STRATEGIC REPORT

Strategic Report - Samsung Mobiles

Strategic Report - Samsung Mobiles

Introduction

The paper aims to emphasize on the Strategic Report regarding one of the world`s leading mobile manufacturers - Samsung. Industry analysis, SWOT, PESTLE, Porter's 5 Forces framework, BCG matrix along with Ansoff's growth vector matrix with respect to Asian market (Emerging Market) are discussed in the paper. Samsung is a South Korean company, has its headquarters in Seoul with more than employs 88,000 employs in 46 countries all over the world. Its turnover for 2009 is 67 billion dollars. Samsung is a global company present on 5 continents. For maintain its position on the market today, Samsung uses a simple method. The company uses existing technology, alters, improves and reduces costs production. In addition, the company also sells components it manufactures its competitors. Samsung has specialized in several sectors ranging from construction to petrochemicals.

Samsung may boast different titles including the world's largest manufacturer of memory chips and liquid crystal displays or second world producer of mobile phones after Motorola dethroned in 2007. To maintain its position, the giant South Korean electronics will however continue to develop new engines of growth according to the Samsung Economic Research Institute (Dyson, 2000, pp. 5 - 11). For the moment, the company focuses on diversified sectors such as memory chips, system LSI, hard drives, LCD monitors, digital televisions, printers, air conditioning systems remotely controlled and communication technologies. In terms of DRAM chips, the company also seeks to extend its activities to non-computer applications such as mobile phones and video game consoles in anticipation of strong growth in these areas, it is already a major graphic memory chip suppliers to manufacturers of consoles in 2006.

In the area of mobile communication technologies, Samsung has chosen the development of WiBro (Wireless Broadband). After recognition technology as an international standard, the company entered into an agreement for the commercial use of the WiBro United States, Brazil and Croatia in 2007, discussions are underway for the implementation of technology in 9 other countries. According to ETRI (Electronics and Telecommunications Research Institute), the marketing of WiBro could generate gross output equivalent to 13.8 billion with a profit of 5.8 billion euros per year (Middleton, 2003).

After gaining a dominant position on the market for memory chips and electronic circuits, Samsung also invests in the printer market. The company is in fact the second largest manufacturer of laser printers in the world in 2006 and holds 12.7% market share in this area in 2007. Finally, Samsung Electronics recorded a growth of 370% of its demand for air conditioning during the summer of 2007 and stresses the importance of this sector in its production strategy. Samsung Electronics should also continue its settlements in R & D centers abroad. The company should expand its R & D for mobile phones and home automation applications (particularly in television) and open a research center in Warsaw (Dyson, 2000, pp. 5 - 11).

Background

The excellent brand image of Samsung is the cornerstone of its success in the ...