SAMSUNG

Project Report

ON

Samsung

Submitted To: - Submitted By: -

Central Uniersity of Jharkhand

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Samsung History

Samsung's history dates to 1938 when "Samsung General Stores" opened in North Kyung-sang Province, Korea. The company conducted its trade business until the 1950s when it became a producer of basic commodities such as sugar and wool. In 1958, Samsung be-came involved in the insurance industry by incorporating a local fire & marine insurance company.

During the 1960s, Samsung became one of the first Korean companies to actively expand its overseas trade. The group consolidated its manufacturing base by adding paper and fertilizer businesses. Samsung continued with expansion into the life insurance business, strengthened its retail operations and then moved into the communications sector, successfully establishing a newspaper and a broadcasting company.

The 1970s were a crucial period in shaping present-day Samsung. Its strengths in the semiconductor, information and telecommunications industries grew from the significant investments made during this period. Samsung also took a meaningful step toward heavy industries by venturing into aircraft manufacturing, shipbuilding and construction, as well as chemical industries.

In the 1980s, Samsung expanded its efforts into exploring the larger markets overseas. The group began contributing to foreign economies by building facilities in the US, the UK and Portugal. Samsung also invested considerable resources into fostering Korea’s rich heritage by supporting a wide range of cultural and artistic activities.

The final decade of the 20th century saw the evolution of Samsung's new approach to management. Chairman Kun-Hee Lee's insightful vision and the introduction of the "New Management" in 1993 acknowledged the need to transform management philosophy in or-der to keep up with a rapidly changing global economy. More recently in 2000, a "Digital Management" approach was adopted to ensure that Samsung maintains a leading position as the Information Age continues to transform global business and culture.

Since Kun-Hee Lee's appointment as Chairman in 1987, the group's total sales increased by 7.2 times to US$98.7 billion and net income by 25 times to US$4.5 billion in 2001. Total assets of the group grew 12.6 times to US$124.3 billion.

Today, Samsung has evolved into a group of companies unmatched by others in its range of industries and performance. It is now coherently restructured and streamlined, welltrained, globally-focused and responsive to the needs of each market, and more committed than ever to true innovation. The group's three core business sectors are electronics, finance, and trade and services.

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Leaders of Global Growth

Kun-Hee Lee, Chairman:

Son of founder Byung-Chull Lee, Kun-Hee Lee's early career at Samsung included a decade serving as Executive Director of the Joong-Ang Daily newspaper and Tong-Yang Broadcasting Corporation. Becoming Vice Chairman of the Samsung Group in 1978 and Chairman in 1987, Lee presented a blueprint for Samsung's global success in the 21st century with his "New Management" declaration in 1993. In 1998, Lee took over the helm of Samsung Electronics Co. as Chairman.

Lee's "New Management" encompasses intellectual capital, organizational creativity, tech-nological innovation and employee empowerment as the key strategies for Samsung's profitable growth in an era of unbridled global competition. Lee was named among Asia's 50 most influential people by Asiaweek for six consecutive years and was also named one of the world's most influential people by the French weekly Le Nouvel Observateur. His broad perspective on business stems in part from his participation in many organizations such as the Korea-Japan Economic Committee and the Federation of Korean Industries.

An amateur wrestler in his youth and an avid golfer and equestrian today, Chairman Lee is committed to the advancement of amateur sports in Korea and around the world. He has been a member of the International Olympic Committee since the 1996 Atlanta Olympic Games. Born in 1942 in Uiryung, Kyongnam Province, South Korea, Lee majored in Economics at Japan's Waseda University and studied Business Administration at George Washington University in the United States.

Byung-Chull Lee (1910-1987), Founder:

Byung-Chull Lee, who founded the Samsung Store in 1938, was the leading business vi-sionary of his time. With a philosophy of service to the nation through business and an emphasis on cultivating quality human resources, Lee is remembered today as much for his pioneering role in Korea's industrialization as for his philanthropic activities and spirit of social duty.

Samsung's, and indeed Korea's, strong presence in semiconductors, electronics, engineering, aerospace and many other future-oriented industries can be traced directly to the early foresight and determination of founder Lee.

Mr. Lee also devoted himself to preserving the nation's cultural heritage for future genera-tions. The establishment of the Ho-Am Art Museum, which houses the largest private col-lection of art and artifacts in Asia, preserves the nation’s heritage, while the Samsung Foundation of Culture encourages the cultural and artistic pursuits of future generations. In 1997, the Ho-Am Foundation was created in memory of founder Lee's contribution to society.

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Vision and Strategy

In 1993, Chairman Kun-Hee Lee presented a blueprint for Samsung's global success in the 21st century with his "New Management" declaration that encompasses intellectual capi-tal, organizational creativity, technological innovation and employee empowerment as the key strategies for Samsung's profitable growth in an era of unbridled global competition.

"New Management" implementation began by encouraging individual employees to first make changes within themselves, striving to care more for others and to behave ethically. Today, performance at Samsung is measured in qualitative rather than quantitative, terms. Moreover, international competitiveness is an overriding objective, achieved through multi-faceted integration of facilities as well as the development of global information systems. Samsung's ultimate goal is to achieve quality-of-life improvements worldwide by succeeding as a top-tier enterprise in the 21st century.

For the past half-century, Samsung employees have been guided by a corporate philosophy that states, "We will devote our people and technology to create superior products and ser-vices, thereby contributing to a better global society." Today, this corporate philosophy unites all Samsung-affiliated companies. Through enhanced global management, Sam-sung is now embracing the emerging business trends worldwide, enabling it to react quick-ly and respond to local market changes.

The year 2000 was declared as "Samsung's initial year of digital management." Through this declaration, Samsung set an objective to become the winner in the digital era of the 21st century through leading initiatives based on its pioneering spirit and management strategy of selection and concentration, as well as by advancing the standards of next generation digital convergence technology.

Innovation has long been critical to Samsung's success, helping the group to be "first" in many new product developments and technological breakthroughs. Its commitment to in-novation continues to be stronger than ever. For example, Samsung Electronics, which has been among the world's top 10 in US patents for four consecutive years, has 13,000 re-searchers representing a US$1.7 billion investment in Research and Development.

As Samsung expands its global presence and recognition, it has not lost touch with its roots in Korea. Samsung continues to be a leading influence and major supporter of the Korean economy, society, and culture.

Although Samsung-affiliated companies are spread over a range of industries and operate independently, they share the same overall management philosophy, code of conduct and corporate identity. Chairman Lee is responsible for determining the long-term vision and direction of strategy for the group, while Chief Executive Officers of each affiliate have the responsibility for autonomous decision-making on ordinary business issues.

Samsung aims to grow the businesses of the group to about US$224 billion in sales by 2010, with income before tax of around US$25 billion. Total assets are expected to reach in excess of US$280 billion.

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Globalization

With more than 285 overseas operations in 67 countries, Samsung is truly global in scope and nature. Samsung's strategy is two-pronged: to prudently expand outside its home market and to equip overseas units with the skills and resources to be self-sufficient.

This strategy brings Samsung, and the countries where it operates, enormous opportunities. Globalization provides access to new suppliers and customers, and allows Samsung to learn and benefit from new cultures and new ideas. In addition, Samsung places a priority on being a respected corporate citizen, a good employer, and a helpful neighbour in the local community and hence contribute to the local economy.

Samsung is already a world leader in many business areas. In electronics, it is the number one producer of memory chips, LCDs, displays and CDMA handheld phones. In finance, Samsung Life Insurance is ranked 10th largest life insurance company in the world by Fortune magazine.

Increasingly, Samsung has been forming cooperative alliances with the some of the lead-ing names in the global technology arena to share vision, knowledge and experience.

Alliances include cooperation with Microsoft, AOL Time Warner, and Sprint in the areas of technology and marketing. Samsung is also working with Intel, Sony, and Qualcomm on technology exchange as well as standardization. Collaborating with Dell, IBM , Com -paq, and Hewlett-Packard has helped to reduce risks in entering new business areas and to secure stable supplies.

The partnerships are designed to provide all customers with efficiency, productivity and stability with the aim of being a total solutions provider in the areas of home, mobile and office through Digital Convergence and Networking.

Samsung's goal in every market is to maximize brand equity through superior design, mar-keting, and customer service, and to constantly deliver the highest-quality products. The steadfast commitment in each of these areas will ultimately place the "Samsung" name among the best known and most respected in the world. Samsung's brand value increased to US$8.31 billion in 2002 from US$6.37 billion in 2001 and was recognized by Interbrand Corporation as the fastest growing global brand.

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Commitment to Hum an Resources

One of the management philosophies of the late founding Chairman Byung-Chull Lee was that "A Company is Its People." Attracting and developing the best people is key to Sam-sung maintaining, and enhancing, an advantageous position in an era of technology com-petition.

All new employees attend a comprehensive one-month orientation / education program to learn and understand the core values of the group, its management and strategic direction, and the vision that Samsung is pursuing.

One of Samsung's human resources strategies is to recruit the highest-quality personnel from around the world, regardless of nationality, by focusing on those who have Masters and Doctorate degrees in all areas of management, such as research and development, marketing, finance, design and information technology.

Recognizing that globalization of domestic human resources is as important as attracting high-quality personnel from overseas, Samsung is continuously strengthening the global competencies of core personnel by focusing on foreign language proficiency and ability to acclimatize to foreign cultures.

Samsung is also making efforts to provide early career-development programs for individ-uals who have been identified as possessing noteworthy capability and talent in a range of are

Since its establishment, Samsung has become a national company representing Korea as a result of implementing its spirit of "Priority of Human Resources" through which it has placed great value in its employees and raised human resources necessary for the nation and the community.

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KEY FACTS

• Date founded: 1938

• Chairman (since 1987): Kun-Hee Lee

• Founder: Byung-Chull Lee (1910-1987)

• Headquarters: Seoul, South Korea

• Global Operations: 285 offices and facilities in 67 countries

• Main Business Sectors: Electronics, Finance, and Trade and Services

• Number of Employees: 173,000 worldwide

• Number of listed companies within the group: 14

• Listed Companies:

- Samsung Electronics Co.. Ltd.

- Samsung SDI Co., Ltd.

- Samsung Electro-Mechanics Co., Ltd.

- Samsung Techwin Co., Ltd.

- Samsung Heavy Industries Co., Ltd.

- Samsung Fine Chemicals Co., Ltd.

- Samsung Fire & Marine Insurance Co., Ltd.

- Samsung Securities Co., Ltd.

- Samsung Corporation

- Samsung Engineering Co., Ltd.

- C heil Industries Inc .

- The Shilla Hotels and Resorts Co., Ltd.

- Cheil Communications Inc .

- SI Corporation

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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 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 world’s 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, Samsung’s 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, Samsung’s 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.

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The Samsung Philosophy

At Samsung, we follow a simple business philosophy: to devote our talent and technology to creating superior products and services that contribute to a better global society.

Every day, our people bring this philosophy to life. Our leaders search for the brightest talent from around the world, and give them the resources they need to be the best at what they do. The result is that all of our products—from memory chips that help businesses store vital knowledge to mobile phones that connect people across continents— have the power to enrich lives. And that’s what making a better global society all is about.

Company’s Values -

We believe that living by strong values is the key to good business. At Samsung, a rigorous code of conduct and these core values are at the heart of every decision we make.

People

Quite simply, a company is its people. At Samsung, we’re dedicated to giving our people a wealth of opportunities to reach their full potential.

Excellence

Everything we do at Samsung is driven by an unyielding passion for excellence—and an unfaltering commitment to develop the best products and services on the market.

Change

In today’s fast-paced global economy, change is constant and innovation is critical to a company’s survival. As we have done for 70 years, we set our sights on the future, anticipating market needs and demands so we can steer our company toward long-term success.

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Integrity

Operating in an ethical way is the foundation of our business. Everything we do is guided by a moral compass that ensures fairness, respect for all stakeholders and complete transparency.

Co-prosperity

A business cannot be successful unless it creates prosperity and opportunity for others. Samsung is dedicated to being a socially and environmentally responsible corporate citizen in every community where we operate around the globe.

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Vision 2020 -

As stated in its new motto, Samsung Electronics' vision for the new decade is, "Inspire the World, Create the Future."

This new vision reflects Samsung Electronics’ commitment to inspiring its communities by leveraging Samsung's three key strengths: “New Technology,” “Innovative Products,” and “Creative Solutions.” -- and to promoting new value for Samsung's core networks -- Industry, Partners, and Employees. Through these efforts, Samsung hopes to contribute to a better world and a richer experience for all.

As part of this vision, Samsung has mapped out a specific plan of reaching $400 billion in revenue and becoming one of the world’s top five brands by 2020. To this end, Samsung has also established three strategic approaches in its management: “Creativity,” “Partnership,” and “Talent.”

Samsung is excited about the future. As we build on our previous accomplishments, we look forward to exploring new territories, including health, medicine, and biotechnology. Samsung is committed to being a creative leader in new markets and becoming a truly No. 1 business going forward.

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Achievement of the company

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Strategies of Samsung in India

Product Strategies

Pricing

Promotion

Positioning

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Samsung Profile 2011

At Samsung our gaze is cast forward, beyond the next quarter or the next year, ahead into areas unknown. By charting a course toward new businesses and new challenges, we are sowing seeds for future success.

2011 Financial Highlights -

AMOUNTS IN BILLIONS WON DOLLARS EUROSNet Sales* 254,561.5 220.1 165.9Total Assets 391,391.9 343.7 258.7Total Liabilities 230,688.5 202.6 152.5Total Stockholder's Equity 160,693.5 141.1 106.2Net Income* 24,497.9 21.2 16.0

[Amounts in billions]

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SWOT Analysis of Samsung

Strengths:

New bogus appurtenances abstraction to rollout in 5 months.

Communicable the beating of the buyer, present acceptable designs & accepting

emotions.

Heavy asset in technology, artefact architecture and staff.

Weaknesses:

Lack in artefact separation.

Different models at assorted amount points.

Centremost on accumulation bazaar instead of alcove markets.

Not actual user affable design.

Opportunities:

Differentiate its account from competitors.

Offer artefact variation

Crave for corpuscle phones apprenticed by the account provider or carriers.

Affordability by 43%.

Threats:

Motorola's baby minding in the U.S market, Nokia's acceptance in the Pakistani

market, artful added than bisected of the apple market.

Agitated competitor, including Sony Ericsson and Siemens bistro into its share.

Not befitting clue of the new trend in the market.

Not an appearance accent and appearance statement

Hericaial structure

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Strategies of Samsung

Product Innovation -

Samsung's product range in India included CTVs, audio and video products, information technology products, mobile phones and home appliances. Its product range covered all the categories in the consumer electronics and home appliances. Analysts felt that the wide product range of Samsung was one of main reasons for its success in the Indian market. Samsung positioned itself on the technology platform.

Pricing -

Pricing also seemed to have played a significant role in Samsung's success.

Distribution -

Along with the launch of new products, Samsung also consolidated its distribution system. Samsung had 18 state-level distribution offices and a direct dealer interface. The direct dealer interface helped the company get quick feedback from dealers, and enabled it to launch products according to consumer needs. Advertising and Sales Promotion -

In 1995, when Samsung entered India, it realized that Indian consumers were not familiar with the company. So, in order to establish itself in the Indian consumers ‘mind, Samsung launched corporate advertisements highlighting its technologically superior goods.

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.

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

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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.

Samsung Electronics: 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 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.

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.

Samsung's Plan to Strengthen Its Weaknesses -

The global cell phone business has been in a funk lately, with handset sales off 11% this year—a 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 cements 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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In India, its share is less than 10%, vs. Nokia's 58%. And of the 150 or so new models Samsung will introduce this year, only a half-dozen cost less than $100.

Samsung's Marketing Strategy in India -

Samsung entered India in December 1995 as a 51:49 joint venture with Reasonable Computer Solutions Pvt Ltd (RCSPL), owned by Venugopal Dhoot of the Videocon group. In 1998, RCSPL diluted its stake in Samsung to 26% and in November 2002, the FIPB cleared Samsung's proposal to buy RCSPL's remaining (23%) stake.

In 2002, Samsung established manufacturing facilities for colour televisions, microwave ovens, washing machines and air conditioners at Noida, Uttar Pradesh. It also had a presence in consumer electronics, information technology products, mobile phones and home appliances. Samsung's flagship businesses were consumer electronics and home appliances, which contributed more than 60% of its revenues.

In 2002, Samsung reported sales of Rs.170 million with 26% growth over the previous year. Its consumer electronics business grew by 29% and contributed 60% to the total sales, and its home appliances division grew by 21%, contributing 40 % of the total sales.

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.

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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.

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.

Samsung's strategy pressures competitors -Samsung Electronics Co. Ltd is piling on the pressure in the second quarter with a flood of investments— approximately Rs.28,226.70 crore (7.3 trillion Korean won or $7 billion)—migrating into advanced geometries to further reduce costs and proposing a hefty 100 per cent jump in DRAM bit shipment and 130 per cent for NAND memory components.

Despite this, Samsung executives speak little about boosting depressed DRAM average selling price. That goal, which they admit will benefit the entire memory component market and is critical to profitability in the embattled sector, will come later.

"We plan to make massive investments and try to expand our market share through implementation of aggressive investment plans and migration into advanced geometry," said Yeongho Kang, vice president of the semiconductor business at Samsung, in a presentation to the investment community following the release of the company's first quarter results.

"We will accelerate our efforts to strengthen our competitive edge and continue to widen the gap with our competitors to achieve further growth and profitability," added Kang.

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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.

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 Today

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.

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Samsung Facts

Lee Byung-chull founded Samsung Group in 1938, naming the start-up company a Korean word which translates to "three stars" in English.Samsung Mobile enjoys agreements with major cell phone service providers such as T-Mobile, AT&T, Sprint and Verizon Wireless.In early 2009, Samsung Mobile and T-Mobile introduced the Memoir, a cell phone with a "Best in Class" 8-Megapixel camera.

Samsung Mobiles: Smartphone strategy for the Indian market -

Samsung Mobile’s line-up of smart phones and tablets has helped the handset maker rally a significant share in a market that is largely dominated by Nokia. Samsung sold 12.6 million smart phones in the quarter ended March 2011, boosting its global Smartphone market share by 7.4 percentage points from the previous year to 12.2 per cent. It now ranks fourth after Nokia, Apple and Research in Motion (RIM). Samsung is only 1.2 percentage points behind RIM and is expected to grab the number three spot in 2011 if it maintains its current growth rate. Advance orders for Samsung’s Galaxy S2, which was released in April 2011, surpassed 3 million units within a week of the launch, posing a threat even to Apple. At this rate, its sales are expected to top 14 million units in the current quarter.

Blue Ocean Strategy (BOS) – Samsung Electronics 2006-2010 -

Value Innovation, first component of Blue Ocean Strategy is Samsung’s 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 world’s 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

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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.

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 Google’s 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: product’s competitiveness is everything, and it must be kept away from price wars.

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Conclusion

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Bibliography

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