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Samsung SWOT Analysis In A Nutshell

Samsung was founded in South Korea in 1938 by Lee Byung-Chul. Originally a trading company, it took Samsung 22 years to become the fully-fledged electronics company that most people recognize today. Indeed, the company is a leader in technological innovation through telecommunications, electronics, and home appliances.

This SWOT analysis will detail how Samsung became such a leader and what the future may look like for this company.

Strengths

  1. Large, global market share – Samsung has a global TV market share of 30% and has led the market in sales for the past 14 years. Samsung also enjoys just under a quarter of the global markets for smartphones and tablets.
  2. Research and development – Samsung is the second-largest patent holder in the United States, submitting 5072 patents to the US Patent and Trade Office in 2015 alone. Samsung also possesses 36 R&D centers around the world which allows it to be an innovator and leader in consumer electronics.
  3. Brand value – Forbes rated Samsung as the 10th most valuable brand in the world. High brand value is positively correlated with consumer loyalty and is important for the long-term growth of a company.

Weaknesses

  1. Dependence – since Samsung has not developed an operating system of their own, they are dependent on the Google-owned Android. This impacts on consumer loyalty as many who are loyal to Apple operating systems will not buy from Samsung. Samsung is also heavily dependent on the North American market for revenue in general.
  2. Product safety issues – Samsung has experienced several safety issues with their products. For example, the Galaxy Note 7 suffered from overheated batteries which exploded in some instances. Samsung washing machines and refrigerators have also been recalled in recent years for starting fires.
  3. Shrinking market share – with the proliferation of cheaper smartphones manufactured by Huawei, Samsung has lost valuable market share in emerging economies such as China where the potential for expansion was high.

Opportunities

  1. Expansion – Samsung has a strong presence in India, one of the least penetrated smartphone markets in Asia. Provided that the company creates a product that is suitably priced, there is an opportunity for growth and expansion. Samsung is also a market leader in South Africa which is also experiencing a surge in demand.
  2. Processor demand – since there is a growing demand for smartphone and tablet processors, Samsung is well placed to meet this demand as one of the key manufacturers of processor technology. In fact, the tablet market is predicted to grow in double digits over the next few years.
  3. Digital marketing focus – although Samsung is a globally recognized brand, it does not have the brand equity or popular culture history of competitor Apple. Concerted efforts toward digital and social media marketing, particularly in North America, could help the brand immensely with driving consumer engagement and increased revenue.

Threats

  1. Android operating system – irrespective of the quality of Samsung products, their Android operating systems are not as popular among average users as iOS. There is a threat that tying devices to Android might have long term negative implications for Samsung.
  2. Competition – rival Apple represents the biggest threat to Samsung’s market share. Apple successfully filed a lawsuit against Samsung after the company was ruled to have blatantly copied the design of the iPhone. There is also the possibility that Apple starts manufacturing televisions and other home electronics in a market that Samsung has traditionally dominated.
  3. Coronavirus – with the global pandemic heavily impacting Samsung’s biggest market in the United States and also their global supply chains, sales and revenue could take a large hit in the second half of 2020.

SWOT Analysis Case Studies

McDonald’s SWOT Analysis

mcdonalds-swot-analysis

Nike SWOT Analysis

nike-swot-analysis

Samsung SWOT Analysis

microsoft-swot-analysis
Samsung was founded in South Korea in 1938 by Lee Byung-Chul. Originally a trading company, it took Samsung 22 years to become the fully-fledged electronics company that most people recognize today. Indeed, the company is a leader in technological innovation through telecommunications, electronics, and home appliances.

Costco SWOT Analysis

costco-swot-analysis
Costco is a large American multinational corporation with a focus on low-cost, membership-only retail warehouse clubs. Costco is the 4th largest retail operator in the world, operating 785 warehouses in 10 different countries. Indeed, it has enjoyed rapid success growing from zero to $3 billion in sales within six years.

Walmart SWOT Analysis

walmart-swot-analysis
From humble beginnings just over 50 years ago, Walmart has grown to become the world’s largest retail company. A single small discount store in Arkansas has now expanded to over 11,000 stores in 28 countries. Some reports suggest that the company now makes $1.8 million of profit every hour.

Uber SWOT Analysis

uber-swot-analysis
Headquartered in San Francisco, California, Uber started as a peer-to-peer ridesharing platform. In more recent times, the company has moved into food delivery, rental cars, and bike-sharing. In one form or another, Uber now has a presence in over 900 cities worldwide.

Disney SWOT Analysis

disney-swot-analysis
It would be hard to argue the case for a more recognizable entertainment brand than Disney. Disney is of course synonymous with Walt Disney, but it was Walt and his brother Roy who started the company in 1923 in Burbank, California. Disney content is now broadcast on over 100 channels in 34 different languages across the globe.

Coca-Cola SWOT Analysis

coca-cola-swot-analysis
Coca-Cola is the market leader of the soft drink industry. It is also the most widely recognized brand, with a Business Insider study revealing that a staggering 94% of the world population recognizes the red and white logo. However, Coca-Cola faces significant challenges with increasingly health-conscious consumers and less access to water resources.

Ford SWOT Analysis

ford-swot-analysis
Founded in 1903 by Henry Ford and is the fifth-largest family-owned company in the world. Ford is a globally recognized brand in the automotive industry for a couple of reasons. First, Henry Ford is well-known as the inventor of the production line and thus the modern automobile industry. Today, Ford has also maintained relevance as the seventh-largest car manufacturer worldwide, selling a range of passenger cars, trucks, and vans.

Tesco SWOT Analysis

tesco-swot-analysis
Tesco was founded in 1919 by Jack Cohen, as a small group of market stalls. After rapid expansion in the following years, the company became the largest retailer in the UK and is now the second-largest in the world. To put their dominance into perspective, consider that Tesco serves around 66 shoppers per second across 7000 retails stores, delivering approximately $180,000 worth of sales every minute.

Nestlé SWOT Analysis

nestle-swot-analysis
Nestlé is a large multinational food and beverage manufacturer with more than 2000 brands spread across 197 countries. Some of Nestlé’s well-known brands include Nescafe, Kit-Kat, Purina, Aero, Butterfinger, Maggi, and Haagen-Dazs. Originally a producer of infant food in 1867, it is now considered to be the world’s largest food manufacturer.

Amazon SWOT Analysis

amazon-swot-analysis
Amazon is among the most diversified business model in the tech industry. The company is well-positioned to dominate e-commerce further. And while its online stores have tight profit margins, Amazon still unlocks cash for growth, while consolidating its dominance in the cloud and grabbing new opportunities like voice.

Facebook SWOT Analysis

facebook-swot-analysis
Facebook, with its products, with its strong appeal, and consumer brand has a solid business model, threatened in the last years by privacy concerns, which open up the way to potential regulation to break up the company. If that will not happen, Facebook will have the chance to expand to define other markets like VR.

Starbucks SWOT Analysis

swot-analysis-of-starbucks
Starbucks is a global consumer brand with direct distribution, recognized brands, and products that make it a viable business. Its reliance on the Americas as a primary operating segment makes it a weakness. At the same time, Starbucks faces risks related to coffee beans price volatility. Yet the company still has global expansion opportunities.

Tesla SWOT Analysis

tesla-swot-analysis
Among the most recognized car manufacturers, Tesla is valued more than the combined market capitalization of GM and Ford. While the company’s direct distribution is a strength, its lack of financial viability is a weakness. Competition is a future threat. However, if Tesla defines a new market for car manufacturing its potential growth will be massive.

Netflix SWOT Analysis

netflix-swot-analysis
Netflix is among the most popular streaming platforms, with a subscription-based business model. The brand, platform, and content are strengths. The volatility of content licensing and production are weaknesses. The streaming market is a potential blue ocean. Inability to attract and retain premium members, and its fixed long-term costs are threats to its business model.

Apple SWOT Analysis

apple-swot-analysis
Apple can leverage a strong consumer brand and set of successful products as a strength. Yet the company is still too reliant on the iPhone as a primary revenue stream. Though Apple is working to open up new markets as an opportunity, it has to make sure to sustain its stores’ sales.

Google SWOT Analysis

google-swot-analysis
Google’s strength is its strong consumer brand. The company is grabbing new opportunities by opening up industries like voice search and consolidating in industries like the cloud. As a weakness, its revenues primarily come from advertising. A primary threat is the quick change of search and potential intervention by regulators.

Read Next: SWOT Analysis, Personal SWOT Analysis.

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