RAMON MAGSAYSAY MEMORIAL COLLEGES

SAMSUNG

Presented by:

Ngilay, Riza Mae T.

Reyes, Cathlene Joyce

Lacio, Precious Jane M.

Avila, Chen-Chen E.

Dela Cruz, Kenth Joshua

Mangco, Hanida

Sheena Mae B. Tama, LCB

College Instructor
 BACKGROUND OF THE STUDY

The South Korean company Samsung specializes in the production of a wide variety of

consumer and industry electronics, including appliances, digital media devices,

semiconductors, memory chips, and integrated systems. It started out as trading

company exporting various products from South Korea to Beijing, China. Founded by

Lee Byung-chul in 1938, Samsung gradually developed into the multinational

corporation that it is today.

The word Samsung means "three stars" in Korean. It became the name associated with

different types of business establishments in South Korea and in various parts of the

world. Internationally, people associate the name with electronics, information

technology and development.

After the Korean War, the business expanded into textiles and opened the largest

woolen mill in Korea. Lee focused heavily on industrialization with the goal of helping his

country redevelop itself after the war. During that period the business benefited from the

new protectionist policies adopted by the Korean government, whose aim was to help

large domestic conglomerates (chaebol) by shielding them from competition and

providing them easy financing. In the late 1950s the company acquired three of Korea’s

largest commercial banks as well as an insurance company and firms that made
cement and fertilizer. Samsung in the 1960s acquired more insurance companies as

well as an oil refinery, a nylon company, and a department store.

During the 1970s the company expanded its textile-manufacturing processes to cover

the full line of production—from raw materials all the way to the end product—to better

compete in the textile industry. New subsidiaries such as Samsung Heavy Industries,

Samsung Shipbuilding, and Samsung Precision Company (Samsung Techwin) were

established. Also, during the same period, the company started to invest in the heavy,

chemical, and petrochemical industries, providing the company a promising growth

path.

In 1969, Samsung Electronics was born. From there, the company started acquiring and

creating different business establishments including a hospital, paper manufacturing

plant, life insurance Company, department stores and many others. The company was

destined to become a household name starting in its mother country and spanning its

reach to many other cities internationally. Samsung Electronics started catering to the

international market in the seventies kicking off with the corporation's acquisition of half

of Korea Semiconductor which made it the leading electronics manufacturer in the

country.

The success of Samsung as a technology provider continues to grow through the

eighties as Samsung Electronics was merged with Samsung Semiconductors and

market with high-tech products that will become a staple in every home. This

development continued on through the next decade as Samsung kept on going beyond

its boundaries and restructuring its business plan to accommodate the global scene.

Adopting a new form of management proved to be a wise move for the company as its

products made their way on the list of top must-haves in their various fields. TV-LCD's,

picture tubes, Samsung printers and other high-tech products became popular

acquisitions due to their high quality. When Samsung ventured into the LCD industry in

1993, it became the world's best.

The company's excellent method of quality control is what makes it successful in

providing only the best products to the whole world. It applies a "Line Stop" system

wherein anybody can stop the process of production in the event that substandard

products are discovered.

To date, Samsung continues to maintain its status as the "world's best" technology

provider. Its highly qualified workforce is still striving for excellence in their respective

fields making the whole company a huge success in the making. The secret to the

company's continuous success is in the constant improvement of its management

structure and the application of its philosophies: "We will devote our human resources

and technology to create superior products and services, thereby contributing to a better

global society."
 ISSUES/ PROBLEMS

1. Main competitors are also largest buyers: the competitors like Apple, Sony,

Dell,HP are the main buyers of Samsung Electronics products as well as the firm’s main

competitors, such situation would be favorable to Samsung, like the competitors could

not find complementary products and would form a relatively low share Samsung’s

revenues, Because of it could use its bargaining power over competitors. Due to

reverse conditions like competitors can find complements and they form a relatively high

share of firm’s revenues, the Samsung cannot use its bargaining power over

competitors as it can easily lose its customer and sales.

2. .Lack its own OS and software: Software and OS production has a high profit

margin, can increase integration of company’s products and brand loyalty. Samsung is

a hardware leader but has too much of dependence for software from other parties,

Without strong software and OS Samsung is at disadvantage over its competitors.

3. Too low profit margin: Samsung Electronics is the largest technology company in

the world in terms of revenues but it has low gross profit and net profit margins.

Although its smartphones business is quite profitable, Samsung’s profit margin is low

due to its semiconductors sales and aggressive price cut.

The Samsung Company is required to amplify its brand image, identity, product

portfolio, its architecture, brand vision, and brand positioning. Further, it should invest

more capital in technology, design capabilities, and brand marketing just to remain in

the competitive market and to maintain lead over its competitors. As we know,

reputation is very precious for every brand, so, Samsung should ensure the quality of its

manufactured products before launching them in the consumer's market.

As some past incidents like recalling Note 7. unlocking problems with Galaxy S9 and

S10 caused a bad impact on Samsung's goodwill in the world market. Therefore,

Samsung needs to understand that testing a device is also as much important as the

functionality of a device and they should spend more money on the testing facility as

they spend on research and development. It will not only save their money as well as

save them from global embarrassment due to their negligence which demolishes their

brand value.

They should focus more on Quality rather than quantity. Additionally. Samsung also

required to build brand equity in other product categories such as laptops, tablets, and

accessories. Moreover, it should work more on creating its personality and making an

emotional connection with people.

creating emotional connections to one company that distinguishes it from the others, it

is all about creating brand faithfulness overtimes. Apple and BMW are well-known

examples of this.

For engaging more customers, Samsung should make proper use of social media like

Facebook, YouTube, Instagram, Twitter, and Etcetera for the promotion of their

products. Besides this, it should employ or take help from Public Relations

Professionals in building their brand image and position in the market. Samsung should

also pay attention to making its software for its products. As Samsung is only a

hardware company, it has to depend upon other companies like Google and Microsoft

for the operating system for their goods. Apple owns its operating system for all its

products.
 CONCLUTION

With the ever growing threats in the technology industry, companies must learn to

predict and adapt to their consumers and their environments in order to remain a

competitive force in this market. As a team, we have learned that in order for Samsung

to grow and succeed, they must focus on the users of their technology and cater to their

constantly evolving wants and needs. In order to be successful, companies will need to

engage in strategic business planning and be proactive in adapting to the consumer.

One way this can be achieved is by developing a unique brand community.

Competitive companies will engage in research and development to innovate and

create the latest cutting-edge operating systems, application stores, and their own

unique software.

They must take their current innovations, and simplify them, to develop products that

have similar features and benefits, at a fraction of the price to consumers. Research

and development along with innovation are clearly necessary to companies that have

the desire to continue being a staple in the technology industry.

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