1. Samsung Electronic Company UlugbekKurbanov Andrea Cirillo Pietro Migliori Ignazio Di Biase Alessandro Monda Emanuele Gasparini 23/04/2010
2. Agenda Part 1. Company’s Overview (Slides 3 – 8) Part 2. SEC’s Market Position (Slides 9 – 15) Part 3. Company’s Success (Slides 16 – 21)
3. Samsung History (up to 1999) Samsung is a Koreanfirmborn in 1938 as a company thatdealtwithgreengrocery and driedfish In 1969 SEC (Samsung Electronic Company) wasfounded In 1970’s itenteredinto semiconductor business In 1980’s the Samsung TelevisionDivisionwasbuilt In 1997-1999 AsianCrisis (Motor and Aircraftdivisionswere sold)
4. Ingredientsof corporate TurnaroundStrategy Becoming a world knownbrand (over 200 countries) by: R&D (investing on scientifictalents) Innovation (newdigitaltechnology) Customization (newproductseveryyear) New allocationof marketing resources (M-Net)
5. Historyof Samsung (after 1999) Kim became the executive vice-presidentof global marketing In 1999 the GMO (Global Marketing Operation) wasbuilt Between 1998 and 2003 about 36$ blnfornew chip factories and TFT-LCDswereinvested In 2005 Samsung became the worldwideinvestor in semiconductor business overcoming Intel aswell In 2006 a joint venture with Sony forLCDspanelswasestabilished
6. Marketing Implications Changeof the internalperceptionof Marketing Division in threeStrategyTeams: Marketing, Regional and Product MDC: a newinitiativetodevelopnewproductsclosertocustomers Increaseeffortsfor advertising campaignwith the slogan “DigitAll-Everyone‘s Invited” Strong sponsorshipactivities (i.e. Olympic Games, Football Teams and The Matrix Reloaded)
7. Marketing Implications SEC alsodevelopedsponsorshipswithstylists, suchas Giorgio Armani The Matrix reloaded http://www.youtube.com/watch?v=xuIE1MRGlxU
8. M-NET software Itis a programtoanalyzepastresultstounderstandwhich are the mostprofitableopportunities Budget reallocationthrough 3 opportunities: Reduce overspending (suchas in North America and Russia) Identify high growthpotentialareas Deletemisallocation in products Improvements in management incentives
27. Buyers and Suppliers Due to high vertical integration the bargaining power of suppliers is very low: in fact manufacturing is a core competence Thanks to customization SEC’s prices are higher than average. Bargaining power of buyers is therefore low.
28. Threat of entry and Substitutes Barriers to entry in the digital industry are high, since enormous initial investments are required, particularly in R&D area Analog technology is a substitute: it implies much lower costs however, nowadays, this has become obsolete
29. Brand Positioning SEC has changed from a “cheap OEM” to a “High value-added products provider” Thanks to new marketing strategy, the SEC started to benefit from higher margins, exploiting its own brand name Due to unique Brand Image, SEC is discovering new horizons