Samsung is considered one of the largest producers and manufacturers of electronic devices. The company has addressed the needs of various ranges of products as per the needs of the consumer and current demand and trends within the market. It has been seen that the company is also developing a wide range of digital media devices along with other integrated systems, memory chips and various appliances that would help people or the community in delivering their daily tasks and activities. It is essential to analyse the company's internal and external environment to help identify any potential opportunities or any associated challenges that would help develop the overall strategies. The paper intends to develop both SWOT and PESTLE analysis of the company that would help better understand and gain insights within the paper.
The SWOT analysis is considered an effective approach for analysing both the internal and external environment. It would include multiple parameters such as strengths, weaknesses, opportunities, and threats.
The strengths of the Samsung company would provide the status of the internal environment of the company. The internal strategic factors or approaches are considered the most significant key elements that would help in developing the overall electronic market. Samsung has significant strength as it has dominated the smartphone market. Another strength is that the company would significantly invest in research and development (R&D). There are around 34 R&D on a global basis that would help the company develop a wide range of products and services such as tablets, mobile phones, PC, and any associated digital devices. The company is also considered the award-winning brand as it has accomplished specific benchmarks in meeting the needs of the consumers. The company has a significant and robust hold in the Asian markets, and the most substantial consumer baseline is found in India and China.
It is known that Samsung has invested and diversified its resources in most of the Asian market, the company is still relaying and dependent on the American markets. Any potential recession in the American market would result in a significant adverse impact on the company. The unpredictable economy of American would be jeopardy the operational resources of Samsung. Although it is considered the leading brand in the digital devices market, the decline of sales in smartphones would be considered a production loss to the company. The price sensitivity has impacted the lower rate of sales for smartphones in the market. The heredity of leadership is popular as the leaders are within the three generations of the family; it is essential to understand that although it would provide stability within the business, it is still essential to provide fresh ideas regarding the Samsung market.
Since people are more dependent on electronic devices, the company have significant potential growth in the digital market. The company is preparing to launch new devices such as the ‘Triple Protection proposition’ AC device. It would provide the larger target customers that would help in maximising the overall customer retention. The company already has an existing brand image and brand value; therefore, they can launch products or diversify their products and services that would help gain more opportunities. The diversification, as well as acquisitions, would also be an excellent opportunity for the company to expand their marketplace and gain a more significant consumer baseline and segments. Introducing and developing innovative products would also help generate the trends and increase the overall sales in the market. Some examples of innovative products such as foldable phones have generated trends and have increased sales. The 5G technology implementation would also create an opportunity for the company as it is also considered one of the top lists within the potential 5G providers.
The threats are something that would provide the challenges within the external environment. It has been found that many controversies are available that includes that the company is involving in patent infringement. For instance, the rival company Apple has filed a lawsuit that the company has copied the company and paid around $1.049 billion to Apple for such damage. It has damaged the reputation and sales of Samsung. The legal, as well as regulatory threats are always considered as the major key elements that may impact the company. It is essential to develop the overall hindrance within the operation that would be effective in the respective market. The uncertainty of the economy would also result in the decline of the market segments. The continual rise of counterfeiting would also be a significant threat to the company in managing its reputation and overall image.
PESTLE Analysis is considered the significant marketing principle that would help track the environment and operating approach that would help the company launch any new project or products along with services. It is considered the framework that would help develop the overall environment from multiple angles and develop adequate planning and ideas. It would stand for Political, Economic, Social, Technology, Legal and Environment.
The political factors analysed the overall political stability that would help in the welfare of the company. In many countries of Asia, such as India, the company is not facing any political issue of being a foreign marketer. However, it has been observed that political elements have been found in Africa and Latin American countries. The company is operating in multiple countries, and the permissions and other political factors such as changes in policies for operating business would impact the company.
The economic factor is essential as the company is operating in the international business and market. The uncertainties would result in a poor outcome as it would have a direct impact on the business. The changes in the US monetary policy, constant fluctuation, higher volatility, along with another emergence of stock markets, have resulted in a poor impact on the overall business of Samsung company. The reduced bargaining power of buyers in multiple or various countries would have an adverse impact on the company. The launch of the foldable phone (Samsung Galaxy Fold) has resulted in poor outcomes in the market, and it has resulted in a decrease in the overall economic standards.
As the company is considered a global brand, and it is based on the significant culture of South Korea. The Yong family of south Korea runs the company. The company is still doing great in the foreign market in the international business that would help in the overall country. The company is gaining greater acceptance in the world that would have a significant impact in multiple countries. The operational activities of the company would have met the overall global customers in the consumer segments. The company is developing the overall approaches in scanning and detecting the customers' ultimate customer segments and tastes. A certain region of the globe would have a more significant impact on the overall market. It would develop the overall execution in the market that would analyse the overall acceptance in the world.
Samsung’s business environment would result in developing the more significant and more extensive technology within the planet. The company is already focused on developing and manufacturing electronic devices. They are considered as the pioneers that would be effective in developing the groundbreaking in multiple technologies. The Samsung products, as well as excellent services, would be effective in developing the optimal sales support within the company. The company believes in aggressive innovations that are also considered the most effective attributes and elements developed in the success.
The company is often found in many controversies that have often resulted in multiple legal issues and concerns. It has been found that there are headlines along with multiple allegations and controversies that have resulted in series of penalties for the company. Multiple allegations from the rival companies and issues of copying the patent have resulted in a poor outcome.
The company has been active in enhancing the environment, such as reducing the overall greenhouse gasses and developing the most prominent and influential threat for extinction that would have significant mass pollution within the environment resources.
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