Samsung Electronics Company
The Samsung brand
Originated as low-cost manufacturer of black and white televisions in the year 1969, super sized with a semiconductor segment in 1970s, Samsung delivered massive volume of low-cost consumer electronics to domestic and OEM products to both domestic and global markets until 1993. Due to this fact, company didn’t develop global brand awareness until then. In the global arena, Samsung’s brand message was fragmented and its logo presentations were inconsistent.
In the year 1993, “new management initiative” started transform Samsung from a “cheap OEM” to a high value-added products provider”. At this point, company realized to take the brand to global platform and started thinking the importance of global positioning and the powering the brand. Initially, management targeted to build corporate brand image across 200 countries with focus on 17 selected products. But, in the early period, internal challenges of marketing misconceptions among the top level managers turned down efforts of this visionary growth measures.
But, the company’s challenges turned into a different outcome in the wake of the Asian financial crisis in year 1997. Fast actions were required to curtail the financial threats and massive restructuring efforts were imminent. Samsung utilized this opportunity wisely and the result was a turnaround from $15 billion debt to $4.6 billion within a short period of 5 years.
Samsung’s global marketing director is assessing how to build the global brand reputation of the company further and upgrade the company’s worldwide brand image to show how to build a global brand. The challenge of Samsung’s marketing director is the branding strategies in global markets. Marketing team has to examine the organizational dynamics to develop a strong global brand.
Success factors:
Management Efficiency: During the 80s, the company’s refocus to manufacturing quality and technical leadership and profits reinvestments in R&D, state-of-the-art manufacturing, and supply chain activities helped the company to grow in a great extend. This management vision was not only upgraded the company’s products to compete in the high-tech electronics industry but also gave foundations of its global brand awareness.
Transparent disclosure practices: By 2003, Samsung was the most widely held stock among all emerging market companies due in part to relatively transparent disclosure practices. This is evidenced with the fact that over half of its shares held outside Korea, and the stock price had increased tenfold between 1997 and 2002.
Plant/R&D locations: To keep costs low, the company operated in different geographical locations like China (manufacturing) and India (R&D).
Sarkar, A. N., & Singh, J. (2005). New paradigm in evolving brand management strategy. Journal of Management Research, 5(2), 80-90. Retrieved from http://search.proquest.com/docview/237238894?accountid=28644
Global marketing is defined as marketing on a worldwide scale, or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives. Marketing managers are also tasked with the responsibility of “wringing the pennies out of the activities.” Basically, they are responsible for and add value to their activities that will contribute to a higher value in the mind of their consumers. Managers must understand the role of their salespeople as marketers – they must collaborate and support them. They must work with their supply chain functional managers to accommodate international customer preferences. Communication must flow up and down the chain quickly in order to respond to emerging international marketing threats and opportunities. It is essential to monitor the firm’s global marketing efforts in a global market.
After conducting a basic 10 year financial analysis of the company, it has become evident that even with a highly competitive market structure they are able to improve on their performance. Ranging from 2004 to 2013 financial information, the company has shown a significant increase in their sales revenue roughly $3865 million sales in 2004 to almost four time that valuing $12970 million in 2013, which was an “increase of 10.4% over the 53 week prior year” The company’s growth strategy has been to diversify its product market and make them...
strong global presence tha t dates back to 1882 when it opened a plant in
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In the past decade companies are starting to see their brand assets, and with this branding has taken on a greater significance. So today brands are more than just marketing slogans and logos. All businesses are building their brands through certain actions and in their actual presence they find a 'position' in the mind of consumer and prospects. This is based on experience and exposure of the brand in the competitive marketplace. There are certain advantages to take into account in a Brand Strategy;
that made the company one of the most recognized companies of the world. The dynamic
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However, Samsung from South Korea that become the one and only brand that famous in Asia
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