REPORT
A
on SAMSUNG
Prepared by
PREPARED FOR
MR. AWAL AL KABIR
FACULTY
DEPARTMENT OF MANAGEMENT STUDIES
FACULTY OF BUSINESS STUDIES
JAHANGIRNAGAR UNIVERSITY
SAMSUNG
Samsung Group is a South Lee Byung-chul in 1938 as
a trading company. Over the
drive its subsequent growth.
Korean multinational con- next three decades the group Since the 1990s Samsung
glomerate company headquar- diversified into areas includ- has increasingly globalised its
tered in Samsung Town, Seoul. ing food processing, textiles, activities, and electronics, par-
It comprises numerous subsid- insurance, securities and retail. ticularly mobile phones and
iaries and affiliated business- semiconductors, has become
es, most of them united under Samsung entered the elec- its most important source of
the Samsung brand, and is the tronics industry in the late income. In 2013, Samsung
largest South Korean chaebol. 1960s and the construction and begun construction on build-
shipbuilding industries in the ing the world’s largest mo-
Samsung was founded by mid-1970s; these areas would bile phone factory in Vietnam
Strategy Adoption
J ust a few years ago Samsung was struggling to
catch up in the smartphone market. Now it makes
that innovation. The company pivots and produces
more of them than anybody else and has Apple
quickly, coming out with a variety of devices. It sees
on the back foot, in addition to being the world’s
what the market responds to, pushes successes, and
largest technology company by revenue. It has
kills failures. And now, rather than just providing
boosted its profile and being listed as 21st valuable
a cheaper and lesser phone, it’s differentiated itself
brands in the world. Samsung is better than any-
with larger screens, different features, successful
body else at learning from its competitors. They’re
marketing, and delivering what consumers want.
very attuned to what competitors are doing and
Samsung seems to be more willing and able to put
what other people are bringing to market first and
their money to use. Samsung’s research spend is 5.7
observing what seems to be gaining traction, then
percent of its revenue, compared to 2.4 percent for
very rapidly coming up with their own version of
Apple.
Handsets and It solutions scales increased dramatically for APPLE and SAMSUNG .
BCG
MATRIX
Samsung mobile
As we can see, here is a matrix consists of four products. Samsung Galaxy s4 as STAR,
Samsung Galaxy Grand as QUESTION MARK, Samsung Galaxy Young as CASH COW,
and Samsung Feature Phones as DOGS. This classification based on selling volume and
intensity of demand of the respective product. There’s a chart based on selling volume and
demand of the product. Within three months galaxy s4 has been sold over 14.23 million
unit world since its relese. On the same amount of time Grand’s sale volume was 6.12 mil-
lion unit, Samsung Galaxy Young ‘s sale volume was 4.88 million and Samsung Star’s sale
volume was 2.55 million unit.
SWOTAnalysis
SAMSUNG Mobile
Buying Decision
Consumers
Controlling Factors
There is a servey done dends, allowing it to compete
on price and increasingly, offer
In the U.S., where the iPhone
is still pretty dominant, last
by Businessinsider.com shows features Apple hasn’t gotten to. year the company increased its
that 53% android smartphone Although, many would ar- advertising budget five-fold, to
buyers prefer Samsung Smart- gue that Apple chooses not to $401 million from $78 mil-
phone over any brand. include certain features Sam- lion. That’s $68 million ahead
Samsung seems to be more sung offers. of Apple, and more than $200
willing and able to put their By providing good products million ahead of its nearest
money to use. Samsung’s re- in affordable price, Samsung competitor in the Android
search spend is 5.7 percent of managed to reach every as- market. And that’s only a frac-
its revenue, compared to 2.4 pects of their customers. tion of its ad budget.
percent for Apple. That’s certainly been the case This huge marketing effort
Samsung is a diverse business for its flagship Galaxy phones. makes them the worlds num-
with chips, displays, and other Samsung’s advertising push ber#1 mobile handset produc-
technology. This pays divi- has been absolutely massive. ing company.
As we can see here consumers decision of buying Smartphone is mostly Samsung. Because it has wide range of
smartphones for rich as well as middle class buyers. For this reason There market share is also Higher than their
competitors.
Market
SEGMENTATION
Based on Price and Place
Market segmentation means that businesses
divide their markets into a few sections
with similar features, so that they can
target different groups of consumers and
produce merchandise or service for them.
Samsung being a mobile phone importing company in
Bangladesh focuses on urban area as well rural area, for
example, the Samsung Galaxy young in rural area and urban area
of Bangladesh. This segment involves “mass market, low- and
medium-end units to rural customers or high-end products to
urban customers”. To deal with an extensive product line, a mass
market capacitates Samsung to satisfy consumer needs. Because
Samsung enters Bangladesh’s market late, it faces challenges to
be succeeded in mass market. Furthermore, the rural market,
which is approximately 80% of the whole market, is aimed by
Samsung via the “low-end units”. However, because of the previous
businesses of “low-cost, low-end hansets”, Samsung had to
exploit a new “high-end smartphones like Samsung Galaxy s4” in
urban market. With the remarkable improvement of people’s living
standard, the quantity of high-end smartphones in urban
market in Bangladesh is increasing though the segment is not big.
Samsung Electronics regularly conducts the survey on the customers’
satisfaction about the entire life cycle of products and services (sales, in-
stallation, A/S) thereby understands the CS level and customers’ needs by
each section and reflects on the management strategy for the customer
satisfaction since 1992. Consumers see products as complex bundles of
benefits that satisfy their needs. We have selected Samsungs latest Flagship
smartphone Samsung Galaxy s4 in order to describe the levels of product
relevantly. People who buy a Samsung Galaxy s4 device are buying more
than a cell phone, an e-mail device, or an organizer. They are buying
freedom and on-the-go connectivity to people and resources.
PRODUCT
The Levels of
Samsung Mobile
Aftersales service
Augmented Product
Connectivity
Core product
The SmartPhone
Actual Product
P
NEW
RODUCT
Development Process
S amsung Electronics Co. (SEC) of Seoul, Korea, is perfecting its funda-
mental approach to product, process and personnel development by
using Six Sigma as a tool for innovation, efficiency and quality.
SEC was founded in 1969 and sold its first product, a television receiver, in
1971. Since that time, the company has used tools and techniques such as
total quality control, total process management, product data
management,enterprise resource management, supply chain
management and customer relationship management. Six Sigma was added
to upgrade these existing innovations and improve SEC’s competitive po-
sition in world markets. The financial benefits made possible by Six Sigma,
including cost savings and increased profits from sales and new product
development, are expected to approach $19.4 billion by the end of 2013.
Strategic Objective
SEC wants to be a borderless, global brand that is a household word
wherever its products and services are available. SEC’s strategic objective
is to create both qualitative and quantitative growth and deliver competi-
tive value to all stakeholders—customers, partners and
shareholders—while maintaining profitability. The objective is focused on
the value chain of the company’s four major businesses—home, mobile
and office networks and core components. The emphasis is on creating a
solid framework for these businesses by optimizing the supply chain to
make operations as efficient and timely as possible.
To achieve the goal of efficiency and timeliness, SEC has integrated Six
Sigma into its entire business process (see Figure 1, p. 15). SEC saw the
universal adoption of Six Sigma throughout the company’s 16 business-
es worldwide as the way to perfect its fundamental approach to product,
process and personnel development.
When implemented strategically, Six Sigma continually to ensure a win-win alignment of
individuals with company goals. Six Sigma’s role
can help companies turn over working capital
faster, reduce capital spending, make existing in improving development and manufacturing
capacity available and new capacity unneces- operations has been well-documented. But not
sary, and produce even better results from the many people realize Six Sigma is making a ma-
design and R&D functions. Such outcomes also jor impact in a wide range of new functions and
foster a working environment that stimulates processes.
employee development, motivation, morale, These include transactional activities such as
empowerment and commitment, leading to in- completing an invoice, designing procedures
creased opportunities for promotions. The four to improve cycle time and improving processes
factors that have made Six Sigma successful in human resources, accounting, business plan-
throughout Samsung’s international operations ning, sales, call centers and customer services.
and culture are: In fact, all business processes are candidates for
• Strong proactive support with required resourc- Six Sigma. Samsung’s finance and marketing
es people have begun to embrace it. One reason
provided by top management. this wider range of employees can participate in
• Acceptance and implementation of Six Sigma’s Six Sigma is that advanced computer software is
basic disciplines by employees. making statistical tools easier to use.
• Linkage with all innovative and infrastructure
activities.
• Accurate and fair evaluation of all successful Six
Sigma projects, with meaningful recognition and
rewards for employees.
A flattening of SEC’s organizational structure,
making
it much easier for key decisions to be made at
lower levels, was another factor contributing to
Samsung’s successes from Six Sigma. BBs and
MBBs are encouraged to act as change agents.
Career development
paths for these internal experts are evaluated
PRICING
High End
Galaxy S 4 seems to be the most compact, lightest, and
fastest among all cellphone devices. Samsung Galaxy S
4 is Samsung’s, and perhaps even Android’s, best phone
yet. In fact, it very well may be the best smartphone on
the market, period. It features 5 inch display, 2 GHz octa
core processor, 2 GB ram and android jelly bean.
Samsung Galaxy s4
Mid Range
Samsung has now introduced the Galaxy S4 mini. A
mid-range smartphone for those who prefer a smaller
device at a lower price point. While the name may imply
that the Samsung Galaxy S4 mini is simply a miniatur-
ized S4, the device specs are a far cry from what you’ll
find in Samsung’s flagship Android device.there are also
other types of sets like Samsung grand,core etc.
Samsung Galaxy s4 mini
Low End
For middle class people who can’t afford much, Samsung
has announced a new Android phones under its Galaxy
series, Samsung Galaxy Young. The smartphone is
powered by Android Jelly Bean 4.1 and 1 GHz processor.
Samsung Galaxy Young will feature a 3.27 inch full touch
HVGA resolution screen and 3 megapixel camera at the
back.
Samsung Galaxy Young
ADVERTISEMENT
SYSTEM
A
Headquarters is in charge of the PR functions,
where as each business unit°Øs marketing
t Samsung Electronics, all of their ad-
team is in charge of the product advertise-
vertising activities are designed to provide
ments.
the public with accurate information on who
The same principle lies at overseas subsidiaries
they are and what they make through fair and
and branches pursuant to Samsung Electronics’
high-quality advertisements, thus helping cus-
ethical guidelines and global marketing
tomers with their buying decisions.
strategies. Most advertising made for Korean
consumers is outsourced to advertising
Advertisement worldwide media and
agencies. In these cases, the TV advertisement
potential customers, recognize that creating a
is released on media after careful examination
good image through mass media is as
by the organizations of advertisement
important as innovative products. Samsung
consultation to make sure that the ad meets
also is highly aware of the fact that delivering
legal and moral concerns. For printed
overall company and product information
advertisements, the in-house
accurately to shareholders is significant for
committee conducts an examination with
their investment decisions. Since they
ethical code after their public release. With
understand that a ripple effect is part of the
production made for overseas consumers,
advertising process, they are attentive to every
overseas subsidiaries and branches carry out
detail, from meticulous planning to the final
advertising activities mostly related with
release on media. In a broad sense, Samsung
product advertisements and firmly abide by
Electronics’ advertisement is centered on the
the laws, regulations and moral concerns of the
empowerment of corporate brand identity and
country in which they operate.
product. In Korea, the PR team at the Seoul
Sensitive touch feature NFC Feature Group Play Feature
W seems to be more willing and able to put their
hen Samsung wants to get behind some- money to use. Samsung’s research spend is 5.7
thing, it can do so with considerable weight. percent of its revenue, compared to 2.4 percent
for Apple.
That’s certainly been the case for its flagship
Galaxy phones. Samsung’s advertising push has Samsung is a diverse business with chips,
been absolutely massive. displays, and other technology. This pays
n the U.S., where the iPhone is still pret- dividends, allowing it to compete on price and i
ty dominant, last year the company increased ncreasingly, offer features Apple hasn’t gotten
its advertising budget five-fold, to $401 million to. Although, many would argue that Apple
from $78 million. That’s $68 million ahead of chooses not to include certain features Samsung
Apple, and more than $200 million ahead of its offers.
nearest competitor in the Android market. And
that’s only a fraction of its ad budget.
Apple has a huge cash pile, but Samsung
Market Share of smartphone producing firms Advertisement of Samsung
CONCLUSION
THE
Samsung MOBILE is an entertainment powerhouse. If anyone is looking for
a phone that can offer excellent photo and video quality, with excellent choices
for live and on-demand TV, this company can be the for anyone. The screen is
gorgeous, the battery life is impressive, the camera/camcorder capture every-
day memories with excellent quality, and the gaming experience is fun of this
brand’s product.
RECOMMENDATIONSamsung mobile phones are generally of good design. If one do not
require high technology functions, buying a cellular phone for basic use may
only be what is necessary. Some cellular phones are for basic use including
Samsung cellular phones. It is more reasonable to buy basic cellular phone
models if one do not need to play with the cellular phone and Samsung cellu
lar phone may be what is the best for anyone.
Some of those trying to find the functionality of a Samsung earned him
the nickname of some bad phone, but very well. Its good because the designs
are excellent and the battery life is good. A bit difficult because some of the
features of high technology and not on mobile phones from Samsung, in par
ticular, is a mobile phone for basic use.
Some basic complaints encountered Samsung phone, which happens
only very few people who moved and are called the generation of scratches
and the volume distorted. This is only a few users, and make sure they do not
feel that this is a Samsung, you can ask the friendly staff recommendation for
the Samsung.
For some who could not wait, buy a Samsung mobile phone is still a
clear choice, because the designs are upbeat and beautiful. A big advantage is
that the battery life is longer than other phones. Just enjoy the basic functions
and beautiful design for Samsung mobile phones.
