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SWOT Analysis Of Samsung 2020

Introduction

In 1938 Samsung was established by Lee Byung-chul as a grocery store. The firm later diversified into a sugar refinery. In the 1960’s they entered the electronics industry by the 1970’s they started selling washing machines, televisions and microwave ovens. Today Samsung is a large producer of mobile phones and tablets and their brand is now a common household name.

The article below examines the SWOT analysis of Samsung.

Strengths

Wide Product Portfolio
Number one market share for mobile phones globally according to Statistica.com
Wide product portfolio
Number one market share for mobile phones globally according to
Largest Producer of TV Screens in the world
Strong brand name
Strong brand loyalty
Samsung S11 phone will have the added benefit of bigger and faster ram
Innovative organisation at the forefront of new technologies and ideas.

Weaknesses

Competitors are catching up in the smart phone market. Huawei had 19% market share in Q1 of 2019 and Xiaomi has 8%
Apples brand strategy is more effective than Samsung, Apple has a stronger brand loyalty then Samsung, resulting in Samsung having to spend more on promotion in order to attract customers away from Apple. (find facts)
Smart phone sales declining, consumers are less reluctant to update their phones on a yearly basis because of the cost of the phone, the lack of excitement from upgrading and the little technological difference in up dating their phones.
Curved TV range and 3d range turned out to be a flop.
Mobile Phone main source of income.

Opportunities

To diversify. With the mobile phone market saturated and consumers buying alternative brands their is an opportunity for Samsung to diversify into new areas e.g. electric cars to balance their product portfolio and take advantage of opportunity of growing markets.
To take advantage of developing markets such as Africa and India.
The middle class market is growing around the world this could result in an increased opportunity for Samsung to further sell their products.

Threats

As the middle class are becoming more financially squeezed and stretched in some markets they are more likely to opt for alternative brands such as Xiaomi and Huawei
Apple is still the dominant player within the market.
Technology has reached a stage where consumers do not feel they have to upgrade every year
The Corona Virus could have an impact on the production of Samsng phones as a small percentage are made in China.

Conclusion

The SWOT analysis of Samsung gives us a general idea of the current situation of the company. Samsung faces a challenging time from it's competitors and market that is continuingly changing/

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