三星战略分析.doc

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1、Strategic Analysis on Samsung Electronics.Brief IntroductionSamsung Group is a diversified group, with operations in various sectors such as electronics, financial services, chemicals and infrastructure. Samsung has operations across the world .It is headquartered in Seoul, South Korea and employs a

2、bout 276,000 people.Samsung Electronics was founded in 1969 in South Korea with Samsung Group as its largest shareholder.10 years ago, the brand “Samsung” was just a symbol for cheap electrical appliance among consumers but now it becomes one of the leaders in high-tech digital products.In 1992, Sam

3、sung Electronics began manufacturing in China. Samsung set up SEHC in Huizhou. Since then, Samsung has been investing in China and keeping cooperating with operations in China. Nowadays, China is the country which Samsung put main money into.Strategic Environment Analysisi. External Environment of S

4、amsung 1. General Environment AnalysisThe general environment of Samsung includes four terms: Political/legal segment: A stable political environment should be formed for a company, as the situation will provide a stable development environment. For example, in 2006 China has brought some new politi

5、cal decisions.One is to protect the rights of consumers; the other is to promote the competition environment which is more equitable.As to the legal force, New “Telecommunication Law” is drafting out and this law includes lots of constraint articles for electronic industry.For Samsung:The environmen

6、t could make Samsung change its market into more stable countries such as China. And new competition policy would let it change its strategy in competition especially in price.Economic segment: Global economic has already came into tardiness phase, problems of high price of oil, global imbalance and

7、 the increase of high public liability of developed country would make the economic instable. The financial crisis happened in 2008 has already proved this. However, the GDP of whole world increase intensively. This might impact an organization in lots of terms such as supplier and customer.In China

8、 economic increased intensively during the last few years. GDP of China nearly up to 10.1% in 2010. Thus the environment of economic environment in China is good for organizations.For Samsung：It would be impacted heavily from the declining of global economic, however, in China, stable and increasing

9、 market would let Samsung put more focus on it. And the price of Samsungs products should be changed for the different condition of the different countries.Technological segment: Generally speaking, technology nowadays could be described as huge new technology coming forth, especially in global info

10、rmation. And the pace is more and more fast. The amalgamation of information sciences, life sciences, matter sciences and cognitive sciences made information technology used in more areas.Demographic segment (in China): We can understand the demographic distribution from the table below:GrossPercent

11、City66557530649.68County67414954650.32Male68685257251.27Female65287228048.73Age 0-1422245973716.6015-5993961641070.14Older than 6017764870513.26Sum1370536875 From the table we could see that population in counties is larger than in cities, male and female numbers are approaching to a balance and the

12、 largest amount of people are located between age 15 to 59. This means more potential markets are engendering by the increasing of people in China.The government of China also does his best effort on public sanitation and speed up the development of education these years. As a result, the people qua

13、lity in health aspect and education aspect both increase quickly.For Samsung:Huge population gives Samsung lots of new opportunities. As an electronic industry, Samsung put most of its market in areas which has high earnings such as big cities. More people in cities than before would enrich Samsungs

14、 market. Also, potential market and potential labor market would be given since the increasing of city population.2. Industry Environment AnalysisPorters Five-Forces Model of Industry CompetitionPOTENTIAL ENTRANTS: as to the strong strength of entry barriers in electronic industry, there cant be man

15、y new entrants developing so fast in a short time. CUSTOMERS: small bargaining power of customers. Samsung should keep improving its technical R & D capabilities to gain sustainable uniqueness.SUPPLIERS: main strategic partnership between suppliers is joint R & D and technology transfer.SUBSTITUTES:

16、 easily can be substituted by other new electronic products INDUSTRY COMPETITORSRivalry Among Existing Firms: NOKIA SONY SiemensBargaining power of suppliersBargaining power of customersThreats of substitute products or servicesThreats of new entrantsSpecifically, the industry environment of Samsung

17、 also includes four terms: Threats of new entrants: As we all know, there are lots of organizations do business in electronic industry and this market had already saturation. Electronic production needs high cost, so the strength of entry barriers is very huge. In this case it is not so easy for oth

18、er organizations to enter this industry.In addition, in the area of appearance few organizations could do better than Samsung and this make Samsung has a large amount of loyal consumers.Threat of substitute production: The substitute production of Samsungs electronic production in China includes Nok

19、ia, Moto, Sony, LG, Siemens, TCL and so on.LG and TCL could not impact Samsung heavily because the features of these organizations products have not catch up with Samsungs now and even in the future few years. Which could be threats to Samsungs electronic production actually are Nokia, Moto and Sony

20、. These organizations products have wonderful features and their own loyal customers.Bargaining power of suppliers：Samsung is an integrative company thus it has its own supplier link. Supplier link which makes Samsung proud the most let Samsung has very little impact on the bargaining power of suppl

21、iers. They only need to care about the raw materials.Bargaining power of buyers: Because of the stable economic and political environment, the target market of Samsungs products would stay in a dynamic balance. We also could see that, economic is increasing fast, with the buying behavior of high ear

22、ning group, there would be large amounts of potential market exist for Samsung.ii. Internal Environment of Samsung 1. Internal Resources Tangible resources: Financial resource：Through financial analysis of Samsung, we can see that it is now in a strong financial position. As the data shows, Samsung

23、has high amount of total assets and net sales .Although its debt isnt in a very low level, its net income still keeps growing, reaching to 13.8 billion dollars in 2009. Organizations in such a strong financial position can be more responsive to new opportunities and new threats.Technological resourc

24、e：Innovation is crucial to Samsungs business. As new technologies are being constantly introduced to the market, speed is essential for remaining competitive in todays digital era. In case of that, Samsungs R&D centers are set up all over the world. The R&D network spans six Samsung centers in Korea

25、 and 18 more in nine other countries, including the United States, the United Kingdom, Russia, Israel, India, Japan and China, as well as other research centers and universities. These centers are tasked with hiring top-notch local talent, investigating the latest local technology trends, and bringi

26、ng to life those technologies that make the greatest benefits.Intangible resources:Human resource: One of Samsungs strongest assets is the team of talented researchers and engineers. More than a quarter of all Samsung employees42,000 peoplework everyday in research and development. When employing pe

27、ople, Samsung puts his focus on employees sense of responsibility as it is the core value outlook of SEC. Samsung select people who have good morals and be innovated. Anyway, employees need to be fit with Samsungs culture. Samsung not only puts his focus on the process of selecting employees, but al

28、so the process of training and educating employees. As statistics shows, Samsung costs about 63,000,000 dollars every year on the training of employees. In order to attract people with abilities and retain them, Samsung even programs an all-around incentive system and a scientific performance apprai

29、sal system. Those experts who have excellent performance even gain higher annual salary than top executives and managers.Unique brand reputation: Samsungs reputation is based on its corporate culture.As we all know, its vision is to lead the digital convergence revolution growing to be the best and

30、its mission is to become a best Digital- company. Here, means most efficient productive management. Furthermore, Samsungs service conception is to keep strong contact with customers and make their best efforts to satisfy with customers. All these operating philosophies gain a lot of reputation for S

31、EC.2. Value Chain AnalysisProcurement HRMProcurementTechnology DevelopmentProfitProfitOperationsInbound LogisticsOutbound LogisticsMarketing and SalesServices“Samsung type” industrial parkUse high-end technologiesOffer unique and thoughtful serviceWork in marketing guiding principleMultinational com

32、pany system all over the worldSet up strong marketing team and extensive marketing relationshipsMassive and high qualitySkill trainingStrong R&D capabilityChances for personal development3. Core Competencies AnalysisAdministrationSamsungs core competencies are as follows： Innovation: Speaking of Sam

33、sungs resplendence, almost every manager or ordinary employee will refer to the well-known remarks by Kun-Hee Lee, the chairman of Samsung Group, “Except wife and children, all the things have to change.” In 1993, Kun-Hee Lee conducted the “New Management” program. Through continuous indoctrinizatio

34、n of the consciousness of crisis and the concept that only those who change can possibly survive, Samsungs core business begun to change from mass imitational production to independent brand development based on digital technology. During its course to become a world-class company, Samsung has never

35、 stopped innovation and transformation. In 2001, in order to cope with the fast-changing information age, the program of “Digital Management” was carried out. In 2002, Samsung implemented the Wow Product system in order to maintain its leading position through the development of a series of high-tec

36、h. Innovation now has become part of Samsungs spirit and culture and has become the driving force of Samsungs firm and continuous transformation. Triangle Management Structure: Samsung Group creates a “triangle management structure” in the “New Management” program aiming at the integration of knowle

37、dge capital. In such a structure, CEO Kun-hee Lee is at the vertex of a triangle. Another point is the “structural adjustment department” itself. The third triangle point is the Chief Executive Group. CEO at the vertex is in charge of guiding management direction and deploying strategic target, lead

38、ing his workers struggling to create products. “Structural adjustment department” not only assists President to carry out the strategic decisions but also acts as the role of monitor in charge of regulating a few branches of the operation. Chief Executive Group is responsible for carrying out specif

39、ic strategic plan regarding to how to develop the actual business activities. “Triangle Management Structure” increases Samsungs market competitiveness, considered as Samsungs management work milestone. Because of this structure, management responsibility is strengthened and management efficiency al

40、so improved. Human Resource Program: In order to be better in the 21st century, Samsung strengthens human resources management system, building up South Koreas biggest talent library to promote the operations sustainable development. Additionally, Samsung pursues the principle of “people first”, alw

41、ays believing that enterprise success lies in the quality of employees. Samsung divide technology into four terms: basic technology, advanced technology, core technology and future technology. As for these technologies, Samsung is equipped with corresponding personnel and establish suitable training

42、 system for each level talent. . Strategic Plan Analysis i. Corporate StrategiesAt present, Samsungs products includes: CDMA mobile phones, CDMA system, TFT-LCD monitors and other communication and office supplies; Semiconductor, 34-inch flat screen CRT and other core components; Rear projection big

43、 screen TV, DVD, home theater and other AV products; Digital camera and other optoelectronic products; Large double-door refrigerators, air conditioners and other white appliances.Obviously, Samsung purses such a related diversification strategy.However, as mentioned above, chairman of Samsung Group

44、 says “Except wife and children, all the things have to change.” After the financial storm happened in South Korea, Samsung decided to drastically adjust the layout of its strategies, focusing on core business. Samsung withdrew the sprawling diversity of business rivaling with Sony and Philips，conce

45、ntrating on the core business in 21st century: digital products.Samsung compressed business in BP machines, switches, small-scale household appliances, focusing on multimedia, information and communication appliances (third generation mobile phones) and semiconductor as three areas of core business.

46、 In 1999, Samsung invested 1.2 billion in R&D of digital products in 2000 reached 1.7 billion, seeking to occupy the advantageous position in the digital revolution. Samsung also adjust the organizational structure and lay off employees. In the end of 1999, Samsungs affiliates and subsidiaries reduc

47、ed from 65 to 40.Furthermore, Samsung closed a large number of overseas institutions. As to the layoff, Samsung cut down 35% of employees in three years with capita sales increasing from $ 2,250,000 in 1997 to $ 4,300,000 in 1999.In such ways, Samsung highlight their core capabilities, concentrating

48、 on preponderant resources to enhance the key markets. Consequently, 1999 annual sales reached 100 billion U.S. dollars, net profit of 1.1 billion, an increase over 1998respectively 24% and 85.8%. From then on, Samsung is focused on restructuring the business of digital products as an international enterprise group.ii. Business-Level StrategiesSamsungs business-level strategies change from cost leadership strategies to differentiation strategies.From the very beginning, Samsung pursued cost leadership strategieswith a consideration to Samsungs strengths and weaknesses