Market cap

* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.

Performance of the brand

The Samsung Group is a South Korean multinational conglomerate or ‘chaebol’ with numerous international affiliated businesses specialising in everything from TV’s to cars to insurance. Samsung Electronics is the most well known of these as the world’s largest tech company by sales, overtaking HP in 2009. However, the size of its lesser known divisions may surprise, Samsung Heavy Industries is the world’s second largest shipbuilder and Samsung Everland - Korea’s first theme park - is now the fifth most visited in the world. Samsung Life Insurance is also particularly well respected in its field.

Founded in 1938, Samsung now has more than 275,000 employees and accounts for about a fifth of South Korea’s total exports. With revenue larger than Argentina, Samsung is truly a Korean juggernaut.

Samsung have created a strong brand based around innovation and quality. Having successfully taken on Japanese technology giants in the TV market they are now looking to break Apple’s smart phone and tablet PC dominance.

This looks to be a difficult task, with the technology to challenge there are question marks over whether it has the brand strength to take Apple’s top spot. Particularly with current litigation between the two tech titans delaying the launch of Samsung’s Galaxy S tab in Europe.

One way Samsung is looking to make up ground on its competitors is with its London Olympics 2012 sponsorship. After hiring David Beckham as their Brand Ambassador for the games Samsung are expecting double digit brand awareness gains in the UK.

Samsung Second to Apple’s Animosity

The two giants of the smart phone and tablet PC industry continue to clash heads with a spate of court cases over copyright infringement being launched by both sides. With both keen to battle in court it seems there will be no quick solution – bringing negative publicity to both brands.

Apple seems to be winning the technology war, with its iPad and iPhone clearly the market leader. Despite this, Samsung’s Galaxy Tab has been released to generally positive reviews some heralding the 7-inch gadget as the best Android tab on the market. However, it will need some extremely convincing marketing to break Apple’s stronghold. In particular they will need to focus on undoing the damage to its launch after initially being banned from sale in the EU until the Apple-Samsung patent infringement court case was over.

Meanwhile, Samsung is also facing stiff competition from below, the Taiwanese HTC and Chinese RIM’s cheap labour and high technology are looking to steal Samsung’s second spot in the smart phone market.

Green growth plants Samsung ahead of its competitors

As of April 2010 all mobiles and MP3 players produced by Samsung will be free of PVC and BFR’s. Growing a ‘green’ image is becoming an increasingly important part of any company’s brand and Samsung look to be ahead of its major competitors, listed 5^th on Greenpeace’s Guide to Greener Electronics.

David Beckham made Samsung Brand Ambassador for London 2012

Samsung are a World Wide partner of the London 2012 Olympic Games.  In a smart move they have signed football star and brand machine David Beckham to be there Brand Ambassador and look to make major brand awareness gains in the UK. Vice President Gyehyun Kwon believes, ‘double digit gains in the UK's consumer awareness are possible.’

Japanese competitors stumbling as Samsung make strides

Samsung’s Japanese competitors are finding life difficult after the unfortunate events of the March Tsunami. However these Japanese firms were already suffering from a strengthening Yen and aging population with, for example, Samsung rivals Sony reporting net losses. The traditional brand position of Japanese technology companies as high quality is no longer their unique domain. Other Asian powerhouses, in particular Samsung, have been able to encroach on this traditionally Japanese territory and make large gains in market share. Over the last five years Samsung has sold more TV’s than any other brand – a stark contrast to competitors Hitachi, who are rumoured to be closing down its TV production.

With Japan’s latest stumble, it is expected that Samsung will further capitalise on its recent gains.

 

 

Last changed September 30, 2011

League tables

Samsung appears in the following brand league tables:

Rank 18 in the Global 500 2011.
Rank 23 in the Global 500 2010.
Rank 28 in the Global 500 2009.
Rank 43 in the Global 500 2008.
Rank 30 in the Global 250 2007.