Samsung India is the Hub for Samsung

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Samsung Telecommunications is one of five business units within Samsung Electronics, belonging to the Samsung Group, and consists of the Mobile Communications Division, Telecommunication Systems Division, Computer Division, MP3 Business Team, Mobile Solution Centre and Telecommunication R&D Centre. Telecommunication Business produces a full spectrum of products from mobiles and other mobile devices such as MP3 players and laptopcomputers to telecommunication network infrastructure. Headquarters
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  Samsung Telecommunications is one of five business units within Samsung   Electronics,belonging to the Samsung Group,and consists of the Mobile   Communications Division, Telecommunication Systems Division, Computer Division,MP3 Business Team, Mobile Solution Centre and Telecommunication R&D Centre.Telecommunication Business produces a full spectrum of products from mobiles and other mobile devices such as MP3 players and laptopcomputers to   telecommunication network infrastructure. Headquarters is located in Suwon, South Korea. In 2007 Samsung Telecommunication Business reported over 40% growth andbecame the second largest mobile device manufacturer in the world. [1]  Its market   share was 14% in Q4 2007, growing up form 11.3% in Q4 2006. [2]  In Q1 2008   Samsung strengthened its second position on the market and achieved 15.6% worldhandset market share. Samsung India is the hub for Samsung's South West Asia Regional operations. The South West   Asia Headquarters, under the leadership of Mr. J S Shin, President & CEO, looks after theSamsung business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan besides India.Samsung India which commenced its operations in India in December 1995 enjoys a sales   turnover of over US$ 1Bn in just a decade of operations in the country.Headquartered in New Delhi, Samsung India has widespread network of sales offices all over thecountry . The Samsung manufacturing complex housing manufacturing facilities for ColourTelevisions, Mobile phones, Refrigerators and Washing Machines is located at Noida, near Delhi.   Samsung 'Made in India' products like Colour Televisions, Mobile phones and Refrigerators arebeing exported to Middle East, CIS and SAARC countries from its Noida manufacturing complex.   In November 2007, Samsung commenced the manufacture of Colour televisions and LCDtelevisions at its state  – of-the-art manufacturing facility at Sriperumbudur, Tamil Nadu. TheCompany is also manufacturing fully automatic front loading washing machines at its   Sriperumbudur facility. Growing to be the best  Samsung India aims to be the 'Best Company' in India. 'Best Company' in terms of the internalworkplace environment, our manpower, our products as well as our efforts to make ourcustomers happy through our products and services. Samsung aims to grow in India bycontributing to the Indian economy and making the lives of our consumers simpler, easier andricher through our superior quality products. Our aim is to gain technological leadership in the Indianmarketplace even as our goal is to earn the love and respect of   more and more of our Indian consumers.   The world is still reeling under the biggest financial crisis since the GreatDepression, but it seems that someone forgot to tell LG and Samsung.Sales of the two South Korea-based conglomerates were 35% to 50%higher in India in September and October 2008, compared to the sameperiod last year. And both are confident of meeting their targets by thisyear's end, which include revenue growth of around 30%.Granted, the September-October sales figures may be higher this year forspecific reasons. About 3.5 million government employees received thefirst installments of their delayed salary raises around that time, resultingin a sudden surge in disposable income. And the festive season in Indiatypically sees a spike in sales of all products, especially consumerelectronics and household appliances.What is not so easily dismissed, however, is the level of success LG andSamsung have achieved in India. In just over 10 years, the Korean duohas established dominance over the Indian white goods market, edgingout traditional multinational companies and Indian competitors. Betweenthem, they account for the largest share of the $6 billion consumerdurables, electronics and appliances market, with LG claiming thepreferred brand position for virtually everything from televisions to   microwave ovens and washing machines, while Samsung is a steadynumber-two or number-three player. Over the past decade, both haveconsistently seen double-digit growth rates and are convinced they will   maintain, if not surpass, those levels in coming years as well -- anoptimism that is shared by industry watchers. How did these two chaebols-- a South Korean term for family-owned conglomerates with governmentties -- entrench themselves in India?LG and Samsung's success is a function not just of what these twocompanies did, but also of what their competitors didn't do. The super-premium price and positioning of technologically superior Japanesebrands like Sony and Panasonic made them inaccessible to most of theIndian market. On the other hand, lower-priced Indian brands offered old-generation products; they did not invest sufficiently in R&D because theywere not able to launch new products quickly enough to amortize thosecosts. The other players in the consumer electronics space consider India amarket for transactions, which is a short-term, unsustainable strategy, says Abraham Koshy, professor of marketing at the Indian Institute of    Management, Ahmedabad. On the other hand, LG and Samsung believethis is a market in which to do [long-term] business. Both have made afull commitment to India. Adds Pankaj Gupta, practice head (consumer and retail) at consultancy   firm Tata Strategic Management Group (TSMG): In any customer-facing  business, your product, brand and distribution decide your success.Moreover, in the durables industry, after-sales service and productinnovation are also key factors. These two companies leveraged theirglobal R&D facilities to speedily bring in new products and offered morevariety at attractive prices. LG followed this approach better thanSamsung, which is why it is bigger than Samsung in India. In for the Long Haul  LG may be the leading electronics brand now, but its initial attempts tocrack the Indian market were disappointments. In the late 1980s andearly 1990s, when government regulations prohibited foreign companiesfrom starting independent ventures, Lucky Goldstar (as the company wasthen known) twice entered the Indian market with local partners; bothventures failed. In 1997, LG finally got permission to set up its ownmanufacturing facilities. The company has come a long way since:Revenues in 1997 were US$33.97 million; last year, LG India earnedUS$2.37 billion. Samsung India has maintained a steady growth since itlaunched in India in 1995-96, with 2007 revenues reaching US$1.3 billion.Early on, the two companies had very different approaches in India. LG'sentry strategy was to establish its presence across the country, offering arange of affordable but feature-rich products. Margins in the consumerelectronics industry are traditionally very low, and the company didn't tryto push them up. Instead, it clung to the value-plus platform, countingon volume to bring in revenues.Samsung, on the other hand, focused on creating a premium brand imageby emphasizing the design and technology aspects of its higher-pricedproducts and building a more affluent customer base. Customers wouldbuy an LG [product] for their bedrooms but pick a Sony or Samsung fortheir living rooms, says Gupta.Over the past couple of years, though, there has been a reversal of roles.Now, Samsung is reaching out to the price-sensitive masses, offeringaffordable, customized products. Samsung India deputy managingdirector Ravinder Zutshi explains the new strategy: We want marketleadership not only in the premium end, but also in the large-volumecategories. LG, meanwhile, is seeking to upgrade its image and productportfolio, thus moving from being a functional to an aspirational brand. All our efforts are directed towards offering aspirational products thatnew-age customers can be proud of, says Moon B. Shin, managingdirector, LG Electronics India Ltd.When Samsung and LG's existing approaches to the market wereobviously successful, why are they changing them now? Your initial routeis based on your company's heritage. But whether you choose a product-  led or brand-led strategy, you have to complete the circle, says IIMA'sKoshy. Adds TSMG's Gupta, When you want to expand the market, it iseasier to reach out to a segment where you don't have a presence than toeke out more value from an existing category. Product Innovation Is Key  Regardless of which segment of the population they target, the key to LGand Samsung's success lies in their product innovation. While the basicdesign of the products srcinates in South Korea, both companies haveinvested heavily in local R&D to tweak product design to suit local tastes.This year, Samsung spent US$13 million to set up a 75-member hardwareR&D center at Noida (Uttar Pradesh), while LG has budgeted US$50million for R&D and manpower in the coming 12 months. When LG andSamsung entered the Indian market, domestic companies were investingin advertising and marketing, rather than product development. TheKoreans' promise of cutting-edge technology and their hunger for R&Dworked to their advantage, says Harish Bijoor, visiting professor of strategic management at Hyderabad's Indian School of Business (ISB)and founder of Harish Bijoor Consults.Executives at the two companies agree. According to LG's Shin, Onereason LG is successful in India is that we listen carefully to ourcustomers. We have realized that not just localization, but micro-localization, is required. Recently, LG conducted a nationwide lifestylestudy to know more about our consumers and their preferences, Shinsays. Products are designed based on those findings. He offers anexample. In many Indian households, the washing machine is operatedby domestic helpers who can't read instructions in English. LG's solutionwas to add speech technology that gives instructions in local languages. Innovations like this help us connect with our customers and offerproducts that fit into their lifestyles, Shin notes.Customization of this kind has been part of LG's India strategy for sometime now. It developed Ballad, a flat-screen television with 2,000-wattspeakers sold only in the subcontinent, following research that said   Indians in the southwestern part of the country preferred loud, basssounds. The company's refrigerators have smaller freezers and largevegetable compartments than models sold in other countries, based onthe fact that many Indians are vegetarians and use the freezer mainly formaking ice.While the pace may only just be picking up at Samsung, product   localization is nothing new for that company, either: In 2002, thecompany introduced a sari cycle in its washing machines, designed toprevent the traditional six-yard garment from getting tangled with other   clothes. The focus of the current round of innovation, though, is on
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