KRUPANIDHI B-SCHOOL

Created By:- Ravindra Singh Gohil

MBA IIIrd Semester Reg. No. A8754977

SONY LCD TV V/S SAMSUNG LCD TV

CONSUMER ELECTRONIC INDUSTRY

Electronic Industry

• Companies that design, manufacture, and/or distribute electronic devices and equipment including semiconductors; semiconductor materials and production machinery; test, measurement, and inspection equipment; scientific and technical instruments; and electrical and electronic components such as connectors and display devices. Also includes contract electronics manufacturers

Electronics Industry overview• In 2006 the UK electronics industry made £47.5 billion in turnover (source:

Department for Business, Innovation & Skills (BIS)). Judging by turnover and number of design houses, over 40 per cent of Europe's independent electronic design community works in the UK (source: Future Horizons and EIGT).

• There are around 10,000 electronics enterprises in the UK, employing around 211,000 people, most of which are small companies. The electronics and IT services sectors together account for approximately 4 per cent of the UK's gross domestic product and employ around a million people, but their real impact is wider as they are closely linked with other sectors (source: BIS).

• Electronics is a wide-ranging industry, with its traditional markets changing as it moves into other sectors. The UK has particular strengths in electronic chip design across a wide spectrum of disciplines, which is recognized globally, and has successfully focused on software and design innovation. As of 2006, the UK invests 1.9 per cent of its Gross Domestic Product in software (source: Office for National Statistics, "Economic Trends", 2006.)

The main sub-groups are:• machinery components, e.g. microprocessors • telecommunications equipment • consumer electronics • medical equipment • instrumentation • process control - used in engineering and statistics • optical and photographic equipment • electronic systems design • photonics, e.g. optical technologies, lasers and laser

processing equipment and lighting

International trade in the Electronics sector

• The global electronics market has been estimated at $2 trillion each year. Semiconductors alone account for $275 billion revenue worldwide, with annual growth forecast of between 6 per cent and 8 per cent (source: BIS, 2008). The strongest markets for export opportunities are:

• Canada • Taiwan • Japan • USA • Switzerland • In terms of import opportunities, the UK is the leading market in digital TV,

with 85 per cent of British homes having access to digital services. The strongest markets for export opportunities for broadcast technology are:

• USA • Australia • Europe

GROWTH

• In India, the demand of video products, such as color televisions (CTVs), VCD/DVD players, and set-top boxes account for 90% of the consumer electronic market.

Easy availability of finance is an important factor driving growth for consumer electronics market. Some companies are also taking advantage of this factor by teaming up with banks to offer attractive loan schemes to consumers.

According to isuppli projects (India market intelligent service), consumer electronics industry in India is growing at a compounded annual growth rate (CAGR) of 11%.

Top 10 consumer products companies

Company Country of Origin

Rank FY06 Net Sales ($ million)

FY06 Sales Growth

Altria US 1 101,407 3.6

Hewlett-Packard US 2 91,658 5.7

Samsung Electronics South Korea 3 90,551 5.9

Nestle SA Switzerland 4 78,625 8.1

Matsushita Electric Industrial Co., Ltd

Japan 5 77,966 2.4

Procter & Gamble Company

US 6 76,476 12.1

Sony Corporation Japan 7 64,777 13.1

Toshiba Corporation Japan 8 60,916 12.2

Dell Inc. US 9 57,095 2.1

Nokia Corporation Finland 10 51,657 20.3

Introduction • Sony Corporation (commonly referred to as Sony) is a

multinational conglomerate corporation headquartered in Minato, Tokyo, Japan, and one of the world's largest media conglomerates with revenue exceeding ¥ 7.730.0 trillion, or $78.88 billion U.S. (FY2008). Sony is one of the leading manufacturers of electronics, video, communications, video game consoles, and information technology products for the consumer and professional markets. Its name is derived from sonus, the Latin word for sound.

STATUS

• Revenue ¥ 7.730 trillion ($78.877 billion U.S. ▼(Fiscal Year Ended 31 March 2009)

• Operating income ¥ −227.8 billion▼• Net income ¥ −98.9 billion ▼• Total assets US$ 230.5Billion (▲ 2009)• Total equity US$ 50 Billion (▲ 2009)• Employees 180,500 (as of March 2008)

Products Information List• Image Sensor • CCD Camera System • LCD/Peripheral IC • TV/Display • RF Device • Optical Disc • Digital Audio • Magnetic Record(FDD/HDD/Other)• Mobile Communication • A/D, D/A Converter • Optical Communication • Laser Diode • Microcomputer

BRAVIA LCD HDTV• BRAVIA is a Sony brand used to market its high-definition

LCD televisions, projection TVs and front projectors, along with its home cinema range under the sub-brand BRAVIA Theatre. The BRAVIA name is an acronym of "Best Resolution Audio Visual Integrated Architecture". All Sony high-definition flat-panel LCD televisions in North America have carried the BRAVIA logo since 2005. The name BRAVIA replaces the "LCD WEGA" brand name which Sony used for their LCD TVs until Summer 2005 (early promotional photos exist of the first BRAVIA TVs still bearing the WEGA moniker).

The BRAVIA brand uses the slogan "Color like.no.other".

Sony aims for Top slot Sony is aiming to grab bag the top slot in LCDs above the 32-inch screen

size and is targeting digital camera segment priced upwards of Rs10,000. The company has identified LCD, digital cameras, handy cams and laptops

to achieve 30 per cent growth in the country. The company is targeting the value market segment on the back of

introducing technologically advanced products and customer service. Following its promotion in the recently concluded cricket world cup, it

plans to aggressively promote Bravia LCDs in India. Sony has also launched high definition handy cams and Cyber Shot models

in the premium range. The company has a 50 per cent share of the global handy cam market and

is targeting to sell 3 lakh pieces this year in India. The company has a 30 per cent share in the Indian digital camera market, estimated at 1 million units.

As a part of its retail expansion, Sony plans to open about 350 Sony World and Sony exclusive showrooms in India. Currently it has about 100 Sony World outlets and 150 exclusive Sony showrooms.

• Samsung Electronics is the world's largest electronics company, headquartered in Yeongtong-gu, Suwon, South Korea. It is the largest South Korean company and the flagship subsidiary of the Samsung Group.

• Samsung Electronics is the global market leader in more than 60 products, including semiconductors such as DRAM, SDRAM, flash memory and hard drives, digital displays such as LCD displays, plasma displays and OLED displays, home electronics such as TVs, DVD players, Blu-ray players, home cinema systems, set-top boxes and projectors, mobile devices such as mobile phones, MP3 players, digital cameras and camcorders, computing products such as monitors, laptops, UMPCs, CD and DVD Drives, laser printers and fax machines and home appliances such as refrigerators, washing machines, microwaves, ovens, vacuum cleaners and air conditioners.

Vision• Samsung is guided by a singular vision: to lead the digital

convergence movement. • We believe that through technology innovation today, we will find

the solutions we need to address the challenges of tomorrow. From technology comes opportunity—for businesses to grow, for citizens in emerging markets to prosper by tapping into the digital economy, and for people to invent new possibilities.

• It’s our aim to develop innovative technologies and efficient processes that create new markets, enrich people’s lives and continue to make Samsung a trusted market leader.

Mission• Everything we do at Samsung is guided by our mission: to be the

best “digital-E-Company”.

Key business areasSamsung Electronics focuses on four areas: Digital Media, Semiconductor, Telecommunication Network, and LCD Digital Appliance. The main growing business areas related to LCD+Digital Media+Semiconductor at 2006.

The Digital Media business area covers computer devices such as laptop computers and laser printers; video displays such as televisions and computer monitors; and consumer entertainment devices such as DVD players, MP3 players, digital camcorders, refrigerators, air conditioners, air purifiers, washers, microwave ovens, and vacuum cleaners.

The Semiconductor business area includes semiconductor chips such as SDRAM, SRAM, NAND flash memory; smart cards; Mobile Application Processors; Mobile TV receivers; RF Transceivers; CMOS Image Sensors, Smart Card IC, MP3 IC, DVD/BD/HD-DVD Player SOC and multi-chip package (MCP); and storage devices such as optical disc drives and hard disk drives.

The Telecommunication Network business area includes multi-service DSLAMs and fax machines; cellular devices such as mobile phones, PDA phones, and hybrid devices called Mobile Intelligent Terminals (MITs); and satellite receivers.

The LCD business area focuses on TFT-LCD panels for laptops, monitors, and televisions.

SAMSUNG LED LCD TV

SAMSUNG LAUNCHED WORLD 1st 82-inch LCD

SAMSUNG GIANT PLAYER IN LCD-TV

Samsung's worldwide LCD TV shipments for Q2 amounted 57 lakh units, up 605,956 from 51 lakh in Q1 09, the largest unit increase of all LCD TV brands during the quarter. The 12 per cent growth gave Samsung a market share of 18.5 per cent."

Worldwide shipments of LCD TVs with LED backlights rose to 604,000 units in Q2, up 75 per cent from 345,000 in the previous quarter. Shipments of such sets are expected to rise by 170 per cent in Q3 and by another 20 per cent in Q4.

For all of 2009, shipments of LCD TVs with LED backlights are predicted to reach 45 lakh units, up by more than a factor of 10 from 438,000 in 2008. By 2013, shipments will rise to 9.88 crore, accounting for 42.5 per cent of the global LCD TV market.

Global LCD TVs shipments rose to 3.07 crore units in Q2 09, up 14.1 per cent from 2.69 crore in the first.

SAMSUNG LCD TV GROWTH