Essay on Samsung 5forces

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Analyzing an Organization by Porter's Five Forces
Samsung mobile phone.

This essay analyses the Samsung Mobile company by applying Porter's Five forces. Also each factor will be compared with Apple and Nokia which are competitive companies in the mobile industry and the strength of Samsung's strategic position will be demonstrated.

Samsung Electronics, Apple and Nokia are the competitive mobile companies. To compare each company's strategic position Samsung was chosen. Although many components are needed to make mobile phones; semiconductors and the operating systems (OS) which companies use will be mainly discussed because these factors have an effect on the function of a mobile phone. Therefore this essay
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Table1. The sales number of cell phone 2012. Company | Percentage of sales 2012(%) | Samsung | 31.3 | Apple | 15 | RIM | 4.3 | ZTE | 4.2 | HTC | 4 | Others(Nokia included) | (Source: adopted from Mello, 2012)

41.2 |
The power of suppliers
Samsung, Apple, and Nokia use a variety of suppliers for mobile components (Husso, 2011). As some mobile components of Samsung Electronics are provided by their subsidiary company, it seems that they have low power of supplier. Also, the subsidiary company which is Samsung Semiconductor was ranked second in the number of sales throughout the world in 2012(Leachman et al, 2002). This means that their semiconductors could be delivered for a low price in high quality. The most interesting factor is that Apple and Nokia chose the Samsung Semiconductor for their supplier (Leachman et al, 2002). Therefore Samsung Semiconductor could reduce the fixed cost as they produce large amounts of semiconductors to provide to two large companies.
In the case of Operating System, except for Samsung, Apple and Nokia use their own company's OS which is iOS and Symbian respectively. In the OS market, Android accounts for over 50% market share which means they provide OS to many mobile companies (Fernandez,2009). Therefore Samsung which uses Android OS has high level of power of Operating System
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