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Transcript of SAMSUNG ELECTRONICS
Taegu, Korea TVs Computers Cell phones Air-conditioner Refrigerators ... heavy industry
finance and banking
... Brief history 1938-1969 1970-1980 1980-1990 1990s 2000-present ELECTRONICS ELECTRO-MECHANICS Ltd. SDI Ltd. CORNING PRECISION MATERIALS Ltd. LED Ltd. MOBILE DISPLAY Ltd. SDS Ltd. Net sales and net income of Samsung for the period 2006-2010 A leader in producing and distributing televisions in Vietnam centre of Southeast Asia
large market for goods and services as well as market for human resouces
government incentives and commitments to foreign investors launch of new high-end Nokia phone, Lumina 900 and Lumina 920, introduction of iPhone 5 (decreasing demand for high-tech products) Short-term Offer discounts and promotions for both distributors and consumers
Improve the services and contents in their current product
Try to get supports from government Long-term Optimize their cost structure
Develop a total new product Implement aggressive marketing campaign to position company brand name as well as deposition competitors’ image
Continue improve production line to reduce cost
Build a strong relationship with distributors, software developers Build a wider distribution channel
Offer mid-class mobile phone with a reasonable price
Offer low price smartphone in order to create a high entry barrier Macro-environment PEST analysis Growth rate: the economy is still increasing above the rate of 5% per year since the 2008-crisis Inflation rate: decreasing significantly - good signal for companies Interest rate: 2-3 times higher in comparison with others in same area Political-legal factors Socio-culture: similarity of culture/young people/cheap and diligent workforce Technology: Nature: geographical location, natural resources are advantage of Vietnam Industrial analysis Existing competitors LG Nokia Canon Bargaining power of buyers Bargaining power of suppliers Substitutes Potential competitors International strategies of Samsung in Vietnam Cost reduction pressure Major competitors have low cost structure
Contraband goods and counterfeit goods Pressure for local responsiveness:
Developing Vietnamese language operating system and applications
Tend to produce more no-cap mobile phone instead of slider mobile phone flip phone HIGH PRESSURE Business strategies of Samsung in Vietnam Corporate-level strategies Vertical Integration
Alternative for vertical integration
Business-level strategies Modes of market entry