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Swot analysis of industry

STRENGTHS
1. Large customer base
2. Higher margins
3. Hi-end Technology No compromise!

WEAKNESS
1. Low manufacturing Base
2. High focus on R& D

OPPORTUNITIES
1. Rising 3G uptake
2. Rising Data usage
3. Growing rural numbers
4. Rising disposable income

THREATS
1. Competition
2. The Chinese presence!
3. Virus Attacks

Swot analysis of Samsung

STRENGTHS
Samsung is the worlds number one marketer of mobile phones with
21.4% of the worlds largest market share in the second quarter of
2015. Apple is number two with 13.9%[2]

Samsung has impressive research and design capabilities. It was able


to create and roll out Samsung Pay, a payment app with similar
capabilities to Apple Pay, in less than a year. Samsung has been able to
replicate many of the capabilities of both Apple Inc.s phones and
Google Inc.s Android operating system for mobile devices.

Samsung has strong manufacturing and marketing capabilities.

WEAKNESSES
Samsung has not been able to match Apple
Inc.s marketing capabilities for smartphones. Its share of the U.S.
smartphone market fell by 2.3% between 2014 and 2015. In contrast,
Apples share price grew by 34.9%.

Some Chinese competitors are catching up to Samsung in the


smartphone market. Between 2014 and 2015 Huaweis share grew by
48.1%, and Xiaomis share grew by 29.4%.

Samsungs devices use the Google Android open source operating


system. Many consumers seem to view Android as an inferior product
to Apples iOS. The public has not been as accepting of Android as the
tech community has.

Some consumers view Apple products as more advanced and


dependable than Samsung products.

Samsungs marketing efforts are not as sophisticated as Apples.

OPPORTUNITIES
Growing market for smartphones, tablets and other mobile devices,
especially in developing regions such as Africa and India, Increased
demand for tablet and smartphone-based solutions such as Samsung
Pay

New technologies such as wearable tech

Growing online market from sales channels such as Amazon.com

THREATS:
Apple has emerged as the dominant smartphone and tablet brand in
some markets, such as the United States. Samsung has not been able
to overcome Apples reputation for reliability.

Apples reputation for quality, reliability and sophistication seems to be


growing.
The Google Android operating system, which Galaxy devices depend
upon, is not as popular with average people as iOS is.

Declining or stagnating middle-class incomes in North America and the


United States could reduce consumer buying power in those key
markets for Samsung.

Chinese manufacturers such as Huawei and Xiaomi could emerge as


serious rivals to Samsung. These companies share of the critical
mobile device market is growing while Samsungs is falling.

Value chain of Samsung mobile phones

1.InboundLogistics:

Knowing that Samsung already has its own operations and activities in the
manufacturing processes of their smart phones, most activities involved in
inbound logistics are heavily refined. The key in the implementations to our
strategy will be to synchronize Samsungs current scheduling and inventory
controls with AuthenTecs in order to continuously create more value without
slowing down the manufacturing process.

2.Operations:

Operations will be one of the biggest keys to change with respect to the
value chain framework, second only to marketing and sales. The acquisition
of AuthenTec would sprout a major issue in the manufacturing process.
Because Samsungs manufacturing operation has mostly been localized to
Seoul, South Korea, the North American companys China-based
manufacturing of biometric scanners could put a delay in its production
process. Logistics play a big role in ensuring that scheduling and inventory
control are matched with Samsungs pace; but because of overseas shipping
and unpredictable delays that come with it, this operation potentially
becomes less streamlined and thus can decrease value. A possible solution
to this challenge would be to relocate AuthenTecs operations closer to
Samsungs facilities for more immediate control over hardware production.
There would be considerable costs involved with such a move, including the
increased labour costs in Korea compared to China. Samsung would need to
determine if the payback period for value they gain in their operations
offsets the costs quickly enough to be worth making the move, or if it would
be better to keep production as it is and risk the potential drawbacks of the
distanced production of the scanners.

3.OutboundLogistics:

Current outbound logistics are very solid on Samsungs end. Because it has
most of its operations localized within Samsung Town in Seoul, all activities
related to the gathering, storing or distribution of their finished smart phones
(and all other products) are done effectively, with little delay and with a
streamlined logistics methodology. The acquisition of AuthenTec will not have
any effect on these logistics procedures, as the final state of the products is
the same as in their older smart phone models.

4.Marketing and sales


Because our new game strategy is a position-building one, the marketing
and sales is the most important point after operations to be considered in the
value chain framework. The marketing and sales should be pitched to include
both the biometric scanners as well as the secure email/messaging network
together as a security package deal. The target demographic is a new
market that Samsung hasnt fully catered to until now, so new market
research will have to be conducted on how to pitch the products in a way
that will attract the business men and women who deal with sensitive data
regularly and count on the security of their cellular and data networks for
exchanging information. By using the correct marketing strategies, Samsung
can maximize the value perceived by the public.
The biggest challenge with this stage of the framework is in convincing
current blackberry users that Samsungs network and security features on
their mobile phones are superior to that of RIMs.

5.Service:

The value that services add or help to maintain should be considered in both
AuthenTec and Synchronicas acquisitions. Minimal training will be required
for employees in either category because they already have their expertise
since before the acquisition. There may be some standards that Samsung will
prefer them to adjust to (in terms of safety standards or in the slight
adjustments required to adapt their technology to Samsungs technology).
The installation of the proposed security network will have many incurred
costs due to its breadth (worldwide), which Samsung must be ready to cover
in order to proceed with the promise of enhanced and superior security.
6.Support Activities

With respect to support activities which enhance the value created through
the value chain analysis, Samsung already has many of said activities in
place. The new operations regarding the upgraded technology would require
small tweaks in the technology development support activity, mostly with
updating materials and adjusting the building process.
Firm infrastructure will be modified to account for new employees gained
through acquisition, which will include adjustments in the accounts related to
said employees and their companies, the management of these employees,
the quality of the newest items produced, and in the information systems
required to communicate live data across national borders. Closely related to
the employee infrastructure are the adjustments in compensation via HRM
for the employees already with Samsung and those joining Samsung through
acquisitions.

8.Critical Evaluation of the Value Chain Framework:

The Analysis Value Chain Framework analysis has its shortcomings in not
being able to represent value-adding activities that Samsung might be
performing outside of the value chain. A lot of the value created by
Samsung, even strictly in the mobile market, comes from things like
branding and human resources which are not accounted for in such an
analysis. Its because of this that we have selected separate analytics
techniques throughout the report to understand Samsung and its operations
from various perspectives. Determining inbound and outbound logistics and
the changes that would result in them from the acquisition of AuthenTec and
Synchronica and the new activities added was the most difficult and perhaps
vague sections of the Value Chain Analysis because thats not information
readily available to the public. Determining how things would change outside
of the obvious expectations related to data coming in and out of the new
branches and what the new employees have to offer is a difficult task with
the limited information available.

9.Human source management


samsung community services team was established in 1994 as a Korean
company that is designed to facilitate the participation of employees
Samsung has given the 300 central office for public relations in the world
samsung, samsung fully encourage and support employees. more than 61%
of all employees worldwide samsung donate their time and skills in various
activities, and about 70 000 volunteers involved in the program from 1902
volunteers. One of Samsung's strongest assets is our team of talented
researchers and engineers. More than a quarter of all Samsung employees
42,000 peoplework everyday in research and development, and we expect
that number to surpass 50,000 by 2010. Atand amongour 42 research
facilities around the world, they collaborate on strategic technologies for the
future and original technologies designed to forge new market trends and set
new standards for excellence.

10.Technology development of Samsung


Samsung has grown to become one of the world's leading electronics
companies, specializing in digital appliances and media, semiconductors,
memory, and system integration. Now the quality and innovative products
and Samsung has been recognized in the world. It all became a major
milestone in the history of Samsung, shows how the company has developed
its product range and achievement, increase revenue and market share, and
follow its mission to provide a better life for customers all over the world.

11.Procurement
As a world leader in digital technology Samsung Electronics advanced to a
new era in product development, corporate culture and contributions to the
global community.
To achieve these objectives, we understand how important it is to build
relationships and have the full support of the supplier class.

Samsung Electronics was looking for potential partners with world-class


innovative technology and special technologies to collaborate and create
new business opportunities.

Together with suppliers, we will work together towards a common goal: To be


The World's Number One.
Ethics ownership certificates
The buyers of Samsung Electronics, realize and accept an important role in
increasing the value for the kustomernya.

Bcg matrix of Samsung mobiles

Stars
Products or businesses that are considered as star in the BCG matrix are a part of evolving
industry which offers growth prospects to the businesses. As a result, companies are interested
to invest in developing these units further to gain a larger market share and attain a stronger
position in the market. The product manufactured by Samsung that can be seen as a Star is the
mobile phones and tablets. In an effort to deal with the competitive pressure from other mobile
phone manufacturers, Samsung has invested its resources to expand its market presence. The
management has been able to achieve this objective, making the company one of the major
mobile phone suppliers in the international market (Gibbs, 2015). The mobile phone industry is
marked by rapid technological changes which indicates that the market is in the growing phase.
The introduction of new technology in the market results in the incorporation of new features
in the mobile phones and tablets. Samsung manufactures new mobile phones, adding new
features to make it more appealing for the target market.

Generic strategies of Samsung mobiles

While Samsung is the second largest mobile handset brand in India, it


leads in the smart phone segment in India.

Companys market share in Mobiles has grown from 6% in 2008 to over


30% as on date.

Samsung has followed differentiation strategy with immense focus on


new innovations and technologies.

Samsung has been a leader in understanding the needs of the


consumers and has focused on improving the products and services
provided to customers by incremental changes and improvements.

In Oct 2010 Samsung was the first company to launch Tablets in the
Indian market, with the Galaxy tab 7.
Later released Galaxy tab 10.1.

Latest releases in this series are Samsung Galaxy Tab 2 (7.0) and
Galaxy note (10.1).

Vision samsung

Vision 2020
The underlying principle that defines our vision for the future of Samsung
Electronics is "Inspire the World, Create the Future".

This vision is at the very core of our commitment to lead innovations in


technology, products and solutions that inspire communities around the
world to join our aspiration for creating a better world full of richer digital
experiences. As we recognise our responsibility as a creative leader in
the global society, we also dedicate our efforts and resources to offering
new values to the industry and customers while fulfilling shared values of
our employees and partners. At Samsung Electronics, we want to create
a future that is exciting and promising for all together.

As a guide to common understanding and measurable goal, a set of


specific objectives is incorporated into our vision. By 2020, we seek to
achieve annual sales of USD 400 billion while placing Samsung
Electronics overall brand value among the global top 5. Three key
strategic pillars that are now part of our culture, business operation and
management describe the governing initiatives to this end: Creativity ,
Partnership and Great People.

We pride ourselves on delivering the worlds best products through


operational excellence and innovation prowess. As we look forward to
exploring new business areas including healthcare and biotechnology,
we are excited for new challenges and opportunities ahead. Samsung
Electronics will continue to build on top of its current achievements new
capacity and expertise to further its competitiveness and its history of
innovation.

Mission Samsung

Inspire the world with innovative technologies, products and designs that
enrich peoples lives and contribute to a socially responsible and sustainable
future.

Objective Samsung

Develop a unique brand community


Develop biosensors integrated with cloud computing
Produce a cheaper smartphones

Goals Samsung

1. Quantitative goal

USD 400 billion in sales, predominantly no.1 in IT industry and


global top 50

2. Qualitative goal

Innovative company, respected company, top 10 worlds best


workplaces; creative leader building new markets; global
enterprise that attracts worlds best talent.

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