Samsung Case

Samsung was founded in 1938 in Taegu, Korea. It primarily focused on trade export, selling dried Korean fish, vegetables, and fruit to Manchurian and Beijing. Then in little a more than a decade it had its own flourmills and confectionery machines. After years, Samsung become a modern global corporate as today. (www.Samsung.com)

Samsung has expanded over the years. In the 1970s and 1980s, they had 175,000 employees worldwide and were operating in 64 countries. Samsung group operates in a wide range of businesses but they concentrates on three core activities: electronics, finance, and trade and services. Samsung was the South Korea’s largest electronics company in 2003 by surpassing their formal rival Hyundai. They manufactured a wide variety of consumer devices in the 1980s. By 2000, Samsung products either were produced under contract for other electronics firms or marketed directly under Samsung brand make Samsung a credible brand worldwide. (Samsung case study)

The Samsung Electronic Canada (SECA) located in Mississauga, Ontario is a wholly owned operation subsidiary of Samsung Electronics group that works within North America. The Canadian consumer market consists of four components:

1- High-income families

2- The young generation

3- Business users

4- Hobbyists

All consumer electronics were sold at large specialty stores like Best Buy and Future shop, and some traditional department like Wal-Mart. Customers have also been able to order online.

SECA marketed their products in two categories: consumer electronics and information technology. Exhibit 6 of the case illustrates the products marketed by the Canadian based division of Samsung. Consumer products like HDTV, MP3, and DVD players were good sellers for SECA. IT also specialized in producing products like LCD monitors, laser printers, and data storages. Although some of the products like MP3 players were less profitable, they still produced good margins and had good...