Samsung Strategic Analysis







1.     SWOT analysis

1.1 Strengths

Innovative Designs

Samsung offers a lot of handsets with various kinds of designs, not at all like its major rival Apple iPhone. The company’s management is currently progressing in the direction of changing Samsung's way of supervision and system to be delegated an inventive organization and change its notoriety. With this new-fangled vision, Samsung obligation is to encourage its networks by utilizing its key quality, inventive arrangements, creative items, and new technology, as they keep on advancing its new qualities for Samsung center systems (Madani et al., 2014).

Product Diversity

Samsung has an immense number of product varieties in its item portfolio; it offers distinctive kinds of products to its clients. Samsung selects to enhance its portfolio so as to continue improving and making items that reflect the consumer’s desires. Samsung's has built up itself as the follower to apple when cell phones are concerned. Samsung trusts that the market will be built up and put it all on the line vigorously (Madani et al., 2014).

Largest Market Share

Samsung has a decent market position; the company keeps on expanding share of the overall industry. Company’s asset under direction has been expanded by $11.9bn in the last fiscal year, even in the tough market conditions (Rahman, 2015).

1.2 Weaknesses

Lack of own Operating System

Samsung doesn't have its very own operating system Like Apple iPhone in its portable system. Samsung needs their own Operating Systems in the event that they need quality to be under their control and ensure that their item really contrasts from others in the marketplace (Fautrero and Gueguen, 2013).

Increasing costs

Rising manufacturing costs made their operating benefits decline, giving the consumer the best service sounds great; however, this comes at an expanded price for plan, advancement, materials, support, producing, stock, coordination, and overall supervision (Pon, Seppälä and Kenney, 2014).

1.3 Opportunities

The growth of the tablet market

The cell phone marketplace has a more grounded development in the course of recent years, developing the selection of tablet in industry, for example, IT, medicinal services, education, retail, and media are additionally expected to aid in the development of the marketplace amid the estimated period (Anon, 2019).

Strong financial position for future

As Samsung has been running for an extensive period of time, it has had the capacity to prove a concrete economic position in the marketplace. Thus, it will almost certainly make greater investment later on. Additionally, Samsung needs to move the world and make a manageable situation for a superior future prospect (Sustainability Report, 2018).


1.4 Threats

A large number of competitors

The Samsung facing many competitors in the marketplace, the number is furthermore developing. Competition in the electronics business will turn always furious as development keeps on abating in main products showcases. Samsung has challenges from competitors like Apple, Xiaomi Mobile HTC, and Lenovo. These companies are the greatest threat to Samsung (annual-report, 2014).

Chinese products

As the Chinese organizations offering the product at a low cost and they are also producing superior quality, individuals are accepting those brands precipitously. Samsung gave lower specifications at a more expensive rate in the Chinese marketplace. Chinese merchants began to give premium apparatus at moderate costs utilizing improved technology and with the less expensive supply chain of segments. Subsequently, Chinese customers began to pick higher particulars. Samsung is endeavoring to recuperate its piece of the pie by propelling mid-evaluated cell phones Jeremiah et al., 2019).

2.     Porter’s Five Forces

2.1 Industry Rivalry

The electronics business sees extraordinary competition in light of the vast number of contending brands and their size and monetary superiority. Samsung comes out on top with a 32 percent share of the marketplace, followed by Apple and Huawei at 16 percent and 5 percent, individually. With the market being ruled by a couple of firms, these organizations must do everything without exception to remain on stage in front of their competitors.

2.2 Power of supplier

Working with Samsung relies upon a particular kind of supplier. Samsung has 579 suppliers worldwide and the organization's supply chain incorporates more than 2,700 suppliers in different ventures over the globe. Additionally, Samsung keeps up a broad correspondence with its suppliers inside the extent of different projects and activities, for example, Shared Growth Day, Hot Line and Supplier Dialog Fair. Furthermore, Samsung makes its very own processors, memory and capacity part. Furthermore, the company supplies its own crude materials (Jeremiah et al., 2019).

2.3 Threat of Substitute

The risk of substitutes is high a result of the number of customers who are utilizing laptops, tablets and different tools to watch distinctive projects. Be that as it may, Samsung Group knows about this and has enhanced its items to incorporate any contraptions that enable customers to get to the web, sit in front of the Television considerably more advanced applications. It has created intelligent Television models that offer consistent combinations with outer gadgets and web applications (Brostoff, Levin and Bowers, 2019).

2.4 Power of Buyers

Samsung customers can switch to items from different organizations including Motorola, Nokia, Apple Inc HTC, LG, and Blackberry. They can do as such at no additional expense and it altogether expands their bargaining power (Brostoff, Levin and Bowers, 2019).

2.5 New entrants

The risk of new contestants is low for Samsung. Producing such a quality brand isn't simple. There is a ton of monetary venture in addition to advertising and a requirement for exceptionally skilled HR management(Pratap, 2017)


References:
Madani, F., Koosawangsri, R., Ha, J. and Koosawangsri, R. (2014). Samsung's Innovation Strategy in Smart Phones Market. [online] Available at: https://www.researchgate.net/publication/319585333_Samsung's_Innovation_Strategy_in_Smart_Phones_Market [Accessed 17 Apr. 2019].

Rahman, M. (2015). Case Study of Samsung Electronics by Mahmudur Rahman. [online] Available at: https://www.academia.edu/32574246/Case_Study_of_Samsung_Electronics_by_Mahmudur_Rahman [Accessed 17 Apr. 2019].

Fautrero, V. and Gueguen, G. (2013). The dual dominance of the Android business ecosystem. [online] Available at: https://www.researchgate.net/publication/260105011_The_dual_dominance_of_the_Android_business_ecosystem [Accessed 17 Apr. 2019].
Pon, B., Seppälä, T. and Kenney, M. (2014). Android and the demise of operating system-based power: Firm strategy and platform control in the post-PC world. [online] Available at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.719.8174&rep=rep1&type=pdf [Accessed 17 Apr. 2019].


Anon, (2019). Tablet Market Predicted to Grow at a Moderate Pace Till 2026. [online] Available at: https://techziffy.com/tag/tablet-market-share/ [Accessed 17 Apr. 2019].

Sustainability Report (2018). INSPIRE THE WORLD CREATE THE FUTURE. [online] Available at: https://www.samsung.com/us/smg/content/dam/samsung/us/aboutsamsung/2017/Sustainability_Report_2018_en.pdf [Accessed 17 Apr. 2019].

annual-report (2014). SAMSUNG ELECTRONICS ANNUAL REPORT. [online] Available at: https://www.samsung.com/us/smg/content/dam/samsung/us/aboutsamsung/2017/about-us-sustainability-report-and-policy-annual-report-2014-en.pdf [Accessed 17 Apr. 2019].

Jeremiah, M., Kabeyi, B., Moses, C. and Kabeyi, J. (2019). Michael porter’s five competitive forces and generic strategies, market segmentation strategy and case study of competition in global smartphone manufacturing industry. [online] Available at: https://www.researchgate.net/publication/328462314_Michael_porter's_five_competitive_forces_and_generic_strategies_market_segmentation_strategy_and_case_study_of_competition_in_global_smartphone_manufacturing_industry [Accessed 17 Apr. 2019].

Brostoff, B., Levin, H. and Bowers, T. (2019). Samsung Client Report DangerZone Consulting. [online] Available at: http://economics-files.pomona.edu/jlikens/SeniorSeminars/Likens2014/reports/samsung.pdf [Accessed 17 Apr. 2019].
Pratap, A. (2017). [online] Available at: https://medium.com/@abhijeetpratap/a-five-forces-analysis-of-samsung-79bca289b1c2 [Accessed 17 Apr. 2019].


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