Samsung Electronics
Case: Samsung Electronics
Case Summary.
Over the previous five decades, the semiconductor industry had grown in economic importance. In 2000, the industry enjoyed $200 billion in sales, and the industry grew by an average of 16% per year since 1960.
Growth: Semiconductor Industry has 16% of growth rate
On average, 1960 -2000
In 1969 Semiconductor Company founded, began with Wafer production. And acquired by Samsung latterly
In 1974 Samsung Group started Electronics industry in television market
In 1980 Samsung Group more focus on Electronics market and found Samsung Electronics, manufacturing in South Korea built
In 1992 8” Wafer technology developed, dramatically shift to Samsung of production capacity
Crisis: 2001 –2002 Semiconductor Industry Crisis
After 2002 Recovery: Samsung survived crisis with their competency and branding strategy
In 2004 Samsung Brand being listed as 21st valuable brands in the world by InterbrandCorp.
Industry Summary
Semiconductor Industry
Avg. Growth rate = 16%
Sales= $200 Billions
(1996 –2000)
DRAM Production
Electronics design tools; Samsung develop in-house
Wafers; Samsung owned technology to produce DRAM with the largest wafer (more production capacity)
Materials; Semiconductor (Silicon and Germanium) are costly in production process and has a few suppliers
System Firms; Samsung can customize to meet customer requirements
Past Strategy and Challenge
Past Strategy
Kun HeeLee’s Strategy is learn from competitors, Samsung invests in DVD and Video products for billions, Less priority in quality control (sampling for quality check will be done in some parts for a product), concentrate with high volume production
Economies of scale production, propose low price products, Line stretching marketing strategy and Variety of electronics products
Overall Low-Cost Provider is the main strategy of Samsung
Challenge Strategy
Samsung focused more on niche market and low price strategy
Case Summary.
Over the previous five decades, the semiconductor industry had grown in economic importance. In 2000, the industry enjoyed $200 billion in sales, and the industry grew by an average of 16% per year since 1960.
Growth: Semiconductor Industry has 16% of growth rate
On average, 1960 -2000
In 1969 Semiconductor Company founded, began with Wafer production. And acquired by Samsung latterly
In 1974 Samsung Group started Electronics industry in television market
In 1980 Samsung Group more focus on Electronics market and found Samsung Electronics, manufacturing in South Korea built
In 1992 8” Wafer technology developed, dramatically shift to Samsung of production capacity
Crisis: 2001 –2002 Semiconductor Industry Crisis
After 2002 Recovery: Samsung survived crisis with their competency and branding strategy
In 2004 Samsung Brand being listed as 21st valuable brands in the world by InterbrandCorp.
Industry Summary
Semiconductor Industry
Avg. Growth rate = 16%
Sales= $200 Billions
(1996 –2000)
DRAM Production
Electronics design tools; Samsung develop in-house
Wafers; Samsung owned technology to produce DRAM with the largest wafer (more production capacity)
Materials; Semiconductor (Silicon and Germanium) are costly in production process and has a few suppliers
System Firms; Samsung can customize to meet customer requirements
Past Strategy and Challenge
Past Strategy
Kun HeeLee’s Strategy is learn from competitors, Samsung invests in DVD and Video products for billions, Less priority in quality control (sampling for quality check will be done in some parts for a product), concentrate with high volume production
Economies of scale production, propose low price products, Line stretching marketing strategy and Variety of electronics products
Overall Low-Cost Provider is the main strategy of Samsung
Challenge Strategy
Samsung focused more on niche market and low price strategy