The Overview of Samsung in China

The Overview of Samsung in China

Overview

Mr. Chung Yong, President of Samsung China Headquarters (SCH) was trying to integrate various business units in China into a single Samsung which differ from the prior in 1995 that each business activities had been conducted separately by each business units that mean done base on its own business strategies. At that time, he was considering about marketing strategies for color TVs which had been very important products in China market.

So, he had to make the immediate decision on the market segment and product line whether SCH should cover all market segments and product lines or focus on low-end market segment with limited line of products or target on high-end market segment?

THE CHINESE ECONOMIC ENVIRONMENT IN 1995

The Macro Environment

China was centrally planned socialist economy so that it caused the huge gap between the stated plans and actual ability of government to manage and control the economy. This is the most important issue of foreign firm to operate in China. Therefore, it led to outside economic interactions of government formal economic plan. Moreover, the smuggling