SWOT Analysis of Samsung

www.gotabout.info

SWOT Analysis of Samsung

Posted on January 24, 2019 by faizul

The SWOT analysis of Samsung elaborates the strength, weakness of, and
opportunities, threats for Samsung mobile. It will provide an overview that will
prompt a view around the company’s strategic situation. It can be used to evaluate
the position of their business. It can also be used to guide overall business strategy
session of Samsung. 

Company Overview

Founded in 1938, Samsung is one of the leading mobile manufacturing companies

in the world. This South-Korean based company, headquartered in Samsung City,
provides di erent types of products including semiconductors,  digital televisions ,
air conditioners, computers, liquid crystal displays, and active-matrix organic light-
emitting diodes, monitors, mobile phones, refrigerators, printers, and
telecommunications networking equipment. Samsung is the largest mobile phone
manufacturer in the world. It’s listed under South-Korean stock market.

Strengths

1. Innovative designs. Samsung o ers a lot of handsets with di erent types of

designs, unlike its nearest competitor Apple Iphone.
2. Integration of open source operating system, and software. The most strong
strategy they took was adaptation of the open source technology like Android
Operating System. The world is moving with Android opensource operating
system. Di erent companies are working with it. It o ers a lot of features,
options, and softwares. Taking this strategy into account, Samsung grabbed
huge competitive advantages over other mobile manufacturers.
3. Cost & Quality Focused. When it is about the production costs, Samsung
reached the economies of scales. It outsourced its production to di erent
 countries that has competitive advantage in producing quality products at
small costs.
4. Too large product diversity (stability on sale). Samsung has a huge number of
product in its product portfolio, it o ers di erent types of products to its
customers. In return, the pro t it makes is very much stable. When the sale of
one product goes down, other products may be experiencing increase in sales.
5. Low production Cost. Low production costs allow Samsung to o er its
products at lower price than its competitors do.
6. Largest Market Share in Mobile Phone Market. By applying the above
strategies, Samsung has been able to grab largest market shares in the
market.
7. Recognized Brand. Without any doubt, Samsung is one of the most recognized
brands in the world.
8. Strong Brand Reputation. Until now, it has been achieving strong reputation of
o ering quality products at low price.
9. Environmental Focus. It has been ful lling responsibilities towards the
environment. They provide energy e cient products. They ensure that the
chemicals used in the products do not harm its users. And currently, Samsung
is operating the global recycling and take-back programs in 60 counties.
10. Very Strong R&D Department. Samsung has a strong R&D department which
frequently helping to develop new innovative consumer products.
11. Samsung has a large number of skilled employees all over the world (489,000).
12. Samsung captures a greater than 40% smartphone market share in the
Netherlands.
13. Samsung Malaysia Electronics won big at the Putra Brand Awards 2015. It will
work as a positive reputation in Malaysia.

Weakness

1. Low-Pro t Margin. It always keeps low pro t market. There are lots of
competitors in this industry. So, keeping the customers they must o er the
products at low price.
2. Damaging Image by Infringement. Few of the recent incidents a ected its
brand image negatively.
3. Too Large Product Diversity (lack of focusing on speci c one). It takes a lot of
work if the product portfolio is large. It cannot be possible to give
 concentration to each product with utmost importance.
4. Lacking of Own Operating System. Like Apple IPhone, it does not have its own
operating system.
5. Less Quality than Apple’s. When it comes to the quality, Apple is doing better
in the handset o ering.
6. Heavily Dependent on Consumer Electronics. Dependence on consumer
electronics is higher than other manufacturers.
7. Samsung’s Operating System Android has Many Lacking. Though they have
been trying hard to make the Android more qualitiful, but still it lacks
perfection.
8. Large Dependence on Other Software. It cannot, solely, provide all of the
software needed to support its devices. It depends on third parties.

Opportunities

1. The Indian smartphone market is growing. People are becoming more tech
dependent, and smartphone became the most used communication tool in
this era. As a result, the demand of smart phone is increasing.
2. Most people use feature phones that make a switch to smart phone.
3. The demand for technologically advanced phones is growing. As the smart
phones are becoming the near alternative of computers, the demand of
smartphones is increasing.
4. Strong nancial position for future. As the Samsung has been doing business
for a long period of time, it has been able to secure a strong nancial position
in the market. As a result, it will be able to make more investment in the
future.
5. The growth of tablet market. The growth of table market is in negative phase
for which these users will be switching to smart phones.
6. Acquisition of new companies. Samsung has been acquiring companies. It is
ensuring its future growth. Recently, Samsung bought the audio giant Harman
for $8 billion. Also, it acquired Viv, an AI platform from the makers of Siri and
completed the acquisition of NewNet Communication Technologies (Canada),
Inc. recently.

Threats
 1. The large number of competitors. The mobile market is saturated. The
Samsung has a lot of competitors in the market, the number is also growing.
2. Strong Competitors like Apple, HTC etc. It has strong competitors like Apple,
HTC, Lenovo, and Xiaomi Mobile. It is the biggest threat for Samsung.
3. Chinese Competitors are Gaining Competitive Advantages. As the Chinese
companies can product products at low price and they can also give high
quality, people are accepting those brands spontaneously.
4. People are Looking for Better Quality Nowadays. So, if there is any question of
quality, people will be switching to the companies who give better qualities.
5. A Large Number of Products, Failing One will A ect Another. As the Samsung
has a large portfolio, it has a high risk also. If any product do harm to the
customers, it will a ect the brand image and therefore, will grow negative
e ect to others.
6. Threats of Chinese, Taiwanese, and Indian Products in the Local Market.

SWOT analysis of Samsung showed that it has many strengths against its
weakness. Also, they have great opportunities as well as market threats. If
Samsung mobile does take steps to be stronger in the market by providing quality,
it will be a stronger organization in future.

Competitors' SWOT

1. SWOT Lenovo
2. SWOT Apple
3. SWOT HTC
4. SWOT Asus
5. Volkswagen SWOT Analysis

Sources Used To Conduct This Analysis:

Wikipedia – 2016.
Samsung, annual Report – 2015 & 2016.
Samsung O cial Website – 2017.
Phonearena.
 http://www.samsung.com/us/aboutsamsung/sustainability/environment/
https://www.engadget.com/2016/11/14/samsung-buys-harmon-auto-audio/
https://news.samsung.com/global/samsung-acquires-rich-communications-
services-business-from-skyview-capitals-newnet-communication-technologies

SWOT business analysis, swot analysis