Samsung vs Philips 1 september.pptVIP

June 2004 CAPGEMINI_PPT_REPORT.POT June 2004 ? 2004 Capgemini - All rights reserved Appendix Contact: xxx Samsung vs. Philips: A Value Chain Analysis Contact: xxx Samsung’s added value in its chain lies in RD, Marketing Sales… Samsung’s core competence is the integration of its RD, Marketing, Sales and Retailer Contact General for Samsung General Main reasons for Samsung’s success? Importance of China for Samsung: China is core market for Samsung. “China is at the top of the priority list” How much did Samsung invest in China? 2.8 billion US dollars between 1992 en 2003 (What does this investment consist of?) Revenue Samsung Electronics China: over 6.4 billion US dollar General for Philips General Main difference between Philips and Samsung? Samsung is more successful in China, mainly because of better marketing and more consistent branding Importance of China for Philips: Philips is not very explicit How much did Philips invest in China? ($3.4 billion) Revenue Philips CE China: Philips employs 19,000 staff members in China nationwide Samsung has excellent contacts with manufacturers and is able to produce its products quickly Organization of production: both in-house and outsourced. Most factories are JV’s with Chinese companies Use of ODM’s: Competitive advantages in manufacturing: Link manufacturing and fast time to market: Logistics and distribution in China: Samsung designs and innovates more successful than Philips Samsung applies existing technologies instead of break through new technologies Ratio between in-house and outsourced RD: Samsung is truly market driven. Information transfer between RD and marketing: via CRM system? RD spend of Samsung Electronics: 2003: $2.9billion (8% of revenues) Described as “Relentless spending on RD” Percentage of RD budget devoted to CE: Samsung is innovative in both CE products and mobile phones: mainly innovative reuse and combinations of existing technology (internet fridge, etc) Superiority of Samsung’s