A New Business Order Looms With Asean Integration

[Lite Beer]

EDITORIAL

A new business order looms with Asean integration

The Nation

BANGKOK: -- The government needs to be careful not to waste funds protecting sectors that are ultimately destined to fail

In the near future, Thailand will become a part of the Asean Economic Community (AEC). Regional integration will create both an opportunity and a threat to Thai industries, depending on how the industries prepare to enter into the "battlefield".

Failure to seize the opportunity will wreck the competitiveness of our products. Slashed tariffs under the Asean Economic Community (AEC) will cost Thailand Bt7 billion to Bt8 billion a year in lost revenue, according to the Customs Department. But it is worth proceeding with regional integration because it should provide a great opportunity for Thailand and the region to prosper in a more sustainable manner via a larger economy of scale.

From 2015, Thai products will face direct competition from neighbouring countries. This should be a powerful catalyst for local producers to find a niche for their products. Otherwise, they will be likely to compete with similar goods up against cheaper products from our neighbours.

Unfortunately, a majority of the Thai workforce is low-skilled labour. And sectors that rely on a low-skilled intensive workforce will find it more difficult to continue unless they re-position their place in the market to highlight the quality that is exceptional from others. Some non-competitive sectors may have to go, especially ones that the government supports with resources to prolong its longevity. Those resources should be spent promoting areas with potential, such as software and design.

Thai industries don't have to look far to learn lessons from the failure to change corporate culture to respond to the fast changing world. Japan's electronic industries, once perceived as the world's best, have in recently lost miserably to competitors such as Samsung from

South Korea, which managed to transform its brand image into world-class status via an aggressive marketing strategy.

According to an article by Richard Katz in The Wall Street Journal, one of the factors that "killed" Japan's electronic industries was bad product design. Japanese electronic industries follow a traditional production structure. But leading products these days must have state-of-the-art technology with a user-friendly design, such as Apple's iPad. Japanese firms, according to Katz, were still competing against Apple, Intel and Microsoft.

Moreover, it won't be useful to try to shelter sectors that are not competitive. Japan's corporate culture makes it too rigid for companies to let go of some products that are no longer competitive, such as video cassette recorders. Thailand, it should be noted, has a tendency to imitate this mistake. Our governments tend to continue subsidising less competitive sectors even though they might better use resources promoting the potential of a sector or industries with a better future. This is a reason why Japanese electronic companies have not been able to produce any market leading electronic product for years. Nonetheless, Japanese companies can still be resilient, thanks to the Japanese' hard-working spirit and quality education.

The development of Thai electronic industries has been largely attributed to the presence of Japanese investment in Thailand. Over recent decades, Thailand has managed to develop the industries by following the "flying geese" pattern, in which Japanese producers relocated production facilities for parts to different countries to benefit from the cheaper labour. Nonetheless, the new world business environment has shown that traditional way of doing business may not be enough for companies to maintain competitiveness, unless they are quick to adjust by cutting out the non-competitive parts.

The AEC is a blessing for Thailand; as an open regional market will force Thai producers to "think outside the box" to maintain their competitive edge. But the slump in Japan's electronic industry should serve as a lesson here that the sun can also set if we fail to maintain a competitive edge.

-- The Nation 2012-07-08

[Thai at Heart]

Samsung wins because of aggressive marketing? Might not be the thousands of highly qualified engineers that Samsung sponsors through universities at home and abroad?

I wonder if asean will allow free movement of national newspapers and journalists so a little free market enterprise will give the nation a chance to improve or better still disappear.

[nullx8]

does not look lie that any form of "unity" will do any good for Thailand.

it will take the country easy 2 generations to adopt (maybe even longer).

and (as pointed out in the report) the only government part worries is the customer department ..

nothing learned

everyone talks about electronics .... is Rice not included in a treaty like this ?

[phl]

Samsung wins because of aggressive marketing? Might not be the thousands of highly qualified engineers that Samsung sponsors through universities at home and abroad?

I wonder if asean will allow free movement of national newspapers and journalists so a little free market enterprise will give the nation a chance to improve or better still disappear.

I do not fully agree with your point of view.

One can have the best engineers in the world but without good marketing and advertising no one will get to know their talents and inventions.

Samsung upon entering the market was priced much cheaper and spent millions if not billions of $$$ on marketing and advertising.

Yes they are now pioneers of many new technology's but they also continue to spend billions on marketing and advertising and you will notice their prices are no longer cheap or cheaper if anything its higher than some Japanese makers.

LG also took chunk of market but heavy discounting, marketing and advertising

[phl]

I do not think OP fully understands the consequences to follow.

Yes Thai businesses will have to think outside the box, but owner of the business is NOT the only driving force behind the business, staff also need to perform.

The biggest challenge and problems for Thailand i see is an influx of foreign labor, wanting to work

Thai labor will either have to develop some work ethics or it may find itself out of work

Already most construction company's and factory's employ foreign labor, in many cases illegally, because locals do not want to work, in 3 years, when employing foreign labor will be legal, i see most if not all factories and construction company's going for the foreign work force and there will be no shortage of them, because even when their pay is lower than the locals, it is still more than they get back home.

[mrtoad]

Thailand will be fine, after all it is a HUB

[seaeagle]

"Our governments tend to continue subsidising less competitive sectors even though they might better use resources promoting the potential of a sector or industries with a better future."

You can't promote the potentials of new sectors and industries without having a skilled and educated workforce. Most issues in this country can be tracked back to the appalling standard of education and the 'general' lack of ability in the population.

[phl]

"Our governments tend to continue subsidising less competitive sectors even though they might better use resources promoting the potential of a sector or industries with a better future."

You can't promote the potentials of new sectors and industries without having a skilled and educated workforce. Most issues in this country can be tracked back to the appalling standard of education and the 'general' lack of ability in the population.

i do not think skilled and educated is the problem, The lack of work ethics is.

Anyone can be taught, trained and educated, but in general they do not stay in the same job for long enough to be trained to have the skills.

Just as an example, in Australia it takes 3-4 years of Apprenticeship to become skilled mechanic and they really push you to stay in the same place of work.

while in Thailand they become experts mechanics after 3 months and know everything about nothing

[trainman34014]

'Thinking outside the box' is not a strong point in Thailand. Indeed; they don't even think about getting more beer in before the current case runs out !

[h90]

Well the other countries have the same problems, Malaysian, Indonesian, Myanmar, Cambodia.....who of them should be the Thailand killer?

I worked with Indonesian.....nothing better than Thais.

[Unkomoncents]

Failure to seize the opportunity will wreck the competitiveness of our products.

Unfortunately, it seems no one told the The Nation's staff-writer that Thai products aren't competitive. It's nearly impossible to envision bottles of Chang being served in Singapore or Truevisions packages being offered in KL. There are a number of problems that this editorial touches on, albeit lightly. Skilled labor is a huge problem. Western Malaysians, Filipinos, and even the Vietnamese have better language abilities and are often willing to be more productive than Thai employees (who are mostly content to talk endlessly among each other, either in person or using various tech gadgets). Education is a disaster in the Kingdom. The World Economics Forum's Global Competitiveness Report ranks Thailand behind every ASEAN country except Cambodia, Laos and Burma in the area of education (something like 83rd out of 142 countries assessed worldwide). Thai products are also a problem, as the Kingdom imposes extremely heavy tariffs on foreign made "luxury" products (a 20,000 USD Mini-Cooper is priced starting at 2 million baht in Thailand [roughly 60,000 USD]). This has created a bevy of complacent, overbloated companies offering second grade goods and services (see True Corp and their attempts to kill of DTAC [a more competitive foreign rival]). I think Thailand will suffer tremendously as a result of the integration, at least initially. Hopefully the government won't do a 180 and pull out or ignore ASEAN initiatives, as that will only further marginalize a ossifying country.

[bigbamboo]

Samsung wins because of aggressive marketing? Might not be the thousands of highly qualified engineers that Samsung sponsors through universities at home and abroad?

I wonder if asean will allow free movement of national newspapers and journalists so a little free market enterprise will give the nation a chance to improve or better still disappear.

I do not fully agree with your point of view.

One can have the best engineers in the world but without good marketing and advertising no one will get to know their talents and inventions.

Samsung upon entering the market was priced much cheaper and spent millions if not billions of $$$ on marketing and advertising.

Yes they are now pioneers of many new technology's but they also continue to spend billions on marketing and advertising and you will notice their prices are no longer cheap or cheaper if anything its higher than some Japanese makers.

LG also took chunk of market but heavy discounting, marketing and advertising

Good point.

It used to be said that most great innovations were invented by the British, perfected by the Germans, marketed by the Americans and mass produced by the Japanese.

[Thai at Heart]

Samsung wins because of aggressive marketing? Might not be the thousands of highly qualified engineers that Samsung sponsors through universities at home and abroad?

I wonder if asean will allow free movement of national newspapers and journalists so a little free market enterprise will give the nation a chance to improve or better still disappear.

I do not fully agree with your point of view.

One can have the best engineers in the world but without good marketing and advertising no one will get to know their talents and inventions.

Samsung upon entering the market was priced much cheaper and spent millions if not billions of $$$ on marketing and advertising.

Yes they are now pioneers of many new technology's but they also continue to spend billions on marketing and advertising and you will notice their prices are no longer cheap or cheaper if anything its higher than some Japanese makers.

LG also took chunk of market but heavy discounting, marketing and advertising

Good point.

It used to be said that most great innovations were invented by the British, perfected by the Germans, marketed by the Americans and mass produced by the Japanese.

Well it is a case of which came first the product or the marketing. I would suggest that in the day and age of modern media, if the product is rubbish no amount of marketing can save you.

Anyone for a blackberry tablet or a Nokia symbian phone. I know Samsung had sponsored thousands of engineers through university in Korea and the usa, a friend of mine was one of them. After his time at MIT he had been hard at work fot Samsung developing led technologies.

I didn't see to many hitec Thai firms coming up with their latest generation led tvs or tablets. And to think that 50 years ago south Korea was somewhere equivalent to laos in gdp rankings is today.

[hellodolly]

I do not think OP fully understands the consequences to follow.

Yes Thai businesses will have to think outside the box, but owner of the business is NOT the only driving force behind the business, staff also need to perform.

The biggest challenge and problems for Thailand i see is an influx of foreign labor, wanting to work

Thai labor will either have to develop some work ethics or it may find itself out of work

Already most construction company's and factory's employ foreign labor, in many cases illegally, because locals do not want to work, in 3 years, when employing foreign labor will be legal, i see most if not all factories and construction company's going for the foreign work force and there will be no shortage of them, because even when their pay is lower than the locals, it is still more than they get back home.

I was hit hard by the statement

"The AEC is a blessing for Thailand; as an open regional market will force Thai producers to "think outside the box" to maintain their competitive edge."

All that you say is covered in thinking out side of the box. Much of it will be easily done as it is foreign investors holding the business up. For the Thai business I for see many problems. A good work ethnic is not part of there culture. That is to say they will combine work with there social life and there is nothing wrong with that unless you want to compete with the rest of the world.

The world is changing and if Thailand wants to stay in it they will have to change. There is no discussion in it they must.

[phl]

Samsung wins because of aggressive marketing? Might not be the thousands of highly qualified engineers that Samsung sponsors through universities at home and abroad?

I wonder if asean will allow free movement of national newspapers and journalists so a little free market enterprise will give the nation a chance to improve or better still disappear.

I do not fully agree with your point of view.

One can have the best engineers in the world but without good marketing and advertising no one will get to know their talents and inventions.

Samsung upon entering the market was priced much cheaper and spent millions if not billions of $$$ on marketing and advertising.

Yes they are now pioneers of many new technology's but they also continue to spend billions on marketing and advertising and you will notice their prices are no longer cheap or cheaper if anything its higher than some Japanese makers.

LG also took chunk of market but heavy discounting, marketing and advertising

Good point.

It used to be said that most great innovations were invented by the British, perfected by the Germans, marketed by the Americans and mass produced by the Japanese.

Well it is a case of which came first the product or the marketing. I would suggest that in the day and age of modern media, if the product is rubbish no amount of marketing can save you.

Anyone for a blackberry tablet or a Nokia symbian phone. I know Samsung had sponsored thousands of engineers through university in Korea and the usa, a friend of mine was one of them. After his time at MIT he had been hard at work fot Samsung developing led technologies.

I didn't see to many hitec Thai firms coming up with their latest generation led tvs or tablets. And to think that 50 years ago south Korea was somewhere equivalent to laos in gdp rankings is today.

Also true, but do keep mind, even the worst made movie can make money if enough money is put into advertising it.

One does not have to keep buying, just everyone needs to buy/try it once to make money.

[JurgenG]

A number of Thai companies are doing well, CP for one.

I never really understood how the policy of localism promoted by the junta, and later by the democrats, fits with the Asean integration. I'm just glad they are gone.

[Thai at Heart]

Also true, but do keep mind, even the worst made movie can make money if enough money is put into advertising it.

One does not have to keep buying, just everyone needs to buy/try it once to make money.

Are you kidding? If only the CEO's of all the great failed companies over the years had spent more on marketing they would have made successful companies?

I can't wait to see Kodak advertising itself out of bankruptcy, or Blackberry taking out TV adverts to convince its customers that it is still a better product than Android or Apple.

Great companies like Samsung today take years and years of innovation to grow, and of course they have spent money on advertising, but it is the constant r+d and development of their products to make them among (if not) the best in the world that gets them to where they are. Of course launching a phone takes promotion, but if it doesn't deliver on the promises, it will not sell as well as it should, and this will feed onto the next product that it launches. Staying at the top is extremely difficult, just ask any business at the top of its field. Samsung isn't at the top because it outspent its rivals on advertising, it is at the top because it has built a brand around innovation, quality, and all the other issues that a successful global company needs.

These days with the internet review websites for everything under the sun, it doesn't take long for a company to go from the very top to the abyss very very quickly. Everyone knows whether something is a pig of a product before it even hits the stores.

http://www.filmsite.org/greatestflops.html

And don't believe they didn't market these pigs of movies to the nth degree

[phl]

Also true, but do keep mind, even the worst made movie can make money if enough money is put into advertising it.

One does not have to keep buying, just everyone needs to buy/try it once to make money.

Are you kidding? If only the CEO's of all the great failed companies over the years had spent more on marketing they would have made successful companies?

I can't wait to see Kodak advertising itself out of bankruptcy, or Blackberry taking out TV adverts to convince its customers that it is still a better product than Android or Apple.

Great companies like Samsung today take years and years of innovation to grow, and of course they have spent money on advertising, but it is the constant r+d and development of their products to make them among (if not) the best in the world that gets them to where they are. Of course launching a phone takes promotion, but if it doesn't deliver on the promises, it will not sell as well as it should, and this will feed onto the next product that it launches. Staying at the top is extremely difficult, just ask any business at the top of its field. Samsung isn't at the top because it outspent its rivals on advertising, it is at the top because it has built a brand around innovation, quality, and all the other issues that a successful global company needs.

These days with the internet review websites for everything under the sun, it doesn't take long for a company to go from the very top to the abyss very very quickly. Everyone knows whether something is a pig of a product before it even hits the stores.

http://www.filmsite....atestflops.html

And don't believe they didn't market these pigs of movies to the nth degree

please ask your friend how much samsung spends on marketing including advertising annually worldwide.

7 years ago, Samsung was spending over $600 million, by now i am sure they are spending over a billion.

You do not think it's the one of the major reasons for its success?

Edited July 8, 2012 by phl

[Thai at Heart]

Also true, but do keep mind, even the worst made movie can make money if enough money is put into advertising it.

One does not have to keep buying, just everyone needs to buy/try it once to make money.

Are you kidding? If only the CEO's of all the great failed companies over the years had spent more on marketing they would have made successful companies?

I can't wait to see Kodak advertising itself out of bankruptcy, or Blackberry taking out TV adverts to convince its customers that it is still a better product than Android or Apple.

Great companies like Samsung today take years and years of innovation to grow, and of course they have spent money on advertising, but it is the constant r+d and development of their products to make them among (if not) the best in the world that gets them to where they are. Of course launching a phone takes promotion, but if it doesn't deliver on the promises, it will not sell as well as it should, and this will feed onto the next product that it launches. Staying at the top is extremely difficult, just ask any business at the top of its field. Samsung isn't at the top because it outspent its rivals on advertising, it is at the top because it has built a brand around innovation, quality, and all the other issues that a successful global company needs.

These days with the internet review websites for everything under the sun, it doesn't take long for a company to go from the very top to the abyss very very quickly. Everyone knows whether something is a pig of a product before it even hits the stores.

http://www.filmsite....atestflops.html

And don't believe they didn't market these pigs of movies to the nth degree

please ask your friend how much samsung spends on marketing including advertising annually worldwide

The issue would be is it significantly more than their competition.

[phl]

Also true, but do keep mind, even the worst made movie can make money if enough money is put into advertising it.

One does not have to keep buying, just everyone needs to buy/try it once to make money.

Are you kidding? If only the CEO's of all the great failed companies over the years had spent more on marketing they would have made successful companies?

I can't wait to see Kodak advertising itself out of bankruptcy, or Blackberry taking out TV adverts to convince its customers that it is still a better product than Android or Apple.

Great companies like Samsung today take years and years of innovation to grow, and of course they have spent money on advertising, but it is the constant r+d and development of their products to make them among (if not) the best in the world that gets them to where they are. Of course launching a phone takes promotion, but if it doesn't deliver on the promises, it will not sell as well as it should, and this will feed onto the next product that it launches. Staying at the top is extremely difficult, just ask any business at the top of its field. Samsung isn't at the top because it outspent its rivals on advertising, it is at the top because it has built a brand around innovation, quality, and all the other issues that a successful global company needs.

These days with the internet review websites for everything under the sun, it doesn't take long for a company to go from the very top to the abyss very very quickly. Everyone knows whether something is a pig of a product before it even hits the stores.

http://www.filmsite....atestflops.html

And don't believe they didn't market these pigs of movies to the nth degree

please ask your friend how much samsung spends on marketing including advertising annually worldwide

The issue would be is it significantly more than their competition.

its not an issue and yes it is more

but then again what company to do compare to Samsung?

Edited July 8, 2012 by phl

[Thai at Heart]

Also true, but do keep mind, even the worst made movie can make money if enough money is put into advertising it.

One does not have to keep buying, just everyone needs to buy/try it once to make money.

Are you kidding? If only the CEO's of all the great failed companies over the years had spent more on marketing they would have made successful companies?

I can't wait to see Kodak advertising itself out of bankruptcy, or Blackberry taking out TV adverts to convince its customers that it is still a better product than Android or Apple.

Great companies like Samsung today take years and years of innovation to grow, and of course they have spent money on advertising, but it is the constant r+d and development of their products to make them among (if not) the best in the world that gets them to where they are. Of course launching a phone takes promotion, but if it doesn't deliver on the promises, it will not sell as well as it should, and this will feed onto the next product that it launches. Staying at the top is extremely difficult, just ask any business at the top of its field. Samsung isn't at the top because it outspent its rivals on advertising, it is at the top because it has built a brand around innovation, quality, and all the other issues that a successful global company needs.

These days with the internet review websites for everything under the sun, it doesn't take long for a company to go from the very top to the abyss very very quickly. Everyone knows whether something is a pig of a product before it even hits the stores.

http://www.filmsite....atestflops.html

And don't believe they didn't market these pigs of movies to the nth degree

please ask your friend how much samsung spends on marketing including advertising annually worldwide.

7 years ago, Samsung was spending over $600 million, by now i am sure they are spending over a billion.

You do not think it's the one of the major reasons for its success?

Am searching to find some numbers. Meanwhile to chew on....

http://www.dailytech.com/Samsung+to+Invest+42B+USD+in+2012++Mostly+on+Chipmaking+OLED+TVs/article23796.htm

I. Samsung Outspends Rivals on R&D, In-House Process Technology

But at the end of the day, two things are clears. First, Apple has absolutely won in profitability. Second, Samsung does not care because it is beating Apple in sales.

The two companies’ wildly different approaches are perhaps best embodied by their different philosophies in terms of spending on research and development. Apple is notorious for being one of the stingiest spenders in terms of research paying in 2010 a reported mere $2.4B USD -- 2 percent of its annual income -- to research and development (R&D).

Samsung by contrast spent $6B USD in 2009 on R&D, according to Booz & Comp.

http://adage.com/article/news/advertising-age-100-leading-national-advertisers/235573/

[Thai at Heart]

its not an issue and yes it is more

but then again what company to do compare to Samsung?

I guess one of the other massive Japanese consumer electronics companies, or LG. But then again Samsung is so diversified into parts manufacturing also, it may be difficult to get a direct comparison.

[chrisinth]

"Our governments tend to continue subsidising less competitive sectors even though they might better use resources promoting the potential of a sector or industries with a better future."

You can't promote the potentials of new sectors and industries without having a skilled and educated workforce. Most issues in this country can be tracked back to the appalling standard of education and the 'general' lack of ability in the population.

i do not think skilled and educated is the problem, The lack of work ethics is.

Anyone can be taught, trained and educated, but in general they do not stay in the same job for long enough to be trained to have the skills.

Just as an example, in Australia it takes 3-4 years of Apprenticeship to become skilled mechanic and they really push you to stay in the same place of work.

while in Thailand they become experts mechanics after 3 months and know everything about nothing

Its funny that Australia is asking for so many Thai workers at this very moment; if your arguement stands true, it doesn't say much for Australia's work standards in country........

[Thai at Heart]

Also true, but do keep mind, even the worst made movie can make money if enough money is put into advertising it.

One does not have to keep buying, just everyone needs to buy/try it once to make money.

Are you kidding? If only the CEO's of all the great failed companies over the years had spent more on marketing they would have made successful companies?

I can't wait to see Kodak advertising itself out of bankruptcy, or Blackberry taking out TV adverts to convince its customers that it is still a better product than Android or Apple.

Great companies like Samsung today take years and years of innovation to grow, and of course they have spent money on advertising, but it is the constant r+d and development of their products to make them among (if not) the best in the world that gets them to where they are. Of course launching a phone takes promotion, but if it doesn't deliver on the promises, it will not sell as well as it should, and this will feed onto the next product that it launches. Staying at the top is extremely difficult, just ask any business at the top of its field. Samsung isn't at the top because it outspent its rivals on advertising, it is at the top because it has built a brand around innovation, quality, and all the other issues that a successful global company needs.

These days with the internet review websites for everything under the sun, it doesn't take long for a company to go from the very top to the abyss very very quickly. Everyone knows whether something is a pig of a product before it even hits the stores.

http://www.filmsite....atestflops.html

And don't believe they didn't market these pigs of movies to the nth degree

please ask your friend how much samsung spends on marketing including advertising annually worldwide

The issue would be is it significantly more than their competition.

Apple spends about the same without being anywhere nearly as diversified as Samsung.

http://www.appleinsider.com/articles/10/10/27/apples_2010_ad_budget_increases_by_190_million_but_still_outpaced_by_new_sales_growth.html

I look at it from the per perspective that it is partly the cost of staying at the top, but I found an interesting article explaining Samsungs dominant position in the TV market for example.

http://www.scribd.com/doc/48355873/Samsung-Marketing-Plan

At least according to them, their R+d has put them ahead of an in control of the LED 3d TV market for along time to come. Probably in very small thanks to my mate.

[h90]

A number of Thai companies are doing well, CP for one.

I never really understood how the policy of localism promoted by the junta, and later by the democrats, fits with the Asean integration. I'm just glad they are gone.

You are joking, right?

Thaksin did exactly the same. The large companies pay ALL the political parties. It doesn't mater who is in power.

[phl]

its not an issue and yes it is more

but then again what company to do compare to Samsung?

I guess one of the other massive Japanese consumer electronics companies, or LG. But then again Samsung is so diversified into parts manufacturing also, it may be difficult to get a direct comparison.

Exactly

[phl]

"Our governments tend to continue subsidising less competitive sectors even though they might better use resources promoting the potential of a sector or industries with a better future."

You can't promote the potentials of new sectors and industries without having a skilled and educated workforce. Most issues in this country can be tracked back to the appalling standard of education and the 'general' lack of ability in the population.

i do not think skilled and educated is the problem, The lack of work ethics is.

Anyone can be taught, trained and educated, but in general they do not stay in the same job for long enough to be trained to have the skills.

Just as an example, in Australia it takes 3-4 years of Apprenticeship to become skilled mechanic and they really push you to stay in the same place of work.

while in Thailand they become experts mechanics after 3 months and know everything about nothing

Its funny that Australia is asking for so many Thai workers at this very moment; if your arguement stands true, it doesn't say much for Australia's work standards in country........

if only we were discussing Australia

remind me again for what sector were they asking? ohh thats right farming , while in the mean time Thailand has sought and is allowing 200 000 foreign factory and construction workers as we speak

[Thai at Heart]

its not an issue and yes it is more

but then again what company to do compare to Samsung?

I guess one of the other massive Japanese consumer electronics companies, or LG. But then again Samsung is so diversified into parts manufacturing also, it may be difficult to get a direct comparison.

Exactly

So considering its size and diversified nature it s advertising spend may be relatively lower to revenue than some others.

[phl]

its not an issue and yes it is more

but then again what company to do compare to Samsung?

I guess one of the other massive Japanese consumer electronics companies, or LG. But then again Samsung is so diversified into parts manufacturing also, it may be difficult to get a direct comparison.

Exactly

So considering its size and diversified nature it s advertising spend may be relatively lower to revenue than some others.

are you speculating or making a factual statement?

[animatic]

Samsung wins because of aggressive marketing? Might not be the thousands of highly qualified engineers that Samsung sponsors through universities at home and abroad?

I wonder if asean will allow free movement of national newspapers and journalists so a little free market enterprise will give the nation a chance to improve or better still disappear.

I do not fully agree with your point of view.

One can have the best engineers in the world but without good marketing and advertising no one will get to know their talents and inventions.

Samsung upon entering the market was priced much cheaper and spent millions if not billions of $$$ on marketing and advertising.

Yes they are now pioneers of many new technology's but they also continue to spend billions on marketing and advertising and you will notice their prices are no longer cheap or cheaper if anything its higher than some Japanese makers.

LG also took chunk of market but heavy discounting, marketing and advertising

Both yes and no.

Without new, on market, and innovative, well thought-out products,

the best branding strategy money can buy will be for nothing.

Samsung spent to create market/brand awareness,

but what made Samung beat Sony was PRODUCTS.

Samsung developed a less hamstrung business culture

that allowed faster, better integrated and targetted marketing.

They made what they found people wanted, better and faster,

after people were prepared to look at Samsung seriously the

products made the lions share of the sales.

Edited July 8, 2012 by animatic