Strength

Brand Image: Samsung ranked 8th in the world’s most valuable brand in 2020.

This strong brand value takes the company closer to its target market and
reaches them more easily.

Strong dominance in smartphone manufacturing: The Galaxy series of

Samsung smartphones are very popular.

Global availability of the products: In every region of the world, there’s a very
high probability of Samsung products being available.

Strategic Partnerships: Developing strategic partnership with software

developers and online firms are always an opportunity to grow revenue for
Samsung. Thus the company gets more functionalities from the developers that
can be used to enhance their electronic quality.

Research and Development: Samsung has always focused on the research and

development part not only for the flourishing of the company, but also for
providing quality products to its customers. According to its financial statement,
it spent more than 17 billion USD in 2019 for research and development which is
fascinating and outstanding

Enormous advertising and marketing budget

The move is significant given Samsung’s size alone. The company
is the fourth-largest advertiser in the world, spending roughly $9.7
billion in measured media, according to the recent reports.

Product innovation and design capabilities

Vertical integration and manufacturing outsourcing results in low

production costs

Weakness
1. Heavily dependent on the American Markets
It is estimated that both Apple and Samsung combined sold at least 74% of smartphones in
the USA market. While Samsung has diversified its resources and expanded its operations in
Asia, it is still heavily dependent on the American markets. 

The American economy is very unpredictable and another recession could put Samsung’s

revenues in jeopardy and can damage its operational resources. That’s why Samsung needs to
involve itself into the Asian and European markets to ensure sustainability and avoid
potential failures if the US economy ever collapses.

2. Decline in Smartphone Sales

Samsung has been experiencing a decline in smartphone sales since 2017. A similar trend
was seen in China due to the price sensitivity of the Chinese market. They dump a lot of
those products in the Indian market at a lower cost which harms the Samsung sales. Samsung
has tried to shift more focus in India, but that strategy did not produce substantial results for
the company.

3. Product Failures

Any product that threatens the life of consumers erodes confidence and trust in the company.
Samsung has delivered several faulty products to the market from the exploding Samsung
Galaxy A20e to a faulty foldable phone.

4. Dependence on Low-end Smartphones

A large portion of Samsung revenues come from low-end smartphone sales. Supply chain
constrains i.e. component shortage and longer delivery have impacted this segment more than
the high-end smartphone segment, which played a role in Samsung’s decline from 80 million
smartphone sales and 22.1% of market share in Q3 2020 to 69 million smartphones sold in
Q3 2021 with 20.2% of market share (as per Gartner Report).

5. Hereditary Leadership

Since its founding, Samsung has always been under the leadership of the family for three
generations. Even though keeping the leadership within the family has offered Samsung
immense stability, the company can stagnate due to a lack of fresh ideas. After being dogged
by several scandals, Samsung heir Jay Lee has vowed to end dynastic succession.  ‘

 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, Apple’s share price grew by 34.9%.

 Some Chinese competitors are catching up to Samsung in the smartphone

market. Between 2014 and 2015 Huawei’s share grew by 48.1%, and Xiaomi’s
share grew by 29.4%.
  Samsung is heavily dependent upon consumer electronics sales in markets with
limited potential for growth, such as the United States and Europe, for much of
its revenue.

 Samsung’s devices use the Google Android open-source operating system.

Many consumers seem to view Android as an inferior product to Apple’s iOS.
The public has not been as accepting of Android as the tech community has.

 Some consumers view Apple products as more advanced and dependable than
Samsung products.

 Samsung’s marketing efforts are not as sophisticated as Apple’s.

Samsung’s Opportunities
1. HR Management

Samsung can make impressive transformational accomplishments if it invests in its HR

management. Not only would it be good for its sales but it will also give it competitive
leverage over its rival.

The company can utilize its brand image and hire highly qualified and skilled employees
to improve employee performance and productivity.

3. Diversification and Acquisitions

It is critical that Samsung avoids the mistake of being limited to just one marketplace. It
not only invites risks from an economic perspective, but it also attracts unwanted political
polarization and negative media publicity.

 Growing market for smartphones, tablets and other mobile devices, especially
in developing regions such as Africa and India, where consumers are unfamiliar
with PCs. Sales of tablets finally overtook sales of traditional personal
computers in 2015.[3]

 Increased demand for tablet and smartphone-based solutions such as Samsung

Pay

 The growing middle class in the developing world will increase the market for
consumer electronics.
Samsung’s Threats
1. Patent Infringement Controversies

Samsung has been involved in controversies that have threatened its business. Its rival
Apple filed a lawsuit against Samsung for patent infringement which underwent a
heated court battle for seven long years until finally reaching a settlement.

However, the company suffered consequences when a jury decided that Samsung had

indeed copied Apple and was to pay $1.049 billion in damages. This suit damaged the
company’s reputation and its sales.

2. Increased Competition

Competition from opponents especially from those within the consumer electronics,
smartphone products, and computing industries has reached a record high. 

Whether it’s Xiaomi, Apple, or Huawei, all the technological competitors are

outperforming each other to become the best technology company. This only increases
the pressure for Samsung in both competition and finances.

3. Legal and Regulatory Threats

With the world becoming more globalized and digitally oriented, governmental authorities
have begun issuing their guidelines which are increasing legal and regulatory threats to
companies around the globe. Samsung is no exception to these rules. Laws differ from
market to market, and these strict regulations cause a hindrance in operations. Failure to
comply could even result in a complete shutdown in the respective market which may be
fatal for Samsung.

4. Economic Uncertainty

Recent events have catalyzed uncertainty in the global market and led to a decline in
new smartphone sales. Financial struggles have forced many consumers to seek
recycled or refurbished phones, which has increased by 24%. Samsung has already
experienced a decline in sales, and it can drop further if uncertainty persists.

5. Impending Court Cases

Any disruption in leadership can affect performance. A South Korean court is debating
whether to send Samsung’s leader and heir Jay Lee back to jail. New allegations
of stock-price manipulation and audit-rule violations have dogged the executive and
threatened to throw the company into another tumultuous period without leadership. 
 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
Apple’s reputation for reliability.

 Apple’s reputation for quality, reliability and sophistication seems to be

growing.

 The Google Android operating system, which Galaxy devices depend upon, is
not as popular with average people as iOS is.

 Chinese manufacturers such as Huawei and Xiaomi could emerge as serious

rivals to Samsung. These companies’ share of the critical mobile device market
is growing while Samsung’s is falling.