1. CLASS 1
LE NHAT HUY 295896
VO THI LE HUYEN 295929
NGUYEN DOAN DOAN HANH 295904
3. Table of Contents
II. Product Information
Competitive Profile Matrix (CPM)
External Factor Evaluation (EFE) Matrix
Internal Factor Evaluation (IFE) Matrix
Grand Strategy Matrix
Planning Matrix (QSPM)
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
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
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
To create technology products and services
that lead the industry
To put into place the most efficient
management and production processes
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.
Inspire the World, Create the Future
13. Samsung Objective
o Lead the digital convergence movement.
o Develop innovative technologies and efficient processes and continue to make Samsung a trusted
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
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
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
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
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
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
Threats ST Strategies WT Strategies
1. Saturated smartphone markets in developed
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
3. Develop a new product through acquisition
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
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
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
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.
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
A lot of countries encourage technology innovation and high-tech industry is really
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
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
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
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)
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
Earnings per share
Return on Assets
Price of competitive product
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
Brand & image
Product life cycle
Barriers to entry
Access to financing
Average -2.2 Average 5.6
Total Axis X score: 3.4
24. Samsung Grand Strategy Matrix
RAPID MARKET GROWTH
Strong competitive position working in
Weak competitive position working in
rapid growth market
rapid growth market
CHARATERISTICS OF FIRMS:
Weak competitive position working in
slow growth market
CHARATERISTICS OF FIRMS:
Strong competitive position working
in slow growth market
SLOW MARKET GROWTH
25. Quantitative Strategic Planning Matrix
Product and Service
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
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
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.)
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
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