Introduction
Samsung Electronics is a multinational company who has had success in the business sector. Its headquarters are in Southern Korea (Samsung Electronics Co., Ltd. SWOT Analysis, 2015). Therefore, the company has provided various threats, weaknesses, and opportunities.
Strengths of the Samsung Company
Samsung has various strengths that are the cause of its success. The first is that it enjoys the largest product portfolio range (Samsung Electronics Co., Ltd. SWOT Analysis, 2014). For example, it sells electronics such as smartphones, cameras, air- conditioners, memory cards, and other accessories. The second strength is that the firm holds first market share in most of the categories of the products it sells. In addition to that, Samsung has been defined as the number 2 regarding market shares in the mobile phones niche (Samsung Electronics Co., Ltd, 2017). For instance, the firm has captured the Nokia market share through the superiority in the invention of smartphones. Samsung has also been defined as the company with the best design feature and technology in its products.
The company is the first firm to introduce dual screen mobile phones and the first mobiles with a polyphonic ringtone (Samsung Electronics Co., Ltd. SWOT Analysis, 2015). The Samsung Electronics Company has enjoyed the early mover advantage with regards to introducing advanced features in refrigerators and air conditioners. The company also has strength since there has been an 80% increase in brand value from 2016 to 2018.
Weaknesses of Samsung Company
Just like any company, The Samsung Electronics Company has various shortcomings. The first is that due to its launching of different series of smartphones, cannibalization has been present. Moreover, there is an expected decline in LCD demand in future (Samsung Electronics Co., Ltd. SWOT Analysis, 2014). The third weakness of the multinational company is that despite it having produced its brand, the world still thinks that Nokia is the best regarding being reliable and having a high resale value.
Additionally, there has been a reduction in sales dues to the focus of the Chinese products on the economies of scale (Samsung Electronics Co., Ltd. SWOT Analysis, 2015). The other weakness of the corporation is that despite it being a hardware leader, there is too much dependence on software from others. Nevertheless, online stores sell more extensive products, and since there are better deals than the stores, they do not incur distribution costs.
Opportunities of the Samsung Multinational Company
The Samsung Company offers various opportunities. Firstly, it has a plan to strengthen the air- condition product and enact a unique technology in it known as the” Triple Protection Proposition.” In India, the company has also been defined as the ‘Olympic partner.’ For example, in the 2012 Olympics that were in London, the company took part as the ‘Olympic partner’ (Samsung Electronics Co., Ltd. SWOT Analysis, 2015). Recently, the firm launched a program to enhance its brand awareness and increase sales. The program is known as ‘Olympic Rana Program.’
The company also has plans of launching some of the customized products for the Indian market. Then customized products will include Samsung Mobile and home appliances. This will, therefore, improve the company’s market share in the rural market (Samsung Electronics Co., Ltd. SWOT Analysis, 2014). The other opportunity of the firm is that the Indian population has grown, and the sales of the phones are expected to rise due to the decreased call rates.
Threats of the Samsung Company
Some of the threats that the firm faces are that the Nokia Company has grown to be stronger, and it has become the company’s main competitor. In addition to that, Samsung has had a wide variety of product lines, and if one of them fails it will affect the others, and this leads to brand dilution (Samsung Electronics Co., Ltd, 2017). Entry of foreign players in India is expected since it is a potential market, and the Samsung Company may lose India as a potential market. Nonetheless, the firm faces a threat from Chinese products.
Conclusion
It is evident that the Samsung Company has various strengths, threats, opportunities and weaknesses and they have helped the company to grow as the number two multinational company in the world.
References
Samsung Electronics Co., Ltd. SWOT Analysis. (2015). Samsung Electronics Co., Ltd. SWOT Analysis, 1-9.
Samsung Electronics Co., Ltd. SWOT Analysis. (2014). Samsung Electronics Co., Ltd. SWOT Analysis, 1-9.
Samsung Electronics Co., Ltd. (2017). Samsung Electronics Co., Ltd. SWOT Analysis, 1-8.
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