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1.0 SAMSUNG HISTORY

Unlike other electronic companies Samsung origins were not involving electronics but other
products. In 1938 the Samsung's founder Byung- Chull Lee set up a trade export company in
Korea, selling fish, vegetables, and fruit to China. Within a decade Samsung had flour mills
and confectionary machines and became a co-operation in 1951.
From 1958 onwards Samsung began to expand into other industries such as financial, media,
chemicals and ship building throughout the 1970's. In 1969, Samsung Electronics was
established producing what Samsung is most famous for, Televisions, Mobile Phones
(throughout 90's), Radio's, Computer components and other electronics devices.
1987 founder and chairman, Byung-Chull Lee passed away and Kun-Hee Lee took over as
chairman. In the 1990's Samsung began to expand globally building factories in the US,
Britain, Germany, Thailand, Mexico, Spain and China until 1997.
In 1997 nearly all Korean businesses shrunk in size and Samsung was no exception. They
sold businesses to relieve debt and cut employees down lowering personnel by 50,000. But
thanks to the electronic industry they managed to curb this and continue to grow.
The history of Samsung and mobile phones stretches back to over 10 years. In 1993 Samsung
developed the 'lightest' mobile phone of its era. The SCH-800 and it was available on CDMA
networks.
Then they developed smart phones and a phone combined mp3 player towards the end of the
20th century. To this date Samsung are dedicated to the 3G industry. Making video, camera
phones at a speed to keep up with consumer demand. Samsung has made steady growth in the
mobile industry and are currently second but competitor Nokia is ahead with more than 100%
increase in shares.

2.0 INTRODUCTION OF SAMSUNG
Samsung is known globally for its electronic products and it is one of the successful brands in
the electronic industry. It is an established company almost all around the world.
Samsung Electronics is a South Korean multinational electronics and information technology
company headquartered in Samsung Town, Seoul.

It is the flagship subsidiary of the Samsung
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Group. With assembly plants and sales networks in 61 countries across the world, Samsung
has approximately 160,000 employees.
In 2009, the company took the position of the worlds biggest IT maker by surpassing the
previous leader Hewlett-Packard. Its sales revenue in the areas of LCD and LED displays and
memory chips is number one in the world.
In the TV segment, Samsungs market position is dominant. For the five years since 2006, the
company has been in the top spot in terms of the number of TVs sold, which is expected to
continue in 2010 and beyond. In the global LCD panel market, the company has kept the
leading position for eight years in a row.
With the Galaxy S model mobile phone, Samsungs Smartphone line-up has retained the
second-best slot in the world market for some time.

In competition to Apple's ipad tablet,
Samsung released the Android powered Samsung Galaxy Tablet.

3.0 THE MAKING OF A GLOBAL BRAND
In 1993, as a first step in its globalization drive, Samsung acquired a new corporate identity.
It changed its logo and that of the group. In the new logo, the words Samsung Electronics
were written in white color on blue color background to represent stability, reliability and
warmth. The words Samsung Electronics were written in English so that they would be easy
to read and remember worldwide. The logo was shaped elliptical representing a moving
world - symbolizing advancement and change.
3.1 ADVERTISING AND PROMOTIONAL STRATEGIES
In 1997, Samsung launched its first corporate advertising campaign - Nobel Prize Series. This
ad was aired in nine languages across Europe, the Middle East, South America and CIS
countries. The advertisement showed a man (representing a Nobel Prize Laureate) passing
from one scene to another. As the man passes through different scenes, Samsung products
transform into more advanced models. According to company sources, the idea was to
convey the message that Samsung uses Nobel Prize Laureates' ideas for making its products.
3.2 INNOVATION AND DESIGN STRATEGY -
In January 2008, Samsung Electronics won 32 innovation and design engineering awards at
the Consumer Electronics Show. This is a management strategy case that explores product
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design, innovation strategies and strategic planning in a changing competitive landscape.
While investment in R&D and product design has rewarded Samsung Electronics with its
dominant market position and premium brand perception, such dominance may not be
sustainable in the long run, especially now that competitors are achieving higher profitability
with lower investments in R&D per product. The case also discusses such issues as product
design philosophies, innovation strategies, localization of products, product design
outsourcing for consumer electronics products.
3.3 DESIGN STRATEGY
Design strategy is a discipline which helps firms determine what to make and do, why do it
and how to innovate contextually, both immediately and over the long term. This process
involves the interplay between design and business strategy, forming a systematic approach
integrating holistic-thinking, research methods used to inform business strategy and strategic
planning which provides a context for design. While not always required, design strategy
often uses social research methods to help ground the results and mitigate the risk of any
course of action. The approach has proved useful for companies in a variety of strategic
scenarios.

4.0 SAMSUNG'S PLAN TO STRENGTHEN ITS WEAKNESSES -
The global cell phone business has been in a funk lately, with handset sales off 11% this
yeara serious downshift from the double-digit expansion of recent times. Samsung
Electronics, though, has bucked the trend, boosting sales 7% in 2009 without denting its 10%
profit margins. That has helped the Korean giant increase its worldwide market share to 19%
and cement its position as the No. 2 player globally, behind Nokia, with 38%. Samsung's
reaction to the good news? "We have a long way to go," says J.K. Shin, the company's new
handset business chief.
Sure, there's a big dose of traditional Korean modesty in Shin's fretting. But while Samsung is
the top brand in the U.S., Shin is worried that the company remains a laggard in two key
segments: high-end smart phones and ultra cheap models for developing countries. In smart
phones, Samsung has just 3.5% of a world market that's likely to grow 31% this year,
according to researcher Strategy Analytics. At the low end, Samsung still trails Nokia badly.

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4.1 ENERGY MANAGEMENT STRATEGY
Samsung Electronics has adopted various measures such as high-efficiency facilities, energy
management systems and training programs for employees to reduce energy consumption
across all operations. We also plan to introduce an energy certification program for new
facilities and buildings from 2010.
The company established a working group for energy management which meets every two
months to share best practices for energy saving and management throughout all business
divisions. These activities encourage facilities to set up highly energy efficient equipment and
technologies; low-power vacuum pump technology, energy efficient water humidification
systems, and energy efficient process optimization, etc.
We are also committed to enhancing employees' awareness through diverse training,
promotions and incentive programs to facilitate energy saving activities at workplaces.
4.2 COMPLIANCE MANAGEMENT STRATEGY
Samsung Electronics has established a new compliance system to prevent and minimize
business risks associated with issues such as collusion and violation of intellectual property
rights. We have instituted a compliance program that includes preemptive and year-round
training, control and supervision in order to ensure adherence to pertinent laws by the
company and all employees and mitigate risks related to violation of laws and regulations.
Our compliance activities are broadly classified into prevention, monitoring and follow-up
processes. Prevention activities include employee education, distribution of manuals on
compliance, system-based self-inspections, and operation of a help desk to respond to
questions on compliance matters. We also keep up to date with the introduction and revision
of various laws and regulations. There is a separate team dedicated to monitoring activities.
After dealing with a compliance issue, we analyze the related process and outcome to find the
fundamental cause and pursue improvement measures. Real life examples are used in training
programs as a way of preventing recurrence of any compliance problems that arise.
4.3 CLIMATE STRATEGY
Samsung Electronics has been establishing corporate-level strategies to address its direct and
indirect impact on climate change. Through this, Samsung strives to reduce direct and
indirect emissions of greenhouse gases and prevent potential risks by carrying out initiatives
in voluntary GHG reduction and the development of an inventory.
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CONCLUSION: ULTIMATE MARKETING BRANDING - BLUE OCEAN
STRATEGY (BOS) SAMSUNG ELECTRONICS 2006-2010
Value Innovation, first component of Blue Ocean Strategy is Samsungs primary tool for
product development. Value Innovation Program centre was started in 1998 and by 2004 the
centre was playing a very key role in rapid growth of Samsung to become the worlds top
consumer electronics company. Many cross-functional Blue Ocean project teams were at
work, and had ingrained the approach in the corporate culture with an annual conference
presided over by their entire top management. One of the key successes of VIP centre was,
within five years of entering the mobile phone market, in 2003 Samsung has become the No2
player in the mobile phones market.
Samsung BOS strategy has also helped it to maintain top position in TV market (since 2006-
2010), Global; LCD panel market since 2002. BOS is still at the core of the Samsung product
strategy and company has been able to make the necessary adaptations according to the
business environment and changing consumer preferences. In 2006 Samsung launched
Market Driven Change (MDC) where its focus was on the consumer insights and how to
develop better and new products using consumer insights. One of the successful results of the
MDC was Flat panel LCD TV Bordeaux. This TV has played a crucial role in Samsung
overtaking Sony in the LCD market. In 2007 Samsung keeping focus of teenager customers
has launched a store in the Second Life Site. The virtual space will be used to showcase range
of mobile handsets to teenagers the future consumer group, in a competition-less way.
2008 has been a tough year for Samsung as the Chairman of the group was indicted and
forced to resign on tax evasion charges. Samsung also failed to acquire SanDisk, the flash
memory giant. Fall in sales of microchips and TVs has hit the company badly due to
recession. Early 2009 Samsung merged its LCD (liquid crystal display) and semiconductor
business into one business unit called Device Solution Business. It is also merged its digital
media and its telecommunications business into one business unit, called Digital Media &
Communications Business. Samsung launched green management initiative that is intended
to make Samsung a leading eco-friendly company by 2013. The 'Eco-Management 2013' plan
seeks to reduce greenhouse gas emissions from manufacturing facilities by 50 percent, and to
reduce indirect greenhouse gas emissions from all products by 84 million tons over five
years.
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2009 also saw Samsung enter into Mobile OS market with launch of its own open mobile
operating system, called "bada," which can be used to develop applications for Samsung
phones. Samsung launched mobile phones Wave based on Bada platform along with its first
smart phone on Googles Android platform Samsung Galaxy. The company plans to bring
down smart phone prices significantly. Samsung launched 3D LED TVs and at a premium
pricing and changing the home entertainment experience from 2-D to 3D.
2010 saw Samsung launching a a new tablet PC named Galaxy Tab as the latest device meant
to rival Apple Inc.'s popular iPad. Samsung is still innovating in a big way and it still relies
on a basic assessment: products competitiveness is everything, and it must be kept away
from price wars.
THE HISTORY OF SAMSUNG MOBILE PHONES
Although its line of sparkling smart phones seems fresh and new, Samsung Mobile has been
around since 1983. Samsung Mobile's parent company, Samsung Electronics, was founded in
1969. Once known for its televisions and other home appliances, Samsung recently eclipsed
heavyweights Sony Ericsson and Motorola as one of the biggest cell phone manufacturers in
the world.
ROUGH BEGINNING
Samsung Mobile's first ever offering was a car phone it introduced in 1986. Because of poor
reception and sales, manufacturing was halted. From this point until the early 1990s,
Samsung Mobile would introduce mobile phone models, but sales were low because demand
was low. The designs of these early attempts were bulky, and reception was poor. With
Motorola holding a sizable advantage over the rest of a fledgling mobile phone field,
Samsung nearly dropped its Mobile division.
TURNING POINT
In 1993, Samsung Mobile released the SH-700 series, which boasted a smaller and sleeker
design and better sound quality. With a better product and a more aggressive marketing
campaign, Samsung would reclaim more than half the mobile phone market share in Korea
from Motorola.


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THE GLOBAL MARKET
Samsung cell phones found its way into American hands for the first time in 1996, when they
partnered with Sprint on a line of sleek and compact phones. A few short years later, South
America and Japan were enjoying the high-end design of Samsung Mobile phones.
SAMSUNG MOBILE NEW INVENTION
In early 2009, Samsung Mobile's global market share stood at more than 17 percent, second
only to Nokia. In the 3rd quarter of 2008, for the first time in its history, Samsung Mobile
shipped more than 50 million handsets in a quarter--despite a global recession.
SAMSUNG FACTS
1- Lee Byung-chull founded Samsung Group in 1938, naming the start-up company a
Korean word which translates to "three stars" in English.
2- Samsung Mobile enjoys agreements with major cell phone service providers such as
T-Mobile, AT&T, Sprint and Verizon Wireless.
3- In early 2009, Samsung Mobile and T-Mobile introduced the Memoir, a cell phone
with a "Best in Class" 8-Megapixel camera.











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REFERENCES
Chang, S. and Podolny, J., (2001). Samsung Electronics Semiconductor Division (A),
Stanford Graduate School of Business Case.
Hyun, S., Han, M., and Yeh, J., (2004) Anycall: Building a Powerful Brand, Korea
Marketing Journal Vol. 5(4).
Joo, T., (2003). Samsung Electronics Co., LTD.: Digital Convergence in the U.S. Mobile
Phone Market, Darden Graduate School of Business Case.
Kim, JW. et al., (2003). Digital Revolution and Advances of Korean Companies, SERI
CEO Information.