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Dominic Edwards

on 26 August 2015

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Transcript of Samsung

Samsung is made up of many subsidiaries including:
Samsung Electronics
Samsung Heavy Industries
Samsung Engineering
Samsung C&T
Samsung Life
Range of different electronics
Also a large supplier of electronic components such as:
lithium-ion batteries,
flash memories
hard drives
Methods of Expansion
Ethical Initiatives
Find God in all things
Transformations to improve environmental efficiency
Samsung’s green management philosophy
Prioritizes health of employees and;
creating a sustainable environment
Environmental Initiatives
Examples of environmental responsibility
Reusable packaging technology for refrigerators
Invested USD 6.3bn in sustainability
50% reduction in greenhouse gas emission
Over 3,300 third party verified product environmental certifications
Ignatian comradery and collaboration
Social responsibility to ensure the health and safety of their employees and the communities where they operate
2,000 highly trained employees to oversee factory operations and conduct regular safety inspections
Improvement of safety ties with social values and responsibiliy
Ignatian Service
70% of worforce participates in volunteer activities
Social Initiative: 'Briquette Delivery of Love'
Employees deliver these to low income families preparing for winter
Source of warmth
Ties in to Ignatian service
Oh-Hyun Kwon
The graph of revenue and sales trends up, then down from 2013 to 2014.
Due to 2 reasons:
Fierce Competition
Reduced amount of marketing investment
Fierce Competition
Increase in competition
Slow global demand for phones and tablets
Apple's iPhone resurgent
Decrease in marketing expenditure
Traditionally relied on a heavy marketing to promote its devices
Including new Note range
But, expenditure was reduced, so not as many advertisements
Challenges and Risks in Expansion
When marketing globally and competing with other high-pofile companies, Samsung faces many challenges and takes many risks.

Financial Risk
Innovation causing right offs

Cultural Challenge
Mysoginistic Ad

Legal Risk
Battle with Apple

Economic Risk
Paradigm shift in technological innovation which results in
obsolescence and,
massive right off in inventory
When Apple introduced iPhone 3G
Samsung suffered
Cultural Challenge
Markets its proucts all around the world
Sometimes doesn't go to plan
Example: Promotional video in 2013
Mysoginistic portrayal of women
Offended many people in Western Countries
Shows cultural risk of marketing in different countries
Legal Risk
Apple sued Samsung, for copying iPhone
Samsung counter-sued
Cost both companies billions of dollars
Samsung ended up grabbing 36% of share market
Samsung took a risk, but it paid off
Map of Samsung Electronic Global Operations
In 2004, Samsung formed S-LCD with Sony
(Bought 100% in 2011)
Sydney's M4 Motorway
In June 2015, a joint venture between Samsung C&T and Leighton won contract to build M4 motorway
Last week, Samsung raised equity on the NYSE for growing biotech, with junior JV partner (Biogen)
Increase in brand awareness and increasing revenue
Awareness took off in 1993 with new logo in English.
Benefits of the Launch of Samsung Galaxy
Market share overtook leading rival, Apple
Revenue is USD 300bn from 180 countries

Keeps costs low
Advantages of economy of scale
When Samsung went global, its production increased
Largest amount of TV's,
2nd largest amount of computer chips,
Largest phone manufacturer
Contrast with Samsung Motor Company
Examples of economies of scale
US $14bn manufacturing computer chip plant
US $560m TV production plant
Benefits of Expansion
Samsung is 7th most valuable brand globally
Benefits from expanding their businesses globally are:
increase in brand awareness and increasing revenue
ability to keep costs low by economies of scale
New low cost manufacturing plant in Vietnam
Dominic Edwards

Monte Prendiville

Kelvin Zheng

Samsung Presentation

Year 10 Commerce

TNC Assessment
Full transcript