I. Summary of the Facts This case study analysis is on Samsung Electronics Company (SEC) and how it has climbed up the ranks in the past decade via calculated marketing strategies, extensive market research and analysis, and a risky bet on how the market will evolve. Samsung’s principle outlook took time and education from within and thereafter the general market. Samsung Electronics Company (SEC) began doing business in 1969 as a low-cost manufacturer of black and white televisions. In 1970, “Samsung acquired a semiconductor business” which would be a milestone that initiated the future for SEC. Entering the semiconductor industry would also be the beginning of the turnaround phase for SEC. In 1980, SEC showed the market its ability to mass produce. SEC became a major supplier of commodity products (televisions, microwave ovens and VCRs) in massive quantities to well known original equipment manufacturers (OEMs). For this reason, Samsung was able to easily transition into a major player in the electronic products and home appliances market (Quelch & Harrington, 2008). 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). In 2002, SEC posted net profits of $5.9 billion, on $44.6 billion in sales, and as a result in 2003 became “the most widely held stock among all emerging market companies”. Unlike other companies who chose to outsource their manufacturing process, SEC remained committed to its core competence, manufacturing (Quelch & Harrington, 2008). During 1998-2003, SEC invested $19 billion into chip factories and $17 billion into manufacturing facilities for TFT-LCDs, which would be a major component for flat screen TVs and computer screens. Even though SEC was focused in the manufacturing process, it didn’t make SEC a rigid company.
One look at the common-size income statements for these companies can tell a story. While Jones Apparel Group was lagging at year ended 1998, even with a restructuring charge on Liz Claiborne’s income statement, 1999 was a different story. Huge growth at Jones lead to revenues double of that one year ago while Liz, while increasing, was quickly falling behind. The growth for both of these companies continued into the year ended 2000, but Jones Apparel Grou...
Hewlett-Packard is one of the most innovating companies in today's modern world. They specialize in building and producing computer software, hardware, and networking devices, but their main manufactures in their production lines are personal computers and a vast amount of printers. In addition to manufacturing computer technology, they're also involved in various military contracts that help the United States in their defense systems and infrastructure. As a result, how are these contracts helping our country's military progression and why have we developed a partnership with this private company to build numerous long-term contracts? In this paper, I plan to inform you on the company of Hewlett-Packard and how their help to the military has progressed the United States and their war efforts in fighting around the globe.
The United States located electronic company Electrocorp faced the problem of declining profitability due to rising production costs, specifically high wages, costly worker's safety and environmental standards. In order to solve this problem Electrocorp is deciding whether to relocate some of their plants to South Africa, Mexico, or the Philippines.
One of the strategies was outsourcing manufacturing. The company entered into contracts with several manufacturing companies who then supplied the fully assembled goods to Cisco.
Therefore, the organization should take a strategic growth-oriented and reverse type combine. On the one hand, the use of outsourcing and vendor competition to reduce costs in order to compensate for management and manufacturing inefficiencies, pay attention to controlling costs; On the other hand, combined with the advantages of their own technology, innovation, branding and marketing and other aspects of the product 's high school three grades are low pile of competitive products, consumer electronics growth to seize the opportunity to obtain efficient growth performance, and further expand market
Samsung will also include consumers, as key external stakeholders, in the research and development focus groups to best incorporate consumer opinion and demand into areas of the project including development, marketing, and distribution. This will help Samsung create and deliver a product that the customers want. It will also help identify consumer needs for the new smartphone’s use as consumer inputs will help shape and drive the technological innovations that Samsung is aiming to deliver with its new smartphone.
Sony Corporation is a multination conglomerate corporation headquartered in Tokyo, Japan , and one of the world's largest media conglomerates with revenue of US$88.7 billion (as of 2008) based in Minato, Tokyo .
For many years, IBM succeeded in holding a very good market position. In fact, the company achieved a very high market share and huge profits. However, this situation did not last forever. In 1990, IBM experienced its first quarterly loss of $2billion due to some unexpected accounting charges. However, revenues increased from $62.7 billion in the previous year to $96 billion. In 1991, the c...
Than fifty years, “Sony”, founded by: Honorary Chairman Akio Morita, has been leading the industry in a number of areas. Sony has changed everyone’s life as we know it. From producing batteries to the new wireless networking system, they are number one. Have you ever wondered who produced the system, they are number one. Have you ever wondered who produced the great games you love to play or the MP3 player you got from your husband? From DVD movies, to digital cameras and camcorders, Sony is leading the world into a new frontier. Electronics, games, music, pictures and insurance are just a few of the side products of the billion-dollar company.
...ce the challenges, the structure they built as the foundation is very strong, and one more thing that I personally impressed from this company is the vision and the strategy made by Stan Shih to gives trust to Acer branches, their executives, and even employee to make their own business decision for the good of the company.
The global strength of Samsung provides flexibility – being a worldwide organization allows it to seek out the simplest sources of raw materials, alongside the simplest locations during which to manufacture and assemble its merchandise. Samsung has twenty six factories across the planet, thus its international nature has additionally resulted in AN internationally identifiable name. As a result of Samsung operates in such a large amount of product and market areas, it combines all its experience, technology and facilities so as to boost development. This is often called ‘synergy’. To boot, Samsung may be a vertically integrated company, dominant all phases of the method, from raw materials through to manufacture, the merchandiser and therefore the
There were several reason for the rapid growth of SAP America during mid and late 90’s. Throughout the evolution, the parent company of SAP America, SAP AG, wishes to provide a better product based on the evolution of technology as well as based on the changing customer needs, and thus invested consistently on R&D activities. 20-25% of SAP AG’s gross revenue were re-invested in research and development. In fact, almost one quarter of the company’s employees were working on research & development activities. Adding to the point, they carried no debts over a period of time as well as they didn’t book revenues until product delivery to customers.
withstanding a large recession, and commanding high market share. In the last five years, the company’s
Tyco International was founded in 1960 and was regarded as an important electrical and electronic components provider, fire protection system maker and electronic security service provider. It is a diverse producing and serving corporation. Tyco has done business in over 1000 locations in 50 countries and hires 69,000 employees around the world (TYCO, 2012). Tyco International has expanded rapidly and broadly since its IPO in 1973 and has numerous companies among the Fortune 500. The firm’s revenue increased from $3.1 billion in 1992 to over $40 billion in 2004, with the firm’s market value estimated at over $100 billion (TYCO, 2012). Tyco has made numerous acquisitions, including 40 acquisitions since the 1980s.
Panasonic Case Study (Graphics Not Included) Panasonic operates under the umbrella of the Matsushita Electric Industrial Co.