Samsung is a South Korean multinational company while started the business as a small

trading company and immediately charming world largest corporation. The company deals
with its business in several sectors for example advance technology, finance, petrochemical,
semiconductors, plant construction, skyscraper, hotels, medicine, fashion and others. The
company was established in 1969 in Suwon, South Korea and known worldwide for its
electronic products.

The company is engineering several latest technologies, electronic appliances for instance
mobile phones, tablets, laptops, TVs, refrigerators, air conditioners, washers and other
products. The company turns its operations and sales its products in 80 countries with
approximately 326,000 employees in all over the world. Furthermore the company attained
the position of the world largest IT maker in 2009 by beating the Hewlett-Packard (HP)
previous leader. Its sales revenue in the segment of LCD and LED is the highest in the world.
Additionally, Samsung also turn into world leader in the segment of tablets, mobile phones
and gadgets.

COST BASED APPROACH:

Cost based approach is the approach primarily concerned with the cost in creating or
replacing the brand.

MARKET BASED APPROACH:

Market based approach basically deals with the amount at which a brand is sold and is related
to highest value that a "willing buyer & seller" are prepared to pay for an asset.

INCOME BASED APPROACH:

Income Based approach is the valuation of future net earnings directly attributable to the
brand to determine the value of the brand in its current use. This method is extremely
effective as it shows the future potential of a brand that the owner currently enjoys and the
value is useful when compared to the open market valuation as the owner can determine the
benefit foregone by pursuing the current course of action.
COST BASED APPROACH:

Book value method:

The last few quarters have been difficult for Samsung Electronics. The company’s quarterly
operating profits have dropped for six straight quarters, as its flagship smartphone business
reeled under intense competition from Apple’s big-screen iPhones and value offerings from
Chinese manufacturers mainly one plus. Samsung's stock price has also been quite volatile,
and is down by about 15% from its 2014 highs.

Samsung’s semiconductor business accounts for about 40% of our $1,355 price estimate for
the company. In this note, we take a look at scenarios relating to Samsung’s DRAM business
and its logic chip business that could result in a meaningful upside to its stock price.

Replacement value method:

Samsung follows IFRS. IFRS allows only the FIFO and weighted-average cost methods. In
this case, Samsung uses the weighted-average cost method, except for when recording
materials in transit. Under the weighted-average method, when price rises, cost of goods sold
is usually greater than that calculated under FIFO. Thus, Samsung uses a more conservative
accounting method than Apple. For write-downs, reversals are required to recover the value
of inventory.

Similar to Samsung, Lenovo also uses weighted-average cost method. Lenovo follows Hong
Kong GAAP, which allows FIFO and the weighted-average cost method, and prohibits LIFO.
Hong Kong Accounting Standard 2 (HKAS 2) specifies accounting treatments of inventory.
It does not allow exchange differences arising from purchasing products through payment of
foreign currency. For write-downs, HKAS 2 allows reversals and requires disclosure of any
reversals of write-downs. By December 31, 2015, Lenovo disclosed inventory of
$263millions.

Liquidation value method:

In the electronics industry, and particularly the consumer goods sector, the value of assets is
significant to the balance sheet. For Apple, Samsung, and Lenovo, being worldwide leaders
in the industry, there is perhaps more significance in regards to the effect of how assets are
valued. Apple follows U.S. GAAP, which prohibits the revaluation model. When realizable
value exceeds actual value, a direct write down is recorded for the impairment. Contrary, the
revaluation model is allowed under IFRS. Thus, Samsung is able to carry its’ PPE to fair
value less any subsequent accumulated depreciation and impairment losses.

When no real market value exists, plant and equipment is valued at depreciated replacement
cost. When there is an increase in an asset’s carrying value, initial revaluation of PPE
requires a credit to equity as “reservation surplus.” Decreases in an asset’s carrying value are
recorded as an expense on the income statement. Land and buildings may be set at market
value. If there is subsequent revaluation, a decrease in value must first be reduced for any
existing revaluation surplus and the remaining is expensed. Likewise, if there is an upward
revaluation, income should be recognized to the extent of any previous expenses recorded
and the remaining is credited to equity as “reservation surplus.”

Samsung is also able to reassess Biological Assets and maintain at the fair value less the cost
to sell. Any upwards change in fair value, however, is immediately recognized as income.
Apple has to value its’ Biological Assets at historical cost. While Lenovo follows Hong Kong
GAAP, the revaluation model is permitted like under IFRS. However, Hong Kong GAAP
requires an entity to choose between the cost model and the revaluation model. In Lenovo’s
annual report, it is stated that PPE is reported at historical cost less any subsequent
depreciation and impairment losses.

Brand equity:

Samsung Huge Employee

Samsung may be a nice example, employing a reliable metric to live their development and
success. In the start, it absolutely was a way to beat Sony four years past. Later, it’s however
might Samsung initiate a lot of. Meantime, one in every of the ten complete-strength factors
is brand clarity. This implies the complete should even be well understood within and out of
doors the organization. It is important that such a complete culture exists.

Customer Needs

Externally, it’s however you differentiate the complete from the competition in additional
relevant ways in which to be higher than your competitors to higher meet the requirements
and needs of your customers.

Positive Response

In the case of Samsung, when you differentiated your complete, you wish to form positive
that you just reach your target audiences through all the foremost relevant bit points.
Samsung smartly engaged the social media and uses many techniques to focus on its
complete.

For example, once Apple launched the iphone five last year, Samsung attacked Apple within
the social media like in an exceedingly guerrilla warfare. In terms of Samsung’s variations
from Apple, Samsung permits a lot of versatile and open platform.

Organized Brand

Brand culture is extremely vital. It isn’t enough to try to simply the promoting that is
external, since the company has a tendency to even have to concentrate to the interior factors,
like our organization’s complete culture. Human resources departments are important in
developing the people’s competencies and in activity their progress.
Conclusion

On Samsung’s differentiation strategy, the product variations as mentioned ought to be

relevant in terms of client wants and needs. In my opinion, several customers conjointly like
Samsung smart phones as a result of they need larger screens and font sizes that suit the
requirement of not-so-young folks. In short, they are easier to use for several folks.