Table of Contents

I. Introduction ................................................................................................................... 1

I. Introduction
The name Samsung is one of the most valuable brands in the world and is stated in the top 20 best-known brand
names. The Korean meaning of Samsung is 'three stars'. The Samsung Group was founded in 1938 in Korea by Lee
Byung-chull. The company was founded with 30.000 won. In the beginning, Samsung mainly focused on trade
export. For example, dried Korean fish, fruit and vegetables.

Since then Samsung has grown to a worldwide brand, which is sold in 58 countries and the company has a total of
208.000 employees. Samsung offers products in the field of telecommunications (mobile phones and IT network),
digital equipment (cameras), digital media (CD-ROMs, DVDs), LCDs and semiconductors, and is also a large
construction company. Samsung Electronics and Samsung Heavy Industries are the most important parts of
Samsung.

II. External Environment

1. Explain the competitive environment
Intro softly about using Five force modals
 Barriers
to entry/
exit

Threats
Industry
of
rivalry
sustitute Porter's
Five
Forces

Supplier's Buyer's
power power

1.1 Threats of substitution & Industry Rivalry:

Threat of substitution:
A substitute item is an item in another market that represents a danger since it is conceivably a substitute for your
item. A substitute (item) can adversely influence the 'value versatility' of your item since more substitutes become
accessible the interest turns out to be increasingly flexible as clients have more choices a nearby substitute item
obliges the capacity of firms in an industry to raise costs (UKEssays).

This component is to be sure high as the business sectors for white products are overwhelmed with numerous
substitutes and given the way that shopper durables are regularly longer term buys, organizations like Samsung
must be cautious in settling on the suitable promoting methodology. This is likewise the motivation behind why
numerous multinationals like Samsung regularly embrace differential evaluating to draw in customers from over
the salary pyramid to wean them away from less expensive substitutes. Further, this component additionally
implies that many developing business sector buyers are yet to extend their reliance on white products and rather,
want to the customary types of housework wherein they depend less on contraptions and apparatuses. Be that as
it may, this is quickly changing as more ladies enter the workforce in these business sectors making it
fundamental for them to utilize contraptions and apparatuses.

Threat of industry rivalry:

Maybe this is one of the most significant of Porters 5 powers, since rivalry is the thing that tends drives
advancement changes in the market since firms take a stab at an upper hand. The force of competition among
firms differs crosswise over business sectors. In a market that is immersed contention can get wild as firms vie for
similar clients, yet in a developing business sector firms don't have to contend as savagely as there may have their
very own developing client base to which they can provide food their item.

This component is particularly critical for Samsung as the other White Goods multinationals like LG, Nokia, and
Motorola also Apple are occupied with savage focused contention. Without a doubt, Samsung can't
underestimate its situation in the market for allowed as all these and other household white products players
work in a market where edges are tight and the challenge is exceptional. Aside from this, Samsung faces what
could be compared to the "Cola Wars" (the unbelievable battle for predominance among Coke and Pepsi) in
developing markets like India where Samsung needs to fight and rival a huge number of players residential and
worldwide. This has had the effect of this measurement particularly solid for Samsung.

No Companies/ Products Price Design Comparative advantage Market share

Samsung Galaxy Note
10 Plus
Huawei P30 Pro
Apple iPhone 11

1.2 Power of Buyer:

Purchasers are the main thrust of any industry including the car area. Buyer behaviour is a fundamental piece of
marketing strategy and top to bottom examinations and research have been led to attempt to comprehend
purchaser conduct. Average inquiry to pose to when considering purchaser conduct are, who are our purchasers?
How would they purchase? When do they purchase? Where do they purchase? For what reason do they purchase?
In Samsung Electronics' case, the general dealing intensity of the shoppers is decently high. The changing
expense to the customers are low, which implies, purchasers can without much of a stretch change to different
brands subsequent to increasing more data for that item. Higher the challenge level, propelled the innovations
will be, and costs will be focused, which incredibly sway on the customer inclinations. Samsung needs to put more
in marketing and advertising to draw in more purchasers. As each brand in the business is forcefully advertising
the items to hack the adversary's shopper base (Pratap, 2017).

1.3 Power of Supplier:

Suppliers are the establishments of any industry they can supply crude materials, work segments
and different supplies. Along these lines it is significant that a business has a decent solid
association with its providers to guarantee that it can work easily and proficiently in attachment
with its providers. The intensity of providers shifts relying upon specific components, for
instance on the off chance that the item is institutionalized, at that point the provider will be
feeble, a case of this in the gadgets business would be silicon makers. There are numerous to
browse and item assorted variety is moderately low accordingly providers are powerless in this
market. Providers are all the more dominant when they give an increasingly specific item.

On account of Samsung, its suppliers' bartering force is low a result of a few significant variables. First is their little
size because of which their haggling quality is low. Next, these suppliers are dissipated everywhere throughout
the world and Samsung can without much of a stretch change to another one. Be that as it may, Samsung being a
significant wellspring of pay for these providers, they can only with significant effort change to another brand.
Thus, Samsung makes the standards that the providers are required to pursue and it conducts ordinary
examinations to check whether the providers are sticking to the guidelines and guidelines. From work welfare to
item quality and supportability, the providers are required to adhere to the set principles in every one of these
territories. Hence, you can see that every one of these variables keep the general haggling intensity of providers
limited. On the off chance that a portion of the providers can practice some haggling force, at that point it is a
result of their size and money related clout.

1.4 Threat of Entry (Potential Competitors)

This identifies with the fact that it is so natural to enter the commercial center, this power has
just negative ramifications on current market contenders since the simpler passage into a market
is the more contenders there possibly is. In any case, for the most part there are legitimate
necessities that must be defeated before the commercial center can be entered for instance an
item should pass least quality and wellbeing principles and licenses are generally required for
exchanging.

When considering the hardware mechanical division passage into the market is very
troublesome, since an enormous starting venture is required, and rivalry is furious. In the current
financial atmosphere passage in this area will be practically inconceivable except if a creative
interesting selling point is accomplished. Thereby, we can see Samsung in the monopolistic
competition group.

The White Goods industry characterized by high barriers to entry and low barriers to exit
particularly where worldwide aggregates like Samsung are concerned. To be sure, it is regularly
hard to enter developing markets on the grounds that a large group of elements must be
contemplated, for example, setting up the circulation organize and the production network.
Notwithstanding, worldwide combinations can leave the developing markets effectively as
everything necessary is to handover and offer the business to a local or an outside player on
account of declining or falling deals. This implies Samsung has entered many developing
markets through a bit by bit approach and has additionally left the business sectors that have
been seen as unbeneficial. This is the motivation behind why white products multinationals like
Samsung frequently do their due constancy before entering developing markets.

References
Essay UK, Samsung, n.d. Samsung. [online] Available from: https://www.essay.uk.com/free-
essays/business/samsung.php [Accessed: 25 November 2019].

UKEssays. November 2018. Samsung Analysis: Porter’s Five, SWOT and PESTEL. [online]. Available from:
https://www.ukessays.com/dissertation/examples/business-examples/samsung-electronics-industry-
corporation.php?vref=1 [Accessed 30 October 2019].

Juneja, P. 2019. Porter’s Five Forces Analysis of Samsung. [Online]. Available at:
https://www.managementstudyguide.com/porters-five-forces-analysis-of-samsung.htm ,
[Accessed on: 30th October, 2019]

Pratap, A. 2017 A five force analysis of Samsung . [Online], Available at:

https://medium.com/@abhijeetpratap/a-five-forces-analysis-of-samsung-79bca289b1c2,
[Accessed on: 15th April, 2019].

https://www.porteranalysis.com/porter-five-force-analysis-of-samsung-electronics/