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Case study of Samsung's mobile phone business

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Frame of Image  and successfully position itself as a widely respected and successful brand. JEL classification: L 63, M10 Key words: Samsung, mobile phone, strategy
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MBA student, KDI School of Public Policy and Management Professor, KDI School of Public Policy and Management
I. Introduction
For Samsung Electronics, 2003 was a watershed year. It successfully positioned itself as one of the world’s best mobile phone manufacturers and its products were featured all over the media. Many were calling its mobile phones as “the best gift for Christmas”1 or “the Mercedes of mobile phones.”2 Samsung’s achievements were particularly remarkable considering that its primary focus had previously been in semiconductors and home appliances. Indeed, when it first made the decision to enter the mobile phone business, industry observers viewed the move as foolhardy and reckless. But, much to their surprise, Samsung’s foray into the market turned out to be a great success, contributing significantly to the company’s profit growth and brand reputation. In 2003, Samsung posted net profits of 6 trillion won ($5 billion) on annual sales of 43.6 trillion won ($37.9 billion). As of April 2004, its market capitalization stood at around 100 trillion won ($87.4 billion). It had also surpassed Sony, which had been a benchmark for Samsung, in terms of revenues and market capitalization. (Exhibit 1) Samsung’s exports currently account for two-thirds (79%) of total sales. In addition, Samsung has built its brand arou


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Title Case study of Samsung's mobile phone business
Similar Titles
Material Type Reports
Author(English)

Lee, Boon-Young ; Lee, Seung-Joo

Publisher

[Seoul]:KDI school of Public Policy and Management

Date 2004
Series Title; No Working papers
Pages 29
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Industry and Technology < IT
Holding KDI school of Public Policy and Management

Abstract

This paper examines Samsung Electronics successful growth strategy in the mobile phone business. It examines its early efforts at developing a competitive product in the domestic market, its globalization strategies, and some of the key challenges it faces today. The paper provide insights into how a late-comer to an industry can overcome certain disadvantages and successfully position itself as a widely respected and successful brand.