ES2-E Christopher Boyle Raffaele Coccuci Thierry Fornas Mi Sun Park SAMSUNG IN FRANCE Best in France...

ES2-E

Christopher Boyle Raffaele CoccuciThierry FornasMi Sun Park

SAMSUNG IN FRANCESAMSUNG IN FRANCESAMSUNG IN FRANCESAMSUNG IN FRANCE

Best in France case study

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OVERVIEW

SAMSUNG in FRANCE, EUROPE I

SAMSUNG Mobile Business in FRANCEII

Constraints & Benefits in FranceIII

Adaptation to FranceIV

Essential AdviceV

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SAMSUNG in FRANCE, EUROPE

First entered the French Market as SAMSUNG Electronics France in 1988

Initially introduced home appliance products - Niche market: cheap yet of reasonable quality

Transferred to high technology products - Second largest semi-conductor producer

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SAMSUNG Mobile Business in FRANCE -1

Entered the French Mobile Market in 1999 - As a gateway to the Continental European Market

Initial obstacle to market - Stereotyped as home appliances company

Partnership with France Telecom

Initial goal to change mindset - By conveying its overall image as a mobile phone

provider, a dynamic enterprise and an innovator

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Great success of “Samsung 600” - Gained market confidence on quality and model

0.7M units sold for the first year (1999) - France telecom made more profit thru partnership

In 2000, received orders amounting to $200M from France Telecom

- Sold 0.5M units

- Proved that a reliable product = a great-selling product

SAMSUNG Mobile Business in FRANCE -2

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SAMSUNG Mobile Business in FRANCE -3

SAMSUNG = MOBILE- Introduced new models, in each of the proceeding

years, with great success - Brand image as a qualified model- Maintained a partnership with France Telecom

Turning point for SAMSUNG as a whole- Much more influence with other product lines- 30% sales increase for white products - Image of innovative technology and high-end

products

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Benefits in FRANCE

Labor market is efficient and qualified, one of the best in European market

Workforce ranks high in efficiency

Abundant supply of high quality workforce.

Outstanding performance due to French education policies

Tax credit policy of up to 30% for high-end technology companies

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Constraints in FRANCE

Language barrier

Working mentality - Business urgency and working overtime

Adaptation to French culture was difficult at the start

- Shorter work week, more vacation time

Network infrastructure is not well-prepared- 2.5G (current) vs. 3G (required)

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Adaptation to FRANCE

Adapted corporate culture - Rented the “Hall of Mirrors” at the Chateau de

Versailles for a VIP conference

Adapted French workforce - Hard-working and efficient during the working day

French market understands Samsung as a French company

- 99% total turnover

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Essential Advice

Increase market penetration by maintaining high quality and product designs

Expand global presence to include the rest of Europe

Strengthen competitiveness by adding customer-oriented value to products

Enhance corporate image by global campaigns and commercials

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WE THANK

SAMSUNG ELECTRONICS FRANCE56,Quai de Dion Bouton 92806 PUTEAUX Cedex

Yong Sung Chun, Executive Sales Managerchunys@samsung.com tel: 01 55 68 4023

Namionne Kim, Supply Chain Managernamionne.kim@samsung.com tel: 01 55 68 4053

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References

www.samsung.com www.samsung.fr www.sec.co.kr www.seri.org