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Transcript of Samsung
Risk: Unsuitable carrier Population
Economic growth Affordable price: below $100 Capture the market for future expansion
Raise barrier of entry for competitors
Establish and solidify brand recognition
Economics of scale
Build consumer base Samsung's
high end smartphones Targeting emerging markets Effect on the bottom line
Profit for high-end smartphones 28%
Tarnished brand name
Competitors can try to capture the market Risk Course of actions Benefit: lowers cost-
Android license fee is $10-$15/unit to Microsoft
Risk: customer apps Partner with local carriers Switch to Samsung open source OS In the past, Samsung is known for taking a product and making it:
Lower cost Strategy Samsung’s current strategies:
High quality smart phones
Differentiation Strong global business network
Credibility of brand name
Innovative changes and inspiring new styles Founded in 1938
1987- broken into 4 separate companies
1990’s-Samsung subsidiaries concentrate on three major areas: electronics, engineering and chemicals
Current goal will be to expand in mobile, electronics and bio-pharmaceuticals. A brief background Expected outcome India and Indonesia Expand low end smartphone industry
Continue research in high end smartphone industry
Focusing on Indonesia and India
Switch to its own operation system, Tizen
Continue to provide the processors and operating systems for these phones in the market
Partner with local carriers and app developers Cynthia Baldwin, Edwin Bifelt, Maggie Matheson, Temuujin Munkhjargal, Lawana Pacheco, Natasa Raskovic, Venus Sung UAF MBA 690 Spring 2013 smartphones with low-end 2012 marketing budget of Apple, Microsoft, Hewlett-Packard, Dell, and Coca-Cola combined latest high-end smartphone will run on open source Samsung OS Tizen.
Tizen gives developers the flexibility to create a range of apps, more so than on the Android’s OS.
Samsung can have its own ecosystem, controlling revenues from mobile app development and mobile ads. Currently, Samsung receives only 10% profit-Google takes the rest. aggressive advertising campaign OS Tizen controlling the mobile processor market Mobile processor market will grow 30% this year to $13.5 billion and hit $16.5 billion next year
Samsung is the main mobile processor or application processor (AP) supplier for its own line of Galaxy products as well as the supplier for Apple.
Apple will shift 30% of its AP business from Samsung and eventually 80 percent by 2017.
Samsung buys UK chipmaker CSR Plc's mobile phone connectivity and location technology for $310 million to improve the modern chip technology, particularly the baseband chip solution that enables wireless devices' radio communications. Samsung
Operating profit: 12% is higher than 2%-3% for feature phone
Positioning between Apple and Nokia GDP growth Benefits Objective is affordability Main strengths: recommendations Any questions?