SAMSUNG

Introduction
Samsung is one of the most successful companies in the world in terms of electronics
especially in smartphones & TV. Samsung is a Korean based company. Generally, it is a
chaebol. It was founded by Lee Byung-chul in 1938 as a trading company. Now days,
Samsung involves in many businesses in the world. It includes electronic technology,
semiconductors, skyscraper & plant construction, petrochemical, fashion, medicine, finance,
hotels, shipbuilding and more. Samsung Electronics today has more than 200 facilities and
offices in 79 countries, and is recognized as one of the worlds top 10 global brands.
Journey of Samsung
The journey of Samsung was not great. It was full of challenges. It faces many problems like
separation of business into other groups, struggling in terms of quality product, patent
violation case against apple etc. After all of the thing company is not only survived, it
became No. 1 Company in the world in smartphone business and still it is maintaining the
success. It proved itself as a great company.
In 1938, Lee Byung-chul founded Samsung sang hoe as a small trading company with 40
employees. In 1947, , Lee Byung-chul jointly invested in a new company called Samsung
Trading corporation with, Cho Hong-jai, founder of Hyosung group. After few years, Cho and
Lee were separated and Samsung group divided into Samsung group and Hyosung Group. In
late 1960s, Samsung group entered into electronic business. In 1980, after acquiring Gumibased Hanguk Jeonja, entered into telecommunications hardware business. In 1987, after
death of Lee, Samsung again divided into 4 different business groups. One of his son Lee
Kun-hee was became second chairman of Samsung group.
One day, Chairman Lee sent the new phone to business associates as a holiday gift. Some of
them reported that their phones did not work, and the chairman travelled to the warehouse
to sample the new models. Phone after phone failed. Build a bonfire, he said. The entire
stock of phones was piled outside, a towering heap of 150,000 phones. Two thousand
employees watched as the bonfire was lighted and the flames blazed, burning the phones to
ash. Bulldozers crushed the charred remains. The message was clear: never settle. Always
demand the best of yourself, the best of your work. This moment changed the life of
Samsung.
In 1990, Samsung started to rise as an international corporation. In 1992, Samsung became
the largest producer of memory chips in world and second in chipmaker after Intel. In 1993,
Lee downsized the company by sold off ten subsidiaries of Samsung group to concentrate
on three industries: electronics, engineering, and chemicals. In 1995, it started to produce
its first liquid crystal display screen and after 10 years of it, Samsung became world largest
manufacturer of liquid crystal display panel. In 1997, compared to other major Korean
companies Samsung survived unharmed from Asian financial crisis. In 2000, Samsung
opened a computer programming laboratory in Warsaw, Poland. Its work began with set-

top-box technology before moving into digital TV and smartphones. In 2010, Samsung sold
its hard disk drive business to Seagate to more concentrate on smartphone and TV business.
In first quarter of 2012, Samsung electronics became the worlds largest mobile phone
maker by unit sales.
REASON OF SUCCESS

There are many reasons behind the success of Samsung but major reasons are discussing
below:
1. Flexibility:
Flexibility is major reason for the success of Samsung. After facing separation of business
group, Company is still surviving only because of this. It is also spreading their business in
other field of market. The reason for success in smartphone business is also this. Company
used many operating systems like Bada, windows, android operating system for their
mobiles phones. Now it is turning towards new operating system Tizen. It was not sticking to
only one operating system as did by Nokia and blackberry. It changes its operating system
according to market and consumer need. Samsung introduced Bada to compete with Nokia.
Later it moved to android and windows for compete with Apple. These kinds of flexibility
make them superior of smartphones.
2. Innovation:
Samsung is always tried to introduce something new innovative product. The worlds first
256M DRAM is developed and proves Samsungs strength as the global leader in the
semiconductor business. Samsung introduce AMOLED type of unique display for
smartphones. Samsung also introduce concept of phablet with stylus e.g. Samsung galaxy
note. It also introduces curve TV concept. Samsungs 3DTV Cinema quality 3D experience
3Dimensional TVs add new depth and dimension to create larger than life experiences.
Samsung launched their new smartphone with secondary screen at edge of mobile e.g.
Samsung galaxy s6 edge. Samsung is also working on concept on bendable screen. Samsung
revealed latest TV called Serif which is single frame, one colour, and one shape as capital I.
Samsung also introduce innovation in marketing called Value Innovation Programme (VIP)
center, which helps in creating ideas for making gadgets more user friendly and trim
inefficiencies in the manufacturing and development process.
3. Hybrid management system:
Early Samsung was used Japanese management style. After globalisation they adopted
Hybrid management style which is combination of Japanese and western management
style. Samsungs hybrid management system introduced a focus on innovation into a
company optimized for continuous process improvement. And also merit pay and
promotion system put into an organization with a strong tradition of reverence for elders.
4. Vision of company:
The strong vision of company help in them to grow became a great company. After being a
chairman, lee set a vision that Samsung grows to be one of the worlds largest companies
with products in markets everywhere in the world. Lee said that change everything except

spouse and children. Lee send a strong message to his employee through build a bonfire.
The dedication of senior level management towards vision also enforces the lower level
people to achieve the goals.
5. Marketing strategy plan:
The marketing strategy plan here is given in two part marketing mix and SWOT analysis as
follows:
A) Marketing mix:
a) Product:
Samsung has a vast product portfolio. It have different products in different categories. As if
we talk about only electronic product, marketing mix of Samsung have generally 4 core
markets:
1) Home multimedia
a) TV = flat screen TV, curved TV, Plasma TV, Smart TV, HD TV etc.
b) Refrigerators = single door, double door
c) Washing machines = automatic, semiautomatic
d) Home Electronics =DVD players, Blu-ray players, home cinema systems, set-top boxes
2) Personal Multimedia
a) Cameras and Camcorders = android camera, digital camera
b) IT = laptops, printers, Projectors, PC
3) Core components
a) Semiconductors = DRAM, SDRAM, flash memory, and hard drives etc.
4) Mobile multimedia
a) Mobile phones = Android OS phone, Essential phone, Tizen OS phone, Tablet
Samsungs product line, Product length, Product width & Product depth is high. Thats
allowing more choices available to user. Vast product line helps company to attract more
people towards its brand.
Samsung has different variety of product with high quality have unique and user friendly
design.
b) Place:
Samsung has its own stores which can be found around the world, not only in Asia, but also
in America, Europe, Australia and Africa. Samsung has its stores located & also its service
centre at places where it is closes to the customer reach. At the stores, we not only can buy
the product that sold, but also feel the experience of digital lifestyle. Its own branch stores
allow them to handle less storage & distribution of goods.
c) Price:
Samsung sells product with a price thats worth, if we compare it with the functions,
benefits and technology. Samsung is in the process of building an image as a stylish, high
quality brand commanding a premium price. It has different products available at different
price. It have for range of product for lower class people to higher class people like e.g.
Essential phone for lower class at 1150 Rs and Galaxy note 5 for high class people. Again
wide price range allows satisfying need of different class of people. This company is for all
class.
d)Promotion:
Promotion is major part of strategy of Samsung. For Promotion they used lots of technique

to get concentration of people. They do advertisement through newspaper ad. by showing

information and advantages of product. They also advertise by sports like football, racing
games etc. they do advertise by sponsorship like sponsoring the different TV serial, Olympic
games. It also does advertisement by putting large hoardings or banner. Their products are
also been used in various movies which is also been used as a marketing base. It also been
done by TV advertisement. They also promote brand by help of brand ambassador like in
India Amir Khan Etc. They also give their products as gift in sports events. These all
promotion strategy helps Samsung to attract people to buy their products and positioning of
product into mind of customers.
B) SWOT Analysis: SWOT analysis helped Samsung to know their power, weakness. The
SWOT Analysis of Samsung is as follows:
a) Strengths:
Existing knowledge and experience of electronics market allow introducing innovating
products. Strong global presence with strong brand and customer base shows their
popularity. Well diversified and differentiated product line, to meet changing customer
needs. Samsung electronics has 4 business areas to cover customer electronic needs. Design
with an attractive styling that catching the pulse of customer, as the result of the
development of Samsungs new products that involve team of product designers. Loyal
customer & customer satisfaction & cost competitiveness by mass Production. With an
excellent research and development capabilities, they spend a high percentage of revenue
on R&D. It resulted in global leadership in the television segment and mobile segment, and
in improving its position with their innovative products.
b) Weakness:
Customer perception of weak product attributes like durability and quality because many
time its products failed to show up-to mark performance. Samsung continue launching their
product with similar design. There are no significance changes in design of high level and
low level product especially in mobiles phone. They are not pro-active coming out with
unique and leading model. They focus on mass market instead of niche market.
c) Opportunities:
There are lots of opportunities available in market for Samsung to improve more. There is
Increasing on electronics consumer market because of population growth etc. There is
strong customer demand for innovative products & value-added features because everyone
wants to keep themselves updated with new products. There is high % of Younger
population, which can be expanding a new market now and in the future.
d) Threats:
There is increase in competition in market. There are many new competitors coming in the
market which giving very tough competition e.g. Xiomi, Micromax etc. There is Economic
Slowdown and demands for electronics product are weak. The sticking with old design may
lose customer to other companies.
All the above things are showing that how Samsung got success. How the small trading
business changed to global business and developed as a brand.

Summary
Samsung is established itself as a global brand. Early it was only small company but now a
day it deals with lots of businesses. It has very challenging history. Due to strong
commitment towards quality products and innovative products it became leader of
electronics market. Samsung has various quality points like flexibility, Management system,
marketing strategy etc. made them successful company in the world.