S STRENGTH

W WEAKNESS
SAMSUNG
ELECTRONICS
O OPPORTUNITY

T THREATS
EARLY HISTORY 2000-present
YEARS
Samsung was founded as a grocery
trading store on March 1, 1938,
by Lee Byung-Chull. He started his
1980-2000
business in Taegu, Korea, In 1980, Samsung entered
trading noodles and other goods
produced in and around the city and
1960-1980 the telecommunications
hardware industry. The company also developed the
exporting them to China and its Samsung first entered the In 1982, Samsung Printing first speech-recognition phone in
provinces. (The company name, electronics industry in 1969 Solutions was founded. 2005.
Samsung, came from the Korean for with several In 1987, founder Lee In the late 2000s and early 2010s,
“three stars.” electronics-focused Byung-chul passed away, Samsung acquired companies that
divisions. Their first and his son, Lee Kun-hee, developed technologies for electronic
products were assumed control of devices. In 2011, Samsung released
black-and-white televisions. Samsung. the Galaxy S II, followed in 2012 by
During the 1970s the the Galaxy S III, one of the world's
company began to export most popular smartphones.
home electronics products In 2014, Samsung announced the Gear
overseas. VR, a virtual reality device developed
for use with the Galaxy Note 4.
In 2017, Samsung was given
governmental permission to test a
self-driving car.
INDUSTRY OVERVIEW
Samsung, South Korean company that is one of the world’s
largest producers of electronic devices.

Samsung specializes in
the production of a wide
variety of consumer and
industry electronics,
including appliances,
digital media
devices, semiconductors,
memory chips,
and integrated systems.
INDUSTRY OVERVIEW
APPLE PANASONIC
Founded in 1976 Founded in 1918
CORPORATION
ELECTROLUX
LG Founded in 1919
Founded in 1958
ELECTRONICS

SONY INTEL
Founded in 1946 Founded in 1968

HCT WHIRLPOOL
Founded in 1997 Founded in 1911

HUAWEI LENOVO GROUP

Founded in 1987 Founded in 1984
TECHNOLOGIES LIMITED
SWOT ANALYSIS

STRENGT WEAKNESSE
HS

S
✔ S

W
BRAND IMAGE
✔ HIGH PRICE
✔ GLOBAL AVAILABILITY
✔ BRAND CONNECTION
✔ STRATEGIC PARTNERSHIP
STRATEGY
✔ R and D
✔ DROP-IN PROFIT
✔ VARIETY OF PRODUCTS
✔ DEPENDENCE ON
AMERICAN MARKET

OPPORTUNIT THREA
IES TS

O T
✔ NEW MARKETS ✔ IMPACT OF PANDEMIC
✔ MARKET DEVELOPMENT ✔ GOVERNMENT REGULATION
✔ BUSINESS DIVERSIFICATION
✔ STRONG COMPETITORS
✔ INNOVATION
✔ 5G TECHNOLOGY ✔ SCANDALS
 BRAND IMAGE STRENGTH

Samsung Electronics Co. Ltd is a renowned brand throughout the

world. According to the famous Forbes Magazine, 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
BRAND IMAGE STRENGTH
BASED ON SAMSUNG
NEWSROOM

BEST GLOBAL
BRANDS
The company has been
recording consistent
growth in terms of brand
value since starting in 43rd
43rd 9th 6th 5th
place in 2000 when
Interbrand began
publishing the Best Global
h h
Brands.
2021
On October 20, Samsung
ranked fifth with a brand
value of USD 74.6 billion,
a 20% increase compared
to last year.
2000 2012 2016 2020
BEST GLOBAL BRANDS
 BRAND IMAGE STRENGTH
BRAND VALUE IN USD

56.2B 59.9B 61.1B 62.3B 74.6B

6 2017 9%↑

6 2018 6.5%↑

6 2019 2%↑

5 2020 2%↑

5 2021 20%↑
GLOBAL AVAILABILITY STRENGTH

Samsung has been very

successful in the field of
smartphones. In the first quarter
of 2020, the company was
dominating the global
marketplace with an 18.5%
share.

The Galaxy series of Samsung smartphones are very

popular. As Samsung strongly holds the Asian market,
especially China and India, the huge population of these two
countries is adding a good amount of revenue for the
company.
 GLOBAL AVAILABILITY STRENGTH
Global Smartphone Shipments
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Brands
2020 2020 2020 2020 2021 2021 2021 2021

Apple 40.0 37.5 41.7 81.9 59.5 48.9 48.0 81.5

Samsung 58.6 54.2 80.4 62.5 76.6 57.6 69.3 69.0

Xiaomi 29.7 26.5 46.5 43.0 48.5 52.5 44.4 45.0

OPPO* 22.3 24.5 31.0 34.0 38.0 33.6 38.1 33.9

vivo 21.6 22.5 31.0 33.4 35.5 32.5 33.7 29.3

Others 122.8 110.9 135.0 139.8 96.8 98.0 108.5 112.7

Total
295.0 276.1 365.6 394.6 354.9 323.1 342.0 371.4
Market

Its brand value has broken the US$100 billion mark for the first time, up
9% to US$102.6 billion, as it retains title of Asia’s most valuable brand.
MARKET SHARE 2021 STRENGTH

22% 20%
18% 19%

Q1 2021 Q2 2021 Q3 2021 Q4 2021

APPLE 17% APPLE 15% APPLE 14% APPLE 22%

XIAOMI XIAOMI XIAOMI XIAOMI
14%11%
OPPO 16%10%
OPPO 13%11%
OPPO 12%9%
OPPO
STRATEGIC PARTNERSHIP STRENGTH
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
electronics quality.
For example, Spotify has a non-exclusive agreement with
Samsung that allows users to use Spotify as an
integrated music streaming service.
 RESEARCH AND STRENGTH
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.
VARIETY PRODUCTS STRENGTH

Samsung is a known electronics

firm, Samsung also produces and
sells semiconductor components
including LCD panels memory and
SIM chip, and other components
to different manufacturers that are
notable.
Therefore, the company is able to continue to expand in
different ways. Additionally, Samsung is very successful
in all the kinds of products it makes, from televisions to
refrigerators and smartphones.
 WEAKNESSES

01 High price

Brand connection strategy 02

03 Drop-in profit

Dependence on the
American market
04
 HIGH PRICE WEAKNESSES

To maintain the high quality of

its products, Samsung
products has always been high
priced. Its competitors like
Apple, Huawei, and Xiaomi are
trying to outperform each
other by improving quality and
price range.
Samsung should focus on
balancing quality and finances
so that they can cope up and
survive in this immense
competition.
BRAND CONNECTION WEAKNESSES
STRATEGY
The world is changing rapidly.
So, it is high time, Samsung
changed its strategies to cope
with it. Its traditional branding
and communication methods
need a revolution.
It needs to change not only the
messages, but also the media.
Social branding plays an
important role in this case. If
Samsung is adamant about not
changing these customs, it will
cost them heavily in the future.
 DROP IN PROFIT WEAKNESSES

Since 2017, the sales of

smartphones have been declining
in the covid-19 pandemic and the
company has observed a fall in its
profit since then. The lack of
safety in Samsung smartphones
also contributed to this loss.
Many smartphones of the
Samsung Galaxy Note 7 series
showed overheating batteries
leading to an explosion. At the
same time, some refrigerators
and washing machines were
reported to start firing.
 DEPENDENCE ON WEAKNESSES
AMERICAN MARKET
Though Samsung has
diversified its products,
resources, and market, it is still
highly dependent on the
American market. Roughly
70% of its smartphones are
sold in the US.
But as the American economy
is very unpredictable, it can
not only cause damage to
Samsung’s sales but also can
jeopardize its total
infrastructure.
 NEW MARKETS OPPORTUNITY

As the government has

agreed to lend a hand to the
economic development there
are new markets in the
making. This will help
Samsung broaden its already
wide horizon of business.
MARKET DEVELOPMENT OPPORTUNITY

This strategy focuses on

entering new markets with
existing products or services.
The business can enter other
markets using the direct
export strategy, licensing,
franchising, foreign direct
investment etc.
MARKET DEVELOPMENT OPPORTUNITY
BUSINESS DIVERSIFICATION OPPORTUNITY
Even though Samsung
has plenty of products to
sell, there are many new
products that it could
launch. So this so this
will be advantageous for
the company.
Business diversification can get people more
interested and invested in the company. This will
work as publicity and raise the profit.
 OPPORTUNITY
WHAT IS DIVERSIFICATION?
A strategy which focuses on entering newer
markets by introducing new products to these
markers.
 OPPORTUNITY
SAMSUNG’S
DIVERSIFICATION
 INNOVATION OPPORTUNITY

The research and development team of

Samsung is always working hard to
come up with innovative ideas. The
company can use this opportunity to
control the marketplace by developing
dynamic products like the recently
launched "Foldable Phone".

If the trend can be created and quality can be enhanced, Samsung

can easily triumph over other manufacturers.
5G TECHNOLOGY OPPORTUNITY

As the world moves to 5G,

Samsung has the capacity and
know-how to exploit this
opportunity. The company is
already in active commercial
discussions with operators in the
EU to supply 5G and 6G network
equipment.
Samsung is one of the top companies in the UK’s list of
potential 5G providers.
 IMPACT OF PANDEMIC THREATS
Samsung is one of the leading
companies in the consumer goods
department. Even though this
pandemic has failed to make any big
impact on the sales figure, that does
not mean that the magnitude of the
situation is any less.

This pandemic has affected the

manufacturing, distribution, and
purchasing of Samsung products.
This has fueled major changes in
Samsung’s business strategies.
SAMSUNG’S RESPONSE TO
THREATS
THE ON GOING PANDEMIC

• They support the Global workforce

We have established regional response teams around
the world to provide our employees with resources and updates
on the latest guidelines from health authorities.

• Enhancement of online support for

valued costumers
We are here to support you online at
Samsung.com with round-the-clock customer care.
GOVERNMENT REGULATION THREATS

The rules and

regulations that the
government imposes
may be a major threat
for Samsung, especially
if it does not abide by its
profit-based agenda.
 THREATS
Federal Communications
Commission (FCC)
The Federal Communications
Commission is an independent
agency of the United States federal
government that regulates
communications by radio,
television, wire, satellite, and cable
across the United States.
 THREATS
JOB of FCC
• Testing and evaluating electronic product
radiation.
The FCC sets limits on the emissions of radio frequency
energy by cell phones

• Making available scientific information on

the nature and extent of the hazards and
control of electronic product radiation.
FDA provides information for the public about the radio
frequency energy emitted by cell phones.
 STRONG COMPETITORS THREATS

Though, the main competitor of

Samsung is Apple. But newer
Chinese brands like Xiaomi and
Huawei are rapidly progressing in
the marketplace. These new
companies are manufacturing and
selling smartphones at a much
cheaper price than Samsung which
may become a matter of concern.
On the contrary, though Apple is not providing cheaper products,
its marketing policy is trying to make a better impression on the
market than Samsung.
 SCANDAL THREATS

The president of the company was found guilty of

bribing the government which caused his
imprisonment for about a year. Also, since its
founding, Samsung has always been under the
leadership of the founding family members.
But many scandals of these leaders have shown up
which could really break the image of the company
and for which the president of the company has
publicly announced about not handing over the
leadership to his children in 2020.