Samsung follows a differentiation strategy across its product lines. It focuses on innovation through heavy investments in R&D and developing products with unique features like large screens, connectivity, anti-microbial properties. This allows Samsung to maintain leadership in key categories like smartphones, TVs and appliances. The strategy has proven successful, helping Samsung increase its market share and sales significantly over the past decade.
2. Samsung : Overview
• Samsung Electric Industries - established as a subsidiary of Samsung
Group in 1969 in Suwon.
• Samsung Electronics commenced its operations in India in December
1995 and is today a leading provider of Consumer Electronics, IT and
Telecom products in the Indian market.
• The company focuses on four areas:
Digital media – which include computer devices, home appliances, digital
displays and enteratinment devices
Semiconductor – which include optical disk drives, SDRAM, mobile
application processor etc.
Telecommunication network- which include mobile phones, fax machines,
satellite receivers
LCD and LED digital appliances - focus on making LED and LCD panels
for monitors, television
3. • Samsung India is a market leader in product categories like
LED TVs, LCD TVs, Slim TVs and Side by Side Refrigerators.
It is the world's largest mobile phone maker, world's second-
largest semiconductor chip maker (after Intel Corporation).
• The company works on a strong value system. At the core of
every decision, these values play a major role.
People
Excellence
Change
Integrity
Co-prosperity
4. Samsung : Product Line
• Mobile Phones and Tablets
• Televisions
• Refrigerators
• Air Conditioners
• Washing Machines
• Microwave Owens
• DVD /Blue Ray Players
• Camera/Camcorder
• PC/ Laptops / Peripherals
• Accessories
• Business needs like compressors, semiconductors, fibre optics
5. Samsung as a Differentiator
• Customer/Service Orientation: It provides services to its customers
through a wide service centers network, online technical support,
online complaints, live chats and phone support.
• Long Term funds Priority for discretionary expenses: Each year
Samsung invests at least 9% of our sales revenue in R&D activities.
• Product Strength and Innovation: Samsung's innovative and top
quality products coupled with our innovative marketing initiatives
have contributed to the success of the brand globally as well as in
India.
• Long Term Focus: Samsung has mapped out a specific plan of
reaching $400 billion in revenue and becoming one of the world’s top
five brands by 2020.
6. • Product Oriented R & D: Samsung’s emphasis on Product
Innovation and R&D has given the Company a competitive edge
in the marketplace. More than a quarter of all Samsung
employees work everyday in research and development at 42
research facilities around the world.
7. • In April 2011 Samsung South West Asia organized its first regional
forum held under the theme of "Smarter Life". Announced Samsung's
Smarter Life philosophy: Smart Design, Smart Experiences and
Smart Connections.
• Samsung's three key strengths: “New Technology,” “Innovative
Products,” and “Creative Solutions.”
9. • Samsung Ultrabook are slimmest
notebooks among the windows platform
based laptops.
• Combined great design with amazing
performance.
• Various variants available as the
consumer needs.
• Samsung Netbook unites outstanding
mobility and usability.
• Its robust design, with an ultra durable
casing, delivers long-term reliability and
value. But it still weighs less than
1.03Kg and boasts an anti-reflective
screen and the latest mobile
technology.
11. • While Samsung is the second largest mobile handset brand in India,
it leads in the smart phone segment in India.
• Company’s market share in Mobiles has grown from 6% in 2008 to
over 30% as on date.
• Samsung has followed differentiation strategy with immense focus on
new innovations and technologies.
• Samsung has been a leader in understanding the needs of the
consumers and has focused on improving the products and services
provided to customers by incremental changes and improvements.
• In Oct 2010 Samsung was the first
company to launch Tablets in the
Indian market, with the Galaxy tab
7”.
• Later released Galaxy tab 10.1”.
• Latest releases in this series are
Samsung Galaxy Tab 2 (7.0“) and
Galaxy note (10.1“).
12. • Launched Galaxy S2 which was
one of the slimmest smartphones
of the time.
• It is one of the first devices to offer
a Mobile High-definition Link
(MHL), which allows up to 1080p
uncompressed video output to an
MHL enabled TV or to an MHL to
HDMI adapter.
• Nov 2011 - Samsung creates a
new mobile category in the Indian
market by launching its
revolutionary Galaxy Note with the
market's largest HD Super
AMOLED display, supreme
portability and advanced Smart
Pen feature to meet the
consumers' creativity and
productivity needs.
13. • Released Samsung Galaxy Y Duos
for Rs 8500.
• Multimedia phone with unique
features, good design and
functionality for budget consumers.
• Cheapest Android phone available
at the time of release.
• Duos Range snatched up the top
position among smart phone users.
• Samsung followed a cost leadership
and differentiation leadership
strategy by developing Smartphone
with a focus on meeting strict
quantitative targets.
15. • In 2009, Samsung sold around 31 million
flat-panel televisions, enabling to maintain
the world's largest market share for a
fourth consecutive year.
• In March 2009, Samsung also launched
the "Finger-Slim" super-slim LED
television resulting in sales of about two
million units.
• Leading the flat panel television market for
quite many years.
• Launched its first full HD 3D LED television in March 2010 and sold one
million pieces within six months of launch. First company to have the full
line of 3D offerings, including 3D television, 3D Blu-ray play, 3D content,
and 3D glasses.
• Also introduced Internet TV and Smart LED TV which supports downloaded
applications.
17. • Samsung is focused on developing
pioneering products to add value to
everyday.
• The company incorporate quantum
changes with change in technology.
• The new range of air conditioners can
detect weather forecasts and recommend
efficient temperature and operating mode.
They can also prevent viruses and bacteria
to up to 99.99% and can adjust
temperature automatically for a good night
sleep.
• Latest Samsung refrigerators are Wi-Fi enabled. The door has 8”
touchscreen which connects you to Internet and thus you can access
cooking sites, heath site from your refrigerator door.
18. Samsung have also pioneered the washing machine
segment with continues innovation which makes washing
easy. Currently the most promising features are:
• PowerFoam Technology-In this a deep cleansing foam
is created by the PowerFoam washers.
• Vibration Reduction Technology (VRT) provides
smooth operation at high spin speeds, significantly
reducing vibration and noise.
• PureCycle - helps remove dirt and detergent residue.
• It also has has the Silver Nano science which acts as
an anti-bacterial agent to take away germs from
outfits.
19. Analysis
• Samsung has undertaken a differentiation strategy
in all these three segments.
• The company focuses on providing innovative
quality products to the customer and thus is aimed
at making life easier for its customers.
• The various features in these products have helped
the company gain a large market share and
consumer loyalty.
• After following the differentiating strategy the net
sales, that was dipping till 2009, increased to 220.1
billions and has continued increasing.