Swot Analysis Of Samsung Company

Introduction

Background

In 1938, Samsung was founder by Lee Byung-chul, it was a trading company in Su-dong. As time goes on, Samsung became a one for the largest international conglomerate in South Korea, and it is also one of the top 500 listed companies in the world. In 1996, Samsung group the world’s fifth largest group. Samsung’s business involved in electronics, finance, machinery, chemical and other fields. Samsung company deeply effected culture of South Korea. When talking about Samsung company, everyone knew Samsung belongs to South Korea. In addition, it’s worth mentioning electronics industry of Samsung, in the 1960s’, Samsung extended to the electronics industry. Today, Samsung’s electronics is the largest subsidiary of Samsung

Samsung became the largest market shares mobile phone from 2012 to 2016.

Low manufacture cost

Samsung set up a few subsidiary corporation in China, it manufactured ten of thousands smart phone by low-cost Chinese labor. Eventually, Samsung export their smart phone all around the world.

Weakness

Low profit

As we all know, Samsung’s smart phone had the largest market shares after 2012. Actually, the margin profit is always lower medium and low-income population are major customers. They purchased low price smart phone for connection with each other. Hence, the largest market shares doesn’t mean Samsung could make more profit.

Lack of differentiating capabilities

Between shapes of Samsung galaxy and Apple’s iPhone have some similarity, likewise, after Apple published iPad, Samsung also published Samsung table afterward. Samsung tried to keep up with Apple, but it was lack of differentiating capabilities.

High price, low cost

Moreover, Huawei and Xiaomi rose starkly in the Singapore market, they also hold on the Android OS to compete with Samsung. Patent apple(2016) reported Xiaomi and Huawei likely will be entering the US market in 2017, it will certainly lead to further erosion of Samsung's US market position.

Upgrade of products cause price decrease rapidly

In 2012, Samsung Galaxy S3 was $949 SGD in may, in 2013, it was only $559 SGD in may. Because Samsung Galaxy S4 was published in 2013, it caused the price decrease rapidly.

Quantity problem

Andrew martonik(2016)reported Samsung Galaxy Note 7 was fires, it need to recall and cancel it. Its battery failures cause phone fired which involved nearly 100 case in USA. Hence, Samsung’s quantity of smart phone need to be attended.

Increasing labor cost

Samsung has many mobile phone manufacturer in China, before it used to manufacture mobile phone by low-cost Chinese labor. Now, China’s living standard is creasing, increasing price cause labor price is no longer cheaper.

Consumers are looking for better products

Consumer’s level has risen already in social model, they are looking for high-tech products, this is the reason why Nokia was eliminated in mobile phone