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Samsung in Thailand The Wireless Expansion Roadmap Samsung Electronics Overview Thailand Country Overview Wireless Phone Market in Thailand Company Valuation NPV Valuation Conclusion Q A Samsung Overview Subsidiary of Samsung Group Products: Home Electronics, semiconductors, telecom Competitive Position I Competitive Position II Reforms with Samsung Just-In-Time Inventory System Saved overhead costs of $270mn. Reduced debt by 11 trillion Won Reforms with Samsung Just-In-Time Inventory System Saved overhead costs of $270mn. Reduced debt by 11 trillion Won Reforms with Samsung Just-In-Time Inventory System Saved overhead costs of $270mn. Reduced debt by 11 trillion Won Strategic Expansion Plan Thailand: Increase mobile phone market share from 12% to 15% Invest: 500 million Bhat--Marketing Invest: 1 billion Bhat—Manufacturing Southeast Asia Simultaneous market expansions Thailand overview Thailand’s history Founded in 1238 Unified in 1350 Only SE Asian country not colonized Official religion is Buddhism (95%) Absolute Monarchy until 1932 Thailand currently Constitutional Monarchy (1932-) King Phumiphon in power since 1946 Prime Minister Thaksin since 2001 Thailand more recently 62 million people 13% below poverty line Agricultural until 1980s Industry in 1980s included tourism, textiles, clothes, and steel Manufacturing now accounts for 80% of GDP, and includes electronics, electronics components, and automobiles Economic Development Late 1950s (Import Substitution) Late 1960s (Export Promotion) Devaluations of 1981 and 1984 1985-1995; 9% average annual growth 1996; growth slowed with more cheap labor 1997; (July) Fixed rate abandoned; Thailand enters recession 1999-2000; recovery due to strong exports Exchange Rate Thailand’s Mobile Phone Market 28% Penetration Rate Thailand’s Mobile Phone Market Industry Overview-Service: 28% Penetration Rate Total user base: 15million Highly regulated-TOT and CAT Dominated by local service providers (AIS, DTAC) Thailand