Analysis of Samsung
[Institution’s Name]
Introduction
Marketing is a phenomenon through a product of a company that would have been used to market the products of the company in front of the consumers. It is advised that organizations always prefer those things that bring positive economic expansion and prosperity towards them, and for the same thing, effective decisions could have been taken. It is one of those departments of an organization which analyzes and assesses the financial and strategic position of an organization . The main perspective of this assignment is to analyze the strategic position of the organization through different viewpoints, like SWOT and PEST. The company that has been chosen for the same analysis is “SAMSUNG”. Mention below is the description of the company followed by the analytical framework.
Samsung Group is a South Korean multinational conglomerate company with its headquartering located in Samsung Town, Seoul. The company comprises on numerous subsidiaries, and categorizes with net affiliated businesses and most of them are united under this particular brand in particular. The company Samsung was founded by Lee Byung Chul in the year 1938 as a trading based company . Over the next few decades the group has been diversified into such areas like food processing, textile, securities, insurance and retailing. The group is one of the highest effective groups of the world in terms of earnings. Advertising agency of the company is highly effective and broad, and it is known as the 15th largest advertising agency in terms of revenue recognition by the end of the year 2012.
The group earned net revenue amounting to US$ 268.8 billion in the fiscal year (FY) 2012 with net income provision of US$ 30.1 billion in the same year. The companies currently are more than 472,000 employees working in different parts of the world.
Analytical Framework
According to the SLP, there are two different strategic management tools which have been taken into account, SWOT and PEST
SWOT Analysis of SAMSUNG
Strengths
- The integration of Hardware of the company is perfect with many open sources, Operating Systems (OS) and Software
- Samsung has excellence in engineering and producing the products. Apart from that, excellence in hardware parts and consumer electronics are some other important production units
- The products of the company is highly innovative and effectively designed
- The company has astounding focus over the environment
- Production cost of the company is low leads to high amount of net profit
- The company has the largest share in the mobile phone industry and has 2nd place in the sales of Smart-phones, after Apple
- Ability to market the brand of the company accordingly and effectively
Weaknesses
- Profit Margin of the company is too low
- Patent based infringement
- The main competitors of the company are their largest buyers
- The company shows it’s lacking in making their own OS and Software
- Have a focus over too many products
Opportunities
- India and other developing country’s market of smart phones are increasing
- Advertising industry of Mobile is increasing heavily
- Demand of quality applications and processors are increasing heavily
- Growth of tablet market
- Possibility of Strategic Alliance with big giants of the industry
Threats
- The market of Smart Phones, particularly in the developing markets has now become saturated
- There is a rapid change in technology occurs in countries
- Declining margin on the production of hardware
- Apple’s competition in launching of iTV
- The war of pricing is increasing heavily
PEST Analysis of Samsung
Political
Samsung is currently operating in the technological marker of Korea, who is one of the most highly developed countries of the world. The essence of political issues is low in this particular region; however recent cold war with United States (US) may affect them in the future. Companies that are operating in this particular region are having a great time, like Samsung Group. There is no inner politics found within the company, which is a positive sign from the standpoint of the company
Economical
The economy of North America is still recovering from the financial crisis; however effective decisions have been taken by the government and central bank to overcome on these problems. Samsung generated heavy profits like US$ 268 billion which is showing that the economic capability of the company is more than perfect.
Social
Samsung has not at all engaged in any activity of unethical marketing and any other provision which is against the law of consumers; hence there would be no social issue pertaining to them.
Technological
Technologically, Korea is a high-tech country and Samsung is enjoying by working in this region.
Conclusion
References
Highsmith. (2006). Agile Project Management: Creating Innovative Products. New York: Prentice Hall.
Mike Field, . K. (1998). Project Management. Chicago: Pearson Group.
Chernev, A. (2012) Strategic Marketing Management, 7th edition, New York: McGraw Hill.
D.), W.J.M.(. (1998) Cases in strategic marketing management: an integrated approach, New York: Saga.
Damien McLoughlin, D.A.A. (2010) Strategic Market Management: Global Perspectives, New York: Pearson Group.
David W. Cravens, W.J.M.R.H.W. (1999) Strategic Marketing Management for the Pacific Region, New York : Pearson Group
