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Latest posts by Mariam Peyton (see all)

    Samsung electronics is a technology company majorly dealing in the design, manufacture and marketing of smartphones, tablets and personal computers. The global smartphone market is a prominent oligopoly with both high-end and low-end players. Samsung being a high-end market player faces intense competition from Apple and low-end players like Huawei, Xiaomi who are affecting its market share. In 2017, Samsung had a global smartphone shipment market share of 21.6% with major competitors Apple and Huawei having 14.7% and 10.4% respectively (Statista 2018f). Various external factors affect the growth of Samsung and by using a pestle analysis, we realize how the political factors like the 3% increase in corporate taxes in South Korea threatens its profits, how high economic growth in US affects Samsung and how the Chinas growing population of the elderly and the middle class affects its profit margins. In addition, we look at how developments in technology can favor further growth of Samsung. Using swot analysis, we identify Samsung’s major strengths that can be deployed and weaknesses that can be improved upon to deliver products that meet consumer demand.

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    Samsung Strategy Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:
    • Understand the broad macro-environment of Samsung and the global smartphone industry in terms of political, economic, social, technological, environmental and legal factors (PESTEL/PEST/STEEPLE).
    • Use our swot analysis example to gain an overall understanding of Samsung's strengths and weaknesses and strategic options arising from the opportunities and threats that have been identified from the Pestle analysis example on it's business environment.
    • To apply strategy business models and frameworks such as Pestle/Pest/Steeple, Swot etc to real company cases.

     

    Analyse the macro environment of Samsung and the smartphone industry using Pestle followed by a Samsung Swot Analysis

    1.0 INTRODUCTION


    Samsung is a South Korean company with its headquarters in Samsung town, Seoul. It mainly deals with the design, manufacture, and marketing of smartphones, tablets, microchips, laptops, washing machines, among others. Founded in 1938 by Lee Byung-chull as a trading company and later developed into a big business empire. Samsung has many subsidiaries such as Samsung electronics, Samsung heavy industry, Samsung life insurance, among others. It is one of the largest businesses in South Korea producing approximately 5th of the country’s total exports mainly electronics, heavy industry and defense industries (Burris 2018).  

    Samsung operates in 73 countries worldwide including the USA, UK and China where it has market shares of 29.5%, 35% and 2.2% market shares respectively with major competitor Apple having 45%, 37% and 17.4% market shares respectively (Samsung Newsroom 2018). In 2017, Samsung electronics had a $222.82billion global revenue that was an increase from its $187.74billion revenue in 2016 according to Statista (2018b).

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