Value Chain Analysis of Samsung 

Samsung is a South Korean technology and consumer electronics multinational conglomerate corporation. Lee Byung founded the business in 1938 as a trading firm; and shifted its focus towards consumer electronics and technology in the 1990s. Today, we’ll discuss the value chain analysis of Samsung; the primary and supporting activities involved in the process of value chain analysis; inbound and outbound logistics, operations, marketing and sales, services; infrastructure, HRM, technology, and procurement.

Products and services of Samsung

  • Hospitality
  • Information and communication technology
  • SSDs
  • DRAM
  • Consumer electronics
  • Electronic components
  • Medical equipment
  • Semiconductors
  • Healthcare services
  • Retail
  • Flash memory
  • Ships
  • Telecommunication equipment
  • Home appliances
  • Advertising
  • Entertainment
  • Construction
  • Financial services
  • Shipbuilding
  • Semiconductor company
  • Clothing
  • Automotive chemicals

Subsidiaries of Samsung

  • Marine & Fire Insurance
  • Heavy Industry Samsung
  • Cheil Worldwide
  • Samsung Life Insurance
  • Samsung Biologics, Asset Management
  • C&T Corporation Samsung
  • Samsung Electron Machines
  • Securities Samsung
  • Samsung SDI, SDS
  • Samsung Electronics, Engineering

Statistical facts and figures of Samsung

  • Annual revenue – 204.09 billion USD (2023)
  • Net income – 15 billion USD (2023)
  • Employees – 266,673
  • Net worth – 373.36 billion USD (2023)

Top competitors of Samsung

  • Lenovo
  • Huawei
  • Google Pixel
  • Asus
  • Xiaomi
  • Vivo
  • Apple
  • Micromax
  • Gionee
  • Intex
  • HTC
  • Nokia
  • Microsoft
  • iBall
  • Motorolla
  • Sony
  • Oppo

The value chain of Samsung would analyze the primary and supporting activities; inbound and outbound logistics, operations, marketing, services; infrastructure, HRM, technology, and procurement. Here’s the Samsung value chain analysis company example as follows;

Value Chain Analysis of Samsung 

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Samsung. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Samsung 

Some of the key elements and components involved in the primary activities of Samsung value chain analysis process are as follows;

Inbound Logistics of Samsung

Inbound logistics comprises of inflow of products and services into the company. Every large and big multinational company deals with hundreds of thousands of suppliers worldwide. It could be in the form of sourcing materials and supplies globally.

I-Large Network

Samsung is the world’s leading multinational conglomerate and deals with over 3000 supply chain partners and suppliers across the world. The tech company offers a wide range of products and services, and it is significant for the company to efficiently manage its supply chain and logistical operations. However, a vast majority of the company’s network is in Asian countries; the company is also dealing with suppliers in the US and the UK.

II-Logistics Strength

Logistics is one of the core strengths of Samsung, both inbound and outbound logistics. In fact, the company has established subsidiaries for logistics like SELC (Samsung Electronics Logitech) and SDS.

III-Material Sourcing

Samsung sources materials and supplies from multiple suppliers in Asian countries. The logistics subsidiaries collaborate with the other units of the company; and deliver the material to the R&D and manufacturing facility of the company.

Outbound Logistics of Samsung

Outbound logistics focuses on the outflow and movement of products and services from the company to the market. Samsung offers a wide range of products and services in various categories ranging from consumer electronics, semiconductors, electrical appliances, and smartphones.

I-Manufacturing Facilities

Samsung has established roundabout 10 production and manufacturing facilities in various countries across the world. The company has combined subsidiaries to manage its outbound logistical operations and functions. They are like selling, distributing, and transporting of finished goods from the company to the market.

II-Subsidiaries

SELC and SDC are two main logistics subsidiaries of Samsung and they manage the transport and distribution of Samsung electronics and other products in over 120 countries worldwide.

Operations of Samsung

Samsung has established various regional offices in different countries across the world to manage its global operations. Some of the company’s regional offices are in the following countries;

  • Singapore
  • Japan
  • Germany
  • USA
  • China
  • South Korea

Some of the main business divisions of Samsung are as follows;

  • Harman International Subsidiaries
  • Device Solutions
  • Information technology and mobile communications
  • Consumer electronics

The production and manufacturing facilities of Samsung are as follows;

  • Austin
  • Suzhou
  • Xi’an
  • Onyang
  • Pyeongtaek
  • Hwaseong
  • Giheung

Marketing & Sales of Samsung

Marketing and promotion play a key role for the brand Samsung and it helps the company to gain a competitive edge in the market. It allows the company to maintain a balance between sales and demand.

I-Strong Brand Image

Samsung executes various types of marketing and promotional campaigns to spread brand awareness. For instance, the sustainable brand image of Samsung helps the customers to choose the brand while shopping because it assures them that the company is environmentally friendly. As a result, the company earns the trust and confidence of customers and develops stronger relationships with them.

II-Distribution Network

The other marketing medium of Samsung is the distribution network; the company has developed both online and offline distribution networks across the world. They ensure the sale of the company’s products and services. The trend of online sales and e-commerce has been increasing and customers prefer to buy things online directly from the company without involving any intermediaries.

Services of Samsung

I-Customer Service Centers

The top priority of Samsung is to develop high-quality customer service. In order to provide after-sale, repair, and maintenance services; Samsung has established customer care centers in different countries across the world. They fix customers’ problems relevant to the company’s product or service and increase the customer satisfaction level. Along with physical customer care centers, Samsung also provides online and on-call customer support.

Supporting Activities of Samsung 

Some of the key elements and components involved in the supporting activities of Samsung value chain analysis process are as follows;

Infrastructure of Samsung

Samsung has developed a solid infrastructure and it helps the company to manage its global operations. The clear hierarchical structure of the company ensures effective decision-making and communication across different levels. However, the company’s infrastructure comprises of following elements;

  • Financial operations
  • Legal framework
  • Quality control
  • Governance

HRM of Samsung

Samsung has employed over 266000 employees to manage its global operations. The human resource management department of the company plays a key role and it performs the following functions;

  • Talent acquisition
  • Retention strategies
  • Professional growth
  • Diversity and innovation
  • Training and development programs
  • Employees welfare
  • Maintain work-life balance

Technological Development of Samsung

Samsung invested roundabout 25 billion USD in 2022 in research and development. It is the world’s 4th largest spending in R&D by any company. The company is heavily investing in the latest technology and they’re as follows;

  • Technological reinforcement
  • 5G products and processes
  • IoT
  • Artificial intelligence

Procurement of Samsung

The procuring policy of Samsung is clear and focuses on sustainability, openness, and transparency. The tech company collaborates with various suppliers and partners to ensure high-quality products and services. The procuring policy of Samsung comprises of following elements;

  • Developing a strong relationship with suppliers
  • Efficiency of processes
  • Open communication

Conclusion: Samsung Value Chain Analysis Company Example |Application of Value Chain Analysis Process 

After an in-depth study of the value chain analysis of Samsung; we have realized that Samsung is the world’s leading technology South Korean brand. If you are learning about the Samsung value chain analysis company example; then you should keep in mind the primary and supportive activities and process of value chain analysis; inbound and outbound logistics, operations, marketing, customer service; procurement, infrastructure, HRM, and technology.

References 

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