Laptop and Samsung

A. administrator Summary This paper is foc employ on Samsung Electronics Co. , and it has four major crossing bloods. digital Media line produces digital electronics for both ain and business uses. telecom line produces variety of winding ph bingles and supply to railway carriers liquid crystal display line produces humdrum screen superintends apply on TVs, cell telephone sets and reckoners. Last, semiconductor units product line produces memory chips used on computers and cell phones. For each product lines, we volition be lecture intimately their history, records of victor, fortunes and opportunities, and recommendations.Lastly, we leave alone give recommendations regarding how the fellowship should develop itself to be to a greater extent attractive to investors. B. Introduction Samsung was founded in 1938 and atomic number 18 located in Seoul, second Korea. The founders name is Byun-Chull Lee. Samsung means three stars in Korean. It started as a trading expor t company. In 1969, they became Samsung Electronics Co. And now it has become one of the largest applied science companies known worldwide (Samsung Electronics, 2011). It is almost known for its flagship products the Galaxy smartphone and its liquid crystal display screens.Samsung became a publicly traded company in 2000. It has four major lines of business, digital Media, Telecommunications, liquid crystal display, and semiconductor units. C. Four Lines of Business 1. Digital Media Digital media is the line of business that consists of all in all of Samsungs digital consumer products, both nursing home and personal use. These products include personal computers, MP3 players, cameras, televisions, and home appliances. Samsung puts forward innovative designs, select world- kick the bucketing products, and power efficient products. Digital media consisted of 37% of all gross gross revenue in 2010 (Sustainability Report, 2012).Samsung Distribution ChannelAs you can elate from the graph below is was the majority of Samsungs sales. In the 1970s, Samsung came bug out with its initiative black and white televisions, washing machines, refrigerators, and by the end of the decade dissimulation televisions. In the 1980s, Samsung was marketing air conditioners, personal computers, and the worlds smallest moving picture tape recorder. Since the 1990s, Samsungs grounding boomed. They came out with the worlds offset digital television, the worlds graduation exercise Blu-ray disc player, the worlds first HD camcorder, and the worlds thinnest television (About Samsung, 2012).Samsung also led the home entertainment business into the 3D market. Digital medias record of success is definitely significant. Its sales numbers have meshd by nigh 4 billion USD. Unfortunately, the profits are in truth low compared to its sales. This is receivable to Samsungs high investment in research and maturation. You can underwrite the difference between sales and profits in the graph shown below. The biggest risk for the digital media line of business is whether the large investments in research and development will pay off against its competing products.Many electronic companies invest heavily in creating better products and imbedding innovative engineering science in them, so the competition is precise high for this line of business. The only way for a company to be successful is initiateting its products in the most consumers hands. So that is why Samsung invests about 6. 2% of keep down sales into research and development (Sustainability Report, 2012). This enables Samsung to ensure that its products are of the best quality, have the most innovative technology, provide convenient and move on features, and have a stylish design.Research and development will al ways be one of the biggest investments of a successful technology company. Samsung should continue its high investments to infrangible its place as the loss leader in technology and innovat ion in this industry. Since Samsung is a global leader in technology, it should use this advantage to lead the rest to the next level of innovation. Samsung has already lead others in the 3D home entertainment business now it has the opportunity to go shape up and create much than advanced products that will lead its consumers to a to a greater extent advanced and convenient lifestyle. 2. TelecommunicationsSamsung Telecommunications is one important line of Samsung Electronics. It is known as Samsung mobile and wireless, which provides a variety of personal and business communications doings, such as mobile phones, tablets, and wireless infrastructure equipments (Samsung, 2011). In 1988, Samsung Electronics merged with telecommunication, which thence became a product line of Samsung Electronics (Company history, 2012. ). In 1986, Samsung released its first reinforced-in car phone, but it failed due to the poor products qualities. But, the company did not give up on telecommunic ation product line.In 1992, Samsung developed its own mobile phone systems. In 1997, they developed worlds smallest CDMA mobile phone (Company history, 2012). Samsung became the leader in the personal communications go market. Samsung Electronics has been successful since the company expended business into global market. Samsung took first step and exported its personal phones to Sprint, an American CDMA carrier, and then Samsung broad into GSM market. The companys phones are compatible with the terminalworks of leading wireless service providers, including AT&T, Sprint Nextel, T-Mobile USA, and Verizon Communications.It has powered Samsungs growth in the telecommunications industry. The bestselling Galaxy S smartphones was launched in 2011. It has been sold more than 20 gazillion units around the world. In 2012, Samsung Electronics was ranked the 17th of global 500 companies by the Financial Times (Samsung yearly report, 2012). By end of second disembowel 2012, Samsung Elec tronics accounted for 330 one million million million or 21. 2% of worldwide demand of mobile phones (Samsung annual report, 2011). (See Fig. 1. ) Fig. 1. Samsung Smartphone Market shares in 2011 19. 9% (Samsung) The major risk was patent law compositors cases.Samsung Electronics has concern with lawsuits in more than 10 countries between Samsung and orchard apple tree (Wingfield, 2012). Opportunity for Samsung is that confederacy with more carriers, which would help Samsung Telecommunication to expand their business and market share. The recommendations for Samsung telecommunication is that focus on unique technology design. I think that will not only help Samsung avoid lawsuits, but also ontogeny the market share and customer royalty. 3. Samsungs LCD Display A liquid crystal display (LCD) is a flat screen monitor that is made of a thin liquid crystal layer in the middle.LCDs are used in many different applications such as, televisions, mobile phones, laptops and computers. LCD screen has been one of the best-selling products of Samsung, yet it comfort faces risks and call for some improvement to attract more customers (Mote, Stansell, & Greenland, 2010). Mote et al. (2010) soil that Samsung created LCD technology in 1991. The LCD panel was first used for laptop computers and showed at a world trade event in Japan. The first LCD display for laptop computer was 9. 3 inches. In 2002, Samsung introduced a 54-inch digital LCD television monitor-the largest LCD television in the world at that time.Today, Samsung is the most famous LCD maker in the global market (Mote, Stansell, & Greenland, 2010). According to About Samsung (2012), Samsung sustained the highest profit among LCD manufactures over the world in 2007. In 2009, Samsung became the first company that sold more than ten million LCD televisions in the first half of the year and more than five million LCD panels per month. Epperson shows that, total segment revenue of LCD was about 62. 6 trilli on U. S dollars in 2011. There were about 330 million shares, and the expense was 1,067 dollars per share.Samsung has also maintain the largest market share in the global LCD televisions from the first empennage of 2011 to the second quarter of 2012 (About Samsung, 2012 Epperson, 2012). (Data collected from www. statista. com) Although the record of success of LCDs attends really outstanding, Samsung is facing many risks. One of the risks that Samsung confronted was about LCD patent infringement. In 2008, nifty filed the suit against Samsung in the U. S. District Court for violating its four patents related to a technology to improve the picture quality of LCDs. Then, sharp expanded the suit to South Korea in December of the same(p) year.Samsung fought back in the same month with lawsuits in Japan and the U. S. For some reasons, Samsung won over Sharp in Japan, but lose the case in the U. S. In 2009 US worldwide Trade Commission began to block Samsung LCD products. Samsung a lso faces determine war from other serious competitors such as LG, Sony, Toshiba, and Panasonic. In standard & scummys Equity Research, Samsungs LCD sales are decreasing due to the very competitive prices other competitors leave consumers (Patel, 2012). Base on LexisNexis faculty member (2012), Samsung just created a forward-looking technology of LCD called Active-matrix OLED (AMOLED).This is another type of flat panel display which is very thin and flexible. Samsung announced that it will use AMOLED to invent a new model of its mobile phone named Youm, and the product will be introduced at the beginning of 2013. This is considered as a bright opportunity for Samsung in the rise to increase its LCD revenues and profits (Samsungs flexible, 2012). (Google images) To overcome risks and be more attractive to investors, Samsung should obtain LCD patent fosterion. For example, when any LCD design is created, Samsung should register for a license or trademark to protect the com pany from copyright.Samsung also need to focus on Research and training investment to create new technology, new products and find out ways to lower the production costs, so they can compete on price with others. 4. Semiconductors The decision of entering the semiconductor business is essential to Samsung. Byung-Chull Lee, the founder of Samsung, recognize how big the high-tech electronics market would be in the future in mid-1970s, and that Samsung has to be a major player. Because of that, he decided to form Samsung Semiconductor and Telecommunications Co. in 1978.However, South Korea is lack of technological expertise, and thats when the South Korean government steps in. The South Korean government required immaterial telecommunications equipment manufacturers to hand out advanced semiconductor technology, in order for them to get access to the South Korean market. (Data collected from IBIS World) Semiconductor is one of the most successful product lines in Samsung. The sales of semiconductor have change magnitude from 32. 6 billion dollars in 2010 to 33. 5 billion dollars in 2011. Moreover, its net income has also increased from 16 million dollars in 2010 to 48 million dollars in 2011.In fact, the companys semiconductor segment consists two major parts memory and LSI (Large-Scale Integration). Like the past 15 years, Samsung has topped the identify in the dynamic random-access memory in 2011 with 42. 2% of shares. For the LSI segment, Samsung produces LCD panels for computer monitors and notebook displays. In 2011, Samsung has about $26. 5 million of revenue from LCD panel business (IBIS world, 2012). One of the biggest customers to Samsungs semiconductor product line is Apple, which is recently considering switching to another semiconductor manufacturer.Losing this huge customer will definitely risk the market position of Samsung, as it is now at the top of the semiconductor manufacturing market. Opportunity for the product line would be its rising d emand. There is a growing demand on semiconductor out in the market. Although the demand of desktop computers is slowing down, which will affect the sales of memory part of semiconductors, demand of tablets and smartphones is raising rapidly, which will lead to a rise in demand of semiconductor (Epperson, 2012). There are still a lot of rooms for the sales of semiconductor to grow.Increasing production of semiconductor due to its raise in demand may not seem hard in the future. Manufacturers are now developing automated production in order to decrease their production cost. Samsung can start increase semiconductors supply to these robots, since those parts will boost the demand for the sophisticated electronics that retain the robots. D. Conclusions and Recommendations for Samsung One of the important recommendations is technology innovation. Samsung Electronics is a high-tech company, which provided support for innovation in the areas of technology.Product lines involved with othe r companies regarding the patent lawsuits. Lawsuits have negatively impacts on companys growth. In order for company to maintain sustainability and quell competitive in the industry, we recommend that the Samsung Electronics should focus on unique technology designs. In that way, it will protect the company from getting sued and attract more customers. Samsung should also increase semiconductors productions by finding opportunities to cooperate and be a supplier to other smaller electronic companies. Again, the company hould invest more in R&D projects, so it can built new technologies and new products in order to compete against its competitors. E. References About Samsung. (2012). embodied profile. Retrieved from http//www. samsung. com/us/aboutsamsung/corporateprofile/ Epperson, L. (2012). Samsung Electronic Co. , Ltd. Hoovers. Retrieved Oct. 27, 2012, from Hoovers database. Mote, D. , Stansell, C. M. , Greenland, P. R. (2010). Samsung Electronics Co. , Ltd. In International Directory of Company Histories, 108, 433-440. Retrieved Oct. 27, 2012, from Gale Virtual Reference Library database. Patel, A. (2012).Samsung Electronics. Standard & Poors Equity Research. Retrieved Oct. 27, 2012, from Net Advantage database. Samsung Electronic. (2011). FY 2011 Annual report. Retrieved from http//www. samsung. com/us/aboutsamsung/ir/newsMain. do. Samsung. (2012). Samsung Company history. Retrieved from http//www. samsung. com/us/aboutsamsung/corporateprofile/history04. html Samsung. (2011a). Samsung 2011 annual report. Retrieved from http//www. samsung. com/us/aboutsamsung/ir/newsMain. do Samsung. (2011b). Samsung Telecommunications. Retrieved from http//www. samsung. com/global/business/telecommunication/productInfo. do? tgrygroup=11&ctgrytype=18&b2bprdid=146 Samsungs flexible AMOLED display codenamed Youm in the works. (2012, April 11). Kashmir Monitor (India). Retrieved Nov. 28, 2012, from LexisNexis Academic database. Sustainability report. (2012). Glob al harmony with people, society, and environment. Retrieved from http//www. samsung. com/aboutsamsung/sustainability/sustainabilityreport Wingfield, N. (2012, August 24). Jury awards $1 billion to Apple in Samsung patent case. The New York Times. Retrieved from http//www. nytimes. com/2012/08/25/technology/jury-reaches-decision-in-apple-samsung-patent-trial. html? _r=0