Lecturer name: Chia Su Aie
Student name: Khamzin Zhassulan (TP023113)
Submission date: 8th April
Factors that triggered the growth of Samsung in the global handset market
Factors of growth
2) Strategies adopted by Samsung as the second largest handset market in the global mobile market. Corporate strategy, business level strategy
Samsung business strategy
3) Samsung overtakes Nokia in a handset market
Samsung Electronics was founded in South Korea in 1969. It is part of one of the multibillion corporations in the world. Samsung is one of the largest handset manufactures, which produce variety of electronic products. The company dominates its domestic rival as the world’s number the OEM in sales of mobile phones. Samsung have their manufactured principally in large production facilities elsewhere in Asia, whereas their domestic activities primarily concentrate on product development and design effort. The name Samsung means “three stars” in Korean. Samsung surprised Japanese rival Sony in 2005 for the first time become the world’s largest and most popular consumer electronic brand. In 2008, Samsung shipped 197 million handsets globally. It overtook Siemens of Germany and Hewlett-Packard for the USA in 2009 with revenue of $117.4 billion to take the number 1 spot as the world’s largest technology company. Samsung has turned to designing slick mobile phones. In 2007, Samsung’s mobile phone division overtook Motorola to gain second place in the market and has again seen growth in handset sales reaching 14% share.
1) Factors that triggered the growth of Samsung in the global handset market The company’s mobile handset line is the Galaxy S, selling almost twice as many smartphones as Apple. Samsung’s growth has been driven by popular Android service, elegant hardware design, extensive global distribution and memorable sub brands. In 2010, Samsung Corporation had 9.3% share of smartphone in the market, while Apple had 17.4% of market share. Nokia has been losing its market share because of competitors such as Apple and Android operation systems. SWOT analysis
* Samsung is a top rising brand in the world and is 9th most valuable brand with value around 30$ billion. The value of Samsung is increased by 40 from 2011 to 2012. * Samsung number 2 in terms of market share, it has overtaken Nokia’s market in smartphones. * Innovation and design. The Company won many awards for its product’s design. * Low production cost. Samsung offer low price product with a high quality, it is because the company sets up manufacturing plant in low cost counties like India, which reduces, logistics and supply chain cost. * Samsung brand value increased by 80% in past 3 years. * Samsung Galaxy is selling very fast which makes the brand more powerful.
| * Samsung Mobile produced a series of mobile phones which caused cannibalism. * Focus on too many products. Samsung Corporation has four different industries with different products. It loses a focus when competing in too many industries and many products. * Samsung has too much of dependence for software from other companies, which cause a lot of expenses.
* Growing demand for quality application processor. Samsung is manufacturer that produces application processor for phones and tablets. * Samsung’s advantage is a large amount of patents, which are discovered by engaging in costly R&D or through acquisition of other firms.
| * Fast technological change. Samsung as other companies faces rapid technological change. This is really hard for the company to introduce a new, innovative and successful. * The potential market of Samsung is India, and entry of other competitors is also high.
| Factors of growth
* Samsung knew that in order to be...
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