Essay on Samsung 5forces

Michael Porter's Five Forces analyze the external and internal environment of a company to increase the awareness of threats and structure of the industry that company competes within. Thus, the Five Forces is an ideal tool which can help companies to maintain their competitiveness with a higher profitability.

Besides, there are always many new entrants enter the market with the flow of labor and capital (Laudon, 2014, pp. 124). Although the requirements for the entry to the mobile market is relative higher than others, the number of new entrants are considerable while customers are more selective. As a result, those companies like the T-Mobile in this case that are lack of competitive advantages will be omitted by customers. As for the substitute, the development of entertainment tools decrease the desire of the mobile phone although there is little instrument can replace the mobile phone

In this following report I will discuss the phone industry and analysed it in great detail. I will analysis the market structure and try and understand why the mobile industry falls to heavily oligopoly structure. I will highlight all the structures, however I will discuss in detail how, for example Vodafone can be incorporated in the porter’s five forces method to show how the mobile industry has devolved over the years and to understand if consumers are driven by the actual technology of the phone but if it driven more by style.

The purpose of this essay is to compare, contrast and evaluate the two major competitor companies: Apple and Samsung. This essay begins by discussing the market value of the both companies. It will then turn to discussing the product portfolios of Apple and Samsung, and then examines the service and it concludes by evaluation.

Samsung has several competitive strength which has allowed the company to become the leader in many markets (Kotler, Keller 363). Their first strength is utilizing an abundant portion of their revenue towards R&D. Spending 40 billion dollars has empowered Samsung to grow their organization by innovation (Kotler, Keller 363). These innovations provide Samsung with a pioneering advantage. For instance, they were the first company to launch a “cell phone with an MP3 player”, (Kotler, Keller 363). In each of their innovations, Samsung has benefited immensely and helped strengthened the organization. Moreover, this research helps the company to prepare for the future and helps combat the inevitable market decline. R&D assists in forecasting future demand and future needs. They can assess the current trends and make judgments about what is to come. Thus, they can determine what products need to be modified by assessing which products are declining in their life cycle. However, R&D is not the only competitive strength Samsung has. Being the “global leader in making both the components for electronic products and the actual devices sold to consumers” has provided Samsung with a large competitive advantage. Essentially, Samsung is able to control their competitor and shape their competitive environment through the types of components they create and the prices they sell it. Likewise, these components significantly help Samsung. Having complete authority of their supply chain and manufacturing process allows Samsung to maintain lost costs, cater to several needs, make alterations quickly, and swiftly develop products new products (Kotler, Keller 363). This process makes it easier to create modifications and stimulates demand. This is especially helpful when the product market begins to decline. In general, the main competitive advantage here is Samsung is able to monitor the product’s entire processes, which makes it easier to innovate and stimulate growth. Furthermore, considering Samsung’s well established and trusted brand name, any new innovation they launch is much more likely to be accepted because consumers already know, love and trust their brand. Samsung is the triple threat, they are innovators, they have

By the end of 2012, Samsung electronics become the largest producer of televisions and mobile phone. In order to achieve the success and the dramatic rise in consumer electronics sector, the company initiated new methods to innovate and create high quality products .

Samsung is a South Korean company founded in 1938 that produces electronic communication devices of different types. Samsung has been expanding its product variation for a long time constantly increasing its market share value and annual revenues. In fact, it is considered as a classic product-driven brand and one of the largest smartphone manufacturers by unit sales, and that is the product I am especially interested in. Being equipped with a leading Android technology, Samsung smartphones are characterized by high quality, advanced designs and good prices. Moreover, the company offers a good chain of smartphone applications and accessories, as well as other electronic products as laptops, tablets, and netbooks

Samsung products range from mobile devices, TV, audio and video, home appliances, cameras, PC and peripherals and print solutions (Samsung 2014). This essay will predominantly look closely at Samsung’s mobile phones market.

Smartphone market is fast-moving and very high competitive due to intense competition between two big smartphone producers, Apple and Samsung. At the beginning, Apple dominated this market solely by introducing a new innovative type of smartphone by Steve Jobs that has revolutionized people lifestyle and mobile industry. A few years after launching iPhone, a new fast following competitor, Samsung came into this market, and their sales have outperformed Apple from the year 2011 (According to Chart A1 in Appendix). In term of developing their product, Samsung has created its products by following Apple’s technology since the beginning of producing its smartphone, therefore there are many patent lawsuits between them. Since Steve Job passed away, Apple has continued to develop its core competence, which is an innovation of new type of smartphone that could help them to take back their market share from its rival, Samsung. Nonetheless, the competition between Apple and Samsung will still continue intensively in the future.

On being operational in the global market, Samsung has been subjected to various kinds of pressure. Therefore, the focus of this report is show while formulating an international strategy how Samsung should take both environment factors into consideration that will shape their business approach. The analytical business tools namely PESTLE and Porter Five Forces will be used to understand the micro and macro environment drivers of Samsung’s strategy.

Nokia’s aggressive strategy to dominate mobile communication cluster would be the main reason how Nokia could become a world leader in the sector among other reasons. Nokia’s passion for mobile communication industry was great enough to give up more than 40% of its revenue in is pre-owned communication industry to concentrate only in mobile communications. Nokia was also lucky enough to see the possibility of mobile communication early enough to predominate the industry and prevent any competition from

There is need to consider several things when we talk about operations and future of a business. Expanded through a minor export business in Daegu, Korea, Samsung has emerged as one of the prominent corporations in electronics around the globe (Samsung, 2015). Samsung has major emphasis on electronic appliances and digital media, memory, system integration, and semiconductors. At present, Samsung has always created innovation through top quality practices and products that are accepted around the global. This paper will present SWOT analysis and Porter model of five forces for Samsung and propose the opportunities to increase profitability and competitiveness. This paper also comprises a

Porter's five forces is a model launched in 1979 by Michael Porter. It is used by companies for industry analysis and corporate strategy development. The five factors include competition, supplier strength, customer power, the potential for new companies joining the industry, and the threat of substitute products. Below is the model of Porter’s five forces:

Motorola, famous amongst mobile phones, and one of the top cellular phone companies in the world till late 1990, later it was captured by the company Nokia. While writing this case we have thrown light on the challenges and problems faced by Motorola around 2006-2007. One of the ideas incorporated in order to recapture the market in the year 2006 was to slash the prices of almost all the cell phones which impacted the returns of the company. Motorola did announce in the year 2007 that they will revive shortly and would have the market share back.

Apple and Samsung are the major competitors in the smartphone field. We would, like to discuss why they’re leading and conclude which one is better. In the electronic industry these two companies fight are considered as the highest massive ever. They mainly clash for brand image and brand reputation but any consequences regarding this fight, the impact should be faced by both these companies in terms of brand reputation loss and also the loss of huge amount of money over the litigations We would like to discuss the following,