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Profile Of World’s largest Smartphone Maker
From itsinceptionasa small exportbusinessinKorea,Samsunghasgrowntobecome one of the world's
leadingelectronicscompanies,specializing indigital appliancesand media&semiconductors.Today,
Samsung'sinnovative andtopqualityproductsandprocessesare worldrecognized.
The 13th
rankedFortune 500 company have manyimpressive factslikefromthe year2011 till date
Samsung isthe global largestsmartphone maker (IDCanalyze report),leavingbehind AppleInc.
Samsungisalso 2nd largest semiconductor-IDMsuchas chips,salesleader(IHSiSupplianalysisReport).
Theyare alsoa major part of South KoreanEconomy. Strongbrandvalue,diversifiedproductline,
exceptionalinnovation&design are some of the keystrengthof Samsungelectronicstogainhigh
marketshare. Let’slookat the brief profileof thishuge giant.
Company Profile:
The parent companySamsung wasfoundedby Lee Byung-chul in1938. The Koreancompanyhead-
quarterin Suwon,SouthKoreaand KwonOh-hyun,JKShin, BKYoon are the CEO. Samsungrevenue is
estimatedtobe more than$200 billion. In2012, 70% of the SamsungGroup revenue came from
Samsungelectronics.
Operations
SamsungElectronicsCo.Ltd operatesinthree business divisions-consumerelectronicsproducts
division,InformationTechnology& CommunicationDivision,andDevice Solutiondivision.There are
leadingall overthe worldinthe followingsegments:
SamsungTelevision:
In 1970, Black-and-whiteTV (model:P-3202) productionstartedbySamsung-Sanyo.LateronSamsung-
SanyoElectronicswas mergedwithSamsungElectronicsinMarch1977. Samsunghas beenthe world's
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largesttelevision manufacturer since 2006. Withthe launchof 3D Home Theaterin2010, Samsung
became the firstcompanyinthe industryto have the full line of 3D offerings,including3Dtelevision,3D
Blu-rayplayer,3D content,and3D glasses. More than 80% of the TVsin the worldwidesaleswereof
Samsung.
Mobile & Smart Phones:
SamsungElectronicslauncheditsfirstmobilephone in1988, inthe SouthKoreanmarket. Saleswere
initiallypoorandby the early1990s Motorola helda marketshare of over60 percentinthe country's
mobile phone market comparedtojust10 percentfor Samsung.Samsung'smobilephone divisionalso
struggledwithpoorqualityandinferiorproductsuntil the mid-1990sandexitfromthe sector wasa
frequenttopicof discussionwithinthe company.
A revolutioncomesupwith the innovationof Samsung Galaxy S,whichmanyconsideradirect
competitorof the Apple iPhone.ItwasinitiallylaunchedinSingapore,MalaysiaandSouthKoreainJune
2010, followedbythe UnitedStatesinJuly.Itsoldmore thanone millionunitswithinthe first45days on
sale inthe UnitedStates. Theyare generallyregardedas pioneeringthe phablet(Combinationof phone
& tablet) marketthroughthe Samsunggalaxynote familyof devices. The company'sI9000 GalaxyS and
S8500 Wave smartphoneswere the winnersof the 2010 EuropeanEISA Awardsin the smartphone and
social mediaphone categories.
While many otherhandsetmakerstendedtofocusonsupportingone ortwooperatingsystem,
Samsungfor a time keptsupportingawiderrange,like Symbian,WindowsPhone,Linux-basedLiMo,
and Samsung'sproprietary Bada.By2013 Samsunghad droppedall operatingsystemsexceptAndroid
and WindowsPhone.ThatyearSamsungreleasedatleast43 Androidphonesortabletsandtwo
WindowsPhones.ASof 2013, Samsungsmartphones,tablets&laptops have beenable toachieve the
largestmarketshare of nearly 30.4% in the global smartphone segment.
For the marketingstrategyof Samsung,ithas beingreportedthatSamsungisusinga pull & push theory
to create demandfortheirproducts. Theypull the customersthroughtheirstrongpromotional activities
and theyevenpush the retailersby negotiatingwiththem.Due totheirin-houseproductionof critical
electroniccomponentstheyare ina state to decrease theirprofitmargin.Sotheyprovide more profit
marginsto theirdealers.DealersinfavorpreferSamsungproductsmore andadvise customerstooto
preferit.
semiconductor
In 1974, the groupexpandedintothe semiconductorbusinessbyacquiring KoreaSemiconductor,one of
the firstchip-makingfacilitiesinthe countryatthe time.The acquisitionof KoreaTelecommunications,
an electronicswitchingsystemproducer,wascompletedatthe start of the nextdecade in 1980. In
1978, SamsungSemiconductorandSamsungElectronicsbecameseparate entities. SamsungElectric
IndustriesmergedwithSamsungSemiconductor&CommunicationstoformSamsungElectronics,as
before that,theyhadnot beenone companyandhad not beenaleadingcorporationtogether.
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Samsungisalwaysinto manymajor innovationsinsemiconductorsectorbecause of whichtheyalways
dominatedthe market. InFebruary1983, Samsung'sfounder, Lee Byung-chullintendedtobecome
a DRAM (dynamicrandomaccessmemory) vendor.One yearlater,Samsungbecame the third largest
companyinthe worldtodevelopa64kb DRAM. Developmentof world'sfirst64Mb DRAMwas
completed in1992. In 1996, by beginningthe massproductionof DRAM,theydevelopedworld’sfastest
CPU-the AlphaChip.Furthertheyevendevelopedworld'sfirst128MB SynchronousDRAMand 128MB
Flashmemory.
SamsungElectronicshasbeenthe world's-largestmemorychipmakersince 1993. In 2009 it started
mass-producing30nm-classNANDflashmemories.Itsucceededin2010 inmass-producing30 nm-class
DRAMs and 20 nm-classNANDflashes,bothof whichwere the firsttime inthe world.
Apple,Sony,HTC,NokiaandnowevenQualcommare Samsung’smajorclientsforLithiumbatteries,
semiconductors,chips,flashmemory,harddrive andOled(OrganicLightEmittingDiode)displays.
LCD & LED Panels
Samsunghas been world'slargestmanufacturerof LCDpanels since 2002. They were the onlyone who
developed the world'sfirst3DTFT-LCD Monitor. Theyproduced30” TFT-LCD.The visual displaybusiness
of television&musicsystemtogetherhasamarket share of37.22%. LED business(LEDdisplaymodules,
lightengines&LED retrofitlamps) hasa marketshare of 10.2%.
By 2004 Samsungwasthe world's-largestmanufacturerof OLEDs,witha 40 percentmarketshare
worldwide, andasof 2010 has a 98% share of the global AMOLEDmarket.As of 2006, it heldmore than
600 Americanpatentsandmore than2,800 internationalpatents,makingitthe largestowner
of AMOLED technologypatents. SamsungisusingitssuperAMOLEDtechnologyin SamsungWave
S8500 and Samsungi9000 GalaxyS.
In October2007, Samsungintroduced aten-millimeterthick,40-inchLCD televisionpanel,followedin
October2008 by the world'sfirst7.9-mmpanel.OnSeptember6,2013, Samsunglaunchedits55-inch
curvedOLED TV (model KE55S9C) in the UnitedKingdomwithJohnLewis.
In earlyOctober2013, the SamsungCorporationdisseminatedapressreleaseforitscurveddisplay
technologywiththe GalaxyRoundsmartphone model.The pressreleasedescribedthe productasthe
"world’sfirstcommercializedfullHDSuperAMOLED flexible display."The manufacturerexplainsthat
userscan check informationsuchastime andbatterylife whenthe home screenisoff,andcanreceive
informationfromthe screenbytiltingthe device
OtherElectronics:
In 1986, theydevelopedthe world'ssmallest,lightest4mmvideotape recorder. SamsungDigital
cameras& camcordershave a marketshare of 12.1% in2013. In 2009, the companytookthe thirdplace
inthe compactcamera segment.Since then,the companyhasfocusedmore onhigher-priceditems.In
2010, the companylaunchedthe NX10,the next-generationinterchangeable lenscamera.
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Samsungproducesprintersforbothconsumersandbusinessuse,includingmono-laserprinters,color
laserprinters, multifunctionprinters,andenterprise-use high-speeddigital multifunctionprinter
models. OnSeptember2,2014, itannouncedthatit has acquiredPrinterOn,engagedinmobile cloud
printingsolutionsbasedinOntario.
Apart fromthese majorproducts theyalsoproduce DVD/Blu-rayDisc;andstorage devices such
as optical discdrives andformerly harddiskdrives.In1993, SamsungAdvancedInstituteof Technology
(SAIT) developedfirst-everdigital videodiskrecorder(DVD-R). Device solutionswithvertical of memory
businesses(MobileDRAM,mobile storage,&mobile flashmemorydevices)have amarketshare of
41.4%.
In consumergoods vertical, theyare also leadingincomputingdeviceslikecomputers,tablets,
chromebooksetc; Theyare alsointo refrigerators, airconditioners,airpurifiers,washers,microwave
ovens,andvacuumcleaners.In1970, SamsungGroup establishedanothersubsidiary,Samsung-NEC,
jointlywithJapan's NECCorporation tomanufacture home appliances andaudiovisual devices.
Samsungoffersthe latestinnew computertechnologywithqualityUHDmonitors,
sync device capabilities,light&thindesigns,multitaskingandmore. Samsungwasthe leading
Chromebookbrandinthe U.S. in2013, accountingformore than 60% of overall marketshare,according
to NPD.
Apart fromelectronics,Samsungcomprises of more than78 differentcompaniesandaffiliatesinawide
range of businesses likeengineering,advertising,chemicals,hospitality,health,life insurance(world’s
14th
largest), andheavyindustries(2nd
largestshipbuildersin2010).
The growth andbrand value has beenpossible forSamsungbecauseitprovidesdifferentiatedand
qualityproducts towide rangeof customersegments throughinnovation.The innovationhasbeena
keyactivityfuellinggrowthforthe companywith12000 patentsfiled(highest amongstall companies).
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The Strengthof SamsungElectronics isitsabilitytolaunch new qualityproductsinshortspanof time,
adapt quicklyaspercustomerdemandsandabilitytopenetrate ingrowingmarketswithwide range of
productportfolio. The otherimportant strengthintermsof productmix isitssemiconductorbusiness
whichismore like a vertical integrationtoSamsung’sotherproductline andalsosupportsmajorpartof
salesby cateringto external clientslikeApple.
Samsungalsohave a strong distributionnetworkfortheirconsumerelectronics.The products are
cateringto individual customersandbusinesshousesthrough manydiverse channelsviz.;distributors,
directretailers,theirownretail outlets,telecomcompanies andthroughtheirown corporate salesteam
to theirB2B customers.The variouschannelsof distributionprovide flexibilityforthe productto reach
theirconsumers.
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Future Perspective
Samsungare more focusedonsmarterliving bytheirgreattechnology,contentandservices. Imagine a
worldof possibilitieswhereall of yourhome appliancesare connectedtoyoursmartphone,andwith
the one clickon your phone youcan control your home.ThisiswhatSamsung envisioned fortheir
future innovation. They are workingon creatingtheirproductswith atechnologywhichwill enablethem
to connectall of theirhardware to IoT (Internetof Things) device.
On January5, 2015, in Samsung’spublicCESactivities they heldapressconference infrontof 1,700
partnersand mediatounveil itsnextgenerationdevicesandservices.Mr.Yoon(CEOof Samsung) went
on to promise consumersthat all Samsungproductswill be connectedwithIoTwithinthe nextfive
years. Assoftware developerswill be critical inbuildingIoT,Samsungwill investUS$100 millionintoits
developercommunityin2015. Theyare alsointocontinuous advancementsinself-drivingorautomated
vehicle technology.