Samsung Presentation

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Information about Samsung Presentation

Published on April 28, 2008

Author: HannahBanana


Samsung : Samsung “Imagine” Overview of Case : Overview of Case Chinese TV market 1995 Samsung’s market position and their ideas for expansion Samsungs market participation in China at the time. Chinese Economic Environment in 1995, Main competitors in Chinese TV market Samsung in America Samsung Corporate Structure Samsung… A Little History : Samsung… A Little History 1969-1971:- Samsung-Sanyo Electrical founding period 1972-1974:- Samsung was setting the base for development 1975-1976:- Revenue expansion period 1977-1979:- The Fast Development Period 1980-1982:- Overcoming the depression, developing the tech. 1983-1985:- Leading the exports and developing 1986-1989:- Changing the direction to overseas 1990-1999:- Advancing towards the Millennium 2000-2002:- Leading the digital convergence Revolution 2002-2003:- Initiatives to become a World Class Company 2003-2004:- The first year as an excellent company 2004-2006:- Laying the foundation to become a World Class Co. So what does Samsung do? : So what does Samsung do? Samsung are an electrical company & their markets are constantly expanding, at present they are involved in the consumer market & business market, products they sell are as follows: (Q1) What are the main problems Samsung faces as it tackles the Television market in China? : (Q1) What are the main problems Samsung faces as it tackles the Television market in China? (1)No Clear Objectives New Market High or Low end Which Products to Introduce Set up plant in China? Price to charge - Quality etc (2)Chinese Economic Conditions : (2)Chinese Economic Conditions centrally planned economy The lack of adequate market data Difficulty in finding partners if entering through joint venture Customs & cultural differences Standards and rules imposed by government (3)Late Entry : (3)Late Entry Nation of First Mover advantage Loyal customers Established Competition Not a strong brand (4)Existing Competitors : (4)Existing Competitors Second largest market in world Population of over 18 billion 18 indigenous companies as well as numerous foreign companies in operation in Chinese market already Established, strong Brands e.g. Sony to compete with Different sectors prefer different brands (5)Market Division : (5)Market Division Difference in earning between city & country workers Difference in tastes City consumers prefer bigger televisions,newer technology & are willing to pay more - almost saturated Country consumers prefer smaller, more durable tvs that cost less - more competition, Which sector to target?? (6)Innovation of Industry : (6)Innovation of Industry Continuous innovation in technology sector Chinese market expects innovation Hard to keep one step ahead of competition Being innovative costs money and takes time Chinese TV Market : Chinese TV Market Segments in terms of product, customers and competition High-end Segment Low-end Segment (Q3) Market Segmentation : (Q3) Market Segmentation China is an engine for growth across Asia. Collaboration between Samsung and Sony LCD TV’s =Anchor Product Demand to reach 65 billion by 2009 Market Segmentation : Market Segmentation Samsung’s strong market position High end colour TV as a premium product Samsung’s commitment to building brand image Marketing Strategy : Marketing Strategy High-End Market First company to top $10billion in revenues from the TV market alone Strong Brand Image Marketing Strategy Cont’d : Marketing Strategy Cont’d “Samsung has time and time again demonstrated efforts to respond to people's need and dreams with products that are easy to use and affordable, while also being revolutionary and empowering” Samsung’s future looks bright!! What’s happened since 1995? : What’s happened since 1995? South Korea’s LG Electronics Inc and Samsung Electronics Co Ltd have overtaken China’s TCL Multimedia as the world’s top two television sellers in the second quarter of 2006, data shows from September of that year. Samsung, a strong player in the market for liquid crystal display (LCD) and plasma TVs, saw its second-quarter market share rise to 10% from 8.6% in the previous quarter. “The rapid decline in cathode ray tube (CRT) television shipments is rippling through the market as flat-panel TVs become increasingly price competitive,” Riddhi Patel, principal analyst for television systems with iSuppli, said in the statement. What’s happened since 1995? Cont’d : What’s happened since 1995? Cont’d Demand for digital televisions began to take shape in the second quarter and consumers started to buy more flat-panel TVs in the 40-inch size range, compared with the 27 to 29-inch sector a few years ago, Patel said. ISuppli estimated that CRT TVs would lose their historical dominance of the TV market in 2009, when they would account for about 42% of unit shipments, while LCD TV’s share would rise to 47.9%. In the fast-growing LCD arena, Sharp Electronics was the market leader in the second quarter, with 14.5% of the market share, followed by Samsung with 14.2% and Sony with 13.8%. Recommendations : Recommendations 1995 SAMSUNG need to step up their marketing and advertising campaign Globally. Target high end as incomes are rising. 2008 Use the fact that they are the Presenting Partner of the Beijing Olympics to their advantage by using the big screen TVs to sell products, and give away goods in competition or just freebies. Questions for the audience : Questions for the audience How many Indigenous TV manufacturers were operating in China in 1995? Samsung had recently entered a collaboration with another well known company….who is it and what was the agreement? Samsung is a diversified company with operations in four key areas….what are they? What is Samsungs top selling TV to date?

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