Business Model Analysis Samsung libre

Topics: Mobile phone, Operating expense, Samsung Electronics Pages: 9 (1837 words) Published: November 19, 2014
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Business
Model
Analysis

September 12

2013

[To i sightfully ap out a fir s usi ess odel
and describe its strengths & weaknesses]

Submitted by: Amanpreet Singh Monga

Case Study on Samsung
Electronics

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Company Overview and History:
Samsung Electronics Co. Ltd. is part of Samsung group which started way back in 1938 when it was a company that exported dried fish to China and now is a global conglomerate with Samsung Electronics Co. Ltd. (SEC) being one of its core businesses. SEC is mainly engaged in the production of consumer electronic products and operates in two divisions: end product division producing digital media and communication products and component division which produces semiconductors. With profits at USD 21.68 billion and revenues of USD 187.85 billion it has surpassed sales of its main competitor1 and world renowed mobile a ufa turer Apple

hi h had re e ues of USD 164.69 billion (Forbes, 2013) and catching

up with I tel a other o petitor i its se i o du tor usi ess (Shah, 2013). Brief History:

1969

Samsung Electronics was formed

1970

Successful production of 12inch black and white TV

1970

Starts its first export of the TV sets to Panama

1972

Sets up Braun-tube bulb factory and capacity of TV production increased to 480,000

1978

Becomes world no.1 black and white TV manufacturer and exports reached USD 100 million

1980

Merger of Samsung electronics and Samsung Semiconductor to create synergies

1982

Goes Global with manufacturing set up established in Portugal. Followed by the U.S, the U.K and Mexico

2013

World s largest consumer electronics manufacturer

Source: (Samsung, 2013) and (Davidson, 2013)

1

Samsung and Apple mainly compete in communication product space (i.e smart phones and tablets)

1

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Business Canvas

Samsung Electronics

- Retail stores
- Telecom Operators
- Logistics suppliers
- Distributors
- Suppliers (raw
material and
strategic)
[e.g Strategic
Supplier – Google]

-Marketing campaign
-Brand building:
*Sponsorship
*CSR
- Quality management
- Innovation

- IP (Patents)
- Human
Resources
-R&D
Infrastructure

- R & D [expense CAGR 2009-2012 @ 13.05%
- Expense related to [Production, Labor, Human
Resources, Marketing, Logistics and Legal]
(CAGR 2009-2012 @ 11.57%)

Provide
differentiated
and quality
products to wide
range of
customer
segments,
through
innovation and
Corporate Social
Responsibility.

-Sponsorships
-Corporate Social
Responsibility (CSR)
- Marketing
- Customer service
- Creating new
Products

-Retail Stores
- Distributors
-Company outlets
-Telecom
Operators
-Corporate Sales
Employees

Revenue Portfolio:
- TV
- Semiconductor
- Digital Cameras - Digital Appliances
- Handset division

- Individual
Customers
- Corporate
Organizations and/or
“ME s.
[Retail, Healthcare,
Education or
Hospitality]
{example: Apple for
semiconductor
usi ess is “a su g s
client}

Revenue CAGR
(2009-2012 @ 11.9%)
- Handset division
Contribution @ 23.9%
(As of Q1 2013)

Summarization of Business Model
Samsung electronics is operating in the segments of Consumer electronics under different verticals namely visual display business with market share of 37.22% selling (Television, Music systems); digital appliances business selling (Refrigerators, Washing machines, Oven, Microwaves); printing solutions with market share of 16% selling (Heavy duty and Normal printers); health and medical equipment business selling (X-ray, Ultrasound, Chemical analyzer machines) ; IT & mobile communications under verticals mobile communication business with market share of 30.4% selling (Smart phones, Tablets and Laptops); network business with market share 9.36% selling (Next generation network infrastructure and solutions); digital imaging business with market share of 12.1% selling (Digital cameras and camcorders) and Device...

References: 1. Davidson, J. (2013, 09 07). Financial Review. Retrieved 09 08, 2013, from Financial
Review:
2. Financial Times. (2012, 01 07). Financial Times. Retrieved 09 10, 2013, from Financial
Times:
3. Forbes. (2013, 05). Forbes. Retrieved 09 08, 2013, from Forbes:
http://www.forbes.com/companies/samsung-electronics/
4. France-Presse, A. (2013, o7 27). Ndtv gadgets. Retrieved 09 09, 2013, from Ndtv
gadgets: http://gadgets.ndtv.com/mobiles/news/samsung-overtakes-apple-tobecome-worlds-most-profitable-smartphone-maker-397662
5. Interbrand. (2012). Best Global Brands 2012. Retrieved 09 09, 2013, from Interbrand:
http://www.interbrand.com/en/best-global-brands/2012/Best-Global-Brands-2012Brand-View.aspx
6. Kelion, L., & Lee, D. (2013, 09 04). BBC News Technology. Retrieved 09 11, 2013,
from BBC News: http://www.bbc.co.uk/news/technology-23961692
7. Kingsley-Hughes, A. (2013, 08 08). ZDnet. Retrieved 09 11, 2013, from ZDnet:
http://www.zdnet.com/apples-migration-from-samsung-boosts-semiconductorbusiness-in-2013-7000019161/
8. Oliver, C. (2011, 08 24). Financial Times Tech Hub. Retrieved 09 11, 2013, from
Financial Times: http://www.ft.com/intl/cms/s/2/6b1534e8-ce4d-11e0-99ec00144feabdc0.html#axzz2eUvodpoU
9. Ramstad, E. (2011, 08 25). The Wall Street Journal. Retrieved 09 11, 2013, from The
Wall Street Journal: http://blogs.wsj.com/korearealtime/2011/08/25/the-koreangovernment-in-smartphones-theyre-not-that-stupid/
10. RDT Trusted Brands. (2013, 03). European Trusted Brands 2013. Retrieved 09 10,
2013, from RDT Trusted Brands:
13. Samsung. (2013, 06 27). Samsung Village. Retrieved 09 08, 2013, from Samsung
Village: http://www.samsungvillage.com/blog/2013/06/a-walk-through-the-historyof-samsungs-innovation.html
14. Shah, A. (2013, 05 13). Computer World. Retrieved 09 11, 2013, from Computer
World:
15. Shaughnessy, H. (2013, 08 31). Forbes. Retrieved 09 09, 2013, from Forbes:
http://www.forbes.com/sites/haydnshaughnessy/2013/08/31/google-pitting-itselfagainst-samsung-stokes-up-device-war/
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