Transcript Samsung`s Strategic Issues PowerPoint

Marketing Strategy Issues
Become the most valuable electronics brand and the most
important shaper of digital trends
Should Samsung enter the software business?
Samsung must keep heavily interested in R & D and
in new factories across numerous product lines
Samsung needs a constant stream of well
timed hits to stay on top of global competitors
Marketing Strategy Issues
Become the most valuable electronics brand and the most
important shaper of digital trends
Problems:
Three year old Yepp is behind (Japan’s D&M
Holdings Inc and Apple Computer IPod)
Number two in flash card memory
Number three in cell phones, MP3, DVD players
Biggest market share gain on handsets (9.3% to
10.5%) but had to lower prices to get there, profits
dropped by 41%
Marketing Strategy Issues
Become the most valuable electronics brand and the most
important shaper of digital trends continued…
Pro’s:
One of the world’s most fashionable/cool brands
Muscling their way to the top of consumer-brand
awareness survey’s
Best selling brand in TV’s $3000+
Number one in big screen TV's, Dram chips and
microwaves
Marketing Strategy Issues
Should Samsung enter the software business?
Problems:
Executives remain convinced they are better off
collaborating with content & software providers
Sony & Apple have already branched out into
music, movies and games
Samsung is betting billions it can overcome the
odds and stick with core technologies &
manufacturing
Marketing Strategy Issues
Should Samsung enter the software business continued…
Pros:
Great brand image, could allow for quick entry
Plenty of money to invest, debt down to $1.4 billion
from $10.8
In top three of market share for MP3 players, could
add software to go along with it
Marketing Strategy Issues
Samsung must stay heavily invested in R & D and in new factories
across numerous product lines
Problems:
Sunk over $19 Billion into new chip factories, rivals
outsource to keep from tying up capital & making
long term commitments
Money invested into factories could be used in
other areas
Marketing Strategies Issues
Samsung must keep heavily invested in R & D and in new
factories across numerous product lines continued…
Pro’s
Nearly Seven Billion in cash, plenty to
invest
Takes an average of five months to go
from concept to rollout
Controls 55% of $2 Billion market for
NAND flash memory
Marketing Strategy Issues
Samsung needs a constant stream of well timed hits to stay on
top of global competitors
Problems:
Short life-cycle of products
 The price of TV sets has dropped 30% and DVD
players 25%
Harder to market products when demand is not as
high
Marketing Strategy Issues
Samsung needs a constant stream of well timed hits to stay on
top of global competitors continued…
Pro’s:
Employ’s 350 designers, twice as many as five
years ago
Last year Samsung won five Industrial Design
Excellence Awards for digital appliances
Younger designers on a quest to come up with
new must-have products