Samsung Opportunities and Threats

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The threat of increased competition is a major concern for Samsung as more companies may enter the market, especially with the ease of making smartphones. Samsung’s product lines are linked, so if one fails, others will also suffer. Competitors like Nokia have focused on one segment and put more effort into it. Samsung also faces threats from low-cost companies, such as those producing products in China. Samsung has set up production plants in low-cost areas that are subject to political and economic instability. Government legislations are now active against innovative technology due to health and mental concerns. The Korean government recently halted plans for Samsung’s Life Insurance division to go public due to legal concerns. Samsung is experiencing difficulties in safeguarding its intellectual property rights. On the other hand, Samsung has opportunities for investment in the supply chain and international expansion, such as India and Eastern Europe. Samsung distinguishes itself from competitors by providing distinguished services and introducing unique products.

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Threat Increased competition Smart phones are easier to make now more than ever. More companies may enter the market, and competitors or even Samsung contractors can maneuver around patents to create similar devices. Samsung has linked product lines, which means that if one product line fails due to its own reasons other product lines will also suffer. Unlike Samsung, their competitors like Nokia has only focused in one segment and put much effort on it. Besides, the products made from China was very economic so Samsung could have a high competitive with their products.

Retail chains like “Big bazaar” sell consumer electronics and home appliance in low cost strategy which produced in bulks foreign market. Therefore Samsung is also facing threats from many other low cost companies. But top competitors of Samsung Group are LG Corp. , SK Group and Hyundai Corporation. Risks of Samsung plants Samsung has set up production plants in low cost areas, which are subject to ample political and economic instability. These instabilities can have an impact overall company it the crisis gets unmanageable. Health of Users

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Many government legislations are now active against the innovative technology due to health and mental concerns. Regulatory Issues and Safeguarding of Intellectual Property Rights The regulations and legal frameworks in place in Korea have created problems for the Group as the Korean government recently halted plans for its Life Insurance division to go public due to legal concerns. With the large number of new products being designed and marketed each year, Samsung is also experiencing difficulties in safeguarding its intellectual property rights which are vital in retaining competitive edge. Opportunity Investment in Supply Chain

In 2002 and 2003, Samsung has invested heavily in research and development, production, and marketing. The group intends to build a 24-hour research and development system which will continuously develop and stimulate demand. Production investment will boost efficiency and the major marketing campaigns embarked upon should add value to products and increase brand awareness through the promotion of the DigitAll brand. International Expansion In order to broader their market in global, Samsung has investigated a new technology known as “Triple protection proposition”. This idea was to make their air-condition product category more strong.

Besides, Samsung is currently preparing to enter pioneer markets such as India and Eastern Europe. Samsung is the India’s official ‘Olympic partner’ for the 2012 London Olympic and recently launched ‘Olympic Ratna Program’ so this enhance brand awareness and increase their sales. Samsung Mobile and Home appliance has future plans of launching Customized products for Indian market. The market share in rural market will be improved by those plans. Since the Indian youth population is growing, mobile phone sales is expected to increase due to lesser call rates. Services and product variation Samsung distinguish its service from competitors.

Through making itself distinctive form competitors, it can gain more market share. By providing distinguish services, it can increases its customer base. Besides, Samsung can attract its target market and get more shares by introducing unique products and existing product with variety. Samsung could make an effort to launch creative products first, rather than after its competitors.

Reference Samsung Group. (1 March2004) http://www1. pu. edu. tw/~acchang/courses/IBANA/IBA221. pdf (2012, 02). Samsung: from Gallop to Run. StudyMode. com. Retrieved 02, 2012, from http://www. studymode. com/essays/Samsung-From-Gallop-To-Run-921136. html

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