Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Prepared for:
Prepared by:
ID: ZR 1603028
Methodology ........................................................................................................................ 5
Data sources:........................................................................................................................ 5
Products ............................................................................................................................. 10
Mobile phones ................................................................................................................... 10
Semiconductors................................................................................................................... 10
Televisions .......................................................................................................................... 10
Others ................................................................................................................................ 11
SAMSUNG ELECTRONICS Vision ........................................................................................... 11
Statement: Inspire the World, Create the Future .................................................................. 11
SAMSUNG ELECTRONICS Mission:........................................................................................ 12
SE's Basic Organogram: Internal .......................................................................................... 12
Sustainability – SAMSUNG ELECTRONICS.............................................................................. 13
Porters Five Forces of Samsung Electronics .......................................................................... 16
PESTEL Analysis of SAMSUNG ELECTRONICS ......................................................................... 18
SWOT Analysis of SAMSUNG ELECTRONICS .......................................................................... 19
KSF (Key Success Factor) for SAMSUNG ELECTRONICS ........................................................... 23
Industry Group Analysis of SAMSUNG ELECTRONICS ............................................................. 25
Industry Drivers of SAMSUNG ELECTRONICS......................................................................... 26
Basic Generic Strategy of SAMSUNG ELECTRONICS ............................................................... 30
SMART Objective: SAMSUNG ELECTRONICS ......................................................................... 31
Supply Chain Strategies of SAMSUNG ELECTRONICS Bangladesh ........................................... 32
Value Propositions of SAMSUNG ELECTRONICS .................................................................... 33
Profit Formula of SAMSUNG ELECTRONICS ........................................................................... 34
Strategic Levels of SAMSUNG ELECTRONICS ......................................................................... 34
Balanced Scorecard of SAMSUNG ELECTRONICS ................................................................... 34
Strategic objectives: ............................................................................................................ 34
Financial objective: ............................................................................................................. 34
Conclusion .......................................................................................................................... 35
Introduction
Samsung Electronics Co., Ltd. is a South Korean multinational electronics company
headquartered in Suwon, South Korea. Samsung Electronics is the largest tech giant in the
World right now. Through extremely complicated ownership structure with some circular
ownership, it is the flagship company of the Samsung Group, accounting for 70% of the
group's revenue in 2012. Samsung Electronics has assembly plants and sales networks in
80 countries and employs around 308,745 people. It is the world's 2nd largest information
technology company by revenue. As of October 2017, Samsung Electronics' market cap
stood at US$372.0 billion.
Samsung has long been a major manufacturer of electronic components such as lithium-ion
batteries, semiconductors, chips, flash memory and hard drive devices for clients such as
Apple, Sony, HTC and Nokia. It is the world's largest manufacturer of mobile phones
and Smartphone fuelled by the popularity of its Samsung Galaxy line of devices. The
company is also a major vendor of tablet computers, particularly its Android-
powered Samsung Galaxy Tab collection, and is generally regarded as pioneering
the phablet market through the Samsung Galaxy Note family of devices. Samsung has been
the world's largest television manufacturer since 2006, and the world's largest
manufacturer of mobile phones since 2011. It is also the world's largest memory chips
manufacturer. In July 2017, Samsung Electronics overtook Intel as the largest
semiconductor chip maker in the world.
Methodology
Data sources:
Primary sources-
Primary data sources as follows:
Day to day experience
Conversations with colleagues
Conversations with management
Companies weekly
report Secondary sources-
Secondary
data sources as follow:
Different reports on Samsung Electronics and Samsung Electronics Bangladesh
(Official and unofficial)
Internet
Company website
Samsung Electronics officially started its journey in Bangladesh in 2009. In 2010 it started
its R&D section naming it Samsung R&D Centre Bangladesh. This R&D was the first ever
R&D centre in Bangladesh. Because of huge talent pool of engineers Samsung (Both
marketing and R&D) is growing rapidly in Bangladesh. Sasmung Electronics also started its
manufacturing journey in Bangladesh very recently(2017). With the collaboration of
Transcom Digital and Fair Distribution Limited it has started manufacturing Television,
Oven and Refrigerator.
At Samsung, we believe in "Innovative meaning" is the philosophy behind everything we
do, and we aim to create the most customized platform for you and make your life easier.
To make you say "wow" every time you use Samsung products. Samsung has always
worked with passion to develop technologies that will help you to follow your passions-
today and tomorrow. Our electronic products range from smart devices like smartphones,
tabs, smart TVs, refrigerators and many more. All of our electronic products have superior
quality and unparalleled performance. Starting from the manufacturing to assembly, the
process is under unbending scrutiny and exceptional quality control. Guided by a very
simple philosophy – always work for a better tomorrow. This philosophy has inspired us
for more than seventy years. Whether its computers or Smartphone, washing machines or
televisions, our products are always designed with an eye toward a better future.
Samsung Products
To devote it's employees and technology to create superior products and services
for human being.
Is being a Global IT organization
Is to create value in the field of society and environment
Is people first
Samsung is here to
Innovate
Deliver breakthrough technologies that enrich people’s lives.
Offer best-in-class safety and quality.
Make human life as much comfortable and hassle free as possible
Automate life and let the machine do all the work
Give Bangladesh and Bangladeshi the ultimate taste of technology
Samsung
Strongly believes in ownership
Treats the business as its offspring
Always intends to lead not to follow
Always wants to be the best
For over several decades, Samsung has been committed to transforming people’s lives
through its products and social initiatives. Every year, leading institutions recognise
Samsung for its various initiatives as well as product design & innovation in audio visual,
home appliance, IT and telecom product categories. Read below for few of our recent
awards.
BRAND RECOGNITION
AdGully DIGIXX awards: 2017
TRA Most Trusted Brand: 2017
Brand Equity Most Trusted Brand: 2016
Brand Equity Most Trusted Brand: 2015
CSR
Golden Globe Tigers Award: 2015
Golden Peacock Award: 2014
DESIGN
Mobility Excellence Award: 2017
Exhibit Tech Awards: 2015
INNOVATION
Global Mobile Awards: 2017
SERVICE
Customer Experience Awards: 2017
Customer Fest Awards: 2016
Customer Fest Awards: 2016
TeleAnalysis Leadership Awards: 2016
Samsung always considers its customers, employees and stakeholders as partners. All of
them are considered not only as business partners but also as family members. So when
Samsung talks about family it means all the consumers, stakeholders and employees.
Life is changing way too faster than we can imagine. Technology is helping to this rapid
change. People have less time and a lot of things to do in its short life span. Samsung is
committed to make human life easier. In order to do that Samsung always talks about
innovation. It tries to innovate and develop a new product in every quarter. In the
electronics industry Samsung is not only taking the lead but also helping other tech giants
to move forward with the new invented technology. Because Samsung always believes in a
philosophy that is "Helping you is helping me, helping others is helping me"
1969:
Samsung Electronics is established.
1971:
The company exports its first black-and-white television to
Panama. 1978:
Samsung Group enters the semiconductor market by forming Samsung Semiconductor and
Telecommunications Co.
1983:
The company enters the personal computer market.
1984:
The firm officially adopts the name Samsung Electronics Co.,
Ltd. 1988:
Samsung Electronics and Samsung Semiconductor
merge. 1992:
The company develops the world’s first 64M DRAM.
1994:
Sales increase after the 4-megabit DRAM chip is
developed. 1995:
Exports reach $10
billion. 1997:
The company battles the Asian economic
crisis. 1999:
The firm undergoes a major restructuring, and profits reach $2.4
billion. 2017:
Sales reach $46.99 billion
Products
Mobile phones
Samsung's flagship mobile handset line is the Samsung Galaxy S, which many consider a
direct competitor of the Apple iPhone
Semiconductors
Samsung Electronics has been the world's largest memory chip maker since 1993
Televisions
Samsung manufactures the smartest Television till date. In 2009, Samsung sold around 31
million flat-panel televisions, enabling to it to maintain the world's largest market share for
a fourth consecutive year.
Others
In the past, Samsung produced printers for both consumers and business use, including
mono-laser printers, color laser printers, multifunction printers, and enterprise-use high-
speed digital multi-function printer models. They exited the printer business and sold their
printer division to HP.
In 2010, the company introduced some more energy efficient products, including the
laptop R580, netbook N210, the world's-smallest mono-laser printer ML-1660, and color
laser multifunction printer CLX-3185.
Samsung has introduced several models of digital cameras and camcorders including the
WB550 camera, the ST550 dual-LCD-mounted camera, and the HMX-H106 (64GB SSD-
mounted full HD camcorder). In 2009, the company took the third place in the compact
camera segment. Since then, the company has focused more on higher-priced items. In
2010, the company launched the NX10, the next-generation interchangeable lens camera.
In the area of storage media, in 2009 Samsung achieved a ten percent world market share,
driven by the introduction of a new hard disk drive capable of storing 250Gb per 2.5-inch
disk.[103] In 2010, the company started marketing the 320Gb-per-disk HDD, the largest in
the industry. In addition, it was focusing more on selling external hard disk drives.
Following financial losses, the hard disk division was sold to Seagate in 2011.
In the MP3 player segment, Samsung has launched products including the M1 MP3 player,
and the world's-smallest DivX MP3 player R1.
In 2014, the company announced that it was exiting the laptop market in Europe.
In 2015, Samsung announced a proposal for a constellation of 4600 satellites orbiting
Earth at 1,400 kilometres (900 mi) altitude that could bring 200 gigabytes per month of
internet data to "each of the world's 5 billion people". The proposal has not yet advanced to
full development. If built, such a constellation would compete with previously-announced
satellite constellations currently under development by OneWeb and SpaceX.
The Vision 2020 is at the core of our commitment to create a better world full of richer
digital experiences, through innovative technology and products. The goal of the vision is to
become a beloved brand, an innovative company, and an admired company. For this, we
dedicate our efforts to creativity and innovation, shared value with our partners, and our
great people. We have delivered world best products and services through passion for
innovation and optimal operation. We look forward to exploring new business areas such
as healthcare and automotive electronics, and continue our journey through history of
innovation. Samsung Electronics will welcome new challenges and opportunities with joy.
SAMSUNG ELECTRONICS Mission:
Samsung grew into a global corporation by facing challenges directly. In the years ahead,
Samsung dedicated people with continue to embrace many challenges and come up with
creative ideas to develop products and services that lead in their markets. Their ingenuity
will continue to chart Samsung's course as a profitable, responsible global corporation.
At Samsung, our sustainability management aims to create integrated values. Not only do
we create economic values by maximising profits and shareholder values, but also we take
on a stronger responsibility as a global citizen to create social values. As we deliver
innovative products and services along the value chain which is based on the core values
we pursue at Samsung, we generate values in the fields of economy, society, and
environment. We monitor the financial and non-financial impacts that we exert on society
throughout such process so that we maximise our positive impacts while minimising any
negative ones.
Samsung Sustainability Management System
The mean is Maximize profits and shareholder values (Products and Services
Innovation) of Economic value.
The mean is contribute to social sustainability (Attainment of the UN SDGs) of social
value.
Our endeavours to bring innovative technology and products pave the way to generate
profits and secure new growth drivers. We strive to embed innovation into the fabric of our
corporate culture while creating synergies through the use of external resources to pursue
open innovation. In so doing, we take a step closer to building an ecosystem to develop
innovative products that cater to the needs of today’s rapidly-shifting market.
As a global corporate citizen, we at Samsung create social values in a way that is aligned
with the UN Sustainable Development Goals (SDGs): Especially, we pinpointed goals that
are highly relevant to our business conduct and are analysing our negative/positive impact
in attaining these goals. Furthermore, we will discover and fully explore business
opportunities that contribute to reaching the UN SDGs.
Creating Value through Sustainable Management
At Samsung, we strive to create social and environmental values as well as economic values
through our sustainability management so as to contribute to the betterment of the global
society. Since such social and environmental values are difficult to quantify, we took a
‘quality over quantity’ approach in setting and managing our sustainability management
goals. Since 2016, however, we have adopted the ‘True Value’ method of KPMG that
quantifies social and environmental indicators so that we can visualize the values that we
create.
The positive (+) and negative (-) numbers of respective indicators represent the total social
values that we either created or reduced over the past year by December 31st of 2016. This
approach enables us to go beyond mere financial values generated through business
conduct and include socio-economic and social values to ultimately paint the whole picture
of the True Value that we create at Samsung.
Threat of substitutes:
The threat of substitutes for Samsung is moderately high. There are several competitors
like LG, Sony and more international and local brands that offer competing products and
services. The switching costs for the customers are low. The factors that moderate the
threat from the substitutes are a great brand image, technological innovation and similar
more factors like customer convenience.
Competitive rivalry between the existing players:
Competitive rivalry between the existing players in the electronics industry is intense. The
main reason is that there are several large brands like LG, Apple, Microsoft, Philips, Toshiba
and more. The level of rivalry is very high and it is why the new brands too find it difficult
to enter the market. The largest players are well known brands and there are several
factors that have led to higher competition in the market space. These brands have to
depend on technological innovation for growth and deeper market penetration.
PESTEL Analysis of SAMSUNG ELECTRONICS
Political
In most of the markets where Samsung operates, the political environment is conducive to
its operations and though there are minor irritants in some of the foreign markets like
India, overall Samsung can be said to be operating in markets where the political factors
are benign. However, in recent months, it has faced significant political headwinds in its
home country of South Korea because of the country’s tensions with North Korea wherein
the company has had to take into account not only the political instability but also the
threat of war breaking out in the Korean Peninsula. Apart from this, Samsung faces political
pressures in many African and Latin American countries where the political environment is
unstable and prone to frequent changes in the governing structures. Of course, this is not
yet a major cause for worry as the company has more or less factored the political
instability into its strategic calculations.
Economic
This dimension is especially critical for Samsung, as the opening up of many markets in the
developing world has meant that the company can expand its global footprint. However,
this dimension is also a worry since the ongoing global economic crisis has severely dented
the purchasing power of consumers in many developed markets forcing Samsung to seek
profitable ventures in the emerging markets. The key point to note here is that the
macroeconomic environment in which Samsung operates globally is beset with uncertainty
and volatility leading to the company having had to reorient its strategies accordingly. The
saving grace for the company is that it has adjusted rather well to the tapering off of the
consumer disposable incomes in the developed world by expanding into the emerging and
the developing markets. Indeed, this is the reason Samsung has begun an aggressive push
into the emerging markets in the hope of making up for lost business from the developed
world.
Socio-Cultural
Samsung is primarily a South Korean Chaebol or a family owned multinational. This means
that despite its global footprint it still operates from the core as a Korean company.
Therefore, there are several aspects to its global operations some of which include adapting
itself to the local conditions. In other words, Samsung being a Global company has had to
act locally meaning that it has had to adopt a Global strategy in many emerging markets.
Apart from this, Samsung has had to tailor its products to the fast changing consumer
preferences in the various markets where it operates. The key point to note here is that
Samsung operates in a market niche that is strongly influenced by the lifestyle preferences
of consumers and given the fact that socio cultural factors are different in each country; it
has had to reorient itself in each market accordingly.
Technological
Samsung can be considered as being among the world’s leading innovative companies. This
means that the company is at an advantage as far as harnessing the power of technology
and driving innovation for sustainable business advantage is concerned. This has
translated into an obsessive mission by the company to be ahead of the technological and
innovation curve and a vision to dominate its rivals and competitors as far being the first to
reach the market with its latest products is concerned. however, as we shall discuss later,
this has also resulted in the company cutting corners with its imitation of the legendary
Apple’s product design and this has brought legal and regulatory scrutiny and troubles for
the company. There is a lesson here for other technology driven companies from Samsung’s
experiences and it is that no matter how fast you are to reach the consumer in this age of
Big Bang Disruption, doing the basics right is still the key to success.
Legal
As mentioned in the last section, Samsung has had to face heavy penalties for its alleged
imitation of the Apple’s iPad and iPhone and this has led to the company taking a beating as
far as public perceptions and consumer approval of its strategies are concerned. It remains
to be seen as to how the company would wriggle out of the legal maze that it finds itself in
the developed markets because of the various lawsuits.
Environmental
With the rise of the ethical consumer who wants his or her brands to source and make the
products in a socially and environmentally responsible manner, Samsung has to be aware
of the need to make its products to satiate the ethical chic consumer. This means that it has
to ensure that it does not compromise on the working conditions or the wages it pays to its
labor who are engaged in making the final product.
Samsung Group is one of the largest industrial groups in South Korea, operating
through a network of subsidiaries world. The company interested in more than 20
affiliates, and focuses on electronics, finance and service activities. Samsung electronics is
one of the world’s largest manufacturers of random-access memory chip.
1. Strengths
Customers are loyal and appreciating the brand. Samsung is enjoying very good
position against its competitors. The company is maintaining very good relationship
with its suppliers. The company is also maintaining with laborers. Samsung is a
financial strong and Stable. The production processes and procedures of inventory
management are consistent with industrial standards.
Hardware integration with many open source OS and software. Samsung is
focused on producing devices which can be integrated with most of the software
and OS. This gives Samsung products an edge over Apple’s (its arch rival)
devices, especially as Android and other OS are gaining market share when is
and OS X are losing it.
Excellence in engineering and producing hardware parts and consumer
electronics. Samsung is the number 1 by market share in televisions and mobile
phones sales and some of the hardware parts (processors, memory chips, etc.).
This was largely achieved due to excellence in engineering and both efficient and
effective production.
Innovation and design. In 2011, Samsung ranked second on the list of US top
patent assignees. More patents strengthen Samsung position among its
competitors. The firm also won many awards for the design of its products,
proving the superior advantage over the competitors.
Focus on environment. Samsung focuses on producing environment friendly
products that are free from PVC and BFRs (currently only MP3 and mobile
phones).
Ability to market the brand. Samsung is named as top rising brand by
Interbrains and is the 9th most valuable brand with value nearly $33 billion.
It has risen by 40% from 2011 to 2012. This was mainly achieved due to
company’s ability to market the brand in sporting events and social
contributions.
2. Weaknesses
Samsung is facing hard competition. South Korea’s labor unions are strategically linked
for collective bargaining and negotiation. Samsung need improvements in defining the
vision, mission and strategic corporate objectives. Marketing management needs
improvement in all the facts of marketing. HRM also needs improvement in all the facts
of human resources management.
Patent infringement. Samsung is infringing Apple’s and some other firms’
patents, thus, damaging its reputation and having to pay a huge amount of
money in damages.
Too low profit margin. Samsung Electronics is the largest technology
business in the world in terms of revenues but it has a low gross profit and
net profit margins. Although its smartphones business is quite profitable,
Samsung’s profit margin is low due to its semiconductors sales and
aggressive price cuts.
Main competitors are also largest buyers. Apple, Sony, Dell, HP are the main
buyers of Samsung Electronics products as well as the firm’s main
competitors. Such situation would be favorable to Samsung (if competitors
could not find complementary products and would form a relatively low
share Samsung’s revenues) because it could use its bargaining power over
competitors. Due to reverse conditions (competitors can find complements
and they form a relatively high share of firm’s revenues) Samsung cannot use
its bargaining power
Form a relatively high share of firm’s revenues) Samsung cannot use its
bargaining power over competitors as it can easily lose its customers and
sales.
Lack its own OS and software. Software and OS production has a high profit
margin, can increase integration of company’s products and brand loyalty.
Without strong software and OS Samsung is at disadvantage over its
competitors.
Focus on too many products. Samsung Electronics serves 4 different
industries with many different products in them. Samsung is at disadvantage
over its competitors because it loses a focus when competing in too many
industries and too many products.
3. Opportunities
The economic condition of South Korea seems favorable. Samsung is interiorizing the
social shifts. It is having constant policy given by the government. Samsung is
reasonable equipped to take care of technological changes. Samsung is maintaining
good international relationship with other.
Growing India’s smartphone market. India’s smartphone market is one of the
least penetrated among Asia/Pacific countries. Samsung has a strong presence in
India’s market and could use this opportunity to expand its sales.
Growing mobile advertising industry. The company could develop advertising
platform for its mobile devices and significantly benefit from this lucrative
market.
Growing demand for quality application processors. Samsung is one of the key
manufacturers of application processors for smartphones and tablets. The
growing demand for these products requires best quality application processors
that only Samsung provide.
Growth of tablets market. Tablets market is expected to grow in double digits
over the next few years. Samsung business has a strong position in tablets
market and could expand it by introducing newer, better quality tablet models,
such as its current galaxy line.
Obtaining patents through acquisitions. The key to Samsung’s competitive
advantage is the large portfolio of patents. Patents can be discovered by
engaging in costly R&D or through acquisitions of other firms. Tries and the local.
4. Threats
Since its founding in 1938, SAMSUNG has maintained a mission statement that responds
both to its own change, and to new developments in the world: Economic contribution
to the nation, Priority to human resources, Pursuit of rationalism. Each slogan
represents significant moments in SAMSUNG’s history, reflecting different stages of the
company's growth from a domestic industrial leader into a global consumer electronics
powerhouse.
In many evident said that: 1990's, SAMSUNG transformed its mission statement to keep
pace with its growing global operations, rapid changes in the world economy, and
escalating competition from well established rivals.
SAMSUNG management philosophy represents its strong determination to contribute
directly to the prosperity of people all over the world. The talent, creativity and
dedication of SAMSUNG people are key factors to its efforts, and the strides they've
made in technology offer endless possibilities to achieve higher standards of living
everywhere.
SAMSUNG management believes that the success of SAMSUNG contributions to society
and to the mutual prosperity of people across national boundaries truly depends on
how they manage their company. SAMSUNG goal is to create the future with its
customers.
So it is doubly welcome to hear Samsung Electronics Co. has developed the world's first
60-nanometer, 8-gigabit NAND flash memory chip and 80-nanometer, 2-gigabit DDR2
DRAM chip. It demonstrated once again Korea's technological prowess as a global IT
power. Samsung's latest feat is especially meaningful, as the company not just sharply
upgraded the memory chip technology but solidified Korea's control of the world
market. The technology is all but revolutionary: a small memory card applied by 60-
nano, 8-Gb NAND flashes can store 1.02 million pages of a newspaper, 16 hours of
movies and 4000 MP3 music files. It surpasses Intel Corp., the world's leading
semiconductor maker, which remains at the 65-nano level. The 80-nano, 2-Gb DDR2
DRAM chips have also upset the prevailing industry view, by expanding the capacity
through just designing and processing technologies.
Behind Samsung's success is keen insight into the industry's future direction and bold
investment in manpower and technology, which should serve as a role model for other
Korean businesses.
One of the fastest growing profit and innovation centers of the global technology giant.
Today, Samsung is the world's second largest semiconductor company behind Intel
Corp, with over a third of the company’s $US56.7 billion global revenues (2005)
generated by the semiconductor business.
The Korean powerhouse, showing no signs of slowing down, currently holds #1 global
market share in 3 major memory products DRAM, SRAM and NAND Flash, and
Samsung’s Semiconductor Business is pleased to be enjoying an era of unprecedented
growth in this important technology area.
Samsung’s efforts to develop its human resources and attract the world’s smartest
innovators, inventors and designers are fundamental to our success in creating the next
technology.
Samsung attracts and retains some of the brightest and smartest in the global
technology industry, offering opportunities for international growth, development and
education of its staff in 120 offices across 57 countries through international work
placements, scholarships and postgraduate study opportunities.
From its inception as small export business in Taegu, Korean, and Samsung has grown
to become one of the world’s leading electronics companies, specializing in digital
appliances and media, Semiconductors, memory, and system integration. Today
Samsung innovative and top quality products and processes are world recognized. This
timeline captures the major Milestones in Samsung history; showing how the company
expanded its product lines and reach, grew its revenue and market share, and has
followed its mission of marketing life better for consumers around world.
A company’s success is measured not only by business achievements, but also by how
well its serves its community, protects our planet’s resources, and makes a difference in
people’s lives. Samsung embraces its responsibility to contribute as a good citizen,
taking action around the world to foster a better society, protect and improve the
environment, and strengthen our communities.
Samsung is comprised of companies that are setting new standards in a wide range of
business, from electronics to financial services, from chemicals and heavy industries to
trade and services. They share a commitment to creating innovative, high quality
products and services that are relied on every day by millions of people and businesses
around the world.
Creativity, collaboration and excellence are the hallmarks of leadership at Samsung. By
attracting the world’s most talented managers and continuously evolving our
company’s culture to support them, and improve the everyday lives of our customers.
Strategic group means group of companies within an industry that have similar
business model or combination of strategies. There are several tech based companies in
Bangladesh. They are shown in the graph below:
Among these companies Samsung has the biggest customer base but in terms of quality
and price we can put Samsung under same group with Apple.
Integrity Management
Samsung Electronic integrity management focus on established compliance team
towards for realizing their vision in expansion global market. In 2011, they have
expanded their Global Legal Affairs & Compliance Team from two hundred to two
hundred seventy employee for more effective operation.
The compliance program divides to 3 compliance awareness that is prevention,
monitoring and follow-up. In prevention awareness it is include of employee education,
compliance manual, compliance self-test system, operation of a help desk, sensing on
laws and regulation and report. The monitoring process focusing on regular and non-
regular monitoring by members of compliance organization units. The last component
is the post management/ follow up that consist analysis of case of incompliance to
identify improvement measures and employee training for prevention of recurrence. In
order to establish on internal awareness compliance Samsung has to strengthen and
developed the training program for existing and new employee.
Patent
The patenting issues on technology now is major problem from preventing imitate of
Samsung Electronics product. They have failed in defending their designed against
Apple and have been sued in total USD 1 billion. In addition, as the competition in IT
technology is ever emphasizing, while the intention of various IT technologies is in
trend, the patent resists are bound to become aggressive. Besides that, the rapid
technology innovation cycles that has increased patent competition. Samsung
Electronics increased the strength of their workforce importantly and reorganized the
patent related organization for purpose to protect their know-how in technology
.To sustain in technology competition in 2010 the rapid decision making resulting in
establishes the Intellectual Property Center (IP Center), that affiliated with the Samsung
Advanced Institute of Technology ( including hiring outside expert
Samsung strategy on securing pattern issues is by partnerships. Samsung Electronics
proved the huge strength of their patent protection portfolio by signing cross patent
contracts which allow a broader cross use of patents with other global IT companies.
They collaborate with Qualcomm (mobile phones), Rambus (entire semiconductor
products), Sharp (LCD panel module) and in Kodak (camera technology), and in 2010,
also followed by deals with Microsoft (MS) and IBM for the cross license of technologies
of the mobile phone operation system. The same strategy also applied by Samsung in
using pattern license of Google Android operating systems. From the partnership they
also gain new innovative in production future technology.
Mutual Growth
Samsung Electronics expanding their support programs for outstanding 1st tier
suppliers to become worldwide companies, and we start providing different support
policies for 2nd - and 3rd -tier companies to achieve shared growth. They developed key
programs to support supplier shared growth including technological supports, training,
also provision of support funds. They then strengthened communication and more
carefully listened to their suppliers through an effort including a visit by top
management to their suppliers. Samsung announced shared growth implementation
policies; financial support programs for 1st and 2nd tier suppliers, support for 2nd tier
supplier competitiveness building, increased trade opportunities, technology innovation
contest, cultivation of global SMEs (Small Medium Enterprise) and incentives for 1st tier
suppliers with good shared growth practice. According to Samsung Sustainability
Report 2012 they also plan take different kind of shared growth promotion measures
including co-development of core parts for boosting the competitiveness of suppliers,
inclusion of shared growth performance indicators in performance assessments of our
employees responsible for supplier collaboration and responsive adjustment of raw
material price changes in supply contracts, free use of patented technologies, support
for patent registration of new technology developed by suppliers.
Shared growth management implementation plan focus on ; establish a supplier
support fund ; elevated qualified 2nd and 3rd tier suppliers into 1st tier supplier ;
cultivate global SMEs ; implement fast-track ' Temporary Supplier Registration Policy'
for SMEs with Innovative ideas or new technology. As for the share growth on expected
benefits to suppliers is focusing on; funding for investment in facilities and R&D; access
to greater supplier benefits, improved credibility in market; strengthened reputation as
official partners of Samsung electronics; increased business opportunities for
companies without prior business relationship; increased sales of supplier products
with funding and technical support; more transparent and responsive communication
between suppliers and Samsung
In order to capitalize on the growing video gaming market, we intend on entering into a
partnership with Microsoft to develop a virtual gaming product. Short term, we would
like to couple 3D TV technology with a dominant video gaming console like the XBOX
360. By the year 2020 we intend on launching a virtual gaming product.
2. Maintain market dominance throughout the “ Glasses “ and prepare the market for
a 3D TV
Samsung already established a firm hole on the 3D market, we would like to maintain
our position as market leaders in 3D technology with the use of 3D glasses. As the
market evolves closer to glasses free technology, they would like to prepare the market
for our product release in 2014. They objective is to see them market share remain at
88% until the release of our glasses-free product in 2014.
Samsung always tries to follow its objective statement following the SMART objective
criteria. Currently Samsung Electronics Bangladesh's objective is
"Achieve 10% sales growth than last year in mobile sector within Q4 of 2018"
Specific: 10% sales growth than last year
Social
We request that international standards and regulations be abided by in the areas of
human rights management, work environment, ethics, and conflict mineral issues with
an aim to build an open and transparent management accountability system that
engages all stakeholders along the supply chain.
Environmental
We work solely with Eco Partner-certified suppliers so that we can assess and manage
the environmental impact that may occur in their components, raw materials, and
manufacturing process.
Samsung Electronics focuses on cost structure. It keeps high price of its products so that
people understand the superiority of the product as well as they can feel they are
enjoying the best technology available in the market.
Strategic objectives:
Remain number 1 tech giant
Remain number 1 electronics company in Bangladesh
Increase customer base
Increase customer satisfaction level to the maximum
Financial objective:
Increase number of stakeholders
Increase net profit by 200% in the current year
Cost effective organizational structure
Conclusion
Samsung electronics has dramatically grown as one of the world's leading electronic
giant with branches all over the world. Now millions of Samsung electronic products are
being manufactured and sold every day and its product is seen in almost every house
around the world. Samsung electronics has one of the best inventory management
systems, supply and distribution chain in the world and its products are unique and
durable with dedicated, efficient work force. Also, its research and development
department is second to none in the electronic industry hence we decided to carry out
this in-depth analysis to access the various strategies they have being applying since
their existence and to advise them on the possible strategic options available to them
now and in the future.