1. CLASS 1
GROUP 8
LE NHAT HUY 295896
VO THI LE HUYEN 295929
NGUYEN DOAN DOAN HANH 295904
2.
3. Table of Contents
I. Executive
Introduction
Mission statement
Vision
Objectives
Strategies
II. Product Information
Products Introduction
Competitors
III. Methods
SWOT Analysis
Competitive Profile Matrix (CPM)
External Factor Evaluation (EFE) Matrix
Internal Factor Evaluation (IFE) Matrix
SPACE Matrix
Grand Strategy Matrix
Quantitative Strategic
Planning Matrix (QSPM)
4.
5.
6. Samsung Problem
o This issue is the result of the poor management of Samsung Electronic which effect on both their vision
and strategies in the competition with Apple.
o This is very dangerous and cannot gain as many Competitive Advantages as Apple in general and to
increase the sale as well as gain more market share with their fourth generation smartphone in
particular.
7.
8. Samsung Background
o Founded by Lee Byung-chull
o 1950‟s Korean war lost all assets
Aimed to rebuild Korean economy manufacturing industry(sugar, fabrics)
Think globally and use of foreign labor
o 1969 SEC (Samsung Electronic Company) was founded
o 1970‟s entered into semiconductor business
o 1980‟s the Samsung Television Division was built
o 1987 Lee Kun-He take over
o 1997 nearly all Korean business shrunk in size due to Asian
financial crisis(Force to sell company asset on
Aircraft/Motor).Making profit from TV‟s and Mobile phone
9. Samsung Introduction
Name Samsung Electronics Co., Ltd.
Industries served Consumer electronics, Telecoms Equipment, Semiconductors, Home Appliances
Geographic areas served Worldwide
Headquarters South Korea
Current CEO Kwon Oh Hyun
Revenue US$224.3 billion (2013)
Profit US$27.4 billion (2013)
Employees 270,000 (2013)
Parent Samsung Group
Main Competitors
Apple Inc., Nokia OYJ, Intel Corporation, LG Display and LG Electronics, Sony Corporation,
Texas Instruments Inc., Lenovo Group Limited, Hewlett-Packard Company, Sanyo Electric Co.,
Ltd., Toshiba Corporation, SK Hynix Inc., Western Digital Corporation and others.
10. Samsung Introduction
Samsung Electronics Co., Ltd. is the largest world’s technology company in terms of revenues.
Samsung is a conglomerate that is consisting of numerous businesses around the world, of course, so it’s not
as though the company has nearly 300,000 people working on Galaxy smartphones and tablets.
Samsung is the second biggest mobile phone producer in the world.
11. Samsung Mission
To be the best
Digital-Electronics
Company
Digital
To create technology products and services
that lead the industry
Electronics
To put into place the most efficient
management and production processes
Company
To maintain a steadfast focus on strengthening our organization, on continuing to be a global
technology leader and trusted responsible company
12. Samsung Vision
Develop innovative technologies and efficient processes that create new markets, enrich
people’s lives and continue to make Samsung a trusted market leader.
Vision 2020
Partner
Industry
Employee
Inspire the World, Create the Future
New
Technology
Creative
Solutions
Innovative
Products
13. Samsung Objective
o Lead the digital convergence movement.
o Develop innovative technologies and efficient processes and continue to make Samsung a trusted
market leader.
o Look forward to exploring new territories, including health, medicine, and biotechnology.
o Identify eight growth engines for Samsung's business including their Digital Television (DTV)
products and printers.
o Pursue innovation throughout all six main areas of the company's business operations.
o Be one of the top three electronics companies in the world in quantity and in quality by 2010.
o More than double its 2004 sales revenue by the year 2010.
o 20 number one market share products in the world by 2010 (currently the company has eight
number one market share products).
o Reaching $400 billion in revenue and becoming one of the world’s top five brands by 2020.
14. Samsung Strategies
Three strategies approaches under vision 2020
Creativity
management
New technology
development
New market
creation
New lifestyles
Most innovative
company
Partnership
management
Increase external
capabilities and
activities
Partner
collaboration/
Environmental
management
Value for
customers/
shareholders
Profession
Talent
incubator
Passion and
challenge
Most admired
company
Great workplace
15. Products of Samsung
Samsung is a Korean company which is a manufacturer of many products such as : Phones, Normal TVs, 3D
TVs, Computers, DVD players, Cars, Other Electronics, Shipbuilders, Chemicals, Thumbdrives, Hardrives,
Optical storage, Aviation. And this is not all of what they sell.
Smartphone Samsung Galaxy S5
Samsung Galaxy Tab S
Samsung Smart TV 65’’
16. Strengths Weaknesses
1. Hardware integration with many open source OS and
software
2. Excellence in engineering and producing hardware
parts and consumer electronics
3. Innovation and design
4. Focus on environment
5. Low production costs
6. Largest share in mobile phones and 2 place in
smartphones sales
7. Ability to market the brand
1. Patent infringement
2. Too low profit margin
3. Main competitors are also largest buyers
4. Lack its own OS and software
5. Focus on too many products
Opportunities SO Strategies WO Strategies
1. Growing India’s smartphone market
2. Growing mobile advertising industry
3. Growing demand for quality application
processors
4. Growth of tablets market
5. Obtaining patents through acquisitions
1. Introduce a new product with innovation in hardware
parts and consumer electrics in India's market
2. Innovation and design into growing mobile
advertising industry
3. Introduce a new product for the lower income market
1. Develop a new product through acquisition patents
2. Promote profit margin by produce more products in
tablets market
Threats ST Strategies WT Strategies
1. Saturated smartphone markets in developed
countries
2. Rapid technological change
3. Declining margins on hardware production
4. Breached patents
5. Apple’s iTV launch
6. Price wars
1. Introduce a new product with innovation in
hardware parts and consumer electrics
2. Introduce a new product for the lower income
market
3. Develop a new product through acquisition
patents
1. Produce new products without infringe patents
2. Continue develop technique and design to compete
with other competitors
Samsung SWOT Matrix
17. Samsung SWOT Matrix
Strengths
o Customers are loyal and appreciating the brand.
o The company is maintaining very good relationship with its suppliers.
o The production processes and procedures of inventory management are consistent with industrial
standards.
Weaknesses
o Samsung is facing hard competition.
o South Korea’s labor unions are strategically linked for collective bargaining and negotiation.
o Samsung need improvements in defining the vision, mission and strategic corporate objectives.
o HRM also needs improvement in all the facts of human resources management.
18. Samsung SWOT Matrix
Opportunities
o The economic condition of South Korea seems favorable.
o Samsung is interiorizing the social shifts.
o Samsung is reasonable equipped to take care of technological changes. Samsung is maintaining good
international relationship with other.
Threats
o The legislation has been passed frequently related to industry.
o Technological transformation takes place in the industry was very high.
o Regulatory issues and safeguarding of property rights was main threats in legislations.
21. External Factor Evaluation (EFE) Matrix
Key External Factors Weight Rating Weighted Score
Opportunities
A lot of countries encourage technology innovation and high-tech industry is really
important.
0.03 3 0.09
Countries value the protection of intellectual property 0.04 3 0.12
GDP and national income per capita increasing 0.12 3 0.36
Consumption pattern is changing from subsistence consumption to well spending
0.07 3 0.21
pattern
Samsung’s mobile phones have high attention 0.09 4 0.36
Growing India’s smartphone market 0.05 2 0.10
People more care about brand and quality than price 0.14 3 0.42
Threats
Legal issues with Apple 0.05 3 0.15
Price wars with Chinese phones 0.10 3 0.30
More and more new substitute and potential entrant 0.10 4 0.4
Strong competitors: Apple, Nokia, HTC… 0.12 4 0.48
The user experience is upgrading 0.09 3 0.27
Total 1.00 37 3.26
22. Internal Factor Evaluation (IFE) Matrix
Key Internal factors Weights Rating Weighted Score
Strengths
Brand Recognition and Loyalty 0.07 3 0.21
A large number of products and broad product line 0.05 4 0.20
Strong research and development ability 0.10 3 0.30
Hardware integration with many open source OS and software 0.04 2 0.08
Innovation and fashion design, especially popular among younger peoples 0.15 4 0.60
With extensive sales channels and propaganda 0.06 3 0.18
Low production costs 0.03 3 0.09
Largest share in Smartphone industry ( 30% market share worldwide, extending its
0.15 4 0.60
lead over Apple and Nokia)
Weaknesses
Not high lighting Price/Performance Ratio 0.10 4 0.40
Lack its own OS and Software 0.07 4 0.28
Patent infringement 0.04 3 0.12
Too low profit margin 0.04 2 0.08
Limited high-end products 0.03 2 0.06
Focus on too many products, with inaccurate positioning 0.07 3 0.21
Total 1.00 44 3.41
23. Samsung SPACE Matrix
Internal Strategy Position External Strategy Position
Y Financial Strength (FS) +1 to +6 Environmental Stability(ES) -6 to -1
+3
+5
+4
+4
+3
+3
Earnings per share
Revenue increase
Return on Assets
Leverage
Liquidity
Cash flows
-2
-4
-4
-2
-2
-2
Price of competitive product
Competitive pressure
Global economic
Technology changes
Demand elasticity
Inflation rates
Average 3.7 Average -2.7
Total Axis Y score: 1.00
X Competitive Advantage (CA) -6 to -1 Industry Strength (IS) +1 to +6
-1
-1
-1
-3
-5
-2
Product quality
Market share
Brand & image
Product life cycle
Customer service
Customer loyalty
+6
+5
+5
+6
+6
Barriers to entry
Growth potential
Access to financing
Consolidation
Profits
Average -2.2 Average 5.6
Total Axis X score: 3.4
Y
X
Conservative Aggressive
(3.40; 1.00)
Defensive Competitive
24. Samsung Grand Strategy Matrix
RAPID MARKET GROWTH
WEAK
COMPETITIVE
POSITION
STRONG
Strong competitive position working in
COMPETITIVE
POSITION
CHARATERISTICS OF
FIRMS:
Weak competitive position working in
rapid growth market
Market development
Market penetration
Product development
Horizontal integration
Divestiture
Liquidation
CHARATERISTICS OF
FIRMS:
rapid growth market
Market development
Market penetration
Product development
Forward integration
Backward integration
Horizontal integration
Related diversification
CHARATERISTICS OF FIRMS:
Weak competitive position working in
slow growth market
Market development
Market penetration
Product development
Horizontal integration
Divestiture
Liquidation
CHARATERISTICS OF FIRMS:
Strong competitive position working
in slow growth market
Related diversification
Unrelated diversification
Joint ventures
SLOW MARKET GROWTH
25. Quantitative Strategic Planning Matrix
Key Factors
Market
Penetration
Market
Development
Product and Service
Development
Opportunities Weight AS TAS AS TAS AS TAS
A lot of countries encourage technology innovation and high-tech industry
is really important.
0.03 3 0.09 4 0.12 3 0.09
Countries value the protection of intellectual property 0.04 3 0.12 4 0.16 2 0.08
GDP and national income per capita increasing 0.12 4 0.48 4 0.48 1 0.4
Consumption pattern is changing from subsistence consumption to well
spending pattern
0.07 3 0.21 3 0.21 3 0.21
Samsung’s mobile phones have high attention 0.09 4 0.36 4 0.36 4 0.36
Growing India’s smartphone market 0.05 2 0.10 3 0.15 2 0.10
People more care about brand and quality than price 0.14 3 0.42 4 0.56 4 0.56
Threats
Legal issues with Apple 0.05 2 0.10 3 0.15 4 0.20
Price wars with Chinese phones 0.10 3 0.30 3 0.30 3 0.30
More and more new substitute and potential entrant 0.10 3 0.30 4 0.40 3 0.30
Strong competitors: Apple, Nokia, HTC… 0.12 4 0.48 4 0.48 4 0.48
The user experience is upgrading 0.09 3 0.27 3 0.27 4 0.36
Total 1.00 3.23 3.64 3.44
26. Quantitative Strategic Planning Matrix (Cont.)
Strengths)
Brand Recognition and Loyalty 0.07 3 0.21 4 0.28 4 0.28
A large number of products and broad product line 0.05 4 0.20 4 0.20 4 0.20
Strong research and development ability 0.10 3 0.30 4 0.40 4 0.40
Hardware integration with many open source OS and software 0.04 3 0.12 3 0.12 4 0.16
Innovation and fashion design, especially popular among younger peoples 0.15 4 0.60 4 0.60 4 0.60
With extensive sales channels and propaganda 0.06 3 0.18 3 0.18 3 0.18
Low production costs 0.03 2 0.06 3 0.09 4 0.12
Largest share in Smartphone industry ( 30% market share worldwide, extending
its lead over Apple and Nokia)
0.15 3 0.45 4 0.60 4 0.60
Weaknesses
Not high lighting Price/Performance Ratio 0.10 2 0.20 3 0.30 3 0.30
Lack its own OS and Software 0.07 2 0.14 3 0.21 4 0.28
Patent infringement 0.04 2 0.08 3 0.12 3 0.12
Too low profit margin 0.04 3 0.12 4 0.16 4 0.16
Limited high-end products 0.03 3 0.09 3 0.09 4 0.12
Focus on too many products, with inaccurate positioning 0.07 2 0.14 3 0.21 3 0.21
Total 1.00 2.89 3.56 3.73
Sum Total Attractive Score 6.12 7.2 7.17
27. Samsung Strategy recommendations
o Develop business to new Potential Market include Asia, South-America and Europe
o Develop New and Unique Competitive Technologies
These two strategies in general, not only help Samsung overcome and solve their existed issued
but also help develop in the matter of long-term.
28. Samsung Method
o In summary, there will be three main annual objectives that Samsung need to complete include:
Enter and penetrate new market
Building brand images and reputation in new market
Seek and cooperate with potential organization.
29. Samsung Recommendations on procedures
o To ensure to have the desire result in the end, it is recommended to apply and follow the three-step
valuation to analyses and check
The three-step valuations include:
Analyze: observe, collect and analyze all the necessary factors form internal to external to
identified potential threats and problem may occurs of the plans or strategies.
Modification: adjust and modify the plans or strategies to eliminate or minimize the effect of
the threats and problem may occurs
Implementation: begin to apply and implement the plans or strategies after modified under
supervision to ensure the result. Repeat the whole procedures if necessary
