AGENDA

• History of Samsung smartphones

• SWOT Analysis

• Distribution Strategy

• Competitive Advantage

• Testing of Hypotheses

• Analyses of Results

• Net Takeaway

• Interesting Trivia

History of Samsung smartphones

Samsung SPH-I300• October 2001• Internet

Browsing/ Touchscreen Keypad

Samsung BlackJack• November

2006• Blackberry

lawsuit

Samsung Instinct• June 2008• Advertising

against Apple

History of Samsung smartphones

Samsung Focus• October 2010• Only Windows

phone to feature a micro SD slot

Samsung Galaxy S II• May 2011• Made

Samsung leader and earned Apple’s eternal emnity

Samsung Galaxy Nexus• December

2011• Won 3

contract for flagship Google Nexus devices

History of Samsung smartphones

Samsung Galaxy Note• February

2012• New

product category “phablets”

Samsung Galaxy S III• July 2012• Solid hardware,

wide availability and relentless marketing

Samsung Galaxy S4• April 2013• Fastest selling

smartphone in Samsung’s history

SWOT Analysis

• Strengths Hardware integration with many open source OS and software

Able to market the brand through innovation, design and multiple sponsorships

High market share in mobile smartphones and its continual growth

Excellence in engineering and producing hardware parts and consumer electronics

Diversification and differentiation of product line to meet changing customer needs

Practice good leadership theory

SWOT Analysis• Weaknesses

Patent infringement

Low profit margin

Main competitors are also large scale buyers

• Opportunities

Growing India’s smartphone market

Growing mobile advertising industry

Growing demand for quality application processors

Growing tablets’ market

Varying products in existing line of business

User friendly technology

SWOT Analysis

• Threats

Rapidly changing technology

Regulating price wars

Saturating smartphone markets in developed countries

Declining margins on hardware production

Facing low cost competition from China (emulation mobile phones)

Handling legal war with Apple and Nokia

Distribution StrategyCompany’s manufacturi

ng units (Noida and Chennai)

C&F Agents (one in each

state)

Franchised Outlets

Retail Chains

Big RetailersDistributers

Small Dealers/ Retailers

Digital Plazas

Digital Homes

Competitive advantage• Products

Technology driven niche products Wide range of products High brand value

• Resources and Facilities Strong infrastructure R&D facility at one single location thus exercising absolute

quality control Financially strong and large resources at disposal Horizontal and vertical integration

• Economics High investment for research & development Higher economies of scale and scope Higher yield than most competitors

• Best Practices Non-traditional human resource practices based on meritocracy

rather than seniority Attractive organizational hierarchy in terms of pay scale,

bonuses and incentives yielding better output

Testing of hypotheses

• List of hypotheseso Samsung has the highest brand awareness in the

smartphone categoryo Samsung smartphones enjoy maximum customer satisfactiono Samsung smartphones have the best battery life

• Sampling detailso Total number of respondents = 50o Process of simple random sampling followed

• Target groupo Approximately within the age group 18 – 35o Preferably smartphone user (questionnaire filters them out)o Mostly peers, friends and ex-colleagues

• Graphso Pie charts o Bar graphs

Analysis of results

Hypothesis 1: Samsung has the highest brand awareness in the smartphone category

Thinking about smartphones, Samsung is the brand which comes to mind most often

Analysis of results

Hypothesis 1: Samsung has the highest brand awareness in the smartphone category

Of the 65% of respondents who currently uses a smartphone, nearly half of them owns a Samsung

Analysis of results

Hypothesis 1: Samsung has the highest brand awareness in the smartphone category

Of the current non-users, though Samsung is the brand majority of them would opt for, interesting insights observed on comparing Nokia and Apple

Analysis of results

Hypothesis 2: Samsung enjoys maximum customer satisfaction in the smartphone class

Nearly half the respondents believe that Samsung smartphones give the best value for

money

Analysis of results

Hypothesis 2: Samsung enjoys maximum customer satisfaction in the smartphone class

Of the positive satisfaction segments, Samsung fares marginally better than the rest in After Sales

Service rankings

Analysis of results

Hypothesis 3: Samsung smartphones have the best battery life

Majority of respondents feel that battery life is most important while buying a smartphone

Analysis of results

Hypothesis 3: Samsung smartphones have the best battery life

Having asked the respondents to rate various smartphone aspects across four competitive brands, Apple fared better

than Samsung when it came to battery life, in terms of positive satisfaction segments

Net Takeaway

Samsung has the highest brand awareness in the smartphone category

Samsung smartphones enjoy maximum customer satisfaction

Samsung smartphones do not have the best battery life

Interesting Trivia• In Korean the word Samsung means “three stars”. The founder

of the Samsung Group wanted to indicate that the company was big, powerful and numerous.

• Since 1993, Samsung Electronics has been the largest producer of memory chips in the world!

• Lee Byung Chull founded Samsung in 1938 as a trading company that dealt in local groceries and had 40 employees. At that point of time it used to produce noodles as well!

• Samsung's construction division built the Burj Khalifa, which is the tallest building in the world.

• Samsung Electronics has 370,000 employees worldwide. (Apple has 80,000. Microsoft has 97,106. GE has 305,000.)

• Samsung says it paid those employees 14.5 billion won, or $12 billion.

Interesting Trivia

• Samsung accounts for 17 percent of Korea's Gross Domestic Product!

• Samsung spent over $4 billion in advertising last year, plus an additional $5 billion in marketing. Its ad budget dwarfs everyone else.

• Samsung's net sales for 2011 were $247 billion. Samsung's electronics division sales were $179 billion. In calendar 2011, Apple did $127.8 billion in sales.

• Samsung Electronics' profit last quarter was $8.27 billion, much of it from smartphones. For comparison, Google's operating profit last quarter was $3.4 billion!

• Samsung shipped 215.8 million smartphones last year, which is more than the next three smartphone sellers (Apple, Nokia and HTC) combined!

• Samsung lists 145 products on its web site under the "cell phones" category (Apple has three phones in two different colors.)!