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Samsung Marketing Strategy 2024: A Case Study

Samsung, a powerhouse in the tech industry, has secured its position as a leading brand through a strategic and innovative marketing approach. From its humble beginnings as a low-tier manufacturing brand, Samsung has transformed its market positioning and branding strategy to become a global leader in technology.

With a strong presence in Forbes’ list of the World’s Largest Tech Companies, Samsung has gained recognition for its digital marketing prowess and commitment to innovation. A closer look at Samsung’s marketing plan reveals a multifaceted approach that encompasses social media engagement, digital marketing campaigns, and a careful utilization of the marketing mix.

Key Takeaways:

• Samsung’s marketing strategy has been instrumental in its rise as a leading tech company.
• The company excels in digital presence, with active social media profiles on major platforms.
• Samsung’s marketing campaigns, such as the #YouMake campaign, offer consumers personalized experiences.
• The marketing mix of Samsung encompasses product diversity, competitive pricing, and strategic promotions.
• A SWOT analysis reveals Samsung’s strengths, weaknesses, opportunities, and threats in the market.

Digital Presence of Samsung

Samsung, a global technology leader, has established a robust digital presence through its strategic marketing efforts. The company recognizes the significance of digital platforms in reaching and engaging with its target audience .

Samsung’s digital marketing strategy revolves around leveraging social media, cultivating a strong social media presence, and utilizing various digital channels to connect with consumers. By maximizing their online visibility, Samsung has effectively captured the attention and interest of millions of consumers worldwide.

One significant aspect of Samsung’s digital presence is its active participation on major social media platforms, including Facebook, Instagram, and YouTube. These platforms serve as crucial touchpoints for the brand to interact with its audience, share product updates, and foster meaningful connections.

Samsung’s Social Media Presence

Facebook: Samsung employs a comprehensive marketing strategy on its Facebook page, catering to a vast user base. With millions of likes and followers, the page offers a platform for Samsung to showcase new products, provide customer support, and promote brand loyalty.

Instagram: Recognizing the visual nature of its products, Samsung maintains an engaging presence on Instagram. Through stunning visuals and creative storytelling, the brand captivates its audience and reinforces its brand image in a visually-driven environment.

YouTube: Samsung’s YouTube channel boasts millions of subscribers. The channel acts as a hub for video content, including product demos, tutorials, and promotional campaigns. With captivating videos, Samsung maximizes its reach and impact, establishing itself as an authority in the tech industry.

By nurturing an active social media presence, Samsung capitalizes on the potential of digital platforms to create an ongoing dialogue with its customers. The brand effectively utilizes the power of social currency, encouraging consumers to share their experiences and further expand Samsung’s reach through user-generated content.

Samsung’s digital presence, reinforced by its social media engagement, allows the brand to stay connected with its customers, build brand advocacy, and drive brand loyalty. The company’s strategic approach to digital marketing ensures that it remains at the forefront of the tech industry, leaving a lasting impression on consumers.

Digital Marketing Campaigns of Samsung

Samsung constantly introduces captivating marketing campaigns to promote its products and engage with its target audience. These campaigns utilize various digital platforms to create impactful and memorable experiences for consumers. Two notable campaigns by Samsung are the #YouMake campaign and the Growing Up commercial.

#YouMake Campaign

The #YouMake campaign by Samsung provides a unique platform for consumers to express their individuality and creativity by customizing their devices. This campaign allows users to personalize their smartphones, tablets, and accessories through innovative design options and virtual benefits. By encouraging users to take an active role in shaping their digital experiences, Samsung effectively taps into the growing trend of personalization and self-expression.

Growing Up Commercial

The Growing Up commercial released by Samsung garnered significant attention as it directly targeted Apple, one of its key competitors. This humorous and relatable commercial showcases the journey of a loyal Samsung user, highlighting the limitations of Apple devices over the years. The commercial struck a chord with the audience and quickly gained popularity on YouTube, further solidifying Samsung’s presence and positioning in the market.

Marketing Mix of Samsung

Samsung follows the marketing mix model, which includes the 4Ps – product, price, place, and promotion. Let’s take a closer look at each element:

Product Mix

Samsung offers a diverse range of products to cater to various consumer needs. The product mix includes mobile phones, tablets, televisions, cameras, refrigerators, and more. Samsung constantly innovates to stay competitive in the market and provides cutting-edge technology in its products.

Samsung adopts different pricing strategies to appeal to different segments of the market. The company utilizes price skimming for high-end products and competitive pricing for its mid-range and entry-level offerings. This strategy helps Samsung capture market share and maintain a strong presence across different price points.

Promotion Mix

Samsung’s promotion mix involves various marketing activities to create awareness and generate demand for its products. The company utilizes advertising campaigns across multiple channels, such as television, print media, and digital platforms. Samsung also employs sales promotions and discounts to incentivize customers to make a purchase.

In terms of place mix, Samsung focuses on an extensive distribution network to ensure its products are readily available to customers. The company works with service dealers, retailers, and e-commerce platforms to reach consumers across different channels. Samsung’s strong distribution network enables it to effectively serve its target market.

SWOT Analysis

A SWOT analysis provides valuable insights into Samsung’s marketing competitiveness by evaluating its strengths, weaknesses, opportunities, and threats. Understanding these factors helps gauge the company’s current position in the market and identify areas for improvement.

• Strong position in the smartphone industry: Samsung is one of the leading players in the global smartphone market, consistently delivering innovative and high-quality products.
• Investment in research and development: The company heavily invests in R&D to drive product innovation, maintain technological superiority, and stay ahead of its competitors.
• Focus on customer-centric management: Samsung prioritizes customer satisfaction and experience, shaping its products and services to meet the evolving needs and preferences of consumers.
• Heavy reliance on American markets: Samsung’s business heavily relies on the American market, making it vulnerable to changes in the economic and political landscape of the region.
• Occurrence of defective products: The company has faced challenges related to the quality and reliability of some of its products, leading to negative publicity and customer dissatisfaction.

Opportunities

• Smartphone industry innovation: Samsung can capitalize on the growing demand for smartphone innovation by introducing new features, designs, and technologies.
• Adoption of advanced technologies: The company has an opportunity to leverage emerging technologies like 5G, artificial intelligence, and Internet of Things (IoT) to enhance its product offerings and create new market segments .
• Competition from competitors: Samsung faces intense competition from rivals such as Xiaomi, Apple, and Huawei, who constantly strive to capture market share and attract consumers with their own compelling products.
• Potential controversies: The tech industry is susceptible to controversies, including privacy concerns, data breaches, and regulatory challenges. Such issues can impact Samsung’s reputation and erode consumer trust.

By analyzing these factors, Samsung can strategically capitalize on its strengths, address weaknesses, leverage opportunities, and mitigate threats to maintain its position in the market.

Results of Samsung Marketing Strategy

Samsung’s marketing strategy has been instrumental in its continued success. Through its strategic marketing efforts, the company has achieved significant revenue growth and increased brand value.

In the span of just 9 years, from 2009 to 2018, Samsung’s revenue skyrocketed from $119 billion to an impressive $218 billion. This remarkable growth can be attributed to the company’s effective marketing campaigns and strong market positioning .

Furthermore, Samsung’s brand value has experienced a substantial increase, reaching USD 74.6 billion. This represents a remarkable 20% rise compared to the previous year, solidifying Samsung’s position as a global leader in the tech industry.

Samsung Revenue Growth (2009-2018)

These impressive results are a testament to the effectiveness of Samsung’s marketing strategy and its ability to connect with consumers on a global scale. By consistently delivering innovative products and leveraging its brand equity, Samsung has established itself as a frontrunner in the tech industry.

The continued success of Samsung’s marketing strategy is vital in ensuring the company’s sustained growth, solidifying its position as a global leader, and maintaining its strong brand value.

Samsung’s marketing strategy has been instrumental in the company’s tremendous success and strong brand value. Through its digital marketing tactics , significant social media presence, and impactful marketing campaigns, Samsung has not only established itself as a leading tech company but also effectively attracted and retained a loyal customer base. By constantly adapting to market trends , investing in research and development, and prioritizing customer needs, Samsung has been able to achieve remarkable growth and profitability.

With a strong focus on digital marketing, Samsung has effectively utilized various platforms to engage with its audience. The company’s active presence on social media platforms such as YouTube, Facebook, and Instagram has allowed it to connect directly with customers, garnering millions of followers and likes. By leveraging the power of social currency, Samsung has successfully encouraged customers to share their experiences, increasing brand visibility and fostering a sense of community.

Furthermore, Samsung’s marketing campaigns have been impactful and memorable. The #YouMake campaign, for instance, has provided customers with the opportunity to customize their devices, allowing them to participate in virtual benefits and creating a sense of personalization. Additionally, the Growing Up commercial targeted Apple and gained significant popularity on YouTube, effectively positioning Samsung as a viable alternative in the competitive market.

As a result of its effective marketing strategy, Samsung has experienced impressive revenue growth and increased brand value. The company’s revenue has seen a substantial increase from $119 billion in 2009 to $218 billion in 2018. Moreover, Samsung’s brand value currently stands at $74.6 billion, representing a 20% increase compared to the previous year. This growth is a testament to Samsung’s ability to consistently deliver innovative products and meet the evolving needs of its customers.

What is the focus of Samsung’s marketing strategy?

Samsung’s marketing strategy focuses on social media presence, digital marketing campaigns, and the use of the marketing mix.

How does Samsung maintain its digital presence?

Samsung has active social media profiles on major platforms like Facebook, Instagram, and YouTube, where they engage with customers and encourage them to share their experiences.

What are some of Samsung’s successful marketing campaigns?

Samsung’s #YouMake campaign allows consumers to customize their devices, while the Growing Up commercial targeted Apple and gained popularity on YouTube.

What does Samsung’s marketing mix include?

Samsung’s marketing mix includes product, price, place, and promotion. They offer a diverse range of products, employ competitive pricing strategies, focus on distribution through service dealers, and use various advertising and sales promotion techniques.

What are some of Samsung’s strengths and weaknesses in terms of marketing?

Samsung’s strengths include a strong position in the smartphone industry, investment in research and development, and customer-centric management. Weaknesses include heavy reliance on American markets and the occasional occurrence of defective products.

How has Samsung’s marketing strategy contributed to its success?

Samsung’s marketing strategy has helped drive significant revenue growth and increased brand value. The company’s revenue grew from $119 billion in 2009 to $218 billion in 2018, with a 20% increase in brand value.

What is the key to Samsung’s growth and profitability?

Samsung’s ability to adapt to market trends, invest in research and development, and focus on customer needs has been key to its growth and profitability.

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Samsung’s Marketing Strategy Explained

Samsung, a South Korean multinational conglomerate, has established itself as a global leader in various industries, including electronics, appliances, and mobile communications. Its marketing strategy is a fascinating study of innovation, brand positioning, and customer engagement. Here’s a detailed look at how Samsung’s marketing strategy sets it apart in a highly competitive market:

Understanding the Market and Audience

Samsung’s marketing strategy begins with a deep understanding of its market and audience, a key factor that has propelled it to become a global leader in various industries. The key to  this approach lies in its diverse product range, which allows Samsung to cater to a wide array of consumers. From budget-friendly smartphones to high-end electronics, Samsung has designed its product portfolio to appeal to both cost-conscious buyers and those seeking premium, high-tech experiences. This broad spectrum of products enables Samsung to penetrate different market segments effectively.

The company’s global reach is further strengthened by its ability to implement localized strategies. Recognizing that consumer preferences vary greatly across different regions, Samsung adapts its marketing tactics to suit the cultural, economic, and social dynamics of each market. For example, in technologically advanced markets like South Korea and the USA, Samsung might emphasize its latest innovations and high-tech features. In contrast, in emerging markets, the focus might shift towards offering more cost-effective solutions without compromising on quality. This localized approach is not just about tweaking the product offerings but extends to advertising campaigns, customer service, and even the retail experience, ensuring that every touchpoint resonates with the local audience.

This deep market understanding and adaptation are not static but a continuous process. Samsung actively monitors market trends, consumer behaviors, and emerging technologies to refine its strategies. By staying attuned to the shifting landscapes of the global market and maintaining a flexible approach to its marketing strategies, Samsung not only meets but often anticipates the needs and preferences of its diverse customer base. This proactive stance is a testament to Samsung’s commitment to understanding and engaging with its audience, laying a solid foundation for its enduring market presence and success.

Innovation and Technology Leadership

Samsung’s position as a leader in innovation and technology is a pivotal aspect of its marketing strategy, setting it apart in a highly competitive industry. The company’s commitment to delivering cutting-edge products is evident in its significant investment in research and development. This investment ensures that Samsung’s offerings, from the latest Galaxy smartphones to state-of-the-art QLED TVs and smart home appliances, are equipped with innovative features that enhance the user experience and offer tangible benefits.

The core of Samsung’s technological leadership is not just in the advanced features of its products but also in the underlying research and development that drives these innovations. Samsung’s extensive patent portfolio, a clear indicator of its focus on technological advancements, plays a crucial role in maintaining its competitive edge. These patents are not merely for show; they represent real, tangible advancements in technology that directly translate into improved product offerings. This focus on technological innovation helps Samsung to not only meet but often exceed customer expectations, reinforcing its position as a leader in the tech industry.

Samsung’s approach to technology and innovation goes beyond mere product development. It’s about shaping the future of technology and setting new industry standards. By continually pushing the boundaries of what’s possible, Samsung has positioned itself at the forefront of technological advancements. This leadership is not just about being the first to market with new technologies but also about ensuring that these technologies are accessible and beneficial to a broad range of consumers.

Through its commitment to innovation and technological leadership, Samsung has created a brand identity that resonates with consumers who value cutting-edge technology and innovation. This strategy has not only helped Samsung in cementing its position in the market but also in building a loyal customer base that eagerly anticipates each new release, trusting that it will bring something new and exciting to the table.

Samsung’s Brand Positioning and Advertising

Samsung’s prowess in brand positioning and advertising is a key element of its marketing strategy, effectively differentiating it in a crowded marketplace. The company has skillfully crafted a brand image that resonates emotionally with its audience. Samsung’s advertisements often go beyond showcasing product features, delving into the emotional impact of technology in connecting people and enhancing daily life. This strategy of emotional branding makes Samsung more than just a manufacturer of electronics; it positions the brand as an integral part of people’s lives, enhancing and enriching their everyday experiences.

Celebrity endorsements and sponsorships also play a significant role in Samsung’s brand strategy. By associating with well-known personalities and major global events, such as the Olympics, Samsung enhances its visibility and appeal, particularly among younger demographics. These partnerships do more than just attract attention; they imbue the brand with a sense of prestige and aspiration. When consumers see their favorite celebrities using Samsung products or the brand being showcased at high-profile events, it creates a connection that goes beyond the product itself. This connection is key to building a brand identity that is both aspirational and relatable.

Samsung’s advertising strategies are not only diverse but also innovative. The company has a knack for creating campaigns that are both visually stunning and emotionally engaging. These campaigns are designed to tell a story, one that invites the audience to envision themselves as part of the Samsung experience. It’s a strategy that moves beyond traditional marketing tactics, building a narrative around the brand that consumers can connect with on a personal level.

Through a blend of emotional branding, strategic partnerships, and innovative advertising , Samsung has successfully positioned itself as a premium yet accessible brand. This approach has enabled Samsung to build a strong brand identity, one that appeals to a wide range of consumers and stands out in a highly competitive market. As Samsung continues to innovate and adapt its advertising strategies, it will be interesting to see how the brand evolves to meet the changing needs and expectations of its consumers.

Customer-Centric Approach

At the heart of Samsung’s marketing strategy is a customer-centric approach, emphasizing the importance of understanding and fulfilling consumer needs. This focus on the customer has been instrumental in shaping Samsung’s products and services, ensuring that they not only meet but often exceed consumer expectations. The company’s commitment to customer satisfaction is evident in how it incorporates feedback into product development, resulting in products that are not just technologically advanced but also tailored to the needs of the user.

Samsung’s understanding of consumer needs extends beyond the functionality of its products. The company recognizes that customer experience plays a crucial role in brand loyalty and retention. Therefore, it invests heavily in customer service, providing efficient and responsive support. This commitment to after-sales service is not just about resolving issues; it’s about building a relationship with the customer, one that fosters trust and loyalty. This approach helps Samsung in not just acquiring new customers but also in retaining existing ones, a critical factor in today’s competitive market.

Another key aspect of Samsung’s customer-centric approach is its attentiveness to market trends. The company actively monitors changing consumer behaviors and preferences, adapting its products and marketing strategies accordingly. This agility allows Samsung to stay ahead of the curve, anticipating and responding to consumer needs in a timely and effective manner. It’s not just about reacting to the market; it’s about leading it, setting trends that others follow.

Samsung’s customer-centric approach is a multifaceted strategy that encompasses product development, customer service, and market adaptability. By placing the customer at the center of its business, Samsung has not only established itself as a market leader but also as a brand that consumers trust and rely on. This approach has been pivotal in driving Samsung’s success and will continue to be a key factor in its future growth and market dominance.

Digital Marketing and Social Media Presence

Samsung’s digital marketing and social media presence form a cornerstone of its comprehensive marketing strategy. In today’s digital age, where social media influences consumer decisions more than ever, Samsung has adeptly harnessed these platforms to enhance its brand visibility and engagement. The company’s social media campaigns are a blend of creativity and interaction, designed to engage with a tech-savvy audience that values innovation and connectedness.

A key aspect of Samsung’s digital strategy is its active and dynamic presence on various social media platforms. From Facebook and Instagram to Twitter and YouTube, Samsung leverages these channels to showcase its latest products, share news, and interact with customers. These platforms are not just for broadcasting content; they are avenues for two-way communication where Samsung listens to customer feedback, answers queries, and engages in conversations. This active engagement helps build a community around the brand, fostering a sense of loyalty and belonging among its customers.

Samsung’s digital marketing is characterized by its innovative use of content. The company creates a wide range of content, from product announcements and reviews to engaging storytelling and interactive posts. This content is carefully crafted to resonate with Samsung’s diverse audience, ensuring that it is not only informative but also entertaining and relatable. By providing a mix of content types, Samsung keeps its audience engaged and interested, constantly reinforcing its brand presence in their digital lives.

Collaborations with influencers are another strategic component of Samsung’s digital marketing. These influencers, with their substantial followings on various social media platforms, help Samsung reach a broader audience. They provide a human touch to Samsung’s products, showcasing how they can be used in everyday life. This influencer marketing is particularly effective in reaching younger consumers who often look to social media influencers for product recommendations and insights.

Samsung also excels in using digital platforms for targeted advertising. By leveraging data analytics and consumer insights, Samsung ensures that its digital ads reach the right audience with the right message. This targeted approach ensures a higher engagement rate, making its advertising campaigns more effective and efficient.

Samsung’s digital marketing and social media strategy is a sophisticated mix of engagement, content creation, influencer partnerships, and targeted advertising. This multi-faceted approach has enabled Samsung to not only connect with its existing customer base but also to attract new customers, keeping the brand relevant and prominent in the ever-evolving digital landscape.

Samsung’s Marketing Strategy in Summary

Samsung’s marketing strategy is a blend of technological innovation, strong brand positioning, customer-centric practices, and effective use of digital platforms. By understanding and adapting to market trends and consumer preferences, Samsung has managed to stay ahead in the highly competitive electronics and tech industry. 

• Diverse Product Range: Offers a wide array of products to cater to different market segments, from budget to premium consumers.
• Localized Marketing: Adapts strategies to fit the cultural, economic, and social nuances of each global market.
• Innovation Focus: Heavy investment in research and development to provide cutting-edge technology and advanced features in products.
• Patent Portfolio: Holds numerous patents, emphasizing its commitment to technological advancement and innovation.
• Emotional Branding: Uses emotional connections in advertising to make the brand more relatable and appealing.
• Celebrity Endorsements and Sponsorships: Collaborates with celebrities and sponsors major events to enhance brand visibility and appeal.
• Customer-Centric Approach: Prioritizes understanding and meeting customer needs, and maintains strong after-sales support for customer retention.
• Market Adaptability: Continuously monitors and adapts to changing market trends and consumer behaviors.
• Active Social Media Engagement: Utilizes social media platforms for customer engagement, brand promotion, and community building.
• Influencer Collaborations and Targeted Advertising: Partners with influencers for broader reach and employs targeted digital advertising for effective marketing campaigns.

Samsung's Marketing Strategy: How Samsung became a Pioneer in the Electronics Industry despite all odds

Learn about samsung's iconic marketing strategy and advertising campaigns. read how samsung aces the 4ps of marketing mix - product, price, promotion & placement..

• overview#goto" data-overview-topic-param="history">Foundation of Samsung Electronics
• overview#goto" data-overview-topic-param="mix">Samsung's Marketing Mix
• overview#goto" data-overview-topic-param="notable">Notable Marketing Campaigns
• overview#goto" data-overview-topic-param="digital">Digital Marketing Campaigns

Samsung is a global tech giant specializing in the consumer and industrial electronics industry. It has emerged as a pioneer in the electronics industry with innovative products, ingenious marketing strategies, and cutting-edge technology. Samsung ranks second in the top 10 consumer electronics companies worldwide by sales, despite facing massive competition from mammoth brands like Apple, Microsoft, and Sony.

How did Samsung reach the top position in such an impenetrable industry? Let’s uncover Samsung’s Marketing Strategy with a detailed study of its cunning marketing mix and bold digital marketing campaigns.

Foundation of Samsung Electronics & Evolution of its Mobile Phones

Samsung is a family-owned conglomerate from South Korea. In 1938, Lee Byung-Chul founded a grocery trading company known as Samsung trading company. The name Samsung means Three Stars representing its vision to become powerful and everlasting like stars. In the following two decades, Samsung ventured into the banking, manufacturing, insurance, and retail industries.

The monolithic Samsung Electronics we know today, came into being in 1969 when it took its first steps in the consumer electronics industry. Samsung became a business partner with Sanyo Lab to produce low-cost TVs and microwave ovens. It also started producing mobile phones which saw a paramount failure due to their low quality and extreme customer dissatisfaction.

Following this fiasco, Samsung decided to switch gears instead of giving up. It shifted its marketing strategy from being a low-tier manufacturing brand to a company building products with revolutionary technology and innovative features. This was Samsung’s “Do what you can’t” moment, which made them the most profitable tech company to ever exist.

In June 2009, Samsung launched its first smartphone Galaxy GT-17500, which was received exceptionally well by the market. Its quality was claimed to be as great as those of smartphones by well-established brands. Since then, Samsung electronics has produced dozens of smartphones, each outperforming its predecessor with eccentric new features and enhanced system upgrades.

As of 2022, it ranks sixth on the Brand Global Value list with a brand value of US$107.3 billion .

Now that we are aware of the influential origin of one of the most valuable brands, let’s unearth Samsung marketing strategy and digital marketing secrets.

Source: Phone Arena

Samsung's Marketing Mix Strategy

Marketing mix elements are crucial marketing vehicles to make strategic decisions about a product’s launch and promotion. Samsung’s Marketing Mix plan focuses on wide-ranging high-quality products sold in e-commerce and retail stores at a premium or competitive price based on demand. It uses advertisements, content marketing, sales promotions, event experiences, and digital campaigns to publicize and hype its products.

Let's analyze their marketing mix using 4P analysis:

Samsung marketing strategy is to identify developments in the market trends, adapt to dynamic changes, and produce products that the target market demands. Samsung is a customer-centric brand with a diverse product offering in the consumer electronics industry.

Samsung’s competitive advantage is its cutting-edge technology, cost-effectiveness, innovative research, and unparalleled product features.

Its product range includes smartphones and related accessories, smart TV, watches, tablets, plasma TV, monitors, and memory storage. Recently, Samsung expanded into the kitchen and home appliances producing air conditioners, washing machines, cooking appliances, etc.

Samsung’s strength is that it can meet your every electronic device need while keeping your pocket happy. It accounts for a whopping one-sixth of South Korea’s total exports.

Among recent supply chain crises and high demand for memory chips, Samsung outperformed its competitors, gaining high corporate sales and revenue in the chip manufacturing industry. Samsung is truly a high-quality brand worthy of recognition bestowed upon it.

Samsung's marketing strategy is not immune to failures either.

Samsung's weakness is its history of producing faulty mobile devices, including an exploding Galaxy Note 7 and a malfunctioning foldable phone. In addition, Apple has filed a patent infringement lawsuit against the company. It is also in controversies with other competitors for design thefts.

Still, Samsung has the potential to achieve tremendous development if it steers clear of such mishaps in the future.

Source: Connection

Samsung is a pricing expert. They operate in a highly competitive smartphone industry where competitors devise products with identical features within weeks. In defense, Samsung's marketing strategy has to be swift enough to deflect all blows.

The two pricing schemes used by Samsung are:

Price skimming tactic

Competitive Pricing

When the company launches a new smartphone, it values the product at the highest price the customers are willing to pay. Over time as the shine fades and its competitors launch identical products, Samsung lowers its product prices using a competitive strategy to retain market share.

Samsung’s promotion strategy uses a blend of print and digital advertisements, events experiences, and content marketing to promote its hottest product and establish a strong brand image. The message of its digital campaigns is out-of-the-box and bold.

As a part of its promotion mix, Samsung is omnipresent on major social media platforms, connecting and interacting with its customers through organic and paid social media marketing. Samsung's competitive strategy for sales promotions includes incentives and discounts.

Even after being a notable name in the Asian market, Samsung relies heavily on the American market. Samsung spent nearly $2.3 billion on advertising in the USA alone in 2021.

Source: Grab On

Samsung’s e-commerce store has an easy-to-use user interface, detailed product categorization, and thorough descriptions. Customers can buy any electronic device from the comfort of their homes.

Otherwise, Samsung is a single distribution business selling to only service dealers and brand-owned stores. Samsung prides its customer care front, positioning itself as a brand with attentive, committed, and fast service dealers in every nook and corner of the world.

Source: Samsung

Source: Sam mobile

Samsung Marketing Strategy - notable marketing campaigns

Innovation, change, and smart branding are the cornerstones of the Samsung marketing strategy. Samsung's integrated marketing model uses a mix of various marketing campaigns like influencer marketing, content marketing, and search engine marketing. Samsung dives into the world of social platforms, identifies where brand-relevant conversations are happening, and collects data about its user base as to how they use Samsung products and their perception of the brand.

Influencer Marketing Strategy

As a part of its marketing strategy, Samsung has partnered with global celebrities to leverage its social positioning and large fan base. This enables the company to retain its market leader image.

World-renowned boy band BTS are Samsung's brand ambassador since 2021, giving the brand exposure to its massive fan base.

Samsung launched the Blackpink edition for their Galaxy A80 to appeal to their mighty fan base Blinks.

Social Media Marketing Strategy

Samsung has a social media presence on major social networks to keep an eye on the goings-on in and around the smartphone market. Their engaging social media content centers around product promotions and user interaction.

Samsung's YouTube channel has 6.27M subscribers, with individual subsidiary channels for different countries.

Samsung's Facebook page has a massive following of 46M users.

Samsung's Instagram profile, filled with visually appealing posts, has 1.2M followers.

Samsung's TikTok profile has an engaging audience of over 2M followers garnering 11.6M likes.

Search Engine Marketing Strategy

Samsung's website is SEO optimized to rank on the first page of Google. Its domain authority has an exceptional score of 94 with Samsung Galaxy S22 Ultra keyword ranking at the top after Samsung.

Source : Moz

Digital marketing campaigns

Samsung marketing strategy is thriving because of its unafraid stance for its beliefs, risk-taking attitude, and inspirational messaging. Samsung's digital marketing tactics focus on user interaction with Samsung devices.

Samsung marketing strategy for digital media focuses on the following three pillars:

How the user interacts with their device implanting it in their life.

How the device makes their life easier. 

How users can communicate with their loved ones using Samsung products building positive emotional relationships.

Here are Samsung's top noteworthy digital campaigns:

Growing up Campaign

Samsung's Growing up campaign was a direct jab at its main competitor Apple ’s shortcomings like low storage, high battery drainage, no water resistance, and need for adapters.

Ingenious Campaign

As the idea was a huge success, Samsung launched a similar concept named the Ingenious campaign. It took shots at Apple's disadvantages while comparing it to Galaxy S9. The message was that Apple's superior products don't live up to their name.

India, Ready, Action! Campaign

Samsung India, ready, action! campaign urges Indians to break the stereotypes against them, and share the real India.

Olympic movement Campaign

Samsung has been an Olympic partner for more than two decades. Through its Olympic movement, Samsung has enabled fans to engage in real-time with immersive game experiences and celebrate the Olympic spirit together.

Smartphone line Campaign

The Smartphone line was an effort to create a digital line for Galaxy S4 instead of a physical line outside stores. Fans had to share which features they were most excited about. The more those posts were liked and re-shared, the closer they got to the front of the line.

Join the flip side Campaign

Join the flip side ad campaign starts with the line “I would never switch to Samsung, I love my phone”, a probable jab at Apple's brand loyalists who cannot fathom the idea of switching to another smartphone brand. 

Do what you can't Campaign

The do what you can’t campaign inspires people to do what can’t be done.

Look at me Campaign

Samsung marketing strategy is in tune with social issues. Its Look at me app helps children with autism develop communication skills through eye contact and interpreting facial expressions.

Samsung prioritizes relationships before its products. They position themselves as a brand that helps users live comfortably and builds society into a better place. Through customer-centric and socially conscious marketing, Samsung has emerged as a global electronics powerhouse building a better future together for tomorrow .

If you are building a consumer technology business, you can explore marketing mix of Apple and Boat to know more.

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Remarkable Recovery: Samsung Crisis Management Case Study

Have you ever wondered how a global tech giant like Samsung managed to navigate a major crisis and bounce back stronger? 

In the world of corporate governance, effective crisis management can be the difference between irreparable damage to a company’s reputation and a successful recovery. 

In this blog post, we delve into a Samsung crisis management case study to learn about exploding batteries to the intricate strategies employed to restore trust.

Samsung’s journey offers valuable insights into the intricacies of crisis management in the digital age. 

Join us as we explore the key lessons learned and best practices from this high-stakes situation, shedding light on the remarkable recovery efforts that propelled Samsung forward.

Let’s learn about sailing through tough times through Samsung crisis management case study

Background of Samsung History and growth of Samsung as a global conglomerate 

Samsung, founded in 1938 by Lee Byung-chul, started as a small trading company in South Korea. Over the years, it steadily expanded into various industries, such as textiles, insurance, and retail.

In the 1960s, Samsung ventured into electronics, marking the beginning of its transformation into a global conglomerate.

With a focus on technological innovation and a commitment to quality, Samsung rapidly gained recognition for its consumer electronics products, including televisions and appliances.

Throughout the 1980s and 1990s, Samsung significantly diversified its business portfolio, entering the semiconductor, telecommunications, and shipbuilding industries.

This diversification strategy helped Samsung become a key player in multiple sectors, solidifying its position as a global leader. Notably, Samsung’s semiconductor division became one of the largest chip manufacturers in the world, supplying components to various electronic devices worldwide.

Samsung’s ascent continued in the 2000s, driven by its successful expansion into the mobile phone market. The introduction of the Galaxy series, powered by the Android operating system, catapulted Samsung to the forefront of the smartphone industry.

The company’s innovative designs, cutting-edge features, and aggressive marketing campaigns contributed to its rise as a major competitor to Apple’s iPhone.

With its global reach, Samsung has consistently ranked among the world’s largest technology companies, epitomizing South Korea’s economic prowess and technological advancements.

Samsung has also been considered one the best companies that successfully managed and implemented change initiatives.

Overview of Samsung’s position in the technology industry

In the consumer electronics segment, Samsung has established itself as a dominant force. Its diverse product lineup encompasses televisions, smartphones, tablets, wearables, home appliances, and audio devices.

The Galaxy series of smartphones, in particular, has enjoyed immense popularity and has emerged as a fierce competitor to other industry giants. Samsung’s televisions are also highly regarded for their cutting-edge display technologies, such as QLED and MicroLED.

The company’s advancements in semiconductor technology have contributed to faster computing speeds, increased storage capacities, and improved energy efficiency.

Samsung’s influence extends beyond consumer electronics and semiconductors. The company is actively involved in telecommunications infrastructure, including the development of 5G networks and the production of network equipment.

Samsung has also made notable strides in the realm of software solutions, including its own mobile operating system, Tizen, and various software platforms for smart devices.

Samsung Galaxy Note 7 Crisis

The Note 7 battery issue marked a significant crisis for Samsung, leading to a widespread recall of the flagship smartphone and causing considerable damage to the company’s reputation.

The crisis began in September 2016 when reports emerged of Note 7 devices catching fire or exploding due to faulty batteries. These incidents raised concerns about consumer safety and triggered a wave of negative publicity for Samsung.

Upon receiving initial reports of battery-related incidents, Samsung initially responded by issuing a voluntary recall of the Note 7 in September 2016. The company acknowledged the problem and expressed its commitment to addressing the issue promptly and effectively.

Samsung attributed the battery malfunctions to a manufacturing defect, specifically a flaw in the design that caused a short circuit.

To ensure customer safety, Samsung advised Note 7 owners to power down their devices and refrain from using them. The company swiftly implemented measures to exchange the affected devices, offering customers the option to either replace their Note 7 with a new unit or receive a refund.

Samsung also collaborated with mobile network operators and retail partners to facilitate the recall process.

In its initial response, Samsung took steps to communicate with customers and the public about the issue. The company published official statements expressing regret for the inconvenience caused and assuring customers of its commitment to resolving the problem. Samsung emphasized its dedication to quality and safety, promising to conduct thorough investigations and implement necessary improvements to prevent similar incidents in the future.

Media coverage and public perception during the crisis

During the Note 7 crisis, media coverage played a significant role in shaping public perception and amplifying the negative impact on Samsung’s brand.

The crisis received extensive coverage from both traditional media outlets and online platforms, leading to widespread awareness and public scrutiny. Here’s an overview of media coverage and its influence on public perception:

• News Outlets: Major news organizations across the globe reported on the Note 7 battery issue, highlighting incidents, the recall, and subsequent developments. Television news segments, newspapers, and online news articles extensively covered the crisis , emphasizing the potential safety risks and consumer concerns. The constant media attention contributed to the widespread dissemination of information and increased public awareness of the issue.
• Online Platforms and Social Media: Social media platforms played a pivotal role in the crisis, enabling the rapid spread of information and user-generated content. Users took to platforms such as Twitter, Facebook, and YouTube to share their experiences, express concerns, and criticize Samsung’s handling of the situation. Viral videos, photos, and personal accounts of Note 7 incidents gained traction, further fueling negative sentiment and influencing public perception.
• Expert Analysis and Opinions: Alongside news coverage, experts and industry analysts provided their insights and opinions on the crisis. Their assessments of Samsung’s response, the potential causes of the battery issue, and the implications for the company’s brand reputation contributed to the overall narrative. Expert opinions had the power to sway public perception and shape the understanding of the crisis.
• Consumer Forums and Discussion Platforms: Online forums and discussion boards dedicated to technology and consumer experiences became hubs for discussions surrounding the Note 7 crisis. Consumers shared their frustrations, exchanged information, and warned others about potential risks. These platforms served as gathering places for individuals affected by the crisis and amplified the negative sentiment surrounding Samsung’s brand.

Financial implications and losses incurred by Samsung

The Note 7 crisis had significant financial implications for Samsung, resulting in substantial losses for the company. Here are some of the key financial impacts experienced by Samsung as a result of the crisis:

• Recall and Replacement Costs: The recall and replacement process incurred significant costs for Samsung. The expenses involved in collecting and replacing over 2 million of Note 7 devices, including logistics, shipping, and refurbishment, were substantial. The costs also encompassed the testing and certification of replacement devices to ensure their safety. The total recall cost was estimated at $5.3 billion.
• Decline in Sales and Market Share: The crisis had a detrimental impact on Samsung’s sales and market share in the smartphone industry. As consumer confidence in the Note 7 and Samsung’s brand reputation declined, potential buyers shifted their preferences to alternative smartphone options. The decline in sales of the Note 7, coupled with the negative impact on the perception of other Samsung products, led to a loss of market share for the company.
• Stock Price Decline: The Note 7 crisis had an immediate impact on Samsung’s stock price. News of the battery issue, recalls, and subsequent negative media coverage led to a decline in Samsung’s stock value. Samsung shares fell approximately to 7 percent right after 2 months of the crisis.

Crisis Management Strategy Employed by Samsung

Following are the key aspects of Samsung Galaxy Note 7 crisis management strategy:

Immediate actions taken by Samsung to address the crisis

In the face of the Note 7 crisis, Samsung swiftly implemented a range of immediate actions to address the situation and mitigate the impact on consumers and the company’s brand reputation. Here are some of the key actions taken by Samsung:

• Voluntary Recall: As soon as reports of battery issues emerged, Samsung initiated a voluntary recall of the Note 7. This proactive step demonstrated the company’s commitment to consumer safety and willingness to take responsibility for the problem.
• Temporary Production Halt: To address the root cause of the battery issue, Samsung temporarily halted production of the Note 7. This decision aimed to prevent further distribution of potentially defective devices and allow for thorough investigations and corrective measures.
• Transparent Communication: Samsung made efforts to communicate openly and transparently about the crisis. The company issued official statements and press releases acknowledging the problem, expressing regret for the inconvenience caused, and reassuring customers of its commitment to resolving the issue. Transparent communication was crucial in maintaining trust and providing timely updates to affected consumers.
• Collaboration with Authorities: Samsung collaborated closely with regulatory authorities and industry experts to investigate the battery issue comprehensively. By engaging external expertise, the company aimed to identify the root cause and develop effective solutions. This collaboration demonstrated Samsung’s commitment to finding the best possible resolution.
• Customer Support and Safety Guidelines: Samsung provided clear instructions to consumers regarding the use of Note 7 devices, emphasizing the importance of safety. The company advised customers to power down their devices, participate in the recall, and utilize alternative devices in the interim. This approach prioritized customer safety and aimed to prevent further incidents.
• Increased Battery Testing and Safety Measures: Samsung implemented enhanced battery testing procedures and stringent safety measures to prevent similar incidents in the future. The company adopted more rigorous quality control processes, including additional safety certifications and testing standards, to ensure the highest levels of product safety.

Communication strategies employed by Samsung

Samsung employed various communication strategies to address the Note 7 crisis and manage the impact on its brand reputation. Effective communication was crucial in maintaining transparency, addressing consumer concerns, and rebuilding trust. Here are some of the communication strategies employed by Samsung:

• Official Statements and Press Releases: Samsung issued official statements and press releases to provide updates on the progress of the recall, investigations, and corrective actions. These statements expressed remorse for the inconvenience caused and reiterated the company’s commitment to customer safety. Clear and concise communication helped keep customers informed and reassured them that Samsung was actively working to resolve the issue.
• Direct Customer Communication: Samsung directly communicated with customers to provide instructions and updates on the recall process. The company utilized various channels such as email, SMS messages, and notifications through its official website and smartphone apps. This direct communication ensured that customers received important information and guidance regarding the recall and replacement program.
• Social Media Engagement: Samsung actively engaged with customers and the public on social media platforms, including Twitter, Facebook, and YouTube. The company responded to customer queries, addressed concerns, and provided updates on the progress of the recall. By engaging in two-way communication, Samsung demonstrated its willingness to listen, respond, and provide assistance to affected customers.
• Collaboration with Industry Experts: Samsung collaborated with industry experts, battery manufacturers, and regulatory authorities to investigate the root cause of the battery issue. This collaboration was communicated to the public, showcasing Samsung’s commitment to finding solutions and ensuring that the necessary expertise was involved in resolving the crisis.
• Advertisements and Marketing Campaigns: Samsung launched advertising and marketing campaigns focused on rebuilding trust and emphasizing its commitment to quality and safety. These campaigns highlighted Samsung’s dedication to addressing the issue and regaining consumer confidence. Advertisements often emphasized the company’s rigorous testing procedures and quality control measures to assure customers of the safety of its products.
• CEO Apology: Samsung’s CEO issued a public apology, taking personal responsibility for the crisis and expressing regret for the inconvenience and concern caused to customers. The CEO’s apology aimed to convey sincerity, empathy, and a commitment to rectifying the situation, while also reinforcing the company’s accountability and determination to regain trust. The apology was published on a full page in 03 major US newspapers – the Wall Street Journal, The Washington Post and The New York Times.

Collaborations with regulatory authorities and industry experts

Samsung worked closely with government agencies and regulatory bodies in various countries where incidents related to the Note 7 were reported. The company shared information, conducted investigations, and cooperated with authorities to ensure compliance with safety regulations and guidelines. Collaboration with government agencies helped align efforts to address the crisis and establish industry-wide safety standards.

In the United States, Samsung collaborated with the CPSC, an independent federal agency responsible for ensuring the safety of consumer products. Samsung worked together with the CPSC to investigate the battery issue and coordinate the recall process. This collaboration ensured that the recall efforts followed established safety protocols and provided consumers with accurate information.

Samsung collaborated with battery manufacturers to investigate the specific manufacturing defects that caused the battery issue. The company worked closely with these partners to analyze the battery designs, manufacturing processes, and quality control measures. By involving battery manufacturers in the investigation, Samsung aimed to identify the root cause and implement corrective actions to prevent similar issues in the future.

Samsung engaged independent testing labs to conduct thorough assessments of the Note 7 batteries and verify the effectiveness of corrective measures. These labs specialized in battery testing and certification, providing expertise and unbiased evaluation of the battery performance and safety. Collaboration with independent testing labs helped validate Samsung’s efforts to address the battery issue and instill confidence in the effectiveness of the solutions.

Post-Crisis Recovery and Rebuilding 

Samsung implemented more stringent quality control measures across its product development and manufacturing processes. This included enhanced battery testing protocols, increased inspections, and stricter quality assurance standards. By demonstrating a commitment to producing reliable and safe products, Samsung aimed to rebuild customer trust.

Extended Warranty and Customer Support: Samsung extended warranty periods for existing and new devices, including the Note 7, to provide customers with added assurance. The company also enhanced its customer support services, ensuring that customers could easily access assistance, product information, and technical support. These initiatives aimed to demonstrate Samsung’s commitment to customer satisfaction and support.

  Launch of subsequent product lines and their impact on brand perception

Following the Note 7 crisis, Samsung launched subsequent product lines, including flagship smartphones like the Galaxy S8 and subsequent iterations. These launches played a crucial role in shaping brand perception and rebuilding trust. Key factors that influenced brand perception and the recovery process include:

• Emphasis on Safety and Quality: Samsung placed a strong emphasis on safety and quality in its subsequent product launches. The company implemented rigorous testing procedures and introduced new safety features to ensure the reliability and safety of its devices. By highlighting these improvements, Samsung aimed to regain customer trust and reassure them of its commitment to producing high-quality products.
• Positive User Experience: Samsung focused on delivering positive user experiences with its new product lines. This included improvements in design, performance, and functionality to enhance customer satisfaction. By providing users with exceptional products, Samsung aimed to rebuild its reputation and generate positive word-of-mouth, contributing to brand recovery.
• Brand Messaging and Marketing: Samsung’s marketing efforts during subsequent product launches were carefully crafted to reinforce positive brand associations and regain customer trust. The company emphasized innovation, customer-centricity, and the commitment to quality and safety. Marketing campaigns highlighted features, benefits, and technological advancements to create a positive brand image and overcome the negative perceptions associated with the Note 7 crisis.

Final Words 

Samsung’s handling of the Note 7 crisis serves as a case study in crisis management. Despite the significant financial and reputational setbacks, the company took proactive steps to address the crisis, regain customer trust, and prevent similar incidents in the future.

The Samsung crisis management case study highlights the importance of swift and transparent communication, customer-centric actions, and continuous improvement in product safety and quality. By effectively addressing the crisis, Samsung was able to navigate the challenging situation and rebuild its brand, reaffirming its position as a leading global technology company.

Overall, the Samsung crisis management case study provides valuable insights into how a company can recover from a major setback, restore customer trust, and strengthen its position in the market through strategic actions and a relentless commitment to customer satisfaction and product excellence.

About The Author

Tahir Abbas

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Table of Contents

Digital presence of samsung, digital marketing campaigns of samsung , marketing mix of samsung, swot analysis, results of samsung marketing strategy, conclusion , how samsung marketing strategy solidifies its brand value.

The global electronics powerhouse– Samsung began its journey as a low-tier manufacturing brand. A strong Samsung marketing strategy revolutionized its stance in the market, making it the No.1 smartphone producer worldwide. The tech giant ranks 4th in Forbes' list of the World's Largest Tech Companies. A perfect blend of digital marketing and innovation has established Samsung as a unique, high-quality brand worthy of customer loyalty.  

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Samsung's adept use of social currency has contributed to its success in digital marketing. Expanding its social media presence, Samsung provides customers and brand loyalists several chances to share their experiences with those in their circle. 

Samsung YouTube Channel

To connect with the various segments of the population their products target, Samsung has social profiles on all of the major social networks, including 

• Facebook: 162M
• Twitter: 12.5M
• YouTube: 6.24M
• Instagram: 4.5M

Samsung Facebook Page with 162 Million Likes

Moreover, Samsung has several profiles on each platform. For instance, Instagram has Samsung, Samsung India, Samsung UK, Samsung UA, Samsung Mobile and more.

The company adheres to the best digital marketing practices like SEO and quality content creation that solves customer problems. 

Being a community-oriented brand that impacts audiences worldwide, Samsung introduces various marketing campaigns. The promising Samsung marketing strategy focuses on leveraging the power of exceptional marketing campaigns to promote its products and appeal to the audience. 

Social media ads, sponsorships, and online advertising strengthened the brand. Some exceptional Samsung marketing campaigns are as follows: 

• #YouMake Campaigns: It brings up a global marketing platform for consumers to take the lead with device customization. It brings a better way of personalization via customized control enabled by SmartThings IoT solutions. The #YouMake campaign offers continuous services and virtual benefits, encouraging customer participation by utilizing the best metaverse platforms.
• Growing Up: Another commercial on YouTube that made people reconsider their options. The company directly targeted its main competitor–Apple, and the video took the internet by storm.

Product, Price, Place, and Promotion–the 4Ps of the marketing mix constitute an integrated marketing model. Samsung’s marketing mix plan gives insights into the company’s success secret. 

1. Product Mix

Delivering excellent results in recent years, Samsung products are well-known for their services and quick support. Samsung’s marketing mix in its product line is one of its major strong points. The products fall into the following categories: 

• Mobile phones
• Televisions – LEDs, Plasma TV, LCDs, SMART TV, HDTV
• Refrigerators
• Air Conditioners
• Washing Machine
• IT – Printers, laptops, and accessories

2. Price Mix

Price mix is one of the strongest points in the Samsung marketing strategy. It offers two pricing schemes to satisfy its clients. The corporation adopts a price skimming tactic whenever it releases a new smartphone with the latest technology. Moreover, it reduces the price of that product when the competitors launch identical products. 

3. Promotion Mix

Samsung attracts customers via advertising while employing the best tactics to push products through sales promotions.

The company employs several marketing vehicles both during the festive season and outside of it. It grants numerous discounts and incentives to business partners, encouraging them to sell Samsung products above the competition. 

4. Place Mix

Samsung service dealers are responsible for corporate sales. Its selling point is its distribution. They distribute their goods via a single distribution business. They then distribute them to other locations.

SWOT analysis is one of the best ways to dive deeper into the Samsung marketing technique. It provides insights into Samsung’s strengths, weaknesses, opportunities, and threats concerning its marketing competitiveness.

Samsung’s Strengths

• It has held a strong position in the smartphone manufacturing industry for years. Climbing the ladder, Samsung ranks first on the world’s best smartphone manufacturers list. 
• Significant investments in the innovative research and development sector have helped Samsung generate a diverse product offering compared to its competitors.
• Its transition to a customer-centric management system has brought about revolutionary changes. 
• Its consistent efforts for sustainable development, such as the adoption of eco-packaging for TVs, give it the upper hand. 
• Samsung leads the development of advanced technologies like AI, 5G, automotive and robotics. 
• Lastly, it is rapidly expanding commercial marketing in India and China. 

Samsung’s Weakness

• Despite expanding its operations in Asia, the company relies heavily on American markets.
• Samsung’s defective items, such as the Samsung Galaxy A20e and a malfunctioning foldable phone.

Samsung’s Opportunities

• Samsung can achieve tremendous development in the smartphone industry by setting the standard with innovative goods like foldable phones.
• As the world adopts 5G, Samsung has the know-how to capitalize on the opportunity.
• The company can hire exceptionally skilled professionals using its brand image. 

Samsung’s Threats

• Samsung’s entanglement in controversies can jeopardize its business, such as the lawsuit filed by Apple for patent infringement.
• Xiaomi, Apple, and Huawei stand as major threats and technological competitors who can outsmart Samsung. 

Samsung’s revamped marketing programs and competitive strategy implementation have significantly contributed to its huge success over the years. 

Performing continuous market research, adding new features, serving customer pain points and employing special efforts to reduce costs, Samsung has paved the way for its success from the very beginning. 

Its global value increased by more than 200% in a short span ranging from 2003 to 2008. 

Samsung took over Sony–one of the most valuable consumer-electronics brands worldwide. Consequently, Samsung’s sales reached $119 billion by 2009. When the company introduced Samsung Galaxy and leveraged the power of digital platforms for promotions and marketing, its revenue grew to $218 billion in 2018. 

Today, Samsung stands 5th on Interbrand’s list of Best Global Brands with a brand value of USD 74.6 billion. It has witnessed a 20% increase in comparison to the last year.

Sparking creativity worldwide, Samsung is the most profitable tech company. The robust Samsung marketing strategy has made it one of the most valuable brands today. Its smart digital marketing tactics set an excellent example of how to revamp your online business as a digital marketer. 

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Samsung’s Generic Competitive Strategy & Growth Strategies

Samsung’s generic competitive strategy and intensive growth strategies set business goals for technological innovation as a critical factor in developing competitive advantages. Headquartered in Korea, the conglomerate competes with technology-intensive firms, such as Apple , Google (Alphabet) , Microsoft , Sony , and Intel , which create strong competitive forces, as determined through a Five Forces analysis of Samsung. The industry environment imposes aggressive competitive behavior that typically involves rapid technological innovation for product differentiation, as seen in the evolution of smartphones available in the global market. To effectively compete, Samsung’s generic competitive strategy and growth strategies must involve investment in technological innovation. The resulting competitive advantages enable the company to keep its competitive position as one of the best performers in the semiconductors, consumer electronics, and home appliances industries. Samsung’s generic competitive strategy and intensive strategies for growth are suited to the current business environment and the strategic positioning of the multinational organization’s operations.

The generic competitive strategy and intensive growth strategies of Samsung Group permeate its entire organization, influencing the strategic choices and implementations of its divisions and subsidiaries. The Group’s unitary leadership is responsible for the corporate strategic direction and competitive advantages of the conglomerate and its technology-focused subsidiaries. Samsung’s generic competitive strategy and intensive growth strategies are observable in product design, marketing strategies, and the business organizational development direction of subsidiaries.

Samsung’s Generic Competitive Strategy (Porter Model)

Samsung applies broad differentiation as its generic competitive strategy. Based on Michael E. Porter’s competitive strategy model, the strategic objective of broad differentiation is to maintain competitive advantage by providing unique (or differentiated) products targeting a wide market, which in this case is industry-wide, involving practically every person or group that buys smartphones, laptops, and other equipment. To achieve Samsung’s strategic plans for growth and expansion in the global market, this generic competitive strategy requires the application of product development as a main intensive growth strategy to compete with other technology firms.

Samsung’s investments in product development are a strategic implication of differentiation as its generic competitive strategy. For example, the company invests in technological innovation to support the competitive advantage of its products in the consumer electronics market. Another implication of this generic competitive strategy is Samsung’s marketing mix (4Ps) and related strategies that promote products as unique or different alternatives to the majority of competitors. This marketing approach and technological innovation sustain the corporation’s competitive advantages and value chain effectiveness in satisfying customers’ needs in consumer electronics, computing technology, and home appliances.

Other generic competitive strategies, such as cost leadership, differentiation focus, and cost focus, are also applied in Samsung’s operations, but to a limited extent. Cost focus leads to the company’s being the best-cost provider in some segments of the semiconductor and electronic components markets. The limited application of cost focus still comes with innovation standards that reflect Samsung’s main generic competitive strategy of broad differentiation. These generic strategies align with the company’s intensive growth strategies to succeed in sustaining the technology firm’s competitive advantages.

Samsung’s Intensive Growth Strategies (Ansoff Matrix)

Market Penetration (Primary) . Samsung’s revenue growth depends on market penetration as the primary intensive strategy. In Igor Ansoff’s matrix, the strategic objective of market penetration is to grow the technology business by increasing its revenues from the sale of current products in current markets, such as the European Union’s consumer electronics market, where the corporation already has operations. Competitive advantages and business strengths identified in the SWOT analysis of Samsung combat negative forces from competition in these markets. As an intensive growth strategy, market penetration depends on the effectiveness of the generic competitive strategy of broad differentiation, in terms of how the company creates technologically innovative products that are differentiated enough to attract target customers in current or existing markets.

Product Development (Secondary) . Considering the emphasis of product superiority in Samsung’s corporate mission and vision statements , product development is a major intensive growth strategy of the enterprise. A strategic objective of product development in this case is to grow the business through new products, such as new electronic gadgets. Also, this intensive strategy grows Samsung’s operations through iterative innovation, which leads to improved versions or variants of existing products. For example, the company regularly rolls out new smartphone models, similar to what competitors are doing in their product development strategy. The implementation of product development as an intensive growth strategy is based on Samsung’s generic competitive strategy of differentiation, which requires product development for uniqueness that differentiates the business from the competition. Economies of scope based on the conglomerate’s various subsidiaries support product development and competitive advantage by providing technological expertise and material inputs from the subsidiaries. Samsung’s organizational culture (work culture) affects human-resource support for operational effectiveness, value chain efficiencies, supply chain management, and other business activities that fulfill the strategic objectives of product development.

Market Development . The global scale of Samsung’s operations makes market development a minor intensive strategy for business growth. Market development’s strategic objective is to enter new markets using the company’s existing products, such as introducing new Galaxy tablets in Latin American markets after these products’ introduction in the United States. As an intensive growth strategy, market development’s success depends on product value and competitive advantage, which in this case comes with Samsung’s generic strategy of differentiation via technological innovation. For example, effective innovation for cutting-edge technological design makes the corporation’s products more competitive when rolled out in target markets. With this intensive growth strategy, introducing products to new markets may come with changes in the geographical units of Samsung’s organizational structure (company structure) .

Diversification . Samsung’s diversified business operations maintain multiple revenue channels and spread risk across industries and markets. This intensive growth strategy’s implementation is infrequent in the technology conglomerate, considering regulatory hurdles and other barriers. With the strategic objective of establishing new profitable businesses, the diversification strategy grows Samsung typically through acquisitions of smaller firms, such as Harman International Industries. The minor role designation of this intensive growth strategy limits the risks of establishing new business operations. In implementing diversification, the generic competitive strategy of differentiation is also applied for competitiveness and strategic alignment among Samsung subsidiaries’ business operations.

Some Considerations – Samsung’s Generic Competitive Strategy & Intensive Growth Strategies

Samsung’s generic competitive strategy and intensive growth strategies direct the organization’s growth and development. Differentiation plays a major role in building the company’s competitive advantage, although other generic competitive strategies, such as cost leadership and focus strategies, also support the technology enterprise and its competitiveness. Samsung’s operations management strategies and administration must align with the differentiation generic competitive strategy and the intensive growth strategies to support business growth while competing with aggressive multinational companies.

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• U.S. Department of Commerce – International Trade Administration – Software and Information Technology Industry .
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Marketing Management: Samsung Case Study Examples

Type of paper: Case Study

Topic: Sales , Business , Marketing , Company , Market , Products , Samsung , Strategy

Words: 1900

Published: 03/01/2020

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Introduction

Having developed form a trading company in South Korea, Samsung has emerged as one of the largest and influential companies around the globe. Though the company has a number of businesses, ranging from trading to insurance, Samsung Electronics is the most successful ranch in the group. Over the years, Samsung has been labeled as the fastest growing brands in the world. The company has achieved through this through redefining its products and the great marketing strategies that the company uses. In the present, the advancement in the technology calls for quick adaption to the technological changes, and Samsung has used this to advance its brands. This paper discusses the marketing management strategies that Samsung has applied over the years, and those that they are using at the moment, and the results of these strategies.

Question one: How Samsung achieved successful brand identity

Answer: For any company to succeed and achieve its goals, the marketing strategies used have to be in line with the company’s goals and be strong enough to withstand the market competition. Most of the marketing decisions that are successful involve four variables; product, price, promotion and place (Dogra, 2010). This mix of variables, commonly referred to as the 4p’s of marketing requires the marketing manager and the marketing team to make decisions after assigning a value to each variable under it (Jobber & Lancaster, 2003). The marketing strategies used by Samsung over the recent decade, making it one of the most successful company stories in history, involve the marketing mix of the 4p’s.The first P in the marketing mix concerns the pricing strategies used by the company. The pricing strategy that a company adapts has to include the price level of their products, credit terms, price changes and discount (Dogra, 2010). For Samsung, the pricing strategy that they adopted played a big role in determining the success of the company. Their main aim is providing good products to their consumers, at a reasonable price. One of the main focuses of the company is cost-cutting, which has helped in keeping the prices of their products lower than those of the competitors and combating the discount schemes of local companies. For example, in 2002, Samsung reduced its operational costs drastically, enabling the company to keep low prices for certain products. With this strategy, the company managed to extract higher profit margins from the premium products, enabling the company to post a higher turnover than what they had posted in 2001. Another pricing strategy that the company has in place is a Mixed Operating Price (MOP). Through this strategy, Samsung sells its products to the distributors and consumers at a fixed market price only. The strategy has paid off because the distributors or retailers do not hike the prices of the products to benefit from the price differences that they might charge the consumers. Samsung changed its pricing strategy in the past few years.

Question two: Segments for the target market

Answer: Samsung used to target high-end markets thus keeping premium prices. Through this strategy, Samsung remained at number two and three in most of its product categories. When the company changed its pricing strategy to target the middle class folk rather than just targeting the high-end market, the company has increased the number of sales. Samsung has managed to keep lower price than its major competitors in its products, and still keeping up with the advancing technologies. Due to this, the market share of the company has increased, together with the sales margin of the products, especially smart phones. The second P that covers product requires the marketing team and the managers to focus on the features, packaging, quality and the range of their products (Dogra, 2010). The innovative designs and the functionality of their product is another reason why the company has emerged as one of the best companies around the globe. Samsung has overtime developed unique but user-friendly designs that are closely integrated with the recent innovative product concepts, especially in electronics. The emphasis that Samsung has laid on its innovation and R&D has helped in giving it a competitive edge in the market. One example of the recent innovations especially in the smart phone world is the wide range of Samsung Galaxy phones, with the recent one in the market being Galaxy S5. The wide range of innovations is good as it helps the consumers to have a wide range of products to choose form, and Samsung has achieved this, making it a household name. The third P in the marketing mix is promotion, which include publicity, advertising, sales promotion and personal selling (Dogra, 2010). When it comes to promotion, Samsung has used a number of strategies to help promote their products, such as corporate advertisements, celebrity endorsements (Didier Drogba) among many others. The advertising strategies of Samsung are very aggressive, with their main channels of advertising being the media; print media, outdoor advertising, televisions and the recent being the use of social media. Apart from advertising, Samsung has used sales promotion to market their products. In 2001, Samsung used this strategy in India, a strategy they named ‘phodkeDekho Offer’ (Chauhan, 2013). The strategy saw the company increase its sales level and the profit margin in the Indian sector and the whole of Samsung in general. Finally, Samsung has used the fourth P of place in its marketing, and it has contributed to the success of the company. Place in the marketing mix allows the company tom concentrate of the distribution channels and the number of intermediaries (Godra, 2010). Samsung has a number of intermediaries all over the globe and many distribution channels. The company has branches in more than 60 countries worldwide, thus enabling the company to tap into many markets. When a company segments it market, it is in a position of helping the marketers define the needs of the consumers. Through this, the company can develop its products on a basis that meets the needs of its consumers (Cant, Strydom & Plessis, 2007). Samsung has adopted a segmentation strategy in which it targets the high-end and the middles classes. One of these segments is the Samsung Galaxy series of phones in the smart phone market. The series of phones has placed the company in a very good competitive edge, and the company is among the best smart phone dealers worldwide after Apple. The segmentation is good for the company as it allows them to tap into the middle class market and the high-end market. Through this, Samsung increases its market share and sales margin. Through their segmentation, Samsung offers budget friendly products, especially mobile phones and products that include the latest technology (MarkTechBlog, 2014).

Question three: Sales volume to profit margin

Answer: In the recent years, Samsung has focused on increasing its sales margin rather than the profit margin. The pricing strategy of a company depending on its sales can impact on the sales volumes of the company (Dunn, Roeser & Valente, 2000). The sales strategy that Samsung is using is very effective for the company. The strategy is a long term strategy and the company can keep increasing its sales and also increase the profit margins along the way, if they keep using the same strategy. As long as increasing the sales volume can help them, the company has a lot of competition especially from Apple. The only way that Samsung can use its sales strategy to also increase their profit margin is by ensuring that they keep producing high quality products, services and delivery. However, the sales margin strategy is not always good for long term strategies. Samsung needs to come up with a plan or strategy that focuses on the profit margin that they make instead of their sales volumes. At some point, the sales volume may be high but they might end up making losses or not breaking even. With the ongoing war that Samsung has with Apple, their sales volumes decrease. If this happens, the company will lose a big market share and their strategy will hit the rocks making them make losses. For a long term strategy, Samsung should start adopting a better strategy that will still include their sales margin, but focus solely on their profits.

Question four: Challenges and how they should be addressed

Answer: Every company faces challenges in their daily operations, and Samsung is no exemption. One of the challenges that Samsung has faced in the marketing is great competition. The Android market that mostly entails smart phones has become the biggest industry in mobile phones and has a lot of competition. Being one of the major users of Android in their products, Samsung has faced competition from some companies such as Apple. The competition with Apple has even led to a court battle, where Apple has sued Samsung for infringing on their patents. Rom this challenge that has rocked Samsung’s boat for a couple of years now, the management should start coming up with innovations and designs that are different from Apple or any other mobile manufacturers around. With greater and new innovations, the company will be in a position to become more successful and will have a competitive edge against its main competitors including Apple. The other challenge that has faced Samsung is selling their phones to businesses. As much as the company is biggest smart phone seller globally, they have had problems winning over the corporate sector. Their biggest challenge in this sector was building a customer-service network that worked with enterprises and the robust security system forum that met the world’s most- security conscious managers (Connors & Cheng, 2013). In 2013, the company’s security system for mobile devices by the name Knox, had delays and programming bugs thus frustrating clients such as the U.S Defense Department. A strategy should be improvised where a certain range of product that is specifically for businesses purposes are developed, and equipped with different elements from those of consumers to ensure the safety of business information transferred by companies through electronic devises.

Samsung has adopted a number of strategies that have seen it develop over the years to be the leading electronics companies in the world. Decision such as laying their focus on the middle-income population rather than the high-end market only, is one of the reasons why their products are affordable to almost every individual and the success of the company. Despite being successful, the company has faced challenges along the way, some of which it has triumphed over and managed to be very successful.

Cant, M., Plessis, P. J., Jooste, C. J., & Strydom, J. W. (2009). Marketing management (6th ed.). Cape Town: Juta and Company Ltd. Chauhan, V. (2013, March 26). Marketing strategy of Samsung in India. Retrieved from <http://www.slideshare.net/vvikaschauhan/marketing-strategy-of-samsung-in-india> Connors, W.,& Cheng, J. (2013, December 4). Samsung’s next challenge: selling to businesses. The Wall Street Journal. Retrieved from <http://online.wsj.com/news/articles/SB100014240527023045794045792335216351877 10> Dogra, B., &Ghuman, K. (2010).Rural marketing: concepts and practices (7. repr. ed.). New Delhi [u.a.: Tata McGraw Hill. Dunn, H., Roeser, R. J., & Valente, M. (2000).Audiology: practice management. New York: Thieme. MakTechBlog. (2014, March 12). Samsung’s strategy for mobile market segment. Retrieved form<http://maktechblog.com/samsungs-strategy-for-mobile-market-segment/>

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Samsung’s Digital Marketing Strategies: Detailed Case Study

• February 4, 2023

Table of Contents

Before we look into Samsung’s digital marketing strategies, A recent study revealed that Samsung is all set to lead the worldwide smartphone market in 2022 with yearly shipments of 272 million devices. 272 MILLION! Samsung inculcated innovation each step of the way and used smart branding to position itself in the market. Wondering how it happened? 

One of the ways  Samsung is so innovative – with multiple product announcements one after the other – is that it is substantially involved in its employees; it seeks out special talent wherever it can find it and has looked at digital marketing as a major opportunity to brand all their existing and new products. 

Let’s find out how they used digital platforms to increase awareness and maintain their brand image.

About Samsung

Back in 1970, Samsung’s electronics division began by producing low-cost TV sets under the Sanyo brand, but through time, it evolved into an innovative firm that has been a pioneer in manufacturing huge flat-screen displays, plasma TVs, and cutting-edge smartphones. 

However, until the mid-1990s, they competed mostly by developing technical components and low-cost manufactured goods for larger brands such as Dell, Hewlett Packard, and General Electric . They were also selling other low-cost consumer products under the Samsung brand, including TVs and microwave ovens, through cheap retailers such as Walmart.

The low-cost-driven competitive strategy served them well until the Asian market meltdown in 1997. At the time, the market for memory chips and other components provided by Samsung to electronics manufacturers was experiencing greater competition, resulting in surplus capacity, while sales of Samsung branded products were also declining.

Despite these facts, the company’s CEO, Yun Jong-Yong , stated that Samsung could make goods that were as good as Sony’s, but because of the brand’s low-end image, their TVs would be relegated to the rear of stores.

Why Should Marketers Study Samsung’s Digital Marketing Strategies ? 

Samsung has managed to gain the market share (and love) of millions of people around the world. Samsung’s key principles include “people, excellence, change, honesty, and co-prosperity.” Samsung has a very rich culture in all of its facilities across the world, with similar and comparable practices. This is due to the fact that they all operate under the same values as previously discussed. Their marketing strategies played a huge role in boosting their sales and gaining recognition online. 

The ‘adventurous’ branding

The goal of brand films is to introduce your audience to your values, visions, and, ultimately, the heart of your brand. Visuals, music, and stories may help you communicate your brand in ways that no other media can.

Remembering the outdoor-focused ad campaigns for a long time, Samsung has been side-reflecting an adventurous concept as a brand image for a long time. In their 2013 marketing film, shown below, we witness 18 risky places in Scandinavia filmed at -31 degrees Celsius with helicopter shots, husky dog sledges, and snowmobiles. Samsung is using the film to market their new Heat Pump, N-Series, specifically for Scandinavia, but it has also been exhibited at exhibits and trade events across the world.

Out-of-the-Box Marketing 

We are all aware that Samsung’s product price strategy is neither A-class or competitive in general. That is where the brand must establish other auxiliary activities in order to make their products and service their technologies in an engaging way. So, basically, they need to think outside the box.

This was their “TV when it’s on. Art when its off” campaign

Above, Samsung’s “Galleried” spot makes picture frames cool again. Regardless of the quality of the artworks, Samsung’s problem is with picture frames – and their enigma. During a day at the museum, art lovers are astounded to see how the valuable artworks inside the frames mysteriously vanish. A swarm of anxious people stare at empty frames where paintings formerly hung. The employees are concerned, but there is an explanation: TV When it’s turned on. When the Lights Go Out.

Clever, funny, strategic: Apple vs Samsung

Before the iPhone X’s release date, Samsung released a new commercial that is totally aimed at criticising Apple. Samsung always comes up with innovative ways to mock apple, but this time, it elevated its concept to a different level. ‘Growing Up,’ created by Wieden + Kennedy Portland, relates to everything from storage space to water resistance — and, of course, the never-ending line-ups, which is the funniest part. 

The commercial began in 2007, with the launching of the first-generation iPhone. Erik, the hero, of course, purchases the goods, while his girlfriend Lauren owns a Samsung by 2013. Eric began to experience storage troubles even when using an older version of iOS.

Then, in 2013, when the screen sizes and water resistance are compared, the results are disgraceful. He hence shifts to Samsung, and according to the commercial, he finally “grows up” 

Samsung’s digital marketing strategies 

Samsung’s marketing communication mix includes a variety of channels such as print and media advertising, sales promotion, events and experiences, and public relations. Samsung Electronics employs these channels in an integrated fashion. We have discussed the digital aspect of their marketing strategies below.

Samsung’s social media marketing strategies 

They are continuously working to maintain their popularity, and they must work really hard in order to do so. When it comes to social media marketing, they use Instagram, Facebook and YouTube to help them in generating good earnings as well as making a big influence on users and followers.

Samsung’s Instagram marketing strategies

Samsung India’s Instagram page (@ samsungindia ) has an engagement rate of 0.05% with an average of 2,137 likes and 15 comments on each post.

Samsung uses Instagram as a way to communicate with its audience and establish a one-on-one relationships. Most of their posts are product-based, talking about the various features of the particular product. 

#WeOwnTheNight

Off late, Samsung has posted a series of posts highlighting the 

View this post on Instagram A post shared by Samsung India (@samsungindia)

Samsung’s Facebook marketing strategies 

When you access Samsung’s Facebook page, you will discover that it has over 16 million fans and that its cover image clearly indicates the latest planned Samsung announcements or products. 

Scrolling down will take you to the posts that Samsung has published on this fan page. No one is permitted to post on Samsung’s Facebook page. Customers, on the other hand, can comment on their blogs and provide feedback.

They post on a regular basis and typically receive a large number of comments on each of their postings.

Samsung’s Twitter marketing strategies

Samsung not only rules through its Facebook page, but it also has a sizable fan base on Twitter. The frequency of posts on this site is extremely high. 

The engagement rate of Twitter is 0.10% and they receive an average of 12,077 likes and 3,472 retweets on each of their posts.

Samsung’s SEO strategies 

Samsung Customer Care Department has evolved naturally in SEO, and it now has a small but powerful in-house staff overseeing SEO, SEM, and content. Because the SEO team is in charge of the internal search platform, its major purpose is to translate what consumers search for into genuine meaning and intent.

Their constant SEO efforts have ensured that they get a steady increase in their website rankings and keywords. They receive a YOY increase in organic traffic of 4% . Their keyword ranking position, too, has increased by 12% YOY . 

Let’s study their SEO strategies in detail

Website overview

With a worldwide brand in such a competitive field, Samsung has taken a broad view of the entire customer journey across several departments, from mobile devices to home appliances, to achieve the greatest potential improvement in online performance.

They have been more effective at improving ranks and generating sales by taking a step back to study user behaviour and purpose and then optimising on-site SEO.

Samsung has an almost perfect website with a high domain authority of 93 . The rest of their statistics too are extremely high and rated ‘amazing’ by Ubersuggest.

They have over 6,666,167 organic keywords , 102,927,027 organic monthly traffic and 96,177,850 backlinks .

www.samsung.com

The top 5 organic keywords include

• Samsung 
• Samsung galaxy s21 ultra
• Samsung galaxy 
• Samsung galaxy s9

Samsung’s Top Digital Marketing Campaigns

#indiareadyaction.

Samsung India launched #IndiaReadyAction, a statewide digital campaign encouraging Gen Z and millennials to defy prejudices about India by filming and sharing films of Real India via their smartphones. The month-long campaign #IndiaReadyAction will encourage Gen Z and young millennials in India to contribute up to 60-second movies showcasing their vision of Real India, which will break any prejudices about the country that may exist around the globe.

The campaign was launched through a video :

Sports partnerships

Samsung sponsored the Olympic Winter Games in 1998 and will formally support Olympic Games and Olympic movements for the following eight years, which will only help Samsung’s global reputation. From 1998 through 2010, Samsung was the official sponsor of the telecommunications equipment category.

Sponsors of the English Premier League club Chelsea FC, the Premier League is well-known around the world and draws a large number of fans from all around the world. In 2008, Samsung also inked a six-year collaboration agreement with Mexican football team Club Deportivo Guadalajara, providing plasma and LCD screens for the team’s new stadium Estadio Chivas, indirectly promoting the brand.

They continued to sponsor different sports teams around the world in the following decades. In India, they have brand ambassadors for every product category.

Aamir Khan is the brand ambassador for mobile phones, Priyanka Chopra is the brand ambassador for home appliances, and Olympic Gold Medalist Abhinav Bindra is the brand ambassador for consumer electronics. 

Aamir Khan has appeared in a number of commercials, including Next Is What, Wave, and the Galaxy series. He is renowned in the industry as Mr Perfect, and they are exploiting this to demonstrate that their mobile phones are perfect. Also, because Samsung is an Olympic sponsor, the image of Abhinav Bindra, the first Indian individual gold medalist, was used.

Another campaign that illustrates Samsung’s usage of social and online communities to sell new goods is #OverToYou.

Samsung provided 12 notable bloggers, athletes, and YouTubers with Galaxy S4s so they could produce content and share it with their audience.

These 12 people were exhibiting the potential of the new technology by utilising the S4 to create a unique, thrilling video. The videos were obviously shareable, giving Samsung some extra visibility outside of its typical marketing platforms.

Digital line

Another ad aimed at Apple fanboys, this time by generating a digital queue in anticipation of the Galaxy S4’s introduction in New Zealand.

Samsung’s own followers may join the queue online 12 days before the phone was released by posting details of the S4’s new features as they were revealed each day on their Facebook or Twitter accounts.

The more their friends retweeted, commented on, “loved,” and shared the content, the higher they climbed the queue. It’s simply highly incentivized word-of-mouth marketing that also pokes fun at the company’s main competitor.

Conclusion 

As can be seen, Samsung has joined the realm of online marketing to promote its products and brand. Do you wish to develop your own strategy?

Do you wish to raise the profile of your company? Enrolling in digital marketing courses online is the right solution.

Enrol in Digital Scholar’s online digital marketing course to strengthen the digital marketing techniques of your company. This course is designed for anyone who wants to learn everything they can about digital marketing and how to use it in their own business. To discover more about them, go to www.digitalscholar.in

What do you find most appealing about Samsung’s campaigns? Please share your thoughts in the comments section below!

Written By Digital Scholar

Digital Scholar is a premier agency-styled digital marketing institute in India. Which offers an online digital marketing course and a free digital marketing course worldwide to elevate their digital skills and become industry experts. Digital Scholar is headed by Sorav Jain and co-founder Rishi Jain, who are pioneers in the field of digital marketing. Digital Scholar’s blogs touch upon numerous aspects of digital marketing and help you get intensive ideas of different domains of digital marketing.

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Samsung Electronics—A Detailed Case Study

Devashish Shrivastava

Samsung is a South Korean electronic gadget manufacturer in Samsung Town, Seoul. Samsung Electronics was established by Lee Byung-Chul in 1938 as an exchanging organization.

We all know this information about Samsung. Don't we? But what we don't know? Do you know how much Samsung has grown in these years? What are the Future Plans of Samsung? How much Samsung invested in its R&D? What difficulties did the company face coming all this way? What is the history behind this multinational conglomerate?

Don't worry we got you covered. We have penned down a detailed Case Study on Samsung Electronics. Let's find out in this thoroughly studied Samsung case study.

Let's start the detailed case study from here.

Samsung entered the electronics industry in the late 1960s and the development and shipbuilding ventures in the mid-1970. Following Lee's demise in 1987, Samsung was divided into five business groups - Samsung Group, Shinsegae Group, CJ Group, Hansol Group and Joongang Group.

Some of the notable Samsung industrial subsidiaries include Samsung Electronics, Samsung Heavy Industries  Samsung Engineering, and Samsung C&T (separately the world's 13th and 36th biggest development companies). Other notable subsidiaries include Samsung Life Insurance, Samsung Everland, and Cheil Worldwide.

Samsung has a powerful influence on South Korea's monetary advancement, legislative issues, media, and culture. Samsung has played a significant role behind the "Miracle on the Han River". Its subsidiary organizations produce around a fifth of South Korea's complete exports. Samsung's revenue was equivalent to 17% of South Korea's $1,082 billion GDP.

History of Samsung Electronics Samsung's Business Strategy Samsung Rides High In India Business Growth in India Future Plans of Samsung FAQ's

History of Samsung Electronics

1938 (Inception of Samsung)-

• In 1938, Lee Byung-Chul (1910–1987) of a huge landowning family in the Uiryeong region moved to nearby city Daegu and established Samsung Sanghoe.
• Samsung began as a little exchanging organization with forty representatives situated in Su-dong. It managed dried fish, privately developed staple goods and noodles. The organization succeeded and Lee moved its head office to Seoul in 1947.
• When the Korean War broke out, Lee had to leave Seoul. He began a sugar processing plant in Busan named Cheil Jedang. In 1954, Lee founded Cheil Mojik. It was the biggest woollen factory in the country.
• Samsung broadened into a wide range of territories. Lee wanted to build Samsung as a pioneer in a wide scope of enterprises.
• In 1947, Cho Hong-Jai, the Hyosung gathering's organizer, put resources into another organization called Samsung Mulsan Gongsa or the Samsung Trading Corporation with Samsung's founder Lee Byung-Chul. The exchanging firm developed into the present-day Samsung C&T Corporation .
• After few years in business, Cho and Lee got separated due to the differences in the management style. In 1980, Samsung acquired the Gumi-based Hanguk Jeonja Tongsin and entered the telecommunications market . During the initial days, it sold switchboards.

1987 (Demise of Lee Byung-Chul)-

• After Lee's demise in 1987, the Samsung Group was divided into four business gatherings—Samsung Group, Shinsegae Group, CJ Group, and the Hansol Group.
• One Hansol Group agent stated, "Just individuals uninformed of the laws overseeing the business world could think something so ridiculous," while also adding, "When Hansol got separated from the Samsung Group in 1991, it cut off all installment assurances and offer holding ties with Samsung subsidiaries."
• One Hansol Group source attested, "Hansol, Shinsegae, and CJ have been under autonomous administration since their particular divisions from the Samsung Group."
• One Shinsegae retail chain official executive stated, "Shinsegae has no installment certifications related to the Samsung Group." In 1982, it constructed a TV get-together plant in Portugal, a plant in New York in 1984, a plant in Tokyo in 1985 and an office in England in 1996.

2000 (Samsung in 20th Century)

• In 2000, Samsung opened a development center in Warsaw, Poland. It started with set-top-box technology before moving to TV and cell phones. The cell phone stage was created with accomplices and formally propelled with the first Samsung Solstice line of gadgets and different subordinates in 2008. It later emerged into the Samsung Galaxy line of gadgets that is Notes, Edge, and other models.
• In 2010, Samsung declared a ten-year development system based on five businesses. One of these organizations was to be centered around bio-pharmaceuticals in which ₩2,100 billion was invested.
• In the first quarter of 2012, Samsung Electronics turned into the world's biggest cell phone creator by unit deals, surpassing Nokia which had been the market chief since 1998.
• In 2015, Samsung was granted U.S. patents as compared to other organizations like IBM , Google , Sony, Microsoft , and Apple. Samsung got 7,679 utility licenses before 11 December 2015.
• On 2 August 2016, Samsung Electronics revealed the Galaxy Note7 smartphone, which went on sale on 19 August 2016. At the beginning of September 2016, it halted its selling of smartphones due to some problems with the smartphones. Samsung suspended the selling of the smartphones and recalled its units for inspection.
• This happened after certain units of the telephones had batteries with a deformity that made them produce extreme warmth, prompting flames and blasts. Samsung replaced the reviewed units of the telephones with a new version. It was later found that the new version of the Galaxy Note 7 also had the same battery deformity.
• Samsung recalled all Galaxy Note7 cell phones worldwide on 10 October 2016 and permanently ended its production on the same day.

Samsung's Business Strategy

Great business strategies have been applied by Samsung over the years. Not very far back, Samsung wasn't as famous as now. Samsung has now advanced so much that it is the principal contender of Apple Inc. Samsung is the biggest tech business by income and the seventh most significant brand today. The showcasing procedure it applied encouraged Samsung electronics to turn into an industry driving innovation organization.

The Samsung marketing strategy was one of the best systems at any point because it helped a cost-driven organization to change its structure and become a power producer. Due to the consistently changing tastes of purchasers in the innovation business, organizations needed to pursue the pace and offer dynamic and advancing devices to their clients. In this way, Samsung additionally needed to change to pick up the high ground available, and the new Samsung showcasing methodology was the way to advancement.

Some of the business strategies of Samsung Electronics are listed below:

Promotional Mix Of Samsung

Samsung has arrived at fantastic statures with its cell phones which helped the brand to turn into an image of value and unwavering quality for its purchasers.

Samsung Marketing Mix Pricing Strategy and Samsung Advertising Methodology are the two estimating techniques used by the organization. Other than its items, Samsung is celebrated for its customer support . However, item variety is the most dominant part of the promoting blend of Samsung.

• Skimming Price

Like Apple , Samsung uses skimming costs to pick up the high ground over its rivals. For example, Galaxy S6 and S6 Edge are the brand's new results of Samsung conveying the trademark "Next is Now" and guaranteeing that they are the best smartphone maker at any point made.

What will happen when different contenders will dispatch a cell phone with indistinguishable highlights? Straightforward. Samsung will bring down the cost and effectively steal the customers from its competitors.

• Focused Pricing

Samsung experiences issues in increasing an edge over its rivals with different items. Doubtlessly, Samsung is a credible brand. However, regarding home appliances, it can't be in any way, shape, or form outperform LG In the cameras segment and other home appliance units. Also, Samsung cannot compete with Canon and Nikon.

For Samsung to withstand this savage challenge, it's crucial to utilize aggressive valuing of its products. Moreover, Samsung is neither a newbie underway nor non-inventive. For the most part, it is often the first company to be innovative with its products and present a change among its competitors.

• Putting in Samsung Marketing Strategy

Samsung uses divert advertising strategies. Retailers who present the innovation chain will undoubtedly incorporate Samsung in their rundown on account of the firm being a world-celebrated brand. Samsung can likewise fill in as an option for the purchasers. The circulation is a convincing piece of the Samsung promoting methodology.

In specific urban communities, Samsung has an agreement with a solitary dissemination organization that circulates the items all through the city. For example, Mumbai is an incredible case where Samsung conveys its products through a solitary organization.

Samsung Rides High In India

The greatest leader by far in the smartphone business is Samsung Electronics, the world's greatest cell phone and TV producer.

Samsung is India's greatest, versatile brand. It is the developer of Reliance Jio's 4G LTE system — the greatest and busiest information system on the planet.

Discernments, advertise wars, openings, rivalry — now and then from conventional remote adversaries, from nearby upstarts, and emerging Chinese brands trouble Samsung.

Be that as it may, every time Samsung has had the option to fight off the dangers and hold its ground. It has been leading the market in the TV fragment for more than 12 years and in the versatile business for a long time after it toppled Nokia in 2012.

Riding The Smartphone Wave

As indicated by some statistical surveying firms following cell phone shipments, Chinese firm Xiaomi is creeping nearer — or has even surpassed Samsung after December 2017 quarter.

While for the entire year 2017, Samsung was No. 1 in the cell phone space, IDC information indicated Xiaomi drove the last quarter with 26.8% piece of the overall industry. Samsung was at 24.2%. Different players, for example, Vivo, Lenovo, and Oppo stayed at 6.5, 5.6, and 4.9%, separately.

Warsi, who has been working with Samsung for as far back as 12 years and has as of late been advanced as Global Vice President, is unflinching, "These difficulties offer us the chance to work more earnestly for our customers and with our accomplices.

Furthermore, shoppers love marks that emphasis on them," he says. "Samsung is India's No. 1 cell phone organization crosswise over sections — premium, mid and reasonable. That is what makes a difference."

Statistical surveying firm GfK tracks disconnected offers of handsets — which make up around 70% of the market — in which Xiaomi is attempting to make advances.

Samsung had a 42% worth piece of the overall industry in the general cell phone showcase in the nation in 2019 and 55% in the superior fragment as indicated by GfK. An industry official who would not like to be named says that India must be Samsung's greatest market by large volumes.

The thought currently is to become the cell phone business which gets more worth. As indicated by reports, Samsung India's incomes from cell phone deals in 2018-19 remained at an astounding INR 34,300 crore. That is over $5.5 billion and development of 27%. Samsung's nearest adversaries are talking about incomes of $1 billion in India, going up to $2 billion.

Samsung is the world's largest manufacturer of consumer electronics by revenue. As of 2019, Samsung Electronics is the world's second-largest technology company by revenue, and its market capitalization stood at US$301.65 billion, the 18th largest in the world.

Shopper Is At The Center

Samsung is a worldwide advancement powerhouse that leads the patterns. It profoundly put resources in India — 22 years of connections in the exchange, and tremendous interests in neighborhood R&D . It has around 10,000 architects working in research offices in India and is perhaps the greatest scout from the IITs.

"Samsung has a solid brand picture in India, as it has been available in various customer electronic portions with quality items for quite a while now. The brand is trusted because of its long history in the nation, dish India nearness, and a vigorous after deals support for buyers," says Shobhit Srivastava, explore expert at Counterpoint Research.

Indeed, even an item fizzle of the size of the Galaxy Note7 in September 2016 couldn't affect Samsung. While the organization was fast enough to get back to every one of the units that had been sold and cease the gadget totally, Samsung's activities and ensuing effective dispatches of leads like Galaxy S8, Note8, the Galaxy S9 and S9+, which were propelled in February, rescued the harm and raised the profile of the brand as a dependable organization. "They rushed to concede their error and that helped them interface with the perceiving clients of today far superior," says Koshy.

Make For India

Samsung's system 'Make for India', which resounds with the administration's ' Make in India ' activity, was conceived in the late spring of 2015. Samsung India's new President and CEO, H.C. Hong, had recently moved in from Latin America and was looked with the prompt tough assignment of fighting a firm challenge from two nearby versatile organizations that is Micromax and Intex.

Samsung's customer hardware business containing TVs, fridges, and other advanced machines were additionally confronting challenges from Sony and LG.

Around a similar time, the legislature of India propelled its 'Make in India' activity. "In this way, Mr. Hong revealed to us we have been doing Make in India effectively for two decades. What we should concentrate on widely to remain on top of things is Make for India (MFI)," says Dipesh Shah, Managing Director of Samsung R&D Institute in Bengaluru, the greatest R&D community for Samsung outside Korea.

Truth be told, the R&D focuses in India contribute intensely to the improvement of worldwide items, for example, Samsung's lead cell phones (Galaxy S9 and S9+). While different organizations focused on propelling their worldwide items in India, Samsung went about rethinking items for the nation at its R&D focuses.

India is significant for Samsung, thinking of the nation as the second biggest cell phone showcase on the planet today, and it is possibly the greatest undiscovered market for some advanced apparatuses. The entrance of iceboxes, clothes washers, microwaves, and forced air systems are appallingly low because of components like the accessibility of continuous power, social conduct, way of life, and earnings.

Business Growth in India

Samsung India crossed the INR 50,000 crore deals achievement in 2017 according to the simply distributed organization filings with the Registrar of Companies (RoC), uniting its situation as the nation's biggest unadulterated play purchaser products MNC. The Korean mammoth's all-out salary, including turnover and other pay, developed by 15.5% to INR 55,511.9 crore in FY 2017 from INR 48,053 crore in the earlier year regardless of Chinese organizations making genuine advances into the Indian cell phone advertise.

Samsung's cell phone business developed deals at 26.7% to INR 34,261 crore, while the home apparatus business developed by 12% to INR 6,395.6 crore. The organization's TV business stayed dormant at INR 4,481.2 crore even though Samsung held the market initiative.

The organization's net benefit developed at a quicker pace of 38% to INR 4,156.2 crore which industry examiners credited to more concentrate on premium models crosswise over cell phones and customer hardware having higher edges.

Samsung, in its filings, said the 'Make for India' activity, through which a large portion of the items was planned and created given the Indian customer's needs, has been an enormous achievement and a major factor behind the development.

All the units at Samsung India improved their gross productivity with the TV business dramatically increasing it and the home machine business nearly trebling it. The cell phone business was the biggest supporter of gross benefit having developed by 44% in FY17 at INR 5,005.9 crore.

Future Plans of Samsung

Samsung has arranged a new venture of around INR 2,500 crore to transform its India tasks into a center for parts business, two senior industry administrators said. The ventures could be increased further, they included. The Korean organization has set up two new parts fabricating substances in India—Samsung Display Co and Samsung SDI India—for the generation of cell phones and batteries.

Independently, Samsung's funding arm—Samsung Venture Investment Corp—has set up activities in India to support new companies in gadgets equipment and programming organizations. The segment organizations will supply items to both Samsung India and other cell phone merchants who as of now source parts from Samsung's abroad tasks.

Samsung sees a big opportunity for segment business considering the administration's push on 'Make in India' where expense on imported cell phone segments and purchaser hardware is going up, the administrators said.

Samsung is likewise pitching to the administration for fare impetuses so it can even fare segments from India. Samsung Display has just marked an update of comprehension with the Uttar Pradesh government for an INR 1,500 crore plant for assembling telephone show to be operational by one year from now April. The plant will come up in Noida, the administrators said.

Samsung SDI India has plans to set up an assembling unit in India for lithium-particle batteries after the organization was drifted a month ago, according to its administrative filings with the Registrar of Companies (RoC).

As per the administrators, Samsung SDI has plans to contribute another INR 900-1,000 crore and will settle the plans after counseling with the Center post general races. These speculations come after it introduced the world's biggest cell phone fabricating unit in India a year ago at an all-out cost of INR 4,915 crore. It is expected to be completed in 2020.

That's all for now. Share your learnings and findings. What did you learn from this article? Which information surprised or amused you the most? Feel free to reach us and share your feedback. We would love to hear from you. Do comment us in the comments section below. Happy Reading.

Who is the owner of Samsung Electronics?

Samsung Group is the owner of Samsung Electronics.

Who is the Founder of Samsung?

Samsung Electronics was established by Lee Byung-Chul (1910–1987) in 1938 as an exchanging organization.

Who is the current CEO of Samsung?

Kim, Ki Nam, Kim, Hyun Suk and Koh, Dong Jin are the current CEO of multinational conglomerate Samsung.

What does Samsung Electronics make?

Samsung Electronics produces smartphones, TV sets, laptops, solid-state drives, digital cinemas screens, etc.

Is Samsung a Chinese company?

Samsung is a South Korean electronic gadget manufacturer in Samsung Town, Seoul.

What is Samsung's strategy?

• Promotional Mix of Samsung

How large is Samsung Electronics?

Samsung is the world's largest manufacturer of consumer electronics by revenue. Samsung Electronics is the world's second-largest technology company by revenue, and its market capitalization stood at US$ 301.65 billion, the 18th largest in the world.

What are the future plans of Samsung Company?

Samsung has arranged a new venture of around INR 2,500 crore to transform its India tasks into a center for parts business, two senior industry administrators said.

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Home » Business Analysis » Case Study: Samsung’s Innovation Strategy

Case Study: Samsung’s Innovation Strategy

The success of Samsung has been widely acknowledged in the last decade. Samsung, the world’s largest television producer and second largest mobile phone manufacturer, is also the largest firm of flash memory maker. Furthermore, Samsung was ranked by Fast Company Magazine to be third most innovative company in the consumer electronics. The company grew from a local industrial leader into a worldwide consumer electronics brand, with up to 261,000 employees, 14 public listed companies, 470 offices and facilities in 67 countries. Samsung was ranked as 11th world’s most innovative companies. It is one of the two Korean companies in the Top 20 companies. While Sony, the Japan’s biggest consumer electronics, was ranked as 10th, only one position above Samsung. This has brought questions among management gurus how this growing company could drive innovation to create success within a short time and remain innovative despite the difficulties of internationalization . In addition, it could overcome many well-built rivals from Japan and Europe.

Shared vision and top management commitment are the important component leading to create innovative atmosphere . In creating such organization, if leaders are not committed in their actions, innovation couldn’t be systematic in a company. Top executive’s role modelling is one of the main differences between innovative and non-innovative organizations. Moreover, employees should realize a company’s goals to align with their innovative effort. Samsung’s new management beliefs applied in the late 1990’s is “we will devote our human resources and technology to create superior products and services, thereby contributing to a better global society.” This shows the company’s strong willpower to contribute to the worldwide people’s prosperity in the 21st century. This message encourages every employee in the firm to innovate with the clear goal of being global superior producer.

Appropriate Structure

The innovative organization tends to have characteristics of organic structures with open and dynamics systems. At first, the reduction of organizational layer and downsizing are concerned as cost control . An increase in use of information technologies, such as email, internal blog, shared data repository, also leads to the need of eliminating middle management. The possible consequences for this are faster responsiveness to market, higher competitiveness, more flexibility, and reducing processes between divisions. This leads to flatter organisation that is not only the change of organisational structure but also the change of decision-making process . In order to avoid delays and support for rapid innovation, decisions should be delegated to the innovation team. The approval of top management is only needed at the checkpoints or gates of the innovation process. Furthermore, Innovation is not suitable with multi-level hierarchy as the new idea and radical innovation must pass through many approvals with high possibility of ideas being rejected. Moreover, this will discourage strong leaders, who try to overcome its cumbersome, but the slow-response organisation will eventually obstruct their abilities. For example, in 1989, Samsung had 3-7 steps for project approval. This took up 24 days for the proposal to go through 7 approvals to arrive final decision step from the president. On the contrary, proposal in 1995 needed maximum of 3 approvals decided on the same day. This change of the important process leads to speed of running business. Furthermore, the proposal form in 1995 is in English, this signified an attempt for globalization .

Key Individuals

With the goal of creating innovation in the company, Samsung needs the world-class human resources from both technical and business backgrounds. Its branding strategy is not only to create a brand that people trust and admire, but also to be a company that they desire to join. To foster this breakthrough R&D, Samsung set up worldwide objectives to catch the attention of the smartest people from around the world, and retain them. These people will be trained and implanted Korean and Samsung culture through one week of intensive Korean daily conversation class, one week of Orientation about company’s history, philosophy, and culture, and develop general management skills delivered by senior Samsung executives. The recruitment of world’s smartest innovators, inventors and designers are fundamental to the company’s success in creating the future technology.

Besides having the best people for the development of innovative capabilities, Samsung has a tool to identify the key players, such as Project leader, promoters, idea champions, or gatekeeper, in the organization. Experiential education programs that are enjoyable, innovative and effective have performed this identification task. For example in the Samsung Semiconductor unit, 90 managers were organised into groups and assigned to build up new equipment through the use of Lego blocks. The tool was just simple Lego blocks, but the equipment created in this experiment had to be functional. This activity, which required both creativity and teamwork, provided managers comprehension of the role each member played in team. Who is promoter, supporter, idea generator, and critical thinker are identified.

Effective Team-working

Currently, team-working increasingly reflects a deeper recognition that this method of working offers greater economic benefits. Cross-functional teams is an effective tool to bring in different knowledge sets needed for solving production problems, creating new businesses , or develop new strategies. Work as a team needs more participation, higher commitment, sharing knowledge and self-management . This is more organic and flexible approach that helps to initiate innovation implanting across organisational and national boundaries. For example, Automakers from USA and Japan collectively worked on the development of new car model. Committing to consumer trends, Samsung set up a group of about 30 businessmen called CNB (Create New Businesses) who had to discover long-term social and technological fashions and imagine new products, which fulfill promising demands. Samsung has harvested the fruits from its team-working and strong commitment to innovation , transforming low-quality producer to become a brand that create stylish mobile phone. In 2010, its sales of mobile phones were ranked as number one in the US market.

Long-term Commitment to Education

Invest in people is another key initiative needed to emphasize in the development of innovative organisation. Army without essential weapons cannot deliver its full potential. Those needed weapons are knowledge, which has to be developed by best practice training. Companies, such as Hewlett Packard, and Samsung, have committed in training and development programs to help spread innovation capability all over the organisation. Besides internal training programs, offering scholarship, postgraduate study opportunities and international work placement for its staff in 120 offices across 57 countries provide Samsung linkage with renowned universities, also bringing in knowledge and collaboration to the organisation. The by-product from doing so is incentives that help to attract and retain of the best and brightest inventor and businessperson from the global industry.

Extensive Communication

Communication is one of the factors causing failure in investing in ideas that go wrong since the beginning. These are those ideas that do not align with the company’s need. Communication within company about its strategy and customer demands is needed for the clear innovation pathways of researchers. Idea generated from either internal or external organisation must go through many steps of modification before adopting into a company. These steps become troubles for the huge companies. In the case of Samsung, idea management has been introduced to manage ideas from thinkers and distribute them all over the company. They will be evaluated by colleagues, supervisors, or assigned review staffs who add views, opinions and knowledge. In addition to internal communication, networking between firms is also key component in the creation of innovation . The network organisation is a group of several independent companies, which perform different tasks and contract one another. For example, one firm in the network focus on research and product design, another manufactures it, and a third does distribution. This approach gains a wide acceptance as it has strong rationale including rapid change of business environment , the cumbersome of large-size companies, importance of speed and flexibility. Moreover, partners’ collaboration helps to blend and complement different core competency in creating better innovation. Samsung has utilized this concept by building a team, called TechnoValley, undertaking only planning and marketing of product. Other partners in the network took care of technology, production, distribution, and promotion.

High Involvement in Innovation

Building a visionary company requires 1 percent vision and 99 percent alignment. In order to build a sustainable innovation culture, staffs have to practice innovation in everything they do. Practicing to tackle small challenge will make them ready for a bigger challenge. Samsung manager plays an important role in supporting this culture of practicing innovation by encouraging the innovation process and not pushing employees to short circuit the solution process.

External Forces

External forces shapes Samsung to become technology leaders. Previously, closed innovation was the model that Samsung Electronics followed. They invested in the best people and centralized their R&D unit. Today, Samsung cannot depend only on internal innovations, which may create the advanced operating system for mobile phone but not attractive one. Samsung open innovation center established to create striking design and user-friendly interface of Samsung mobile phone. It successfully engaged customers and suppliers in the innovation process at the early stage. Being based in Korea with large group of young technology-concerned consumers provides Samsung an innovative edge in consumer electronics including mobile phones. The replacement rate for mobile phones in Korea is estimated at 6-18 months, thanks to young Koreans who swiftly adapt new technology. Therefore, these trendy people have participated in testing and giving feedback, which provide significant information about customers’ desire. Korea, therefore, becomes an invaluable testing location for innovations prior to the companies unveil them on the world stage.

Creative Climate

Public reward for those who distinguish themselves as mains actor in innovation culture and who promote the value of innovation is the powerful tool to expand innovative thinking throughout the enterprise. There are many examples of escalating the visibility of innovation success, such as the company innovation award, inventor hall of fame. This illustrates the commitment a company have on its innovation and inspire employees by making them proud of their success. Idea management through the use of IT have increased the rate of product and process improvement, as contributions of ideas are traceable. It open up the communication all over the company and promote culture of sharing and creativity. Ideas are developed and talked widely not only in vertical but in horizontal fashion leading to innovative atmosphere. After the introduction of knowledge management solution in Samsung Electronics, there was a change in organizational climate. Employees have been become confident to be more suggestive, trustful, responsive to change, and eager to innovate. Forum and blog postings are the place for knowledge sharing where an automatic rewarding system is executed. The profitability of the products launched, have been chosen as the innovation performance indicators.

Learning Organization

Sharing knowledge and skill of employees brings about innovative performance. Samsung has identified two main challenges in the creation of learning organisation that are knowledge discovery and knowledge sharing. In the past, problems occurred due to lack of knowledge management, for example, lost of valuable knowledge from poor management, or repeating the same failures. To tackle such problems, organizational mechanisms and technological solutions to facilitate the innovation process in Samsung have been introduced. Firstly, Samsung Brainstorming Hours has been arranged to capture and spread ideas in any step of innovation process from idea generation to conversion and commercialization. This is not applied only in the new product development process, but also solving complex problems or business improvement. Two hours weekly meeting for cross-functional team in the room with tall windows, wireless connection, big-screen TV, snacks and drinks is designed to foster innovation process. This comfortable surroundings helps innovation workers to socialise with each other and share ideas. Secondly, company-wide simple but powerful blog has been introduced to encourage knowledge sharing and discovery. The blog helps employees understand and discuss ideas so as to extend previous knowledge continuously. Thirdly, knowledge warehouses have been built to have codifiable critical knowledge stored and accessible throughout Samsung Company. The “Lessons Learned System with Alert function” has been used to manage this knowledge and share it. For storing lesson learned, project managers has been trained about how and what knowledge to collect and given the project management manuals including many useful procedures such as how to write a closing report, how to create and store a project model, how to perform an After Action Review. In order to control overwhelming information, Alerts system notifies employees of newly stored knowledge that might be of interest and useful to their work.

Samsung has successfully transformed from local low quality manufacturer to a brand that produce admirable and stylish consumer electronics. Company performance has proven that Samsung has come to the right direction in last decade. The achievement of becoming innovative organisation started from the declaration to be the global leader in the industry in late 1990s. After the re-configuration and adopting team-working practice, Samsung organisation has been altered to be flexible and organic, leading to ability to develop innovative capability. In addition to the recruitment of the best people into the organization , Samsung has an experimental education tool to identify the key individuals, such as project leader, promoters, or gatekeeper, so as to blend different roles in creating innovation . These people are working under the well-designed knowledge management system and trustful and suggestive communication with the support of supervisors, fostering creative climate. Rewards system for innovative contributor, organisational mechanism and technological solutions has brought about the knowledge discovery and sharing throughout the company, creating learning organisation that sustains Samsung innovation competency.

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