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Page 1: Flare Magazine Story

As a world leader in digital technologySamsung Electronics is progressing into anew era in product development, corpo-rate culture and contributions to the

global society. But it’s hurting to compare Sam-sung’s performance in Pakistan, our telecom sec-tor is spreading its wings across the length andbreadth of the country; cellular subscriberscrossed a bench mark of 114.61million in popula-tion of 188 million with tele-density around 66percent.According to market statistics 2.5 million cell-

phones sell-out in Pakistan every year, in which 50percent market share captured by Chinese hand-sets, Nokia has 35 percent share, Apple got 4 per-cent, other brands have 8 percent share, while theSamsung, who claims worldwide leader get only 3percent in the most lucrative telecom market.On its website, Samsung says, “in order to

achieve our goals, we understand how important itis to build relationships and have full support fromfirst class suppliers. Samsung Electronics is look-ing for potential world-class partners with inno-vative and distinctive technologies forcollaboration & creating new business opportuni-ties. Together with suppliers, we will work to-gether towards a common goal: To be the World'sbest. If you would like to be a partner with Sam-sung Electronics; together we will create the futureof digital experiences”.But, when we look at their performance in the

local market, it seems that, there is a huge vacuumwith reality. The difference between words and ac-tions speak for itself. They are enjoying their deepsleep as their shares going down with each pass-ing day.

According to Federal Bureau of Statistics (FBS)released the import of Samsung handsets figuresfor the month of February 2012 recently. It’s veryshocking to know that Samsung which claimedPakistan’s top selling brand imported just 19,204

handsets in Pakistan. One can imagine that Sam-sung handsets share depicts its popularity andcredibility. There are many reasons but main rea-son of failure is Samsungmanagement in Pakistan.It’s a shock; Samsung is struggling to get some goodcandidates for its Pakistani market. Those who arecurrently running Samsung business are ignorant oflocal market demands and knowledge. They aremere enjoying high salaries but have no interest inboosting themarket share for Samsung in localmar-ket.The head is responsible for managing and con-

trolling the company’s business and day-to-day op-erations with the aim of securing significant,sustained increase in the value of the company.Samsung totally failed to provide good services tothe customers asmajor customers have numbers ofcomplaints regarding sales and services, helplinenon-attendance, inferior quality handsets, etc.The popularity of Chinese handsets in Pakistan is

due to multi-functions, design, low cost and muchmore battery lifetime as compared to Samsung cell-phones,which have lack innovation, high price, poorbattery time and poor service.On the other hand, Nokia still has 35 percent

market-share is the talented localmanagementwithrich native market knowledge.Mobile phone users in Pakistan reached 114.61

million and its population is 180million –higher by2.1 percent than the last year’s. The country’s popu-lation has been growing at a decelerating pace butstill Pakistan has one of the highest population

growth rates in the world. The imports of mobilehandset witnessed growth of 58 percent in the firstquarter of the current fiscal year 2011-12 comparedwith corresponding period of previous fiscal year,reflecting high domestic demands of customers formultiple brands.According to the figures of Federal Bureau of

Statistics (FBS), the expenses ofmobile handsets areon the rise as Rs 14.25 billion were spent on the im-ports of various brands. As per estimates, the hand-set sales have increased to 0.125million handsets onmonthly basis having price range between Rs 1,000to Rs 55,000.According to the dealers the mobile handsets

market is changing its dynamics constantly in thepast three months with number of global and localbranded phones increasing their shares tremen-dously. These include: Apple, Nokia, HTC, LG, ZTEetc, but Samsung is continuously walking on theslippery path, as its shares decliningwith rapid pace,if the top management of the Korean mobile phonemaker fail to decide to change it current manage-ment in Pakistan, it would be no more to survive inthe most promising market in the region.A stitch in time saves nine, if the top executives

of Samsung don’t make their minds to change itsPakistani team, it would be too late to recover theloss, the current localmanagement is really dentingthe image of Samsung in theminds & hearts of Pak-istani mobile lovers. Apple is the new player in themarket and getting its position better and better,while the old player Samsung is losing its feet. �

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Lack of local market skillsSamsung share shrink to 3%According to market statistics 2.5 million cellphones sell-out in Pakistan every year, inwhich 50 percent market share captured by Chinese handsets, Nokia has 35 percentshare, Apple got 4 percent, other brands have 8 percent share, while the Samsung,who claims worldwide leader get only 3 percent in the most lucrative telecom market

It’s very shocking to knowthat Samsung which claimedPakistan’s top selling brand

imported just 19,204handsets in Pakistan; themain reason of failure is

Samsung management; It’sa shock; Samsung is

struggling to get some goodcandidates for its Pakistanimarket, who can kick-off

their operations

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