Samsung SWOT Analysis: Most comprehensive report

samsung swot analysis

Samsung Electronics:

Samsung Electronics Co., Ltd. was founded in 1938 and is based in Suwon, South Korea. Which operates in seven continents across many countries.

Samsung Electronics Co., Ltd., and its subsidiaries, having wide range of products starting from consumer electronics, information technology and mobile communications. It sells digital TVs, monitors, and printers; mobile phones, smartphones, tablets, wearables, other phones, accessories, communication systems, and computers; memory and system LSI products; LCD and OLED panels etc... Samsung manufacture of semiconductor equipment and components, as well as the provision of repair services for electronic devices, it also sells electronic devices and cameras, home appliances, including refrigerators, cooking appliances, washing machines, air conditioners and many more.

The company’s revenue ware 201 Billion USD for the year 2016. Major Revenue contribution comes from Mobile Communication & Semi-Conductor Business. Which combine contribute to around 2/3 of the total revenues.


Major Market Share by Key Products Categories of Samsung as of FY 2016:

Consumer Electronics -  21.6% Market share (TV, Monitor, Refrigerator, Washing Machine, Air Conditioner, Medical Device, etc)

Information Technology & Mobile Communications - 19.2% Market Share (HHP, Network System, Computer, etc.)

Device Solutions - 48% in Semiconductor Business (DRAM) & 17% in Display Panel.


SWOT Analysis of Samsung:


Strengths in the SWOT Analysis of Samsung:


Innovation Focused: Samsung products raised a bar in several categories mainly in Smartphones with it’s cutting edge solutions like: Dual Pixel, Gaming, Gear VR – this a new growth avenue for Samsung as VR market is still at nascent stage worth $37 million 2015, and is estimated to touch $3 Billion by 2020., IP 68, Cooling Techniques etc...

All this is possible with Numerous patents company has under its belt in recent years, which helped Samsung to compete with Apple & Google at the same time in patent war and keep innovating its products range.


Design Capability: Samsung’s ability to offer market first design in a result of in-house design competency rather than outsourcing it. The secret of this success lies in enormous amount of innovation Samsung applies to its Design team from research to technology to user experience. At every aspect blending new offerings with innovative design and managing its supply chain is an effort very few can manage.


Technology: Samsung is ahead of technology and worked on AI capabilities to deliver next gen user experience. What comes out of this will be a treat for shoppers to buy based on image search and lifestyle compatibility.


Diversified Business Areas: Apart from Technology, Design and Pricing other major strength of Samsung is it’s diversified and well dominated geographic reach. From Developed markets where it competes to Apple and in Emerging Marketing with several other players. With such a competition mix Samsung product stand out in market and made a niche for itself. Well diversified products across markets helped company overcome saturation and boosted innovation.


Weakness in the SWOT Analysis of Samsung:

Own OS: Company with a market leader and huge growth prospects, Samsung lacks in one key area it’s still unable to launch its own OS. User Experience and easy of operation if it goes Samsung devices way the OS certainly has a potential to put Samsung as most value Smartphone Company in coming years.

Product Complaints: Recent developments in some of the new launches where it compromised on safety issues. This kind of ignorance will have significant effect on consumer loyalty resulting in trust deficit among consumers.


Competition: In a market where technology trends and user behaviours are fast changing and new companies with innovative product line-ups to target each winnable market segment. Keeping a competitive advantage is challenging. Growing accessibility to technology at lower cost makes many new entrants with efficient products to counter even large players like Samsung.


Too big product portfolio: It’s huge as a product portfolio on the one hand it creates a massive visibility in the market, on the other hand being innovative at each product category is not sustainable in a long run.


Opportunity in the SWOT Analysis of Samsung:

R&D: Samsung is today all about it’s R&D capabilities and investment it made in this area in last several years. Focus on R&D which allows it to come up with market dominating products is a clear opportunity.


Emerging Markets: Expanding product offerings and enterprise solutions to Emerging markets with affiliates will open up new revenue lines. Emerging markets are cost sensitive and dominated by millennials in electronics purchase power, where Samsung has greater alignment with it’s attractive design and affordable price points.


Inorganic Growth: To dominate markets, especially the emerging markets where few businesses are built in anticipation of future acquisition. Samsung’s position offers enough room to grow inorganic and stay relevant for years to come if there are great strategic fits in terms of Price & Product quality.


Threats in the SWOT Analysis of Samsung:   

China Angle: Growing relevance of Chinese smartphone makers is a reality. And Samsung is at risk to give away its market share to these players as China manufactured products are positioning themselves in more or less on same lines when it comes to Design and UX.


Disruptive Technologies: Again, technology is not only fast changing but its more and more accessible to smaller and new players who can ride on innovation as a bundled product.




Major Competitors of Samsung:


Apple Inc., Nokia OYJ, Intel Corporation, LG Display and LG Electronics, Sony Corporation, Texas Instruments Inc., Lenovo Group Limited, Hewlett-Packard Company, Sanyo Electric Co., Ltd., other consumer electronics, telecommunications equipment, semiconductor and home appliance companies across the globe.


Conclusion: This SWOT analysis summarizes few realities viz, Samsung is position itself as favourite among mass consumers, has built a strong distribution network in almost all major world markets, and well placed to cash in on future opportunities and dominate e.g. virtual reality all is built on a strong brand appeal. Samsung does have weaknesses and threats to overcome, scalable future R&D outputs will determine market dominance.


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Author: dwapp

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