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).
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 costs in many of the competing Southeast Asian countries. The average wage of $1,144 a month that Korean workers earned was one of the highest wages paid in Asia outside of Japan. Korea had been the low cost labor supplier until the point at which The Peoples’ Republic of China entered the competition for manufacturing of color TVs. The low cost of labor in China would cause Korea’s position being the lowest cost provider to be a position that was in danger. The Korean government at this point was discontinuing subsidies and export credits to Korean manufacturers and at this time the Korean products which had been the low end market
Firstly, I believe that Gupta should communicate with the whole organization and local managers more effectively to make sure that everyone within the organization understand the concept of her global branding initiative. If any manager has misunderstanding of global branding initiative, it will lead to ineffective teamwork within the whole company. And I think that global brand does not have to be exactly same all over the world. It can have a common goal and similar identity in different market. For example, KFC has different menu in China from USA. And food in KFC tastes different in Asia from other markets such as Europe. KFC has various ad...
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.
I have researched the Motorola Incorporation and with the information have created a strategic audit for them. Motorola is the leader in global communications. They are currently revolutionizing broadband. The companies headquarter is in Schaumberg, Illinois with 320 other facilities in 73 countries. Motorola's CEO and Chairman is Edward J. Zander and employs more than 9,000 people worldwide and had sales of $42.9 billion in 2006. Motorola today has three business segments: 1) Mobile devices 2) Home and networks Mobility and 3) Enterprise Mobility solutions. This company has come a long way since its first product which was the battery eliminator in 1928 and they have also been recognized for their dedication to ethical business practices. Their products over the years have grown and changed along with their drive for excellence which has become stronger than ever. What more can this company do? The strategic audit I have prepared might shed some light on some ideas for them.
During the 1990s, each company experienced specific difficulties to their market share. Both companies struggled to reestablish themselves in the global consumer electronics world. As the year 2000 came around, new CEOs at both companies came up with even more complicated initiatives and reorganizations. Outsiders wondered how each company’s internal changes would affect their endless competitive battle in the industry.
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
In conclusion, I believe the best stock to invest in for the coming future would be Sony. With the new advances in technology happening every day, Sony can only increase in value. You may ask why Sony instead of one of its competitors? Put simply, Sony has a much broader range of products to offer. When compared to the rest of the technological world, Sony is the only way to go.
1. Strategy in the second half of the 1980s: Having innovative, high-quality products and being a reliable, responsive supplier.
A product is a service or item that is offered to the customer to fulfilled their requirements and needs. A brand portfolio is used to include all entities when a large organisation run under various and numerous brands, services and company. Typically, each of the brands possesses a separate trademark and manage as a single business entities. Samsung is a huge company and produce various products with creative and interesting design and sizes, therefore customer has numerous choices. Samsung brand portfolios is Samsung Electronics Co.Ltd, SDI Co.Ltd, Electro-Mechanics Co.Ltd, Techwin Co.Ltd, Heavy Industries Co.Ltd and Security Co.Ltd. All those products had been offered to the multinational company and the world. Every Samsung brand is regulated
The company 's main headquarters are located in Santa Monica, California, but they also have a multitude of offices spread across the world. Due to its large size and extensive amount of capital and
This article studies the relationship between advertising and sales promotions and their impact on brand equity. A main priority for most companies is to establish and achieve a strong and powerful brand name. A company can build a strong brand name by creating the market for their customers want. By creating a strong brand name, a company will become more established. Brand equity is important to the producer, retailer and consumer. The consumer knowledge of the brand says how the producer will produce and market the product. The consumer knowledge of the brand name also determines the quantity the retailer will sale. Brand equity can have a positive or negative effect. A positive effect would be for everyone to recognize the name and purchase the product. The negative effect would be to have the product recalled. Brand equity is important because it can offer many advantages for a company. Brand equity can create a high demand for your product, reduce marketing cost and the company’s brand name will have high credibility.
SEC was mainly focused in manufacturing; therefore, it’s no surprise that the executives themselves were also focused on their manufacturing plants. Profits that SEC received were soon reinvested into Research & Development, manufacturing, and supply chain activities. Unexpectedly, in 1997, a financial crisis hit the Asian market. Even though SEC’s sales were $16 billion, they still had a negative net profit. SEC executives exercised major restructuring efforts that resulted in the dismissal of 29,000 workers and the sale of billions in corporate assets. SEC was able to ride the Asian Financial Crisis and was able to reduce its debt dramatically to $4.6 billion, from $15 billion, over a 5 year period. Furthermore, SEC was able to increase its net margins from -3% to 13% (Quelch & Harrington, 2008).
The fast food industry’s giant- McDonald’s has become the best-know fast food brand in the world. It employs advertising, sale promotion, public relations and sport sponsorship to promote McDonald’s as a global image (Vignali, 2001). In communication context, the maxim “brand globally, advertise locally” (Sandler & Shani, 1993) is McDonald’s promotio...
Global brand is another term marketer’s use. Global brand is the name of the product that has worldwide recognition. It also has been referred to brands where at least 20 percent of the product is sold outside the region and the home country. Marketers have to make sure that there is nothing offensive in terms of the name or packaging in the different cu...