Samsung Electronics Company - Case Study Example

Running Head: Samsung Company Samsung Electronics Company NAME: COURSE: INSTRUCTOR: DATE: Abstract As stated in its new motto, Samsung Electronics aim for the new generation is, "Inspire the World to Create the Future.”This new aim predicts Samsung Electronics commitment to inspiring its communities by giving Samsung's three key strengths: New Technology, Innovative Products, and Creative solutions and promoting new value for Samsung's core networks industry, partners and employees. Samsung has also established three strategic approaches in its own management: Creativity, partnership, and talent. Introduction Samsung companionship was supported in 1938 by Byng Chill Lee a glorious peninsula enterpriser. Lee began a small commerce company with a 2 000 article of furniture egg and approximately 40 employees. He named it Samsung, which it means. The company enjoyed moderate growth before the rival investors in 1950 forced Lee to leave his operations in Seoul. Looting soldiers and politicians on the two sides of the conflict finished his investment to almost nothing. Samsung is the chief supplier of South Korea's. Products produce by Samsung include televisions, communication equipments and computers. In 1970s its gain were achieved with the assist of the national government. Samsung struggled as the Rhee Sunman disposal increasingly resorted to favoritism and corruptness to maintain power in 1950s and 1960s. Samsung has highly-developed smart phones towards the end of the twentieth century. To this date Samsung is dedicated to the 3G industry. Vision, Mission, and strategy The mission of Samsung Company is to lead to the digital Convergence Revolution through which the innovative Digital Products and e-Processes are produce. It also focuses on nonindustrial eminent superior products and improves engineering in semiconductors telecom disposition and domestic appliances field. The long full term made Samsung is the most militant total result provider in digital convergence. The scheme to develop new markets and new approaches has led Samsung to become a trade name led engineering innovator. Its forte is to focus on its client needs and to adapt quickly to changes in user penchant. Simultaneously to the reorganization of its concern units Samsung accepted an intense inner alteration direction procedure where selling activities were bundled low one corporeal Center. The aim was to instrumentality a holistic selling scheme instead of idiosyncratic selling plans to strengthen its marketplace powerfulness and to addition trade name military capability with eminent superior and original merchandise. Samsung had to face the following challenges Create one global brand name and merchandising strategy establishing an area brand visual sense and brand name values to leverage brand name s success across B2C and B2B businesses. Dressed ore communication from customer to stakeholder position as communicating to non customer neutral groups becomes more and more of import having a strong unmediated brand impact. Increment communication cerebration from toll to investiture perspective along the integral brand geological formation. Expand position on chip semiconducting material market via cutting border technology and concentrate communicating to appendage consumers. Positioning Samsung Electronics high standing at figure 25 on the listing does t mean value it has the contest beat. Sony came in at 20 a place it has basically closely-held for the terminal cardinal old age 21 in 2002 20 in 2001. But Samsung s up rise from 42 in 2001 to 34 in 2002 to it’s nowadays position at 25 indicates that the brand has gathered impulse against its competition. The whole possibleness would rich person seemed improbable to more observers equitable five or six old age ago. At that clip Samsung was seen as a low caliber trade name in a street fighter user physical science manufacture Korean companies in full general were connected with bodied dirt and Asia was in a fiscal crisis. 24-hour interval the trade name s parent companionship Samsung grouping is the number one business grouping in Confederacy Korea border out Hyundai Group. Total sales for 2002 were reported at won 146,052 billion (US$ 116. Supported in 1938 the cabal now comprises 14 catalogued companies including divisions in recognition card game chemicals and securities. As South Korea s top natural philosophy company Samsung Electronics is the one-third largest natural philosophy maker in the universe behind figure one Sony and figure two Matsushita which counts Panasonic quasi-stellar radio source Techniques and JVC in its trade name portfolio. Some Sony and Matsushita are Japanese behemoths with period of play 50 old age of cognitive content in the global market. Brand personality Samsung has created a potent brand around innovation film editing edge engineering and universe class design. Alignment to its brand mental image Samsung resorted to a design contest to excite customers and involve the brand s community astir it’s approaching MP3 scope of physical science gadgets. To boost the Samsung trade name s hip image amongst the jar. crowd Samsung asked students to offering their concepts for a MP3 design. The idea resonated strongly among the pupil community to such an extent that Samsung standard a humongous 2000 designs for this contest. Samsung by resorting to so many activities achieves two briny benefits. Firstly it reinforces Samsung s strong connation to the brand community of interests by hook up youngsters early on to the brand to create trade name excitement. Secondly Samsung reinforces its trade name image of always being on the forefront of innovation and design. In a cut throat marketplace of proprietary consumer natural philosophy these advanced marketing methods to involve the trade name community offering great purchase to sustain long condition brand equity. The Samsung designing contest drives home the point that a potent brand always involves the community in its trade name building efforts to strengthen brand fairness beyond conventional brand communicating and media channels. Product Designing The rapid rise of Samsung lays design power. In the Archaean 1990s the firm began emphasizing the importance of designing its products. Its heights rises central office in Kangnam south of Seoul it locates the corporate designing center in which more than 900 full clip designers are housed. In the opening location were exclusive two designers in the entire companionship whose figure chromatic to 510 in 2005. Samsung overhauls its plan in every two year. For the number one twelvemonth it scrutinizes all the designing trends of the universe followed by merchandise strategies. It past maps out new designing plans during the forward year. Samsung s attempt to improve designing no recreational off since 2006 it has won as more as 210 awards from internationally esteemed designing establishments. For example it received the IF socialism Forum and IDEA plan awards. Samsung was the victor in cardinal categories in the 2009 thought awards the companionship that acceptable the most awarding. Proctor intelligence designing trends in their cities piece photography ethnic and life there is compelling reason for Samsung’s rise as a design powerhouse. Korea had for so abundant been advised a body of water for designing excellence especially compared to the Asian nation counterparts known for agitated out eye infectious appliances. Samsung established as many as seven designing centers in the universe s major cities including Milan and London as wellspring as in Seoul. The professional person designers’ workings in these centers constantly style alterations. In the 2010 IF stuff Awards Samsung won the gold awarding for 5 of its products including the characteristic hard disc drive. The F stuff Awards are given by the International Forum designing GmbH of Hannover one of the world s most prestigious designing awards for design materials and procedure technologies. In 2010 the European nation companionship had chosen a complete of 42 products in the areas of domestic contraption piece of furniture and blue-collar design. Samsung won the awards in five categories including characteristic hard disc full touching screen telephone side by side refrigerator powder compact digital photographic camera and optical maser printer tone of voice. Conclusion Like most Korean companies, the Samsung Group structure developed into a confusing maze of cross-ownership among affiliated companies. Therefore, Samsung Company owns 4.45% of Samsung Electronics, Samsung Life Insurance owns 8.16% and so on. By 1997, combined annual revenues of all the businesses in the group were close to USD 100 billion, with profits reaching USD 290 million. The Samsung Group constituted approximately 10% of the total market value of all companies listed on the Korean stock market. However, like all other cabals, its debt-to-equity ratio hovered around 365%. Reference SAMSUNG Retrieved (14, March, 2010) www,Samsung.com/sec/aboutsamsung/information/globalnetwork/globalnetwork01.html. In Korean. Samsung Electronics to move headquarters.Korea.net. (January 27, 2006) www.korea.net/news/news/newsview.asp. Sony vows comeback against Samsung, LG. The Korea Times. (September 7, 2009). http://koreatimes.co.kr/www/news/nation/2009/09/123 51434.html. Samsung Group Expects Record Profit of $12 Billion. The Korea Times. (September 1, 2009). http://Koreatimes.com.kr/www/news/nation/2009. The succession at Samsung. The Economist. (June 4, 2009). http://www.economist.com/businessfinance/displayStory.cfm. From obscure company to electronics giant. The Korea Herald. November 2, 2009. http://www.koreaherald.com/business/Detail.jsp. Pimentel, Benjamin (2005, 10, 14). Samsung fixed chip prices. Korean manufacturer to pay $300 million fine for its role in scam. Flynn, Laurie J. (2006, 03, 23). 3 to Plead Guilty in Samsung Price-Fixing Case. New York Times. Http://www.nytimes.com/2006/03/23/technology/23chip.html. "Samsung Sees Tough Chip, LCD Outlook". (October 29, 2010). International Business Times. http://www.ibtimes.com/articles/77055/20101029/samsung-sees-tough-chip-and-lcd-outlook-after-strong-q3.htm.  "Samsung surpasses Sony for the first time, taking over the No.20 spot". Interbrand. (July 21, 2005). http://www.ourfishbowl.com/images/press_releases/pressrelease_bgb2005.pdf. "BrandFinance250: The annual report on the world’s most valuable brands". (January 2007) brandfinance.com... http://www.brandfinance.com/Uploads/pdfs/BF250%20FINAL "Samsung extends lead in DRAM rankings". (August 9, 2010). Korea Times. http://www.eetimes.com/electronics-news/4206013/Samsung-extends-lead-in-DRAM-rankings-semiconductor Read More