Micro Environmental Factors
SWOT Analysis of Samsung – In reality, a SWOT analysis is drawn up for each and every market leader to compete in the market. This reveals that the comparative strengths and weakness of the corporation, its capability for addressing the opportunities and threats. SWOT ensures and reviews four aspects of SWOT analysis. Below figure shows a short explanation of Samsung’s SWOT analysis.
SWOT Analysis of Samsung
Strengths
Samsung is linked to a broad range of products that allow them to influence adequate market share from a diverse market operation. Their wide range of products has given the chance to receive the high rate of return and also widen their failure and risk factors. The company also stands out for holding a prominent market share portion of each and every product. While maintaining a significant market share in every product range is one of their greatest achievements.
Weaknesses
Weaknesses are basically internal limits that might interfere with an organization’s efficiency and ability to achieve its objectives.
Furthermore, Samsung’s major focus is on innovation. However, another important element is that they are not practical for bringing together new products that are essential to remain competitive, particularly when they are competing with Apple. It is observed that Samsung products lack product differentiation.
Samsung has maintained low price range as they want to target a large range of market instead of a niche market with offering low prices; on the other hand, the customer believes that product’s quality is low as compared with other competitors’ product price range.
Another lack is the absence of maintaining software and OS, as this gives a wide range of margins to earn more profit besides brand devotion and product integration.
Opportunities
Opportunities mean companies external factors that the organization may not be able to discover entirely. By developing a diverse range of products compared with their opponents, companies can attain a greater share.
Samsung can improve their customer base through offering to distinguish services to their consumers all around the world.
The company is also responsible for manufacturing application processors for tablets and smartphones. There is a higher demand for such products while maintaining the quality of the product to increase the rate of customer retention.
Threats
The market for smartphones within the developed economies is quite saturated and sales area is not increasing at a faster pace. One major threat to Samsung which they are at present time facing is instant changes and advancement in technology.
This makes them work under pressure and forces them to launch a new range of products within the short time period.
Other factors include breaching patents; Samsung has numerous patents that its opponents are using. In this state, it is quite problematic to search for organizations that can benefit from the company’s technology; on the other hand, they are not ready to pay for the rights to use it.
