Bussiness Environment

Samsung Company Overview
◦ Samsung, South Korean company that is one of the world‘s largest producers of electronic devices and CEO OF
Samsung is Kim, Ki Nam. The Headquarter of Samsung located at Seoul, South Korea. Head Office Samsung
India Electronics Pvt. Located at Gurgaon, Haryana.
◦ 1960 – Samsung entered into electronics, insurance, securities, broadcasting market
◦ 1961 –Founder of Samsung Mr. Lee launched radio in the market
◦ 1970 – The brand introduced black and white TV 1974 - They launched washing machine and sold 1 Billion
black and white TV
◦ 1980– 1983 – company is able to started with ac and pc production and Samsung Data Systems was establish.
◦ 1990 -1999- develops wireless internet phone
◦ 2000- Samsung‘s Galaxy smartphone series which became the company‘s most-praised product and topped
annual lists of the best-selling smartphones in the world.
◦ 2006 – Samsung with Sony and become global TV market share
◦ 2009- 2017 they launched series of galaxy phone which increase their revenue and market value
◦ 2019 – Trying to launch foldable phone
◦ Financial growth – in 2019 ($300,236 Mil) to Jun. 2019 ($263,864 Mil).
PESTEL ANALYSIS
◦ Political Factor-
◦ Samsung is needs to abide by new and pre-existing governmental operates, the ◦ Social Factor-
political environment is conducive but it has faced political headwinds in India.
◦ Samsung must adapt and tailor its products to these local markets.
◦ It affects the supply chain, business and sales of Samsung.
◦ The socio cultural trends are favorable for Samsung and the brand is investing
◦ It is also a sign of economic stability and within the last five years, most in the smart phone technology.
developed countries where the sales of Samsung phones are high have
remained politically stable. ◦ Samsung operates in a market that is strongly influenced by the lifestyle
preferences of consumers and given the fact that socio cultural factors are
◦ It has resulted in stronger sales and profits for the brand. Samsung undertake different in each country.
political stability, IP laws, corruptions, taxation policy etc of any country before
investing in any country. ◦ culture, belief, attitudes and values that the majority of the population may hold
as a community.
◦ Economic Factor-
◦ Changing socio cultural trends can lead rise in profits and sale.
◦ These are pertain to the economy of the country such as changes in the inflation
rate, the foreign exchange rate, the interest rate, the gross domestic product, and ◦ Samsung would be unable to promote a their phones to the general public if the
the current stage of the economic cycle. majority of the population was a lower class.
◦ A change European economy affected Samsung which decreased revenue by ◦ Samsung should be very careful not to lose the connection to the target market's
16%. interests and priorities.
◦ Increased rate of inflation in US affect as it reserved a large amount of cash.

Samsung remains the leader in the phone manufacturing sector and relies
heavily on phone sales to keep the lights on.
◦ Before investing Samsung consider the rate of GDP, interest rates, exchange
rate, recession etc factor of country.
◦ Technology Factor- ◦ Legal dispute- Samsung has had to face heavy penalties for its alleged
imitation of the Apple‘s iPad and iPhone.
◦ Technology is Samsung‘s biggest strength and the world‘s leading
innovative companies. ◦ Laws and provision- The Consumer Protection, labour laws,
employment and tax related laws, have a negative impact to the
◦ Everything they offer such as phones, television, tablets are all facets of company in India and South Africa.
technology.
◦ Legal factor that company should consider are Intellectual property
◦ Samsung dominate its rivals and competitors as far being the first to laws and other data protection laws, Discrimination laws, Health and
reach the market with its latest products is concerned. safety , quality or reasonable price related laws.
◦ By introducing Galaxy Note 10 is more tablet like than phone like, it ◦ Environment Factor-
mean that you can do you work in the public transport, in the
restaurants, anywhere, without filling intermediated of carrying big ◦ Returned phones are sorted and transported to recycling facilities for
machine scrapping.
◦ Focused on managing water resources risks. ◦ Samsung have some major issue related to environment such are
-Disposal Of Used Or Non-Working Electronic Devices, Pollution
◦ The brand has also enforced a chemical substance management policy. Concern In India, Global Warming –
◦ Preferences To Screen Size –It has created some of the finest and most ◦ The environmental factors that may significantly impact Samsung
attractive designs for their products that its contemporaries cannot include: • The current weather conditions impact the transportation of •
match. technological factors that may influence Samsung are Climate change would render some products useless. • If Samsung harm
technological developments by competitors, impact of the technology endangered species may face consequences from the law and general
on the costs that most companies in the industry etc. public who may boycott.
◦ Legal Factor
◦ STRENGTHS ◦ WEAKNESS
◦ Second biggest Telecommunication Industry ◦ The decline in Smartphone Sales
◦ 34 Research and Development centres for operating ◦ -Heavily dependent on the American Markets
◦ -Award Winning Brand - Samsung has been awarded the CES (Consumer
◦ -Promotions and communications
Electronics Show)
◦ -Ecologically Friendly Innovations -9th in green partner ◦ -Price of some products are low which decrease value in the market
◦ - Stronghold in the Asian Markets ◦ -Time issue -They launch a new phone after another that can cause confusion
to the customers.
◦ - Leading Innovators among Electronics Brands
◦ -Poor creativity in terms of software and steal Apples software ideas
◦ -Design-different features, slim body, different mega pixel camera etc.
◦ -dependence for software from other parts.
◦ - Strong And Effective Marketing Team
◦ -Most of Samsung electronics designs are not user friendly
◦ -Brand Equity and product image
◦ OPPORTUNITIES ◦ THREAT
◦ - Triple Protection Proposition
◦ -Controversies- Its rival Apple filed a lawsuit for patent infringement.-
◦ -HR Management- transformational accomplishments if it invests in its HR
management ◦ -Increased Competition-Competition from opponents especially such as
Xiaomi, Apple, or Huawei,
◦ -Diversification and Acquisitions- needs to expand its customer base to avoid
mistakes and to help reach every customers. ◦ -Legal and Regulatory Threats -Samsung was banned from importing their
products in a Euro Zone
◦ -Target emerging markets-covering more geographical territory and to generate
profits for themselves ◦ -Limited markets – The market is limited and the share of the pie is going to
other premium brands as well.
◦ -Samsung need to open their own stores, where they go to sell only their own
products
◦ -Scope for value addition ◦ -Poor Code of ethics – Strategies such as the low pricing, and market
◦ - Need of Product development penetration strategies have been showcased as unethical
◦ Improve the weak segment or product

PORTER’S FIVE FORCES MODEL
◦Bargaining Power of Customers: High- ◦The exit barriers within the industry are particularly high due to high investment
oSwitch in products such that different phone will displays the bargaining required in capital and assets to operate or due to government regulations and
power or increases the bargaining power of the customers. restrictions which lead to strong rivalry.
oSamsung customers can easily settle for products from other companies ◦Threat of substation products or services- High
including Motorola, HTC, LG, Blackberry, Nokia and Apple Inc. ◦For Samsung, almost any smart phone that performs the same functions is
oFor Samsung Buyers have high levels of bargaining power simply because considered to be a substitute.
the mobile phone industry is so competitive ◦Substitute products available in the marketsuch as Apple, LG, Lenovo, ZTE,
omarket information use used by customers as bargaining power. As Huawei, Xiomi, Vivo, OPPO etc .
competition buyers will be able to choose buyer bargaining power ◦Outside of the smart phone market, the industry threat of substitutes is minimal
increases. ◦The threat of substitutes is high because of the number of clients who are using
phones laptops, tablets and other gadgets to watch different programs, their brand
loyalty may change.
◦Bargaining power of suppliers – Medium
◦Company‘s supply chain includes over 2,700 suppliers in various industries ◦Threats of New Entrants: Low-
across the world. ◦Threat of new entrants is not a major hindrance to the success of Samsung Group.
◦Samsung maintains communication with its suppliers with various ◦Threats of New Entrants in consumer electronics and mobile industry to Samsung is
programs and initiatives such as Shared Growth Day, Supplier Dialogue Fai low because
etc. ◦need massive capital investment
◦The product that these suppliers provide are fairly standardised, less ◦strong advertising and customer service and high Research and Development costs
differentiated and have low switching costs. This makes it easier for buyers ◦distribution channels including distribution centers, wholesales warehouses and
like Samsung Group to switch suppliers. consumer technology sales outlets
◦The government policies within the industry require strict licensing and legal
◦Rivalry among Competing Firms in the Industry: High requirements to be fulfilled before a company can start selling.
◦Internal rivalry in the smart phone industry is high like Apple, Lenovo, ◦In the current economic climate entry in this sector will be almost impossible unless
ZTE, Huawei, Xiomi, Vivo, OPPO etc. are most important competitor of an innovative unique selling point is achieved.
Samsung.
◦Samsung has to ensure to stays on top by carefully analysing its
Competitors.
◦ Samsung try to reduce their prices when demand slackens which makes the
rivalry among existing firms a stronger force.
Conclusion
◦ On the basis of PESTLE analysis, Samsung should be able to thrive in electronic device industry in the next five
years in spite of the challenges because it demonstrates an impressive ability to adapt to a challenging
environment.
◦ Samsung’s research and design capabilities give it an advantage that should propel its revenue growth for
decades to come. Samsung has more opportunities and strengths compared to threats and weaknesses.
◦ company should devise few strategies to address effectively the threats and weaknesses that it recently developed
or has chances of developing.
◦ From the study of porter five forces we get to know Samsung can spread their telecommunication industry well
in India.
◦ The growth of the Samsung Company depends upon the consumer behavior towards the pricing.

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Samsung Company Overview

◦ Increased rate of inflation in US affect as it reserved a large amount of cash.

◦ Improve the weak segment or product

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