A. Executive Summary This conventional paper is focused about Samsung Gadgets Co., and it has 4 major product lines.
Digital Mass media line generates digital consumer electronics for the two personal and business uses. Telecommunication range produces selection of mobile phones and provide to companies, LCD series produces flat screen screens used on Tv sets, cellphones and computers. Last, semiconductors manufacturer product line produces memory chips suited for computers and cell phones. For every single product lines, we are talking about their history, information of achievement, risks and opportunities, and recommendations.
Lastly, we gives recommendations with regards to how the company should develop itself to get more attractive to investors. N. Introduction Korean was founded in 1938 and they are located in Seoul, South Korea. The founder’s name is Byun-Chull Lee. “Samsung means “three stars in Korean language. It started out as a trading export firm. In 69, they became Samsung Electronics Co. And now it has become one of many largest technology companies famous (Samsung Gadgets, 2011). It truly is most known for its range topping products, the Galaxy smartphone and its FLATSCREEN screens.
Samsung korea became a publicly traded organization in 2k. It has 4 major lines of business, Digital Multimedia, Telecommunications, FLATSCREEN, and Semiconductors. C. 4 Lines of Business 1 . Digital Mass media Digital media is the occupation that consists of all of Samsung’s digital consumer products, both equally home and personal use. These products include, computers, MP3 players, cameras, televisions, and home appliances. Samsung puts forward innovative designs, select world-leading products, and electric power efficient items. Digital press consisted of 37% of all sales in 2010 (Sustainability Report, 2012).
The samsung company Distribution Funnel
Unsurprisingly from the chart below can be was the most Samsung’s product sales. In the 70’s, Samsung announced its first black and white-colored televisions, washing machines, refrigerators, and by the end of the decade color televisions. Inside the 1980’s, Samsung korea was marketing air conditioners, computers, and the planet’s smallest video tape recorders. Since the 1990’s, Samsung’s creativity boomed. They will came out with the world’s first digital television set, the world’s first Blueray disc person, the world’s first HI-DEF camcorder, as well as the world’s slimest television (About Samsung, 2012).
Samsung also led the home entertainment business into the 3D IMAGES market. Digital media’s record of success is definitely significant. Its revenue numbers possess increased by about 4 billion dollars USD. Sadly, the profits are extremely low in comparison to its revenue. This is due to Samsung’s high expense in research and development. You can see the between sales and profits in the chart shown below. The biggest exposure to possible the digital media line of business is whether the large investments in r and d will pay away against the competing goods.
Many electronic companies invest heavily in creating better products and imbedding innovative technology in these people, so the competition is very high for this profession. The only way for any company to be successful is getting its products in the many consumers’ hands. So that is the reason why Samsung spends about 6. 2% of total revenue into research and development (Sustainability Report, 2012). This enables Samsung to make certain its products are of the best quality, have the state-of-the-art technology, present convenient and advanced features, and have any design.
R and d will always be one of the biggest investments of a successful technology company. Korean should continue its excessive investments to secure its place as the best in technology and creativity in this industry. Since Samsung is a global leader in technology, it should use this advantage to lead the rest to the next level of innovation. Samsung has recently lead other folks in the THREE DIMENSIONAL home entertainment business now it includes the opportunity to get further and create more advanced products that will lead the consumers into a more advanced and convenient way of living. 2 . Telecommunications
Samsung Telecoms is one particular important distinctive line of Samsung Consumer electronics. It is referred to as Samsung portable and wireless, which provides various personal and business marketing and sales communications productions, just like mobile phones, tablets, and wireless infrastructure tools (Samsung, 2011). In 1988, Samsung korea Electronics merged with telecommunication, which then started to be a product line of Samsung Electronics (Company record, 2012. ). In 1986, Samsung korea released its first pre-installed car phone, but it failed due to the poor products’ characteristics. But , the corporation did not give up on telecommunication product line.
In 1992, Samsung produced its own mobile phone systems. In 1997, they will developed world’s smallest CDMA mobile phone (Company history, 2012). Samsung started to be the leader inside the personal marketing communications service market. Samsung Electronic devices has been powerful since the organization expended business into global market. Korean took very first step and exported its personal phones to Sprint, a north american CDMA jar, and then Korean extended in GSM market. The company’s cell phones are compatible with the networks of leading wi-fi service providers, which includes AT&T, Run Nextel, T mobile USA, and Verizon Marketing communications.
It has driven Samsung’s growth in the telecommunications industry. The bestselling Galaxy S cell phones was launched in 2011. It has been marketed more than twenty million models around the world. News, Samsung Consumer electronics was rated the seventeenth of global five-hundred companies by Financial Moments (Samsung total annual report, 2012). By end of first quarter 2012, Samsung Electronics made up 330 , 000, 000 or 21 years old. 2% of worldwide require of mobile phones (Samsung gross annual report, 2011). (See Fig. 1 . ) Fig. 1 . Samsung Mobile phone Market stocks in 2011: nineteen. 9% (Samsung) The major risk was obvious lawsuits.
Korean Electronics offers involved with lawsuits in more than 10 countries between Samsung and Apple (Wingfield, 2012). Opportunity for Korean is that alliance with more service providers, which would help Samsung korea Telecommunication to expand their business and market share. The recommendations for Samsung korea telecommunication is the fact focus on one of a kind technology design. I think that will not only support Samsung prevent lawsuits, although also increase industry share and customer vips. 3. Samsung’s LCD Display A liquid amazingly display (LCD) is a toned screen keep an eye on that is made of a thin water crystal part in the middle.
LCDs are used in lots of different applications such as, television sets, mobile phones, laptops and computers. LCD display has been among the best-selling products of Korean, yet that still confronts risks and desires some improvement to attract more customers (Mote, Stansell, & Greenland, 2010). Mote ou al. (2010) state that Samsung korea created LCD technology 20 years ago. The LCD panel was initially used for laptop computers and revealed at a global trade celebration in The japanese. The first LCD display for laptop computer was 9. 3 inches. In 2002, Samsung introduced a 54-inch digital LCD television monitor-the major LCD tv in the world during those times.
Today, Samsung is the most well-known LCD machine in the global market (Mote, Stansell, & Greenland, 2010). According to “About Samsung (2012), The samsung company sustained the very best profit among LCD manufactures over the world in 2007. Last season, Samsung started to be the first company that sold more than ten mil LCD tvs in the first half of the yr and more than five , 000, 000 LCD solar panels per month. Epperson shows that, total segment revenue of LCD was about sixty two. 6 trillion U. S dollars in 2011. There were about 330 million shares, plus the price was 1, 067 dollars every share.
The samsung company has also managed the largest market share in the global LCD televisions from the initially quarter of 2011 for the second quarter of 2012 (About Samsung, 2012, Epperson, 2012). (Data gathered from www. statista. com) Although the record of accomplishment of LCDs seems seriously outstanding, Korean is facing many dangers. One of the dangers that Korean confronted was about LCD obvious infringement. In 2008, Well-defined filed the suit against Samsung inside the U. S i9000. District The courtroom for breaking its several patents associated with a technology to improve the picture quality of LCDs. In that case, Sharp extended the match to Southern region Korea in December of the identical year.
Samsung fought in the same month with lawsuits in Japan and the U. S. For some reasons, Korean won above Sharp in Japan, although lose the case in the U. S. In 2009 US International Trade Percentage began to stop Samsung FLATSCREEN products. Samsung korea also faces price conflict from other serious competitors including LG, Sony, Toshiba, and Panasonic. In Standard & Poor’s Equity Research, Samsung’s LCD sales are lessening due to the incredibly competitive prices other rivals offer customers (Patel, 2012). Base about “LexisNexis Academic (2012), Korean just create a new technology of LCD referred to as Active-matrix OLED (AMOLED).
This can be another type of smooth panel screen which is incredibly thin and versatile. Samsung announced that it will work with AMOLED to invent a new model of its mobile phone called “Youm, as well as the product will be introduced at the outset of 2013. This is well known as as a glowing opportunity for Samsung korea in the future to enhance its FLAT SCREEN revenues and profits (“Samsung’s flexible, 2012). (Google images) To overcome risks and be more attractive to investors, Samsung korea should obtain LCD obvious protection. For instance , when any LCD design and style is created, The samsung company should register for a license or perhaps trademark to protect the company by copyright.
Samsung also need to focus on Research and Development purchase to create new-technology, new products and discover ways to reduced the production costs, so they can compete on price with other folks. 4. Semiconductors The decision of entering the semiconductor business is essential to Samsung. Byung-Chull Lee, the founder of Samsung, understood how big the high end electronics market would be later on in mid-1970s, and that Samsung has to be an important player. For that reason, he made a decision to form Samsung korea Semiconductor and Telecommunications Co. in 1978.
Nevertheless , South Korea is not enough technological expertise, and that’s if the South Korean government steps in. The Southern region Korean govt required overseas telecommunications equipment manufacturers handy out advanced semiconductor technology, in order for them to gain access to the Southern region Korean market. (Data accumulated from IBIS World) Semiconductor is one of the most successful product lines in The samsung company. The product sales of semiconductor have increased from thirty-two. 6 billion dollars dollars in 2010 to thirty-three. 5 billion dollars dollars this summer. Moreover, it is net income in addition has increased via 16 million dollars this season to forty-eight million us dollars in 2011.
Actually the company’s semiconductor segment consists two key parts: memory space and LSI (Large-Scale Integration). Like the earlier 15 years, Samsung has topped the position in the dynamic random-access memory this year with 42. 2% of shares. Pertaining to the LSI segment, Samsung produces FLAT SCREEN panels to get computer watches and notebook computer displays. This year, Samsung has about $26. 5 million of income from FLATSCREEN panel organization (IBIS globe, 2012). One of the greatest customers to Samsung’s semiconductor product line is Apple, which is lately considering turning to another semiconductor manufacturer.
Shedding this large customer will certainly risk the industry position of Samsung, since it is now towards the top of the semiconductor manufacturing industry. Opportunity for the product line would be the rising demand. There is a developing demand on semiconductor out in the market. Even though the demand of desktop computer systems is reducing, which will impact the sales of memory a part of semiconductors, require of tablets and cell phones is bringing up rapidly, which will lead to an increase in demand of semiconductor (Epperson, 2012). You may still find a lot of rooms to get the revenue of semiconductor to increase.
Increasing development of semiconductor due to its increase in demand may not seem hard in the future. Suppliers are now producing automated development in order to reduce their development cost. Samsung can start enhance semiconductors source to these software, since these parts will boost the with regard to the sophisticated gadgets that control the programs. D. Conclusions and Tips for Samsung Among the important suggestions is technology innovation. Korean Electronics can be described as high-tech business, which supplied support to get innovation in the areas of technology.
Product lines included in other companies about the patent legal cases. Lawsuits have negatively affects on company’s growth. In order for company to maintain sustainability and remain competitive in the industry, we all recommend that the Samsung Gadgets should focus on unique technology designs. By doing so, it will protect the company by getting sued and catch the attention of more consumers. Samsung also needs to increase semiconductors productions by finding for you to cooperate and be a provider to additional smaller electronic companies. Again, the company hould invest more in R&D projects, so it can constructed new technologies and new items in order to compete against its competitors. Elizabeth. References About Samsung. (2012). Corporate account. Retrieved by http://www. samsung korea. com/us/aboutsamsung/corporateprofile/ Epperson, L. (2012). Samsung Digital Co., Ltd. Hoover’s. Retrieved Oct. twenty-seven, 2012, coming from Hoover’s data source. Mote, Deb., Stansell, C. M., Greenland, P. L. (2010). The samsung company Electronics Company., Ltd. In International Listing of Company Histories, 108, 433-440. Retrieved Oct. 27, 2012, from Gale Virtual Guide Library data source. Patel, A. (2012).
The samsung company Electronics. Common & Poor’s Equity Exploration. Retrieved Oct. 27, 2012, from Net Advantage database. Samsung Digital. (2011). FY 2011 Total annual report. Retrieved from http://www. samsung. com/us/aboutsamsung/ir/newsMain. do. Korean. (2012). The samsung company Company history. Retrieved by http://www. samsung. com/us/aboutsamsung/corporateprofile/history04. code Samsung. (2011a). Samsung 2011 annual statement. Retrieved by http://www. samsung. com/us/aboutsamsung/ir/newsMain. carry out Samsung. (2011b). Samsung Telecoms. Retrieved by http://www. samsung korea. com/global/business/telecommunication/productInfo. carry out? tgrygroup=11&ctgrytype=18&b2bprdid=146 Samsung’s flexible AMOLED display codenamed “Youm in the works. (2012, April 11). Kashmir Monitor (India). Recovered Nov. twenty eight, 2012, from LexisNexis Educational database. Durability report. (2012). Global tranquility with people, society, and environment. Retrieved coming from http://www. samsung. com/aboutsamsung/sustainability/sustainabilityreport Wingfield, N. (2012, August 24). Jury prizes $1 billion to Apple in Samsung patent case. The New York Instances. Retrieved by http://www. nytimes. com/2012/08/25/technology/jury-reaches-decision-in-apple-samsung-patent-trial. code? _r=0
