The Samsung group, a multinational enterprise founded by Lee Byung-Chul in 1938 in Daegu, is one of the largest multi-billion dollar corporations in the world. It is composed of numerous multinational businesses, all united under the Samsung brand. The South Korean conglomerate operates in various fields like electronics, heavy industry, engineering, constructions, chemicals and financial services . The three first businesses form the backbone of the Samsung group. Samsung's name comes from the meaning of the Korean word "Samsung" which is "tristar" or "three stars" . Today, the Samsung brand is the most famous Korean brand in the world.
Samsung group is South Korea's largest company and exporter and the 5th largest transnational corporation in the world. The group is currently headed by Lee Kun-Hee who is the third CEO of this group. Samsung exports represent more than 20 percent of the country's total exports .
The philosophy of the company is to "devote [its] human resources and technology to create superior products and services, thereby contributing to a better global society."
We can ask what makes Samsung one of the world's leading companies.
In order to understand the international policy of the global brand, we will focus on the international facts of the company. Then we will present the electronics and mobile phone industries. In a third part, we will analyze Samsung's strategy. Finally, we will determine the marketing strategy and marketing mix developed by Samsung.
The company makes sure that it launches its products simultaneously all over the world. Many Koreans consider the Samsung group as a symbol of national success. Koreans view the brand's international success and businesses as a model worth emulating.
Throughout the 1970s, Samsung, which was already a major manufacturer in the domestic market, began to export its products. In November 1976, Samsung Corporation was awarded a $300 million export prize and with this, Samsung Electronics started to export color televisions throughout Asia, Europe and North America. Thereby, in 1978, the company achieved $100 million in exports.
In the late 1970s and early 1980s, the company started to diversify its activities intensively to achieve global growth. The company which only produced semiconductors for the domestic market emerged as the world leader in semiconductor products with the success of the following model - 64K DRAM: Dynamic Random Access Memory, in December 1983.
The early 1990s presented tremendous challenges for high-tech businesses. Business began to flow between countries and companies and thereby Samsung developed its "New Management" policy. It started to build new factories abroad and in July 1992, Samsung Electronics built color TV factories in Bellingham, England, and in October, it extended its manufacturing activities to China.
In 1995, regional headquarters were based in the USA, Europe and China; a year later, three semiconductor factories were built in Austin, Texas, USA, and one in Mexico.
The "New Management" of Samsung is not only about quality products but also about quality people. The human resources development center organizes "customer service training sessions" for employees all over the world. In the 1990s, the company wanted to improve its image, the reason behind Samsung's participation in cultural and sporting events. In view of this positive participation, its chairman, Kun-Hee Lee, was selected as a member of the International Olympic Committee (IOC) in July 1996.
1997 was a dark year for nearly every Korean company because of a general collapse. Samsung was not an exception. The company decided to sell 10 business units to overseas companies for $1.5 billion. In 2004, Samsung group recorded a $50 billion in exports revenue, 21% of entire exports revenue in Korea.
Tags: Samsung marketing strategy, Samsung product portfolio, Samsung Electronics, Globalization degree of Samsung
[...] Samsung Electronics consists of various activities: semiconductors, digital displays, home electronics, mobile devices, computing products and home appliances.[17] In 2004, the activities of Samsung electronics were divided as[18]: o The electronics industry Samsung electronics is the leading player of the electronics industry as its turnover was worth an astounding 65.3 billion in 2006[19]. Hewlett Packard was ranked second[20] registering turnover in the proximity of that of Samsung Electronics. The electronics industry is currently dynamic as many households are buying plasma displays and MP3 players[21]. [...]
[...] In order to remain logical with the previous work, we will focus on Samsung Electronics with respect to the mobile phone industry Samsung's marketing strategy - Segmentation Since individuals have heterogeneous needs, it is important to proceed to the segmentation of the market. The market segmentation is process of dividing a total market into market groups consisting of people who have relatively similar product needs. The purpose is to see if the company's offer matches with the consumers' demand. If it is not the case, the company should design a product that responds to the needs of consumers. [...]
[...] MCKENZIE D., ‘Aiming to be the brand of choice', Dealer scope Merchandising Vol Iss p MOSSBERG W., BOEHRET K., ‘Dial Tone', Wall Street Journal ‘Samsung increasing procurement in TAIWAN', Economic Daily News, November WATTEZ E., ‘Design for better seduction, Samsung launches 15 products in a month', Capital, March 2008, pp. 66-68 Internet websites ABOUT SAMSUNG, ALLBUSINESS, BLOG4IT, < http:> BRANDCHANNEL.COM, < http:> BUDGET TELECOM, DHL, < http:> FEDEX, FORTUNE MAGAZINE, FRANCE MOBILES, FTC, < http:> GEODIS, ICMR, LOGISTICS TODAY, < http:> LOGISTIC LIST, SAMSUNG AMERICA INC., < http:> SAMSUNG ARGENTINA, SAMSUNG ENGINEERING & CONSTRUCTION WEBSITE, SAMSUNG FRANCE, SAMSUNG GREECE, SAMSUNG GROUP, SAMSUNG MEXICO, SAMSUNG INDIA, SAMSUNG IRELAND, UDEL, < http:> Databases EUROMONITOR, ‘Samsung Electronics Co Ltd' XERFI700, ‘Telecoms equipment groups in the world' XERFI700, mobile telephone' XERFI700, ‘Manufacture of brown goods' XERFI700, ‘Electronic equipment groups in the world' Appendices Appendix 1 XERFI700, (2006), Telecoms equipment groups in the world Blog4it, http://www.blog4it.com/index.php/SAMSUNG-three-stars.html, website consulted on the 03/26/08 Ibid. [...]
[...] The philosophy of the company is to “devote [its] human resources and technology to create superior products and services, thereby contributing to a better global society."[4] We can ask what makes Samsung one of the world's leading companies. In order to understand the international policy of the global brand, we will focus on the international facts of the company. Then we will present the electronics and mobile phone industries. In a third part, we will analyze Samsung's strategy. Finally, we will determine the marketing strategy and marketing mix developed by Samsung. [...]
[...] This process is a combination of economic, technological, socio-cultural and political forces.” The globalization strategy of a company is defined by: - A logic of efficiency: In order to make profits, Samsung makes economies of scale via the commercialization of a standardized product throughout the world. Since Samsung sells electronic products that incur high costs in the research and development stage, the company needs to realize economies of scale in order to rapidly amortize the cost of the products. Furthermore, the acceleration of the technological rhythm and the shortening of the life cycle of the products oblige the global companies to make economies of scale. [...]
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