SAMSUNG COMPANY

JESSICA
015201300040
HTB 2013
TABLE OF CONTENTS

TABLE OF CONTENTS.2
EXECUTIVE SUMMARY..3
INTRODUCTION4
COMPANY FOCUS4
SAMSUNG COMPANY- A BACKGROUND AND NEED
A CHANGE OF STRATEGY.5
SAMSUNG CHANGING STRATEGY..7
EXTERNAL ENVIRONMENTAL ANALYSIS8
INDUSTRY ANALYSIS SAMSUNG MOBILE PHONES...11
INDUSTRY ATTRACTIVENESS13
COMPETITORS ANALYSIS..14
INTERNAL ENVIRONMENT ANALYSIS.16
VALUE CHAINS ANALYSIS..16
RESOURCES: TANGIBLE RESOURCES & INTANGIBLE RESOURCES.19
RESOURCES - CAPABILITIES...23
CORE COMPETENCIES..24
SWOT ANALYSIS ...25
BCG MATRIX...26
RECOMMENDATIONS...27
REFERENCES..29

EXECUTIVE SUMMARY
2

For over 70 years, Samsung has been dedicated to making a better world through
diverse businesses that today span advanced technology, semiconductors, skyscraper
and plant construction, petrochemicals, fashion, medicine, finance, hotels, and more.
Our flagship company, Samsung Electronics, leads the global market in high-tech
electronics manufacturing and digital media. Through innovative, reliable products
and services; talented people; a responsible approach to business and global
citizenship; and collaboration with our partners and customers, Samsung is taking the
world in imaginative new directions.
From our innovations

in

consumer electronics

to our developments

in

biopharmaceuticals, Samsung shares impactful experiences each day with people

around the globe. Through our devotion to create superior products and services
across all areas of our business, we strive to enhance the lives of people everywhere
and bring positive change to the world around us.
Our purpose is simple: Its giving you the freedom to take journeys; to discover new
experiences; to take charge of your world. Its the power to connect who you are
today with who you want to be tomorrow. In a changing world, were changing faster.
We are relentless in our pursuit of discovery and innovation, creating technologies and
providing services that empower. Opening the door to a world of possibility.
Samsung Company main problem as a Samsung mobile phones are no exception to
the rule. Because cell phone providers rush to get products to the market, often times
will notice that the phone does not act perfectly. It can resolve many of the Samsung
issues (regardless of the device) since phone manufacturers use the same software on
multiple phones. We measure our success not only in our business achievements, but
also by how well we serve our community, protect our planets resources, and make a
difference in people's lives. We embrace our responsibility to contribute as a good
citizen, taking action around the world to foster a better society, protect and improve
the environment, and strengthen our communities.

INTRODUCTION
3

Indonesian consumers keenly spend their rising personal earnings on electronics,

striving for the personal comfort and entertainment that characterize a middle-class
lifestyle in many parts of the world. The driving force behind this consumer trend,
aside from the general increase in living standards, is urbanization and the booming
residential property market in Indonesia's emerging economy. Setting up shop in
Southeast Asia's largest economy offers global manufacturers of consumer electronics
the chance to tap rising demand in Indonesia and the wider region.
With strong competitors like Iphone 6 and 6+ of Apple product, HTC One M9 with
HTC product, even LG G4 of LG product. Samsung Company can improve their
innovation to drive positive charge to their customer. Like Samsung Galaxy S series
such as Samsung Galaxy S selling over 25 million units, Samsung Galaxy S II selling
over 40 million units, Samsung Galaxy S III selling over 60 million units, Samsung
Galaxy S4 selling over 40 million units and finally over 12 million units of
the Samsung Galaxy S5 were sold during its first three months of availability, and the
new one of Samsung Galaxy S6 were sold during this year.

OUR FOCUS
One of the key changes for the S6 is this is the first flagship Samsung phone that has a
non-removable battery. This battery will last 12 hours of continuous web browsing on
Wi-Fi according to Samsung, but its biggest trick is the fast charging. Ten-minutes of
charging equates to about three to four hours of use and it can charge from 1% to full
in about an hour and 20 minutes - faster than any other rival phone.
3D gaming hits both devices pretty hard and will drop the battery by about 40% in
three hours, but that will be closer to a 45% drop off if youre using the non-Edge S6.
They both feature wireless charging, too, but we found that wireless charging was
better as a battery maintenance feature rather than replenishing your phones power.
Three hours of wireless charging only gets the battery up to 70% so wed recommend
sticking with the fast charger for general charging needs.

SAMSUNG COMPANY - A BACKGROUND AND NEED A CHANGE

OF STRATEGY
The Samsung Galaxy S, announced in March 2010, was Samsungs first foray into the
US smartphone market. While the company did have a few other Android releases
before this, the Galaxy S was the first serious attempt by the company to take on the
iPhone, and take a piece of the Android pie that, at the time, was dominated by HTC
and Motorola.
The Samsung Galaxy S definitely stood out in a crowd, featuring a beautiful and
vibrant 4-inch Super AMOLED capacitive touchscreen display, and a 1Ghz ARM
Hummingbird processor, a top of the line processor back then. The smartphone was
well-received in tech circles, and achieved more than decent sales figures of around
24 million worldwide.
The Samsung Galaxy S2 received rave reviews across the board, topping an amazing
2011 by receiving the Smartphone of the Year award at last years Mobile World
Congress Global Mobile Awards. Samsung has definitely paid attention to the success
of the Galaxy S2, with the device, which first released with Android 2.3 Gingerbread
on-board, now receiving official updates to Android 4.1 Jelly Bean. This attention
ensured that the Galaxy S2 is still one of the most popular Android devices around.
Taking complete control from US network carriers. In 2012, the device launched in
the US under the Galaxy S3 branding, and featured no differences across variants
available from different networks. It also enjoyed one of the most successful US
launches, with every major network carrier offering the Galaxy S3. The major
difference between the US and international variant was that the US version was
powered by a 1.5 Ghz dual-core Snapdragon S4 processor for its LTE integration, as
well as 2GB RAM on-board, as opposed to the international version which boasted a
quad-core Samsung Exynos processor and 1GB of RAM.

In 2013, The last few weeks have been dominated by Galaxy S4 rumors, leaks, and
discussions, ranging from the expected specifications of the device, whether
the Samsung Galaxy S4 will dominate the US market, and even though no one
expects it, why the Galaxy S4 might fail, and whether that might be a good thing. We
even asked you what your dream Samsung flagship smartphone would be like, and the
answers have definitely been interesting and varied.
In 2014, In most of the Galaxy S5 shades it doesnt actually feel too bad, the softtouch finish giving a shot of tactility and texture. The white version, though, feels a
lot harder. Its plain "not nice" according to much of the Trusted Reviews team. Even
the darker Galaxy S5s dont exactly look or feel all that expensive, though. The very
thin plastic rear and the fake chrome sides just dont have the premium vibe you
might expect when spending hundreds of pounds on a phone. And, in 2015 The
Galaxy S6 changes all that, using some of the most conspicuously expensive materials
seen in what is still ultimately an entirely mainstream phone. Its back and front are
Gorilla Glass 4, a toughened glass made by Corning, while the sides are aluminum
rather than plastic.

SAMSUNG CHANGING STRATEGY

This is the set to explore two strategies

models in the strategy analysis that is
found suitable for the introduction
stage of a Smartphone. These are
Smith's

differentiation

and

segmentation strategies and Porter's

Generic strategies. These two strategy
models seem to suit well the strategic
possibilities in the Smartphone market.
Porter's generic strategies are two by two matrices, which "juxtaposes low cost and
uniqueness with industry wide and narrow target segments" (Shaw, 2012, 43).
At this point of my studies, I arrive that Samsung is using the differentiation strategy
with its Smartphone products. This is differentiation, competitive advantage and
broad target scope combined together. Differentiation occurs in the product and price
part of the marketing mix of Samsung smartphones. Smartphones are differentiated
from its rivals in the product part of the marketing mix with its physical and nonphysical characteristics. The differentiation is seen both physical and non-physical.
The phones designs, the possibilities of customization and different colors offered can
be classified as physical. The innovative technology and features used in S6 can be
classified as non-physical. It can be argued that Samsung is also using segmentation
strategy by taking into account their earlier Smartphone products and current S6
devices, which are differentiated from each other in price and features.

EXTERNAL ENVIRONMENTAL ANALYSIS

Samsung is a global conglomerate that operates in the White Goods market or the
market for consumer appliances and gadgets. The company that is a South Korean
family owned business has global aspirations and as the recent expansion into newer
markets has shown, Samsung is not content with operating in some markets in the
world but instead, wants to cover as many countries as possible.
Political
In most of the markets where Samsung operates, the political environment is
conducive to its operations and though there are minor irritants in some of the foreign
markets like India, overall Samsung can be said to be operating in markets where the
political factors are benign. However, in recent months, it has faced significant
political headwinds in its home country of South Korea because of the countrys
tensions with North Korea wherein the company has had to take into account not only
the political instability but also the threat of war breaking out in the Korean Peninsula.
Apart from this, Samsung faces political pressures in many African and Latin
American countries where the political environment is unstable and prone to frequent
changes in the governing structures. Of course, this is not yet a major cause for worry
as the company has more or less factored the political instability into its strategic
calculations.
Economic
This dimension is especially critical for Samsung, as the opening up of many markets
in the developing world has meant that the company can expand its global footprint.
However, this dimension is also a worry since the ongoing global economic crisis has
severely dented the purchasing power of consumers in many developed markets
forcing Samsung to seek profitable ventures in the emerging markets. The key point
to note here is that the macroeconomic environment in which Samsung operates
globally is beset with uncertainty and volatility leading to the company having had to
reorient its strategies accordingly. The saving grace for the company is that it has
adjusted rather well to the tapering off of the consumer disposable incomes in the
developed world by expanding into the emerging and the developing markets. Indeed,

this is the reason Samsung has begun an aggressive push into the emerging markets in
the hope of making up for lost business from the developed world.
Socio-Cultural
Samsung is primarily a South Korean or a family owned multinational. This means
that despite its global footprint it still operates from the core as a Korean company.
Therefore, there are several aspects to its global operations some of which include
adapting itself to the local conditions. In other words, Samsung being a Global
company has had to act locally meaning that it has had to adopt a Global strategy in
many emerging markets. Apart from this, Samsung has had to tailor its products to the
fast changing consumer preferences in the various markets where it operates. The key
point to note here is that Samsung operates in a market niche that is strongly
influenced by the lifestyle preferences of consumers and given the fact that socio
cultural factors are different in each country; it has had to reorient itself in each
market accordingly.

Technological
Samsung can be considered as being among the worlds leading innovative
companies. This means that the company is at an advantage as far as harnessing the
power of technology and driving innovation for sustainable business advantage is
concerned. This has translated into an obsessive mission by the company to be ahead
of the technological and innovation curve and a vision to dominate its rivals and
competitors as far being the first to reach the market with its latest products is
concerned. however, as we shall discuss later, this has also resulted in the company
cutting corners with its imitation of the legendary Apples product design and this has
brought legal and regulatory scrutiny and troubles for the company. There is a lesson
here for other technology driven companies from Samsungs experiences and it is that
no matter how fast you are to reach the consumer in this age of Big Bang Disruption,
doing the basics right is still the key to success.

Legal
As mentioned in the last section, Samsung has had to face heavy penalties for its
alleged imitation of the Apples iPad and iPhone and this has led to the company
taking a beating as far as public perceptions and consumer approval of its strategies
are concerned. It remains to be seen as to how the company would wriggle out of the
legal maze that it finds itself in the developed markets because of the various lawsuits.

Environmental
With the rise of the ethical consumer who wants his or her brands to source and make
the products in a socially and environmentally responsible manner, Samsung has to be
aware of the need to make its products to satiate the ethical chic consumer. This
means that it has to ensure that it does not compromise on the working conditions or
the wages it pays to its labor who are engaged in making the final product.

10

INDUSTRY ANALYSIS SAMSUNG MOBILE PHONES

Bargaining Power of Suppliers
Samsung suppliers have low bargaining power, as Samsung owns most of the
suppliers. They use the backward integration strategy to improve cost efficiency and
profit margins, allowing them to sell phones at a lower price compared to their closest
rival, Apple. In the phone market, Samsung and Apple hold the biggest market share
for units sold of about 50 percent. This means that the suppliers have low power even
if Samsung did not own them, as they will most likely supply to either Apple or
Samsung. However, there is always demand for electronics in the market. This means
that power of suppliers in the industry is high, as suppliers will always be required to
make any electronic product.
Bargaining Power of Buyers
The purchasing power of buyers is very high. The reason for this is because of the
Internet, and the knowledge that consumers have because of this. They are able to
switch from one product to another, depending on the reputation of the company.
Buyers could also have an average amount of power because of two factors. One is
the fact that consumers usually choose between Samsung and Apple smartphones if
they can afford it, as they are the two biggest cellphone companies in the world. The
other would be that Apple might still be the market leader ahead of Samsung, but
Samsungs phones are lower priced and have equal features to Apples iPhone. On the
other hand, users who are already using Samsung might have low bargaining power as
there is a high switching cost if they plan to use another phone. Some examples are
phone plans, and becoming familiar with a new operating system.

11

Threat of New Entry

Threat of new entry is low because there are many players in the market already, and
many of them own their own supply chain, which reduces cost. They have already
established themselves in the market with loyal customers, and contracts with dealers.
There is also a large capital requirement to enter the market. Most of the capital will
be mainly spent on research and development (R&D), and marketing. In addition to
R&D and development, a considerable amount also needs to be invested into
manufacturing of the products, and brand positioning in the market. Finally there are
lots of existing barriers in the industry, such as patents and rights. We see this in the
recent lawsuit between Apple and Samsung, as Samsung starts to move into Apples
phone market.
Threat of Substitute Products
The threat of substitute within industry is low. This is because there are no real
substitutes for cellphones. Tablets and public phones could be used but they are very
inconvenient. However, a tech article shows that tablets may be replacing cellphones
in the future. Another possible substitute would be the iPod. With Internet connection,
iPods can also function like a cellphone using special applications.
Industry Rivalry
There is intense industry rivalry, especially between Samsung and Apple. Samsung
has been playing follow the market leader with Apple, as they did with Sony. The
advantage of this is that Samsung owns its distribution channel and suppliers,
allowing them to lower cost and maintain product quality in comparison to Apple.
Samsung also incurred huge advertising expenses to get its product into the market. A
recent article that details the relationship between the amounts of advertising and sales
showed that the more advertising Samsung did, the more units they sold.

12

INDUSTRY ATTRACTIVENESS
Using Porters analysis firms are likely to generate higher profits if the industry:
Is difficult to enter
There is limited rivalry
Buyers are relatively weak
Suppliers are relatively weak
There are few substitutes
Profits are likely to be low if:
The industry is easy to enter
There is a high degree of rivalry between firms within the industry
Buyers are strong
Suppliers are strong
It is easy to switch to alternatives
Effective industry analyses are products of careful study and interpretation of data and
information from multiple sources. In fact, research shows that in some industries,
international variables are more important than domestic ones as determinants of
strategic competitiveness. Furthermore, because of the development of global
markets, a countrys borders no longer restrict industry structures. In fact, movement
into international markets enhances the chances of success for new ventures as well as
more established firms. Following study of the five forces of competition, the firm
can develop the insights required to determine an industrys attractiveness in terms of
its potential to earn adequate or superior returns on its invested capital. In general, the
stronger competitive forces are, the lower the profit potential for an industrys firms.
An unattractive industry has low entry barriers, suppliers and buyers with strong
bargaining positions, strong competitive threats from product substitutes, and intense
rivalry among competitors. These industry characteristics make it very difficult for
firms to achieve strategic competitiveness and earn above-average returns.
Alternatively, an attractive industry has high entry barriers, suppliers and buyers with

13

little bargaining power, few competitive threats from product substitutes, and
relatively moderate rivalry.
COMPETITORS ANALYSIS
Competitor Apple is an American international organization offers technology,
program programs and parks. Its best-known component products are the Mac line PC
systems, the iPod media player, the iPhone smart phone, and the iPad product. Its
customer program includes the OS X and is operating-system (Business case studies,
2012), the iTunes media web browser, the Opera web browser, and the iLife and
iWork creativeness and efficiency packages. The financial ratio comparison of
Samsung and his wild competitor Apple are given in table II. The current ratio of
Samsung is 1.86%, thats greater than the Apple under the analysis. Because Samsung
is highly leveraged company and market leader their sales are high (Prezi, 2012). And
the quick asset ratio of Samsung is 1.43%, which less than the Apple ratios. Because
Samsung is highly leveraged company and Apple have cash reserves of more than
$140 billion. The net working capital ratio of Samsung is 37.65%, which is greater
than the Apple ratio under the previous five year analysis 2008-2012.
Because revenue of
Samsung

is

$180

billion due to rapid

yearly

increasing

revenues 10%-20% of
year

wise

2014).

(Prezi,
Average

collection period of
Samsung is 48 days
greater than the Apple
it

is

because

Samsung

the

consisting

totally leveraged company.

14

Stock revenues for Samsung are 7.83% closer to the industry regularly and that of the
apple company is better than any UN the section. The primary reason for high
inventory, revenues is that the demand of the apple company products always is more
than the supply so that is why the apple company has a very low inventory as in
comparison for Samsung (Wikipedia, 2014). The total fixed asset ratio of Samsung is
2.93%, which is less than as compared to Apple.
Because the
Apple

is

highly
Reserve
Company
while
Samsung
are

totally

based

on

leverage.
The

total

asset turnover ratio of Samsung is 1.11%, thats much greater than the Apple. Because
due to market leader revenues of Samsung are much more as compared to Apple so
thats why investing capital ratio of Samsung are rapidly increasing with the passage
of time. A debt ratio of Samsung is 0.32%, which is less than the Apples ratio. It is
because rapidly capturing the new markets with increasing revenues. Debt to equity
ratio of Samsung is 0.49%, thats greater than Apple (Businessweek, 2014). Because

15

Samsung based on totally

leverage. Gross profit margin
of

Samsung

which

is

is

less

37.02%,
than

the

Apples ratio. It is because

the supply of the Samsung
products is more than the
demand
compared

or

as

well

to Apple.

as
Net

profit margin of Apple by Apple is 43.87% greater than the Samsung which is
37.02%. Because Apple products command higher premiums as well as having low
supplies their products in the market according to the demand. Return on investment
of Samsung is 18.82%, which is much lower as compared to Apple which has 42.84%
(Prezi, 2014). Because Samsung operates in the mobile market as well as value
markets so the return on investment ratio is not so good because cost pressure in
volume markets. Return on Equity ratio of Samsung is 19.62%, which is also low due
to same reason.

INTERNAL ENVIRONMENT ANALYSIS

VALUE CHAIN ANALYSIS
PRIMARY ACTIVITIES

16

Inbound Logistics. The majority of Samsung suppliers are based in Asia and
accordingly, 79.4% of its supply-chain expenses occur in Asia. This is followed by
Americas (14.8%), Europe (4.4%) and other places. [1] In order control inbound
logistics aspect of the business more effectively, Samsung owns a number of logistics
firms as its subsidiaries.

The most notably, Samsung Electronics Logitec, established in 1998, is an integrated

enterprise logistics management agent that serves logistics needs of the company with
540 employees and 8,600 partner employees around the globe.
Operations. As of December 31, 2014, the company maintained 213 global
operations hubs that included subsidiaries, sales subsidiaries, design centers, and
research centers. Figure 2 below illustrates the full scope of Samsung global network
of operations.

1
2
3

Samsungmanufacturingoperationscomprisethefollowing:
Generalmanufacturing:semiconductorsandcomponents;
Systemmanufacturing:applicationsandsoftware;
Deviceassemblypackaging:batteriesandothercomponents,
labelassembly.
ThecompanyheavilyreliesonSixSigmamethodologyin
itsbusinessoperations.

Outboundlogistics.AlthoughApple,formerlyledbylate
SteveJobsisgenerallyacknowledgedasthepioneerin
Introducing modern smartphones, Samsung has proved to be exceptionally quick in
launching its own products to compete with Apple. Effective outbound logistics
system plays an important role for Samsung in terms of being able to deliver updates

17

of its popular products to customers in a timely manner. Samsung Electronics Logitec

mentioned above facilitates the major part of outbound logistics operations.
Moreover, Samsung Electronics Logitec conducts the comprehensive range of
logistics operations including negotiation of payment collections on behalf of
Samsung and dealing with insurance claims.
Marketing and Sales. As primary activities aim to channel the attention of the target
customer segment to the perceived competitive advantage of the brand associated
with high quality and advanced functions and capabilities of products. Samsungs
total marketing budget of USD 363 million in 2013 is considerably higher than the
marketing budget of the majority of its direct competitors. This budget is spent on
print and media advertising, events and experiences and public relations programs and
initiatives. Having spent about USD 4.6 billion on sales promotions during 2013
alone, Samsung has adapted sales promotion as one of the core elements of its
marketing technique.
Service. Samsung strives to deliver the customer services of the highest standards.
The company conducts customer satisfaction surveys managed by external parties in
a regular manner in order to achieve and sustain high levels of customer satisfaction.
There is a universal phone number for Samsung Direct Support and unlike the
majority of multinational enterprises, Samsung promises to get back to customers in
developed countries within 24 hours.
SUPPORT ACTIVITIES

Samsung is also supported by what is rated as the most professional infrastructure of

any company in Korea. In terms of financial support, investor relations, and the
handling of finance and investment funds are all those of a first rate organization. This
18

goes as far as creating venture funds to foster potential suppliers. Samsung has the
Samsung Venture Investment Corporation (SVIC) that has the main role to provide
financial resources to start-up companies in the areas of information technology,
communications, semiconductors, electronics and biotechnology.

TANGIBLE RESOURCES
FINANCIAL RESOURCES
A sound financial strategy is also a reason behind the never ending success of
Samsung. It is quite challenging for companies to manage and maintain their finances.
However, Samsung sets up an example. This has managed to look over the companys
financial issues and concerns. The financial strategy of Samsung covers a broad scope
but this was given prior attention and monitoring to ensure that the company remains
on the right financial track. Samsung have observed tremendous success and this was
achieved with the help of the best financial strategy the company had undertaken. It
was last year when Samsung was recognized as the leading consumer electronics
seller. The best financial strategy of Samsung is the very reason why the company
successfully hit billion dollar sale in the second quarter of 2013. Samsung had topped
its rival and most of its competitors are in awe. Many individuals who are into
electronics technology keep wondering how Samsung did it. The reason is that
Samsung takes a unique and strategic financial strategy to boost sales and uplift
company image. The success of this company does not just rely on the financial
strategy of Samsung but also with proper financial planning for continued stability
and growth. The financial strategy must be based on the mission set by the company
so it is essential to clearly define the reason behind the companys existence. Samsung
also believes that adaptation of the best financial strategy leads the company to a
direction where enormous profits are expected.
ORGANIZATIONAL RESOURCES
In 2012, Samsung Electronics launched an exhaustive program of organizational
reform that proactively addresses the changing global IT landscape. As a top priority
of the organizational reform, Samsung refined management structures in each
business area to optimize capabilities throughout the entire company. Samsungs new

19

organizational structure reflects the companys refocused emphasis on three key

business sectors: Consumer Electronics (CE), IT & Mobile Communications (IM),
and Device Solutions (DS). These reforms will help Samsung improve upon its
history of operational excellence, allowing for increased growth opportunities and
continued industry-leading innovation.
PHYSICAL RESOURCES
Other resources usually used by managers to achieve their objectives include;
physical resources such as equipment, computers, tools, land, vehicles and buildings.
In order to identify the type and quantity of resources required in Samsung, the
company analyses the business plans and carefully breakdown its objectives in the
resources required to achieve them. The company requires physical resources such as
computer, vehicle, and mobile phone. Samsung new strategy and vision include
finding new markets for their high-tech electronic goods. Samsung also strive to
secure a competitive advantage in businesses such as mobile hand set, memory chips,
and LCD panels.
TECHNOLOGICAL RESOURCES
Following Samsung's entry into the electronics sector. The focus was on the
development of mass production capability, and international linkages were used to
acquire product designs and marketing outlets, allowing Samsung to concentrate its
resources on the development of mass production capability. The majority of the
group's resources were channeled into the highly demanding production of advanced
semiconductors. While the effort was eventually successful, it appears to have
retarded the development of design and marketing capabilities for its mass-production
goods, leaving the group dependent on foreign sources of product design and
distribution. The decade also saw the company's initial foray into international
production to cope with trade pressure in its major markets, and explores how the
group's internal organization was poorly adapted to the needs of overseas operation
and to the task of organizational learning. Samsung has been pursuing a variety of
strategies, including internal organizational reform, rapid expansion of offshore
production, and aggressive acquisition of technology.

20

INTANGIBLE RESOURCES
HUMAN RESOURCES
Human resources include; personal and partner skills, team morale, workers
experience, workers loyalty, employees skills and competence, as well as team work
morals. Samsung plans to attain $400 billion in sales by 2020 thus the company may
need human resources of sales person with extensive sales experience, high work
ethnic and customer contact details. Samsung also Endeavour to follow a market
driven system by studying consumer preferences.
INNOVATION RESOURCES

REPUTATIONAL RESOURCES

21

REPUTATIONAL RESOURCES
Samsung Galaxy S6 of brand image of their product. Samsung believed can keep long
relations with their customer about the product. With the image of Samsung Galaxy
S6, Indonesian Customer always perceive Samsung Galaxy S6 as a good smartphone.

22

RESOURCES - CAPABILITIES

Tangible/
Resource

Capabilities

Intangible

Potential

Value

Difficulty

Compet

access to

contributed

in

itive

wide

to end

imitation/

advanta

variety of

product

substituti

ge in

on

short

markets

run
Takes a unique
and strategic
Finance

Tangible

financial strategy
to boost sales and

Moderate

High

Low

Yes

High

Moderate

Moderate

Yes

High

Low

Low

Yes

uplift company
image

Sales person with

Human
Resources

extensive sales
Intangible

experience, high
work ethnic and
customer contact
details
Promotional

Marketing

Intangible

ideas of the
Samsung S6
The development
of design and
marketing

23

Technological

Tangible

capabilities for its

High

High

High

Yes

Moderate

Moderate

Low

No

mass-production
goods, leaving the
group dependent
on foreign
sources of
product design
and distribution.
Facilitate
Information

Tangible

Systems

communications
with suppliers
and dealers

SAMSUNG GALAXY S6 CORE COMPETENCIES

Core competencies is decide whether or not the firm has a sustainable competitive
advantage. Why Samsung have core competencies its because 3 reasons:

Sustainable Competitive Advantage : The keyword here is sustainable. Any

company at any given point might have several competitors. The reason is that

it has a core competency which gives it a competitive advantage

Can be applied in wide variety of markets : a core competence is applicable
in wide variety of products and markets. Samsungs core competency is its
ability to get the most out of the android operating systems as well as the

quality of their smartphones.

Difficult for imitation : the advantage of core competency is a unique identity
of organizations.

24

SWOT ANALYSIS
SWOT ANALYSIS

25

BCG MATRIX

Cash Flows

26

RECOMMENDATIONS
Samsung should pursue the investment in technology and innovation. This strategy
will help the company to keep and increase its position and as one of the barrier
against the heated competition. However, they also need to find more diverse
employees from other industries such as interior designing, fashion, education, waste
management and luxury wine. Because these people will be able to provide out of the
box idea such as how people use the luxury life style, social responsibility, new trend
and the places that help Samsung improve its brands look.
Besides this strategy, it should use other strategy such as Corporate Social
Responsibility, environment and community sharing events and education and sport
sponsor. These activities will help to differentiate the company in a sense that we are
not only the leading electronic corporation but also the entity that values the power of
community living for now and future. We stay here for the sustainability of every
one. Another aggressive strategy I would recommend is to improve the Logo and
theme of the company. Since the logo had been last for many decades with minimal
change, it hardly changed some consumers perception. They may still think Samsung
is a budgeting brand and conventional technology. We need to change their view
toward the companys brands.
Marketing team should evaluate the performance of each product category if it is in
the way that the company want to be and if Samsung can take more market share.
This can be achieved by making marketing survey, brand evaluation and if possible
tracking the profit margin in response to the investment and marketing effort that
Samsung has put. Then, the team should decide if it should sell or keep specific kinds
of products so that it wont divert the brand position. Furthermore, by doing so, it will
help the company to grow further and know how to get more market shares.
Marketing campaign should be made customizable i.e. it suits to the customers
preference in its strategic region.

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Lastly, it should network more with other high tech sectors, industries and companies.
This strategy also helps Samsung to gain more awareness, companys strength and
standpoint, perception, and assessment to more technology, the technology that it
may not be able to invest in house. If the idea of some company really unseen and
highly potential, Samsung should grasp the opportunity by purchasing the idea and
buying that company. Lastly, Samsung should create tech-idea and business
competitions that can be joined by many talents around the world to explore more
aggressive and young ideas.

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References
http://www.gbgindonesia.com/en/manufacturing/article/2015/electronics_and_home_
appliances_manufacturing_in_indonesia_finding_its_edge_11128.php
http://www.samsung.com/us/aboutsamsung/sustainability/socialcontribution/
https://en.wikipedia.org/wiki/Samsung_Galaxy_S_series
http://www.trustedreviews.com/opinions/samsung-galaxy-s6-vs-s6edge
https://en.wikipedia.org/wiki/Samsung_Galaxy_S
http://www.androidauthority.com/samsung-galaxy-s-series-history-impact-169816/
http://www.trustedreviews.com/opinions/galaxy-s6-vs-galaxy-s5
Porters Generic Strategy (Shaw, 2012, 43).
http://managementstudyguide.com/pestle-analysis-of-samsung.htm
http://www.sfu.ca/~sheppard/478/syn/1131/Group_Y.pdf
Kuemmerle, W. (2001). Home base and knowledge management in international
ventures. Journal of Business Venturing, 17, 99122; Lorenzoni, G., & Lipparini, A.
(1999). The leveraging of interfirm relationships as a distinctive organizational
capability: A longitudinal study. Strategic Management Journal, 20, 317338.
Porter, M. E. (1980). Competitive strategy. New York: Free Press.
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(June

2014)

Samsung

ratios

analysis

reasons

Retrieved

from

www.prezi.com.samsunghtml "Samsung Profile 2013". Samsung.com. Retrieved

2013-08-25. "Samsung and its attractions Asias new model company". The
Economist. 1 October 2013. Retrieved 11 January 2013.
http://research-methodology.net/samsung-value-chain-analysis/

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http://albertacanada.com/korea/images/GlobalValueChainAnalysisSamsungElectronic
s.pdf

http://sales-management-slides.com/financial-strategy-of
samsung/#sthash.kxXymWGv.dpuf
http://www.samsung.com/common/aboutsamsung/download/compa
nyreports/2013_ Sustainability_Report.pdf
http://studymoose.com/resource-management-2-essay
http://www.brie.berkeley.edu/publications/WP106.pdf
http://news.samsung.com/global/samsung-ranked-1-in-corporatebrand-reputation
http://www.marketing91.com/3-reasons-core-competency-important/
http://myassignmenthelp.info/assignments/market-analysisstrategy-essay-on-samsung-south-korea/

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