A SUMMER TRAINING PROJECT REPORT

ON
SAMSUNG

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF

DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION 2016-2019

UNDER THE GUIDANCE OF: MR. SHAKTI SHARMA

SUBMITTED BY: AMARJEET SINGH

PRN NO: 1628100912

BHARATI VIDYAPEETH DEEMED UNIVERSITY SCHOOL OF

DISTANCE EDUCATION
Academic Study Center-BVIMR, New Delhi

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 DECLARATION

I Amarjeet Singh student of fourth semester of Bachelor of business administration in the

academic year 2016-2019 at Bharati Vidyapeeth Institute of Management and
Research hereby declare that I have completed project industrial exposure Title
“SAMSUNG” as a part of the course requirements of Bachelor of Business
Administration.

I further declare that the information presented in the project is true and original to the best
of my knowledge.

Date:

Place: New Delhi (Amarjeet Singh)

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 ACKNOWLEDGEMENT

I wish I express my sincere gratitude to Mr. Shakti Sharma, for providing me an

opportunity to do my project work on “SAMSUNG”.

I sincerely thank Mrs. Shakti Sharma for their guidance and encouragement in carrying out
this project work. I also wish to express my gratitude to the officials and other staff
members of Samsung Company who rendered their help during the period of my project
work.

I also thank the director of Bharati Vidyapeeth Institute of Management and Research
for providing me the opportunity to embark on this project.

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 PREFACE
Practical Knowledge is an important suffix of theoretical knowledge. One cannot rely
solely on theoretical knowledge. Classroom lectures clarify the fundamental aspects of
management, but they must be correlated with the practical training situations. It is that
ideology that practical knowledge should be made mandatory for the curriculum and has a
significant role to play in the fields of business management.

I have put in my sincere efforts to make this INDUSTRIAL EXPOSURE project a real
success. My project is on “SAMSUNG”, its impact on the market as the largest automobile
player and on the economy. This study would help to understand the position and the
growth of the company and analyse the people survey about the quality and services of the
company.

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 CONTENTS
Chapter 1: Introduction to Company
1. Nature of Business

2. Type & ownership Pattern

3. Organizational Structure
4. Production Lay out
5. Organizational Policies

Chapter 2: Industrial Analysis

1. Industry Overview - (Growth rate of Industry, Contribution to GDP)
2. Current Issues (From Newspaper, Journals -For Company and Industry)
3. Key Competitors
4.Environmental Scanning -Political environment, Economic environment, Socio-Cultural
Environment, technological environment, environmental issues (Green environment) and
Legal environment.
5. Porters five forces model of competition -Michael Porter

Chapter 3: Marketing Strategies

1. Products of Company
2. 4 Ps (Product: Price, Place & Promotion)
3. STP (Segmentation, Targeting and Positioning)
4. Distribution Channels
5. Promotion Strategies

Chapter 4: Financial Analysis

1. Sources of Finance
2. Ratio Analysis-Any 5
3.Net Profit/Balance sheet (from annual report)-Analyse

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Chapter 5: Key Learning’s from the Company and
Recommendations
1. Performance Analysis of the Company
2. Reasons for the expansion/contraction/diversification of Company
3. Comment on Organizational Leadership
4. Market share/growth rate of Company
5. SWOT Analysis of the Company

Chapter 6: Findings
Chapter 7: Conclusions and Suggestions
Bibliography

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 SAMSUNG

Chapter 1: Introduction to Company

Full Name: Samsung Group

Founded: 1938
Founder: Lee Byung-chul

CEO: Jong-Kyun Shin

Industry: Manufacturing
Sector: Public
Country: Korea, South
Website: samsung.com
Samsung is a Multi-national South-Korean Company founded in 1938. It was originally
meant to be a trading company. Right now, it has a number of holding companies and
subsidiaries united under the brand name of Samsung. It is the largest South Korean
conglomerate.

Samsung History
Samsung started in 1938 as a small trading company located in Su-dong near Daegu city.
It was founded by Lee Byung-chul. He had only forty employees and the company’s major
business was production and distribution of groceries within the city.

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In 1947, as the company began to grow Lee put up their office in Seoul. He soon started a
sugar refinery which also succeeded in a very short span of time. Lee was a very ambitious
person and in 1954 built the largest woolen mill in Korea located in the suburbs of Daegu
city.

Soon he had ventured into various other sectors like insurance, retail and securities. He was
a firm believer in industrialization and wanted that Samsung Group to become the industry
leader in almost all the sectors. In the 1960’s the Samsung Group entered the electronics
industry confidently.

It was relying on the huge capital that it had at disposal for making new innovative
products. Very soon Samsung was able to release its first product which was a black and
white television set. By now it has more than 6 divisions each focusing on individual
products like the semiconductor, telecommunications, hardware, etc.

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1. Nature of Business
Samsung electronics is a company with its capital in Samsung Town Soul, South Korea.
Samsung Electronics unlike other electronic companies started it business operations on
other products and not electronics. It started off as fish exporter vegetables and fruits
exporter in China which was the business activity of the founder Byung-Chull Lee in
1938. Samsung expanded its activities again for the second time and also not in the
electronics arena. It expanded to ship building, financial industry, chemicals and the
media industries. This was in the years 1958 throughout to the 1970’s. In 1969, Samsung
officially kicked off its business venture in the electronics industry. It called itself
SAMSUNG Electronics. It first started off with its most famous product the Samsung
TV, the mobile phones arena, computer components, radios, and other electronic devices
like the Samsung fridges. This was their core business all through the 90’s to date. They
have expanded their electronic base opening branches in other countries outside South
Korea its founding country. It has also improved its technology keeping up with the
industry dynamics. Samsung expanded its operations building more factories in the US,
Thailand, Mexico, Britain, China, Germany and Spain until 1997. This was after the
founder passed on and the chairman ship taken over by Kun-Hee Lee in 1987. Samsung
continued with its quest to be the leading electronic company with its development of
the lightest phone back in 1993 during the time the SCH-800. It has proceeded to
develop smartphones which are some of the global’ most prestigious phones like the
Samsung Galaxy S3, S4 and the new Samsung Galaxy Note 3 starring some of the new
features missing from the best phones of their competitors. Towards the end of 20th
century Samsung Electronics in the phones arena incorporated mp3 player capability
into some of their phones making it an innovator in the technology industry. Samsung
has ventured into approximately 56 countries to date. It has employed a whopping
138,000 employees in all of their 124 offices that are globally available. Despite Africa
missing out in the Samsung’s 1990’s expansion to the global market, the company has
moved its business operations to Africa. Of all the smartphones bought in Africa,
Samsung a larger percentage than its competitors. In Africa and Middle East, it leads
with a 36.4% up from 24.4% in 2012. A survey conducted by Q3 places Samsung as the
highest handset seller currently. Samsung in 1993 designed their new logo in a bid to
globalize. It changed the writings in the logo to the English language to reach the global
market and for easy readability. Samsung engraved the logo inside a blue oval elliptical
shape that was meant to symbolize the global change and the advancement. The blue
background represents the reliability, stability and warmth that the company in itself
offers. The Samsung Company enjoys some internal strength and it too has a share of
internal weaknesses. The internal strengths and weaknesses mostly emanate from the
Pricing, Product, and Promotion and Place issues. These are mainly the 4Ps. Samsung
boasts a wide range of products unlike any other electronic company in the industry. It
has an assorted array of products ranging from its first products the TV sets, radios,
cameras, laptops, printers, microwave ovens, washing machines air conditioners,
refrigerators and DVD Players. This gives them a head competitive advantage over their

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 competitors who have a short list of variety. In the array competition, LG comes close
with relatively close number of different products as Samsung does. Samsung has a
weakness of production of relatively expensive products; this is an internal pricing
problem. In the phones production sector, Samsung produces relatively expensive
phones which have no market in the developing countries.

2: Type & Ownership Pattern

Institutional Ownership
Institutional Summary as reported in the most recent 13F filings

Institutional Holdings 00.04%

Total Number of Holders 3

Total Shares Held 54,252
Total Value of Holdings 119,896,920
Net Activity 8,515

Top 5 Holders of Institutional Holdings

1. JACKSON SQUARE 50,047

PARTNERS, LLC
2. ARISTOTLE CAPITAL 3,905
MANAGEMENT, LLC
3. CHICKASAW CAPITAL 300
MANAGEMENT LLC
4.
5.

SSNLF Ownership Overview

Samsung Electronics Co Ltd (SSNLF) Ownership Summary provides a snapshot of
institutional holdings and activity for a stock. The institutional holdings summary data
encompasses the holdings and change from most recent 13F filings. The insider filer

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 data counts the number of monthly positions over 3 months and 12-month time spans.
Summary data is calculated daily, using the most up to date information available.

3: Organizational Structure
Samsung Organizational Structure: Divisional according to Product Types
Samsung organizational structure is divisional, and the company is divided into three
key divisions: IT & Mobile Communications (IM), Consumer Electronics (CE), and
Device Solutions (DS). The rationale behind the choice of divisional organizational
structure relates to Samsung’s large product portfolio and differences between products
and services the company offers to the market.
Accordingly, Samsung’s each division is managed separately considering the
characteristics of their products that have implications on new product development,
marketing, selling and other aspects of the business. Moreover, Samsung Electronics
has more than 200 subsidiaries around the world.
Figure below illustrates Samsung organizational structure:

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 Samsung organizational structure
As it is illustrated in figure above, apart from three divisions, Samsung organizational
structure also integrates corporate management office and Samsung Advanced Institute of
Technology (SAIT). Corporate management office deals with overall management of the
group and also has administrative responsibilities. SAIT is Samsung Group’s R&D hub,
established as the incubator for the development of new products and services.

The senior management completed its review of optimal organizational structure on April
2017 and decided not to convert to a holding company structure. Following a series of
recent scandals involving Samsung management that culminated in Jay Y. Lee, the former
de facto head of the Samsung conglomerate being jailed for 5 years, it can be argued that
Samsung organizational structure will change in the foreseeable future. Specifically,
Samsung organizational structure may change to make governance and decision-making
practices more transparent to eliminate or at least to reduce the cases of future scandals.

Samsung Group Report contains a full analysis of Samsung organizational structure. The
report illustrates the application of the major analytical strategic frameworks in business
studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey
7S Model on Samsung. Moreover, the report contains analyses of Samsung leadership,
business strategy and organizational culture. The report also comprises discussions of
Samsung marketing strategy and addresses issues of corporate social responsibility.

4: Production Layout
In a five-storey building in the central Korean industrial city of Gumi, a young woman
may be snapping together your brand-new Samsung Galaxy S5 right now. We took a
small group trip to Samsung's Galaxy S5 factory line to see how your phone is coming
together.

About 120 miles south of Seoul, Gumi is a government-designated factory city that
churns out electronics for export. Samsung's "smart city" complex makes some of the
company's top smartphones, and it's flanked by similar factories owned by LG and other
major Korean industrial firms. If your phone says, "Made in Korea," it probably comes
from Gumi.

The Galaxy S5 parts come shipped in from around the world; what happens in Gumi is
primarily assembly, testing, and packaging. Robots that look like giant plotters spit chips

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 and diodes from long strips of plastic onto circuit boards, with some components as tiny
as two tenths of a millimeter. Once they're mostly assembled, they're handed over to
humans to remove some little bits of tape, press some boards together, snap on the backs,
test voice quality and put the S5s into their boxes for shipping.

Robotic trucks trundle along, pick up the boxes, read barcodes, and bring them to the
shipping floor. Unlike some other phone companies, Samsung does almost all of its
manufacturing in-house rather than outsourcing to big Chinese firms like Foxconn.

One of the most striking aspects of the line was how almost all the workers I saw were
young women. Checking out the factory roster, it looked like the assemblers were almost
entirely women, while the "repair" staff were almost entirely men. A Samsung rep later
told me that the Gumi assembly job is considered a solid position for girls to take out of
school. Some quit when they get married; others go to an extension university right on
the Samsung campus and get degrees.

I've been to other mobile phone factory lines in China, and – big surprise – Samsung's
Korean facilities are newer, brighter, physically smaller, and more tightly focused. Using
a "cell system" where four staffers work in tandem rather than a traditional assembly
line, the Gumi factory can churn out tens of thousands of phones a day, Samsung said.

Samsung Helicopter
We travelled to the Gumi plant on Samsung's helicopter shuttle service. Any Samsung
employee with a business-critical reason can take the shuttle, which hops between Samsung
offices in Seoul, Suwon, and Gumi.

Samsung Gumi
Samsung's campus in Gumi makes smartphones, fiber optics, and other electronics. Yes,
there's a park in the middle with a red British telephone box in it. No, it doesn't have an
actual telephone in it.

Samsung Galaxy building

The Galaxy S5 phones are assembled on two floors of this building, as well as in other
plants around the world. This building was assembling phones for Korean and Japanese
carriers, as well as AT&T in the US.

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Samsung Galaxy S5 packaged
One of the jobs of the women on the production line is to take the finished S5s and put
them with their manuals and cables into the boxes for shipping. A phone drops off a
conveyor belt and she assemble the components. When she has enough phones done, a cart
comes by to pick them up.

Samsung Galaxy S5 screen testing

Many of the manufacturing tests are automated, but humans double-check some aspects
that have subjective elements, such as screen quality and audio quality for calls.

Samsung Galaxy S5 assembly

Humans are still better than robots at some delicate assembly tasks where the amount of
pressure applied is critical, Samsung said.

Samsung Galaxy S5 camera checker

The tester here is making sure that your Galaxy S5's camera isn't grotesquely off.

Samsung Galaxy S5 assembler

This staffer just put the backs on the phones; they are then picked up and sent over to the
women who put them into boxes.

Samsung Gumi staff lounge

The Gumi plant has a library, video games, university extension courses, and three
cafeterias called "Noodle A," "Noodle B" and "Noodle C."

5: Organizational Policies
We at Samsung Electronics (“Samsung”) strive to drive positive change and contribute
to a better world through our innovative products and services. Our core values,
[people, excellence, change, integrity and co-prosperity] demonstrate our dedication

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 toward a brighter future for mankind and are at the heart of every decision we make.
Samsung ‘Global Code of Conduct’ is founded on five ‘Samsung Business Principles’
and ensure that we are holding ourselves to the highest standards in complying with
laws and ethics.
Samsung Business Principles
1. We comply with laws and ethical standards
2. We maintain a clean organizational culture
3. We respect customers, shareholders and employees
4. We care about the environment, health and safety
5. We are a socially responsible corporate citizen
All of us, as Samsung employees, are responsible for maintaining high ethical standards
and conducting business with integrity. Samsung’s employees are ambassadors of our
brand and in everything we do, we uphold Samsung’s standards of corporate social
responsibility, integrity and accountability. These ‘Business Conduct Guidelines’ were
written based on our ‘Global Code of Conduct’ for this very purpose: to help guide the
employees at Samsung in making sound decisions. Samsung respects and protects the
fundamental human rights taking into account international human rights principles and
standards set forth in the Universal Declaration of Human Rights, the UN Guiding
Principles on Business and Human Rights, the Organization for Economic Co-operation
and Development’s guidelines for multinational enterprises, the UN Convention on the
Rights of the Child, the ILO Declaration on Fundamental Principles and Rights at Work,
and the laws of the countries in which we operate. Samsung is a member of the Electronic
Industry Citizenship Coalition (EICC) and we conform to the EICC Code of Conduct and
its implementation methods across the company and our suppliers. The EICC Code draws
upon internationally recognized standards, in order to advance social and environmental
responsibility and business ethics.

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 Chapter 2: Industrial Analysis

1. Industry Overview- (Growth rate of Industry, contribution to GDP)

GROWTH RATE OF INDUSTRY: -

Samsung today recorded its biggest leap in profits for three years, up 50 percent year-
on-year, showing that there is far more to the company than the Galaxy Note 7 saga.

The Korean giant reported an operating profit of KRW 9.22 trillion ($7.92 billion) on
total revenue of KRW 53.33 trillion ($44.6 billion) for its Q4 2016 period. Samsung
said its component businesses — which are responsible for memory chips and display

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 panels — were the stellar performers with revenue rising 77 percent to $4.25 billion.
A strong U.S. dollar was also a positive factor for its business.
Those figures are in line with a forecast made earlier this month, and Samsung also
saw some growth for its annual financial figures. For 2016, it carded an operating
profit of KRW 29.24 trillion ($25.11 billion) on total revenue of KRW 201.87 trillion
($173.36 billion), that’s up 11 percent and 0.5 percent year-on-year, respectively.

Despite the recall of the Galaxy Note 7 for safety reasons — Samsung gave its side of
the story here earlier this week — being estimated to cost it $5 billion, the mobile
business “registered gains” courtesy of the continued popularity of the Galaxy S7 and
mid-range smartphones, the latter of which Samsung has increased its focus on.
Despite that, Samsung Electronics — the unit that the mobile business falls under —
saw sales drop around two percent year-on-year while profit was down 60 percent
over the same period. Samsung said the latter was down to “B2B investments.”

Looking to the new year, Samsung said its focus will be on integrating more artificial
intelligence into its products.

“Looking at the mid- to long-term, based on paradigm shifts in the IT industry from
the growth of IoT, AI and automotive businesses, new demand is expected to spur
growth in the components business,” it added.

Initially, though, the firm is expecting a tough first quarter of 2017 with “weak demand
for smartphones and tablets forecast due to seasonality.” It expects that its mid-range
devices — like the new Galaxy A and Galaxy J series — will sell well but it will
increase its spending on marketing and promotions during the quarter.

CONTRIBUTION TO GDP: -
We often bemoan the influence of big business here in the United States. And sure, a few
of our companies are monsters (I'm speaking strictly about size). But while the likes of
Walmart -- $444 billion in worldwide sales -- might be the corporate equivalent of a giant
Amazonian catfish, at least they're swimming around our $15 trillion economy.

In South Korea, it's apparently a different story. Samsung alone is responsible for 20
percent of the country's $1.1 trillion economy. For reference, government spending there

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also makes up about 20 percent of GDP. Here in the U.S., the federal budget makes up
about a quarter.

Now, when most Americans think of Samsung, we picture the electronics company
currently locked in a cage match with Apple over smart phone patents. But the Samsung
Group, as the mother conglomerate is known, is a sprawling network of some 80
subsidiaries that produced about $237 billion in sales last year. Samsung Electronics is the
crown jewel, and the country's biggest individual company. But the empire also includes
manufacturers that crank out armored vehicles, oil tankers, and appliances, as well as an
insurance company. It plays such an outsized role in the nation's economic life that,
according to Bloomberg Businessweek, South Korea is referred to in some circles as "The
Republic of Samsung."

Samsung is just the biggest of what South Koreans refer to as Chaebols, giant, family
owned conglomerates that essentially control industry. Its closest rival is the Hyundai
Motor Group, owner of the namesake car company and Kia Motors (and here you thought
they were rivals). Combined, the top 100 Chaebols own assets equal to the central
government. The four biggest, including Samsung and Hyundai Motors, own 46 percent of
that total.

2. Current Issues (From Newspaper, Journals -For Company and

Industry)
Samsung heir freed from South Korean jail amid corruption scandal that brought down
President Park Geun-hye

A South Korean appeals court on Monday suspended a jail sentence handed down to
Samsung heir Jay Y Lee, setting him free after a year’s detention amid a corruption
scandal that brought down the former president.

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Seoul High Court jailed Lee for two and a half years, reducing the original term by
half, and suspended the sentence for charges including bribery and embezzlement,
meaning he does not have to serve time.

Mr Lee, 49, heir to one of the world’s biggest corporate empires, had been detained
since last February.

President Park Geun-hye was dismissed in March after being impeached in a case that
brought scrutiny to the nature of the ties between South Korea’s ‘chaebols’ - big
family-owned corporate groups - and its political leaders.

Ms Park, who denies wrongdoing, is standing trial accused of bribery, abuse of power
and coercion.

A lower court in August convicted Mr. Lee for bribing Ms Park for help in
strengthening his control of Samsung Electronics, the crown jewel of the country’s
largest conglomerate and one of the world’s biggest technology companies, as well as
embezzlement and other charges.

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The court said Samsung’s financial support for entities backed by a friend of Park ‘s,
Choi Soon-sill, constituted bribery, including 7.2bn won (£4.5m) to sponsor the
equestrian career of Choi’s daughter.

Presiding senior judge Cheong Hyung-sik on Monday called the nature of Mr. Lee’s
involvement in Samsung’s monetary support for Ms Choi a “passive compliance to
political power”.

Prosecutors and Samsung did not have an immediate comment. Mr. Lee, whose face
was noticeably worn, did not show any emotion when the ruling was announced.

Prosecutors had sought a 12-year jail term for Lee. The ruling is expected to be
appealed again to the Supreme Court, legal experts said.

With the end of his year-long detention, which according to local media he adjusted
to with physical workouts and reading books, Mr. Lee could continue with his existing
roles including director of Samsung.

However, he has been found guilty of some lesser charges and is prohibited from
travelling outside South Korea without a judge’s approval, according to law firm Cho
& Partners.

The lower court ruling in August had said while Lee never asked for President Park’s
help directly, the fact that a 2015 merger of two Samsung affiliates did help cement
Mr. Lee’s control over Samsung implied he was asking for the president’s help to
strengthen his control of the firm.

His lawyers had strongly challenged this logic and said that the merger was done for
business reasons.

Some criminal lawyers had expected Lee to be found innocent of most of the charges,
as much of the evidence at the trial has been circumstantial.

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 But although he was set free from detention by the appeals court, the stigma may stick,
lawyers say.

“Public opinion will get riled up and people will keep thinking there was some quid
pro quo between Samsung’s Lee and the president,” Lee Jung-jae, a lawyer at law firm
Jung said.

3.Key Competitors
There is no doubt that Samsung is the leader where Smartphones are concerned. The
launch of Google Android has been a blessing for Samsung. Samsung has truly taken
advantage of the Google Android operating system and has some beautiful handsets
which have taken the world by storm.

Some of the widest selling Smartphone series belongs to Samsung. These are the
Samsung Note series, the Samsung Galaxy series as well as the Galaxy Edge series.
Samsung and Apple were the two companies which dethroned the dominator of the
mobile market – Nokia. Although Nokia has made a comeback, it has come back at a
time when Samsung is the king of the Smartphone world. Will Nokia be able to do the
same thing to Samsung? I doubt it.

Nonetheless, here are the top Samsung competitors, some big and some small.

3.1) Apple

Apple’s iPhone is without doubt the number 1 Samsung competitor when we talk about
high end smartphones. Almost every year, there are 3 smartphones sure to be launched.
One would be an iPhone, another a Samsung Note and the third Samsung galaxy or

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Samsung galaxy edge. iPhone was one of the first phones to come out in the market with
multi touch features.

However, although iPhone is loved by many, Samsung utilized Google Android to launch
several features of its own, including some awesome hardware. The Apple vs Samsung
(Android) debate is endless. Apple iPhone has the lion’s share of Smartphones in US and
it is second highest market share holder worldwide and is one of the strongest Samsung
competitors in the business.

3.2) Huawei

Huawei has repeatedly impressed consumers with its design as well as functionality of
its phones. Obviously, Huawei operates with strong penetrative pricing, which is
common for all Samsung competitors other than Apple’s iPhone and Google’s Pixel
(which operate on Skimming price strategy). There are ripe speculations that Huawei is
becoming a strong global contender to Samsung and Apple both.

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3.3) Xiaomi: - In 2015, Xiaomi was the world’s 4th largest smartphone maker. Xiaomi
is a privately-owned company operating from China. The best advantage to

Xiaomi is the Asian population which it can cover easily, mainly India and China, two
of the most populated countries in the world. Because of its massive distribution and
production capacity, Xiaomi is the third highest Samsung competitors in the world.

3.4) Oppo

Oppo came quite late in the picture but took away the market share which was going to
Micromax. Oppo left Micromax far behind with its well-designed smartphones which
were value for money. In fact, most distributors which were purely Micromax players
are seen more and more to side with Oppo. Oppo is also known very well for its well-
executed branding strategies at point of purchase. Oppo is the fourth highest Samsung
competitor in the world.

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 3.5) Vivo

Another Chinese company with the same advantages as Oppo, but which lacks the
marketing skills of Oppo is Vivo. Vivo started its business in 2009 and because of its
Manufacturing capacity and the wide market at its disposal, capture a good chunk of the
market share very fast. Within 3-4 years, vivo had established itself in 100 countries like
China, India, Malaysia and others. It closely follows the footsteps of Oppo in produce
design.

4.Environmental Scanning –Political environment, Economic

environment, Socio-Cultural Environment, technological environment,
environmental issues (Green environment) and Legal environment.

PESTEL ANALYSIS: - ''The PESTEL analysis is an analysis of the external macro

environment in which a which an organization operates. These are often factors which
are beyond the control or influence the business (RapidBi, 2013).
PESTEL will be used as a tool to analyze the Macro environment of Samsung.

Political environment: - Looking at the political environment, how the impact of politics
affecting Samsung globally, as much as Samsung is a good company not everybody sees
like that, due to the strong competition between Apple and Samsung it ended up
involving government in other countries. American government trying to stop Samsung
influences the Euro zone to block Samsung to have market around Europe. Specifically,
in German Samsung was forced to withdraw its Galaxy tablet. Also, South Korea stops
Samsung to operate in there due to the political differences between Japan and South
Korean government.

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 Economic environment: - Samsung has expanded its business to more than 58 countries.
Samsung mostly they invest heavily to the infrastructure in each end every country they
have a business in. Here in South Africa they bought a land whereby they going to build
the big plant, whereby it will manufacture or assemble its products for whole Africa, it
means there are employment opportunities coming and there is an opportunity for South
African economy. This plant is expected to employ more than 3000 people.

Social Environment: - Social trend in South African environment are constantly

changing as innovation technology and services have impact to the needs and wants of
South African communities. The stats show that there is an increase attraction to the
technology which has become the primary means of communication. Samsung find that
gaps to improving people's lives. The challenge is that many people do not know how to
use Samsung products in a proper way especially these new tablet phones. People steal
need to be educated on how to use these tablets phone that is a challenge of our societies.

Technological environment: - Technology in South Africa has advance and grown

rapidly over the years and has affected the way we do things here in South Africa.
Technology has change the way the business is done as social media has a crucial role in
sustainability strategy of most businesses. Samsung find a way of take a business out of
the building structure to the pocket. By introducing Galaxy Note 2 is more tablet like
than phone like, it means that you can do you work in the public transport, in the
restaurants, anywhere, without filling intermediated of carrying big machine.

Legal environment: - The South African government has decided in April of 2011, the
Consumer Protection Act68 of 2008 should come in operation. This might have a
negative impact to the company like Samsung because they have a tendency of dumping
their low-quality product in third world country to maximize their profit as they did in
India. There are strong labor laws in South Africa which might have a strong negative
impact to Samsung operating in South Africa as they intend to open a big factory in
Johannesburg as a distribution center for Africa; it will be a challenge to them if they
think they are going to exploit people in South Africa.

5.Porters five forces model of competition –Michael Porter

Michael Porter (Harvard Business School Management Researcher) designed various
vital frameworks for developing an organization’s strategy. One of the most renowned
among managers making strategic decisions is the five competitive forces model that
determines industry structure. According to Porter, the nature of competition in any
industry is personified in the following five forces:
 Threat of new potential entrants
 Threat of substitute product/services
 Bargaining power of suppliers

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  Bargaining power of buyers
 Rivalry among current competitors
The five forces mentioned above are very significant from point of view of strategy
formulation. The potential of these forces differs from industry to industry. These forces
jointly determine the profitability of industry because they shape the prices which can be
charged, the costs which can be borne, and the investment required to compete in the
industry. Before making strategic decisions, the managers should use the five forces
framework to determine the competitive structure of industry.
Let’s discuss the five factors of Porter’s model in detail:
5.1 Risk of entry by potential competitors: Potential competitors refer to the firms
which are not currently competing in the industry but have the potential to do so if given
a choice. Entry of new players increases the industry capacity, begins a competition for
market share and lowers the current costs. The threat of entry by potential competitors is
partially a function of extent of barriers to entry. The various barriers to entry are-
 Economies of scale
 Brand loyalty
 Government Regulation
 Customer Switching Costs
 Absolute Cost Advantage
 Ease in distribution
 Strong Capital base

5.2 Rivalry among current competitors: Rivalry refers to the competitive struggle for
market share between firms in an industry. Extreme rivalry among established firms
poses a strong threat to profitability. The strength of rivalry among established firms
within an industry is a function of following factors:
 Extent of exit barriers
 Amount of fixed cost
 Competitive structure of industry
 Presence of global customers
 Absence of switching costs
 Growth Rate of industry
 Demand conditions

5.3 Bargaining Power of Buyers: Buyers refer to the customers who finally consume
the product or the firms who distribute the industry’s product to the final consumers.
Bargaining power of buyers refer to the potential of buyers to bargain down the prices
charged by the firms in the industry or to increase the firms cost in the industry by
demanding better quality and service of product. Strong buyers can extract profits out of
an industry by lowering the prices and increasing the costs. They purchase in large

26
quantities. They have full information about the product and the market. They emphasize
upon quality products. They pose credible threat of backward integration. In this way,
they are regarded as a threat.

5.4 Bargaining Power of Suppliers: Suppliers refer to the firms that provide inputs to
the industry. Bargaining power of the suppliers refer to the potential of the suppliers to
increase the prices of inputs (labor, raw materials, services, etc.) or the costs of industry
in other ways. Strong suppliers can extract profits out of an industry by increasing costs
of firms in the industry. Suppliers products have a few substitutes. Strong suppliers’
products are unique. They have high switching cost. Their product is an important input
to buyer’s product. They pose credible threat of forward integration. Buyers are not
significant to strong suppliers. In this way, they are regarded as a threat.

5.5 Threat of Substitute products: Substitute products refer to the products having
ability of satisfying customers’ needs effectively. Substitutes pose a ceiling (upper limit)
on the potential returns of an industry by putting a setting a limit on the price that firms
can charge for their product in an industry. Lesser the number of close substitutes a
product has, greater is the opportunity for the firms in industry to raise their product
prices and earn greater profits (other things being equal).

The power of Porter’s five forces varies from industry to industry. Whatever be the
industry, these five forces influence the profitability as they affect the prices, the costs,
and the capital investment essential for survival and competition in industry. This five
forces model also help in making strategic decisions as it is used by the managers to
determine industry’s competitive structure.

Porter ignored, however, a sixth significant factor- complementariness. This term refers
to the reliance that develops between the companies whose products work is in
combination with each other. Strong complementary might have a strong positive effect
on the industry. Also, the five forces model overlooks the role of innovation as well as
the significance of individual firm differences. It presents a stagnant view of competition.

27
 Chapter 3: Marketing Strategies

1. Products of Company
(I). LCD and LED panels

By 2004 Samsung was the world's-largest manufacturer of OLEDs, with a 40

percent market share worldwide, and as of 2018 has a 98% share of the global
AMOLED market. The company generated $100.2 million out of the total $475
million revenues in the global OLED market in 2006. As of 2006, it held more than
600 American patents and more than 2,800 international patents, making it the
largest owner of AMOLED technology patents.

Samsung's current AMOLED smartphones use its Super AMOLED trademark,

with the Samsung Wave S8500 and Samsung i9000 Galaxy S being launched in
June 2010. In January 2011, it announced its Super AMOLED Plus displays –
which offer several advances over the older Super AMOLED displays – real stripe
matrix (50 percent more sub pixels), thinner form factor, brighter image and an 18
percent reduction in energy consumption.

In October 2007, Samsung introducing a ten-millimeter thick, 40-inch LCD

television panel, followed in October 2008 by the world's first 7.9-mm panel.
Samsung developed panels for 24-inch LCD monitors (3.5 mm) and 12.1-inch
laptops (1.64 mm). In 2009, Samsung succeeded in developing a panel for forty-
inch LED televisions, with a thickness of 3.9 millimeters (0.15 inch). Dubbed the

28
"Needle Slim", the panel is as thick (or thin) as two coins put together. This is about
a twelfth of the conventional LCD panel whose thickness is approximately 50
millimeters (1.97 inches).

While reducing the thickness substantially, the company maintained the

performance of previous models, including Full HD 1080p resolution, 120 Hz
refresh rate, and 5000:1 contrast ratio. On 6 September 2013, Samsung launched
its 55-inch curved OLED TV (model KE55S9C) in the United Kingdom with John
Lewis.

In October 2013, Samsung disseminated a press release for its curved display
technology with the Galaxy Round smartphone model. The press release described
the product as the "world's first commercialized full HD Super AMOLED flexible
display". The manufacturer explains that users can check information such as time
and battery life when the home screen is off and can receive information from the
screen by tilting the device.

(II). Mobile phones

Samsung's flagship mobile handset line is the Samsung Galaxy S, which many
consider a direct competitor of the Apple iPhone. It was initially launched in
Singapore, Malaysia and South Korea in June 2010, followed by the United States
in July. It sold more than one million units within the first 45 days on sale in the
United States.

While many other handset makers focused on one or two operating systems,
Samsung for a time used several of them: Symbian, Windows Phone, Linux-based
Limo, and Samsung's proprietary Bada.

By 2013 Samsung had dropped all operating systems except Android and Windows
Phone. That year Samsung released at least 43 Android phones or tablets and two
Windows Phones.

29
At the end of the third quarter of 2010, the company had surpassed the 70 million
unit mark in shipped phones, giving it a global market share of 22 percent, trailing
Nokia by 12 percent. Overall, the company sold 280 million mobile phones in 2010,
corresponding to a market share of 20.2 percent. The company overtook Apple in
worldwide smartphone sales during the third quarter 2011, with a total market share
of 23.8 percent, compared to Apple's 14.6 percent share. Samsung became the
world's largest cellphone maker in 2012, with the sales of 95 million smart phones
in the first quarter.

During the third quarter of 2013, Samsung's smartphone sales improved in

emerging markets such as India and the Middle East, where cheaper handsets were
popular. As of October 2013, the company offers 40 smartphone models on its US
website.

(III). Semiconductors

Samsung Electronics has been the world's largest memory chip maker since 1993.
In 2009, it started mass-producing 30 nm-class NAND flash memories. It
succeeded in 2010 in mass-producing 30 nm-class DRAMs and 20 nm-class NAND
flashes, both of which were the first time in the world.

According to market-research firm Gartner, during the second quarter of 2010

Samsung Electronics took the top position in the DRAM segment due to brisk sales
of the item on the world market. Gartner analysts said in their report, "Samsung
cemented its leading position by taking a 35-percent market share. All the other
suppliers had minimal change in their shares." The company took the top slot in the
ranking, followed by Hynix, Elpida, and Micron, said Gartner.

30
Another area where the company had significant business in for years is the foundry
segment. It had begun investment in the foundry business since 2006 and now
positioned it as one of the strategic pillars for semiconductor growth.

In 2010, market researcher IC Insights predicted that Samsung would become the
world's-biggest semiconductor chip supplier by 2014, surpassing Intel. For the ten-
year period from 1999 to 2009, Samsung's compound annual growth rate in
semiconductor revenues has been 13.5 percent, compared with 3.4 percent for Intel.
For 2015, IC Insights and Gartner announced that Samsung was the fourth largest
chip manufacturer in the world.

(IV). Televisions

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.

Samsung launched its first full HD 3D LED television in March 2010. Samsung
had showcased the product at the 2010 International Consumer Electronics Show
(CES 2010) held in Las Vegas.

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Samsung sold more than one million 3D televisions within six months of its launch.
This is the figure close to what many market researchers forecast for the year's
worldwide 3D television sales (1.23 million units). It also debuted the 3D Home
Theater (HT-C6950W) that allows the user to enjoy 3D image and surround sound
at the same time. With the launch of 3D Home Theater, Samsung became the first
company in the industry to have the full line of 3D offerings, including 3D
television, 3D Blu-ray player, 3D content, and 3D glasses.

In 2007, Samsung introduced the Internet TV, enabling the viewer to receive
information from the Internet while at the same time watching conventional
television programming. Samsung later developed "Smart LED TV" (now renamed
to "Samsung Smart TV"), which additionally supports downloaded apps. In 2008,
the company launched the Power Infolink service, followed in 2009 by a whole
new Internet@TV. In 2010, it started marketing the 3D television while unveiling
the upgraded Internet@TV 2010, which offers free (or for-fee) download of
applications from its Samsung Apps App Store, in addition to existing services such
as news, weather, stock market, YouTube videos, and movies.

Samsung Apps offers for-fee premium services in a few countries including Korea
and the United States. The services will be custom-tailored for each region.
Samsung plans to offer family-oriented applications such as health care programs
and digital picture frames as well as games. Samsung's range of smart TVs include
the apps ITV Player and motion controlled Angry Birds.

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(V). Digital cinema

On 13 July 2017, an LED screen for digital cinema developed by Samsung

Electronics was publicly demonstrated on one screen at Lotte Cinema World Tower
in Seoul.

(VI). Other

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 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. In 2010, the company started marketing the 320Gb-per-disk HDD,

33
 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 kilometers (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 One Web and SpaceX.

2. 4 Ps (Product: Price, Place & Promotion)

Samsung Marketing Mix

Marketing Mix of Samsung analyses the brand/company which covers 4Ps

(Product, Price, Place, Promotion) and explains the Samsung marketing strategy.
The article elaborates the pricing, advertising & distribution strategies used by the
company.

Let us start the Samsung Marketing Mix:

(I). Product:
Samsung invests a lot in research and development to deliver the best products to
its customers. Samsung offers a wide range of products in different product
categories. The diverse offerings come under the products of Samsung marketing
mix. The products can be classified into five categories and they are:

Mobile devices- Smartphones like Samsung Galaxy series, Tablets, Wearables,

Other Phones, Accessories

Samsung Home Appliances- Refrigerators, Washing Machines, Cooking

appliances, Air conditioners, Vacuum cleaners

TV/AV – Samsung Television, Audio and Video, Accessories

Information Technology - Printer and Multifunction, Monitor

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Memory/Storage- SSD, Portable SSD, Memory cards, USB Flash drives

(II). Price:

Samsung is a market leader in smart phones and is a dominant player in market for
home appliances. It uses two pricing schemes which are:

Skimming Price –Samsung uses skimming price policy. For instance, when
Samsung launches new products with different variants of storage capacity, it prices
the product higher. But when other competitors launch a smartphone with identical
features, Samsung lowers the price and easily prevents the reduction of its market
share due to the launch of the competitor.

Competitive Pricing –This pricing strategy is a part of Samsung marketing

strategy. Samsung has not succeeded in becoming the leader in other product
categories. Samsung is a trustworthy brand, but in the ‘home appliances’ product-
category, it hasn’t surpassed LG yet. To prevent the flanking attacks from its
competitors in the market it’s essential for Samsung to use competitive pricing.
Also, Samsung is a not a first mover in these product categories and thus it must
defend its position in the market. All these help in understanding the pricing
strategy in the Samsung marketing mix.

35
 (III). Place:

Samsung sells directly to the retailers and service dealers. And due to this strategy,
only service dealers are responsible for the corporate sales. Retailers dealing in
technology generally must include Samsung in their offerings, because of the brand
being world-famous. The distribution is the strength for Samsung. Samsung also
distributes its products using a single distribution company in a location that further
distributes the products to other locations.

(IV). Promotion:

Promotion is a strong pillar in the marketing mix of the company. Samsung believes
that advertising the best form of promotion to engage potential consumers and
position the brand. Samsung promotes new products using newspapers and digital
media. To take the advantage of the huge number of followers of celebrities, the
brand has invited many celebrities to be the brand ambassadors and promote the
product. Big placard, hoarding and posters are put up on highways.

Besides advertising, Samsung also uses different promotional tactics to make

customers buy the product. Samsung is mostly famous for its product quality and
user experience, but Samsung is also known for being a giant in sponsoring events.
Samsung also sponsors major events. Samsung offers heavy discounts during
national festivals. This concludes the Samsung marketing mix analysis.

3. STP (Segmentation, Targeting and Positioning)

Samsung Electronics (Mobile Division) operates in one of the most competitive

markets of the world. According to the US Federal Communication Commission
67 new Smartphone devices are introduced every year. Samsung traditionally had
a conservative image that focused on low-price products for the lower end of the
market. With low prices it was able to compete in the lower-market whereas in the
upper market it had lesser penetration. To penetrate the upper-market Samsung had
to give up their lower-market position and focus on innovation and perceiving a
higher brand value. The following is the STP Analysis of Samsung Mobiles.

SEGMENTATION:
One of the fundamental principles of marketing is the segmentation of the market.
Segmentation means the splitting of the market into groups of end users who are:
1. Maximum similarity within each group

36
2. Maximum difference between groups.

Based on recent Marketing definitions, Behavioral and Psychographic

Segmentation are the definitions that best represent Samsung’s current
Segmentation Strategy.

 GEOGRAPHIC

It has Samsung Guru Segment for rural areas as well as Galaxy segment for urban
areas. Samsung is one of the largest manufacturers of mobile phones and it shares
the highest cell phone customers with Nokia in India. It has something for
everyone.

 DEMOGRAPHIC
 
Samsung has mobile phones for youth, age of 16-29, for businessmen etc. for
middleclass youth it has Samsung Guru which is for govt. lower class workers also.
Guru has many variants; it is coming in 3G also. It is a good option if you want to
get a cheap 3G handset. Samsung Galaxy is a good option for youth as it has many
attractive features as Wi-Fi, 3G. Galaxy is also for Businessmen.

Samsung has partnered with IT industry leaders to bring you the most relevant
enterprise solutions and the most comprehensive mobile implementation of
Exchange ActiveSync. Decidedly adept in security concerns and the answer to your
every business need, the Galaxy S II is ready for serious enterprise usage.

 PSYCHOGRAPHIC
 
Samsung mobile is available for those customers too who have their choice based
on their lifestyle. Samsung came with some so fancy mobile phones specially for
girls and cheaper touch screen stylish phones so that everyone can enjoy touch
screen the rate of normal mobiles. Samsung has its range of mobile phones start
from 1200to 32,000+.

TARGETING:
After segmenting the market based on the different groups and classes, the targets
need to be chosen. Samsung mobiles have the following target customers:
— Trendy young people.
— Professionals.
— Large businesses.
— The common cellular phone users.

37
 — Organizations such as: services to public safety, the government, and both utility
and manufacturing enterprises.
— Institutional sales for colleges.
— Target is not only number driven but also about acquiring and retaining
customers.

POSITIONING:

Positioning is about the customer perception about the brand as being different from
the other brands on specific dimension including product attributes.

The strategies adopted by Samsung to position itself in the Mobile Phone market
are as follows:
— It focuses more on the real margin which comes from mid-to-high-end segments
— Samsung Concept Store
— Market making & category creation in small towns
— Wider Care Network
— Access to Samsung care line
— Pioneering in the 3G segment of mobile phones.
— Branded itself as a synonym for quality.
— Created a Unique Brand Image for itself as a high-end value driven brand.

4. Distribution Channels

Samsung marketing strategy in china Nowadays, China’s communication industry

is developing rapidly, and China has become the biggest mobile phone market all
over the world. There are many international renowned mobile phone manufactures
and local producers in this market and these companies are competing fiercely in
China’s mobile phone industry. It is known that, in 1999, when the domestic mobile
phone brands entered the mobile phone market, few people had expected that the
domestic mobile phone brands would survive in this market.

However, with the passage of time, the local brands made great development and
their total market share surpassed that of the international mobile phone giants
including Nokia and Motorola. In 2001, the market share of domestic mobile phone
was 15%; in 2002, the rate was more than 30%; and in 2003, the market share rose
to more than 50%, which was a historical breakthrough for the domestic brands.
However, since 2004, the condition of China-made mobile phones has become
negative.

38
As the competition in this market gets fiercer, foreign mobile phone manufactures
are consistently developing new brands and improving their distribution channels,
and the domestic brands have lost the once-owned channel advantages. Because of
some problems of domestic mobile phone industry, the market share rate has
dropped dramatically, and most of the domestic mobile phone companies have
suffered great losses. What was worse, some domestic mobile phone enterprises
such as PANDA, EASTCOM, and SHOUXIN were so badly defeated that they
were out of the Chinese mobile phone market.

In this market with fierce competition, Samsung–a Korean mobile phone brand has
developed quickly in recent years and continuously won the first place in market
share. As one of the world’s top three major mobile phone manufacturers and the
Korea phone leader, Samsung mobile phone’s product concept is “fashion-leading
technology”. Its brand development strategy is to create the best products in the
world. Samsung has created many number ones, such as the world’s first mobile
phone that has a rotating screen–SGH-V200, the world’s first MP3 phone, the
world’s first TV phone, watch phone and the world’s first CDMA/GSM dual-mode
mobile phone.

39
Samsung mobile phone is taking the high-end product strategy, which is different
from Nokia and Motorola. In the high-end electronics market, Samsung is always
the first to launch a variety of superior products and it always makes high profits
by virtue of time advantage. In China in the year 2008, Samsung introduced 20
models of mobile phones, of which the appearance, the function and the quality are
designed with advanced concepts, innovative technologies and world-class
standard.

Samsung mobile phones are always popular in China and the other countries all
over the world. The success of the Samsung mobile phone enterprise in China lies
in its unique industry background and professional strengths, and the company also
benefits from research and development and the marketing strategies which are
compatible with the environment. Marketing strategy is the marketing logic
whereby the company hopes to achieve its marketing objectives, which includes
special strategies for target markets, positioning, the marketing mix and marketing
expenditure levels.

Once the overall competitive marketing strategy is set, the company is ready to
begin planning the details of the Marketing Mix, one of the major concepts in
modern marketing. The Marketing Mix consists of many variables that the
company should do to increase its product demand. These variables are known as
the 4Ps: product, price, promotion and place (distribution). The reasonable
Marketing Mix could help the company to establish strong positioning in the target
markets. Based on the understanding of the importance of 4Ps Marketing Mix and
its impact on China’s mobile phone industry, this paper is divided into five chapters.

Chapter one is the introduction. It briefly introduces the research background and
its academic and practical implications. Chapter two is the thorough analysis of
current domestic mobile phone market. After the introduction to China’s mobile
phone development history, this chapter mainly analyzes the internal and external
environment of China’s mobile phone industry by virtue of the SWOT Analysis
Method. Though the analysis, it is known that domestic mobile phones have some
advantages, such as the cost advantage, localization advantage and fast market
reaction advantage.

The weaknesses of the domestic mobile phones are that the core technologies are
weak, mobile phone qualities are not guaranteed, there is serious product
homogenization and most of the domestic mobile phone enterprises are on a small
scale. It is certain that the local mobile phone industry has many opportunities for

40
 its development, which include the sound economic conditions, the support from
the government, the coming of 3G era and the coming of phone replacement rush.
However, domestic mobile phone companies do face some threats, such as the
threats from copycat mobile phones and the international mobile phone’s fierce
competition.

Chapter three is the introduction to Samsung mobile phone and the analysis of its
successful marketing strategies in China. In this chapter, it is known that Samsung’s
successful marketing strategies could mainly be expressed by the variables in its
Marketing Mix. In product, Samsung is always focusing on producing high quality
products to build strong brand image and enhance the brand value, offering perfect
after sale services to own good reputation, launching continuous product innovation
to maintain brand image and brand vitality and supplying distinctive and
fashionable designs to maintain brand differences.

In price, Samsung has effectively assessed the value and the quality of its digital
electronic products, the importance of the product’s unique, stylish design and
knows that the consumers are willing to pay high price for such products, and
therefore it adopted the skim pricing strategy. In channel strategies, Samsung has
always insisted on national agents, and it has prudently selected the national agents
to do its distribution. In terms of the promotion strategies, Samsung always focuses
on unifying advertising agencies and launching a series of effective advertising
campaigns.

Two of its excellent promotion strategies are launching a variety of sports

sponsorship, focusing on Olympic TOP Program and making use of entertainment
activities to enhance fashion marketing, which proved to be qui te effective.
Chapter four concluded some implications to the local mobile phone industry. It is
suggested that, in terms of the product, the domestic manufactures should master
and develop core technologies, enrich the product line and produce more high-end
products.

5. Promotion Strategies

A common feature of its marketing strategy is promotion, one of the four Ps.
Samsung promotes its products in a variety of ways ranging from attending the
relevant trade fairs for each of its products, to providing print brochures, posters
and specification sheets.

41
Information about products is also available on Samsung’s website and via
brochure lines. Brochure lines are 0800 numbers which the public can use to find
out more about specific products and at which retail outlets they are available.
Samsung increases general brand awareness through corporate sponsorship,
lending its support to such events as the Royal Windsor Horse Show and the
Samsung Open tennis tournament.

All these methods of promotion are available to support the launch of a specific
product. The marketing approach for each product may vary, however they are
coordinated and monitored by the marcoms division, Samsung’s internal
communications network. Marcoms maintain accurate product and dealer
information on a database allowing the employees of
Samsung to monitor what form of promotion is available to what product and who
is to be involved.

Samsung has played a leading role in the development of DVD (digital video discs),
the revolutionary new format which provides near studio quality picture and sound
reproduction using the latest digital technology. The data capacity of DVD is up to
26 times greater than that of a CD or CD-ROM, which means flexibility and quality
can be vastly improved. Samsung has included all the most sophisticated features,
but at a very keen price. As increasing numbers of electronics companies have
launched DVD models, the average price has fallen consistently and was forecast
to fall by 50 per cent during 1999.

42
 Chapter 4: Financial Analysis

1. Sources of Finance

Sources of finance such as equity, debt, debentures, retained earnings, term loans,
working capital loans, letter of credit, euro issue, venture funding etc. These sources
are used in different situations. They are classified based on time, ownership and
control, and their source of generation.

Sources of finance are the most explorable area especially for the entrepreneurs who
are about to start a new business. It is perhaps the toughest part of all the efforts. There
are various sources of finance, we can classify based on the time, ownership and
control, and source of generation of finance.

Having known that there are many alternatives to finance or capital, a company can
choose from. Choosing right source and the right mix of finance is a key challenge for
every finance manager. The process of selecting right source of finance involves in-
depth analysis of each source of finance. For analyzing and comparing the sources of

43
 finance, it needs the understanding of all the characteristics of the financing sources.
There are many characteristics based on which sources of finance are classified.

Based on a time, sources are classified as long-term, medium term, and short term.
Ownership and control classify sources of finance into owned capital and borrowed
capital. Internal sources and external sources are the two sources of generation of
capital. All the sources of capital have different characteristics to suit different types of
requirements.

2. Ratio Analysis

Ratio analysis is the comparison of line items in the financial statements of a business.
Ratio analysis is used to evaluate many issues with an entity, such as its liquidity,
efficiency of operations, and profitability. This type of analysis is particularly useful to
analysts outside of a business, since their primary source of information about an
organization is its financial statements. Ratio analysis is less useful to corporate
insiders, who have better access to more detailed operational information about the
organization. Ratio analysis is particularly useful when used in the following two ways:
 Trend line. Calculate each ratio over many reporting periods, to see if there is a
trend in the calculated information. The trend can indicate financial difficulties that
would not otherwise be apparent if ratios were being examined for a single period.
Trend lines can also be used to estimate the direction of future ratio performance.
 Industry comparison. Calculate the same ratios for competitors in the same
industry and compare the results across all the companies reviewed. Since these
businesses likely operate with similar fixed asset investments and have similar
capital structures, the results of a ratio analysis should be similar. If this is not the
case, it can indicate a potential issue, or the reverse - the ability of a business to
generate a profit that is notably higher than the rest of the industry. The industry
comparison approach is used for sector analysis, to determine which businesses
within an industry are the most (and least) valuable.

There are several hundred possible ratios that can be used for analysis purposes, but
only a small core group is typically used to gain an understanding of an entity. These
ratios include:

 Current ratio. Compares current assets to current liabilities, to see if a

business has enough cash to pay its immediate liabilities.
 Days sales outstanding. Determines the ability of a business to effectively
issue credit to customers and be paid back on a timely basis.

44
  Debt to equity ratio. Compares the proportion of debt to equity, to see if a
business has taken on too much debt.
 Gross profit ratio. Calculates the proportion of earnings generated by the sale
of goods or services, before administrative expenses are included. A decline in
this percentage could signal pricing pressure on a company's core operations.
 Inventory turnover. Calculates the time it takes to sell off inventory. A low
turnover figure indicates that a business has an excessive investment in
inventory, and therefore is at risk of having obsolete inventory.
 Net profit ratio. Calculates the proportion of net profit to sales; a low
proportion can indicate a bloated cost structure or pricing pressure.
 Price earnings ratio. Compares the price paid for a company's shares to the
earnings reported by the business. An excessively high ratio signals that there
is no basis for a high stock price, which could presage a stock price decline.
 Return on assets. Calculates the ability of management to efficiently use
assets to generate profits. A low return indicates a bloated investment in assets.

3. Net Profit/ Balance sheet (from annual report) -Analyse

NET PROFIT

Samsung Electronics has reported a wider-than-expected decline in its earnings for the
final quarter of 2015 as its two core businesses face a slowdown amid weakening global
demand for consumer electronics.
The company also hinted at a profit decline for the first half of this year.
Samsung's net profit for the October-December period plunged 40 percent from a year
earlier to 3.2 trillion won ($2.65 billion).

The result fell short of expectations, even after considering the negative impact from
foreign currency exchange rates estimated at 400 billion won. Analysts expected 5.1
trillion won in net income, according to FactSet, a financial data provider.

Sales edged up 1 percent to 53.3 trillion won for the quarter, while operating income
rose 16 percent to 6.1 trillion won, in line with its earnings preview this month.

The latest results reflect new challenges for Samsung as two core businesses,
smartphones and semiconductors, face a slowdown.

45
Weakening global demand for smartphones is taking a toll on Samsung's sales of
mobile components to companies such as Apple, as well as sales of Samsung's own
mobile devices.

The company is the world's largest maker of memory chips used in PCs and mobile
devices. It is also the world's largest maker of smartphones and television sets.

For the full year, it earned 19.1 trillion won (AU$15.8 billion), down 19 percent from
the previous year and the lowest level in four years. It was the second year in a row
with a decline in annual net income after the company's earnings peaked at 30.5 trillion
won in 2013.

During the final quarter of 2015, the semiconductor business reported its first quarter-
over-quarter profit decline in more than one year.
It logged 2.8 trillion won in operating income, about 25 percent lower than the previous
quarter but slightly higher than a year earlier.

In addition to the softer global demand for mobile devices and PCs, an oversupply of
memory chips that pushed down prices also drove the weaker-than-expected profit
growth.

"Demand for memory chips will increase due to growth in contents stored in high
density servers featuring DRAM and SSD, as well as smartphones with more advanced
features," the company said in a release.

Looking ahead, the company said it will develop 10nm DRAM, continue mass
production of second-generation 14nm components, and lift sales in high-density
DRAM and NAND storage.

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Earlier this month, the company revealed that it had begun mass production of logic
chips using its second generation 14-nanometer FinFET process and signed a deal to
exclusively produce Qualcomm's Snapdragon 820.

The mobile phone business posted its second straight quarterly profit decline with 2.2
trillion won in operating income.

Though Samsung expanded sales of its high-end smartphones, including the Galaxy
Edge series with curved displays, consumers flocked to cheaper smartphones, driving
down its overall profit.

For next year, the company said it expects single digit growth in smartphones and
tablets, with growth to be seen in the low-end, and will look to continue to expand LTE
services in its network business.

Analyst firm Ovum said overnight that 4G long-term evolution (LTE) subscriptions
reached 1.05 billion during Q4 of financial year 2015, with subscriptions set to grow
by double digits to hit 3.62 billion by 2020.

It pointed to transparent, mirror, automotive, and flexible displays as future display

business areas. And it singled out home and health as areas it will initially focus on
with internet-connected gadgets and home appliances.

"For the consumer electronics business, the company plans to lead the Smart Home era
with diverse IoT-enabled products," it said.

Earlier this month, Samsung partnered with Singapore's largest telecommunications

provider, Singtel, and its NCS subsidiary to collaborate on designing, building, and
launching smart home solutions.

The three companies will begin field trials, and plan to roll out solutions starting early
2016.

Last month, Samsung announced that all of its smart TVs will be used for controlling
IoT devices in the home, including connected lights, sound, and security devices.

Samsung reiterated its promise last year to increase shareholder returns, including a
plan to buy back and cancel shares. The move did little to shore up its share price. After
the earnings release, the company's shares traded 2 percent lower when the Seoul
bourse opened.

Yesterday, Apple reported a first quarter profit of $18.4 billion, with revenue coming
in at $75.9 billion.

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Sales of its iPhones slightly increased, from 74.5 million last year to 74.7 million, with
iPad shipments down by 5 million units from 21.4 million to 16.1 million. Mac sales
were down 4 percent to 5.3 million units, while the services category, which include
Apple Pay and iTunes, saw revenue increase 26 percent to $6.05 billion.

Other products, including the Apple Watch, experienced a revenue boost of 62 percent
to $4.4 billion compared with this time last year.

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BALANCE SHEET

49
 Chapter 5: Key Learning’s from the Company and
Recommendations

1. Performance Analysis of the Company

This study was conducted by integrating the data envelopment analysis efficiencies of
the leading smartphone brands of Apple, Samsung and HTC in the period 2008–2013
with customer importance–satisfaction analysis in Taiwan's mobile market. This study
collected 450 valid questionnaires with 150 questionnaires covering each company to
measure the 7P's marketing mix of service quality levels in the Greater Taipei
metropolitan regions. Samsung was the top-ranking performer in customer satisfaction,
verifying its achievement of capturing the world's number one smartphone market
share. Apple revealed the highest customer loyalty and enjoyed high stickiness. The
attribute of ‘ease of use’ with customer high importance–high satisfaction is the
common key driver for Apple, Samsung and HTC in keeping up good work. Regression
analysis is applied to test the five hypotheses which are all supported to link the
integrated relationship between efficiency, satisfaction and loyalty. When the
consumer loyalty level is higher, then the higher is the manufacturer's efficiency. When
the consumer satisfaction level of the product is higher, then the higher is the
manufacturer's efficiency. When the consumer satisfaction is higher, then the higher is
the loyalty as well. The findings for management implications and how to improve their
business excellence in this sector are provided.

2. Reasons for the expansion/contraction/diversification of Company

Black-and- White TVs exported to Panama

To meet the increasing demands of the public, Samsung started to invest heavily into
the development of television sets. In November 1970, Samsung finally succeeded on
producing 12” vacuum tube black-and-white TV.

Since then, Samsung had improved the quality of its TV and Samsung managed to
export its black-and-white TVs to Latin America after just two months of their
production.

Affiliate company Samsung Electrics, Co, Ltd Established

In a desire to become more independent, Samsung Electronics expanded its business
by manufacturing the products on its own.

In September 1971, Samsung Electrics, Co, Ltd is established to develop new products.
By October 1972, a table calculator factory and a TV factory were completed.

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Mass production begins

In addition, Samsung Electronics took over domestic TV production lines from

Samsung Corporation and established a factory for Braun-tube bulb factory. After
extensive investment and expansion of production lines, Samsung established two
black-and-white TV lines which would produce 480 thousand TVs per year.

Development of transistor black and white TV (Maha 506)

As Samsung established their production system and accumulated electronics
technology, they pushed to produce their own TV model.

Their first products were 19” transistor black and white TV which was developed in
April 1973. The TV was named was Maha 506 and become a sensational hit in South
Korea.

Launch frost-free refrigerator and washer

With help from Sanyo Electrics, Samsung was able to upgrade home appliance
technology.

On February 1974, Samsung launched Korea’s first frost-free refrigerator and in May,
air conditioners. In addition, Samsung developed 8-track compact stereo to widen their
business. Later, Samsung started to produce record cassettes and AM/FM radio-

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 cassettes for domestic customers as well as export to the United States. Furthermore,
Samsung expected that there would be increasing number of people who would want
to buy washing machines in near future, so they decided to develop their own washing
machine. Thus, from December 1974 Samsung began production of pulsator type 2KG
manual washing machines.

In addition to refrigerators, air conditioners, cassettes and washers, Samsung succeeded

in developing fans, electric stoves, electric rice cookers and more. Also, by April 1974,
Samsung began production of electric desk calculators for the first time in Korea.

Next week we’ll talk about Samsung Electronics’ introduction of energy efficient
products and increasing sales and productions.

3. Comment on Organizational Leadership

On Oct. 31, Samsung Electronics replaced the heads of its three business divisions with
people who are all in their fifties and hinted that this would be followed by a major
reshuffle of its lineup of presidents. The company apparently pushed through these
management changes – despite posting its highest ever profits – to start building a
system personally controlled by imprisoned Samsung Electronics Vice Chairman Lee
Jae-yong.

After Samsung Electronics Vice Chairman Kwon Oh-hyun (head of the semiconductor
division) announced his plans to retire on Oct. 13, attention turned to who would
replace him as chairman of the board of directors and whether President Yoon Boo-
keun (head of the consumer electronics division) and President Shin Jong-kyun (head
of the mobile division) would be replaced as well. The argument that new blood is
needed in a time of volatility in the digital market clashed with the view that drastic
change in the organization should be avoided during Lee Jae-yong’s incarceration.
There were even predictions that the company’s very management structure – the three
divisions have been managed separately since 2012 – was about to be overhauled.

Samsung has opted for major change by handing the baton to the next generation. “We
are confident that these appointments will serve as an opportunity to deal more actively
with an uncertain management environment while also energizing the company
through organizational reform,” Samsung Electronics explained in a statement. The
new appointees are all in their late 50s: Kim Ki-nam, 59, will head the Device Solutions
Division, which includes chip production; Kim Hyun-Suk, 56, will lead the Consumer
Electronics Division; and Koh Dong-jinn, 56, will oversee the Information Technology
and Mobile Communications Division. All three of the new division heads started their
careers at Samsung Electronics after graduating with engineering degrees, giving them

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extensive experience in their respective fields. Given their demonstrated ability, they
have long been mentioned as possible heads of their divisions.

But the effect that Samsung Electronics hopes to achieve through these appointments
does not appear to be limited to a changing of the guard. The appointments lay the
foundation for stepping out of the shadow of Chairman Lee Kun-hee and giving Lee
Jae-yong a chance to shine. The outgoing division heads (Kwon, Yoon and Shin) had
all been appointed before Lee Kun-hee was felled by a stroke in 2014 and had all
maintained their positions for five or six years. By pushing through these bold
appointments despite being behind bars, Lee likely means to show company executives
his determination to stay in charge through a cadre of handpicked allies.

Another potential benefit for Samsung Electronics is cutting ties with the influence-
peddling scandal involving former president Park Geun-hye and her confidante, Choi
Soon-sil. The outgoing division heads had been a key part of managing the company
since being appointed early during Park’s presidency. By letting the three goes, the
company can show not only the new administration of President Moon Jae-in but also
its stockholders and the public that it’s “turning over a new leaf.”

But the appointment of Chief Financial Officer Lee Sang-hoon, 62, a former member
of Samsung’s defunct Future Strategy Office, as the new chairman of the board of
directors has prompted criticism of Samsung for straying from the management reform
plan that it announced in February. “These personnel decisions don’t line up with
Samsung’s declaration in February that it would allow its subsidiaries to be managed
independently by their boards of directors and their representative directly,” said Kang
Jeong-min, a researcher with Solidarity for Economic Reform (SERI).

On the same day, Samsung Electronics also announced its profits for the third quarter
and a policy of returning profits to stockholders, mostly through handsome dividends.
This quarter, the company posted its largest ever returns, with operating profit alone
exceeding 14.5 trillion won (US$12.99 billion). The company also said that, starting
next year and continuing for three years, it would be paying out close to 10 trillion won
(US$8.96 billion) in yearly dividends. That’s nearly twice the amount for this year.
“We will use our technological capabilities and strategic investment to increase the
company’s competitiveness and profitability so that our recent strong performance can
continue, and we will simultaneously implement a policy of returning profits to
shareholders as we keep enhancing shareholder value,” Samsung Electronics said.

But some critics assert that Samsung Electronics’ largesse should not be limited to its
shareholders. “Society has done a lot to help Samsung Electronics achieve its best
performance. Along with returning profits to investors, Samsung should also pay

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 attention to its corporate social responsibility by hiring more employees,” said Lee
Sang-heon, an analyst with HI Investment and Securities.

4. Market share/growth rate of Company

Global market share held by Samsung in the smartphone market from 2nd
quarter 2009 to 4th quarter 2017

This statistic shows the global market share held by Samsung in the smartphone market
from the second quarter of 2009 to the fourth quarter of 2017. In the fourth quarter of
2017, Samsung had a global smartphone market share of 18.4 percent.
Samsung’s smartphone market share – additional information

The smartphone market has drastically changed since 2009. Nokia used to lead the
industry with almost 50 percent of the smartphone market share in 2007, but the
company’s market presence dropped to nearly three percent in 2013. Apple and
Samsung have remained amongst the top five smartphone vendors in the world since
2009. Samsung’s Galaxy, first released in 2009, is their main line of smartphone
products, while Apple heavily invests on the iPhone, the company’s primary source of
revenue.

Samsung’s smartphone market share increased significantly in a time span of three

years, going from three percent in the second quarter of 2009 to 32.2 percent in the
second quarter of 2012. None of its competitors have experienced such strong growth
in the last few years. As the overall smartphone market grew as well, Samsung was

54
able to maintain its position as global market leader. In 2015 alone, the Korean
electronics giant shipped more than 320 million smartphones worldwide, accounting
for 21.6 percent of all smartphone shipments worldwide. Samsung shipped more
smartphones than Lenovo, Huawei and Xiaomi combined. Apple remains a distant
second, with about 216 million iPhones shipped worldwide and around 15 percent of
the market share in 2017.

Growth Rate of SAMSUNG

NEW DELHI: After registering a 27 per cent growth in mobile business revenue for
the financial year 2016-17 -- touching a mammoth Rs 34,300 crore -- Samsung has
become the undisputed leader in the highly competitive and price-sensitive domestic
smartphone market.

"Samsung continues to be India's smartphone leader by a fair distance. We are growing

across segments -- premium, mid-segment and affordable," Asim Warsi, Global Vice
President, Samsung India, said in a statement on Thursday.

"Our ears are firmly to the ground and this helps us deliver the best smartphone
experience to our consumers and that is helping us gain the trust of consumers. We will

sustain and consolidate our leadership in the smartphone industry," Warsi added. With
this kind of growth, Samsung has eclipsed the sales of key Chinese brands such as
Xiaomi, OPPO, Vivo, Lenovo and even the Cupertino-based giant Apple.

55
 "We continue to be the market leader in India by a distance and through our innovations
and trust and love of our consumers, we will sustain and consolidate our leadership in
the smartphone industry over the next few years," Samsung said.

The South Korean giant had 60 per cent market share (by value) in the premium
segment for the August-September-October period, according to German market
research firm GfK. For the overall smartphone market, Samsung had over 45 per cent
market share (by value) for the last three months.

"Every third smartphone sold in India is a Galaxy J series smartphone," the company
said.

Samsung India’s senior vice-president for mobile business, Asim Warsi said, “had the
Note 7 been there, the numbers could have been better… our Note users wait for the
next model, which has resulted in high uptake of Note 8 when it came to the market.”

5. SWOT Analysis of the Company

Samsung Electronics Co. Limited (OTC: SSNLF) is the consumer electronics
subsidiary of the Samsung Group, a conglomerate based in Suwon, South Korea.
Outside of Korea, Samsung is best known as the world’s largest manufacturer of mobile
phones and smartphones, including the highly popular and successful Galaxy.

It is also the world’s largest manufacturer of televisions and LCD panels. Thanks to its
manufacturing and marketing expertise, Samsung is regarded as the world’s second
largest consumer electronics company. Only its American rival, Apple Inc. (NASDAQ:
AAPL), reported larger revenues.

Unfortunately, it is difficult to determine exactly what Samsung’s are because it is

based in Korea and not covered by U.S. corporate reporting laws. Samsung did report
an estimated TTM revenue of $42.35 billion for the second quarter of 2015. That figure
is based on sales of 48 trillion Korean won.

Strengths

 Samsung is the world’s most successful electronics manufacturer. It is the world’s

largest manufacturer of television sets, liquid crystal display (LCD) panels, mobile
phones and smartphones.

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 Samsung is the world’s number one marketer of mobile phones with 21.4% of the
world’s largest market share in the second quarter of 2015. Apple is number two
with 13.9%
 Samsung has impressive research and design capabilities. It was able to create and
roll out SAMSUNG pay, a payment app with similar capabilities to Apple Pay, in
less than a year. Samsung has been able to replicate many of the capabilities of both
Apple Inc.’s phones and Google Inc.’s Android operating system for mobile devices.
 Samsung has strong manufacturing and marketing capabilities.
 Samsung has long-standing relationships with retailers in the United States and
Europe that provide a steady sales channel for its products.

Weaknesses
 Samsung has not been able to match Apple Inc.’s marketing capabilities for
smartphones. Its share of the U.S. smartphone market fell by 2.3% between 2014
and 2015. In contrast, Apple’s share price grew by 34.9%.
 Some Chinese competitors are catching up to Samsung in the smartphone market.
Between 2014 and 2015 Huawei’s share grew by 48.1%, and Xiaomi’s share grew
by 29.4%.
 Samsung is heavily dependent upon consumer electronics sales in markets with
limited potential for growth, such as the United States and Europe, for much of its
revenue.
 Samsung’s devices use the Google Android open source operating system. Many
consumers seem to view Android as an inferior product to Apple’s iOS. The public
has not been as accepting of Android as the tech community has.
 Some consumers view Apple products as more advanced and dependable than
Samsung products.
 Samsung’s marketing efforts are not as sophisticated as Apple’s.

Opportunities
 Growing market for smartphones, tablets and other mobile devices, especially in
developing regions such as Africa and India, where consumers are unfamiliar with
PCs. Sales of tablets finally overtook sales of traditional personal computers in 2015.

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 Increased demand for tablet and smartphone-based solutions such as Samsung Pay
 New technologies such as wearable tech
 Growing middle class in developing world will increase market for consumer
electronics.
 Growing online market from sales channels such as Amazon.com

Threats
 Apple has emerged as the dominant smartphone and tablet brand in some markets,
such as the United States. Samsung has not been able to overcome Apple’s
reputation for reliability.
 Apple’s reputation for quality, reliability and sophistication seems to be growing.
 The Google Android operating system, which Galaxy devices depend upon, is not
as popular with average people as iOS is.
 Declining or stagnating middle-class incomes in North America and the United
States could reduce consumer buying power in those key markets for Samsung.
 Chinese manufacturers such as Huawei and Xiaomi could emerge as serious rivals
to Samsung. These companies’ share of the critical mobile device market is growing
while Samsung’s is falling.
 Apple could enter more consumer products areas such as home appliances and
cameras and directly compete with Samsung in those markets.

Samsung maintains impressive research, design and manufacturing capabilities, but

it appears to have lost its edge in marketing. This company may need to revamp its
smartphone marketing and perhaps design efforts in order to maintain market share
in critical arenas like the U.S.
New capabilities like Samsung Pay will be critical if this company wants to maintain
its position as an industry leader. Samsung will also need to learn to deal with
aggressive Chinese competitors and Apple’s reputation.

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 Chapter 6: Findings
 We came to know while visiting the shop most of the dealers sold entire consumer
durable product including C-TV, Refrigerator, Washing Machine, DVD, Microwave
oven.
 We know that during the survey in consumer durable industry in Nashik district and
rural area of Nashik district LG is leading in Color television, Washing Machine,
Refrigerator.
 Study shows that quality is most important parameter for more sale of color television
and then price is considered by consumers.
 Study shows that quality of the product is most important parameter for Refrigerator
then price is considered by consumers.
 While visiting the shop we came to know that quality is most important parameter
which is effect on more sales of Washing Machine.
 Sales promotion scheme were sufficient.
 We came to know that while visiting the shop, Kenstar is most preferable brand for
Microwave oven because of their quality.
 While visiting the shop we know that LG is gives high profit margin as compare to
other competitors.
 While visiting the shop dealers suggested that after sales service is most important
factor which contributes towards the sales of Consumer durables.
 All the dealers were not satisfied with the profit margin.
 SAMSUNG product is costly as compare to LG and VIDEOCON.
 Maximum rural area is covered by the VIDEOCON because of their low price
products.
 We came to know while visiting the shops that there was big problem of after sales
service.
 Many dealers were facing the problem of after sale service because there is no follow
up calls from SAMSUNG.s
 Demo calls also not done properly.
 LG and Videocon are the main competitor of SAMSUNG.
 Advertising of SAMSUNG CTV is more effective as compare to the competitors.

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 Chapter 7: Conclusions and Suggestions

Conclusions
 Samsung Gear Fit looks like the real deal… finally.
 S5’s new camera features sound promising.
 Samsung still can’t design a phone that looks remotely interesting
 Samsung has too many smart watches already.
 The fingerprint scanner shows Apple is still calling the shots.
 Processors and performance just don’t matter (much) anymore.

Suggestions
 Company should improve the after sales service of products as it is the main
factor for the sales of consumer products.
 If the SAMSUNG Ltd. reduces their product price like LG and VIDEOCON,
then SAMSUNG will take over the LG in all categories.
 Company should distribute free key chain, calendar, t-shirts for making brand
popular among people.
 Company should introduce low price and low power consumption Refrigerator
for acquiring the middle-income group.
 Dealer desire more advertisement to be done through local newspaper and cable
TV ads. To make consumers aware about the product.
 Prompt of service in time.
 Advertisements of the company’s products should focus on quality rather than
price.
 Company should target upper middle class or premium class customers.
 Company should introduce low cost products to satisfy the needs of low or
middle class.
 Demo calls as well as follow up Help Company to maintain customer
relationship and hence the company should focus on these aspects.
 SAMSUNG ltd. should concentrate on after sales service.
 SAMSUNG ltd. should try to trap the rural market.
 SAMSUNG ltd. Establish the service center as per taluka place.

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 Bibliography
1-http://www.samsung.com/in/aboutsamsung/index.html
2-http://www.samsung.com/in/aboutsamsung/corporateprofile/index.html
3-http://www.samsung.com/in/aboutsamsung/corporateprofile/history.html
4-http://www.samsung.com/in/aboutsamsung/corporateprofile/visionmission.html
5-http://www.samsung.com/in/consumer/index.html
6-And Special thanks to my teacher Shakti Sharma
7-www.slideshare.com

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