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SAMSUNG‘s business
operation
in the UNITED
KINGDOM
INSTRUC MSc. Pham
TOR Ha Trang
1 – Hai Ngan
1. About
SAMSUNG
2 – Hai Ngan
3 – Hai Ngan
1.1 About
SAMSUNG
- Samsung Group is
founded in 1938 by Lee
Byung-chul.
- Samsung Electronics Co.,
was established in 1969. It
becomes one of the world’s
largest electronic
companies.
- Products: TVs,
smartphones, tablets,
network systems, system
LSI, foundry, LED solutions,
...
4 – Hai Ngan
1.2
Samsung -
United
Samsung has a
Kingdom
strong position
in the UK
market, with
77% positive
consumer
perception.
Ten most popular consumer electronic
brands in Great Britain as of Q3 2024
(Statista)
2. External
ENVIRONME
NT
5 – Linh Chi
6 – Linh Chi
2.1
International
ENVIRONMEN
2.1.1
T
FDI
Despite a fall of
6%, the UK is still
a potential market
forSamsung
→ Samsung.needs
a methodical and
flexible
investment
strategy. Foreign direct investment highlights (GOV.UK,
2024)
7 – Linh Chi
2.1.2 International Economic
Intergration
South Korea is the first
Asian country to sign
an FTA with
the UK post-Brexit.
The UK left EU
→ Samsung has an
edge over EU
companies with lower
tariffs.
Korea and Britain begin third round of talks to
enhance FTA (Korea JoongAng Daily, 2024)
8 – Linh Chi
2.1.3 International Economic
Trade
Trade and Investment Factsheets (Department for Business&Trade, 22
November 2024)
9 – Linh Chi
2.2 Foreign
ENVIRONMEN
T
10 – Linh Chi
Parliament Government
Prime Minister
House House
of of Lords
Cabinet
commo
ns
P - Political
Voters
E-
Economic
King/ Queen
S - Social
→ The stable politicial environment of UK T-
makes it a reliable destination for Technologicial
Samsung’s investment.
11 – Linh Chi
GDP per capita
is high, The UK economic is a
indicating that social
the UK is a P-
market economy.
potential Politicial
Create business
market for operation E-
product Increase Economic
consumption. competition S - Social
GDP per capita (current US$) – United
Kingdom (Worldbank, 2023)
T-
Technologicial
12 – Linh Chi
South Korea The United Kingdom
Power + A hierarchical + An egalitarian society
Distance society + Have the rights to
+ Leaders exist to make decision
give orders P-
Individual + “We” go first – + “I” go first – promote Politicial
ism promote collective personal ego E-
values + High need for personal Economic
+ High responsibility space
towards the society
Hofstede indexs between South Korea S - Social
→ Samsung needs to adapt its decision-
and United Kingdom (The Culture
making and focus on2024)
Factor, building strong
personal relationships to align with UK T-
business practices. Technologicial
13 – Linh Chi
The UK has a long history of leadership
and innovation in technology.
P-
Politicial
The UK market has a strong presence of E-
e-commerce and online retails as well as Economic
retail chains.
S - Social
T-
Technologicia
14 – Hai Ngan
2.3 Domestic
ENVIRONMEN
T
The power of
Buyers
- UK is one of the leaders in
technology.
- Consumers have a lot of
choices and can easily
compare features, prices
and reviews of products.
=> Samsung needs to
build a strong customer
care system to retain
customers.
15 – Hai Ngan
2.3 Domestic
ENVIRONMEN
T
Competitive
Rivalry
- Global brands: Apple,
Sony, Panasonic, ...
- Rivals are also investing
heavily in R&D.
=> Samsung must
continue innovating and
focus on niche segments.
16 – Hai Ngan
2.3 Domestic
ENVIRONMEN
T
Threat of New
Entrants
- It’s difficult for start ups
to compete with a long-
standing brands such as
Samsung.
=> The threat of New
Entrants is not an
immediate problem for
Samsung in the UK
17 – Hai Ngan
2.3 Domestic
ENVIRONMEN
T
Power of
Suppliers
- Samsung still relies on
key suppliers (electronic
component suppliers,
processing chips from
companies such as
Qualcomm, TSMC.
=> Maintaining strong
partnership is crucial.
18 – Hai Ngan
2.3 Domestic
ENVIRONMEN
T
Threat of
Substitutes
- Samsung has recently
been overtaken by SK
Hynix.
- This is a wake-up call for
Samsung.
=> Samsung needs to
invest in new technologies
and diversify its product
range.
3. Internal
ENVIRONME
NT
19 – Minh Anh
20 – Minh Anh
3.1 Samsung’s
main
STRATEGY in the
Cost Reduction
UK 01
+ The push of Local adaptation
international
trade
+ The post- 02 + Social and
Brexit economy Consumer taste
has been tough
+ Distribution
Channels
21 – Minh Anh
3.1 Samsung’s
main
STRATEGY in the
UK Low pressure for Local
adaptation
High pressure for Cost
reduction
→ GLOBAL
STRATEGY
22 – Minh Anh
3.2 Samsung’s
ORGANIZATIONAL
STRUCTURE
Product Chief
Division Executive
Officer
(CEO)
Samsung Samsung Samsung Samsung Samsung Samsung Samsung
Biologics SDI Heavy Electronics Life Engineering C&T
Industries Insurance Corporation
South Africa Europe Australia Middle East Asia
America
Functional France Great Britain Germany Italy Netherlands
Division
23 – Linh
Ngan
3.2 Samsung’s
ENTRY MODE to the
UK
Samsung used the Wholly
owned subsidiaries as main
entry strategies to the UK
market.
SEUK (Samsung Electronic
UK Limited) is established
in th 1980s. This is a
subsidiary fully owned by
Samsung (not through a
merger or acquisition).
1 – Hai Ngan
July Samsung Electronics UK announced its acquisition
202 of Oxford Semantic Technologies (OST), a UK-based
4 knowledge graph technology startup founded in
2017 by three Oxford University.
Sep SEUK signed a strategic partnership with the
6 National Football League (NFL) as the official TV
2024 partner for the 2024 season in the UK.
Sep SEUK's Tax Strategy (UK Tax Strategy applies to
24 Samsung Electronics (UK) Ltd) was signed.
2024
Oct 23 Samsung Electronics UK hosted the Samsung
2024 Developer Conference (SDC24) in California,
highlighting AI innovation and marking a decade of
open innovation.
25 – Linh
Ngan
26 – Pham
Trang
3.2 Samsung’s
• SmartphonACTIVITIES in
es
the
• Price
skimming
UK
• Home • Competitiv
3.2.1 Marketing
appliances e price
• Laptops
Management• TVs Product Price
MIX
4Ps Promotio
Place
• Dealership’ n • Digital
s and channels
official • Push and
websites pull tatics
• Shops
27 – Pham
Trang
3.2.2 Supply Chain Management
The Smiling curve for Samsung
production in the UK:
Product Price
Place Promotio
n
28 – Pham
Trang
3.2.2 Supply Chain Management
Outsourcing and Global Suppliers: 3000 supplier,
primarily in Asia, to optimizePrice
Product cost and scale
production.
Technologicial Innovation and Automations: AI,
IoT, and big data analytics.
Place Promotio
Localization and Risk Management: diversified
n
sourcing and localized inventory systems, which
reduce vulnerabilities.
29
REFERENCES
1. UK Government. Jul 2024. Department for Business & Trade.
DBT inward investment results 2023 to 2024 (HTML version) - GOV.UK
2. Tugba Sabanoglu. Oct 2024. Statista.
Most popular consumer electronics brands UK 2024 | Statista
3. Edraw Mind. 2024. Samsung Marketing Mix (4Ps) Analysis | Edraw Mind
4. Wikipedia. 2024. Politics of the United Kingdom - Wikipedia
5. Alexander Kunst. Mar 2024. Statista. Samsung brand profile UK 2023 | Statista
6. Chief Economist Yael Self. Sep 2024. KPMG in the UK.
UK Economic Outlook - KPMG UK
7. UK Government. 2024. Samsung Electronics (UK) Limited.
30
REFERENCES
8. UK Government. 2024. Harman Automotive UK Limited.
HARMAN AUTOMOTIVE UK LIMITED overview - Find and update company informa
tion
9. UK Government. 2024. Harman Connected Services UK Limited.
HARMAN CONNECTED SERVICES UK LIMITED overview - Find and update compan
y information
10. UK Government. 2024. Samsung Semiconductor Europe Limited.
SAMSUNG SEMICONDUCTOR EUROPE LIMITED overview - Find and update compa
ny information
11. UK Government. 2024. Samsung Electro Mechanics GMBH.
SAMSUNG ELECTRO MECHANICS GMBH overview - Find and update company inf
ormation
31
REFERENCES
14. Technology Correspondent, Susan Watts. May 1994. The Independent News.
Samsung to license UK chip designs | The Independent
15. Samsung News. Oct 2022. Samsung Newsroom UK.
Samsung Tizen OS Expands Its Global Presence with New Licensing Partnerships
16. Sportfive. Sep 2024.
Samsung partners with NFL in UK & Ireland | SPORTFIVE - sports marketing agen
cy
17. Samsung News. Mar 2024. Samsung Newsroom UK.
Samsung Partner With Watkin Jones Group to Create the Future of Living In BTR r
esidential and Student Accommodation
18. Digital Journalist, Amy Johnson. Jul 2023. BTR News.
London Land Group and Samsung create smart living partnership
32
REFERENCES
19. Correspondent, Matthew Neville. Oct 2022. Bdaily.
Samsung announces partnership to support SMEs with growth-boosting tech | Bd
aily
20. Samsung News. Jul 2024. Samsung Newsroom UK.
Samsung Electronics Announces Acquisition of Oxford Semantic Technologies, UK
-Based Knowledge Graph Startup
21. Samsung Electronics Co, Ltd. Dec 2022. Independent Accountants' Review
Report. Samsung Electronics Co., Ltd. and its subsidiaries
22. Board Mix. 2024. Samsung Marketing Mix (4Ps) Analysis | Boardmix
23. Lead Trainer & Business Development Head at IIDE, Aditya Shastri. Apr
2024. IIDE. Extensive Marketing Mix Of Samsung - All 4Ps Explained
33
REFERENCES
25. Samsung News. Aug 2019. Samsung Newsroom UK.
[A Journey Towards a Sustainable Future] ② Sustainability in the Samsung Supply
Chain – Samsung Global Newsroom
26. Ahsan Ali Shaw. 2024. Scm Insight.
Value Chain Analysis of Samsung - SCM Insight
27. Dfreight. Apr 2023.
An Insight into Samsung Supply Chain Strategy : A Perfect Guide - 2023
28. Samsung, UK. About Us. Business Area. R&D Center
29. Leonard Evans. Sep 2023. Panmore Institute.
Samsung’s Organizational Structure & Its Characteristics (An Analysis) - Panmore
Institute
30. Business reporter, Rajeshni Naidu-Ghelani. Oct 2014. BBC News.
34
REFERENCES
31.World Economic. 2024. United Kingdom's Social Factors
32. Bank of England. Nov 2024.
Inflation and interest rates FAQS | Bank of England
33. European Commission. Jun 2011. Law. 02011L0065-20160715 - EN - EUR-Lex
34. European Commission. Jul 2012. Law.02012L0019-20180704 - EN - EUR-Lex
. Waste from Electrical and Electronic Equipment (WEEE) - European Commission
.
35. UK Government. Nov 2024.
Statistics on trade and investment between the UK and South Korea
36. Rob Joyce, Manager, Media Relations, Ernst & Young LLP. Jul 2024. EY.
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