IIPM PUBLICATION
Samsung has an uphill route towards market leadership
Samsung
India is now pulling all stops to ensure further localisation of its products in India. Recently, on November 13, the company announced an investment of up to $100 million over the next five years for a factory in Chennai to cater to its domestic and export markets.
There is no denying that the Korean carnival continues in the durables segment, but when it comes to a head on with LG, Samsung remains – sorely beaten! You could well call it the ultimate Digital Divide. A comparison of market shares (across CTVs, microwaves, refrigerators & DVD players) reveals the most resounding triumph for LG, while Samsung continues to play the fiddle, that too, second fiddle! Why does this divide exist? Both Samsung and LG started off in India with the same vision of localization of manufacturing. Samsung paid the price of being too conservative and sticking to urban markets. LG has played the gamble of developing and marketing products for all customer segments, especially catering to rural India. Manufacturing expansions irrespective, Samsung has to improve its product penetration, or it will be left saying ‘Oh dear!’, as it watches LG whizzing past!
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
Initiative :- An IIPM and Management Guru Professor Arindam Chaudhuri (Dean of IIPM)
Samsung has an uphill route towards market leadership
Samsung
India is now pulling all stops to ensure further localisation of its products in India. Recently, on November 13, the company announced an investment of up to $100 million over the next five years for a factory in Chennai to cater to its domestic and export markets.There is no denying that the Korean carnival continues in the durables segment, but when it comes to a head on with LG, Samsung remains – sorely beaten! You could well call it the ultimate Digital Divide. A comparison of market shares (across CTVs, microwaves, refrigerators & DVD players) reveals the most resounding triumph for LG, while Samsung continues to play the fiddle, that too, second fiddle! Why does this divide exist? Both Samsung and LG started off in India with the same vision of localization of manufacturing. Samsung paid the price of being too conservative and sticking to urban markets. LG has played the gamble of developing and marketing products for all customer segments, especially catering to rural India. Manufacturing expansions irrespective, Samsung has to improve its product penetration, or it will be left saying ‘Oh dear!’, as it watches LG whizzing past!
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
Initiative :- An IIPM and Management Guru Professor Arindam Chaudhuri (Dean of IIPM)
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