Samsung - The Making of a Global Brand

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Case Details:

Case Code : MKTG055
Case Length : 15 Pages
Period : 1998-2003
Pub Date : 2003
Teaching Note : Not Available
Organization : Samsung Electronics Corporation
Industry : Consumers Electronics
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Emerging Giant? Contd...

In spite of the worldwide downturn in 2002, Samsung posted a net profit of 1.7 trillion won² for the third quarter of 2002-03, which was much higher than its net profit of 425 million won in 2001 for the same period.

In 2002-03, Samsung emerged as the number three player in the global cell phone market after Motorola and Nokia. It also emerged as the world leader in the $24.9 billion memory chip market.

According to industry sources, Samsung's innovative advertising strategies, improvements in product design and focus on global markets helped it achieve an increase in earnings over the years.

Background Note

Samsung was established in 1969 as the flagship company of Samsung Corporation (Refer Exhibit II). It was the third largest player in the Korean electronics market after Lucky Goldstar (LG) and Daewoo.³ Samsung achieved fast growth through exports, which constituted around 70% of its total production.

Most of the exports were to the USA on Original Equipment Manufacturer (OEM) basis. It supplied components for high tech industries in the USA. In the early 1970s, Samsung decided to venture into the television market, and in 1972 it started production of black & white television sets for the local market...

Excerpts >>

2] As on March 3^rd 2003, 1 US$ = 1,188.60 Won. (KRW)

3] LG and Daewoo are the largest Korean conglomerates. General Motors bought a stake in Daewoo, when it was liquidated in 2002 due to financial problems.


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