Assignment 1: Samsung electronics
Samsung electronics is a world renowned company for its innovative electronics products. Samsung was found first by Mr. Lee Byung-chull in 1938 was first a trading company, slowly the company diversified into different area examples like retails, securities, textiles, insurance and food processing. Samsung only managed to enter the electronic market in the late 1960’s followed by the death of Mr. Lee, Samsung split into 4 different major companies Samsung, CJ, Hansol and Shinsegae. Samsung did not really made an impact with their electronic products until late 1990’s where mobile phones and semi conductors is their main source of income, till present Samsung electronics have become one of the leading brand in household appliances, computer components and smart phones in the market. Q2 Strength
| -Invested 6-7% of total revenue annually and for the year 2011 they pumped in approximately 10.3 trillion won ( around 11.4 billion Singapore dollar ) technology development hence they are well known for their advanced technology-Focuses on innovation to attract more customers so to capture more market share-Strongly believes in the important of their human resources, who plays a significant part in every aspect of a company that will lead them to success
| -Was not proactive when it comes to introducing new products but just waiting for an opportunity to counter their opponents new product-Customers are complaining about their product is not user friendly, being so they might lose out to certain category of consumers.
| -Venture into not just mobile phones but also home appliances that will help the company to widen their market shares and profit margin at the same time strength their brand name in electronic industry-Great opportunity for the company to produce more user friendly electronic products to attract more consumers into switching to their brand from competitors share
| -The company is still very new to mobile phone market, as compared to their well-established rival like Apple, Nokia, Blackberry and etc, it makes them hard to stand firm in the mobile industry and definitely will be a struggle to stay at the top of the market.-There are currently substantial amount of existing competitors in the market and with such advancement of technology, there might still be more competitor arises to snatch the existing shares of the market
Demographic trends for Samsung electronics focused on age group of 25-39 as it is an analysis based in Singapore majority of the consumers are Chinese and common religion beliefs is Buddhism. Consumer’s occupations mostly are association professionals and technicians on an average earning of $1500~2000 Singapore dollars, staying in HDB 4 to 5 room flats. From the statistics shown from the demographic trends, clearly Samsung targeted group is working class that are around the age to start their own families which probably make a big boost on their sales for housing appliances. For example, there is a cheap version of tablet galaxy note 7 for students which are relatively more affordable than 10.1 versions which are meant for professional usage.
Samsung electronics adopted a very effective strategic by using existing market that were ready-made by their rivals but they did not just followed blindly into the market, instead they did set a certain of minimum requirement for them to invest into a new market. For example, like the economic size of the country and the spending power of their consumers where middle income tier always their target. Furthermore, Samsung always make smart moves like even when they are penetrating into an existing market, it will always still be in an initial stage of the product life which will not affect their sales in overall.
Political issues were Samsung electronics main problem when they venture their business into South-East Asia and Africa unlike China and India,...
References: Levin, D. (2013, February, 14). Apple’s search technology lawsuit against samsung
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Reuters. (2007, November, 05). Ex-samsung executive accuses group of massive
Samsung electronics annual report. (2011). 2011_SEC_AnnualReport_eng.pdf.
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