2. Base on the double digit decrease of its operating profit against the other year,
it indicates that its operating cost had also went up by more than 20%. Its
operation had not been efficient enough to yield a good profit.

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 3. Samsung as a South Korean company is reckoned by most customer as only
next to any Japanese firm since Japan is always considered as a high tech
country in the world.

Opportunities
A business uses its strengths to take advantage of the opportunities that arise,
opportunities for samsung are :

1. Increases mobile and computer market

2. International expansion.
3. Arrival of new technologies
4. A strong customer demand and good design.

Threats
If any company is aware of possible external threats, It can be addressed by
generating new ideas to counter it or can use a particular strength to defend against
threats in the market . The threats on Samsung are as follows:

1. Changing social trends: It is trying to build on line help to guide customer to a

more comfortable life. The online business and website promotion entails cost
and any change introduce needs improving staff competencies by training.
2. Strong competition: Samsung faces strong competition from the other Korean
company such as LG, KTF, SK aside from its foreign competitors like Sony
Panasonic.
3. New regulations and increased trade barrier.

Samsung has worldwide market. Its marketing benefit and selling percentage has
depends on PESTEL. Different country has different culture ,different environment,
different economic condition, political situation, social factors of market and different
policy. In European country samsung electronic market is highly increases in these
day then the other developing countries such as south Asian countries, middle east
and African countries. samsung extend sponsorship of Olympic games until
2016.samsung also sponsorship with English biggest football club Chelsea. They have
sponsor other sports and clubs also. They wants to their image and brand value has
been carrying out worldwide market like Olympic team.

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Marketing mix of Samsung
The marketing mix is the tools available to a business to gain the reaction to its target
market in relation to its marketing objectives .Marketing mix is the combination of
7ps .It means price, place ,promotion, product, people, process and physical evidence
and right product , right place, right price, right time and right way to be the elements
of marketing mix. It's manufactures variety of designs which is directly concern to
customer satisfaction. It's quality is high ,packaging branding and having enough
warranties. Samsung technology is high, good value. Samsung product electronic
goods such as TVS, Computer, notebook, washing machine, microwave ,usb device,
mobile, I port, lcd, camera, cd player etc. The other productions of samsung groups on
concret sector kind of electronics goods such as ,electronic log ,electronic pipe, tube
pipe, telephone log(which all are made by concret and iron).Samsung is the highest
brand having the reasonable price.

Samsungs price is neither high nor low, It means the price is affordable. Samsung
offers schemes for all new products ,In greatest festivals, new years and its
anniversary ,which helps to motivated psychologically to customer. Sumsung has
already started its online business which help to extend global marketing . Using
media , posters and news papers it has extended its marketing . The selection of the
location is not best because it is not easy to find out its store in every city.

But every customer can buy its product easily because of the technology, that has
used by sumsung the recent years .Samsung clarify its vision as well as mission of
marketing strategy by the following clarifications of four ps.

Product

Samsung's product range worldwide included CTVs, audio and video

products,
Information technology products, mobile phones and home appliances. Its
product range covered all the categories in the consumer electronics and home
appliances.

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Place

Now a day samsung brands have 25 production base worldwide and more then
fifty sales subsidiaries in near about 50 countries. Their global strategy
involves eight main regions.
Samsung also sells its product through independent retailers.
Customers can see and handle products they are considering buying.

Price

Pricing also seemed to have played a significant role in Samsung's success.

Samsung looking for its services accessible to as many people as possible.
It offers a lot of pricing structures to suit different customers groups.
The price plans are available monthly basis as well as prepay option.

Promotion

Advertising on TV, in magazines and in other media outlets reaches large

audiences and spreads the brand image and the message very effectively. This
is also known as above the line promotion.

Below the line

Every store has special offers, promotions and print of sale posters to attract
those inside the store to buy.
The company develop better relations with the public in order to explain new
products.

Recommendations:
To control standard and quality could be quite hard .The global business is supply
chain offering consumer views of it's products. It is also important for recruitment and
selection process

1. They should be increase mobile and computer markets.

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 2. They should increase international expansion.
3. They should increase online business and give more details.
4. The size and scale of global business: It should be increase the size and scale
of the global business of Samsung's electronic brands.

Conclusion
Samsung is a famous global company. It has manufactured electronics goods and
other concrete goods. It is a well known brand because of its service, excellent
employees, Innovative reliable product. A responsible approach to business and
global citizenship and globalization with partners and customers. Samsung is taking
the world in progressive direction for new generations. The mission of samsung is to
be the best Digital electronic company. It complies with low and ethical standard
cares environmental health and safety, Maintain a clean organized culture value and
respect to customer share holders ,stakeholders , employees and socially responsible
co- operative citizens. So It is trying to be the best brand in the field of electronics
materials in the world by improving its size , price quality, capacity or power of the
devices.

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