Project: Samsung 1. Executive Summary
Samsung Group is a South Korean multinational conglomerate company headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses, most of them united under the Samsung brand. It was founded by Lee Byung-chul in 1938 as a trading company. Over the next three decades the group diversified into areas including food processing, textiles, insurance, securities and retail. Samsung entered the electronics industry in the late 1960s and the construction and shipbuilding industries in the mid-1970s; these areas would drive its subsequent growth. Following Lee's death in 1987, Samsung was separated into four business groups – Samsung Group, Shinsegae Group, CJ Group and Hansol Group. Since the 1990s Samsung has increasingly globalized its activities, and electronics, particularly mobile phones and semiconductors, have become its most important source of income since to became perfectly positioned as one of the world’s recognised leaders in the digital technology industry. At Samsung Electronics, every challenge is seen as an opportunity.
Looking forward, it’s making historic advances in research and development of its overall semiconductor line, including flash memory and non-memory, custom semiconductors, DRAM and SRAM, as well as producing best-in-class LCDs, mobile phones, digital appliances and more. Leader in digital, Samsung, engaged in social work at the global level, it is multi-faceted group of companies for ethical. In Samsung Group and Samsung Electronics, products, people and business approach reflects the highest standards, putting the company in a position to contribute more effectively to the creation of a better world. At the gates of this new decade, Samsung Electronics is ready to "inspire the world and create the future", making this new vision of its new slogan. This vision reflects the dual commitment of Samsung Electronic's face on one side to inspire the community by exploiting their strengths, or new technologies, innovative products and creative solutions, and on the other to promote new values for the main reports that Samsung has with the industrial sector, its business partners and its employees. With these efforts, Samsung intends to contribute to making a better world, offering us all a richer experience.
As part of this vision, Samsung has developed a specific plan aimed to increase to $ 400 billion in revenues by 2020, thus entering the Olympus of the top five companies in the world. To this end, Samsung has defined three strategic approaches to management: Creativity, Partnership and Talent.
Samsung is excited about these prospects. From its past achievements, look to the future now exploring new territories, including health, medicine and biotechnology. Samsung intends to enter into new markets by positioning itself as a leading creative and becoming one of the main protagonists of the future. Each of us lives his life in a different way, but there is a question that remains the same for everyone? "What makes life better?" Whether it's family, love, wealth or education for future generations, Samsung is committed to making life better for everyone.
Samsung aims own this primary objective: to make the life of every human being better.
2. Problem to solve
Gaining market share
Gaining market share is an aggressive strategy business owners use to strengthen their organizations while weakening competitors. Securing more customers for the company means increasing revenues and decreasing revenues for others. Increasing market share is difficult, so the company must be up to the task.
According to that, Samsung decides to consider strategic innovations as the most important benchmarks for reaching a competitive advantage.
INNOVATION IN ACCORDANCE WITH SAMSUNG
“Leading Innovation”
Innovation is to look at the world with new eyes every day, in any aspect and shape or form
It is one of our fundamental corporate strategic pillars to ensure constant growth and prosperity
Samsung´s innovation has started to be viewed as a global benchmark and as an industry-leading role model, similar to the Japanese Kaizen culture and the American Six Sigma culture
Efficient decision making is a strong and vital part of success
(Martin Boermer, Vice President, Wireless Divisione)
"We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society"
3. Characteristics of the market
In the technological field Samsung has 7 main opponents : Nokia Corporation, LG Display, Toshiba Corp., Dell Company, Sony Corporation, SANYO Electric Co., Ltd and SK Hynix Inc. Here it is the Market share Product | Samsung world market share | Leading competitor | Market share | Year | DRAM | 40.3% | SK Hynix | 19.7% | Q3 2012 | NAND flash | 40.6% | Toshiba | 33.2% | Q2 2011 | Large-size LCD panels
(revenue) | 26.2% | LG Display | 25.8% | Q3 2011 | AMOLEDs | 97% | LG Display | 1~3% | 2011 | Lithium-ion batteries | 18.8% | Sanyo | 19.5% | Q1 2011 | LCD monitors | 18.2% | Dell | 12.9% | 2011 | Hard-disk drives | 9% | Western Digital | 31.4% | Q1 2012 | Televisions
(LCD,LED, Plasma,CRT) | 17.3% | LG Electronics | 14.7% | Q3 2011 | Mobile phones | 25% | Nokia | 24% | Q1 2012 | Digital cameras | 11.9% | Sony | 17.5% | 2012 |
All of these companies are cutting-edge on the international markets.
An important mention is for the famous “rival” Apple Inc.
Despite recent litigation activity, Samsung and Apple have been described as “frenemies” who share a love-hate relationship. Unbelievably Samsung is a major supplier for Apple, first providing memory for the early iPod devices in 2005, and Apple is a key customer for Samsung in 2012, its component sales were thought to be worth in the region of $8 billion revenue to Samsung, to the point where Apple CEO Tim Cook originally opposed litigation against Samsung wary of the company's critical component supply chain for Apple
However Apple Inc is not a manufacturing firm—it is a design firm. It dedicate the majority of its resources in control of the design and development of its products, it neither manufactures nor assembles the parts itself to produce any of its products.
