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Swot Analysis of Industry
Swot Analysis of Industry
STRENGTHS
1. Large customer base
2. Higher margins
3. Hi-end Technology No compromise!
WEAKNESS
1. Low manufacturing Base
2. High focus on R& D
OPPORTUNITIES
1. Rising 3G uptake
2. Rising Data usage
3. Growing rural numbers
4. Rising disposable income
THREATS
1. Competition
2. The Chinese presence!
3. Virus Attacks
STRENGTHS
Samsung is the worlds number one marketer of mobile phones with
21.4% of the worlds largest market share in the second quarter of
2015. Apple is number two with 13.9%[2]
WEAKNESSES
Samsung has not been able to match Apple
Inc.s marketing capabilities for smartphones. Its share of the U.S.
smartphone market fell by 2.3% between 2014 and 2015. In contrast,
Apples share price grew by 34.9%.
OPPORTUNITIES
Growing market for smartphones, tablets and other mobile devices,
especially in developing regions such as Africa and India, Increased
demand for tablet and smartphone-based solutions such as Samsung
Pay
THREATS:
Apple has emerged as the dominant smartphone and tablet brand in
some markets, such as the United States. Samsung has not been able
to overcome Apples reputation for reliability.
1.InboundLogistics:
Knowing that Samsung already has its own operations and activities in the
manufacturing processes of their smart phones, most activities involved in
inbound logistics are heavily refined. The key in the implementations to our
strategy will be to synchronize Samsungs current scheduling and inventory
controls with AuthenTecs in order to continuously create more value without
slowing down the manufacturing process.
2.Operations:
Operations will be one of the biggest keys to change with respect to the
value chain framework, second only to marketing and sales. The acquisition
of AuthenTec would sprout a major issue in the manufacturing process.
Because Samsungs manufacturing operation has mostly been localized to
Seoul, South Korea, the North American companys China-based
manufacturing of biometric scanners could put a delay in its production
process. Logistics play a big role in ensuring that scheduling and inventory
control are matched with Samsungs pace; but because of overseas shipping
and unpredictable delays that come with it, this operation potentially
becomes less streamlined and thus can decrease value. A possible solution
to this challenge would be to relocate AuthenTecs operations closer to
Samsungs facilities for more immediate control over hardware production.
There would be considerable costs involved with such a move, including the
increased labour costs in Korea compared to China. Samsung would need to
determine if the payback period for value they gain in their operations
offsets the costs quickly enough to be worth making the move, or if it would
be better to keep production as it is and risk the potential drawbacks of the
distanced production of the scanners.
3.OutboundLogistics:
Current outbound logistics are very solid on Samsungs end. Because it has
most of its operations localized within Samsung Town in Seoul, all activities
related to the gathering, storing or distribution of their finished smart phones
(and all other products) are done effectively, with little delay and with a
streamlined logistics methodology. The acquisition of AuthenTec will not have
any effect on these logistics procedures, as the final state of the products is
the same as in their older smart phone models.
5.Service:
The value that services add or help to maintain should be considered in both
AuthenTec and Synchronicas acquisitions. Minimal training will be required
for employees in either category because they already have their expertise
since before the acquisition. There may be some standards that Samsung will
prefer them to adjust to (in terms of safety standards or in the slight
adjustments required to adapt their technology to Samsungs technology).
The installation of the proposed security network will have many incurred
costs due to its breadth (worldwide), which Samsung must be ready to cover
in order to proceed with the promise of enhanced and superior security.
6.Support Activities
With respect to support activities which enhance the value created through
the value chain analysis, Samsung already has many of said activities in
place. The new operations regarding the upgraded technology would require
small tweaks in the technology development support activity, mostly with
updating materials and adjusting the building process.
Firm infrastructure will be modified to account for new employees gained
through acquisition, which will include adjustments in the accounts related to
said employees and their companies, the management of these employees,
the quality of the newest items produced, and in the information systems
required to communicate live data across national borders. Closely related to
the employee infrastructure are the adjustments in compensation via HRM
for the employees already with Samsung and those joining Samsung through
acquisitions.
The Analysis Value Chain Framework analysis has its shortcomings in not
being able to represent value-adding activities that Samsung might be
performing outside of the value chain. A lot of the value created by
Samsung, even strictly in the mobile market, comes from things like
branding and human resources which are not accounted for in such an
analysis. Its because of this that we have selected separate analytics
techniques throughout the report to understand Samsung and its operations
from various perspectives. Determining inbound and outbound logistics and
the changes that would result in them from the acquisition of AuthenTec and
Synchronica and the new activities added was the most difficult and perhaps
vague sections of the Value Chain Analysis because thats not information
readily available to the public. Determining how things would change outside
of the obvious expectations related to data coming in and out of the new
branches and what the new employees have to offer is a difficult task with
the limited information available.
11.Procurement
As a world leader in digital technology Samsung Electronics advanced to a
new era in product development, corporate culture and contributions to the
global community.
To achieve these objectives, we understand how important it is to build
relationships and have the full support of the supplier class.
Stars
Products or businesses that are considered as star in the BCG matrix are a part of evolving
industry which offers growth prospects to the businesses. As a result, companies are interested
to invest in developing these units further to gain a larger market share and attain a stronger
position in the market. The product manufactured by Samsung that can be seen as a Star is the
mobile phones and tablets. In an effort to deal with the competitive pressure from other mobile
phone manufacturers, Samsung has invested its resources to expand its market presence. The
management has been able to achieve this objective, making the company one of the major
mobile phone suppliers in the international market (Gibbs, 2015). The mobile phone industry is
marked by rapid technological changes which indicates that the market is in the growing phase.
The introduction of new technology in the market results in the incorporation of new features
in the mobile phones and tablets. Samsung manufactures new mobile phones, adding new
features to make it more appealing for the target market.
In Oct 2010 Samsung was the first company to launch Tablets in the
Indian market, with the Galaxy tab 7.
Later released Galaxy tab 10.1.
Latest releases in this series are Samsung Galaxy Tab 2 (7.0) and
Galaxy note (10.1).
Vision samsung
Vision 2020
The underlying principle that defines our vision for the future of Samsung
Electronics is "Inspire the World, Create the Future".
Mission Samsung
Inspire the world with innovative technologies, products and designs that
enrich peoples lives and contribute to a socially responsible and sustainable
future.
Objective Samsung
Goals Samsung
1. Quantitative goal
2. Qualitative goal