AGENDA

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AGENDA

• History of Samsung smartphones
• SWOT Analysis
• Distribution Strategy
• Competitive Advantage
• Testing of Hypotheses
• Analyses of Results
• Net Takeaway
• Interesting Trivia

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History of Samsung smartphones
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History of Samsung smartphones
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History of Samsung smartphones
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SWOT Analysis

• Strengths
• Hardware integration with many open source OS and
  software
• Able to market the brand through innovation,
  design and multiple sponsorships
• High market share in mobile smartphones and its
  continual growth
• Excellence in engineering and producing hardware
  parts and consumer electronics
• Diversification and differentiation of product
  line to meet changing customer needs
• Practice good leadership theory

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SWOT Analysis

• Weaknesses
• Patent infringement
• Low profit margin
• Main competitors are also large scale buyers
• Opportunities
• Growing Indias smartphone market
• Growing mobile advertising industry
• Growing demand for quality application processors
  
• Growing tablets market
• Varying products in existing line of business

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SWOT Analysis

• Threats
• Rapidly changing technology
• Regulating price wars
• Saturating smartphone markets in developed
  countries
• Declining margins on hardware production
• Facing low cost competition from China (emulation
  mobile phones)
• Handling legal war with Apple and Nokia

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Distribution Strategy
Companys manufacturing units (Noida and Chennai)
CF Agents (one in each state)
Franchised Outlets
Retail Chains
Big Retailers
Distributers
Digital Plazas
Digital Homes
Small Dealers/ Retailers
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Competitive advantage

• Products
• Technology driven niche products
• Wide range of products
• High brand value
• Resources and Facilities
• Strong infrastructure
• RD facility at one single location thus
  exercising absolute quality control
• Financially strong and large resources at
  disposal
• Horizontal and vertical integration
• Economics
• High investment for research development
• Higher economies of scale and scope
• Higher yield than most competitors
• Best Practices
• Non-traditional human resource practices based on
  meritocracy rather than seniority
• Attractive organizational hierarchy in terms of
  pay scale, bonuses and incentives yielding better
  output

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Testing of hypotheses

• List of hypotheses
• Samsung has the highest brand awareness in the
  smartphone category
• Samsung smartphones enjoy maximum customer
  satisfaction
• Samsung smartphones have the best battery life
• Sampling details
• Total number of respondents 50
• Process of simple random sampling followed
• Target group
• Approximately within the age group 18 35
• Preferably smartphone user (questionnaire filters
  them out)
• Mostly peers, friends and ex-colleagues
• Graphs
• Pie charts
• Bar graphs

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Analysis of results
Hypothesis 1 Samsung has the highest brand
awareness in the smartphone category
Thinking about smartphones, Samsung is the brand
which comes to mind most often
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Analysis of results
Hypothesis 1 Samsung has the highest brand
awareness in the smartphone category Of
the 65 of respondents who currently uses a
smartphone, nearly half of them owns a Samsung
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Analysis of results
Hypothesis 1 Samsung has the highest brand
awareness in the smartphone category Of
the current non-users, though Samsung is the
brand majority of them would opt for, interesting
insights observed on comparing Nokia and Apple
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Analysis of results
Hypothesis 2 Samsung enjoys maximum customer
satisfaction in the smartphone class
Nearly half the respondents believe that Samsung
smartphones give the best value for money
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Analysis of results
Hypothesis 2 Samsung enjoys maximum customer
satisfaction in the smartphone class Of
the positive satisfaction segments, Samsung fares
marginally better than the rest in After Sales
Service rankings
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Analysis of results
Hypothesis 3 Samsung smartphones have the best
battery life Majority of respondents
feel that battery life is most important while
buying a smartphone
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Analysis of results
Hypothesis 3 Samsung smartphones have the best
battery life Having asked the
respondents to rate various smartphone aspects
across four competitive brands, Apple fared
better than Samsung when it came to battery life,
in terms of positive satisfaction segments
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Net Takeaway

• Samsung has the highest brand awareness in the
  smartphone category
• Samsung smartphones enjoy maximum customer
  satisfaction
• Samsung smartphones do not have the best battery
  life

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Interesting Trivia

• In Korean the word Samsung means three stars.
  The founder of the Samsung Group wanted to
  indicate that the company was big, powerful and
  numerous.
• Since 1993, Samsung Electronics has been the
  largest producer of memory chips in the world!
• Lee Byung Chull founded Samsung in 1938 as a
  trading company that dealt in local groceries and
  had 40 employees. At that point of time it used
  to produce noodles as well!
• Samsung's construction division built the Burj
  Khalifa, which is the tallest building in the
  world.
• Samsung Electronics has 370,000 employees
  worldwide. (Apple has 80,000. Microsoft has
  97,106. GE has 305,000.)
• Samsung says it paid those employees 14.5 billion
  won, or 12 billion.

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Interesting Trivia

• Samsung accounts for 17 percent of Korea's Gross
  Domestic Product!
• Samsung spent over 4 billion in advertising last
  year, plus an additional 5 billion in marketing.
  Its ad budget dwarfs everyone else.
• Samsung's net sales for 2011 were 247 billion.
  Samsung's electronics division sales were 179
  billion. In calendar 2011, Apple did 127.8
  billion in sales.
• Samsung Electronics' profit last quarter was
  8.27 billion, much of it from smartphones. For
  comparison, Google's operating profit last
  quarter was 3.4 billion!
• Samsung shipped 215.8 million smartphones last
  year, which is more than the next three
  smartphone sellers (Apple, Nokia and HTC)
  combined!
• Samsung lists 145 products on its web site under
  the "cell phones" category (Apple has three
  phones in two different colors.)!