Samsung

Samsung Electronics Company: Global Marketing Operations

1-What factors enabled Samsung to transform itself from (at best ) an OEM , to a major consumer brand rivaling Sony?

2-Was Samsung varied international image a help or a hidrance in their transformation?

3-What is left to be done to overtake Sony, and how will they accomplish it?

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The Company : Samsung conglomerate dates back to 1938 when it produced agricultural products. In the 1970´s focused on shipbuilding, chemicals and textiles.

-1969 - Samsung Electronics Company (SEC ) was established as a low cost producer of black and white televisions.

-1970 – Acquires semiconductor business, setting stage for growth in electronics.

-1980´s – Supplier of commodities (TV´s,VCR´s,microwave ovens ) to better known brands.

-Mission emphasis on manufacturing quality and technical leadership in the industry with investment in R&D, state of the art manufacturing and supply chain activities.

The Strategy: In 1993 Chairman Kun Hee Lee launched the “New Management Initiative” which set out to remake Samsung as a global business leader. This meant rethinking the fundamentals and a long term commitment to investment in innovative, premium products and brand value. The company pursued a bold combination of strategies which seemingly contradicted conventional wisdom.

Samsung Strategy Conventional Wisdom

-Vertical integration -Outsourcing

-Harware Focus and “open architecture” -Propietary software

-Product diversification -Focus

-Full leap into digital technology (bet the -Gradually analog to digital

Company to catch the rivals)

-Digital convergence -Stand alone products

Marketing: From a product driven company...