Laptop and Samsung

A. Executive Summary This paper is center on Samsung Electronics Co. , and it has 4 major harvest- national posts. digital Media line produces digital electronics for twain(prenominal) person-to-person and assembly line uses. Telecommunication line produces variety of officious ph wizs and put out to carriers liquified crystal debunk line produces level screen monitors use on TVs, cellph wizs and electronic electronic computers. Last, semiconducting materials carrefour line produces re cristaltion chips utilize on computers and cell ph champions. For all(prenominal) harvest-tide lines, we forget be lecture ab surface their history, interprets of success, risks and opportunities, and recomm deceaseations.Lastly, we will give recommendations regarding how the companion should develop itself to be much lovable to investors. B. Introduction Samsung was founded in 1938 and be locate in Seoul, southern Korea. The founders name is Byun-Chull Lee. Samsung means three stars in Korean. It started as a trading exportation follow. In 1969, they became Samsung Electronics Co. And now it has become one of the largest applied science companies known knowledge domainwide (Samsung Electronics, 2011). It is al roughly known for its flagship convergences the Galaxy smart earphone and its liquid crystal display screens.Samsung became a publicly traded comp some(prenominal) in 2000. It has four major lines of worry, Digital Media, Telecommunications, liquid crystal display, and semiconducting material unit devices. C. Four Lines of pipeline 1. Digital Media Digital media is the line of business that consists of all of Samsungs digital consumer products, both foundation and in-person use. These products include individual(prenominal) computers, MP3 p storeys, cameras, telecastings, and home appliances. Samsung puts forward innovative designs, consume humanity- handing products, and power efficient products. Digital media consisted of 37% of all sales in 2010 (Sustainability Report, 2012).Samsung diffusion ChannelAs you shtup take heed from the graph downstairs is was the majority of Samsungs sales. In the 1970s, Samsung came out with its start black and white televisions, serve machines, refrigerators, and by the end of the decade blazon televisions. In the 1980s, Samsung was marketplaceing air conditioners, individualised computers, and the earthly concerns smallest video show rec sound out. Since the 1990s, Samsungs psychiatric hospital boomed. They came out with the spheres freshman digital television, the worlds start-off Blu-ray disc player, the worlds first HD camcorder, and the worlds thinnest television ( about Samsung, 2012).Samsung in like manner led the home entertainment business into the 3D market. Digital medias record of success is by all odds significant. Its sales numbers deal add-on by about 4 jillion USD. Unfortunately, the bread are rattling pocket-size compared to its sale s. This is payable to Samsungs high coronation in research and maturement. You can see the difference amongst sales and profits in the graph shown below. The biggest risk for the digital media line of business is whether the large coronations in research and development will liquidate off against its competing products.Many electronic companies invest firmly in creating better products and imbedding innovative technology in them, so the competition is very high for this line of business. The only path for a company to be prospered is getting its products in the virtually consumers hands. So that is why Samsung invests about 6. 2% of be sales into research and development (Sustainability Report, 2012). This enables Samsung to envision that its products are of the best quality, have the most innovative technology, provide convenient and move features, and have a stylish design.Research and development will always be one of the biggest investments of a successful technolog y company. Samsung should hold out its high investments to secure its place as the draw in technology and innovation in this industry. Since Samsung is a worldwide leader in technology, it should use this advantage to lead the rest to the next level of innovation. Samsung has already lead differents in the 3D home entertainment business now it has the hazard to go further and create more advanced products that will lead its consumers to a more advanced and convenient lifestyle. 2. TelecommunicationsSamsung Telecommunications is one of the essence(predicate) line of Samsung Electronics. It is known as Samsung lively and wireless, which provides a variety of personal and business communications performances, much(prenominal) as spry phones, tablets, and wireless infrastructure equipments (Samsung, 2011). In 1988, Samsung Electronics merged with telecommunication, which then became a product line of Samsung Electronics ( follow history, 2012. ). In 1986, Samsung released its first inherent car phone, merely it failed due to the poor people products qualities. But, the company did not give up on telecommunication product line.In 1992, Samsung essential 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 service market. Samsung Electronics has been successful since the company expended business into global market. Samsung took first musical note and exported its personal phones to Sprint, an American CDMA carrier, and then Samsung extended into GSM market. The companys phones are harmonious with the remunerationworks of leading wireless service providers, including AT&T, Sprint Nextel, T-Mobile USA, and Verizon Communications.It has powered Samsungs developing in the telecommunications industry. The bestselling Galaxy S smartphones was launched in 2011. It has been sold more than 20 trillion units around the world. In 2012, Samsun g Electronics was ranked the seventeenth of global 500 companies by the pecuniary Times (Samsung annual report, 2012). By end of second take out 2012, Samsung Electronics accounted for 330 million or 21. 2% of worldwide read 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 apparent(a) law wooings.Samsung Electronics has baffling with lawsuits in more than 10 countries between Samsung and Apple (Wingfield, 2012). Opportunity for Samsung is that partnership with more carriers, which would serve Samsung Telecommunication to expand their business and market share. The recommendations for Samsung telecommunication is that centering on unique technology design. I ideate that will not only help Samsung avoid lawsuits, but also augment 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 more different applications such as, televisions, mobile phones, laptops and computers. LCD screen has been one of the popular products of Samsung, yet it still faces risks and needs whatever improvement to perpetrate more customers ( blood cell, Stansell, & Greenland, 2010). Mote et al. (2010) state that Samsung created LCD technology in 1991. The LCD circuit card 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 oer 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 fiver million LCD beautifys per calendar month. Epperson shows that, total element revenue of LCD was about 62. 6 trillion U. S dollars in 2011. thither were about 330 million shares, and the bell was 1,067 dollars per share.Samsung has also maintained the largest market share in the global LCD televisions from the first quarter 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 seems really outstanding, Samsung is facing many risks. One of the risks that Samsung confronted was about LCD unornamented infringement. In 2008, Sharp filed the suit against Samsung in the U. S. District Court for violating its four patents connect to a technology to improve the compute quality of LCDs. Then, Sharp expanded the suit to southern Korea in December of the uniform year.Samsung fought back in the same month with lawsuits in Japan and the U. S. F or some reasons, Samsung win over Sharp in Japan, but lose the case in the U. S. In 2009 US International Trade focussing began to block Samsung LCD products. Samsung also faces price war from other serious competitors such as LG, Sony, Toshiba, and Panasonic. In standardised & pitifuls Equity Research, Samsungs LCD sales are decreasing due to the very rivalrous prices other competitors tolerate consumers (Patel, 2012). Base on LexisNexis Academic (2012), Samsung beneficial created a new technology of LCD called Active-matrix OLED (AMOLED).This is another type of flat panel display which is very thin and whippy. Samsung inform 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 lustrous opportunity for Samsung in the future to increase its LCD revenues and profits (Samsungs flexible, 2012). (Google images) To overcome risks and be more cunning to investors, Samsu ng should obtain LCD patent comfortion. For example, when any LCD design is created, Samsung should register for a license or trademark to protect the company from copyright.Samsung also need to focus on Research and Development investment to create new technology, new products and take a chance out ways to lower the yield costs, so they can compete on price with others. 4. Semiconductors The decision of entering the semiconductor device business is essential to Samsung. Byung-Chull Lee, the founder of Samsung, know 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 immovable to form Samsung Semiconductor and Telecommunications Co. in 1978.However, due south Korea is lack of technological expertise, and thats when the South Korean government steps in. The South Korean government required contrary telecommunications equipment manufacturers to hand out advanced semiconductor technology, i n order for them to get recover 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 increased 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 repositing and LSI (Large-Scale Integration). Like the past 15 years, Samsung has transcend the position in the dynamic random-access computer storage 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 turn to another semiconductor manufacturer.Losing this huge cu stomer 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 exact. thither is a growing convey on semiconductor out in the market. Although the demand of desktop computers is slowing down, which will simulate 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 yield of semiconductor due to its cosmetic surgery 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 control 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 buy at for innovation in the areas of technology.Product lines involved with other companies regarding the patent lawsuits. Lawsuits have negatively impacts on companys growth. In order for company to maintain sustainability and remain 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). collective profile. Retrieved from http//www. samsung. com/us/aboutsamsung/corporateprofile/ Epperson, L. (20 12). Samsung Electronic Co. , Ltd. make cleans. 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 discharge 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. hypertext mark-up language 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&ctgryt ype=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). orbicular 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