Samsung Environmental Responsibility
Autor: Tim • February 6, 2018 • 2,849 Words (12 Pages) • 483 Views
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- Samsung is doing well financially considering the various competitors Samsung’s has and faces in the different markets.
- Technological factors have affected Samsung as their employees are not trained with the latest technologies to produce electronics with low carbon footprint and reduce pollution.
- Environmental factors such as the highly dangerous chemicals being used at the semiconductor facilities that have caused various cases of cancer for several employees.
- Samsung is affected by the various competitors in the market such as Apple, Sony, LG and GE that have a major part of the market.
- New entrants into the market such new Chinese MicroMax and the Indian Lava Cellphone which are competing against the cellphone division of Samsung.
In order to go in further detail in analyzing Samsung a strength, weakness, opportunity and threat analysis ( SWOT).
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Table 1 : SWOT
Positive
Negative
Strength
Weakness
- Largest manufacture of TV’s and LCD panels
- Largest Sales of cellphones in the market.
- Strong research and development capabilities.
- Strong hold on the market in USA and Europe
- High competition from Apple and not being able to match Apple’s marketing strategy.
- High competition from Chinese companies.
- Samsung is heavily dependent on markets that have no growth opportunities.
- Apple products are considered more sophisticated than Samsung.
Opportunities
Threats
- Growing request for cellphones and tablets.
- Growing middle class in growing countries which increases electronic sales.
- Growing online sales for cellphones and tablets.
- New technology advances to produce new products.
- Apple products are considered superior to Samsung.
- Strong competition from Chinese and Indian companies.
- Struggling mid-class in North America and Europe.
- Threat of Apple developing home appliances that can compete with Samsung.
Looking at the SWOT analysis in Table 1 above you can see that Samsung has several strengths that have contributed to Samsung’s success and have helped Samsung become a leader in environmental friendly products. Looking at the weakness of Samsung it is greatly affected by Apple’s dominance in the market and by Samsung’s being heavily concentrated in markets that have low growth opportunities. Looking at Samsung’s opportunities it will continue to have high sales due to the high demand of cellphones and tablets. Samsung’s faces strong threats from Apple and new entrants to the market such as new Chinese and Indian cellphone manufactures.
The Value Chain analysis of Samsung shows that Samsung’s activities can be broken down into two activities, Primary activities and Supporting activities. The Primary and Supporting activities can be broken out as follows.
- Primary Activities :
- The production and sales of LCD panels, cellphones, home appliances.
- Providing the latest technology to its customers.
- Manufacturing and producing high quality products.
- Supporting Activities:
- Becoming a leader in environmental friendly products.
- Eliminating hazardous chemicals from its manufacturing plants.
- Training and developing its employees to the latest technologies.
Looking at the primary activities of Samsung, they are the core activities for Samsung which make Samsung one the leaders of electronic products in the world. Samsung can you its primary activities of selling electronics to help resolve its key issues of pollution and hazardous chemical being used in its plants. The secondary activities are very crucial for Samsung’s success. Without Samsung thriving to becoming more environmental friendly, eliminating hazardous in its plants and training and developing its employees it will not be a leader in the electronic industries.
To have a better understanding of Samsung’s competitive strength we will look at the competitive strength assessment below.
Table 2: Competitive Strength Analysis
Samsung
Apple
LG
Key Success Factors / Strength Measure
Strength Weighting
Weighted Score
Strength Weighting
Weighted Score
Strength Weighting
Weighted Score
Quality Product Performance
0.1
8
0.8
9
0.9
8
0.8
Manufacturing Capability
0.1
9
0.9
9
0.9
7
0.7
Technological
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