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Samsung SWOT Analysis Paper

Updated on August 10, 2016

Samsung SWOT Analysis

Samsung is one of the leading manufacturers and marketers of electric and electronic products. Founded in 1988, Samsung has grown to be the second largest revenue generation electronic companies after their long time competitors Apple Company (Dudovskiy, 2015). The company began as a small business in the city of Taegu, Korea. Today, Samsung is the world’s most recognized electronic company in both innovation and quality, Thanks to their manufacturing and marketing experts.

The company specialized in the manufacture of media and digital appliances as well as system integration products. The Samsung brand is associated with three types and levels of consumer electronic products. The levels describe the three major wings and divisions of Samsung production and marketing operations. This entails:

  1. Consumer electronics: these entail audio visual appliances, medical and health solution appliances and equipment.
  2. Communication and media devices this division deals with the production and the sale of communication and mobile devices.
  3. Device solution this division of Samsung Company entails operations revolving around production of device accessories and software.

However, despite the production of a wide range of products, the Samsung Company gained its fame and popularity from its excellence in smart phone and mobile phone manufacturing. Samsung products and devices are known for their quality, innovation and class (Dudovskiy, 2015).

This analysis aims at determining the motivation, inspirations and milestones that have seen Samsung Electronics Company develop from a small business to globe recognition. The analysis entails a range of factors that have seen the company gain the largest company market share, develop in to world’s largest revenue generating company as well as on how it manages to achieve its mission of making the life of their product consumers better (Jurevicius, 2016).

SWOT Analysis

Strengths

  1. Samsung is a globally recognized electronic producer. It is it leads in the production and manufacture of LCD television sets, Smart phones and other audio and visual electronics. The company is recognized for its innovativeness and quality. This makes it a strong competitor with Apple.
  2. Samsung Company leads in sales and marketing of smart phones as well as mobile phones. The company has operations in all corners of the globe hence operation a wide consumer region than its competitors. Another factor that makes Samsung a leading marketer is the fact that they produce quality and affordable phones.
  3. Samsung has vast and amazing research, design and technology capabilities. Samsung production and development experts are innovative and technologically advanced. The company has been able to develop advanced software, systems and applications that exceed their competitor’s capabilities. For instance, Samsung developed the Samsung pay application within a year’s period. The application was a replicate of apple’s online payments application. The company has quality levels and high expenditure in research technology and design that enable them produce quality products that are able to compete in the market.
  4. Samsung Electronics Company has powerful and influential marketing and manufacturing strategies and capabilities.
  5. Samsung provides friendly and reasonable deals with product retailers around the world. This creates a firm, positive and mutual benefit relationships between distributors and manufacturers. These strategies influence the stability of sales as well as create new channels of product distribution around the world.


Weaknesses

  1. Samsung marketing strategies have not been effective enough to compete with Apple Inc. This has led to loss of market popularity in some regions. For instance, according to marketing statistics in 2014 and 2015, Samsung lost its smart phone sales popularity to apple Inc in the United States market.
  2. Samsung is facing stiff competition from both local and foreign manufacturers. Some competing companies have utilized Samsung’s manufacturing gaps to produce high quality products and selling them at a cheaper price.
  3. Consumers have not fully embraced Google android operating system used by Samsung smart phones. They view the operating system as an inferior version of apple’s iOS. This has led to loss of market popularity.
  4. Majority of Electronic consumers have a perception that apple appliances and devices are more dependable, reliable and sophisticated than Samsung products. Samsung marketing protocols, agents and strategies have failed in flashing this perception in the market.
  5. Marketing strategies and processes used by Samsung Company do not match those used by their strongest competitor, Apple Inc. in sophistication.
  6. Samsung marketing and sales has more focus and dependence in regions that have limited chances of market expansion. The company has less focus in regions such as Africa with large market and growth dynamics.


Opportunities

  1. There is a fast developing market for smart phones, tablets and PCs in developing regions of Africa and India. Samsung can choose to focus and utilize the market given that the region has a large market population that may provide a leading market.
  2. Tablet and smart phone users have shown increased interest to access Samsung solutions. Also, the market population has an increased demand to access solutions such as Samsung pay. This in turn increases demand for smart phone and tablets.
  3. The world’s poverty levels are decreasing. This means that the middle class population is increasing hence increase in electronic consumer market.
  4. There are many developing technologies. To stay relevant in the market, Samsung should hastily adapt the changes and developments in technologies.
  5. The world has positively embraced online markets and ecommerce. This creates a market expansion and consumer target reach ability opportunity for Samsung and its products.




Threats

  1. Samsung is facing high competition in market control and dominance. Samsung has not managed to beat its competitors in controlling some markets such as Europe and United States. This failure is as a result of Samsung’s inability to beat other strong competitors such as Apple Inc. in device reliability.
  2. Samsung is losing Apple Inc. in the competition for sophistication, reliability and dependability.
  3. Samsung is losing population based on the use of Google android operating system where the target consumers believe and have more desire for iOS devices. The consumer prefer iOS devices com[pared to the operating system adopted for the most powerful Samsung devices, Google android OS
  4. United States middle class population is facing a declining or rather stagnating income levels. This could lead to reduction or even no market for Samsung electronic devices.
  5. Samsung is facing aggressive competition from other Chinese and Japanese companies, for instance, Xiaomi and Huawei. The market share for these competing companies is steadily growing while as that of Samsung is swiftly falling.
  6. Samsung has a wide range of products ranging from hope appliances to digital, and communication devices. This diversity makes it powerful and able to enjoy a broader and wider a market given that most of its competitors specializes in PCs, smart phones and tablets. However, some of Samsungs competitors could diversify their market products leading to a stiffer and more aggressive competition.


Samsung leads in popularity based on remarkable and impressive innovations, design and production capabilities. However, the company is needs re-strategize and put more efforts on matters pertaining sales and marketing. New strategies need to be laid down to restore and maintain its smart phone and tablet market share in aggressive market regions such as the United States.

The company also needs to research and design better and strong strategies on how to deal with upcoming Chinese competitors as well as overcome Apple’s reputation in reliability and sophistication.


References

Dudovskiy, J. (2015, October 3). Samsung SWOT Analysis. Retrieved August 4, 2016, from Research Methodolgy: http://research-methodology.net/samsung-swot-analysis/

Jurevicius, O. (2016, may 4). Samsung SWOT analysis 2016. Retrieved August 4, 2016, from Strategic Management insight: https://www.strategicmanagementinsight.com/swot-analyses/samsung-swot-analysis.html

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