Samsung Electronics Co. Case Study

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Source: (http://www.digitaltrends.com/mobile/samsung-edges-past-apple-in-customer-satisfaction-poll-for-smartphones/)

Source:(http://www.samsung.com/us/aboutsamsung/investor_relations/financial_information/financial_highlights.html)

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Financial Performance

Based on Samsung 2013 and 2014 financial profile, 2014 having highest net sale this is around 305 billion dollar whereas 2013 is 268.8 billion dollar. Total asset of 2014 is increased to529.5 billion dollar from 470.2 billion dollar. Moreover as the profit increase, the liabilities of 2014 also increased from 296.3 billion and 260.8 billion dollar. Even though everything is higher than 2013, the net income of 2014 is decreased from 26.2 billion dollars to 22.1 billion dollars (Samsung, 2016). The evidence was attached in Appendix 5 and 6.

(Source:http://www.samsung.com/us/aboutsamsung/samsung_group/our_performance/)

Source :( http://www.hoovers.com/company-information/cs/company-profile.Samsung_Electronics_Co_Ltd.a166cb2c88a2e408.html)

Source: (http://www.samsung.com/my/aboutsamsung/samsung/history_08.html)

Source: (http://www.samsung.com/us/aboutsamsung/corporateprofile/visionmission.html)

Source: (http://www.samsung.com/us/aboutsamsung/samsung_group/history/)

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SWOT and PEST Analysis of the Samsung Company

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SWOT Analysis

Samsung Electronics Co., Ltd or the company, a piece of the Samsung group, is one of the main customer gadgets brands in the global. The company’s solid concentration on development on innovation and Research and development gives a reasonable advantages by empowering Samsung to takeoff products that adequately improve incomes and the market share. Then again, exceptional rivalry and expanding commoditization of cellular telephones might affect the company’s market share and incomes.

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Strengths

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Strong market position and brand value

Samsung Company has been a leading player in terms of market share in year 1993. In 2013, Samsung detained 38% of the worldwide NAND flash market share and 39.8% market share of the worldwide Dynamic Random-Access Memory (DRAM). Moreover, Samsung proceeded its direction in the worldwide Television market throughout the previous 8 years in succession (Company Profile Samsung Electronics Co., Ltd.: swot Analysis, 2015).

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Reliable Emphasis on Research and Development

The organization has been reliably outgoings on the innovative work or called as Research and Development purposes. Samsung dedicates critical assets and consideration regarding create consumer-preferred products. It is obvious from the way that the organization contributed 6.5% and 5.9% of its income in Research and Development exercises in year 2013 and 2012, correspondingly (Company Profile Samsung Electronics Co., Ltd.: swot Analysis, 2015).

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Weakness

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Patent Suits

Samsung is a gathering to a few patent suits which consider on the organization’s gainfulness, cash flows and brand equity. Case in point in 2012, United State courts requested Samsung to pay $ 1, 05 Billion to Apple for asserted patent encroachment. The organization might confront comparable charges in future. Such claims, regulatory requests and other legitimate measures could bring about pay claims for harms, official monetary punishments, or inconvenience of imperatives and could have negative effect on Samsung’s business operations, profit execution and financial condition (Company Profile Samsung Electronics Co., Ltd.: swot Analysis, 2015).

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Threats

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Extreme rivalry and expanding commoditization in the mobile area

The organization confronts dangers of extreme rivalry and expanding commoditization in the mobile area. This mobiles face furious rivalry crosswise over geologies. The expanding interest for remote access to the wed has significantly affected the focused scene of the business sector for mobiles. Moreover, in the smartphones segment, the accessibility of Google’s Android stage has made passage into and development in the smartphones market simpler for various equipment makers which have joined Android’s biological system, particularly at the mid-to-low scope of the cell phone market. Therefore, bring down evaluated cell phones are progressively diminishing the addressable market and bringing down the cost focuses for highlight phones (Company Profile Samsung Electronics Co., Ltd.: swot Analysis, 2015).

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Opportunities

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Inspirational position for smartphone and tablet market

The smartphones and tablets business sector is relied upon to develop at strong pace in the average span. Based on industry approximations, the worldwide batches for smartphones came to 1,004 million components in 2013 contrasted with 725 million components in 2012. Moreover, smartphones are normal to develop at a Compounded Annual Growth Rate (CAGR) of 13.3% among 2013 and 2017. Additionally, the interest for tablets as well expanding in future development (Company Profile Samsung Electronics Co., Ltd.: swot Analysis, 2015).

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PEST Analysis

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Political

The political environment is positive to Samsung's operations. Still, a few of foreign markets become a minor issue to Samsung. Currently, it confronted profound political headwinds South Korea. Pressures with North Korea are the reason behind of this issue. Political instability