The Samsung group

Samsung (www.samsung.com) is one of the worlds biggest multinationals.Founded in

1938 in South Korea.It is currently chaired by Kun-Hee who also acts as its CEO.The
group has multiple affiliated companies.each acting independently,covering
electronics,engineering,hotels,communications and a host of other activities.Samsung
also has academic and educational interests including Samsung Human resources and
Samsung fashion industries.It has over 200 overseas operations in over 60 countries split
into 3 core businesses electronics,finance and trade and services.Its essential financial
details are given in table 1

Table 1 The Samsung group figures (UD $billion)

Figure 1997 2006

Net sales 96.1 158.9

Total assets 111.8 280.8
Total liabilities 96.5 181.7
Stockholder equity 15.3 99.1
Net income 0.29 12.9

Employees (000s) 175.000 254.000

Two of its target affiliate companies are Samsung Corporation and Samsung electronics.

Samsung Corporation

Founded in 1938 as Samsung trading its main business is in trading,construction,housing

development and the internet.It is one of Koreas leading overseas businesses and was
designated by government as the 1st trading company (GTC)IN 1975.In 2006 it has a
turnover of US $158.9 billion and employed 254,000 people worldwide.In 1996 Samsung
corporation merged with Samsung engineering and Construction and added retailing to its
existing business portfolio of trading and clothing manufacturing.After spinning off its
hypermarket stores in a joint venture with Tesco UK.it now has 3 major business
groupings,trading,construction and housing development.With the advent of the
internet,Samsung became the largest online shopping market in Korea and industry
specific e-market places for chemicals and seafood products.it also operates an award
winning online catalogue trading system and a market intelligence system for the export
of industrial and commodity goods.
Operating from overseas production sales and branch offices (table 2)the trading group is
involved in a wide range of business projects worldwide. The companys main exports
include semiconductors,plants,chemicals and textiles.Another part of the group exports
energy,chemicals and machinery. In addition to international trade the division carries out
project engineering,organizing business,natural resources development and investment in
privatization projects for developing countries as well as promising start ups.
The construction group carries out various construction,civil engineering industrial plant
and land development projects as well as nuclear process plant construction one of its
most notable achievements was the construction of the worlds tallest building the
Petronas Towers in Kuala Lumpur,Malaysia.

Table 2 location of production,sales and branch offices.

production sales Branch offices

North America North America Middle and South America

Europe Europe C15

China China China

Southeast Asia Southeast Asia Middle east Asia and Africa

Middle and south America Middle and south America

South West Asia Japan

C15

Middle east Asia and Africa

Samsung Electronics

Samsung electronics has more than 54,000 staff operating in 50 countries.Samsung

electronics and its affiliates manufacture a vast range of electrical and allied products
including television and audio equipment,video,CCTV,home appliances,phones,electrical
parts and components,next generation memory chips,colour TV picture tubes and glass
bulbs as well as developing computer systems.Samsungs affiliates are independent
companies but work together to produce Samsung products.
Samsung electronics emerged as a global enterprise through projects with leading
overseas companies along with technology transfer arrangements and joint
investments.Based on open management and the desire to bring the world together
Samsung electronics world businesses in their own right make products which will help
people have rich and more abundant lives.some of the more recent strategic alliances are
outlined in table 3
The Samsung group is a major world player including in its portfolio many consumer and
business to business products and services at the cutting edge of technology.
Samsung strategic alliances since Febuary 2005
Partners Date Areas of cooperation
Nokia April 2007 Co develop technology for hand sets and DVB H
Standardization solution
Limo Jan 2007 Establish a joint venture for developing a linus
platform(Samsung
electronics,vodafone,Docomo,Motorola and
NEC)
Alcatel Oct 2006 Cooperate on satellite DVB H

Sony (54 CD) July 2006 Jointly invest in 8th generation LCD line
(2200mm*2500mm motherglass)
IBM March 2006 Co-develop and market technologies for
industrial printer solutions
Intel and microsoft March 2006 Co develop UMPCs

Discovery Sept.2005 Cooperate on high defination contents

Salavarani July 2005 Co-develop new built in products combining

household electronics and furmiture
Sun microsystems July 2005 Cooperation in solution business and next
generation business generating systems
Cowad July 2005 Supply access gateways

Lowes July 2005 Supply household electronics to 1,100 Lowes

stores
VDL Feb 2005 Cooperate in commercialization of terrestial
DMB

Case discussion questions

1. Identify and describe what you think are the reasons for Samsungs different market
entry strategies.

2,Samsung has utilized numerous market entry modes in its global expansion.Identify the
product/market grouping under each entry mode and what you think are the reasons for
this.

3. Identify what evolution is likely to take place in Samsungs market entry strategies in
the future and give reasons for your answer.