Samsung Mission Statement | Vision | Values | Strategy (2024 Analysis)

Company: Samsung Electronics Co. Ltd.
Founder(s): Lee Byung-Chul
Year founded: March 1, 1938
CEO: Kim Ki Nam (Mar 2018–)
Headquarter: Seoul, South Korea
Number of Employees (Dec 2021): 267,937
Type: Public
Ticker Symbol: KSE
Annual Revenue (FY 2021): KRW 279 trillion
Profit/Net income (FY 2021): KRW 39.24 trillion

Products & Services: Apparel | automotive | chemicals | consumer electronics | electronic components | medical equipment | semiconductors | solid state drives | DRAM | ships | telecommunications equipment | home appliances
Competitors: Apple | Intel | Altera | Xilinx | Atmel | Panasonic | Microsoft | Sony | HTC | Google

Did you know – “Burj Khalifa,” the tallest building in the world, is constructed by the Samsung Constructions?

For a company with an estimated market cap of 471 KRW trillion, it sure had humble beginnings. Samsung Company started its journey from a little fish grocery store in South Korea. It was the Vision and Mission of its founding fathers that took the company from a small shop to now a Giant group of businesses that controls how the economy of the world works.

Samsung’s Vision Statement

The company states that its vision statement is to

Reading their vision reminds me of the statement Neil Armstrong made while he took his first step “This is one small step for man, but one giant leap for mankind.”

People who have changed the history of humankind have from day one lead with the notion so huge and determination so blinding that success was a given. Such is the case with the Samsung group of industries. Their vision states what they would one day want to be known for.

Samsung’s Mission Statement

When it comes to Samsung’s mission statement, it can be divided into three sub-points

• Use of innovative technology to inspire young minds
• Making a product that adds value and enriches the life of the ordinary person
• Contributing in one way or the other in creating a prosperous future for society as a whole

When an ordinary person decides to work for a company or invest (buy shares) in a company he ends up asking himself one of the below-stated questions:

• Do I share the same goals as that of the company?
• Will I be benefited in the short as well as long term?
• Will my investment end up helping the society?

The mission statement and the market strategies provided in the portfolio of the investor’s summary answers all these questions in the positives. This shows that the board of directors of The Samsung Group are very in tune with the business niche of the day to day requirements of a common man.

Samsung’s Values

The five core values that Samsung believes in and instills in every one of its employees are:

These five core values pretty much define the culture that the company is trying to promote. It believes in all rising together rather than turning everything into a one-man show. Great emphasis is given upon TEAM WORK, and it is a required skillset if one wants to succeed at the company.

Moreover, quality is never compromised at the company and be that the quality of character or quality of the product. The integrity of character of people working and par excellence of the product being delivered go hand in hand at the Company.

Samsung firmly believes that the company culture is the determinant of its success in the market at the global stage and the company takes all measure necessary to ensure that its culture within the company is that of par excellence.

Samsung’s Strategy

At Samsung headquarters, great importance is given in developing and executing an excellent sales strategy. They firmly believe that the product is as good as its sale numbers. Below we have explained the sales strategy employed by the Company.

Sales Strategy

• Expanding market share by providing premium products
• Building and strengthen market activities from ground level to maximize customer demand
• Provide customers with product and services that aren’t available elsewhere in the market and add value to the life of the customer

It is evident that the Samsung Company believes in planning and executing its sales strategy by predicting customer behavior, establishing strong customer loyalty, and providing them with a product that is their money’s worth.

When it comes to the Business Strategy employed by Samsung, it should be noted that it used the very competitive differences that could have taken its market share and turned them into its competitive advantages. As new tech giants and companies came onto the global field, Samsung Board of Directors (B.O.D) asked themselves

“What will keep us relevant in the game?”

And they all reached the same conclusion Investment in Research and Development. The below-attached chart shows the difference in investment in Research and Development between Samsung and its competitors

Research & Development

Due to huge investment in the R&D sector, Samsung Group can come up with new innovative products with better quality at a speed with which none of its competitors can keep up with hence increasing its market share and keeping its position as the leading Tech Giant safe.

Pricing

Moreover, the market pricing of its product keeping in view the inflation and economy of different countries also plays a huge part in its products being bought by ordinary masses at a rate with which no other tech giant can compete in.

While an iPhone costs around $1000, the comparable model Samsung mobile costs around $899. These $101 is what plays the role of a game changer and helps Samsung’s market value grow.

Conclusion

It can be noted that even with humble beginnings Samsung was able to overcome intense competition, cyclical economical fluctuations and much more by just sticking to its core values and doing what it takes to keep its company and products relevant in today’s market.

There have been many startups that failed just because they tried to introduce into the market the product that didn’t have any space or demand. Before every product launch, Samsung asks itself, “Is there demand of what we are producing?”

If the answer is YES, they then proceed further. By working on their people and investing in their product, Samsung has been able to reach the pinnacle of success it today sits proudly on.

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