The Introduction of the Samsung Color TV Essay

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The Introduction of the Samsung Color TV

Background

Samsung as a company was founded in 1938 in Korea. 46,500 employees are working at six Samsung Electronics facilities in Korea. Although they are at different locations, all share the same goal and that goal is satisfying global customers by producing a quality product. Here in the U.S. Samsung is a very recognized brand, sitting along side Sony, Panasonic, Phillips, Toshiba, Matsushita and other more know brands of TVs. In South Korea, Samsung was a governmentally subsidized large business until in the 1990’s. In the mid 1990’s one of the most significant threats to Korean corporations was that their major advantage in low labor cost had been deteriorating against the labor
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The following issues were raised during this meeting:
• Should SCH cover all the marketing segments and product lines?
• Should SCH focus on the low-end market segment with a limited line of products?

• Should SCH target the high-end segment, as most Japanese markets have done in the US and China markets?

In 1994, China had 300 million households, with only 41% of the households holding a color TV sets. However of the 80 million urban households, 80% already owned a color TV, where only 28% of the 220 million rural households owned color TV sets.
A SWOT analysis will show the strengths, weaknesses, opportunities, and threats SCH is looking at when they put together their potential marketing strategy in the Chinese economy.

Strengths:
• China was a market where the first mover enjoyed advantages over late comers.
• The first image of the product lasted long in the eyes of the consumer and the first to enter the market could gain the largest market share
• SCH is committed to enhance its image to the Chinese market as investors
• SCH was building a wholly owned manufacturing plant in China to show the
Chinese the commitment Korea had to the Chinese society.
• Labor costs in China were less and would defray the cost of producing high-end
• Samsung has been making color TVs for many years in Korea before moving to the Chinese market.

Weaknesses:
• SCH must continue to
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