Samsung: from Gallop to Run
I. Situation Analysis
A. Company Philosophy
Samsung Electronics has to be the cutting-edge product leader in consumer electronics producing new sleek, bold, and beautiful products which they called as “lifestyle works of art” intended for the high-end users. Each product has to pass the “WOW” test. If it did not get the “WOW” reaction during market testing, it is scrapped or sent back to the design studio.
B. Current Strategy
The company is focused on the development and production of innovative, stylish, and new consumer electronics product intended for high-end customers. Along with this, the company also changed its distribution system abandoning low-end distributors and choosing to build strong relationship with high-end and specialty retailers.
C. Relevant History
• Samsung Group of Companies, the parent company of Samsung Electronics, was founded in 1938 by Lee Byung-Chuil. It is now the world’s largest conglomerate, second largest shipbuilder, a major global construction company and the largest insurance company in South Korea.
• In 1969, Samsung Electronics was established. It started as a maker of cheap consumer electronic products like calculators and black and white TV’s through the mid – 1990’s.
• In 1993, CEO/Chairman Lee Kun-Hee unveiled his “new management” strategy bringing Samsung Electronics to ambitious new direction. Instead of being a copy cat, the company has to produce new, sleek, bold, beautiful and innovative consumer electronic products. The company hired new crop of fresh, young designers who unleashed a torrent of new products. The goal was to become no. 1 in consumer electronic products.
• Beginning 1993 Samsung Electronics also changed its distribution strategy abandoning low-end distributors and choosing specialty retailers for its new, stylish, and innovative products.
• Samsung achieved its goal to become number 1 in consumer electronic products in 2005. They’re no.1 up to now.
D. Financial Analysis
A. Company Philosophy
Samsung Electronics has to be the cutting-edge product leader in consumer electronics producing new sleek, bold, and beautiful products which they called as “lifestyle works of art” intended for the high-end users. Each product has to pass the “WOW” test. If it did not get the “WOW” reaction during market testing, it is scrapped or sent back to the design studio.
B. Current Strategy
The company is focused on the development and production of innovative, stylish, and new consumer electronics product intended for high-end customers. Along with this, the company also changed its distribution system abandoning low-end distributors and choosing to build strong relationship with high-end and specialty retailers.
C. Relevant History
• Samsung Group of Companies, the parent company of Samsung Electronics, was founded in 1938 by Lee Byung-Chuil. It is now the world’s largest conglomerate, second largest shipbuilder, a major global construction company and the largest insurance company in South Korea.
• In 1969, Samsung Electronics was established. It started as a maker of cheap consumer electronic products like calculators and black and white TV’s through the mid – 1990’s.
• In 1993, CEO/Chairman Lee Kun-Hee unveiled his “new management” strategy bringing Samsung Electronics to ambitious new direction. Instead of being a copy cat, the company has to produce new, sleek, bold, beautiful and innovative consumer electronic products. The company hired new crop of fresh, young designers who unleashed a torrent of new products. The goal was to become no. 1 in consumer electronic products.
• Beginning 1993 Samsung Electronics also changed its distribution strategy abandoning low-end distributors and choosing specialty retailers for its new, stylish, and innovative products.
• Samsung achieved its goal to become number 1 in consumer electronic products in 2005. They’re no.1 up to now.
D. Financial Analysis