By: Ashley Love Date: 07/02/2016



Company Name: Samsung Electronics Limited Parent Company: Samsung Group

Samsung Group is one of the world’s leading electronics companies and was founded in 1938 by Byung-Chull Lee. He started the business with a focus on trade export that included dried Korean fish, vegetables and fruit to Manchuria and Beijing. Taegu, Korea was where Samsung Group was founded and they not only sell electronics, but have a wide variety of subsidiaries from fashion to insurance (Group, 2016). Samsung has three subsidiaries that are on the Forbes Fortune 500 list that includes Samsung Electronics Limited (#13), Samsung C&T (#441), and Samsung Life Insurance (#456) (Fortune, 2016). Samsung employs 391,000 employees in 84 countries which is more than Apple, Google and Microsoft combined (Newsroom, 2016)


Refer to Block 2 class slides for the five financial measures we discussed

  • Net Income: 18,694,628,000 Annual Net Income for 2015 (Yahoo, 2016)

Q1 of 2016 – 43.81 billion U.S. dollars (Electronics, 2016) It is up 12 percent from Q4 of 2015.

  • Net Profit Margin: 57% as of March 2016 (Net Margin, 2016)
  • Debt to Assets Ratio: 01 as of March 2016 (Long, 2016)
  • Year over Year: Q1 2015 revenue was up 7.7% YoY and profit was up 12%. Due to increased competition across the smartphone board in the past few years, Samsung saw a sales slump. As of March 31 of this year, revenue for Samsung was 49.78 trillion won, an increase of 5.7% since Q1 last year and operating profit jumped 12% to 6.68 trillion won from Q1 of 2015 (Benson, 2016).
  • Compare stock performance to market index: In the past five years, Samsung has almost always performed better than Dow and had its biggest high in that period on May 27, 2013 at 84.86% compared to Dow which was only at around 23% at the time (Finance, 2016).

Samsung Electronics Limited was founded by Lee Byung-chul and is the chief subsidiary of Samsung Group. It was created in 1969 as a way for Samsung to get into the television industry. It began selling black and white TVs domestically in Korea then later began exporting. Samsung Electronics accounted for 70% of Samsung Group’s revenue in 2012 (Global, 2016).  Jong-Kyun Shin is the current CEO of Samsung Electronics (Jong-Kyun, 2016).






Samsung Electronics Co., Ltd. is mainly engaged in the production of consumer electronic products including cellular phones, televisions, household appliances, cameras, and computers (About, 2016). I will be discussing items from their Samsung Galaxy and Smart TV lines below.


Product/Service line A: Cellular Phones

Product/Service example A: Samsung Galaxy S4Sa


Product/Service line B: Tablets

Product/Service example B: Samsung Galaxy Note 10.1


Product/Service line C: Televisions

Product/Service example C: 55” LED 8000 Series Smart TV



Complete the five segmentations according to what you learned in Marketing. Be specific.

Product/Service example A: Samsung Galaxy S4

Geographic: Worldwide

Demographic: Male and Female, age 15 to 45, existing Samsung Customers who are young professionals (Concept, 2013)

Psychographic: Young professionals who use their phones for business and to interact in the virtual world

Benefits Sought by consumer: Those who want a sleek cellular phone with 4G speeds, exceptional capturing quality for front and back facing cameras, and need to access the virtual world from anywhere.

Usage Rate of consumer: Heavy/Daily User.

Product/Service examples B:  Samsung Galaxy Note 10.1

Geographic: Worldwide

Demographic: Male and Female, age 15 to 45, existing tablet users who may or may not be Samsung Users

Psychographic: Young professionals who want to access the virtual world from anywhere.

Benefits Sought by consumer: A tablet that is comparable to the IPAD, but at a lower price point. Clear graphics and high speed data is an optional add on.

Usage Rate of consumer: Heavy/Daily User


Product/Service example C: 55” LED 8000 Series Smart TV

Geographic: Worldwide

Demographic: Males, 18-45, existing Smart TV users but may not be Samsung TV Owners

Psychographic: Users who are looking for a Smart TV with lots of bells and whistles and the amazing benefit of projecting a video from a Samsung Smart phone to the TV.

Benefits Sought by consumer: Users wanting an extensive menu that is divided into five panels for live TV, movies or TV shows, your personal photos/videos/music, social content recommendations from services like Twitter, Facebook, or YouTube, and apps. Someone who wants to control the TV with your voice or motion gestures and someone who has a Samsung smartphone or tablet, you can beam video content to and from your Smart TV. It’s similar to Apple’s AirPlay.

Usage Rate of consumer: Daily


COMPETITION (Include Citations)

Competitor 1: Apple

Competitor’s product/service: iPhone 4

Competes with your product/service A: Samsung Galaxy S4


Competitor 2: RCA

Competitor’s product/service: Cambio 10.1

Competes with your product/service B: Samsung Galaxy Note 10.1


Competitor 3: VIZIO

Competitor’s product/service: VIZIO E-Series 55” Class Full-Array LED Smart TV

Competes with your product/service C: 55” LED 8000 Series Smart TV


Rank Each Company’s Success (yours and the 3 competitors) along with metric/numerical evidence of some kind (annual revenue, annual profit, ticket sales, concert revenue, fan base, twitter followers, consumer reviews, age of company, size of company, etc.), with #1 as the most successful:

Company #1 Samsung — $200,653,482,000 total revenue 2016

Company #2 Apple — $233,715,000  total revenue 2015

Company #3 VIZIO — $3.1 Billion total revenue 2015

Company #4 RCA, General Electric – $117,386,000  total revenue 2015



Samsung started as a trade organization and emerged into one of the leading technology companies in the world. Samsung produces a lot more than just the cell phones we see advertised and has an array of subsidiaries. I found it interesting that Samsung employs more people than the top three other major technology companies combined. From fish to TVs to where Samsung is now is a true success story.

Samsung provides innovative technology that has a very competitive edge and is neck and neck with their competitors. Products such as the Samsung Galaxy compete with higher cost products like the Apple iPhone, but they also have lower cost products that compete with companies like BLU, who offers phones for a fraction of the prices that other companies do. The quality of their products has made them a go-to brand for electronics including small and large appliances, TVs, tablets, and cellular phones.

Samsung faced a slump in the market for a few years as they faced a large amount of competition, but things picked back up at the end of 2016 for them. They have many new and innovative products that they are launching this year including the Family Hub Refrigerator that looks like a giant tablet that includes a snapshot feature that takes pictures when you shut the door so you know what you need when you go grocery shopping, the ability to watch what is on you Samsung TV on the refrigerator and you can even order your groceries via the screen and have them delivered to your door. Samsung is a company that has been around for a while and I do not see them going anywhere anytime soon!




For each reference, there should be at least one short-form, in-text citation in the body of your work to show where you used the source.


Samsung Group Affiliated Companies. (2016). Retrieved from


About Samsung. (2016). Retrieved from


Fortune 500 Business List. (2016). Retrieved from


Newsroom at Samsung. (2016). Retrieved from


Samsung Electronics’ revenue by quarter from 2011 to 2016. (2016). Retrieved from

Net Margin Samsung. (March 31, 2016). Retrieved from


Long Term Debt to Assets Ratio Samsung. (2016, March 31). Retrieved from


Samsung Yahoo Income Statement. (2016). Retrieved from


Yahoo Finance Stock Chart for Samsung. (2016). Retrieved from{“range”:”5y”,”allowChartStacking”:true}


Benson, M. (2016, April 28). Samsung announces Q1 2016 earnings. Retrieved from


ReferenceForBusiness Samsung Electronics. (n.d.). Retrieved from


Samsung Global Strategy Group. (2016). Retrieved from


Jong-Kyun Shin. (2016). Retrieved from


Samsung Galaxy IV Original Concept. (2013, January 20) Retrieved from