Samsung Electronics Company Turnaround Strategy

Samsung Electronics Company (SEC) climbed its way to being a market leader through successful marketing strategies, extensive market research and development, and effective pricing strategies. SEC began as a low-cost manufacturer of television and broadened its business to mobile devices, tablets, and other electronics eventually. Samsung became a large supplier of televisions, microwaves, and VCRs—before transitioning over to the electronic market. Samsun struggled for many years to effectively position themselves in the market because they had many brand image issues and ineffective marketing efforts. Samsung was focused on manufacturing efforts and keeping cost low, until Samsun invested money into their research and development and marketing.

SECs started changing their image in 1993, by moving from a high volume, low quality company to high quality company. Samsung started putting more research and development into their products and positioning themselves in the market more effectively. SECs also moved into the digital technology market because of the demand for innovation, using their research and development and increased efforts to creating high quality products helped Samsung be successful in this market and produce their innovative products. SECs invested more funds into creating these innovative products and increased their marketing efforts to change their strategy as a whole. Samsung had to create a powerful and enhanced marketing team to transform their strategy and more effective compete. One of the focuses on this turnaround strategy was enhancing their global brand, focusing on long-term outcomes, and allocating money differently. SEC started building a trustworthy brand that customers could trust through a long process of research, growth, and

Kim redefined marketing at Samsung through consistency, branding, and effective direction. Kim started his marketing effort enhancement by educating the company on marketing, unifying marketing efforts, and standardizing SECs brand. Kim eventually transformed the company by focusing on the direction he wanted to take the company. Kim built his credibility by leading by example, he show the organization evidence why his efforts were working utilizing statistics and data. He started with small projects to show why and how his efforts would work and eventually gain the credibility of others to transform Samsung’s brand. Kim showed proper management of marketing resources by allocating money differently, changing priorities, and consolidating the SEC brand. Kim changed the companies marketing spending habits by budgeting for marketing efforts and using fewer companies to advertise. Samsung began using two companies to do their advertising, to gain a stronger brand with those companies instead of having small amounts with too many companies, this consolidated the brand. Lastly, Kim introduced programs to make Samsung’s marketing efforts more efficient utilizing software. All of these efforts have helped Samsung grown into having the brand they do