Product details

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Abstract

Samsung Group (Samsung), a world-famous industrial conglomerate, had established its commercial supremacy by offering broad range of high-tech consumer electronics products, information technology enabled services, home appliances, and telecom products. Samsung India Electronics Ltd (SIEL), a subsidiary of Samsung's flagship company, Samsung Electronics Company Ltd, had started its business in India in 1995. The company had achieved huge popularity in the country specifically through its 'Galaxy' series of mobile phones and tablets. In 2022, media reports indicated that Samsung had planned to exit the high volume but low value feature phone business in India. According to market analysts, the company had adopted such strategy to strengthen its market position in the higher price smartphone segment in India and for availing the benefits of Government of India's production-linked incentive (PLI) scheme. In an attempt to expand its business in the Indian mobile market, in July 2022, Samsung had offered its products on a 'Buy Now Pay Later' basis scheme. In this context, was Samsung right in its move to exit from the low value feature phone business in India? Would the company's renewed focus on premium segment boost its commercial performance in the country in future?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2022.

Geographical setting

Region:
Asia
Countries:
India; South Korea

Featured company

Samsung
Type:
Privately held
Industry:
Conglomerate

About

Abstract

Samsung Group (Samsung), a world-famous industrial conglomerate, had established its commercial supremacy by offering broad range of high-tech consumer electronics products, information technology enabled services, home appliances, and telecom products. Samsung India Electronics Ltd (SIEL), a subsidiary of Samsung's flagship company, Samsung Electronics Company Ltd, had started its business in India in 1995. The company had achieved huge popularity in the country specifically through its 'Galaxy' series of mobile phones and tablets. In 2022, media reports indicated that Samsung had planned to exit the high volume but low value feature phone business in India. According to market analysts, the company had adopted such strategy to strengthen its market position in the higher price smartphone segment in India and for availing the benefits of Government of India's production-linked incentive (PLI) scheme. In an attempt to expand its business in the Indian mobile market, in July 2022, Samsung had offered its products on a 'Buy Now Pay Later' basis scheme. In this context, was Samsung right in its move to exit from the low value feature phone business in India? Would the company's renewed focus on premium segment boost its commercial performance in the country in future?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2022.

Geographical setting

Region:
Asia
Countries:
India; South Korea

Featured company

Samsung
Type:
Privately held
Industry:
Conglomerate

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