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Transcript of SAMSUNG PRESENTATION
Through innovative, reliable products and services; talented people; a responsible approach to business and global citizenship; and collaboration with its partners and customers, Samsung is taking the world in imaginative new directions
Vision & Mission
Samsung Values & Goals
Strategy & Design
Low Mobile Production Costs
Chinese factories (Shenzhen)
Samsung is currently in a market where Apple,Sony, HTC, Apple and LG all compete for dollars in the mobile industry.
Largest Buyers are Competition
Give opportunities for employees to reach their full potential
Passion for excellence
Change is constant and innovation is critical
Operate in an ethical way
Create prosperity and opportunity for others
Specific plan to reach $400 billion in revenue and become one of the world’s top five brands by 2020
Explore new territories, in health, medicine and biotechnology
Great design, Engineering
Too many products, not on a specific types
Competitors are large as they are in market
Creating software’s for mobile phones
Open more stores to serve more customers
Introduce something new
Low profit margin
Pfanner, Eric. "Samsung’s Profit Rises, but So Does the Competition." The New York Times. The New York Times, 25 July 2013. Web. 5 Oct. 2014. <http://www.nytimes.com/2013/07/26/technology/samsungs-profit-rises-but-so-does-the-competition.html?_r=0>.
"Making the Right Call." Making the Right Call. WestMinster Advisers, 11 Feb. 2014. Web. 5 Oct. 2014. <http://www.westminsteradvisers.co.uk/wp-content/uploads/2014/02/Making-the-right-call-political-challenges-facing-the-mobile-industry.pdf>.
Gayle, Damien. "Apple and Samsung Have BOTH Infringed Each Other's Patents and Must Withdraw Products from Shops - in South Korea." Mail Online. Associated Newspapers, 24 Aug. 2012. Web. 5 Oct. 2014. <http://www.dailymail.co.uk/sciencetech/article-2192955/Apple-Samsung-BOTH-infringed-patents-South-Korean-court-rules-latest-battle-industry-supremacy.html>.
"Apple v. Samsung Patent Trial Recap: How It All Turned out (FAQ) - CNET." CNET. Web. 6 Oct. 2014. <http://www.cnet.com/news/apple-v-samsung-patent-trial-recap-how-it-all-turned-out-faq/>.
"Databases, Tables & Calculators by Subject." Bureau of Labor Statistics Data. Web. 6 Oct. 2014. <http://data.bls.gov/timeseries/LNS14000000>.
SWAT analysis, Interbrand (2013). Best Global Brands 2013. http://www.interbrand.com/en/best-global-brands/2012/Best-Global-Brands-2013.aspx
Weissman, Jordan. "Whoa: Samsung Is Responsible for 20% (!?) of South Korea's Economy." The Atlantic. The Atlantic Business, 31 Jul. 2012. Web. 6 Oct. 2014. <http://www.theatlantic.com/business/archive/2012/07/whoa-samsung-is-responsible-for-20-of-south-koreas-economy/260552/>
"Affiliated Companies." Samsung Group. Web 6 Oct. 2014.<http://www.samsung.com/us/aboutsamsung/samsung_group/affiliated_companies/ >
Nisen, Max. "Samsung Has A Totally Different Strategy From Apple, And It's Working Great." Business Insider. Business Insider Strategy, 15 Mar. 2013. Web. 6 Oct. 2014. <http://www.businessinsider.com/samsung-corporate-strategy-2013-3>
Shaughnessy, Haydn. "Samsung's New Twist On The Apple Business Model." Forbes. Forbes Tech, 11 Jun. 2013. Web. 6 Oct. 2014. <http://www.forbes.com/sites/haydnshaughnessy/2013/06/11/samsungs-new-twist-on-the-apple-business-model/>
Murray, Lance. "IBM, Samsung Top List for 2013 U.S. Patents in 2013." Biz Journals. Dallas Business Journal, 15 Jan. 2014. Web 6 Oct. 2014. <http://www.bizjournals.com/dallas/blog/2014/01/ibm-samsung-tops-list-for-us.html>
Samsung Group. "Values and Philosophy." Web. 28 Sept. 2014. <http://www.samsung.com/us/aboutsamsung/samsung_group/values_and_philosophy/>.
"Sustainability Report." Samsung Group. Web 6 Oct. 2014.<http://www.samsung.com/us/aboutsamsung/sustainability/sustainabilityreports/sustainabilityreports2014.pdf >
Smith, Jaacquelyn. "The World's Most Sustainable Companies of 2014." Forbes. Forbes Leadership, 22 Jan. 2014. Web. 6 Oct. 2014 <http://www.forbes.com/sites/jacquelynsmith/2014/01/22/the-worlds-most-sustainable-companies-of-2014/>
Samsung Group is South Korea's largest business contributing to nearly 20% of the country's GDP
Notable International Divisions:
-Samsung Heavy Industries (Ship Building)
-Samsung Engineering & C&T (Construction & Engineering)
-Samsung Life Insurance
-Cheil World Wide (Advertising)
Strategy & Design
Samsung Group is made up of many different divisions that employ wide variety of strategies
Samsung Electronics is a hybridization of a focus cost leadership & broad differentiation
Strategy & Innovation
-Partnerships with multiple universities around the world
-50,000 Employees and 42 Global Research Facilities
-Samsung Strategy and Innovation Center (Entrepreneurship)
Focus of innovation is tilted towards supporting industries versus continuous development
-“Samsung will spend 1.2 trillion won (US$1.07 billion) over the next five years to help its business partners and subcontractors.” (Yonhap news)
-Massive microchip market share
Strategy & Intellectual Property
4,700 U.S. patents filed 2013 (2nd only to IBM)
Apple Inc. v. Samsung Electronics Co., Ltd.
Forbes ranked Samsung Group 34th most sustainable company world wide
Samsung, which was also the largest IT company on the list (annual fortune 500 list) reported revenues of $178.6b and profits of $20.6b. However, although Apple lagged behind at 19th place with revenues of $156.5b and profits of $41.7b double that of Samsung’s.
Samsung's model is the "supplier ecosystem"
-Cost advantage compared to Apple
-9% of revenue reinvested into R&D (Broad Differentiation)
-Differentiated advantage compared to other Android systems
-Insane vertical integration and advantage in manufacturing/innovation