The changed tendency of
International Strategy
Samsung Electronics
JIHYE CHOI 200812375
BERENICE NECHER 201060709
JUNGRYO LEE 200711318
HYEMIN PARK 200812248
Contents
I. Introduction
II. Samsung Electronics
1. Localization
2. Globalization
3. Brand image
III.Conclusion
IV. Reference
Samsung Electronics is
• Name of Company: Samsung Electronics Inc.
• Number of employees: 85,085
• Vision:
Introduction 'Inspire the World, Create the Future‘
sales 400million dollars
of Company 2020,
The value of brand Top5
Developed
factors
• Maintenance of Superiority of Technology and
Product
• Differentiation of Product – high growth, high revenue
• virtuous circle composition
Samsung Electronics is
• Samsung Electronics is …
1969. Foundation of Samsung
Electronics Industry. Inc
1970. Produce of Black & white TV
1984. Change of company name to
Samsung Electronics. Inc
1986. Produce of semiconductor
and entry to international market
2002. Selection as one of the world
100 companies in IT field
2003. 3rd mobile phone
manufacturer in the world
Short life cycle
A. Fast-follower
B.
Intense innovation
 Creativeness < Quality of Product
 Individualism < Collectivism (Company culture)
Korean employees work 60hours per week
 Lower price strategy → Luxury brand image strategy
Short life cycle
A.
Fast-follower
B. Intense innovation
Tendency of Samsung Electronics
Localization
Globalization
U.K. – football sponsor
19million dollars /
year
3 billion 650million
dollars (2010 sales)
U.S. - Sponsoring NASCAR
(NASCAR Samsung Mobile 500)
Muslim – Solar cell phone
* Deficient electric power
* Sufficient amount of
sunshine
“Solar cell phone”
Etc.
U.S.- Foundation of STA
(Samsung Telecommunication America)
POLAND – Foundation of SEPM
(Samsung Electronics Poland Manufacturing)
HUNGARY – Foundation of
SEH
(Samsung Electronics Hungary)
Galaxy S – World wide product
5 Forces Model
Bargaining
Customers
distribution
Power of
center
Buyers
Threat of
Anyone
New
Entrants
LG
Rivalry
Among
i-Phone
Existing
Competitors
Blackberry
Main
Bargaining
components
Power of
developer
Suppliers
Normalof
Threat
cellphone
Substitute
Netbookor
Products
Services
Tablet
PC
5 Forces Model
(1) Competitive rivalry within industry
High
5 Forces Model
(2) Threat of new entrants
Low
Huge capital requirement
Strong R&D and market strategy required
Break customer loyalty of current companies
5 Forces Model
(3) Bargaining power of Buyers
High
5 Forces Model
(4) Bargaining power of suppliers
High
Manufacturers
Suppliers
5 Forces Model
(5) Substitute
High
Samsung’s Brand Image
“Innovation spirit” of Korea
“Korean consumer’s eager for
new things”
a significant edge over their
foreign competitors
Samsung’s Brand Image
• BRAND AWARENESS
• Theory…
▫ Ability to recall and recognize a brand
• … And Practice
▫ Interbrand: 19th rank in the Best Global Brands rankin
g (2010)
▫ Brandz: 68th rank in the TOP 100 Most Valuable Globa
l Brands (2010)
Theory on Brand Awareness
• 1986 (1st cellphone launch)
• 1988 (Olympic Games in SK)
• 1988-2002 (Penetration in the global market)
 3rd Brand for cellphones
• 2007
 2nd Brand for cellphones
• Nowadays
 “Samsung Unveils Plan to Become Top 5 Brand by 2020”
South Korea and Samsung
• “A ¼ of the population thinks
Samsung is a Japanese brand” (KOTRA)
• “South Korea winning hi-tech race”
• So both can help each other:
 Korea: to be recognized abroad,
and to attract foreigners
 Samsung: to consolidate its high tech image
references
• http://www.adbrands.net/kr/samsung_kr.htm
• http://www.phonearena.com/news/Samsung-rises-to-double-digit-smartphone-market-sha
re-in-Europe_id14848
• http://kr.blog.yahoo.com/jk0620/1457664
• http://zedomax.com/blog/2010/11/16/giorgio-armani-samsung-galaxy-s-smartphone-hitseurope/
• http://www.mobilenewscwp.co.uk/2010/11/samsung-boosts-team-in-content-strategy-push
/
• http://www.wizardjournal.com/tech-news/samsung-record-sales-sell-galaxy.html#ixzz16N
NbEeDK
• http://spark063.blogspot.com/2010/11/samsungs-diversified-business-portfolio_01.html
• http://streetmedia.wordpress.com/2010/10/12/samsung-hands-global-smartphone-brief-to
-edelman/
• http://www.theepochtimes.com/n2/content/view/45669/
• http://insurancemarketing.iblog365.com/2010/11/12/verizon-wireless-and-samsung-debut
-the-samsung-continuum-galaxy-s-smartphone/
• http://www.bookmarktechnology.com
• http://www.articlesbase.com/internet-marketing-articles/samsung-smartphone-lead-in-blo
gging-social-networking-application-with-mobile-web-technology-1771517.html
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and following acticle is written in French so I attached tanslations, sir!
http://www.sosandroid.fr/andropress/2010/09/15/samsung-presentait-sa-strategie-et-son-galaxy-tab-en-france-4919/
- Cellphones market41,6% of the market share in volume, 29,5% of the market share in value (as of July 2010)
- "Bada" operating system has the 3rd place (18,5% of market share) because it looks easy to use, so it make things easier for p
eople who are notso into "high-tech".
- Partnership with one the best mobile network operator in Europe: "Orange" (1 stin France, 1st in Poland, 2nd in UK, 3rd in Sp
ain, 3rdin Austria, 2nd in Belgium, 3rd in Portugal, 1st in Romania, 1stin Slovakia, 3rd in Switzerland - http://fr.wikipedia.org/w
iki/Orange_(entreprise) )
http://www.sosandroid.fr/andropress/2010/04/07/samsung-galaxy-s-un-smartphone-haut-de-gamme-arrive-3510/
- Samsung tries not to imitate but to go further than its competitor: better quality of sound, image, faster connections, more
applications, more intuitive…
-> INNOVATION, KOREAN KNOW-HOW in high-tech…
http://www.generation-nt.com/samsung-android-smartphone-marche-france-actualite-1037491.html
- 2ndranked brand in the worldwide market of cellphones
http://www.generation-nt.com/samsung-mobile-smartphone-leader-france-actualite-1078171.html
- Aggressive marketing strategy in France "Samsung Wave has become the best seller smartphone in France, within 6 weeks,
overtaking iPhone", "Samsung Galaxy Tab (…) will also be one of the pillars of its strategy and will directly compete against A
ppel’siPad", "Samsung clearly announced that it wanted the tactile Tab to be the best seller in France, by the end of the year"
-> DIRECT COMPETITOR: APPLE
http://en.wikipedia.org/wiki/Samsung_Electronics
- Basic pieces of information and History
http://issuu.com/interbrand/docs/bgb_report_us_version/1?mode=a_p
- Interbrand’s report on the 100 most valuable brands all over the world
- SAMSUNG #19: $19,491 m, + 11% "Samsung has been on the forefront of digital and design, developingnew products and i
ncreasing its presence in all its markets. Its salesgrowth, even in tough economic times, demonstrates its ability to effectively
hedge its portfolio of businesses. This year, Samsung sawstrong mobile phone sales. In the U.S., it also placed number one fo
rHDTV shipments and French-door refrigerators. But while Samsungcontinues to carve a reputation for itself and has maint
ained its price premiums, it would benefit from better brand consistency, as well as a unified brand promise."
- "Sony, the premier provider of networked consumer electronicsand entertainment, is becoming increasingly efficient, agile
andinnovative –although it still faces steep competition from Samsung."
(http://www.interbrand.com/en/best-global-brands/Best-Global-Brands-2010.aspx)
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http://www.brandchannel.com/home/post/2010/03/30/Sonys-New-Image-Doesnt-Fall-Far-From-The-Apple-Tree.aspx#continue
- "But electronics junkies can expect something fresh from the company: In an attempt to beat Samsung Electronics as the most popular flat-p
anel television brand, Sony has joined the 3-D craze with a technologically-advanced version that will debut stores in June."
-> COMPETITIVENESS with SONY
http://www.brandchannel.com/home/post/2010/10/12/Samsung-Future.aspx
- "Samsung Unveils Plan to Become Top 5 Brand by 2020"
- The entire article (and the videos) is very interesting… If you have time you should read it!
http://www.brandchannel.com/home/post/2010/08/24/Samsung-Digitas-Thr!veOn-Facebook-App.aspx
- Partnership with Facebook
- "New research from NPD shows that 20% of US adults have played a game on a social network site. Vying for a piece of that action: Thr!veOn
, a new Facebook app positioning itself at the intersection of social utility and gaming.
Thr!veOn, a collaboration between Samsung Electronics and Digitas, compiles photos, videos and updates posted on Facebook into customize
d, individual profiles that further define users’identities and incentivize use with a gaming element."
http://www.brandchannel.com/papers_review.asp?sp_id=1240
- "One of the best examples of the successful corporate revitalization is Samsung. In the mid 1990’s, Samsung Electronics’ chairman and senio
r management made a landmark decision. They decided that Samsung would no longer provide commodity electronics products to the world’s
retailers, including WalMart, but would instead focus on the development of innovative product design and stake out its own claim to become
a global brand. The company focused on product innovation and brand-design strategy, and saw a meteoric rise in sales and brand value in a f
ew short years.
The transformation of Samsung's image from manufacturer of commodity electronics to a product innovator and leader has provided global b
usiness with a stunning brand revitalization blueprint. In the 2005 Interbrand and Business "Annual Report: Global Brands"ranking, Samsun
g was rated as the 20th most valuable brand among the world’s top 100 global brands. The company’s brand value was assessed at $14.9 billio
n!"
http://www.boursier.com/vals/ALL/samsung-compte-atteindre-le-million-de-tablettes-vendues-cette-annee-eco-5253.htm
- Objective: 1 million sales of the Galaxy Tab by the end of the year (http://www.ft.com/cms/s/2/d189f330-e843-11df-8995-00144feab49a,dw
p_uuid=9a36c1aa-3016-11da-ba9f-00000e2511c8.html#axzz14bcCgkNs)
- Other competitors which are getting readyin Motion, Lenovo ou encore Hewlett-Packard (http://www.ft.com/cms/s/2/810271b8-e851-11df8995-00144feab49a.html#axzz14bc9D2S3)
http://www.laprovence.com/article/eco-france-monde/lomc-condamne-des-taxes-europeennes-sur-lelectronique
- Tariffs imposed at the UE’s border on electronic goods
http://www.laprovence.com/article/eco-france-monde/benefice-record-pour-samsung-au-2e-trimestre
- Samsung broke the record with its benefit in the 2nd trimester of 2010.
- But its leaders are pessimistic about the 3rdtrimester, because the lowered the price of memory cards and flat screens
- They fear the profitability will be affected by the competitiveness on the "smartphones" segment
http://www.laprovence.com/article/multimedia/le-secteur-de-la-high-tech-domine-le-classement-des-societes-plus-reputees-au-mon
- Ranking of the companies with the best image: SAMSUNG #22 with 71,62% for its Brand awareness rate
http://www.laprovence.com/article/technologies/bruxelles-condamne-neuf-fabricants-de-memoires-a-une-amende
- Conspiracy on the price of memory card between many companies, it is against the European "Antitrust Law"
- SAMSUNG was involved and had to pay 145,73 millions €
감사합니다!
Thank you!
谢谢!
Merci!
Kiitos!
Gracias!
Спасибо!