Essay about Samsung Case

1387 Words Apr 16th, 2012 6 Pages
Table of Contents
Introduction…………………...…………………………………………………...………….…...3
Samsung’s Turnaround Strategy…………………………………………………..………………3 Implications for Marketing………………………………………………..………………5
Strength of the Samsung Brand...........……..…………………………………………………......5 Comparison to Sony: Becoming a Top Ten Global Brand…...…………………………...5
CMO’s Role & Responsibilities…………………………………..…...………………………….6 Building Influence...……………………………………..…...…………………………...7
Conclusion/ Decision ……………......…………...…………………………………………….....7
References…………………………………………………………………………………………8

Samsung Electronics Company: Global Marketing Operations-
Introduction
In the 1990’s Samsung started out as a “third-tier commodity
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However, once the Asian financial crisis hit in 1997, Samsung found themselves with tremendous debts of $15 billion, with negative net profits, due largely to the OEM model that Samsung was operating under. The Asian financial crisis served as a ‘wake up call’ to Samsung, where the company finally recognized that they needed to change their value proposition, and create their own brand, instead of using the OEM’s brand to sell their products. Samsung implemented five key changes between 1998 and 2003, which were instrumental in building a premium brand image of Samsung’s products, and resulted in remarkable growth: • Vertical Integration: Samsung emphasized on manufacturing its own products, instead of outsourcing production to external suppliers • Hardware Focus: concentration on producing hardware and devices, and collaborate with content providers when appropriate. This eliminated the excess costs and challenge for Samsung to protect any software against piracy, since their competitors had to manage that risk. • Product Breadth: Samsung manufactured differentiated electronic devices, such as televisions, cellphones, digital media and appliances, etc. This provided more opportunities for Samsung to dominate as number one in more categories: [pic] • Digital Product Innovation: Samsung quickly entered the digital technology arena, and left the analog technology behind, investing over $2.45

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