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BCG Matrix Analysis – Samsung Global Market

INDIVIDUAL ASSIGNMENT

NAME: Amal Alkaabi

ID: 201406945
COURSE NAME: Introduction to Marketing
COURSE CODE: MKT 301
INSTRUCTOR’S NAME:
DUE DATE: 4th October, 2018

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Introduction

According to Knöpfle (2016), “Samsung Electronics Industry Co Ltd. was instituted

in the year 1969 by Byung-chull Lee”. In the start, the business only manufactured black-

and-white TVs, dish washers and fridge-freezers. During this period, Samsung just operated

national marketing in the state of South Korea, but it commenced with bulk manufacturing

and distributing color TVs in the year 1977. Bit by bit, Samsung extended its market reach.

The initial overseas division was instituted in the United States. Greatest of all the business is

obligated to its former fabulous development to an ever-increasing microchip technology

business (Knöpfle, 2016).

In the subsequent years, Samsung commenced manufacturing microwaves, air

conditioners, etc. The organization began a research and development facility in Suwon,

South Korea in the year 1980 and after two years, Samsung persisted with overseas reserves:

a sales transactions subordinate was founded in Germany along with a assembly subordinate

in the state of Portugal. During that period, numerous additional commodities were included

towards the manufacturing assortment. During the 1990s, Samsung industrialized the mobile

phone. The organization commenced production in China and also industrialized flat-screen

TVs, along with Blu-ray-players and mobile internet phones (Knöpfle, 2016).

In the year 2008, Samsung appropriated towards first place in the United States

cellphone market and with the presentation of the smartphone succession popularly known as

the Galaxy in the year 2010, Samsung succeeded it to acquire number one regarding revenue

within the international microchip technology businesses (Knöpfle, 2016).

Samsung is currently an international initiative functioning in 213 locations

internationally. Its number of employees are approximately 320,000 people in 84 nations

among which 70% of the staffs are operating external to Korea. Nonetheless, Samsung is

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somewhat concentrating on commercial divisions other than on nations or districts. Since the

year 2013, the organization has three significant divisions encompassing the Customer

Electronics, Device Solutions and Information Technology & Mobile Communications which

are divided up once again into nine other commercial divisions (Knöpfle, 2016).

Table of SBUs in terms of market share and market growth rate

IMAGE SOURCE: Market Sizes | Historical /Forecast [Digital image]. (n.d.). Retrieved
from https://extranet.zu.ac.ae:11006/portal/statisticsevolution/index#

The image above displays the statistics related to Samsung Televisions in the global market

worldwide.

IMAGE SOURCE: Mobile Vendor Market Share Worldwide [Digital image]. (n.d.).
Retrieved from http://gs.statcounter.com/vendor-market-share/mobile/worldwide

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The image above displays the statistics of Samsung Mobile phones pertaining to its

market share in the global market worldwide.

IMAGE SOURCE: Sinha, S. (n.d.). Global Smartwatch Shipments market share by

in Q2 2017 vs Q2 2018 [Digital image]. Retrieved from
https://www.counterpointresearch.com/global-smartwatch-shipments-grew-37yoy-q2-
2018/

The image above shows us the global smartwatch market share from which we can

retrieve the share for Samsung Smartwatches which is at 2% in Q2 2018.

IMAGE SOURCE: Can Samsung Challenge Apple's Smartwatch

Dominance? [Digital image]. (n.d.). Retrieved from
https://www.statista.com/chart/15035/worldwide-smartwatch-shipments/

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IMAGE SOURCE: Number of users of leading mobile payment platforms

worldwide as of August 2017 [Digital image]. (n.d.). Retrieved from
https://www.statista.com/statistics/744944/mobile-payment-platforms-users/

Strategic Business Unit - Market Share and Market Growth Rate -

Samsung Global Market
SBU Market Share Market Growth Rate
Television [0.231Million Units] = 2.1% 2.53%
Smart Watches [3.6 Million Units] = 7.94% 2%
Smart Phones [7.5 Million Units] = 16.54% 30.9%
Mobile Payments [34 Million Users] = 75% 13.79%

BCG Matrix Analysis

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Samsung television has been placed as a question mark due to the fact that it has a 2.1% of

market share with a 2.53% market growth making it a comparatively question mark with its

other comparative SBUs. The fact that it’s a question mark, doesn’t necessarily mean that it

cannot beat its competitors such as SONY, LG and other brands that are probably

outperforming Samsung, More innovative designs and lower prices could actually aid in

bringing the television business out of its question mark state.

Samsung mobile payments is an innovative solution and has been placed as a star as it is the

third most used mobile payments after Apple and other brands of mobile payments. With

75% market share and 13.79% market growth it may be the actual business unit that’s

uplifting Samsung’s commercial scene and economical advantage.

Smart Watches of Samsung are at dogs as other better brands are offering better features and

software at a cheaper price such as competitors Huawei. Apple also has a better market share

in this regard as Apple fans would not look at any non-Apple product. Smart Watches of

Samsung are profitable at one point, but more competitive releases of other brand watches

outperform Samsung and may need to be retrenched or less focused upon.

Smart Phones are the cash cows that bringing in the cash influx. Of course, who has not heard

of Samsung Smartphones and how it is actually comparing in terms of quality and

functionality with that of the famous Apple iPhones? The cash influx from this could be used

to provide research and development for bringing out better and cheaper smartwatches or

improve the line up or assortment of televisions in order to compete in this cut-throat

economy. Otherwise, this cash cow milking money could use its cash to innovate new

products or processes which may become new future stars.

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References

Knöpfle, G. (2016). Samsung Electronics and the Global Market. The History and the
Competitive Advantage. doi:9783668229914
(n.d.). Retrieved from https://extranet.zu.ac.ae:11006/portal/statisticsevolution/index#

Mobile Vendor Market Share Worldwide. (2017). Retrieved from

http://gs.statcounter.com/vendor-market-share/mobile/worldwide

Smartphone unit shipments of Samsung worldwide by quarter from 2010 to 2018 (in million
units). (n.d.). Retrieved from https://www.statista.com/statistics/299144/samsung-
smartphone-shipments-worldwide/

Sinha, S. (2018, August 30). Global Smartwatch Shipments Grew 37%YoY in Q2 2018,
Apple Watch Series 1 the Most Popular Model. Retrieved from
https://www.counterpointresearch.com/global-smartwatch-shipments-grew-37yoy-q2-2018/

Share of smartwatch unit sales worldwide by vendor in 2016. (n.d.). Retrieved from
https://www.statista.com/statistics/422229/smart-wearable-bands-market-share-companies/

Can Samsung Challenge Apple's Smartwatch Dominance? (n.d.). Retrieved from

https://www.statista.com/chart/15035/worldwide-smartwatch-shipments/

Number of users of leading mobile payment platforms worldwide as of August 2017. (n.d.).
Retrieved from https://www.statista.com/statistics/744944/mobile-payment-platforms-users/