SWOT and PESTEL Analysis of Samsung

SWOT and PESTEL Analysis of SamsungSamsung was founded by Lee Byung-chul. In 1938 Samsung was born as a troupe that was dealing with fruit veggie and dried fish. The play along was exporting its harvest-time from southeasterly Korea to Beijing in China. In 1969, Samsung Electronics was born. From in that respect, the company started acquiring and creating different line of products establishments including a hospital, root word manufacturing plant, life insurance company, department stores and galore(postnominal) separates. The company was destined to stimulate a ho drug abusehold name starting in its mother res publica and spanning its reach to many an(prenominal) other cities internationally. http//www.streetdirectory.com/travel_guide/116664/electronics/the_history_of_samsung.htmlIn 1974, electronics started catering to the international merchandise in the seventies kicking off with the corporations acquisition of half of Korea semiconductor which made it the leading electronics reconciler in the country.The success of Samsung as a engine room provider continues to grow through the eighties as Samsung Electronics was unified with Samsung Semiconductors and Telecommunications. This paved the route towards a salutaryer hold on the international commercialize with high-tech products that leave alone become a staple in both home. This development continued on through the next decade as Samsung kept on going beyond its boundaries and restructuring its pargonntage plan to bear the global scene. Adopting a new form of focus proved to be a wise move for the company as its products made their way on the list of top must-haves in their various field. TV-LCDs, picture tubes, Samsung printers and other high-tech products became popular acquisitions due to their high quality. When Samsung ventured into the LCD industry in 1993, it became the humanss best. http//www.streetdirectory.com/travel_guide/116664/electronics/the_history_of_samsung.htmlTo date, Samsung continues to maintain its status as the worlds best technology provider. Its highly adequate workforce is still striving for excellence in their respective fields making the whole company a huge success in the making. The secret to the companys continuous success is in the constant improvement of its management structure and the application of its philosophies We will devote our human resources and technology to piddle superior products and services, thereby contri stilling to a reveal global society. http//www.streetdirectory.com/travel_guide/116664/electronics/the_history_of_samsung.html little ENVIRONMENT ANALYSIS OF SAMSUNGThe aim of this section is to conduct an internal purlieu outline of Samsung which will investigate the milieu in which Samsung operates in. comp unrivalednts of the analysis will be those in which the company has control over, as known as internal environment.Organisation SizeStrengthsSamsung is the second bragging(a)gest telecommunicati on industry in the world through its innovation smart phone.Samsung has wide range of product includes Cell phones, Tables, Tvs Cameras, Home appliances, laptops, etc.Samsung have increase their brand value in this past three to four yearsSamsung is leading in design delivers. For example Samsung was the first one produce dual sort phones, and they have a thinnest and lightest note pad ever.Their design atomic number 18 charismatic and stylish at the result their sales atomic number 18 moving in high volumesWeaknessesTheir prices are low, hence their product injustice value leisurely in the marketThey launch a new phone aft(prenominal) other that slew cause confusion to the customers.Poor creativity in terms of packet, loosely they distract apples software ideasTheir products are not use friendly, as compare to Nokia phonesThey are leading in hardware but they have too much dependence for their software from other split. outdoor(a) ENVIRONMENT ANALYSIS OF SAMSUNGThis section will focus on the macro instruction environment of Samsung and I will explain how the outside(a) factors affect the company by looking in their opportunities and holy terrors similarly go through PESTEL analysis.OpportunitiesSamsung fill to introduce user friendly products and educate their market about their product, because there is a big market in Africa yet the majority is uneducated,hither in south-central Africa they need to open their own stores, where they go to transmit notwithstanding their own productsSamsung could launch no name brand kindred MTN and Vodafone whereby they will take the out date old model, change only a cover and sell with cheaper price.ThreatsLow bell competitors from China buttocks affect SamsungAll Samsung competitors bought their product parts in Chine that bunghole lead a future fall to Samsung.The war between Samsung and orchard apple tree might contaminate the image of SamsungSamsung was banned from importing their products in a Euro Zoneorchard apple tree use Chine to fight SamsungAmalgamation of Apple and Nokia could be a threat to Samsunghttp//www.marketing91.com/swot-analysis-samsung/PESTEL ANALYSISThe PESTEL analysis is an analysis of the external macro environment in n n which an which an organization operates. These are often factors which are beyond the control or influence the business (RapidBi, 2013).PESTEL will be used as a tool to meditate the Macro environment of Samsung.Political environmentLooking at the political environment, how the impact of politics affecting Samsung globally, As much as Samsung is a good company not anybody see like that, due to the strong competition between Apple and Samsung it ended up involving government in other countries. American government trying to stop Samsung influences the Euro zone to evade Samsung to have market around Europe. Specifically in German Samsung was force to withdraw its Galaxy tablet. Also South Korea stops Samsung to operate in there du e to the political differences between Japan and South Korean government.Economic environmentSamsung has expanded its business to more than 58 countries. Samsung mostly they invest heavily to the infrastructure in each end every country they have a business in. Here in South Africa they bought a land whereby they going to build the big plant, whereby it will manufacture or assemble its products for whole Africa, it means there are meshing opportunities coming and there is an opportunity for South African economy. This plant is judge to employ more than 3000 people.Social EnvironmentSocial social movement in South African environment are constantly changing as new innovation technology and services have impact to the take and wants of South African communities. The stats show that there is an increase attraction to the technology which has become the primary means of communication. Samsung find that gaps to improving peoples lives. The argufy is that many people do not know how to use Samsung products in a proper way especially these new tablet phones. People steal need to be educated on how to use these tablets phone that is a challenge of our societies.Technological environmentTechnology in South Africa has improvement and grown rapidly over the years and has affected the way we do things here in South Africa. Technology has change the way the business is done as social media has a crucial role in sustainability strategy of most businesses. Samsung find a way of take a business out of the building structure to the pocket. By introducing Galaxy annotating 2 is more tablet like than phone like, it mean that you can do you work in the public transport, in the restaurants, anywhere, without filling intermediated of carrying big machine.Ecological environmentSamsung Electronics is operating its own voluntary take-back system crosswise Korea (Republic), using a network of 130 of service centers and Anycall Plaza retail outlets (exclusive outlets for Samsungs Anycall brand). End of Life mobile phones are collected either step down of charge, or in some cases with a customer reward. The returned phones are accordingly sorted and transported to recycling facilities for scrapping. They makes an effort to develop environment-friendly product that minimizing an impact to environment through whole process from getting raw materials, production, transportation, usage and end-of-life establishment by adding environment on function, price, quality, design that were the essence for product development, Samsung reportage the recycling amounts for Korea and Japan from 2004, for Europe from 2005, and for the United States from 2006. For 2006, they have forecasted an estimate of volumes they expecting to cycle this year.http//www.samsung.com/us/aboutsamsung/corpcitizenship/environmentsocialreport/environmentsocialreport_VoluntaryPrograms.htmlLegal environmentThe South African government has resolute in April of 2011, the Consumer Protection Act6 8 of 2008 should come in operation. This might have a negative impact to the company like Samsung because they have a angle of dip of dumping their low quality product in third world country to maximize their profit as they did in India. There are strong labour laws in South Africa which might have a strong negative impact to Samsung operating in South Africa as they intend to open a big factory in Johannesburg as a distribution center for Africa it will be a challenge to them if they think they are going to exploit people in South Africa.MARKETING ENVIRONMENTThis section will be focusing on the Marketing Environment in which Samsung operates and I will be evaluating its effects on the new Tablet in term of the competitive in the industry.Industrial ChallengesThis section will be broken into three parts Porters 5 forces, competitive analysis by comparison and industry leaningMichael porters porters cinques forcesPorter five forces analysis is a framework for industry analysis an d business strategy development formed by Michael E. Porter of Harvard pipeline School in 1979. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. attractiveness in this context refers to the overall industry profitability. An unattractive industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching excellent competition, in which available profits for all firms are driven to average profit. http//upload.wikimedia.org/wikipedia/ super acid/6/66/Porters_five_forces.PNGhttp//upload.wikimedia.org/wikipedia/commons/6/66/Porters_five_forces.PNGhttp//upload.wikimedia.org/wikipedia/commons/6/66/Porters_five_forces.PNGThis model will be used to see the Industry Challenges faced by SamsungThe threat of potential new entrants (Low) gamey capital is required to compete in technology indus try. Capital to taint the equipments and capital to carry out the marketing activities and other expenses should be available. However, Microsoft will release its new first Tablet soon, this mean Microsoft will be a new threat to Samsung. Microsoft will lavage on the success of their softwareProduct DifferentiationSo far theres no different on how the market design its software, hence the market hope that Microsoft will turn something new in the market, if not they will not survive in this industry because this only way they can differentiate themselvesEven then, overcoming issues much(prenominal) as customer loyalty and switching costs would be some other large barrier to entry such as Microsoft.The threat of substitutes (High)The threat of substitute products within the industry, however, is low.Even though there is an increased popularity of Tablets, they are busy doing same thing. However Samsung is the one who inventing a new trend that shift from tablet to galaxy phone whi ch it have all feature that tablets has and smart phone features. This is the only direction the market goes.The bargaining business office of buyers (High)Reliability is one of the area the companies should concentrate in, however if an organisation loss its focus on customer wants, it is easy for customer to move to another company. Companies should know how much the customer is will to pay. Buyers easily switch cost with the increased of choices of mobile companies because this products are similar to one another If the company does not beat market, the buyer will switch to those companies that have better features or better price. However Samsung is sitting on top of the game, they unceasingly want to beat the market by releasing designs and they consider their prices they crack cocaine their customers, even now Samsung is the one have a cheaper tablet in the market.Bargaining superpower of supplierSamsung is its own supplier of most components. Samsung also happens to be i ts own supplier for raw materials and they design for themselves. The bargaining power of suppliers is high because suppliers goods are critical to the buyers marketplace success, for example Samsung is a supplier of Apple which is the have a significant role in Apple prices.(The intensity of competitive rivalry (High)The smart phone industry has many competitors that are equally balanced, and thus rivalry is high. The market for smart phones has slowed in growth since its boom, so pressure to take customers from competitors is also high. Differentiation in the smart phone industry is also at a fountainhead where it is very short-lived (Huvard et al, 2011, p.9)