Introduction - Samsung History
Samsung, a Korean firm, was started in 1938, as a company which produced agricultural products. Samsung Electronics Company was founded in 1969, as a low cost manufacturer of black & white televisions. It acquired the semiconductor business in 1970s, thus entering into the electronics industry. Strategies
- Vertical integration - Manufacturing was a core competency for Samsung. It tried to keep the plants competitive by forcing them to compete with outside companies for internal business. - Hardware focus – Samsung’s strategy was to collaborate with content providers when appropriate. - Product breadth – product diversification was something that differentiated Samsung from tis competitors. Samsung R&D and manufacturing spanned multiple product categories. - Innovation – transition from analog to digital technology. Investment on digital technologies gave way to focus on premium products. Challenges
Samsung mainly sold its products to OEMs who in turn sold these under their brand names. So one of the challenges that Samsung faced was brand recognition. Samsung needed to develop strong brand power. Another challenge was that the value of marketing was not appreciated in Samsung. The managers believed that marketing was nothing more than selling, required only for weak products. The general managers were skeptical and had a ‘show me’ attitude, emphasizing on proof that marketing was actually needed. The various units of SEC were using different advertising agencies worldwide, so SEC did not have a single, unified face for its customers. The logo and slogans used were different and hence needed a consolidation throughout, so as to develop a unique brand essence & also boost internal morale. The marketing budget allocations were also one of the causes of the challenges faced. The business unit funds were mainly directed at short term, temporary price promotions. Prioritization of the GMP funds and...
Please join StudyMode to read the full document