Samsung Electronics Co., Ltd. Essay

Samsung Group is a South Korean multinational conglomerate company which headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses under Samsung brand including Samsung Electronic which is the world largest electronic company. It is one of the world’s largest conglomerate with an annual revenue of US$ 220.1 billion in 2010.Samsung has been the world’s most popular consumer electronics brand since 2005 and is the best known South Korean brand in the world. Samsung Electronic has proven to be the one of the most prestigious technology company by launching of the first 3D TV in March 2010 at a New York event and partnered with Dreamworks Pictures and this had a major impact on the

to integrate this technology into its products, but more firms will soon follow. Senior executives at

Rivalry (high) – Leading TV brands including Sony and Samsung have strong presence in the market. They adopt vertical-integrated business model by investing in technology and manufacturing key TV components such as

SAMSUNG Electronics Co. is a South Korean multinational electronic information technology company having headquarter in South Korea. Samsung Electronics is the world’s larger mobile phone maker and world’s second larger semiconductor chip-maker.

Introduction:   With  the  introduction  of  new  Chinese  competitors  in  the  DRAM  market  it  is  necessary  for  Samung  to  access  their  strategy  for  the  future.  Looking  at  past  trends  in  the  DRAM  market,  current  market  situation,  and projections  for the Flash market, the  best option for  Samsung  is  to focus their efforts  on  growing  the  Flash  technology,  while  maintaining  their  DRAM  output.  This  is  the best course of action  because  Samsung’s  customer  loyalty  will  carry  their  market  share  in   the  DRAM  market,  while  they  are  focusing on establishing this type of dominance in the Flash market.

By the end of 2012, Samsung electronics become the largest producer of televisions and mobile phone. In order to achieve the success and the dramatic rise in consumer electronics sector, the company initiated new methods to innovate and create high quality products .

With the broad range of expertise in engineering and technology the company has certainly become and innovative leader. “So the company also takes the advantages of the new technology innovation in order to improve the efficiency and quality of the products. By utilizing the efficiency of the workforce, the company can posses the highest quality products and control over the 45% industry all over the world” (Brainmass, 2008, pg. 1).

Samsung has long been one of the largest manufacturers of electronics components in the world. The main electronic components include semiconductors, flash memory, chips, hard drive devices, and lithium-ion batteries. Apple, Sony, HTC and Nokia are the main clients for the components. [3]

Company Background: Samsung is a South Korean multinational company those starting its business as a small trading company and right now becoming world largest corporation. The company deals with its business in several sectors such as advance technology, finance, petrochemical, semiconductors, plant construction, skyscraper, medicine, fashion, hotels, chemical and others. The company was established in 1969 in Suwon, South Korea and known globally for its electronic products (Kelly, 2011). The company is manufacturing several latest technologies, electronic appliances such as mobile phones, tablets, laptops, TVs, refrigerators, air conditioners, washers and other products. The company runs its operations and sales its products in 61 countries with approx 160,000 employees in all over the world (SAMSUNG, 2014). Moreover, the company acquired the position of the world biggest IT maker in 2009 by beating the Hewlett-Packard (HP) previous leader. Its sales revenue in the segment of LCD and LED is the highest in the world. Furthermore, Samsung also becomes world leader in the segment of tablets, mobile phones and gadgets.

For more than 70 years, Samsung has been dedicated to creating a better world through different businesses that now span advanced technology and more. Samsung leads the global market in high-tech electronics manufacturing and digital media.

Learning and experience Curve: Between 1983 and 1985, Samsung allocated more than $100 million in into DRAM technology, even paying another firm to teach them how to produce 64k DRAMs. As the market grew, firms tried to catch up to where Samsung already had a foothold. To further make advancements efficiently, Samsung has had separate R&D groups compete within their company to come up with the same solution.

Samsung had a number of technological breakthroughs particularly in the field of memory which are commonplace in most electrical products today. This includes the world's first 64Mb DRAM in 1992, 256 Mb DRAM in 1994, 1Gb DRAM in 1996.[19] In 2004, Samsung developed the world's first 8Gb NAND Memory chip and a manufacturing deal was struck with Apple in 2005. A deal to supply Apple for memory chips was sealed in 2005 and, as of October 2013, Samsung remains a key supplier of Apple components, manufacturing the A7 processors that are inside the iPhone 5s model.[20][21]

Whirlwind Consulting Company has reviewed the current position of Samsung in the semiconductor and memory chip industry, and has completed an extensive internal and external analysis to determine Samsung’s options in response to the threat of significant future expansion within the Chinese semiconductor industry. It is our opinion that Samsung should begin an incremental decline in the production of low-end DRAM memory chips, and initiate an extensive strategic movement towards capturing the higher-end of the DRAM market, as well as new niche

Because of these essential strengths, Samsung Company has more control to the cost of the product, and can control sales price when it need, much easier than its competitors. Samsung is one of the leading chip design and production, as well as, many other parts used in the development and production of 3D television companies.(1)

From the three main activities, Samsung Electronics is the one that can compete with other leading brands. Initially that making Samsung’s products are on the rise is the development of 256K dynamic random access memory (DRAM) computer chip and a VLSI (very large scale integration) version of the 64K DRAM chip. By the turn of the millennium, the company’s successful introduction of leading-edge products such as mobile phones, MP3 players, digital televisions and personal digital assistants (PDAs).