Group Project

MGT 212
SECTION: 06

Company Worked With- Samsung Bangladesh Branch (Mobile),

RAHNUMA SANJANA (RSJ)

Submitted By-

Name ID
Etisha Habib 1912117630
Anika Rahaman Mim 1911933630
Fariha 1911335630
Redwan Ahmed Asif 1911526630
Abdulla Al Mamun Riyad 1420660030
Sadika Tanzim 1831799630

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Table of Contents

Executive Summary.............................................................................................. 3

Introduction ........................................................................................................... 4-5

SWOT Analysis of the Organization...................................................................... 5-7

BCG Matrix............................................................................................................. 7-8

Porter’s Five Competitive Force Model................................................................... 9-12

Which strategy we will choose to utilize on Samsung .............................. 12-14

Which country we will choose to locate the company .............................................. 14-16

Bibliography............................................................................................................... 17

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Executive Summary

This report focuses to provide information about Samsung Bangladesh (smart

phone) sector .It is the number one company of the leading business

smartphone company in Bangladesh. This group came up with lots of vision and

goal and of the main goal of this company is to give superior product with

environmental security in 2009. This company is directly connected to the

communication process of Bangladesh through its work. This report focuses on

product portfolio where we found that there are lots of product which helps

people to live a little smarter. The company has vast good quality product and

price ranges. We have done the SWOT analysis where we showed strength,

weakness, opportunity, and threats of this company. We have also done The

BCG matrix which clearly shows the overall image of its current product line

and indicates what products are the weakest and tells the company where they

should invest. Samsung always tried to maintain its image and quality in

Bangladesh science 2009. The Porter five force shows a raw picture of this

industry . Based on that, in terms of strategies, there are two types of strategies

that we are considering which strategies should the company follow and this is

competitive strategies. The freedom of place the company anywhere, we have

placed in New Zealand with very precise reasoning.

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Introduction:

Samsung Electronics Co, Ltd. is a South Korean multinational electronics

company headquartered in Suwon, South Korea. Samsung was founded by Lee

Byung-chul in 1938 as a trading company. Over the next three decades, the

group diversified into areas including food processing, textiles, insurance,

securities, and retail. Samsung entered the electronics industry in the late 1960s.

Samsung entered Bangladesh in 2009. It runs a research and development

institute here that works on developing apps, business-to-business solutions and

localization..Nowadays Samsung become one of the leading mobile phone

companies in the world which believes in its value proposition towards its

consumers. Samsung mobile phone is a part of Samsung electronics which is

one of the key segments of Samsung group. Being from a strong background,

Samsung mobile phone industry added a new dimension in each and every

mobile phone markets in the world and in Bangladesh. As Bangladesh is a

developing country, the need for these modern communication means is always

there. Though our country is poor and developing still because of some foreign

investors and Bangladeshi entrepreneurs this new era of information

technology also has become available in Bangladesh. Samsung is one of the

leading mobile phone companies in the world which believes in its value

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proposition towards its consumers. Being from a strong background, Samsung

mobile phone industry added a new dimension in each and every mobile phone

markets in the world and Bangladesh is also one of them.

The Mission Statement of Samsung: “We will devote our human resources

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

a better global society.”

The Vision Statement of Samsung : “ To inspire the world with our

innovative technologies, products, and design that enrich people's lives and

contribute to social prosperity by creating a new future”.

SWOT Analysis of Samsung Bangladesh :

SWOT analysis of Samsung will elaborate the strength & weakness of,

opportunities & threats for Samsung Company in Bangladesh .This SWOT

analysis of Samsung can be used to evaluate the position of their business in

Bangladesh. .It also can be used to go deep into a specific segment like

production, marketing, and sales.Four part of SWOT is Strength, Weakness,

Opportunities and Threats.

Strengths:

1)Huge market share .Because of the massive population of Bangladesh.

Environment friendly product.

2)Brand image ,strong brand reputation and the ability to handle infringement.

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3) Innovative designs, open source operating system, and software.

4) Low production Cost- as they are their own supplier and distributor.

5) Too large product diversity .Customer has several choice of price range and

model.

6) Very strong R&D department and strong intelligence in marketing

capabilities. Skilled employees.

Weakness:

1) To large product diversity so customer gets confused and it often causes

brand cannibalization.

2) Damaging image by infringement.

3) Lacking of own operating system and large dependence on other software.

Opportunities:

1) The growing youth generation in Bangladesh.

2)Diversity in price range, reputation of product quality.

3)Obtaining patent through acquisition .

4)Growing mobile advertisement market.

5) Reliability of customers.

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Threats:

1)Growing rivalry among other competitors .

2) New companies are coming in Bangladesh with lower price range and better

camera quality.

3)Rapid technological change.

SWOT analysis of Samsung Bangladesh (mobile phone) showed that

Samsung has many strength against its few weakness. Also, they have great

opportunities as well as market threats. If Samsung mobile does take steps to be

stronger in the market by providing quality, it will remain number one company

in future as like now.

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BCG Matrix:

Star: A10s is the hottest selling product right now. For this, A10s is the Star

product of Samsung Bangladesh. It launched in September 2019. They kept this

product’s price “Budget Friendly” with brilliant features; and it makes them
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stand out from their competitors. Its Anticipated Growth Rate and Market Share

are high.

Question Mark: Samsung launched S20+ and S20 ultra in February 2020.

These are the newest product of this company. Samsung Bangladesh is taking

pre-order for these. But these models are very expensive. As a result, its

Anticipated Growth Rate is high but the Market Share is low. For these, they are

the Question Mark.

Cash Cow: The most mature product of Samsung Bangladesh is Galaxy J7. It

launched in July 2015. Many people of BD bought this model because it

provided high quality features at a moderate price at that time. In the middle of

2016 its price started to fall. But till now many people are still using this model.

Right now, it has low Anticipated Growth Rate and high Market Share. As it

collected the most revenue, it is the Cash Cow.

Dog: The weakest product of Samsung Bangladesh is Galaxy A2 Core. It

launched in April 2019. They tried to produce a model with a low price. But the

customers didn’t liked it. Because its features quality were low too. At this

moment, its Anticipated Growth Rate and Market Share are low. So, they are

trying to liquidate it.

Porter’s Five Force Analysis :

1) Threats of New Entrants:

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Threats of new entrants in the context of Bangladesh market in the smartphone

industry is very low. There are some basic reasons why the threats are low.

Listed as:

1) The need of capital to start a smart phone company is very huge . For the

involvement of digital knows and hows, strong R&D team and higher

manufacturing cost.

2) Existing high- end brands who are very difficult to compete with in the

industry .

3) As the industry is already matured, many company and brand has efficient

and effective models and technology under their copyright. So it gets very

difficult to sustain in this industry for the new entrants.

4) Customer play a big role here. The loyal customers of different brand is a

big threat. To add on the evolving needs and demands of customer is very

difficult to cope up for the new entrants. Overall it is tough to enter in the

mobile phone industry in Bangladesh.

2)Threat of Substitutes :

For Samsung in Bangladesh the threat of their smartphones are moderate.

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1)Smart tv, Laptop, Desktops kind of fills the need of mobile. So people are

using this as a way to accessing apps and getting the facilities of smartphone.

2)As mobile does multifunction like communication ,entertainment and also

accessing over certain opportunities it is one of the most needed in daily life.

3)Supplier Bargain Power:

For Samsung( Bangladesh) in the smartphone sector there are no room for

supplier to bargain .As the whole production system is managed by only

Samsung itself. Mainly Samsung has its own manufacturing plant in

Bangladesh with a view to provide their service at cheaper price. The hardware

manufacturing and software developing is controlled by the company. So the

company itself is its supplier and distributor. As result they do not have to take

to supplier tantrums.

4)Buyer Bargain Power:

The bargain power of Buyer for the Samsung phones can be both as moderate

and No power.The company itself use this patterns.

As Bangladesh is a developing country with huge population, the needs and

demand of the customers are very clumsy. So whenever Samsung wants to

bring a new product in Bangladesh market they always analysis the customer’s

desired the price range and tries to give their best product at that range.

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According to this perspective the bargain or the price range decides the

customers. So it can be told the bargain power of buyer is moderate .

On the other hand if we only look at the system of the company the price is

fixed and the customer can not bargain. According to this the buyer has no

power to bargain.

5) Intensity of Existing Rivalry among Current Competitors:

The rivalry among smart phone company are quite intensive for obvious

reason.For a developing country like Bangladesh ,where most people are lower

to middle class and they mostly want to buy things at lower price. To add on for

the premium sector the there is also strong competitor.

For Samsung smartphone in Bangladesh top rivals are Vivo and Xiaomi (also

known as Mi).

Vivo: Vivo is the smartphone of youth .It targets the youth market with its

affordable price and it’s brilliant AI selfie camera and latest technology.

Xiaomi: It is becoming young generation’s favorite with the good service and

camera quality within an affordable range in Bangladesh.

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For Premium market:

Apple is the rival for this market. With a huge fan base and loyal customer it is

a big threat for Samsung .Also HTC ,Asus and One plus series are becoming

popular.

Though intensive rivalry among competitors ,In Bangladesh Samsung tends to

hold it’s position at number one. It always gives the customer the long lasting

service within their affordability.

Corporate Strategy:

A corporate strategy defines the corporate overall goals and directions and the

way in which will be achieved within strategic management activities. It is a

long-term, clearly defined vision of the direction of a company or organization.

This strategy is used when an organization wants to expand the business.

Growth, Stability, Renewal are the three parts of the corporate strategy. In the

growth strategy there are four different strategies: Concentration, Vertical

integration, Horizontal integration, Diversification.

Competitive Strategies:

Competitive strategy is an organizational strategy for how an organization will

compete in its business. There are four generic strategies that are used to help

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organizations establish a competitive advantage over industry rivals. The

strategies are Cost leadership, Differentiation, Focus and Fast Mover. Among

all the competitive strategy, cost leadership strategy and differentiation strategy

will be effective strategy for Samsung Bangladesh (mobile) to compete with

other companies in Bangladesh.

The reasons behind choosing competitive strategy:

Corporate strategy is all about growing the business a company currently have.

As concern of Samsung Bangladesh (mobile) they have many variety and

options.They do not need any more concentration .Along side Samsung in

Bangladesh is quite stable and as they are the top mobile company in

Bangladesh right now they absolutely do not need any renewal policy.

On the other hand for Competitive strategy we are considering cost

leadership and differentiation.

Cost Leadership:

In this strategy company tries to minimize the cost and do the maximum profit.

As in Bangladesh people want lower priced product it is the best way to be in

top This strategy will work well if product/service is standardized. Continuous

efforts to lower costs relative to competitors is necessary in order to

successfully be a cost leader. But the company will keep in mind that rapid

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lowering price can also backfire to the company. Samsung Electronics often

offers lowest price than other companies for exact same products.

Differentiation :

In this strategy, Samsung Bangladesh will provide premium product from the

similar competitor. Value to customers through unique features and

characteristics of their products. This will be applied for certain products. This

will be done through high quality, features, high customer service, rapid product

innovation, advanced technological features, image management, etc. Also, the

company will offer premium product/service along with the other products. For

example: Samsung has officially launched an enhanced warranty program in the

US for the Galaxy S8 and S8 Plus. It is called Samsung Premium Care, it has

your back in case of any accidental damage done to your device -drops, spills,

cracked screen and in a case of a mechanical or electrical breakdown due to

normal use. If your Galaxy S8 or S8 Plus gets damaged, Samsung will provide

you with a new or reconditioned device. Samsung Bangladesh can also use this

premium care to attract the Bangladeshi customers.

Therefore, we will select cost leadership strategy and differentiation strategy

from competitive strategy over corporate strategy because corporate strategy

only decides overall goals and direction of Samsung Electronics. But Samsung

Bangladesh needs competitive strategy to compete with other companies in

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Bangladesh. So, implementation of cost leadership strategy and differentiation

strategy will help the company to compete in its business.

Which country we will choose to locate the company:

If I have the freedom to take Samsung Bangladesh ( mobile) company to take

anywhere in the world then I would like to locate in New Zealand . The

reasons are:

1)The Country & the economy:

The New Zealand is ranked number two in the Best Countries for Business-

2016 by the Forbes. It’s a multi-lingual and multi-cultural country with 4.70

million inhabitants living peacefully .. The stable and competitive economy of

New Zealand has experienced positive economic growth for 33 of the last 35

years.

2)Environment Friendly:

As Samsung has always been environment friendly company it is a great

advantage in New Zealand. As the people are highly environmentally concerned

and have a strong desire to preserve their country’s environment.

3) Taxes and Levies:

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Domestically, the tax system is in New Zealand is far easier to navigate. There

is no payroll tax to pay and no mandatory social security or capital gains tax to

pay. Overall Procedure is easy and fast to get the access of electricity to

enforcing a contract

4) Company Registration:

It would take just 30 minutes to the New Zealand Companies Office to

complete the registration and email the Certificate of registration. Usually, the

Certificate sent to the company in PDF and an executive folder for surface

delivery.

But New Zealand is one of the worthiest places for businesses in the world.

While it’s open, New Zealand is strict to its rules and regulations. Once starting

the business the company have to honour its laws to get the best out of its

resources.

Bibliography:

1) https://en.wikipedia.org/wiki/Xiaomi

2) https://www.gsmarena.com.bd/vivo/

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3) https://estore.fdl.com.bd/shop/samsung-factory

4) P. Robbins, Stephen. Management. Harlow: Pearson, 2019-2020. Print.

5) https://www.sfconsultingbd.com/australia/new-zealand-foreign-company-

registration/how-to-start-a-business-in-new-zealand/

6) Company interview done with: Shaon Ahsan, Sales Head, Mobile Business,

Samsung Bangladesh Branch at Samsung India Electronics Pvt. Ltd.

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