i. Introduction

Samsung Electronics Co. Ltd has just been named as the number one consumer electronics brand in the world* and is an acknowledged leader in the digital convergence revolution. Since its inception in 1969, Samsung has successfully transitioned from an analogue driven product line to a cutting-edge and awardwinning digital innovator that is currently the world's number one manufacturer of CDMA mobile phones, LCD and CRT monitors, DRAM memory chips and microwave ovens. With worldwide electronic product sales of $US36.9 billion, over 75,000 employees and a global network in 47 countries, Samsung is truly a global giant and has been recognized as one of the world's top 100 Brands by BusinessWeek magazine.

iv.

Background Company

Samsung Electronics Company was established in Taegu, Korea in 1969 by ByungChull Lee. During that time the company only manufactured black-and-white TV sets. Since 1969, the company has enjoyed steady growth. At the end of 2004, Samsung had around $80 billion in net sales, $60 billion in assets and had 113 thousand employees worldwide. Also, in 2004 Samsung stood up ahead of many their competitors such as Phillips, Kodak, and Panasonic (Barney & Hesterly, 2008, PC 2-1). By that time the company produced TVs, AV equipment, and computers; the Telecommunication Business, which manufactured mobile phones and networking equipment; the LCD Business, which made LCD s for notebook computers, desktop monitors, and HDTV; and the Digital Appliances Business, which produced and sold refrigerators, air conditioners, and washing machines (Barney & Hesterly, 2008, PC 2-6). Samsung believes that the success of their contributions to society and to the mutual prosperity of people across national boundaries truly depends on how they manage their company. (Samsung, 2008) Kun Hee Lee, current chairman of the Samsung Group always teaches his employees: always demand superiority in product design and process efficiency. Under Lee’s leadership, Samsung Corporation has become one of the world’s leading memory producers in all types of PCs, digital cameras, game players, and other electronics products (Barney & Hesterly, 2008, PC 2-1). External Analysis The Industry type for Samsung is consumer electronics and entertainment. The market type is monopolistic competition because there are many producers and many consumers in the given market. Furthermore, when it comes to monopolistic competition, it involves a great deal of non-price competition which is based on product differentiation. Also, the producers have a certain degree of control over price. The electronics industry is a very wide category and it contains many types of products. Samsung competes with other companies in providing customers with a wide array of products that are good quality and affordable price. What they don't do is specialize in a certain product and thus they can't make an expensive superior product. With intense rivalry and competition in the industry, Samsung is satisfying consumers who want modern reliable products ranging from cell phones to home electronics.

Conclusion

Samsung provides the electronics market with a full range of great consumer products, ranging from mobile devices to home appliances. They have proved themselves an innovative and efficient company that strives to provide their customers with the newest products for a great price. With their wide range of products they have generated a powerful supply of products. The imitability of their resource that Samsung is facing from Chinese DRAM Company has to make Samsung think of new ways to stay on top of the market and stay profitable in the long run. In order to secure future success in a very competitive market, they need to focus on being innovative and expand their products in to new markets and countries. Samsung should also invest heavily into establishing its brand name in foreign countries to attract talent. Applying all of these recommendations and suggestions will generate a better future for Samsung and will make them be able to compete with other companies in the industry.

References

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