Table of Contents

I. Executive
Introduction
Mission statement
Vision
Objectives
Strategies
II. Product Information
Products Introduction
Competitors
III. Methods
SWOT Analysis
Competitive Profile Matrix (CPM)
External Factor Evaluation (EFE) Matrix
Internal Factor Evaluation (IFE) Matrix
SPACE Matrix
Grand Strategy Matrix
Quantitative Strategic
Planning Matrix (QSPM)
 Samsung
Problem
o This issue is the result of the poor management of Samsung Electronic which effect
on both their vision and strategies in the competition with Apple.

o This is very dangerous and cannot gain as many Competitive Advantages as Apple
in general and to increase the sale as well as gain more market share with their
fourth generation smartphone in particular.
 Samsung
o
Background
Founded by Lee Byung-chull
o 1950‟s Korean war lost all assets
 Aimed to rebuild Korean economy manufacturing industry(sugar, fabrics)
 Think globally and use of foreign labor
o 1969 SEC (Samsung Electronic Company) was founded

o 1970‟s entered into semiconductor business

o 1980‟s the Samsung Television Division was built
o 1987 Lee Kun-He take over
o 1997 nearly all Korean business shrunk in size
due to Asian financial crisis(Force to sell
company asset on Aircraft/Motor).Making profit
from TV‟s and Mobile phone
 Samsung
Introduction
Name Samsung Electronics Co., Ltd.

Industries served Consumer electronics, Telecoms Equipment, Semiconductors, Home Appliances

Geographic areas served Worldwide

Headquarters South Korea

Current CEO Kwon Oh Hyun
Revenue US$224.3 billion (2013)
Profit US$27.4 billion (2013)
Employees 270,000 (2013)
Parent Samsung Group

Apple Inc., Nokia OYJ, Intel Corporation, LG Display and LG Electronics, Sony Corporation,
Main Competitors Texas Instruments Inc., Lenovo Group Limited, Hewlett-Packard Company, Sanyo Electric Co.,
Ltd., Toshiba Corporation, SK Hynix Inc., Western Digital Corporation and others.
 Samsung
Introduction
Samsung Electronics Co., Ltd. is the largest world’s technology company in terms of
revenues.
Samsung is a conglomerate that is consisting of numerous businesses around the
world, of course, so it’s not as though the company has nearly 300,000 people working
on Galaxy smartphones and tablets.
Samsung is the second biggest mobile phone producer in the world.
 Samsung Mission
Electronics
Digital
To put into place the most
To create technology products and
efficient management and
services that lead the industry
production processes

To be the best
Digital-Electronics
Company

Company
To maintain a steadfast focus on strengthening our organization, on
continuing to be a global technology leader and trusted responsible
company
 Samsung Vision
Develop innovative technologies and efficient processes that create new
markets, enrich people’s lives and continue to make Samsung a trusted
market leader.

Vision 2020
Inspire the World, Create the Future

Creative
Industry
Solutions

New Innovative
Technology Products Partner Employee
 Samsung Objective
o Lead the digital convergence movement.
o Develop innovative technologies and efficient processes and continue to make
Samsung a trusted market leader.
o Look forward to exploring new territories, including health, medicine, and
biotechnology.
o Identify eight growth engines for Samsung's business including their Digital
Television (DTV) products and printers.
o Pursue innovation throughout all six main areas of the company's business
operations.
o Be one of the top three electronics companies in the world in quantity and in
quality by 2010.
o More than double its 2004 sales revenue by the year 2010.
o 20 number one market share products in the world by 2010 (currently the
company has eight number one market share products).
o Reaching $400 billion in revenue and becoming one of the world’s top five
brands by 2020.
 Samsung
Strategies
Three strategies approaches under vision 2020
Creativity Partnership Profession
management
management

 Increase external
capabilities and
 New technology activities  Talent
development  Partner
incubator
collaboration/
 New market
Environmental  Passion and
creation management
challenge
 New lifestyles  Value for
customers/
shareholders

Most innovative Most admired Great workplace

company company
 Products of
Samsung
Samsung is a Korean company which is a manufacturer of many products such as :
Phones, Normal TVs, 3D TVs, Computers, DVD players, Cars, Other Electronics,
Shipbuilders, Chemicals, Thumbdrives, Hardrives, Optical storage, Aviation. And this is not
all of what they sell.
 Smartphone Samsung Galaxy S5

 Samsung Galaxy Tab S

 Samsung Smart TV 65’’

 Samsung SWOT
 
Matrix Strengths Weaknesses
  1. Hardware integration with many open source OS and 1. Patent infringement
software 2. Too low profit margin
2. Excellence in engineering and producing hardware 3. Main competitors are also largest buyers
parts and consumer electronics 4. Lack its own OS and software
3. Innovation and design 5. Focus on too many products
4. Focus on environment
5. Low production costs
6. Largest share in mobile phones and 2 place in
smartphones sales
7. Ability to market the brand
Opportunities SO Strategies WO Strategies
1. Growing India’s smartphone market 1. Introduce a new product with innovation in hardware 1. Develop a new product through acquisition patents
2. Growing mobile advertising industry parts and consumer electrics in India's market 2. Promote profit margin by produce more products in
3. Growing demand for quality application 2. Innovation and design into growing mobile tablets market
processors advertising industry
4. Growth of tablets market 3. Introduce a new product for the lower income market
5. Obtaining patents through acquisitions
Threats ST Strategies WT Strategies
1. Saturated smartphone markets in developed 1. Introduce a new product with innovation in 1. Produce new products without infringe patents
countries hardware parts and consumer electrics 2. Continue develop technique and design to compete
2. Rapid technological change 2. Introduce a new product for the lower income with other competitors
3. Declining margins on hardware production market
4. Breached patents 3. Develop a new product through acquisition
5. Apple’s iTV launch patents
6. Price wars
 Samsung SWOT
Matrix
Strengths
o Customers are loyal and appreciating the brand.
o The company is maintaining very good relationship with its suppliers.
o The production processes and procedures of inventory management are consistent
with industrial standards.
Weaknesses
o Samsung is facing hard competition.
o South Korea’s labor unions are strategically linked for collective bargaining
and negotiation.
o Samsung need improvements in defining the vision, mission and strategic
corporate objectives.
o HRM also needs improvement in all the facts of human resources
management.
 Samsung SWOT
Matrix
Opportunities
o The economic condition of South Korea seems favorable.
o Samsung is interiorizing the social shifts.
o Samsung is reasonable equipped to take care of technological changes. Samsung is
maintaining good international relationship with other.
Threats
o The legislation has been passed frequently related to industry.
o Technological transformation takes place in the industry was very high.
o Regulatory issues and safeguarding of property rights was main threats in
legislations.
Samsung Competitive Profile Matrix
(CPM)
 Samsung Competitive Profile Matrix
(CPM) Samsung Apple Nokia HTC

Critical Success factors Weight Rating Score Rating Score Rating Score Rating Score

Innovative culture 0.10 2 0.20 4 0.40 3 0.30 2 0.20

Market Share 0.12 4 0.48 3 0.36 2 0.24 2 0.24
Consumer loyalty 0.10 4 0.40 4 0.40 3 0.30 3 0.30
Market penetration 0.11 3 0.33 4 0.44 3 0.33 3 0.33
Advertising 0.07 4 0.28 3 0.21 4 0.28 3 0.21
Product variety 0.09 4 0.36 2 0.18 4 0.36 3 0.27
Brand reputation 0.11 4 0.44 4 0.44 3 0.33 3 0.33
Product quality 0.08 4 0.32 4 0.32 3 0.24 3 0.24
Price competitiveness 0.10 3 0.30 2 0.20 4 0.40 3 0.30
Successful product
0.06 3 0.18 4 0.24 3 0.18 3 0.18
promotions
Employee dedication 0.06 4 0.24 4 0.24 3 0.18 3 0.18
Totals 1.00 3.53 3.43 3.14   2.78
 External Factor Evaluation (EFE)
Matrix
Key External Factors Weight Rating Weighted Score

Opportunities      
A lot of countries encourage technology innovation and high-tech industry is really
0.03 3 0.09
important.
Countries value the protection of intellectual property 0.04 3 0.12
GDP and national income per capita increasing 0.12 3 0.36
Consumption pattern is changing from subsistence consumption to well spending
0.07 3 0.21
pattern
Samsung’s mobile phones have high attention 0.09 4 0.36
Growing India’s smartphone market 0.05 2 0.10
People more care about brand and quality than price 0.14 3 0.42
Threats      
Legal issues with Apple 0.05 3 0.15
Price wars with Chinese phones 0.10 3 0.30
More and more new substitute and potential entrant 0.10 4 0.4
Strong competitors: Apple, Nokia, HTC… 0.12 4 0.48
The user experience is upgrading 0.09 3 0.27
Total 1.00 37 3.26
 Internal Factor Evaluation (IFE)
Matrix
Key Internal factors Weights Rating Weighted Score
Strengths      
Brand Recognition and Loyalty 0.07 3 0.21
A large number of products and broad product line 0.05 4 0.20
Strong research and development ability 0.10 3 0.30
Hardware integration with many open source OS and software 0.04 2 0.08
Innovation and fashion design, especially popular among younger peoples 0.15 4 0.60
With extensive sales channels and propaganda 0.06 3 0.18
Low production costs 0.03 3 0.09
Largest share in Smartphone industry ( 30% market share worldwide, extending its lead
0.15 4 0.60
over Apple and Nokia)
Weaknesses      
Not high lighting Price/Performance Ratio 0.10 4 0.40
Lack its own OS and Software 0.07 4 0.28
Patent infringement 0.04 3 0.12
Too low profit margin 0.04 2 0.08
Limited high-end products 0.03 2 0.06
Focus on too many products, with inaccurate positioning 0.07 3 0.21
Total 1.00 44 3.41
 Samsung SPACE Y

Matrix
 
Internal Strategy Position External Strategy Position

Y Financial Strength (FS) +1 to +6 Environmental Stability(ES) -6 to -1 Conservative Aggressive

  +3 Earnings per share -2 Price of competitive product
+5 Revenue increase -4 Competitive pressure
+4 Return on Assets -4 Global economic
+4 Leverage -2 Technology changes
(3.40; 1.00)
+3 Liquidity -2 Demand elasticity
+3 Cash flows -2 Inflation rates
X
  Average 3.7 Average -2.7

  Total Axis Y score: 1.00

X Competitive Advantage (CA) -6 to -1 Industry Strength (IS) +1 to +6

  -1 Product quality +6 Barriers to entry
-1 Market share +5 Growth potential
-1 Brand & image +5 Access to financing
-3 Product life cycle +6 Consolidation
-5 Customer service +6 Profits Defensive Competitive
-2 Customer loyalty

  Average -2.2 Average 5.6

 
Total Axis X score: 3.4
Samsung Grand Strategy
Matrix CHARATERISTICS OF
RAPID MARKET GROWTH
CHARATERISTICS OF
FIRMS: FIRMS:
Weak competitive position working in Strong competitive position working in
rapid growth market rapid growth market

 Market development  Market development

 Market penetration  Market penetration
 Product development  Product development
 Horizontal integration  Forward integration
 Divestiture  Backward integration
 Liquidation  Horizontal integration
WEAK  Related diversification
STRONG
COMPETITIVE   COMPETITIVE
 
POSITION POSITION
CHARATERISTICS OF FIRMS: CHARATERISTICS OF FIRMS:
Weak competitive position working in Strong competitive position working
slow growth market in slow growth market

 Market development  Related diversification

 Market penetration  Unrelated diversification
 Product development  Joint ventures
 Horizontal integration
 Divestiture  
 Liquidation

SLOW MARKET GROWTH

 Quantitative Strategic Planning
Matrix Key Factors
Market
Penetration
Market
Development
Product and Service
Development

Opportunities Weight AS TAS AS TAS AS TAS

A lot of countries encourage technology innovation and high-tech

0.03 3 0.09 4 0.12 3 0.09
industry is really important.

Countries value the protection of intellectual property 0.04 3 0.12 4 0.16 2 0.08
GDP and national income per capita increasing 0.12 4 0.48 4 0.48 1 0.4
Consumption pattern is changing from subsistence consumption to well
0.07 3 0.21 3 0.21 3 0.21
spending pattern
Samsung’s mobile phones have high attention 0.09 4 0.36 4 0.36 4 0.36
Growing India’s smartphone market 0.05 2 0.10 3 0.15 2 0.10
People more care about brand and quality than price 0.14 3 0.42 4 0.56 4 0.56
Threats              
Legal issues with Apple 0.05 2 0.10 3 0.15 4 0.20
Price wars with Chinese phones 0.10 3 0.30 3 0.30 3 0.30
More and more new substitute and potential entrant 0.10 3 0.30 4 0.40 3 0.30
Strong competitors: Apple, Nokia, HTC… 0.12 4 0.48 4 0.48 4 0.48
The user experience is upgrading 0.09 3 0.27 3 0.27 4 0.36
Total 1.00   3.23   3.64   3.44
 Quantitative Strategic Planning Matrix
(Cont.)
Strengths)
             

Brand Recognition and Loyalty 0.07 3 0.21 4 0.28 4 0.28

A large number of products and broad product line 0.05 4 0.20 4 0.20 4 0.20
Strong research and development ability 0.10 3 0.30 4 0.40 4 0.40
Hardware integration with many open source OS and software 0.04 3 0.12 3 0.12 4 0.16
Innovation and fashion design, especially popular among younger peoples 0.15 4 0.60 4 0.60 4 0.60
With extensive sales channels and propaganda 0.06 3 0.18 3 0.18 3 0.18
Low production costs 0.03 2 0.06 3 0.09 4 0.12
Largest share in Smartphone industry ( 30% market share worldwide,
0.15 3 0.45 4 0.60 4 0.60
extending its lead over Apple and Nokia)
Weaknesses              
Not high lighting Price/Performance Ratio 0.10 2 0.20 3 0.30 3 0.30
Lack its own OS and Software 0.07 2 0.14 3 0.21 4 0.28
Patent infringement 0.04 2 0.08 3 0.12 3 0.12
Too low profit margin 0.04 3 0.12 4 0.16 4 0.16
Limited high-end products 0.03 3 0.09 3 0.09 4 0.12
Focus on too many products, with inaccurate positioning 0.07 2 0.14 3 0.21 3 0.21
Total 1.00   2.89   3.56   3.73
Sum Total Attractive Score     6.12   7.2   7.17
 Samsung Strategy
recommendations
o Develop business to new Potential Market include Asia, South-America and Europe
o Develop New and Unique Competitive Technologies

These two strategies in general, not only help Samsung overcome and solve
their existed issued but also help develop in the matter of long-term.
 Samsung
Method
o In summary, there will be three main annual objectives that Samsung need to
complete include:

 Enter and penetrate new market

 Building brand images and reputation in new market
 Seek and cooperate with potential organization.
Samsung Recommendations on
procedures
o To ensure to have the desire result in the end, it is recommended to apply and
follow the three-step valuation to analyses and check
 The three-step valuations include:
 Analyze: observe, collect and analyze all the necessary factors form internal
to external to identified potential threats and problem may occurs of the
plans or strategies.
 Modification: adjust and modify the plans or strategies to eliminate or
minimize the effect of the threats and problem may occurs
 Implementation: begin to apply and implement the plans or strategies after
modified under supervision to ensure the result. Repeat the whole
procedures if necessary
IS NEAR