Samsung Vrio Analysis

5080 Words21 Pages
Masters Programmes ------------------------------------------------- Assignment Cover Sheet Question: [Analyze a strategic issue facing Samsung Electronics Company] “This is to certify that the work I am submitting is my own. All external references and sources are clearly acknowledged and identified within the contents. I am aware of the University of Warwick regulation concerning plagiarism and collusion. No substantial part(s) of the work submitted here has also been submitted by me in other assessments for accredited courses of study, and I acknowledge that if this has been done an appropriate reduction in the mark I might otherwise have received will be made.” Introduction Samsung Electronics Company (SEC), Ltd…show more content…
Samsung is the 7th most valuable brand in the world fuelled by its success in the smartphone and TV industry (Interbrand, 2014) (Forbes, 2015). Its product innovation and design capability has allowed it to win 11 consecutive awards at the consumer electronics show (Samsung, 2014) and has strong commitment to producing ecologically friendly products (Han, 2010). Weakness There are many competing brands of smart phones and Samsung has reported a decline of profits in 2014. Information from GSM arena shows than Samsung released 54 new phone models in 2014 , compared with 24 by HTC , 11 Motorola and 2 by Apple, leading to increased production costs and lack focus on a specific customer segments thereby losing some of its competitive advantage (GSM Arena , 2015).The lack of popularity of its own OS (Tizen ) and dependence on Google’s Android platform makes it vulnerable on google to develop an “ecosystem”. There are component integration issues as well as loss revenue from potential App sales (Strategic Mangement insight , 2015). Negative publicity from litigation due to patents are likely to continue as technology patents are vague and Samsung with is large portfolio is likely to infringe on some of the patents (Tibken, 2014). Threats With 78% of
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