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1. Samsung SWOT Analysis
Prepared By : Maged Elsakka

2. Samsung History
• From its inception as a small export business in Taegu, Korea,
Samsung has grown to become one of the world's leading electronics
companies, specializing in digital appliances and media,
semiconductors, memory, and system integration. Today Samsung's
innovative and top quality products and processes are world
recognized. This timeline captures the major milestones in Samsung's
history, showing how the company expanded its product lines and
reach, grew its revenue and market share, and has followed its
mission of making life better for consumers around the world.

3. Samsung company profile
South Korean company, founded in 1938
Largest chaebol
Total revenue € 185.1 bn (2012)
Samsung Electronics largest SBU, revenu € 140.5 bn (2012)
CEO is Dr. Oh-Hyun Kwon
72 Countries
206,000 employees

4. Samsung smart phones
First SE mobile phone in 1988
Apple introduces smartphone in 2007
SE smartphones unsuccesful at first
3.7% market share at the end of 2009
Google Android launched in 2010
Samsung Galaxy S in June 2010
Market leader in 2012, with 215 m units

6. Vision Statement Evaluation :
• Definition:
“Vision is a statement that expresses organization’s ultimate objectives.”
• Understanding the tool:
It is very important for any organization to have clear and attainable long-term
vision; the statement that guides every chief executive, manager or employee in
achieving the same organizational objective. A vision statement asks ‘What does
our business want to become?’ and usually is a one sentence, inspirational, clear
and memorable statement that expresses company’s desired long-term position. It
motivates employees to make extra effort and usually results in higher
performance. Because money rewards only partly motivates employees, it is
important to use other tools such as vision statement to increase their motivation.
*The statement also indicates what resources, competencies and skills will be
needed to achieve the future objective. This way it guides decision-making and
resource allocation more effectively.

7. Mission statement of Samsung
Samsung mission statement 2013
Samsung doesn’t have an official mission but express it through
company’s philosophy:
“At Samsung, we follow a simple business philosophy: to devote our
talent and technology to creating superior products and services that
contribute to a better global society.”

8. Mission statement of Samsung
Evaluation
Does it include…? Does it mention values like…?
Customers
Products/
Services
Markets Citizenship Teamwork
No No Yes No No
Technology
Concern for
survival
Philosophy Excellence Integrity
Yes No No No No
Self-concept
Concern for
public image
Employees
No Yes No Score 1.6/4.5
Customer or product-oriented?
Customer-oriented

9. Difference between vision and mission statements
Vision Mission
Purpose Tells what an organization aims to achieve. States what a company is currently doing.
Answers the question What do we want to become? What do we do?
Includes •Objectives
•Values
•Customers
•Products/Services
•Markets
•Technology
•Concern for survival
•Philosophy
•Self-Concept
•Concern for public image
•Concern for employees
Future or present time? Talks about the future Talks about the present
To whom it is developed? Employees of the company
Employees, customers, suppliers,
distributors, partners and communities
Which one is created first? Developed first Developed only when vision is available
How often does it change?
Rarely changes because most of objectives
takes years to achieve
Product-oriented missions change every
time when a company decides to venture
into new product market.

10. Overview
• Samsung’s statement is clearly too short and doesn’t provide enough information about what the
company does or why it does it. The statement was evaluated 1.6 points because it only includes
three essential components out of nine and has a customer-oriented philosophy. Customer-oriented
statement defines organization’s purpose in terms of meeting customer needs rather
than focusing on what products to produce and services to serve. Samsung also doesn’t mention
in their philosophy any of the values we use in our evaluation but the company provides them
separately:
• People
• Excellence
• Change
• Integrity
• Co-prosperity
• These values show what guides Samsung’s actions and decisions. The company mentions
excellence, integrity and co-prosperity (or citizenship) as their values, which should have been
included in their mission as well. In overall, Samsung’s philosophy does a poor job in revealing its
core purpose to company’s stakeholders.

11. PEST& PESTEL Analysis
PEST analysis
Political Economic
•Government stability and likely changes
•Bureaucracy
•Corruption level
•Tax policy (rates and incentives)
•Freedom of press
•Regulation/de-regulation
•Trade control
•Import restrictions (quality and quantity)
•Tariffs
•Competition regulation
•Government involvement in trade unions and agreements
•Environmental Law
•Education Law
•Anti-trust law
•Discrimination law
•Copyright, patents / Intellectual property law
•Consumer protection and e-commerce
•Employment law
•Health and safety law
•Data protection law
•Laws regulating environment pollution
•Growth rates
•Inflation rate
•Interest rates
•Exchange rates
•Unemployment trends
•Labor costs
•Stage of business cycle
•Credit availability
•Trade flows and patterns
•Level of consumers’ disposable income
•Monetary policies
•Fiscal policies
•Price fluctuations
•Stock market trends
•Weather
•Climate change

12. Socio-cultural Technological
•Health consciousness
•Education level
•Attitudes toward imported goods and services
•Attitudes toward work, leisure, career and
retirement
•Attitudes toward product quality and customer
service
•Attitudes toward saving and investing
•Emphasis on safety
•Lifestyles
•Buying habits
•Religion and beliefs
•Attitudes toward “green” or ecological products
•Attitudes toward and support for renewable energy
•Population growth rate
•Immigration and emigration rates
•Age distribution and life expectancy rates
•Sex distribution
•Average disposable income level
•Social classes
•Family size and structure
•Minorities
•Basic infrastructure level
•Rate of technological change
•Spending on research & development
•Technology incentives
•Legislation regarding technology
•Technology level in your industry
•Communication infrastructure
•Access to newest technology
•Internet infrastructure and penetration

13. Environmental (ecological) Legal
•Weather
•Climate change
•Laws regulating environment pollution
•Air and water pollution
•Recycling
•Waste management
•Attitudes toward “green” or ecological products
•Endangered species
•Attitudes toward and support for renewable energy
•Anti-trust law
•Discrimination law
•Copyright, patents / Intellectual
property law
•Consumer protection and e-commerce
•Employment law
•Health and safety law
•Data Protection
Ethical Demographic
•Ethical advertising and sales practices
•Accepted accounting, management and
marketing standards
•Attitude towards counterfeiting and breaking
patents
•Ethical recruiting practices and employment
standards (not using children to produce
goods)
•Population growth rate
•Immigration and emigration rates
•Age distribution and life expectancy rates
•Sex distribution
•Average disposable income level
•Social classes
•Family size and structure
•Minorities

14. Porters five forces analysis
Threat of new entrants
High, mainy Chinese competitors
Threat of substitutes
High, many similar products on the market
Customer power
High, low threshold for switching
Supplier power
Low, Samsung market leader
Competitive rivalry
High, fierce competion with Apple, Sony, SK Hynix, etc.
Complementors (sixth force)
Open Handset Alliance (OHA): Android OS
Apple, market creator, large customer

15. Benchmarks: Samsung Galaxy Note II vs Apple iPhone 5

16. Competitive Profile Matrix (CPM)
Android OS
iOS Windows Phone
Critical Success Factors Weight Rating Score Rating Score Rating Score
Market share 0.13 4 0.52 2 0.26 2 0.26
Number of apps in
0.10 4 0.40 4 0.40 2 0.20
store
Frequency of updates 0.06 3 0.18 4 0.24 2 0.12
Design 0.07 3 0.21 3 0.21 3 0.21
Product brand
0.05 3 0.15 3 0.15 2 0.10
reputation
Distribution channels 0.11 4 0.44 2 0.22 3 0.33
Usability 0.11 3 0.33 3 0.33 3 0.33
Customization features 0.04 4 0.16 2 0.08 2 0.08
Marketing capabilities 0.04 2 0.08 4 0.16 2 0.08
Company brand
0.10 4 0.40 4 0.40 3 0.30
reputation
Openness 0.02 4 0.08 2 0.04 2 0.04
Cloud integration 0.12 4 0.48 2 0.24 2 0.24
Rate of OS crashes 0.08 1 0.08 4 0.32 3 0.24
Total 1.00 - 3.51 - 3.05 - 2.53

17. BCG growth-share matrix

18. SWOT Analysis :

19. SWOT Analysis :

20. SWOT Analysis :

21. SWOT Analysis :

22. SWOT Analysis :

23. SWOT Analysis :

24. Market analysis
Key Issues:
Samsung performs as flanker, not as leader
Looses market share in emerging
smartphone markets to cheaper
brands (China -6% 2011-2012)
Needs to develop further
software of its own, vulnerable to
Google’s power

25. Market Overview

26. Strategy recommendations
Samsung must position itself
as market leader and resume
its current strategy
concerning product
innovation and market
divided segments in Western
Market (including their
power in the supply of
smartphone components and
marketing to revenue ratio),
because

27. Samsung must research and develop its own software platform, because

28. Samsung must attack and enter the growing segment of cheaper smartphones and
especially conquer China and be heavily invested in India (long term growth), because
both countries will enlarge the smartphone market as a whole and have the need for
a cheaper smartphone

29. Social Responsibility:

30. Broad differentiation Strategy of SAMSUNG

31. Samsung Twos
Tows Matrix for Apple Inc. Strengths / internal
 Strong brand image provides an edge over
competitors. Net sales of iPhone increased 93% to
$25.2 billion. Sales of music and other related
products increased 23% compared to 2009
 Robust financial performance strengthens investors’
confidence and provides capital for future growth
avenues. The stock price in the year 2011 alone rose
from 200’s to upper 400’s.
 Lack of debt results in higher R&D budget driving
innovation and new product ideas
 Apple Inc. was a leader in gross profit margin and
operating margin in 2011.
Weaknesses / internal
 Patent infringement lawsuit may affect financial
condition and operating results
 Product recalls may harm Apple’s reputation and add
significant warranty and other expenses.Product recalls
were raised of the iPhone 4 due to antenna problems
 In the suit between Nokia with the International Trade
Commission about infringed patents of the mobile
phones, portable music players and computers,
customers received a free case that will mitigate the
reception problems. This added additional expenses to
the company’s bottom line.

32. Opportunities / external
 Strong growth in smartphone and
tablet markets to boost Apple’s
revenues. iPhone handset unit sales
increased by 32.3 million units or
81%
 Robust outlook for mobile
advertising market provides growth
opportunity
 Strong growth in a global
smartphone industry
S/O
 Increase IPhone and related product
sales through online advertisement.
Overall net sales increased by 66%
from 2010
 Apple’s brand recognition
throughout all its markets can
strengthen by the offering less
expensive version of each product
to appeal to lower income market
 The company did not pay dividends
because it reinvests the capital in
the operation of the business
W/O
 Global expansion through Mexico,
Portugal, France and Australia
 Robust outlook for mobile
advertising market provides growth
opportunity
 Creating departament responsible
for recalls and product warranties
to maximize customers satisfaction
Samsung Twos

33. Threats / external
 Rising popularity of Google Android may
affect its market share
 Strong foreign market presence of Hewlett
Packard
 Intense competition may affect the
revenues and profitability. Decrease in
iPod net sales of $821 by 10% and iPod
unit sales by 15%
 Dependence on specific suppliers may
affect its operations and production
 Product substitution and availability of
Samsung tablets
 Global economic conditions could
materially adversely affect the Company
S/T
 Purchase voice and data network to
complement the smartphone division will
help acquire stronger market position
 Robust financial performance strengthens
investors’ confidence and provides capital
for future growth avenues, such as opening
stores and expanding e-commerce
throughout the global market.
 Focused R&D driving innovation and
consolidating its market position. Apple’s
R&D expenditure was $1,782 mil in 2010,
an increase of 33% from 2009. This
provides the company with new
technological innovations which can be
used in Apple products.
 Form a partnership with Google to
supplement the Apple products.
W/T
 Long term agreements between Apple Inc.
and the suppliers to guarantee production
commitments
 Constant promotion of the brand will
create stronger awareness and demand for
products
 Participation in local communities and
charities to create positive image which
was shadowed by lawsuits
 Continue investment in technology in
order to stay ahead of competitors and
become a market leader
Samsung Twos