Operations Management (OM)

Presented to: Mr. Syed Shoaib Nazir

Presented by: Asia Saif Ali, Mujahid Yasin & Saad Bin Khalid
 Table of Contents

• Introduction
• Product / Service description
• Location / Layout
• Process using flow diagrams / overview
• SWOT:
Internal Analysis: Strengths and Weaknesses
External Analysis: Opportunities and Threats
 Table of Contents

• Introduction
• Product / Service description
• Location / Layout
• Process using flow diagrams / overview
• SWOT:
Internal Analysis: Strengths and Weaknesses
External Analysis: Opportunities and Threats
 Introduction
1 March 1938; 79 years ago (1938-03-01)
Founded
Daegu, Japanese Korea

Founder Lee Byung-chul

40th floor Samsung Electronics Building, 11, Seocho-daero 74-gil, Seocho

Headquarters
District, Seoul, South Korea

Area served Worldwide

Lee Kun-hee
Key people (Chairman)
 Introduction

The SPC-1000, introduced in 1982, was

Samsung's first personal computer
(Korean market only)
 Product

Apparel, automotive, chemicals, consumer electronics, electronic

components, medical equipment, semiconductors, solid state
drives, DRAM, ships, telecommunications equipment, home
appliances
Service description
Future Products
 Table of Contents

• Introduction
• Product / Service description
• Location / Layout
• Process using flow diagrams / overview
• SWOT:
Internal Analysis: Strengths and Weaknesses
External Analysis: Opportunities and Threats
Locations of Samsung Factories
Process Flow Diagram
World wide Distribution
Global SCM – Supply Chain Management
Global SCM – Five Criteria
 Global ERP - Enterprise Resource Planning

Process by which Samsung manages and integrates the important parts of its business such as
planning, purchasing, inventory, supply chain, sales, marketing, finance, human resources, etc.
 Table of Contents

• Introduction
• Product / Service description
• Location / Layout
• Process using flow diagrams / overview
• SWOT:
Internal Analysis: Strengths and Weaknesses
External Analysis: Opportunities and Threats
 SWOT Analysis of Samsung
Strengths
• Innovative designs.
• Integration of opensource OS, & software
• Cost & Quality Focused • Low production Cost
• Largest Market Share in Mobile Phone Market
• Too large product diversity (stability on sale)
• Recognized Brand • Strong Brand Reputation
• Environmental Focus
SWOT
Opportunities
• The smartphone market is growing
• Most people use feature phones that make a switch to
smart phone
• The demand for technologically advanced phones
• Strong financial position for future
• The growth of tablet market
• Acquisition of new companies
Weaknesses
• Low-Profit Margin • Damaging Image by Infringement
• Too Large Product Diversity
• Lacking of Own Operating System
• Less Quality than Apple’s
• Heavily Dependent on Consumer Electronics
• Samsung’s Operating System Android has Many Lacking
• Large Dependence on Other Software
Threats
• The large number of competitors
• Strong Competitors like Apple, HTC etc.
• Chinese Competitors are Gaining Advantages
• People are Looking for Better Quality Nowadays
• Failing One Product Affect Another.
• Threats of Chinese Products in the Market
 Strengths (Internal Factors)
1. Innovative designs. Samsung offers a lot of handsets with different types of designs, unlike its nearest
competitor Apple IPhone.
2. Integration of open source operating system, and software. The strongest strategy they took was adaptation of
the open source technology like Android Operating System. It offers a lot of features, options, and software.
Taking this strategy into account, Samsung grabbed huge competitive advantages over other mobile
manufacturers.
3. Cost & Quality Focused. When it is about the production costs, Samsung reached the economies of scales. It
outsourced its production to different countries that has competitive advantage in producing quality products at
small costs.
4. Too large product diversity. Samsung offers different types of products to its customers. In return, the profit it
makes is very much stable. When the sale of one product goes down, other products may be experiencing
increase in sales.
5. Low production Cost. Low production costs allow Samsung to offer its products at lower price than its
competitors do.
6. Largest Market Share in Mobile Phone Market. By applying the above strategies, Samsung has been able to grab
largest market shares in the market.
7. Recognized Brand. Without any doubt, Samsung is one of the most recognized brands in the world.
8. Strong Brand Reputation. Until now, it has been achieving strong reputation of offering quality products at low
price.
9. Environmental Focus. It has been fulfilling responsibilities towards the environment. They provide energy
efficient products.
 Weaknesses (Internal Factors)
1. Low-Profit Margin. It always keeps low profit market. There are lots of competitors in this industry. So, keeping
the customers they must offer the products at low price.
2. Damaging Image by Infringement. Few of the recent incidents affected its brand image negatively.
3. Too Large Product Diversity (lack of focusing on specific one). It takes a lot of work if the product portfolio is
large. It cannot be possible to give concentration to each product with utmost importance.
4. Lacking of Own Operating System. Like Apple IPhone, it does not have its own operating system.
5. Less Quality than Apple’s. When it comes to the quality, Apple is doing better in the handset offering.
6. Heavily Dependent on Consumer Electronics. Dependence on consumer electronics is higher than other
manufacturers.
7. Samsung’s Operating System Android has Many Lacking. Though they have been trying hard to make the Android
more qualitiful, but still it lacks perfection.
8. Large Dependence on Other Software. It cannot, solely, provide all of the software needed to support its devices.
It depends on third parties.
 Opportunities (External Factors)
1. The smartphone market is growing. People are becoming more tech dependent, and smartphone became the
most used communication tool in this era. As a result, the demand of smart phone is increasing.
2. Most people use feature phones that make a switch to smart phone.
3. The demand for technologically advanced phones is growing. As the smart phones are becoming the near
alternative of computers, the demand of smartphones is increasing.
4. Strong financial position for future. As the Samsung has been doing business for a long period of time, it has been
able to secure a strong financial position in the market. As a result, it will be able to make more investment in the
future.
5. The growth of tablet market. The growth of table market is in negative phase for which these users will be
switching to smart phones.
6. Acquisition of new companies. Samsung has been acquiring companies. It is ensuring its future growth. Recently,
Samsung bought the audio giant Harman for $8 billion. Also, it acquired Viv, an AI platform from the makers of
Siri and completed the acquisition of NewNet Communication Technologies (Canada), Inc. recently.
 Threats (External Factors)
1. The large number of competitors. The mobile market is saturated. The Samsung has a lot of competitors in the
market, the number is also growing.
2. Strong Competitors like Apple, HTC etc. It has strong competitors like Apple, HTC, Lenovo, and Xiaomi Mobile. It is
the biggest threat for Samsung.
3. Chinese Competitors are Gaining Competitive Advantages. As the Chinese companies can product products at low
price and they can also give high quality, people are accepting those brands spontaneously.
4. People are Looking for Better Quality Nowadays. So, if there is any question of quality, people will be switching to
the companies who give better qualities.
5. A Large Number of Products, Failing One will Affect Another. As the Samsung has a large portfolio, it has a high risk
also. If any product do harm to the customers, it will affect the brand image and therefore, will grow negative
effect to others.
6. Threats of Chinese, Taiwanese, Products in the Local Market.
 Recommendation

SWOT analysis of Samsung showed that it has many strengths

against its 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 be a stronger organization in
future.
Thank You!