SAMSUNG STRATEGIC PLANNING

Prototype
ABOUT US
PAST - where we
have been Samsung's history dates to 1938 when "Samsung
General Stores" opened in North Kyung-sang Province,
Korea. The company conducted its trade business until
the 1950s when it became a producer of basic
commodities such as sugar and wool. In 1958,
Samsung be-came involved in the insurance industry
by incorporating a local fire & marine insurance
company.
During the 1960s, Samsung became one of the first
Korean companies to actively expand its overseas
trade. The group consolidated its manufacturing base
by adding paper and fertilizer businesses. Samsung
continuedwith expansion into the life insurance
business, strengthened its retail operations and then
moved into the communications sector, successfully
establishing a newspaper and a broadcasting company.

The 1970s were a crucial period in shaping present-day

Samsung. Its strengths in the semiconductor,
information and telecommunications industries grew
from the significant investments made during this
period. Samsung also took a meaningful step toward
heavy industries by venturing into aircraft
manufacturing, shipbuilding and construction, as well
as chemical industries.
In the 1980s, Samsung expanded its efforts into
exploring the larger markets overseas. The group
began contributing to foreign economies by building
facilities in the US, the UK and Portugal. Samsung also
invested considerable resources into fostering Koreas
rich heritage by supporting a wide range of cultural
and artistic activities.
The final decade of the 20th century saw the
evolution of Samsung's new approach to
management. Chairman Kun-Hee Lee's insightful
vision and the introduction of the "New Management"
in 1993 acknowledged the need to transform
management philosophy in or-der to keep up with a
rapidly changing global economy. More recently in
 2000, a "Digital Management" approach was adopted
to ensure that Samsung maintains a leading position as
the Information Age continues to transform global
business and culture.
Since Kun-Hee Lee's appointment as Chairman in
1987, the group's total sales increased by 7.2 times to
US$98.7 billion and net income by 25 times to US$4.5
billion in 2001. Total assets of the group grew 12.6
times to US$124.3 billion.
Today, Samsung has evolved into a group of companies
unmatched by others in its range of industries and
performance. It is now coherently restructured and
TODAY - where we streamlined, welltrained, globally-focused and
are now responsive to the needs of each market, and more
committed than ever to true innovation. The group's
three core business sectors are electronics, finance,
and trade and services.
As stated in its new motto, Samsung Electronics' vision
for the new decade is, "Inspire the World, Create the
VISION - where we Future."
should go and why This new vision reflects Samsung Electronics
MISSION - who we commitment to inspiring its communities by leveraging
are, how we work Samsung's three key strengths: New Technology,
toward our vision, Innovative Products, and Creative Solutions. -- and
what makes us to promoting new value for Samsung's core networks --
unique Industry, Partners, and Employees. Through these
efforts, Samsung hopes to contribute to a better world
and a richer experience for all.
 Companys Values -
We believe that living by strong values is the key to
good business. At Samsung, a rigorous code of conduct
and these core values are at the heart of every
decision we make.
People
Quite simply, a company is its people. At Samsung,
were dedicated to giving our people a wealth of
CORE VALUES - opportunities to reach their full potential.
guiding principles Excellence
of our work and Everything we do at Samsung is driven by an
how we operate unyielding passion for excellenceand an unfaltering
commitment to develop the best products and services
on the market.
Change
In todays fast-paced global economy, change is
constant and innovation is critical to a companys
survival. As we have done for 70 years, we set our
sights on the future, anticipating market needs and
demands so we can steer our company toward long-
term success.

STRATEGY
Advertising and Sales Promotion -

Distribution -
Pricing
RESOURCE Product Innovation -
ASSESSMENT - Advertising and Promotional Strategies
infrastructure Samsung Electronics: Innovation and Design
required to realize Strategy
vision Design strategy
Samsung's Plan to Strengthen Its Weaknesses -
Energy Management Strategy
Climate Strategy
Samsung's strategy pressures competitors -
STRENGTHS
Samsung is the worlds most successful electronics
manufacturer. It is the worlds largest manufacturer of
television sets, liquid crystal display (LCD) panels, mobile
phones and smartphones.

Samsung is the worlds number one marketer of mobile phones

with 21.4% of the worlds largest market share in the second
quarter of 2015. Apple is number two with 13.9%[2]

Samsung has impressive research and design capabilities. It

was able to create and roll out Samsung Pay, a payment app
with similar capabilities to Apple Pay, in less than a year.
Samsung has been able to replicate many of the capabilities of
both Apple Inc.s phones and Google Inc.s Android operating
system for mobile devices.

Samsung has strong manufacturing and marketing capabilities.

Samsung has long-standing relationships with retailers in the

United States and Europe that provide a steady sales channel
for its products.

WEAKNESSES
Samsung has not been able to match Apple
Inc.s marketing capabilities for smartphones. Its share of the
U.S. smartphone market fell by 2.3% between 2014 and 2015. In
contrast, Apples share price grew by 34.9%.

Some Chinese competitors are catching up to Samsung in the

smartphone market. Between 2014 and 2015 Huaweis share
grew by 48.1%, and Xiaomis share grew by 29.4%.
 Samsung is heavily dependent upon consumer electronics sales
in markets with limited potential for growth, such as the United
States and Europe, for much of its revenue.

Samsungs devices use the Google Android open source

operating system. Many consumers seem to view Android as an
inferior product to Apples iOS. The public has not been as
accepting of Android as the tech community has.

Some consumers view Apple products as more advanced and

dependable than Samsung products.

Samsungs marketing efforts are not as sophisticated as Apples.

OPPORTUNITIES
Growing market for smartphones, tablets and other mobile
devices, especially in developing regions such as Africa
and India, where consumers are unfamiliar with PCs. Sales of
tablets finally overtook sales of traditional personal computers
in 2015.[3]

Increased demand for tablet and smartphone-based solutions

such as Samsung Pay

New technologies such as wearable tech

Growing middle class in developing world will increase market

for consumer electronics.

Growing online market from sales channels such

as Amazon.com

THREATS:
 Apple has emerged as the dominant smartphone and tablet
brand in some markets, such as the United States. Samsung
has not been able to overcome Apples reputation for reliability.

Apples reputation for quality, reliability and sophistication

seems to be growing.

The Google Android operating system, which Galaxy devices

depend upon, is not as popular with average people as iOS is.

Declining or stagnating middle-class incomes in North America

and the United States could reduce consumer buying power in
those key markets for Samsung.

Chinese manufacturers such as Huawei and Xiaomi could

emerge as serious rivals to Samsung. These companies share
of the critical mobile device market is growing while Samsungs
is falling.

Apple could enter more consumer products areas such as

home appliances and cameras and directly compete with
Samsung in those markets.