Introduction
Samsung is a Korean multinational corporation headquartered in Seoul founded in 1938 by Lee Byung
Chul. The group operates in a variety of industries including food processing, textiles, insurance,
securities, real estate and retail. This is one of the most expensive technology brands in the world today.
The company has a strong influence on the Korean economy, contributing about ⅕ of the country's total
export turnover.
History of SamSung
Samsung was founded by Byung-Chull Lee in 1938 in Taegu, Korea. The company started as a food
exporter in Korea and shipped items like dried fish and flour to China.
Samsung got into other businesses throughout the 1950s and 1960s, including life insurance and
textiles.
Samsung Electronics started in 1969. That division mostly made TVs. Samsung's first black and white TV
went on sale in 1970.
Samsung expanded into even more fields in the 1970s, including petrochemicals. It also started making
washing machines, refrigerators, and microwaves.
Samsung began to focus even more on electronics in the 1980s. The company began producing color
TVs, personal computers, VCRs, and tape recorders. This was also the decade Samsung started exporting
more of its products to North America.
Samsung teamed up with BP in 1989 to form Samsung BP Chemicals. The company sells chemical
products in Korea.
In the early and mid-1990s, Samsung started producing memory and hard drives for use in personal
computers. That's still a big part of Samsung's business today.
According to company legend, one of Samsung's first mobile phones did not work when it came out in
1995. When Samsung's chairman Kun-Hee Lee found out, he visited the factory where the phones were
made and reportedly had the entire inventory burned.
After that initial slip up, Samsung began taking mobile more seriously by the late 1990s. It released one
of its first Internet-ready phones in 1999. Mobile would eventually grow into Samsung's most profitable
business.
In the late 1990s, Samsung made more advances in television. It created the world's first mass-produced
digital TV in 1998. It had a full lineup of digital TVs by 1999.
Samsung began making HD TVs in the early 2000s. It went on to make Blu-Ray players and other home
theater equipment. Today, Samsung makes some of the best HD TVs you can buy.
Samsung introduced its first flagship Android phone, the Galaxy S, at the Mobile World Congress in
2010. The phone is now in its third generation and regarded as one of the best smartphones you can
buy.
Samsung released the Galaxy Tab in the fall of 2010. The 7-inch device was the first mainstream Android
tablet.
Samsung showed off its take on the future of television at the 2013 Consumer Electronics Show. The
company's new Smart TVs suck in programming data from your cable or satellite provider and
recommend shows and movies.
The market of SamSung
1. Consumer Electronics and Home Appliances:Mobile devices: Smartphones,
tablets, smartwatches, and accessories.TVs and audio equipment: QLED TVs,
soundbars, etc.Home appliances: Refrigerators, washing machines, microwave
ovens, air purifiers, and vacuum cleaners.
2. Computing:Laptops and PCs: Including the Galaxy Book series.Computer
monitors.SSDs, memory chips, and other storage solutions.
3. Semiconductors and Components:Memory chips: DRAM, NAND, and
others.Integrated circuits, processors, and chipsets.Display panels: OLED and LCD
for various devices including smartphones, TVs, and more.
4. Network and Communication:Equipment for mobile networks, including 5G
infrastructure.Enterprise network solutions.
5. Industrial and Heavy Industry:Shipbuilding: Samsung Heavy Industries is one of
the world's largest shipbuilders.Construction: Samsung C&T handles various
construction projects, including skyscrapers and infrastructure.Engineering
services, including plant constructions.
6. Energy:Exploration and production of oil and natural gas.Renewable energy
projects, including wind and solar.
7. Financial Services:Insurance: Via Samsung Life Insurance, Samsung Fire & Marine
Insurance, and more.Credit card services through Samsung Card.Asset
management services.
8. Bio and Health:Pharmaceuticals: Samsung Biologics and Samsung Bioepis focus
on biopharmaceuticals and biosimilars.Medical equipment.
9. Retail and Resorts:Samsung operates several resort properties.Duty-free
shopping and retail outlets.
10. Advanced Research:
Samsung Advanced Institute of Technology (SAIT) focuses on future technology,
from AI and robotics to advanced materials.
1. Automotive: Through its acquisition of Harman, Samsung has a stake in the
automotive electronics and infotainment segment.
2. Advertising and Entertainment:
Cheil Worldwide, an affiliate of Samsung, is a major global marketing and
advertising company.
Samsung also has involvement in the entertainment industry in Korea.
SWOT of Samsung
1. Samsung's strengths
- Brand value: To create its position, Samsung has focused on quality and continuously
innovated product technology. The quality factor is always what the group aims to
compete in the technology market. As a result, Samsung is considered the most trusted
electronics brand today.
- Market position in Vietnam: Samsung is the best brand in Vietnam in 2021. The group's total revenue
accounts for 20% of Vietnam's total export turnover. In addition, Samsung Vietnam has provided more
than 170,000 jobs for our country's workers.
- Leading in LCD monitors and televisions: From 2008 to 2020, the group has always maintained its
leading position in LCD screens and televisions. The products provided by this brand receive positive
feedback from consumers. Although there has been a slight decrease in market share in the electronics
sector from 20% in 2008 to 17% in 2019, the leading position has not changed until now.
2. Samsung's weaknesses
- There is no breakthrough compared to competitor products: The following products were
launched without many breakthroughs compared to the old lines. Besides, the company's direct
competitor, Apple, continuously releases unique technology products, making the difference
between the two companies insignificant. This has caused consumers to be confused between
these two electronic companies when buying products.
- Product categories have quite similar names causing confusion: Another weakness of
Samsung is the confusion between product names. For example, Galaxy Z, Galaxy S, Galaxy
Note, Galaxy A, Galaxy M smartphone series have different minor versions according to release
time. This makes users unable to remember all the names of the company's products.
3. Samsung's opportunity
- Low potential competitors: To enter the industry, Samsung's competitors need huge
capital and invest a lot in R&D activities. This is a huge challenge for any business, so
Samsung's potential competitors are very few.
- The birth of 5G technology: Samsung is the first electronics company to launch
a 5G smartphone. Although Apple soon launched the iPhone line that supports
5G, this is still a very potential market for the company.
- The need to use technological equipment is increasing: The Covid pandemic
forced many people to work from home. This causes the demand for phones and
technology devices for work to increase. Even when the epidemic situation is
under control, the trend of working from home is also being pursued by many
companies. Therefore, this is an opportunity for Samsung to gain new potential
customers.
4 . Samsung's Threats
- Covid 19 pandemic: The pandemic has impacted consumer psychology, making
them tend to spend less and consider more before purchasing decisions.
Electronic devices are not essential items, so they will not be a top priority. In
addition, the price of this product is not cheap, so buyers will have to consider
more carefully.
- Competitive: Samsung's competitor is Apple, which continuously
launches advanced product lines that keep up with consumer trends.
This reduces the number of potential Samsung customers . In addition,
low-cost Chinese electronics companies such as Oppo, Vivo, Huawei,
and Xiaomi are also a big challenge to Samsung.
