“One plus one” is more than two.

Samsung, LG consider TV panel partnership

“One plus one” is more than two.

Summary

Samsung Electronics Co. and LG electronics controlled 38% of the global market in 2007, with exports topping $35.3 billion. They are Korean top electronics makers and bitter rivals in global market. They are positively considering a deal, that is that they buy each other’s products. The Ministry of knowledge Economy expects that this first deal is starting of collaboration. He thinks the compitition among Taiwan, Japan, Korea and some other countries in the region are getting fierce. Therefore Seoul has an opinion that the Korean display companies need to share their resource each other. Nowadays, Korean government will roll out programs to make Korea into a display powerhouse, with at least 45 percent of the global market share in 2017, and earlier in the week, Samsung and LG announced that they will jointly develop a mobile television technology aimed at the North American market.

Opinion

Samsung and LG are well known display companies in the world. This deal is big effect in the world. I think Sony may carefully watch this deal. It has a big meaning in the world market. Nowadays, the world is getting closer, and FTA supports this movement. It may be a new strategy for surviving in changing global market.
This deal has an effect not only world market but also national market. They are the most important companis in Korea. Korean GDP and exchange surplus of Korea are hanging on these two companies. Almost Korean has an interest in this deal, and following the result, Korean stock market will change. Samsung has a 10% effection in Korean stock market.
I expect a positive effective. Generally, as this deal contributes for each company’s benefits. These two companies have a more market power about price. They will develop better technology using cooperation. Especially, common resources will help reducing cost.
Surely, the benefits are good for making a company better than before, however I think it’s not enough. They will develop more things using this chance. They input a lot of resource and money marketing. However, it is not proper. Following the professor Lee, Korean company already has a good ability producing the best quality goods. On the other side, they are not good at creating brand value and new idea.
Last class, we learn about defference between developed nations’ industry and others. Developed nation’s industry is not just making products. They make an intangible value. Samsung and LG need to focus on this type of business. It is not just making products fixed resource, but creating an intangible value. I expect that they will be upgraded through this chance.

References;Author: By Lee Sun-young Title: Samsung, LG consider TV panel partnership The Korea Herald. May 16, 2008

20300174 Nah Kilwoong entry - 10

SK Telecom makes foray into Chinese gami.

Summary>
SK Telecom, the nation’s top mobile carrier, has entered the fast-growing online gaming market in China in a bid to generate new income sources by expanding its business overseas. The company agreed to invest in Magicgrids Networks, a China-based company specializing in developing and publishing online games.
Also, SK Telecom has been acquiring a leading music label and a telematics company. The Chinese music industry, estimated to be worth 2 trillion won as of 2007, is expected to surge to 3.5 trillion won by 2010, powered by the growth of the digital music industry. The telematics industry is experiencing fast growth due to a Chinese government policy that mandates GPS devices in every public and special-purpose vehicle.

Opinion>
If SKTelecom combines their successful services with understanding and experiences about Chinese market, of Magicgrids, the company will succeed. But, SKTelecom failed in foreign online service market. ‘Cyworld’ failed in Europe market because they didn’t know their culture. And europians gradually got tired of Social Network Service(SNS). The time of stay per each user of ‘My space’, the largest SNS company in US, decreased up to 14% for last 4 months. Visitor also decreased from 72million in September, to 69.8million in November.
SKTelocom should study Chinese culture and their language to succeed in Chinese market.

References;
Author: By Jin Hyun-joo
Title: SK Telecom makes foray into Chinese gami. The Korea Herald. May 16, 2008

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20600613 8th entry

Foreign Adviser Urges Lee to Foster National Brand

Foreign Adviser Urges Lee to Foster National Brand
Summary
A prominent economist advised the Korean government to improve its national brand as part of efforts to increase its economic growth. Korea needs to foster national and cultural brands to boost its economic competitiveness globally. Korea lacks a competitive drive in global market, so Korea needs to increase flexibility in the labor market and should adopt higher learning system.

Opinion
I think if Korea wants to get the important position in the competitive world, Korean marketers should make Korean cultural source be global. Koreans tend to do act like western style, this means that we have the wrong concept that western culture is much more than Korean culture. For example, Korean 10s and 20s want to be fashion star like Hollywood star based on Western fashion style. Many Koreans Korean style is past pattern so that Korean cultural brands do not have identity in the world. To improve our national brand, we should have conviction, ‘Korean style is World style’. However, if we persist Korean style unchanged to plant our culture brand into people, we will be failed to target. We should change our cultural sources for foreigners to feel sympathy. For instance, Nanta is from the Korean traditional percussion quartet, but many people in the world can feel Nanta’s bits, rhythm, and Korean’s emotion. We have to focus on the sights of consumers, consumers’ needs and then we must adapt our cultural elements into demands. Trough these processing, Korea can get the positions in the world and we can improve our national brand.
References;Author: Park Hyong-ki Title: Foreign Advise Urges Lee to Foster National BrandKoreatimes. May 14, 2008
http://www.koreatimes.co.kr/www/news/nation/2008/5/123_24195.html
20600517 Lee, yong jae #entry-10

High technology company's global marketing strategy

Summary>

Samsung LCD TV ranks top in North America. It is a result of first quarter in 2008. Samsung wins in price competition. This top-rank returning is first time from frist quarter of last year. However it is not a convinced, because the market share between 1st and 2nd has slice gap. LCD market has big three companies. They are Samsung, Sony, and Vizio, and their market share is at 12.8 percent, Sony 12.6 percent and 12.5 percent each. After them, LG and Sharp is following. They are in price war. Samsung expects strong sales of its Touch of Color TV series. The firm has a plan to sell 180 units in its LCD TVs and 30 million units of PDP sets globally.

My opinion>

Last class, I learn about global marketing. Samsung wants to global standard using price cutting. Samsung has a price power in the LCD TV market. Therefore the firm makes new model quickly. Because, the firm make new model, they would lower the old model’s price. It is Samsung’s key marketing strategy. Summarizing it, the new technology for early adopters is sold high price and the old one for laggard is sold low price.
We learn much thing about localizaion. I think it is very important for global market. However I think few exceptions are existed. Representative one is high technology products. The high technology products’ key factor is improving technology. Nevertheless, if technology level is similar, avoiding price war is impossible. Accordingly, cost and administration fee are important.
Many high technology manufacturing companies build factory in large market or cheap labor place. This kind of effort can reduce their cost. Surely, it is not enough. Many factors like exchange rate, R&D efficiency, and turnover ratio, etc are important, too.
In a conclusion, Samsung is in a severe war. They consider many factors to keep their market share. This competition’s result will set a standard of LCD TV market. Samsung is third rank when 2003 in global market. They have grown rapidly, and nowadays almost reach the first place. I don’t know the future, but this invisible war will finish. I expect, at that time, Samsung electronics win this war.

References;Author: Lee Sun-young, Title: Samsung LCD TV ranks top in North America: poll Korea Herald(http://www.koreaherald.co.kr). May 9, 2008

20300174 Nah Kil-woong entry-9