An

Assignment on

Mobile Industry/Samsung Company

In partial fulfillment for the requirements of Product and Brand

Management course in the Two Year Full-time Masters of Business
Administration Program

GLS University.

Submitted To:

Prof. Roshni Tijoriwala

Assistant Professor

Submitted by

1. Ajay Shukla (NR 15152)

2. Chirag Bhavsar (NR 15013)
3. Nikhil Nair (NR 15082)

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Porters five forces:
Porters five forces analysis is done to understand the industry attractiveness of the
smart phone industry. This five forces analysis is just one part of the complete Porter
strategic models.

1) Threat of new entrants- low

The mobile phone industry is already a well-established market and the threat of a new
entrant is quite low because

i) Capital requirement is very high to compete in the market like huge manufacturing
costs, high Research and development costs etc.

ii) Barriers like patents make it difficult for new competitors, because the best methods
are patented.

iii) Costumers loyalty towards existing brands.

iv) Advanced technologies make it difficult for new competitors to enter the market
because they have to develop those technologies before effectively competing.

v) All leading companies are fighting a fierce battle to gain more market share, so there
will be heavy retaliation towards any new entry.

vi) There is a constant push to innovate and launch new products.

There are always possible threats of new entrants in the Phone industry, not necessarily
a threat of a new phone company but of new products from established companies. So
the company has less danger of further new entrants but it has to be focused on the
existing enemies.

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2) Threat of substitute products or services-moderate

Presence and availability of substituted products is a great threat for the successful
survival of the organization since it can enforce the organization to cut the price of its
product.

i) The power of substitute products is moderate and it depends on the impact of the
substitute products.

ii) Smart phones have two primary functions: first to keep people connected through
communication. Second is the ability to access and distribute information
instantaneously. The substitutes that can perform one or more of these functions include
social networking, landlines, newspapers, magazines, e-mails, internet services etc.
Many of the smart phones that are available on the market today are already available
with a variety of substitutes like social networking, e-mail, internet etc.

iii) Smart phones do wide variety of functions so any product that specializes in one of
those individual functions can be termed as a substitute. There are many substitutes if
the buyer focuses on one of the functions, e.g. digital camera can take better photos
then smart phones, notebooks can surf the web just as effectively and PDAs can plan a
day the same way a smart phone can.

iv) Regarding os, major threat is from substitutes like apples iphone and other android
devices.

v) When the economy is low the substitute for the smart phone is what we call the dumb
phone which is very cheap and can only be used for calling and messaging.

In conclusion, the threat of a substitute product is moderate due to the fact a smart
phone is no longer just for making calls but for all the other function as well are
expected on all smart phones. So, the only real substitute is to buy all the functions of a
mobile phone in the individual products which would not be plausible to carry all around
on a person at the same time.

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3) Bargaining power of customers (buyers)-high
Bargaining power of buyer is high so product differentiation is an ideal way to add value
to the buyer.

i) The power that customers have is rising because of the increasing number of choices
in the mobile telecommunication industry and very little differentiation of products.

ii) Less asymmetric information which means buyers have all the required information
so they can bargain effectively.

iii) With a lot of the blackberry competitors all offering similar packages the industry is
very price sensitive with customers seeking out the best value for money.

iv) Low switching costs make it easy for customers to change the products they
normally purchase.

v) Demand is highly sensitive to economy, buyers can delay buying new models until
the prices come down favorable to them.

As Blackberry do not have a direct store to sell to their consumers, intermediate stores
also have other handsets readily available for the consumers, which makes it difficult for
Blackberry to have a direct impact on the selling of their handsets. As a result this has
created a very price sensitive market because consumers will always be on the lookout
for the best deals. In conclusion, the buyers have a high amount of power because of
the other handsets they can purchase instead of blackberry.

4) Bargaining power of suppliers-moderate

There are two main suppliers in this industry: the hard ware manufacturers and the
software developers

i) Although blackberry rely on its suppliers to supply equipment for their advanced
mobile phones there are actually a number of large equipment makers, which
blackberry could switch to.

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ii) As the leading mobile phone company in the industry they are in a very strong
position when bargaining with their suppliers.

iii) Blackberry is in the position where they can bargain and negotiate with any mobile
phone hardware maker because there is a high number of equipment suppliers that are
readily available to them .

iv) Blackberrys main argument would be the fact that they are a global organization that
has the good market share in the industry, so the suppliers would not want to lose such
an illustrious organization.

v) Regarding software suppliers there are so many open source mobile operating
system providers, options are plenty and hence the bargaining power of software
provider is low.

vi) The other important factor is low bargaining power of supplier is that there is intense
competition among suppliers acts to reduce prices to producers.

5) Intensity of Existing Rivalry-high

Competition is intense among existing companies. Although there is no much difference

in their products, companies try to differentiate their products in terms of applications
and services offered.

i) The competitive environment of the Blackberry is intense due to the launch of new
products from already well-known and established brands. For example Samsung
galaxy S4, Nokia Lumia 720.

ii) BB competes well with its feature of BlackBerry messenger, which no other smart
phone has. Its other important feature is its QWERTY keypad because of which it
became famous for.

iii) The primary competitors of blackberry are smart phones running on Android and
the Apple phone.

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iv) Despite market share loss, on a global basis, the number of active BlackBerry users
has increased substantially through the years.

v) Competitors like Samsung and nokia have smart phones price starts from as low as
5k where as blackberrys initial price starts from 13k so the common people show
interest towards them than blackberry making the competition more intense.

vi) When it comes to applications, blackberry is facing a huge competition majorly from
android market where unlimited apps can be downloaded

vii) when the Apple iphone was first released RIM reported that they had 10.5
million BlackBerry subscribers . At the end of 2008, when Google Android was
released RIM subscribers had increased to 21 million. By the end of 2012 its users
increased to 80 million

In conclusion, competitive rivalry is very high and Blackberry must be aware of the
threat that competitors have on their business especially with the growing popularity of
the Apple iphone and Samsung galaxy.

PESTAL Analysis

It is very important that an organization considers its environment before beginning the
marketing process. In fact, environmental analysis should be continuous and feed all
aspects of planning. The organization's marketing environment is made up from:

The internal environment

The micro-environment
The macro-environment

e.g. Political and legal forces, Economic forces, Socio-cultural forces, and Technological
forces. These are known as PESTL factors.

A PESTAL analysis is one of them that are merely a framework that categorizes
environmental influences as political, economic, social and technological forces.
Sometimes two additional factors, environmental and legal, will be added to make a

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PESTAL analysis, but these themes can easily be subsumed in the others. The analysis
examines the impact of each of these factors (and their interplay with each other) on the
business.

PESTAL is useful when a company decides to enter its business operations into new
markets and new countries. The use of PESTAL, in this case, helps to break free of
unconscious assumptions, and help to effectively adapt to the realities of the new
environment.

POLITICAL FACTORS

Samsung faced 2 week strike from its employee. In the India at the moment mobile
industry is highly regulated and ministry of telecom intervention does take place. In the
de-regulated market telephone operators and manufacturers are free to act
independently of govt. intervention.

ECONOMIC FACTORS

Economy has a key role in profitability of the mobile industry. Indias growing economy &
peoples income which is rising is positive factor for Samsung. There is only few affect
by recession on Indian economy.

SOCIO-CULTURAL FACTORS

In India mobile users are more aware of mobile handset choice & advancement. Indian
young generation and youth are focusing maximum features mobile handset. Indian
rural residents like farmers are focusing low cost handset

Now-a-days consumers are not brand loyal as they were previously, now they can
easily switch to another product. the many difficulties involved in producing a useful
overview of new mobile technologies on a global scale. The variety of languages in
which mobile Communication takes place and in which research is done is obviously
formidable, but even more so is the pace at which the development and spread of these
devices is taking place; it is almost impossible to keep up but then too due to increasing

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competition and consumer expectation every companies are working accordingly by
keeping the aspects of socio-cultural factors.

TECHNOLOGICAL FACTORS

Mobile industry is marked by drastic technological changes. Indian markets are more
technological advanced then European counterparts, Ex.- 8 years ago 4% mobiles had
cameras, whereas in India 90% did. Every handset manufacturer has updated
themselves with advanced technology like camera, internet, GPRS, MMS, WAP, Wlan
etc. In India all handset manufacturers have to keep up to date with all newest
technological advances, if they want to capture & share the market

Generation of mobile handset:

GSM : Global System For Mobile

CDMA: Code Division Multiple Access

First Generation

Second Generation

Third Generation

Smart Phone

Legal Factor

legal environment is extremely challenging because it operates within the European

Union. That bodys regulators have been investigating Googles use of Android for a
possible antitrust case. EU action against Google could lead to radical changes in
Nokias market, such as Android being spun off into a separate company.

I.e Samsung has had to face heavy penalties for its alleged imitation of the Apples iPad
and iPhone and this has led to the company taking a beating as far as public
perceptions and consumer approval of its strategies are concerned. It remains to be

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seen as to how the company would wriggle out of the legal maze that it finds itself in the
developed markets because of the various lawsuits.

ENVIRONMENTAL FACTORS

Every electronics manufacturers is faced with the problem of safely and economically
disposing of its used products in an environmentally-friendly manner. One costly
requirement that it could face in the years ahead is laws making electronics
manufacturers responsible for the disposal or recycling of used devices, a potentially
costly expense, particularly if the devices use lithium batteries.

Another environmental concern that could affect increased costs for materials and
components, particularly lithium for batteries. Increased demand for lithium for other
uses such as electric cars could limit its supply and raise costs.

A long-range challenge could be climate change created by global warming, which

could disrupt transoceanic shipping and supply chain.

SWOT Analysis of Mobile Industry

Strengths
Most personal marketing channel available on the market
Measurable for ROI purposes
Completely permission-based, with opt-in required for marketing text messages
Ubiquity of channel -- 260 million mobile subscribers nationwide, 3.5 billion worldwide
Many consumers giving up landlines for mobile
Sales of smartphones with Internet capability booming
Many marketers, retailers and publishers recognizing need for mobile presence
Most powerful loyalty marketing tool
Ideal comparison-shopping tool for shopping and buying decisions
Mobile applications market growing by leaps and bounds
The future of couponing
The future of search marketing. Google and Yahoo know that

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Weaknesses
Perception problem -- always the bridesmaid, never the bride
User experience with the Internet on mobile not ideal -- screen size, keypad and slow
network speeds
Why not regular HTML browsers like the Safari on the Apple iPhone?
Wireless carriers not innovating at faster pace
Lack of standards across platforms and carriers
Many mobile marketing service providers not sophisticated in marketing outreach --
don't tell, won't sell
Fate depends on four major carriers -- AT&T, Verizon Wireless, T-Mobile and Sprint
Nextel
Inadequate outreach to advertising agencies and media buyers

Opportunities
Gives legs to other channels -- store, online, television, radio, print and billboards
Mobile is the future -- no, the present -- of database marketing. Marketers must have
mobile loyalty program to complement online and offline
Benefit from marketing dollars pulled from television, print and radio toward more
measurable, ROI-driven media, a.k.a., the Internet and mobile
Mobile advertising subsidizes content and services for consumers who understand the
tradeoff
More SMS text marketing for marketers and retailers targeting offers and alerts to
opted-in consumers in database. Make the short code common
More quality content on mobile as publishers launch mobile editions. More room for
targeted ads
Mobile coupons -- killer app for mobile, along with mobile database marketing
Mobile marketing jumpstarts mobile commerce sales

Threats
Mobile is treated as experimental budget and cut
Mobile marketing service providers hibernate, cut marketing outreach to world -- and
then complain why they are ignored in media-buying decisions

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Associations representing mobile marketers' interests remain on bended knee to
carriers. Not good
Carriers increase commercial SMS delivery fees to opted-in subscribers. Will kill
legitimate SMS marketing
Funding for mobile service providers and mobile marketing firms dries up
A carrier goes belly-up
Legislation to enforce consumer protection on privacy, security, unsolicited messages,
location-based ads, misleading advertising and children
Ad agencies think mobile marketing is too complicated, thus delaying inclusion in
multichannel marketing campaigns
Sales of smartphones with Internet capability stall
Upgrades to higher-price data plans slow down

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SWOT ANALYSIS OF SAMSUNG

Samsung Electronics Co. Limited (OTC: SSNLF) is actually the consumer electronics
subsidiary of the Samsung Group, a conglomerate based in Suwon, South Korea.
Outside of Korea, Samsung is best known as the worlds largest manufacturer of mobile
phones and smartphones, including the highly popular and successful Galaxy.

It is also the worlds largest manufacturer of televisions and LCD panels. Thanks to its
manufacturing and marketing expertise, Samsung is regarded as the worlds second
largest consumer electronics company. Only its American rival, Apple Inc. (NASDAQ:
AAPL), reported larger revenues.

Unfortunately, it is difficult to determine exactly what Samsungs are because it is based

in Korea and not covered by U.S. corporate reporting laws. Samsung did report an
estimated TTM revenue of $42.35 billion for the second quarter of 2015. That figure is
based on sales of 48 trillion Korean won.

STRENGTHS

Samsung is the worlds most successful electronics manufacturer. It is the worlds

largest manufacturer of television sets, liquid crystal display (LCD) panels, mobile
phones and smartphones.

Samsung is the worlds number one marketer of mobile phones with 21.4% of the
worlds largest market share in the second quarter of 2015. Apple is number two
with 13.9%

Samsung has impressive research and design capabilities. It was able to create
and roll out Samsung Pay, a payment app with similar capabilities to Apple Pay,
in less than a year. Samsung has been able to replicate many of the capabilities
of both Apple Inc.s phones and Google Inc.s Android operating system for
mobile devices.

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 Samsung has strong manufacturing and marketing capabilities.

Samsung has long-standing relationships with retailers in the United States and
Europe that provide a steady sales channel for its products.

WEAKNESSES

Samsung has not been able to match Apple Inc.s marketing capabilities for
smartphones. Its share of the U.S. smartphone market fell by 2.3% between
2014 and 2015. In contrast, Apples share price grew by 34.9%.

Some Chinese competitors are catching up to Samsung in the smartphone

market. Between 2014 and 2015 Huaweis share grew by 48.1%, and Xiaomis
share grew by 29.4%.

Samsung is heavily dependent upon consumer electronics sales in markets with

limited potential for growth, such as the United States and Europe, for much of its
revenue.

Samsungs devices use the Google Android open source operating system.
Many consumers seem to view Android as an inferior product to Apples iOS. The
public has not been as accepting of Android as the tech community has.

Some consumers view Apple products as more advanced and dependable than
Samsung products.

Samsungs marketing efforts are not as sophisticated as Apples.

OPPORTUNITIES

Growing market for smartphones, tablets and other mobile devices, especially in
developing regions such as Africa and India, where consumers are unfamiliar

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 with PCs. Sales of tablets finally overtook sales of traditional personal computers
in 2015.

Increased demand for tablet and smartphone-based solutions such as Samsung

Pay

New technologies such as wearable tech

Growing middle class in developing world will increase market for consumer
electronics.

Growing online market from sales channels such as Amazon.com

THREATS:

Apple has emerged as the dominant smartphone and tablet brand in some
markets, such as the United States. Samsung has not been able to overcome
Apples reputation for reliability.

Apples reputation for quality, reliability and sophistication seems to be growing.

The Google Android operating system, which Galaxy devices depend upon, is
not as popular with average people as iOS is.

Declining or stagnating middle-class incomes in North America and the United

States could reduce consumer buying power in those key markets for Samsung.

Chinese manufacturers such as Huawei and Xiaomi could emerge as serious

rivals to Samsung. These companies share of the critical mobile device market is
growing while Samsungs is falling.

Apple could enter more consumer products areas such as home appliances and
cameras and directly compete with Samsung in those markets.

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 Samsung Value Chain Analysis
Value-chain analysis is an analytical framework that assists in identifying business
activities that can create value and competitive advantage to the business. Figure 1
below illustrates the essence of value chain analysis.

Primary Activities

Inbound logistics. The majority of Samsung suppliers are based in Asia and
accordingly, 79.4% of its supply-chain expenses occur in Asia. This is followed by
Americas (14.8%), Europe (4.4%) and other places. In order control inbound logistics
aspect of the business more effectively, Samsung owns a number of logistics firms as
its subsidiaries. The most notably, Samsung Electronics Logitec, established in 1998, is
an integrated enterprise logistics management agent that serves logistics needs of the
company with 540 employees and 8,600 partner employees around the globe.

Operations. As of December 31, 2014, the company maintained 213 global operations
hubs that included subsidiaries, sales subsidiaries, design centers, and research
centers. Figure 2 below illustrates the full scope of Samsung global network of
operations.

Samsung manufacturing operations comprise the following:

1. General manufacturing: semiconductors and components;

2. System manufacturing: applications and software;

3. Device assembly packaging: batteries and other components, label assembly.

The company heavily relies on Six Sigma methodology in its business operations.

Outbound logistics. Although Apple, formerly led by late Steve Jobs is generally
acknowledged as the pioneer in introducing modern smartphones, Samsung has proved
to be exceptionally quick in launching its own products to compete with Apple. Effective

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outbound logistics system plays an important role for Samsung in terms of being able to
deliver updates of its popular products to customers in a timely manner.

Samsung Electronics Logitec mentioned above facilitates the major part of outbound
logistics operations. Moreover, Samsung Electronics Logitec conducts the
comprehensive range of logistics operations including negotiation of payment
collections on behalf of Samsung and dealing with insurance claims.

Marketing and sales as primary activities aim to channel the attention of the target
customer segment to the perceived competitive advantage of the brand associated with
high quality and advanced functions and capabilities of products. Samsungs total
marketing budget of USD 363 million in 2013 is considerably higher than the marketing
budget of the majority of its direct competitors. This budget is spent on print and media
advertising, events and experiences and public relations programs and initiatives.
Having spent about USD 4.6 billion on sales promotions during 2013 alone, Samsung
has adapted sales promotion as one of the core elements of its marketing technique.

Service. Samsung strives to deliver the customer services of the highest standards.
The company conducts customer satisfaction surveys managed by external parties in a
regular manner in order to achieve and sustain high levels of customer satisfaction.
There is a universal phone number for Samsung Direct Support and unlike the majority
of multinational enterprises, Samsung promises to get back to customers in developed
countries within 24 hours

BCG Matrix for Samsung

The analysis of the company is presented as follows:

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Cash Cows

An organization having a business unit that is a part of mature industry can be identified
as a cash cow. The key feature for the business or product to qualify as a cash cow is
that it would not be a resource intensive production process, while the return on
investment is high. The slow pace of expansion of the industry indicates that the
businesses in this environment are not likely to gain major market share. Nevertheless,
the existing market share is large enough to bring in high sales for the organization. The
home appliances segment is a cash cow for Samsung. The company has able to reach
a large number of regions in the global market, selling its various home appliances in
different areas. The management has recognized the potential for establishing a strong
hold in the domain of global home appliances, which has led to the decision to promote
these items across the international market. The main area of consideration which
makes the home appliances by Samsung a cash cow is that this business unit doesnt
warrant a high investment in terms of creativity and offering new technology frequently
(Grobart, 2014). Samsung has invested in creating new product features though, which
has helped in achieving a greater market share. For instance the refrigerator carries the
feature of adjustable temperature in different compartments, making it an appealing
product for the target market. Based on these factors, the home appliances can be
identified as a cash cow for the organization.

Stars

Products or businesses that are considered as star in the BCG matrix are a part of
evolving industry which offers growth prospects to the businesses. As a result,
companies are interested to invest in developing these units further to gain a larger
market share and attain a stronger position in the market. The product manufactured by
Samsung that can be seen as a Star is the mobile phones and tablets. In an effort to
deal with the competitive pressure from other mobile phone manufacturers, Samsung
has invested its resources to expand its market presence. The management has been
able to achieve this objective, making the company one of the major mobile phone
suppliers in the international market (Gibbs, 2015). The mobile phone industry is

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marked by rapid technological changes which indicates that the market is in the growing
phase. The introduction of new technology in the market results in the incorporation of
new features in the mobile phones and tablets.

Samsung manufactures new mobile phones, adding new features to make it more
appealing for the target market. The plasma television is also a star for the company as
it has been able to attain large sales in the global market. Arthur (2012) has recognized
the strong hold the company had over the TV market, suggesting that investment in
smart TV can become a source of long term profits for the company. Similar to the
mobile phones, the technology used in TV production and design is evolving, propelling
the companies to adapt.

Question Marks

There are products that formulate a part of the industry that is still in the phase of
development, yet the organization has not been able to create a significant position in
that industry. The small market share obtained by the organization makes the future
outlook for the product uncertain, therefore investing in such domains is seen as a high
risk decision. The investment can either make the business grow into a star, or the
product can remain at the position of question mark, bringing no significant sales to the
firm. In the segment of IT, Samsung products such as printer are not able to be a main
source of earning for the company. Improvements can be made to make the printer and
IT related products obtain a larger market share.

Another example of a product that can be identified as a question mark for Samsung is
the Galaxy 7. The product has gained negative reputation due to the battery becoming
overheated and in some cases leading to sever consequences for the phone users
(Spence, 2016). Furthermore, the issue with the battery is likely to result in recall of the
Galaxy 7 that has been purchased by the consumers, owing to the safety issues of the
battery. The negative brand image has made the future sales of Samsung Galaxy range
uncertain as the consumers may refrain from purchasing a mobile phone that is viewed
as carrying the risk of explosion while being charged. This problem can create a

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challenge for Samsung, however proper remedial action can bring the Galaxy 7 back
into the category of stars if the situation is handled appropriately. The individuals who
have purchased the product were advised by the company to switch off their Galaxy 7
and replace it with another mobile phone model. Despite this offer, the negative publicity
that has been created due to the cases of battery explosion has made the position of
this product weak in comparison to other Samsung mobile phones.

Dogs

The BCG matrix has further identified those business units that have become a source
of continuous loss for the organization. Moreover, these business units or products are
not likely to offer any significant growth to the organization in terms of sales or market
share. Such future prospects makes this category a focal point for liquidation. Galaxy
smart watch is one such example in this regard as the product has not been able to gain
adequate attention from the target market. The smart watch has some evident flaws in
the functionality, making it a low preference for the market. For instance, the
requirement of charging the watch on a daily basis can be seen as an unappealing
aspect. Moreover, the bulky appearance of the watch has resulted in low popularity of
the product among the potential buyers (Rogowsky, 2013). Even though interactive
devices and smart technology is a developing area, Samsung smart watch has failed to
take benefit from the growing industry

Five generic strategies have been used by the Samsung company

Industry Rivalry

This element is especially significant for Samsung as the other White Goods
multinationals like LG, Nokia, and Motorola not to mention Apple are engaged in fierce
competitive rivalry. Indeed, Samsung cannot take its position in the market for granted
as all these and other domestic white goods players operate in a market where margins

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are tight and the competition is intense. Apart from this, Samsung faces the equivalent
of the Cola Wars (the legendary fight for dominance between Coke and Pepsi) in
emerging markets like India where Samsung has to contend and compete with a
multitude of players domestic and global. This has made the impact of this dimension
especially strong for Samsung.

Barriers to Entry and Exit

The White Goods industry is characterized by high barriers to entry and low barriers to
exit especially where global conglomerates like Samsung are concerned. Indeed, it is
often very difficult to enter emerging markets because a host of factors have to be taken
into consideration such as setting up the distribution network and the supply chain.
However, global conglomerates can exit the emerging markets easily as all it takes is to
handover and sell the business to a domestic or a foreign player in the case of declining
or falling sales. This means that Samsung has entered many emerging markets through
a step-by-step approach and has also exited the markets that have been found to be
unprofitable. This is the reason why white goods multinationals like Samsung often do
their due diligence before entering emerging markets.

Power of Buyers

The power of buyers for white goods makers like Samsung is somewhat of a mixed bag
where though the buyers have a multitude of options to choose from and at the same
time have to stick with the product since they cannot just dump the product, as it is a
high value item. Further, the buyers would have to necessarily approach the companies
for after sales service and for spare parts. Of course, this does not mean that the buyers
are at the mercy of the companies. Far from that, they do have power over the
companies, as most emerging market consumers are known to be finicky when deciding
on the product to buy and explore all the options before reaching a decision. This
means that both the buyers and the companies need each other just like the suppliers
and the companies, as we shall discuss next.

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Power of Suppliers

In many markets in which Samsung operates, there are many suppliers who are willing
to offer their services at a discount since the ancillary sectors are very deep. However,
this does not mean that the companies can exert undue force over the suppliers as
once the supply chain is established; it takes a lot to undo it and build a new supply
chain afresh. This is the reason why white goods makers like Samsung invariably study
the markets before setting up shop and also take the help of consultancies in arriving at
their decision.

Threat of Substitutes

This element is indeed high as the markets for white goods are flooded with many
substitutes and given the fact that consumer durables are often longer term purchases,
companies like Samsung have to be careful in deciding on the appropriate marketing
strategy. This is also the reason why many multinationals like Samsung often adopt
differential pricing so as to attract consumers from across the income pyramid to wean
them away from cheaper substitutes. Further, this element also means that many
emerging market consumers are yet to deepen their dependence on white goods and
instead, prefer to the traditional forms of housework wherein they rely less on gadgets
and appliances. However, this is rapidly changing as more women enter the workforce
in these markets making it necessary for them to use gadgets and appliances.

Stakeholders

This is an added element for analysis as the increasing concern over social and
environmentally conscious business practices means that companies like Samsung
have to be careful in how they do business as well as project themselves to the
consumers. For instance, white goods makers are known to decide after due
deliberation on everything from choosing their brand ambassadors to publicizing their
CSR (Corporate Social Responsibility) initiatives.

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Conclusion

As the diagram above indicates the relative strengths and the weaknesses of each
element, we can now conclude this analysis with the theme that as the global economy
integrates and more emerging markets open up, companies like Samsung are at an
advantage because they have already established themselves in many markets.
However, it must also be noted that each market is unique and hence, Samsung must
not adopt a one size fits all strategy and instead, must approach each market differently.
In conclusion, Samsung can take pride from the fact that being an Asian conglomerate,
it has managed to break into and hold its own against many western multinationals that
have been in this business for decades.

VISION AND MISSION OF SAMSUNG Welcome to SAMSUNG.

For over 70 years, SAMSUNG has been dedicated to making a better world through
diverse business that today span advanced technology, semiconductors, skyscraper
and plant construction, petrochemicals, fashion, medicine, finance, hotels and more.
Our flagship company, SAMSUNG Electronics, leads the global market in high-tech
electronics manufacturing and digital media.

Through innovative, reliable products and services; talented people; a responsible

approach to business and global citizenship; and collaboration with our partners and
customers, SAMSUNG is taking the world in imaginative new directions.

Vision and Mission

SAMSUNG is dedicated to developing innovative technologies and efficient processes

that create new markets, enrich people's lives, and continue to make Samsung a digital
leader.

Vision

Samsung is guided by a singular vision: to lead the digital convergence movement.

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We believe that through technology innovation today, we will find the solutions we need
to address the challenges of tomorrow. From technology comes opportunity-for
businesses to grow, for citizens in emerging markets to prosper by tapping into the
digital economy, and for people to invent new possibilities.

Its our aim to develop innovative technologies and efficient processes that create new
markets, enrich peoples lives and continue to make Samsung a trusted market leader

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 worlds 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.

Mission

Everything we do at Samsung is guided by our mission: to be the best digital-

Company.

N R INSTITUTE OF BUSINESS MANAGEMENT

Samsung grew into a global corporation by facing challenges directly. In the years
ahead, our dedicated people will continue to embrace many challenges and come up
with creative ideas.

Goal

Samsung plans to reduce its GHG emissions intensity normalized by sales (metric
tonnes of CO2 per KRW 100 million) by 50% until 2013 based on the level of 2008. Also,
the company plans to reduce the GHG emissions by 24% compared to BAU (business
as usual) by 2015 to meet the Korean government's mid-term GHG reduction target and
policy.

The reduction target covers all production sites in Korea only, since this represents
almost 90% of global GHG emissions in the company.
Samsung's goal is customer loyalty.

N R INSTITUTE OF BUSINESS MANAGEMENT