Samsung Mobile Display

Kang Ho Moon CEO of Samsung Mobile Display had called for a meeting to discuss the marketing strategy of SMD for gaining competitive market share in the global marketplace in March 2009.

It was strongly argued in the meeting that the company should give priority to manufacturing of Thin Film Transistor Liquid Crystal Display (TFT-LCD), this technology was used to improve image quality of various screening and monitoring equipments (television sets, computer monitors, mobile phones, video game systems and personal and navigation systems). The world market for TFT-LCD panels is projected to reach 4.6 billion units by the year 2015 (primarily driven by emerging trends in producing more energy-efficient, environmental-friendly, and superior quality panels). During 2005 and 2009, the TFT-LCD market had grown by a compound annual growth rate of 21%, from $45 billion in 2005 to $118 billion in 2009. Nonetheless, a big problem in contemporary retailing was identical products that increased the scope of switching among consumers so retailers were looking for distinct brands and products that provided good margins and fair prices for the consumer.

Issues:

1. Retailing preferences for distinct brands and products that provided good margins and fair prices for the consumer: Retail sales have changed their preferences. They have realized that competition and the products begin to look-a-like, so now they prefer to offer fair prices for the consumers so they can achieve good margins.

2. Lack of understanding of the business by the managers. Through the Reading of the case, we could realize that both managers and CEO, had troubles to understanding the business and each one had a different opinion about SMD.

Solution:

They need to create a new business model which identifies the strenghts, oportunities, weaknesses and threats and indicate precisely the value proposition, so they can have a better understanding of the business in all areas of the company.

“A good business model remained essential to every successful organization”

“The main reason for which most companies fail at new business creation was that they had shy away from making moves which did not immediately made sense.”

Although they defined the points for the new business plan, is necesary to create a framework and separate the 4 pillars of a business plan:

• Customers:

o Segmentation.- High- and low end segments. The TFT-LCD products were segmented for mass markets and multi-sided platforms that included organizational clients.

• Mass segment

• Premium segment

• Niche segment

o Distribution channels.- Company outlets, authorized dealers, retailers, B-to-B clients, automation integrated services.

o Customer relationship.- the company would offer a framework

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