Best in France case study SAMSUNG IN FRANCE ES2-E Christopher Boyle Raffaele Coccuci Thierry Fornas Mi Sun Park Best in France Case study OVERVIEW I SAMSUNG in FRANCE, EUROPE II SAMSUNG Mobile Business in FRANCE III Constraints & Benefits in France IV Adaptation to France V Essential Advice 1 Best in France Case study 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 2 Best in France Case study 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 3 Best in France Case study SAMSUNG Mobile Business in FRANCE -2 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 4 Best in France Case study 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 - 5 Best in France Case study 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 6 Best in France Case study 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) 7 Best in France Case study 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 8 Best in France Case study 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 9 Best in France Case study WE THANK SAMSUNG ELECTRONICS FRANCE 56,Quai de Dion Bouton 92806 PUTEAUX Cedex Yong Sung Chun, Executive Sales Manager chunys@samsung.com tel: 01 55 68 4023 Namionne Kim, Supply Chain Manager namionne.kim@samsung.com tel: 01 55 68 4053 10 Best in France Case study References www.samsung.com www.samsung.fr www.sec.co.kr www.seri.org 11