As we have reported before, South Korea’s Samsung Electronics is a certainly a company to watch (click here, for example). Consider this: For six years, Samsung has been the second leading grantee of U.S. patents, behind only IBM. In the United States, Samsung sells one out of every four TV sets; a decade ago, it accounted for .5 of one percent of TV sales!
According to its Web site: “For over 70 years, Samsung has been dedicated to making a better world.” The company “leads the global market in high-tech electronics manufacturing and digital media.”
And Samsung plans on staying on the fast track. It spends $12 to $14 billion dollars per year on research and development activities.
In this month’s Costco Connection, there is an interesting in-depth cover story about Samsung’s recent growth and its product planning and management philosophy. Eric Traub reports that:
“It’s not just televisions where Samsung has taken the lead. The company now sells 23 different categories of consumer products in North America. Its Galaxy smartphones have become a viable option to Apple’s iPhone. The company has made strong inroads in large appliances, including washers, dryers, and refrigerators, winning praise for innovations and quality. And then there are its Blu-ray players, speakers, microwave ovens, vacuums, and LED lighting, which are also garnering sales.”
“‘We’re a company, even from a global perspective, that has anticipated changes in the marketplace,’ says Tim Baxter, president of Samsung Electronics America. Since joining Samsung, Baxter has been a key player in Samsung’s efforts to dramatically increase its American footprint. When it comes to television, ‘we anticipated the change from analog to digital, from picture tube to flat-screen HDTVs, and even from male-centric to female-centric purchases,’ Baxter explains. ‘In the process we decided to make some big bets that helped drive our TV business, our phone business, and even the semiconductor business, which were the three pillars that helped grow the company.’”
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Photo from Costco Connect
I think leadership is vital when marketing a company and its products. Baxter is clearly one of the top executives in the world. I equate it to football. When Pete Carroll left USC, they became just another Pac-12 team. Since Steve Jobs passed, Apple has taken a step back. Samsung has taken full advantage.
Even if you don’t own Samsung products, you can’t help but feel excited and proud of this company. One of the first concepts we talked about in class was predicting what your consumers want, and we decided this is not an easy task. However, Samsung has made it seem basically effortless. Their products are popping up everywhere, and with this kind of stimulation I bet they’ll continue to be a major player in the electronics market.
How anticipation important is we can see from the Samsung’s case. Consumer behavior is changing, from analog to digital like TV. Centric-purchasing group is changing from male to female. Catching up with changes and keeping the way of innovation is what Samsung did and continue doing for being a successful Global Powerhouse.
It’s amazing that less than a decade ago Samsung accounted for only about 0.5% of television sales. Now, it has increased its presence and accounts for about 25% of sales. Samsung is a multinational company originally from South Korea, which still is currently considered an emerging market. The ability of the firm to build its brand and to compete effectively against other, more established multinationals, such as Apple, is remarkable.
I currently own a Samsung Galaxy s4 smartphone and I love my device. I’ve had iPhone’s, Macbooks and other Apple products in the past and I think Samsung is a much better option. Samsung is very dedicated like you said above and it’s easy to believe when you use their Galaxy s4.
I find it interesting how a company like Samsung has constantly be a successful company for so long. I believe it’s marking strategies and willingness to keep up with the times in the market place has a big to do with its success.