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Situation Analysis for Samsung

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SWOT analysis is a tool which enables the organization to understand its position in the market. Therefore, here are the SWOT Analysis of Samsung to that give an idea of how the company is operating in currently. Strengths Samsung is very advanced technologically. It has heavy assets of technology. It is known for its technologically advanced products such as mobile phone, tablet, TV/audio/video, camera, camcorder, home appliance, pc, peripherals, printer, memory cards and other accessories. Samsung heavily invest in technology, product design and human resource. This is because human resource plays a major role for the success of every organization.

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Samsung Electronics Co., Ltd stands today as the world’s second-largest technology company that produces electronic devices. It is a South Korean conglomerate business

Samsung was also titled as the number one in consumer electronics brand worldwide and is recognized for its evolutionary advancements in digital technology. The company is known to produce equipment that includes telecommunications, electronics, home appliances, and semiconductors. Initially being launched as an analog driven product line, it transitioned into a universally acclaimed pioneer in technological innovation. The tech industry is currently the world’s largest smartphone and mobile phone manufacturer. Currently, it sells over a hundred products of different varieties and models. Its operational branches are present in about 79 countries. Lee Byung-Chul founded Samsung in 1938. It initially started as a trading company until it gradually evolved into an electronics manufacturer in the late 1960s. It employees about 320,671 workers in December of 2017. Through the SWOT analysis of Samsung, it is clear that the company is still a global leader in chip making and smartphone brands. It has always sustained sufficient revenue and profits as it progresses into the future. The primary challenge it has to face is cutting back on its overreliance on the American markets and explore the potential to operate in other markets. It needs to focus mainly on the Asian continent that is developing at an exceeding rate. Its limited customer base in the US is not reliable enough and may lead to limited revenue and profits. That can become a persistent issue for the company. They need to expand internationally and incorporate a new consumer demographic to thrive.

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In every industry, there are always opportunities and threats that a firm may come across in the external environment. There are various opportunities that exist for Samsung in its operations in the global market. One of the opportunities that this firm has had is an expansive and unexploited market in the third world countries (Cheap Samsung phones, 2012). Most of the electronics firms have focused their effort on building a large base of loyal customers in the leading economies like the United States and the European markets. This firm has managed to tap into the emerging markets in African and parts of Asia. The stable economic growth in the major economies means that there is increased opportunity for this firm to increase its sales in such countries as the American markets and the markets in Europe (Cheap Samsung phones, 2012). This growth of the economy means that the consumers will always have enough to spend on luxurious goods such as Samsung Galaxy. There is an interesting trend in the market where this firm is competing with Apple for the market share of the tablets. The emergent of an economically empowered youth around the world is also another opportunity that this firm has been able to exploit (Cheap Samsung phones, 2012). In the IT industry, their main target market is the youth. With an economically empowered youth, this firm can generate a lot of benefits through increased sales. There are threats that exist in this industry that is worth noting. Technology is probably the main threat that this firm faces in this industry. Samsung has used technology to reach its current position. With the world becoming more globalized and digitally oriented, governmental authorities have begun issuing their guidelines which are increasing legal and regulatory threats to companies around the globe

Samsung is no exception to these rules. Laws differ from market to market, and these strict regulations cause a hindrance in operations. Failure to comply could even result in a complete shutdown in the respective market which may be fatal for Samsung.It is one of the few firms that have managed to adapt to the emerging technologies very fast. However, it is a nightmare trying to figure out what some of the competitors can do with this same technology. Another threat that this firm faces is the stiff competition posed by rival firms. This industry is one of the most competitive industries in the world (Samsung mobiles, 2012). Any slight mistake by the firm may result in a situation where its market share is taken over by other rival firms.

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As has been noted, best used by Samsung’s managers as a way of clarify the thought processes that goes into a business decision

The entire SWOT analysis can, and should, make the managers think more deeply and systematically into the business evaluation process. A careful and thoughtful analysis should bring into the balance of Samsung’s advantages and vulnerabilities Recommendation should review and check their marketing strategy, should use just-in-time (JIT) inventory management.

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Cheap Samsung phones. (2012). The history. Web.

Montgomery, A. (2012). Apple and Samsung on the rise in Best Global Brands ranking. Web.

Samsung mobiles. (2012). Samsung history. Web.

Yodhia, A. (2013). Sample of SWOT Analysis: Samsung case. Web.

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