Samsung's history dates to 1938 when "Samsung General Stores" opened in North Kyung-
sang Province, Korea. The company conducted its trade business until the 1950s when it
became a producer of basic commodities such as sugar and wool. In 1958, Samsung be-came
involved in the insurance industry by incorporating a local fire & marine insurance company.
During the 1960s, Samsung became one of the first Korean companies to actively expand its
overseas trade. The group consolidated its manufacturing base by adding paper and fertilizer
businesses. Samsung continuedwith expansion into the life insurance business, strengthened
its retail operations and then moved into the communications sector, successfully establishing
a newspaper and a broadcasting company.
The 1970s were a crucial period in shaping present-day Samsung. Its strengths in the
semiconductor, information and telecommunications industries grew from the significant
investments made during this period. Samsung also took a meaningful step toward heavy
industries by venturing into aircraft manufacturing, shipbuilding and construction, as well as
In the 1980s, Samsung expanded its efforts into exploring the larger markets overseas. The
group began contributing to foreign economies by building facilities in the US, the UK and
Portugal. Samsung also invested considerable resources into fostering Korea‘s rich heritage
by supporting a wide range of cultural and artistic activities.
The final decade of the 20th century saw the evolution of Samsung's new approach
to management. Chairman Kun-Hee Lee's insightful vision and the introduction of the "New
Management" in 1993 acknowledged the need to transform management philosophy in or-der
to keep up with a rapidly changing global economy. More recently in 2000, a "Digital
Management" approach was adopted to ensure that Samsung maintains a leading position as
the Information Age continues to transform global business and culture.
Since Kun-Hee Lee's appointment as Chairman in 1987, the group's total sales increased by
7.2 times to US$98.7 billion and net income by 25 times to US$4.5 billion in 2001. Total
assets of the group grew 12.6 times to US$124.3 billion.
Today, Samsung has evolved into a group of companies unmatched by others in its range of
industries and performance. It is now coherently restructured and streamlined, welltrained,
globally-focused and responsive to the needs of each market, and more committed than ever
to true innovation. The group's three core business sectors are electronics, finance, and trade
Leaders of Global Growth
Kun-Hee Lee, Chairman:
Son of founder Byung-Chull Lee, Kun-Hee Lee's early career at Samsung included a decade
serving as Executive Director of the Joong-Ang Daily newspaper and Tong-Yang
Broadcasting Corporation. Becoming Vice Chairman of the Samsung Group in 1978 and
Chairman in 1987, Lee presented a blueprint for Samsung's global success in the 21st century
with his "New Management" declaration in 1993. In 1998, Lee took over the helm of
Samsung Electronics Co. as Chairman.
Lee's "New Management" encompasses intellectual capital, organizational creativity, tech-
nological innovation and employee empowerment as the key strategies for Samsung's
profitable growth in an era of unbridled global competition. Lee was named among Asia's 50
most influential people by Asiaweek for six consecutive years and was also named one of the
world's most influential people by the French weekly Le NouvelObservateur. His broad
perspective on business stems in part from his participation in many organizations such as the
Korea-Japan Economic Committee and the Federation of Korean Industries.
An amateur wrestler in his youth and an avid golfer and equestrian today, Chairman Lee is
committed to the advancement of amateur sports in Korea and around the world. He has
been a member of the International Olympic Committee since the 1996 Atlanta Olympic
Games. Born in 1942 in Uiryung, Kyongnam Province, South Korea, Lee majored in
Economics at Japan's Waseda University and studied Business Administration at
George Washington University in the United States.
Byung-Chull Lee (1910-1987), Founder:
Byung-Chull Lee, who founded the Samsung Store in 1938, was the leading business vi-
sionary of his time. With a philosophy of service to the nation through business and an
emphasis on cultivating quality human resources, Lee is remembered today as much for his
pioneering role in Korea's industrialization as for his philanthropic activities and spirit of
Samsung's, and indeed Korea's, strong presence in semiconductors, electronics, engineering,
aerospace and many other future-oriented industries can be traced directly to the early
foresight and determination of founder Lee.
Mr. Lee also devoted himself to preserving the nation's cultural heritage for future genera-
tions. The establishment of the Ho-Am Art Museum, which houses the largest private col-
lection of art and artifacts in Asia, preserves thenation‘s heritage, while the Samsung
Foundation of Culture encourages the cultural and artistic pursuits of future generations. In
1997, the Ho-Am Foundation was created in memory of founder Lee's contribution to
Vision and Strategy
In 1993, Chairman Kun-Hee Lee presented a blueprint for Samsung's global success in the
21st century with his "New Management" declaration that encompasses intellectual capi-tal,
organizational creativity, technological innovation and employee empowerment as the key
strategies for Samsung's profitable growth in an era of unbridled global competition.
"New Management" implementation began by encouraging individual employees to first
make changes within themselves, striving to care more for others and to behave ethically.
Today, performance at Samsung is measured in qualitative rather than quantitative, terms.
Moreover, international competitiveness is an overriding objective, achieved through multi-
faceted integration of facilities as well as the development of global information systems.
Samsung's ultimate goal is to achieve quality-of-life improvements worldwide by succeeding
as a top-tier enterprise in the 21st century.
For the past half-century, Samsung employees have been guided by a corporate philosophy
that states, "We will devote our people and technology to create superior products and ser-
vices, thereby contributing to a better global society." Today, this corporate philosophy
unites all Samsung-affiliated companies. Through enhanced global management, Sam-sung
is now embracing the emerging business trends worldwide, enabling it to react quick-ly and
respond to local market changes.
The year 2000 was declared as "Samsung's initial year of digital management." Through this
declaration, Samsung set an objective to become the winner in the digital era of the 21st
century through leading initiatives based on its pioneering spirit and management strategy of
selection and concentration, as well as by advancing the standards of next generation digital
Innovation has long been critical to Samsung's success, helping the group to be "first" in
many new product developments and technological breakthroughs. Its commitment to in-
novation continues to be stronger than ever. For example, Samsung Electronics, which has
been among the world's top 10 in US patents for four consecutive years, has 13,000 re-
searchers representing a US$1.7 billion investment in Research and Development.
As Samsungexpands its global presence and recognition, it has not lost touch with its roots in
Korea. Samsung continues to be a leading influence and major supporter of the Korean
economy, society, and culture.
Although Samsung-affiliated companies are spread over a range of industries and operate
independently, they share the same overall management philosophy, code of conduct and
corporate identity. Chairman Lee is responsible for determining the long-term vision and
direction of strategy for the group, while Chief Executive Officers of each affiliate have the
responsibility for autonomous decision-making on ordinary business issues.
Samsung aims to grow the businesses of the group to about US$224 billion insales by 2010,
with income before tax of around US$25 billion. Total assets are expected to reach in excess
of US$280 billion.
With more than 285 overseas operations in 67 countries, Samsung is truly global in scope and
nature. Samsung's strategy is two-pronged: to prudently expand outside its home market and
to equip overseas units with the skills and resources to be self-sufficient.
This strategy brings Samsung, andthe countrieswhere it operates, enormous opportunities.
Globalization provides access to new suppliers and customers, and allows Samsung to learn
and benefit from new cultures and new ideas. In addition, Samsung places a priority on being
a respected corporate citizen, a good employer, and a helpful neighbour in the local
community and hence contribute to the local economy.
Samsung is already a world leader in many business areas. In electronics, it is the number
one producer of memory chips, LCDs, displays and CDMA handheld phones. In finance,
Samsung Life Insurance is ranked 10th largestlife insurance company in the world by Fortune
Increasingly, Samsung has been forming cooperative alliances with the some of the lead-ing
names in the global technology arena to share vision, knowledge and experience.
Alliances include cooperation with Microsoft, AOL Time Warner, and Sprint in the areas of
technology and marketing. Samsung is also working with Intel, Sony, and Qualcomm on
technology exchange as well as standardization. Collaborating with Dell, IBM , Com -paq,
and Hewlett-Packard has helped to reduce risks in entering new business areas and to secure
The partnerships are designed to provide all customers with efficiency, productivity and
stability with the aim of being a total solutions provider in the areas of home, mobile and
office through Digital Convergence and Networking.
Samsung's goal in every market is to maximize brand equity through superior design, mar-
keting, and customer service, and to constantly deliver the highest-quality products. The
steadfast commitment in each of these areas will ultimately place the "Samsung" name
among the best known and most respected in the world. Samsung's brand value increased to
US$8.31 billion in 2002 from US$6.37 billion in 2001 and was recognized by Interbrand
Corporation as the fastest growing global brand.
Commitment to Hum an Resources
One of the management philosophies of the late founding Chairman Byung-Chull Lee was
that "A Company is Its People." Attracting and developing the best people is key to Sam-
sung maintaining, and enhancing, an advantageous position in an era of technology com-
All new employees attend a comprehensive one-month orientation / education program to
learn and understand the core values of the group, its management and strategic direction, and
the vision that Samsung is pursuing.
One of Samsung's human resources strategies is to recruit the highest-quality personnel
from around the world, regardless of nationality, by focusing on those who have Masters and
Doctorate degrees in all areas of management, such as research and development,
marketing, finance, design and information technology.
Recognizing that globalization of domestic human resources is as important as attracting
high-quality personnel from overseas, Samsung is continuously strengthening the global
competencies of core personnel by focusing on foreign language proficiency and ability to
acclimatize to foreign cultures.
Samsung is also making efforts to provide early career-development programs for individ-
uals who have been identified as possessing noteworthy capability and talent in a range of are
Since its establishment, Samsung has become a national company representing Korea as a
result of implementing its spirit of "Priority of Human Resources" through which it has
placed great value in its employees and raised human resources necessary for the nation and
• Date founded: 1938
• Chairman (since 1987): Kun-Hee Lee
• Founder: Byung-Chull Lee (1910-1987)
• Headquarters: Seoul, South Korea
• Global Operations: 285 offices and facilities in 67 countries
• Main Business Sectors: Electronics, Finance, and Trade and Services
• Number of Employees: 173,000 worldwide
• Number of listed companies within the group: 14
• Listed Companies:
- Samsung Electronics Co..Ltd.
- Samsung SDI Co., Ltd.
- Samsung Electro-Mechanics Co., Ltd.
- Samsung Techwin Co., Ltd.
- Samsung Heavy Industries Co., Ltd.
- Samsung Fine Chemicals Co., Ltd.
- Samsung Fire & Marine Insurance Co., Ltd.
- Samsung Securities Co., Ltd.
- Samsung Corporation
- Samsung Engineering Co., Ltd.
- C heil Industries Inc .
- The Shilla Hotels and Resorts Co., Ltd.
- Cheil Communications Inc .
- SI Corporation
Introduction of Samsung
Samsung is known globally for its electronic products and it is one of the successful brands in
the electronic industry. It is an established company almost all around the world.
Samsung Electronics is a South Korean multinational electronics and information technology
company headquartered in Samsung Town, Seoul.It is the flagship subsidiary of the Samsung
Group. With assembly plants and sales networks in 61 countries across the world, Samsung
has approximately 160,000 employees.
In 2009, the company took the position of the world‘s biggest IT maker by surpassing the
previous leader Hewlett-Packard. Its sales revenue in the areas of LCD and LED displays and
memory chips is number one in the world.
In the TV segment, Samsung‘s market position is dominant. For the five years since 2006, the
company has been in the top spot in terms of the number of TVs sold, which is expected to
continue in 2010 and beyond. In the global LCD panel market, the company has kept the
leading position for eight years in a row.
With the Galaxy S model mobile phone, Samsung‘s Smartphoneline-up has retained the
second-best slot in the world market for some time.In competition to Apple's ipad tablet,
Samsung released the Android powered Samsung Galaxy Tablet.
The Samsung Philosophy
At Samsung, we follow a simple business philosophy: to devote our talent and technology to
creating superior products and services that contribute to a better global society.
Every day, our people bring this philosophy to life. Our leaders search for the brightest talent
from around the world, and give them the resources they need to be the best at what they do.
The result is that all of our products—from memory chips that help businesses store vital
knowledge to mobile phones that connect people across continents— have the power to
enrich lives. And that‘s what making a better global society all is about.
Company’s Values -
We believe that living by strong values is the key to good business. At Samsung, a rigorous
code of conduct and these core values are at the heart of every decision we make.
Quite simply, a company is its people. At Samsung, we‘re dedicated to giving our people a
wealth of opportunities to reach their full potential.
Everything we do at Samsung is driven by an unyielding passion for excellence—and an
unfaltering commitment to develop the best products and services on the market.
In today‘s fast-paced global economy, change is constant and innovation is critical to a
company‘s survival. As we have done for 70 years, we set our sights on the future,
anticipating market needs and demands so we can steer our company toward long-term
Operating in an ethical way is the foundation of our business. Everything we do is guided by
a moral compass that ensures fairness, respect for all stakeholders and complete transparency.
A business cannot be successful unless it creates prosperity and opportunity for others.
Samsung is dedicated to being a socially and environmentally responsible corporate citizen in
every community where we operate around the globe.
Vision 2020 -
As stated in its new motto, Samsung Electronics' vision for the new decade is, "Inspire the
World, Create the Future."
This new vision reflects Samsung Electronics‘ commitment to inspiring its communities by
leveraging Samsung's three key strengths: ―New Technology,‖ ―Innovative Products,‖ and
―Creative Solutions.‖ -- and to promoting new value for Samsung's core networks -- Industry,
Partners, and Employees. Through these efforts, Samsung hopes to contribute to a better
world and a richer experience for all.
As part of this vision, 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. To this end, Samsung has
also established three strategic approaches in its management: ―Creativity,‖ ―Partnership,‖
Samsung is excited about the future. As we build on our previous accomplishments, we look
forward to exploring new territories, including health, medicine, and biotechnology. Samsung
is committed to being a creative leader in new markets and becoming a truly No. 1 business
Samsung Profile 2011
At Samsung our gaze is cast forward, beyond the next quarter or the next year, ahead into
areas unknown. By charting a course toward new businesses and new challenges, we are
sowing seeds for future success.
2011 Financial Highlights -
AMOUNTS IN BILLIONS WON DOLLARS EUROS
Net Sales* 254,561.5 220.1 165.9
Total Assets 391,391.9 343.7 258.7
Total Liabilities 230,688.5 202.6 152.5
Total Stockholder's Equity 160,693.5 141.1 106.2
Net Income* 24,497.9 21.2 16.0
[Amounts in billions]
SWOT Analysis of Samsung
New bogus appurtenances abstraction to rollout in 5 months.
Communicable the beating of the buyer, present acceptable designs &accepting
Heavy asset in technology, artefact architecture and staff.
Lack in artefact separation.
Different models at assorted amount points.
Centremost on accumulation bazaar instead of alcove markets.
Not actual user affable design.
Differentiate its account from competitors.
Offer artefact variation
Crave for corpuscle phones apprenticed by the account provider or carriers.
Affordability by 43%.
Motorola's babyminding in the U.S market, Nokia's acceptance in the
Pakistanimarket, artful added than bisected of the apple market.
Agitated competitor, including Sony Ericsson and Siemens bistro into its share.
Not befitting clue of the new trend in the market.
Not an appearance accent and appearance statement
Strategies of Samsung
Product Innovation -
Samsung's product range in India 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.Analysts feltthatthewideproductrange
of Samsung was one of main reasons for its success in the Indian market. Samsung positioned itself on the
Along with the launch of new products, Samsung also consolidated its distribution system. Samsung had 18
state-leveldistributionoffices andadirectdealerinterface. Thedirectdealerinterfacehelpedthecompanyget
Advertising and Sales Promotion -
In 1995, when Samsung entered India, it realized that Indian consumers were not familiar
with the company. So, in order to establish itself in the Indian consumers ‗mind, Samsung
launchedcorporateadvertisementshighlightingitstechnologically superior goods.
The Making of a Global Brand -
In 1993, as a first step in its globalization drive, Samsung acquired a new corporate identity. It
color on bluecolor background to represent stability, reliabilityand warmth. The words SamsungElectronics
were written in English so that they would be easy to read and remember worldwide. The logo was shaped
ellipticalrepresentingamoving world - symbolizing advancement and change.
Advertising and Promotional Strategies -
In 1997, Samsung launched its first corporate advertising campaign - Nobel Prize Series. This
ad was aired in nine languages across Europe, the Middle East, South America and CIS
countries. The advertisement showed a man (representing a Nobel Prize Laureate) passing
from one scene to another. As the man passes throughdifferent scenes, Samsung products
transform into more advanced models. Accordingto company sources, the idea was to convey the
messagethatSamsungusesNobel Prize Laureates' ideas for making its products.
Samsung Electronics: Innovation and Design Strategy -
In January 2008, Samsung Electronics won 32 innovation and design engineering awards at
the Consumer Electronics Show. This is a management strategy case that explores product
design, innovation strategies and strategic planning in a changing competitive landscape.
While investment in R&D and product design has rewarded Samsung Electronics with its
dominant market position and premium brand perception, such dominance may not be
sustainable in the long run, especially now that competitors are achieving higher profitability
with lower investments in R&D per product. The case also discusses such issues as product
design philosophies, innovation strategies, localization of products, product design
outsourcing for consumer electronics products.
Design strategy is a discipline which helps firms determine what to make and do, why do it
and how to innovate contextually, both immediately and over the long term. This process
involves the interplay between design and business strategy, forming a systematic approach
integrating holistic-thinking, research methods used to inform business strategy and strategic
planning which provides a context for design. While not always required, design strategy
often uses social research methods to help ground the results and mitigate the risk of any
course of action. The approach has proved useful for companies in a variety of strategic
Samsung's Plan to Strengthen Its Weaknesses -
The global cell phone business has been in a funk lately, with handset sales off 11% this
year—a serious downshift from the double-digit expansion of recent times. Samsung
Electronics, though, has bucked the trend, boosting sales 7% in 2009 without denting its 10%
profit margins. That has helped the Korean giant increase its worldwide market share to 19%
and cements its position as the No. 2 player globally, behind Nokia, with 38%. Samsung's
reaction to the good news? "We have a long way to go," says J.K. Shin, the company's new
handset business chief.
Sure, there's a big dose of traditional Korean modesty in Shin's fretting. But while Samsung is
the top brand in the U.S., Shin is worried that the company remains a laggard in two key
segments: high-end smartphones and ultra cheap models for developing countries. In smart
phones, Samsung has just 3.5% of a world market that's likely to grow 31% this year,
according to researcher Strategy Analytics. At the low end, Samsung still trails Nokia badly.
In India, its share is less than 10%, vs. Nokia's 58%. And of the 150 or so new models
Samsung will introduce this year, only a half-dozen cost less than $100.
Samsung's Marketing Strategy in India -
Samsung entered India in December 1995 as a 51:49 joint venture with Reasonable Computer
Solutions Pvt Ltd (RCSPL), owned by VenugopalDhoot of the Videocon group. In 1998,
RCSPL diluted its stake in Samsung to 26% and in November 2002, the FIPB cleared
Samsung's proposal to buy RCSPL's remaining (23%) stake.
In 2002, Samsung established manufacturing facilities for colour televisions, microwave
ovens, washing machines and air conditioners at Noida, Uttar Pradesh. It also had a presence
in consumer electronics, information technology products, mobile phones and home
appliances. Samsung's flagship businesses were consumer electronics and home appliances,
which contributed more than 60% of its revenues.
In 2002, Samsung reported sales of Rs.170 million with 26% growth over the previous year.
Its consumer electronics business grew by 29% and contributed 60% to the total sales, and its
home appliances division grew by 21%, contributing 40 % of the total sales.
Energy Management Strategy -
Samsung Electronics has adopted various measures such as high-efficiency facilities, energy
management systems and training programs for employees to reduce energy consumption
across all operations. We also plan to introduce an energy certification program for new
facilities and buildings from 2010.
The company established a working group for energy management which meets every two
months to share best practices for energy saving and management throughout all business
divisions. These activities encourage facilities to set up highly energy efficient equipment and
technologies; low-power vacuum pump technology, energy efficient water humidification
systems, and energy efficient process optimization, etc.
We are also committed to enhancing employees' awareness through diverse training,
promotions and incentive programs to facilitate energy saving activities at workplaces.
Compliance Management Strategy -
Samsung Electronics has established a new compliance system to prevent and minimize
business risks associated with issues such as collusion and violation of intellectual property
rights. We have instituted a compliance program that includes preemptive and year-round
training, control and supervision in order to ensure adherence to pertinent laws by the
company and all employees and mitigate risks related to violation of laws and regulations.
Our compliance activities are broadly classified into prevention, monitoring and follow-up
processes. Prevention activities include employee education, distribution of manuals on
compliance, system-based self-inspections, and operation of a help desk to respond to
questions on compliance matters. We also keep up to date with the introduction and revision
of various laws and regulations. There is a separate team dedicated to monitoring activities.
After dealing with a compliance issue, we analyze the related process and outcome to find the
fundamental cause and pursue improvement measures. Real life examples are used in training
programs as a way of preventing recurrence of any compliance problems that arise.
Climate Strategy -
Samsung Electronics has been establishing corporate-level strategies to address its direct and
indirect impact on climate change. Through this, Samsung strives to reduce direct and
indirect emissions of greenhouse gases and prevent potential risks by carrying out initiatives
in voluntary GHG reduction and the development of an inventory.
Samsung's strategy pressures competitors -
Samsung Electronics Co. Ltd is piling on the pressure in the second quarter with a flood of
investments— approximately Rs.28,226.70 crore (7.3 trillion Korean won or $7 billion)—
migrating into advanced geometries to further reduce costs and proposing a hefty 100 per
cent jump in DRAM bit shipment and 130 per cent for NAND memory components.
Despite this, Samsung executives speak little about boosting depressed DRAM average
selling price. That goal, which they admit will benefit the entire memory component market
and is critical to profitability in the embattled sector, will come later.
"We plan to make massive investments and try to expand our market share through
implementation of aggressive investment plans and migration into advanced geometry," said
Yeongho Kang, vice president of the semiconductor business at Samsung, in a presentation to
the investment community following the release of the company's first quarter results.
"We will accelerate our efforts to strengthen our competitive edge and continue to widen the
gap with our competitors to achieve further growth and profitability," added Kang.
The History of Samsung Mobile Phones -
Although its line of sparkling smart phones seems fresh and new, Samsung Mobile has been
around since 1983. Samsung Mobile's parent company, Samsung Electronics, was founded in
1969. Once known for its televisions and other home appliances, Samsung recently eclipsed
heavyweights Sony Ericsson and Motorola as one of the biggest cell phone manufacturers in
Samsung Mobile's first ever offering was a car phone it introduced in 1986. Because of poor
reception and sales, manufacturing was halted. From this point until the early 1990s,
Samsung Mobile would introduce mobile phone models, but sales were low because demand
was low. The designs of these early attempts were bulky, and reception was poor. With
Motorola holding a sizable advantage over the rest of a fledgling mobile phone field,
Samsung nearly dropped its Mobile division.
In 1993, Samsung Mobile released the SH-700 series, which boasted a smaller and sleeker
design and better sound quality. With a better product and a more aggressive marketing
campaign, Samsung would reclaim more than half the mobile phone market share in Korea
The Global Market
Samsung cell phones found its way into American hands for the first time in 1996, when they
partnered with Sprint on a line of sleek and compact phones. A few short years later, South
America and Japan were enjoying the high-end design of Samsung Mobile phones.
Samsung Mobile Today
In early 2009, Samsung Mobile's global market share stood at more than 17 percent, second
only to Nokia. In the 3rd quarter of 2008, for the first time in its history, Samsung Mobile
shipped more than 50 million handsets in a quarter--despite a global recession.
Lee Byung-chull founded Samsung Group in 1938, naming the start-up company a Korean
word which translates to "three stars" in English.
Samsung Mobile enjoys agreements with major cell phone service providers such as T-
Mobile, AT&T, Sprint and Verizon Wireless.
In early 2009, Samsung Mobile and T-Mobile introduced the Memoir, a cell phone with a
"Best in Class" 8-Megapixel camera.
Samsung Mobiles: Smartphone strategy for the Indian market -
Samsung Mobile‘s line-up of smart phones and tablets has helped the handset maker rally a
significant share in a market that is largely dominated by Nokia. Samsung sold 12.6 million
smart phones in the quarter ended March 2011, boosting its global Smartphone market share
by 7.4 percentage points from the previous year to 12.2 per cent. It now ranks fourth after
Nokia, Apple and Research in Motion (RIM). Samsung is only 1.2 percentage points behind
RIM and is expected to grab the number three spot in 2011 if it maintains its current growth
rate. Advance orders for Samsung‘s Galaxy S2, which was released in April 2011, surpassed
3 million units within a week of the launch, posing a threat even to Apple. At this rate, its
sales are expected to top 14 million units in the current quarter.
Blue Ocean Strategy (BOS) – Samsung Electronics 2006-2010 -
Value Innovation, first component of Blue Ocean Strategy is Samsung‘s primary tool for
product development. Value Innovation Program centre was started in 1998 and by 2004 the
centre was playing a very key role in rapid growth of Samsung to become the world‘s top
consumer electronics company. Many cross-functional Blue Ocean project teams were at
work, and had ingrained the approach in the corporate culture with an annual conference
presided over by their entire top management. One of the key successes of VIP centre was,
within five years of entering the mobile phone market, in 2003 Samsung has become the No2
player in the mobile phones market.
Samsung BOS strategy has also helped it to maintain top position in TV market (since 2006-
2010), Global; LCD panel market since 2002. BOS is still at the core of the Samsung product
strategy and company has been able to make the necessary adaptations according to the
business environment and changing consumer preferences. In 2006 Samsung launched
Market Driven Change (MDC) where its focus was on the consumer insights and how to
develop better and new products using consumer insights. One of the successful results of the
MDC was Flat panel LCD TV Bordeaux. This TV has played a crucial role in Samsung
overtaking Sony in the LCD market. In 2007 Samsung keeping focus of teenager customers
has launched a store in the Second Life Site. The virtual space will be used to showcase range
of mobile handsets to teenagers the future consumer group, in a competition-less way.
2008 has been a tough year for Samsung as the Chairman of the group was indicted and
forced to resign on tax evasion charges. Samsung also failed to acquire SanDisk, the flash
memory giant. Fall in sales of microchips and TVs has hit the company badly due to
recession. Early 2009 Samsung merged its LCD (liquid crystal display) and semiconductor
business into one business unit called Device Solution Business. It is also merged its digital
media and its telecommunications business into one business unit, called Digital Media &
Communications Business. Samsung launched green management initiative that is intendedto
make Samsung a leading eco-friendly company by 2013. The 'Eco-Management 2013' plan
seeks to reduce greenhouse gas emissions from manufacturing facilities by 50 percent, and to
reduce indirect greenhouse gas emissions from all products by 84 million tons over five
2009 also saw Samsung enter into Mobile OS market with launch of its own open mobile
operating system, called "bada," which can be used to develop applications for Samsung
phones. Samsung launched mobile phones Wave based on Bada platform along with its first
smart phone on Google‘s Android platform – Samsung Galaxy. The company plans to bring
down smart phone prices significantly. Samsung launched 3D LED TVs and at a premium
pricing and changing the home entertainment experience from 2-D to 3D.
2010 saw Samsung launching a a new tablet PC named Galaxy Tab as the latest device meant
to rival Apple Inc.'s popular iPad. Samsung is still innovating in a big way and it still relies
on a basic assessment: product‘s competitiveness is everything, and it must be kept away
from price wars.