Presented by: - Group 4

Amit Singh
Anurag Lohokna MOSP PROJECT
Apoorv Agrawal
Apoorva SAMSUNG INDIA
Mudit Arora
Shagun Sahani
ELECTRONICS PVT. LTD.
 Fully owned subsidiary of Samsung Electronics Pvt. Ltd. of South Korea

Largest Consumer Electronics Company in India

Samsung
India Revenue over $8.3 billion

Electronics
Pvt. Ltd. SBU’s in India: Mobile, Home Appliances, TV & AV and Computing

Largest Competitors- LG India, IFB, Whirlpool, Philips

Mission & Vision
Mission
Samsung Electronics mission is to focus on building the brand and
being a creative leader in new markets. Samsung is set to change
its reputation from being fast followers i.e. a company that
succeeds through watching others pioneer new technologies and
markets, to being the pioneer in the industry
Vision
“Inspire the world, create the future”, is Samsung’s mission
statement in its vision for 2020. With this new vision, Samsung
aims to inspire its communities by leveraging its key strength,
innovative products, creative solutions and new technology.
Core Values & Vivid Description
The company goes by 5 core values as following
1. People: They believe, a company is where its people are.
2. Excellence: Everything at Samsung is driven by an unyielding passion for excellence.
3. Change: The company has as a strong belief that change is constant, and innovation is critical to any company’s survival.
4. Integrity: Operating in an ethical way is what their business is made of.
5. Co-prosperity: A business will not be successful unless and until it creates prosperity and opportunity for others.

Vivid Description:
• Achieving the BHAG will position Samsung Electronics as a pioneer in the industry with other competitors eagerly
awaiting its launches so that they can also introduce similar features
• Also, it will be able to leverage its expertise in product innovation for its growth goals and sustainability
• By providing exceptional service to its customers it will create goodwill among them which will help it grow in future
BHAG

Becoming the best Digital

• Becoming the best Digital Electronics Company

electronics company within the

next decade by having more than
$400 billion revenue by 2020: Electronics
Digital
Using Line Management & Company
Creating Industry Leading Production Processes Focus on organization to become
Technological Products &
global technological leader
Services
 Opportunities •Threats
New ‘Triple protection proposition’ technology for •Failure of one product line impacts the other
AC category product lines. Hence, can also result in brand
dilution.
Customized home appliances, making them
geography and weather specific. •Entry of new foreign players. Haier has started
gaining market share in India.
Rapid urbanization and increasing purchasing power
•The demand for LCD panels is expected to decline in
the future

SWOT Analysis:
Home Home
Appliances SBU Appliances SBU

Strengths Weaknesses
•[O1S1] First mover advantage of introducing [T1W1] No product line is independent in itself, as
advance features. they all come under the same brand name.
•[O2S2] Manufacturing plant in India there by [O1W2] Too much dependent on software compared
reducing logistics and supply chain costs. to other players.
•One of the largest manufacturer of TVs
 Opportunities Threats
•Further increasing investment in R&D 1.High competition from local or small players
1.Focusing on mobile advertisements 2.Failure of one product line impacts the other
product lines. Hence, can also result in brand
2.Entering cloud business segment dilution.
3.Increasing presence in emerging markets 3.Patent infringement lawsuits

SWOT
Analysis: Mobile SBU
Mobile SBU

Strengths Weaknesses
•[O1S1] Strong R&D •[T3W3] does not have its own OS and software
•[O4S2] Samsung offers lot of models and options •Self-cannibalization
for every price range hence increasing sales
•[T1S3] Samsung is NO.2 in terms of market share in
mobiles
•[T3S4] Strong patent portfolio
 Economic Logic: How will returns be Arenas: Where is it active?
obtained? Samsung is a pioneer, innovator and manufacturer of TV
Samsung follows skimming pricing, and and AV, Mobile, Home Appliances, and Computing
for smart electronics that fall under through their strong R&D. It has an omni channel
premium category it follows premium presence in tier 1 and tier 2 cities of India and targets
pricing, due to proprietary product customers from lower middle class to HNIs, using the
features. best in class cost structure.

Diamond
Model
Strategy of Vehicles: How will it get there?
Samsung works its way through acquisitions
Samsung (like Medison & Hanson), sponsorships (like
India being the official sponsors for Chelsea &
Olympic technology sponsor), and technology
Staging &Pricing: What will be licensing.
the speed and sequence of moves?
Samsung is focusing on developing
economies through constant R&D
and timely acquisitions
Differentiators: How will we win?
Samsung stands out by widely
engaging in Global Initiatives,
through its sustainability strategies,
Brand Equity and timely
technological advancements in its
diversified product base.
GE McKinsey Analysis: Mobile, TV & AV, Home Appliances and
Computing SBU’s
GE McKinsey Analysis:
Mobile, TV & AV, Home
Appliances and
Computing SBU’s
 Mobile SBU:
Strong Competitive Position with 40% market share and industry growth
of 14% CAGR. Allocation of ₹600 crores to innovate its products and focus
on premium product offerings.
TV & AV:
Strong Competitive Position with 30% market share & industry growth of
6% CAGR. Allocation of ₹500 crores to innovate and launch new products
GE McKinsey Analysis across range to consolidate its position.
Contd. : Household Appliances:
Recommendations Strong Competitive Position & huge industry growth due to low market
penetration. Allocation of ₹750 crores to expand product line and
increase market penetration.
Computing:
Average Competitive Position with limited market share. Industry growth
is low. Allocation of ₹150 crores to maintain position & improve existing
product line.
 Threat of substitutes Barriers to Entry and Exit
Absence of any direct Entry: High economies of scale
substitute Capital intensive, access to tech and
channels
Porter’s Analysis: Low market penetration
(~35%) Exit: High asset specialisation, high
cost of exit with govt restrictions
Refrigerator Segment
Weight Detail Competitive rivalry
% Score
Rivalry among 15.00% Less competitors
Less number of
competitors 2.90 High differentiation
brands in this
High Strategic stakes
Barriers to exit 5.00% 2.10 category
Market leader Less no. of suppliers
Barriers to entry 5.00% Low threat of
3.76 Integration High contribution to
Threat from substitutes 10.00% 3.20 High switching costs (in terms quality
of brands) Less availability of
Bargaining power of 30.00%
substitutes
buyers 3.30
Bargaining power of 10.00% Bargaining power of Buyers Bargaining power of suppliers
suppliers 3.10
Strategy:
Government actions 25.00% 2.10 • Increased spends on R&D and marketing to
Overall assessment 100.00% retain market share
• Focus heavily on distribution in T2&T3
• Work in increasing the size of the category
 Threat of substitutes Barriers to Entry and Exit
Emergence of newer Entry: High brand differentiation
substitutes Selective access to channels
Low switching cost Exit: Moderate asset
Porter’s Analysis: Air Moderate profitability specialisation, low cost of exit

Conditioner Segment
Weight Detail
% Score
Competitive rivalry
Rivalry among competitors 25.00% High (50+ brands)
2.75
Barriers to exit 7.50% Low differentiation
3.40 High number of
Low Strategic stakes
Barriers to entry 7.50% competitors and
2.83 substitutes Fragmented supplier
Threat from substitutes 5.00% High profitability of industry
2.60
buyers Less threat of forward
Bargaining power of buyers 30.00% integration
2.10
Low switching costs
Bargaining power of 15.00%
suppliers 3.20 Threat of Buyers Threat of suppliers
Government actions 10.00%
3.00
Strategy:
• Infuse more funding to the SBU as the industry
Overall assessment 100.00% is poised to grow at 15%
• Market differentiation : Focus heavily on the
B2B arm first
 • Samsung India needs to stay in touch with
changing consumer preferences and offer
innovative products
• Maintain good relationships with customers
and channel partners to maintain service
excellence
Recommendations • Focus on Household Appliances SBU due to low
market penetration in this sector
• Trim product offerings in Computing SBU and
focus only on selective products like SSD’s and
storage solutions
• TV & AV SBU should launch range of OLED TV’s
for premium market ASAP
THANK YOU