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
Samsungexpands 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 insales by 2010, with income before
tax of around US$25 billion. Total assets are expected to reach in excess of US$280
billion. the 21st century with his "New Management" declaration that encompasses
intellectual capital, 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
Samsungexpands 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.
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, andthe countrieswhere 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 largestlife 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, marketing, 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 Interbred Corporation as the
fastest growing global brand.

Commitment to Human 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.

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 productsfrom memory chips that help
businesses store vital knowledge to mobile phones that connect people across
continents have the power to enrich lives. And thats what making a better global
society all is about. Companys 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, were 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 excellenceand an unfaltering commitment to develop the best
products and services on the market. Change In todays fast-paced global economy,
change is constant and innovation is critical to a companys 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.

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.

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.

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, artifact architecture and staff.

Weaknesses:

Lack in artifact separation. Different models at assorted amount points. Centermost on

accumulation bazaar instead of alcove markets. Not actual user affable design.

Opportunities:

Differentiate its account from competitors. Offer artifact 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.

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 Samsungs 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
enable ditto 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 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.
As the man passes through different scenes, Samsung products 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
yeara 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
smartphones 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.