Samsung SWOT and PESTEL Analysis

Samsung pulverisation and PESTEL Analysis plodding abridgmentDefinitionThis is part of a ph whizrs strategic planning action thatconnects the ac companionships objectives and strategies to tactics and actions carried bring out by employees. Often SWOT is part of a social clubs strategic planning processthat connects its objectives and strategies to actions and tactics carried outby employees. To correct decide whatchanges to be made in a comp distributively and hunch forward where it stands on four key strategic beas it has to hire a SWOT analysis.SWOT BasicsStrength, Weakness, Opportunity and Threats (SWOT) is anacronym that identifies the four lively elements of this analysis. Strengths usu all(prenominal)y apologize in detail an analysisof the attach tos values over its competitors. Weaknesses evaluate beas inwhich the guild is at a competitive dis returns and has a possibility offailure. Opportunities argon untapped marts or business developments that the society could feign in and puddle profit. Threats transverse the external milieu that could affect the company, an example beingness technological, surroundingsal and regulatory factors.Strengths and WeaknessesThe main reason for employ the SWOT analysis is so as to be adapted to evaluate and assess a companys strengths and weaknesses. This helpsthe company understand its main commercialise advantages and argonas that competitorscould take advantage of. Companies takeadvantage of its strengths by using them as market messages so as to separate them from their competitors.By understanding their weaknesses companies after part decide what beas lackimprovement and what areas are deeply rooted in the nature of its business.OpportunitiesBy exploring untapped opportunities company leaders are opento consider ways to grow. Any impregnable company has to look for ways to improveand elevate its growth curve because without growth path failure and lack ofutilization of opportunities, then, giving an advantage to thecompetitors. Opportunities are areas that could create much sales and profitsto the company, and these can be the inclusion of new and emerging markets, newbusiness and product developments and at long last strategic business partnerships.ThreatsThough this is non fun at all, companies forever and a day need to havean idea of what external threats they may encounter so they can always beprepared and avoid being caught unawares. governmental relation regulation changes may affect the level of competition or be companies face. Ways in which a company gets access and uses naturalresources can be affected by environmental or conditional changes. Companies that do not incorporate newtechnologies are always affected negatively. (Hill and Westbrook(1997).WHAT IS PESTEL ANALYSIS AND WHY ITS USEFUL?So as to be able to achieve maximum results and get to itsoptimum performance a company has to consider whatever factors. The Pestel analysisexplains these fa ctors in six categories. governmentalThese boot to the magnitude of government intervention inthe economy. Most times the contradictorypolicy of a country plays an important role in determine the traderegulations that could either lead to trade restrictions or trade incentives. A company can be highly affected by specialregulations imposed by the government.ECONOMICALFuture operation of a company/ institution is highlyaffected by economical factors. Also, the toll of import and exported goodsare highly affected by the changes in exchange grade in different regions. Theexpansion and growth of an organization are highly influenced by the economysince on that point is a change in cost of uppercase. (Yksel, I. (2012).SOCIALThe macro-environment of the organization is formed bydifferent social factors, ethnical and demographic aspects of the Socialfactors include attri merelyes in ones career, age distribution, growth rate,population, how individuals are conscious about their heal th and safety. A keenanalysis of these factors helps one understand the PESTEL analysis and helporganizations understand the dynamics of existing and the approachability ofpotential markets and future guest needs.TECHNOLOGICALWith the speed at which applied science is evolving and customersbecoming to a greater extent acquired to it, organizations have no option but to remain up withthis pace. New technology feeds the oldone obsolete and outdated. An organization/company that is not ready to embracenew technology is at a chance of lagging behind its competitors and losing itsmarket value. LEGALThese are factors that affect the behavior of customers andthe operation of businesses. Things which may be affected by legal factors areproduct transportation, profit margins, and viability of certain markets justto reference a few. These factors help in knowing if there are any dangersbehind selling certain products like drugs and sharp objects and can to a faultaffect how a company s tocks their inventory or interacts with the customer.Consumer law is apply so as to protect consumers fromcompanies that are involved in antic and as well as preserve their rights when in themarket. This affects business because they have to put forth resources so as togive detailed information about their products and services. workplace law is in addition known as labor law, and it explainshow companies employees should be treated. This also helps protect childrenfrom child labor and also it makes the firing of innocent employees a bitharder.SAMSUNG SWOT ANALYSISSamsung Electronics Co. Limited is the consumer electronicssubsidiary of the Samsung Group, based in Suwon, South Korea. Samsung ispopularly known as the worlds mammothst maker of mobile phones,smartphones such the highly popular and achievementful coltsfoot as well as otherelectronic devices like Television sets, liquid crystal display panels home theaters,refrigerators and even cooking appliances. Having a gre at and undisputed manufacturing and marketingexpertise, Samsung is regarded as the worlds second largest consumerelectronics company the freshman being orchard apple tree,Inc. its the Statesn rival. STRENGTHS It is the worldsmost successful electronics manufacturer of idiot box sets, liquid crystaldisplay (LCD) panels, mobile phones and smartphones and other electronicappliances. By use of itsstrategic marketing style Samsung is the worlds physical body one mobile phonesseller with the worlds largest market make do of 21.4% in 2015s second quarter.Apple comes second with 13.9% By use of its awing research and design capabilities, Samsung has been able to createand roll out a payment app with similar capabilities to Apple Pay, in less thana course the Samsung Pay. Also, thecompany has been able to incorporate many of the capabilities of both Applephones and Google mechanical man operate formation to its mobile devices. Samsung not onlyhas strong manufacturing capabilities but also have undisputed marketingstrategies that have led to the success of the company. Samsung has beenable to sustain long-standing relationships with retailers in the unify Statesand Europe that have been able to provide a steady sales channel for itsproducts through out the years.WEAKNESSES It is quite clearthat Samsung has not been able to match Apple Inc.s marketing capabilities forsmartphones. This is because Its shareof the U.S. smartphone market fell by 2.3% between 2014 and 2015 however Applesshare price grew by 34.9%. Some Chinesecompetitors such as Huawei and Xiaomi are catching up to Samsung in thesmartphone market. In the year 2014 and 2015 Huaweis share grew by 48.1%, andXiaomis share grew by 29.4%. Samsungs frontence on customer electronics sales in markets that have trammel resourcefor growth is dangerous. The company depends on these markets an example beingthe United States and Europe, for much of its revenue. The public hasnot accepted the Android operate syst em in an equal manner like the techcommunity. This is because many consumers make Android as an inferior productto Apples IOS. Samsung devices use theGoogle source application system and this is a weakness because it is not prefer by a majority of people. Apple productsare viewed as more technology advanced and dependable on than Samsung productsby a large number of consumers. Samsung needs toimprove its marketing efforts and standards, so as to be in the same level asApple.OPPORTUNITIES Samsung needs togrow its market for smartphones, tablets and other technological devices indeveloping regions where consumers are not acquainted(predicate) with PCs. This is because in 2015 sales of tabletsovertook sales of traditional personal computers. An example of these regionsis Africa and India. Samsung should seclude the increased demand for tablet and smartphone-based solutions and marketsome of its products that are not known to many such as Samsung Pay The companyshould venture into new technologies such as wearable tech The growth of the snapper class in the developing world will increase the market for consumerelectronics Sales channelssuch as Amazon.com can be apply by Samsung to grow its online marketTHREATS Samsung has notbeen able to outdo Apple. This is because Apple has emerged as the dominantsmartphone and tablet brand in some markets, such as the United States. The growth ofApples reputation for quality, reliability, and ordinariness is a threat toSamsung because it seems to be lagging behind. Samsung is mostpopular for its Galaxy devices. We could even say that it depends on thesedevices. The problem is, the Google Android operating system, which thesedevices depend upon, is not as popular with average people as iOS that is inmost other devices incuding Apple is. Key markets forSamsung are sexual union America and the United States. The declining and stagnating of themiddle-class incomes in these areas could reduce consumer buying spring and con sequently affect Samsungs sales. Samsung isexperiencing rivalry from Chinese manufacturers such as Huawei and Xiaomi. Thisis evident because the capital share of these companies rose and Samsungs isfalling. If Apple decidedto produce more consumer products like home appliances and cameras, Samsungcould be greatly affected.Though Samsung has been able to oblige an impressiveresearch, design and manufacturing capabilities, its marketing strategies arequestionable. There is a need for the company to revisit and improve itssmartphone marketing and design efforts so as to be able to maintain its marketshare in of the essence(p) arenas like the U.S.If the Samsung wants to maintain its position as an industryleader it needs to 1. New capabilities like Samsung Pay 2. learn to deal withaggressive Chinese competitors like Huawei and Xioami3.Compete with Apples reputation.PESTLE ANALYSIS OF SAMSUNGINTRODUCTIONSamsung is a globose company that operates in the market forconsumer appliances an d gadgets. Samsung is owned by a South Korean family andhas world-wide aspirations to increase into newer markets. Since Samsung is notcontent with operating in some markets in the world, it wants to cover as manycountries as possible. This analysis focuses on the external environmentalfactors that drive the Samsungs strategy.POLITICALA large number of markets where Samsung operates have apolitical environment that is conducive for business. This means that itsoperations run smoothly and though there might be some minor distractions toits operations in some of the foreign markets like India, Overall it can beconcluded that Samsung is operating in markets where the political factors arenot harmful. Samsung has faced significant political blows in its home countrySouth Korea because of the countrys tensions with North Korea. Due to thisinstability, the company has had to take into account this political factor andalso the threat of war in the Korean Peninsula. In areas where the pol iticalenvironment is unstable Samsung faces a lot of political pressure. This includesareas in many African and Latin American countries where the politicalenvironment is unstable and experiences frequent changes in the governingstructures.This is not yet a major cause for matter to for the company because ithas factored the political instability into its strategic calculations.ECONOMICSOpening up of several markets in the developing world meansthat Samsung can fatten out in the global markets. This, therefore, means thateconomic factors are a critical consideration. The current global economiccrisis has affected the purchasing power of customers forcing the company toseek profitable ventures in the emerging markets. The global environment inwhich Samsung operates in has a lot ofuncertainties and volatilities which means that the company has to keep onadjusting its strategies. Through expansion of Samsung into emerging anddeveloping markets has made it possible for the company to adjust well to thetapering off of the consumer disposable incomes in the unquestionable world. This isthe main reason that Samsung has an aggressive push into the emerging marketswith hopes that it shall recover all its lost businesses in the developedworld. SOCIO-CULTURALSamsung being a South Korean multinational owned by a familymeans that despite its global footprint it still operates from the core of aKorean company and culture. This means that among its global operations,adapting itself to local conditions is paramount. Since Samsung is a globalcompany that has had to act locally, therefore adapting a global strategy makesit possible to be productive in emerging markets. Together with this, Samsunghas had to tailor its products in markets it operates in so as to cater totheir customers whose preference changes so fast. It is important to note that Samsung operatesin a market niche that is strongly influenced by the lifestyle preferences ofconsumers. The fact that socio-cultura lfactors are different in each country Samsung has had to reorient itself ineach market accordingly.TECHNOLOGICALSamsung is considered to be among the worlds leading ripe companies. Therefore, the company is at an advantage of controlling andmaking use of the power of technology and driving innovation for sustainablebusiness. This has resulted into an obsessive mission by the company to outdoits rivals and competitors when it comes to technology and innovations. Thecompanys main goal is to be the first to reach the produce devices that arepreferred by customers and also be the first products of their kind in themarket. LEGALDue to Samsungs alleged artificial of the Apples iPad andiPhone it has had to face substantial penalties and law suits. This affectedthe company negatively on areas of public perception and consumer approvalstrategies. From Samsungs experience of having different lawsuits with itscompetitors, other technology driven companies should know that having anelaborate basis of a design or model is key rather than making a fast move soas to be able to infix a product to the consumers that shall, in the end,ruin your reputation.ENVIRONMENTALSamsung has to be on the lookout when making its products soas to be able to contact its customers. When doing this, it has to take intoaccount its social and environmental responsibilities so as to make sure theyare both ethical. Therefore, this meansthat the company should ensure that it does not compromise on its staff wagesor their working conditions for they are all involved in producing the finalproduct. (Grade and Pestel)CONCLUSIONAs Samsung prepares to expand globally, it has to be sure ofwhat is expected of it. engineering changes so fast and customer preference evenfaster. Therefore, with this analysis, Samsung has clear guidelines on what toexpect in the global consumer landmine.REFERENCESGRADE, G. B.PESTEL Analysis Of The Energizer.Hill, T., &Westbrook, R. (1997). SWOT analysis its time for a prod uct recall. dogged range planning,30(1), 46-52.Khan, U. A.,Alam, M. N., & Alam, S. (2015). A Critical Analysis of Internal andExternal surround of Apple Inc.International Journal of Economics,Commerce and Management,3(6),955-961.Kim, M., &Park, J. (2011, February). Demand forecasting and strategies for thesuccessfully deployment of the smart TV in Korea. InAdvanced Communication Technology (ICACT), 2011 13thInternational Conference on(pp. 1475-1478). IEEE.King, R. K.(2004). Enhancing SWOT analysis using triz and the bipolar conflict graph acase study on the Microsoft Corporation.Proceedings of TRIZCON2004, 6th Annual Altshuller Institute.Yksel, I.(2012). Developing a multi-criteria ending making model for PESTEL analysis.International Journal of Business and Management,7(24),52-66.