SWOT analysis of Samsung This is a Samsung Electronics SWOT analysis for 2013. For more information on how to do SWOT analysis please refer to our article. Company background Name | Samsung Electronics Co., Ltd. | Industries served | Consumer electronics, Telecoms Equipment, Semiconductors, Home Appliances | Geographic areas served | Worldwide | Headquarters | South Korea | Current CEO | Kwon Oh Hyun | Revenue | ₩ 201.103 trillion (2012) | Profit | ₩ 23.845 trillion (2012) | Employees | 221,726 (2012) | Parent | Samsung Group | Main Competitors | Apple Inc., Nokia OYJ, Intel Corporation, LG Display and LG Electronics, Sony Corporation, Texas Instruments Inc., Lenovo Group Limited, Hewlett-Packard Company, Sanyo Electric Co., …show more content…
4. Lack its own OS and software. Software and OS production has a high profit margin, can increase integration of company’s products and brand loyalty. Without strong software and OS Samsung is at disadvantage over its competitors. 5. Focus on too many products. Samsung Electronics serves 4 different industries with many different products in them. Samsung is at disadvantage over its competitors because it loses a focus when competing in too many industries and too many products. Opportunities 1. Growing India’s smartphone market. India’s smartphone market is one of the least penetrated among Asia/Pacific countries. Samsung has a strong presence in India’s market and could use this opportunity to expand its sales. 2. Growing mobile advertising industry. Samsung could develop advertising platform for its mobile devices and significantly benefit from this lucrative market. 3. Growing demand for quality application processors. Samsung is one of the key manufacturers of application processors for smartphones and tablets. The growing demand for these products requires more best quality application processors that only Samsung provide. 4. Growth of tablets market. Tablets market is expected to grow in double digits over the next few years. Samsung has a strong position in tablets market and could expand it by introducing newer, better quality tablet models, such as its current galaxy line. 5. Obtaining patents
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).
In the modern world of technology, many different companies are attempting to secure their own ground in a particular market. Many companies work in many tech fields & some company focus on software, some on mobile phones, others on television but one of the most recognizable names in the technology field is that of Samsung.
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.
Today Samsung has evolved into a group of companies unmatched by others in its range of industries and performance. It is now globally focused and responsive to the needs of each market, and more committed than ever to true innovation. The group’s three core business sectors are electronics, finance and trade and services.
In the year of 1990s Samsung has expanding and globalizing their business especially in electronic, particularly mobile phones and semiconductors, have become its most important source of income. Samsung have been operating over 50
Samsung maintained #1 leadership in the global smartphone market with a 24.6% share in 1Q15, 6.3% above Apple. This 9.7% consecutive expansion is mainly because of steady demand for the Galaxy S series flagship smartphones in general, and also heightened shipments of lower-end models, especially to areas such as Southeast Asia, the Middle East, and Africa. Samsung 's modernized sleek collection of devices, including the new premium inspired A-series, demonstrated favorable in many mid-tier markets that were typically dominated by local brands (Ma, 2015).
Samsung Electronics Co. Ltd is Korean international business, productions a wide-ranging of product; involves computers, mobile phone, digital TVs etc. Main fear of company is that it completely depends on
Opportunities: The major opportunities of Samsung are the entry within the different markets and countries in the region of Asia, Africa and America. The corporate would peek to enter in the different countries to supplement its sales and revenue. Moreover, Samsung would target on the other industries to raise the gross revenue of the group. Moreover, a lot of opportunities in electronic and software section through innovate technology and introduce latest technological phones, tablets and laptops (Krishnamacharyulu, 2011). Through providing the latest technologies, latest hardware and software phones, laptops and tablets the corporate will improve its position in the internatioal competitive market.
Samsung now- a- days included the heir, Infosys and other companies, then they face the paradox. As they require continuous success which made them successful. There business system work with their home markets, when we move to the next- level , they in themselves is contradict. And when they move towards new plateaus, they have to do it again.
Samsung adopts a local strategy since the firm originates from Korea but operates globally. The products are followed by the local lifestyle even if they are sold globally. However, this does not affect its market reception. For instance, UK consumers due to their high standard of living, have received Samsung Galaxy 8 so well (SDC, 2017). This implies that high-end electronics products are in demand.
Samsung Galaxy series marketing strategy multiple products aimed at multiple market segments. The production costs increase in producing variety of smartphone but it meets the consumers’ needs and wants. This way it will increase the Samsung’s revenue.
Android has grown exponentially from merely 4 percent of the market in 2009 to 66 percent of the market in 2012, according to Gartner. Samsung is Apple’s main competitor, but also Apple’s sole supplier of application processor that is required for the iPhone to function which gives Samsung the ability to charge a higher premium for their application processor. A key opportunity Apple can acquire is obtaining patents and merging into different markets to create their own application processor, as their contract with Samsung expires in 2014.
Samsung electronics has gained its competitive advantage from doing business for years in the audiovisual industry. At first, Samsung was not a strong competitor to the electronics giants at that time, such as Sony, Toshiba, and Panasonic. In fact, Samsung introduced its products by producing similar products at a lower price in order to survive within the
important reason is that Samsung had to face with a lot of strong competitors such
This report contains three sections. First part will analyze and evaluate the dynamics and trends in the smartphone industry and the strategic implications to Samsung