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Samsung Swot Analysis

In: English and Literature

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In competitive business environment, it is crucial for a business to be aware of internal and external operating factors. There are several strategies to measure these factors and one of them called SWOT analysis. These analyses are based on organization’s strength, weakness, available opportunities and possible threats. Samsung Electronics Co. Ltd is the leading brand in the world. To be a market leader might be easy but to maintain that lead is one of the difficult tasks. (Lee et al. 2015) SWOT analysis on Samsung Electronics would provide insight of the company.
Samsung’s biggest strength is its expenditure on the research and development (R&D) department. Innovation is crucial in technology sector, especially, where companies like Apple, Intel, Microsoft, are operating. In 2015, Samsung spent the second largest amount on R&D which was around US$14.1 billion (Jaruzelski, Schwartz and Staack, 2015). Since 2012, Samsung topped the chart of companies having most patents securing approximately 15000 patents. Interbrand (2015) and Forbes (2015) estimated the Samsung’s brand is worth US$45.3 billion and US$37.9 billion, respectively, making it the 7th most valuable brand in the world. Furthermore, Samsung has adopted vertical integration technique for its smart phones production which has resulted in low cost production. It currently operates in more than 80 countries
Discussing weaknesses, Samsung does have some gaps, such as; there are too many models of smart phones in the market, considering that, there was a decline of 32% in its operating profits. Reason being, different models incur various costs. In 2015, Samsung released 34 new models that are exceeded HTC, Apple and Lenovo. Secondly, the company’s position is a bit vague unlike Apple (Lee et al, 2015). Apple has positioned itself as high-tier Smartphone vendor. Samsung, on the other hand, is trying…...

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