Samsung SWOT Analysis - SWOT PDF

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SAMSUNG SWOT ANALYSISStrengths, weaknesses, potential, and dangers are all internal factors in Samsung's SWOT analysis. Samsung SWOT Analysis analyses the brand supported its strengths and weaknesses and opportunities and threats. Samsung is one of the highest companies within the IT & Technolog...

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SAMSUNG SWOT ANALYSIS Strengths, weaknesses, potential, and dangers are all internal factors in Samsung's SWOT analysis. Samsung SWOT Analysis analyses the brand supported its strengths and weaknesses and opportunities and threats. Samsung is one of the highest companies within the IT & Technology sector, which uses SWOT Analysis as a tool to live its performance against its competitors.

Here may be a summary of the Samsung SWOT (Strengths and weaknesses, Opportunities, Threats) and also the most prominent Samsung competitors, similarly as its markets, positioning, and Unique Proposition (USP).

Strengths of Samsung In SWOT Analysis

Many strengths within Samsung will allow it to succeed in its primary field. A Samsung SWOT analysis will help identify these strengths. Here are a few examples: 

Logo Image Samsung Electronics. Ltd. has become one of the world's most recognizable brands; according to Forbes Magazine, Samsung has been ranked 8th among the world's top brands for 2020. As a result of its strong brand value, Samsung can reach and connect with its customers more easily.

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The strong dominance of smartphone manufacturing: The Galaxy Series of Samsung smartphones is known all around the world due to Samsung's tremendous success in the area of smartphones. Samsung's share of the market in the first quarter of 2020 was 18.5 percent. The significant number of people living in China and India, where Samsung is a major player in the Asian market, generates a large amount of income for Samsung.

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Worldwide availability of the product: The chances of Samsung products being readily available are high around the world. Despite the global pandemic, Samsung sold digital products in 74 countries, owing to its 230 global bases and over 287K employees.

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Strategic Partnerships: Samsung can increase their revenue by developing partnerships with companies that develop software and online. This allows the company to utilize greater functionality from developers, improving their electronic

quality as a result. With Spotify, customers can use Spotify as an integral audio streaming platform, using a non-exclusive agreement. 

For research and development, Samsung has always been a leader, not only in terms of ensuring the success of its business but also making sure its customers receive high-quality products. As the company's financial statements show, it spent more than 17 billion dollars on research and development last year, which is great and impressive.

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Samsung is an electronics firm that produces a variety of products, and it sells several different semiconductor components including LCD panels, memory, and SIM chips, as well as other components to various manufacturers. In this way, the company can continue to expand in different ways. Furthermore, Samsung's products are very successful across all kinds of products, including televisions, refrigerators, and smartphones.

Weaknesses of Samsung in SWOT Analysis

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Highly dependent on American Markets – It is believed that Apple and Samsung accounted for at least 70.8 percent of the smartphone market in the United States. Although Samsung has expanded into Asia and diversified its offerings, the company still relies largely on American markets. Its revenue and operating resources could be threatened by a potential recession in the American economy. Therefore, Samsung needs to be both involved in the Asian and European markets if it is to remain competitive and avoid catastrophe in the aftermath of a collapse in the US economy.

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The decline in Smartphone Revenues - The sales of Samsung smartphones have risen since 2017. Chinese markets have similar characteristics to US markets in terms of price sensitivity and consumer trends. Sales of Samsung products in the Indian market are negatively impacted by the company's relatively low prices. The company has yet to see any significant results from its efforts to target India.

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Product Failings - A product that threatens consumers' lives undermines consumer confidence and business confidence. Samsung has been presenting consumers with faulty products, including the Samsung Galaxy A20e that exploded and a foldable phone that malfunctioned.

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Dependence on low-end smartphones - Samsung's revenue is largely derived from sales of lower-end smartphones. This category has been affected by recent events much more than premium smartphones, and recent events contributed to the company's decline from the 71 million smartphones sold and 19.1 percent share during Q1 this year to just 55 million smartphones sold in Q1 2020, with 18.5 percent share of the market (according to Gartner).

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Family Leadership - For the past three generations, Samsung has been directed by families. Samsung has remained stable for a long time under the leadership of the same family, but can easily stagnate due to lack of innovation. The Samsung heir has pledged to stop the dynastic succession after being plagued with several allegations.

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Bribery Scandal in 2015, Due to the revelation that Samsung's head used bribes to facilitate a merger in South Korea, Samsung's reputation was tainted. After being found guilty, the president was sentenced to prison for a year, which ended in February. South Korea and the rest of the world have lost trust among consumers due to what happened in 2018.

Opportunities for Samsung in SWOT Analysis

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Samsung is a globally recognised brand. A company has to focus on marketing its brand to gain a competitive advantage in important markets. Utilizing social media and digital marketing, Samsung can increase customer engagement worldwide. Samsung should focus on digital marketing, along with research, to maintain its position as a leader in the market.

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HR Management: Increasing the strategic management of HR is another important aspect on which the company should focus to enhance its competitive advantage all around. Samsung is primarily a technology company that devotes a great deal of time and resources to research and development. However, it must pay attention to HR management so it can maintain and strengthen its leadership in the market over the long run.

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Diversification and acquisitions: Samsung's strong position in the market is due to its broad product line-up. By diversifying into related industries, Samsung can increase its market share. Through backward integration, Samsung can reduce operational costs.

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Consumer electronics companies and smartphone makers consider China to be an important market. China has grown rapidly since becoming the world's second-largest market. As a result of the coronavirus, the economy is currently under stress. Nevertheless, once the market recovers, it won't take long before it begins to grow again. However, Samsung's share in China has been decreasing. The Chinese consumer market for smartphones has been shrinking for several years. This is one reason why Samsung should focus more on China and how it markets its products there.

Threats to Samsung in SWOT Analysis

Without a threat analysis, a SWOT analysis is incomplete. Samsung's SWOT analysis will identify the challenges facing this community that keep it from progressing. 

Pandemics are on the rise right now. Samsung is one of the most well-known companies in the consumer goods industry. While the outbreak hasn't had a significant impact on sales, that doesn't mean it hasn't had an impact. The pandemic has had an impact on Samsung product manufacturing, distribution, and purchase. This has resulted in significant changes to Samsung's business strategy.

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Government regulation: In particular, if Samsung fails to adhere to its profit-driven strategy, the rules and regulations enforced by the government could pose a significant threat.

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Strong, Competitive Competitors: Samsung's main competitor will be Apple. New Chinese brands like Xiaomi and Huawei, however, are quickly winning market share. Samsung is facing competition from companies such as these that produce and sell smartphones at much lower prices. Nevertheless, even though Apple does not offer lower-cost products, its marketing strategy is designed to give it a competitive edge against Samsung.

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Investigations: The president of Samsung has been imprisoned for about a year after he was found guilty of bribing the government. A member of Samsung's founders' family has often controlled the company since its inception. Although Samsung has been embroiled in many scandals involving its top executives, the CEO has announced that he won't be passing the helm of the company to his children in 2020 because of these scandals.

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