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 alliance that was dealing with fruit vegetable and dried fish. The company was exporting its reaping from South Korea to Beijing in China. In 1969, Samsung Electronics was born. From there, the company started acquiring and creating different business establishments including a hospital, paper manufacturing works, life insurance company, discussion section stores and many another(prenominal) others. The company was destined to run short a household name starting in its mother country and spanning its reach to many other cities world-widely. http//www.streetdirectory.com/travel_guide/116664/electronics/the_history_of_samsung.htmlIn 1974, electronics started catering to the international food commercialise in the seventies kicking off with the corporations acquisition of half of Korea Semiconductor which made it the leading electronics manufacturer in the country.The succe eder of Samsung as a technology provider continues to grow through the eighties as Samsung Electronics was merged with Samsung Semiconductors and Telecommunications. This paved the substance towards a stronger hold on the international market with high-tech products that will become a staple in every home. This development continued on through the next decade as Samsung kept on going beyond its boundaries and restructuring its business plan to accommodate the global scene. Adopting a rising form of management proved to be a wise move for the company as its products made their bureau on the list of top must- give ways in their various fields. TV-LCDs, picture tubes, Samsung printers and other high-tech products became habitual acquisitions due to their high quality. When Samsung ventured into the LCD industry in 1993, it became the worlds best. http//www.streetdirectory.com/travel_guide/116664/electronics/the_history_of_samsung.htmlTo date, Samsung continues to maintain its statu s as the worlds best technology provider. Its highly qualified workforce is still stock for excellence in their respective fields making the full-page 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 create superior products and services, thereby contributing to a kick downstairs global society. http//www.streetdirectory.com/travel_guide/116664/electronics/the_history_of_samsung.htmlMICRO ENVIRONMENT ANALYSIS OF SAMSUNGThe aim of this section is to conduct an internal environs compendium of Samsung which will investigate the environment in which Samsung operates in. components of the psycho compendium will be those in which the company has control over, as known as internal environment.Organisation SizeStrengthsSamsung is the second too largegest telecommunication industry in the world throug h its innovation trendy 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 features. For example Samsung was the first one produce dual screen phones, and they have a thinnest and lightest note pad ever.Their design are attractive and stylish at the result their sales are moving in high volumesWeaknessesTheir prices are low, therefrom their product loss value easy in the marketThey launch a new phone after another that can cause admiration to the customers.Poor creativity in terms of software, mostly they steal 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 parts.EXTERNAL ENVIRONMENT ANALYSIS OF SAMSUNGThis section will focus on the Macro environment of Samsung and I will explain how the ext ernal factors affect the company by looking in their opportunities and curses also go through PESTEL analysis.OpportunitiesSamsung get 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,Here in South Africa they need to open their own stores, where they go to sell only their own productsSamsung could launch no name brand like MTN and Vodafone whereby they will cut the out date old model, change only a cover and sell with cheaper price.ThreatsLow cost competitors from China can affect SamsungAll Samsung competitors bought their product parts in Chine that can lead a future fall to Samsung.The war between Samsung and Apple might contaminate the image of SamsungSamsung was verboten from importing their products in a Euro ZoneApple use Chine to fight SamsungAmalgamation of Apple and Nokia could be a bane to Samsunghttp//www.marketing91.com/swot-analysis-samsung/PESTEL ANALYSISThe P ESTEL 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 function the business (RapidBi, 2013).PESTEL will be used as a tool to analyze the Macro environment of Samsung.Political environmentLooking at the governmental environment, how the impact of politics affecting Samsung globally, As much as Samsung is a good company not everybody see like that, due to the strong arguing between Apple and Samsung it ended up involving government in other countries. American government trying to stop Samsung influences the Euro zone to block Samsung to have market around europium. Specifically in German Samsung was forced to withdraw its Galaxy tablet. Also South Korea stops Samsung to operate in there due to the governmental differences between Japan and South Korean government.Economic environmentSamsung has expanded its business to more than 58 countries. Samsung mostly they inve st 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 dream ups there are employment opportunities coming and there is an opportunity for South African economy. This plant is expected to employ more than 3000 people.Social EnvironmentSocial arc in South African environment are constantly changing as new innovation technology and services have impact to the needs 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 challenge 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 environment engine room in South Africa has advance 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 Note 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 packing 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 free of charge, or in some cases with a customer reward. The returned phones are then sorted and transported to recycling fac ilities 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 disposal by adding environment on function, price, quality, design that were the essence for product development, Samsung reporting 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 recycle this year.http//www.samsung.com/us/aboutsamsung/corpcitizenship/environmentsocialreport/environmentsocialreport_VoluntaryPrograms.htmlLegal environmentThe South African government has decided in April of 2011, the Consumer Protection Act68 of 2008 should come in operation. This might have a negative impact to the company like Samsung because they have a tendency of dumping their low quality product in third world country to maximize their profi t 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. merchandise 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 trendMichael porters porters fives forcesPorter five forces analysis is a framework for industry analysis and business strategy development make by Michael E. Porter of Harvard Business School in 1979. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and ther efore drawing card 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 pure competition, in which available profits for all firms are driven to sane profit. http//upload.wikimedia.org/wikipedia/commons/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 analyse the patience Challenges faced by SamsungThe threat of potential new entrants (Low)High capital is required to compete in technology industry. Capital to buy 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 Samsu ng. 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 bring something new in the market, if not they will not survive in this industry because this only way they can discover themselvesEven then, overcoming issues such as customer loyalty and switching costs would be another 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 which it have all feature that tablets has and smart phone features. This is the only direction the market goes.The bargaining power of emptors (High) reliability is one of the area the companies should concentrate in, however if an organisation loss its focu s 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 always want to beat the market by releasing designs and they consider their prices they offer their customers, even now Samsung is the one have a cheaper tablet in the market.Bargaining power of providerSamsung is its own supplier of most components. Samsung also happens to be its 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 intens ity 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 point where it is very short-lived (Huvard et al, 2011, p.9)