Samsung Electronics Case Write-Up Essay

Michael Porter wrote about five forces affecting the profitability and viability of companies. The five forces are existing competitors, new entries into the market, substitute products, bargaining power of customers, and the bargaining power of suppliers. (quickmba)

When it comes to pricing we always strived to provide one of the lowest prices in the market. We decreased product prices by $0.50 on each product each year to appeal to consumers. Since providing a low cost product was one of our strategic goals we did not stray from decreasing prices. Looking back, perhaps we shouldn’t have been so loyal to our strategy when we were unable to turn a profit. While a strategy is important to stick to, being a profitable company is the ultimate goal.

In order to determine whether the Five Forces are still applicable, this part will analyse Industry in general concerning structural changes due to Digitalization. Because of Digitalization, another two forces significantly affect the competition which are Globalization and Deregulation. The impact of Globalization on the Industry structure is the customers gain benefit as comparing global prices become much easier and faster in from the Globalization process (Dalken, 2014).

market, there is price competition. This can lead to price wars and, therefore, lower prices for

To assess the industry structure and profitability, a Five Forces analysis will be conducted on the department store-retail industry.

Industries will look different with all of these forces. The strategy will change based on how these forces look for the organization and industry. These concepts can be applied across the board, and they help organizations from getting trapped into the latest trends and technology out there selling solutions. This matrix really helps to

In the five forces model by Porter, four forces will influence the fifth one (see the model on the right). The bargaining power of suppliers, the bargaining power of customers, the threat of substitute products and the threat of new entrants will influence the fifth force: the level of competition in the industry (S.Clegg, C.Carter, M.Kornberger, & J.Scheitzer, 2011).

What driving forces do you see at work in this industry? Are they likely to impact the industry’s competitive structure favorably or unfavorably? (Did we answer this question?)

The five forces are not independent of each other and changes in one of the forces can have knock on effects with the other forces. The aim is to understand the nature and attractiveness of the industry, indentifying the drivers and allowing consideration of the impact of these forces on the SBUs on W H Smith.

• This force is relatively high where there a few, large players in the market, as it is the case with retailers an grocery stores;

Since 1938, Samsung has grown into one of the world’s leading electronics companies, specializing in digital appliances and media, memory, and system integration. This headquarters for this South-Korean based company is in Samsung City, Seoul Korea. For over 70 years, Samsung has continued to create innovative reliable products with advanced technology proving it is a world class tech leader. Our vision for the logo will be similar to the below image. The car will be blue with Samsung Smartsung going along the shape of the car and the wheels can we laptops with the words SMART CAR on the screen.

15 FIVE FORCES ANALYSIS ........................................................................................................................................... 16 Summary .................................................................................................................................................................. 16 Buyer power ............................................................................................................................................................. 17 Supplier power ......................................................................................................................................................... 18 New entrants ............................................................................................................................................................ 19 Threat of substitutes................................................................................................................................................. 20 Degree of rivalry ....................................................................................................................................................... 21 LEADING COMPANIES ............................................................................................................................................... 22 Anheuser-Busch InBev

Choose an industry of your interest and use porters five forces method of analysis to explain why the industry is attractive to you.

Buyers in this market are not very weak and powerful. They are few in numbers and can switch to other manufacturers for product quality but number of manufacturers is few and backward integration also seems impossible.

Porter’s 5 Forces analysis is a commonly used business theory that identifies the 5 competitive forces of an industry. By identifying and analysing these forces you can determine an industries weaknesses and strengths. Porter recognised the 5 forces in most business markets to be internal rivalry, entry, substitutes and compliments, supplier power and buyer power.