Samsung enjoys the widest range of product portfolio which includes Mobile phone, Tablet, TV/Audio/Video, Camera, camcorder, Home appliance, pc, peripherals, printer, memory cards and other accessories * Samsung holds significant market share in most of the product categories * Samsung is NO. 2 in terms of market share in mobiles, it captured Nokia’s market share by superior innovation in smart phones * Samsungs is the best in terms of design features and technology.
It was the first to introduced dual screen mobiles , 65k TFT/LCD colour phone, first phone with polyphonic ringtones, phones with rotating lens, thinnest and lightest note pad etc * Samsung enjoys the first mover advantage in terms of introducing advance features in LCD, refrigerator, Air conditioner etc. It introduced the world’s smallest MP3 player and India’s first 17” TFT-LCD-TV monitor. * Samsung took advantage of the growing economy of Asian market by setting up manufacturing plant in India there by reducing logistics and supply chain costs. Samsung brand value increased by 80% in past three years Weakness * Samsung Mobile launched a series of Smart phones recently which led to cannibalization * The demand for LCD panels is expected to decline in the future * Still Nokia is considered to be the most preferred product in India in terms of ease of use, reliability and resale value * Chinese products focus on economies of scale and dump into Indian market for lesser cost. This results in reduction of sales * Samsung is a hardware leader but has too much of dependence for software from other parties. Online stores which sell a wide range of products are giving better deals as they don’t incur cost in distribution channel Opportunity * Samsung is planning to make the air-condition product category more strong with unique technology called ‘Triple protection proposition’ * Samsung is the India’s official ‘Olympic partner’ for the 2012 London Olympic and recently launched ‘Olympic Ratna Program’. This will result enhance brand awareness and increase the sales * Samsung Mobile and Home appliance has future plans of launching Customized products for Indian market.
This will improve the market share in rural market * The Indian youth population is growing and mobile phone sales is expected to increase due to lesser call rates * Its financial position is strong and there is a scope of entering into unrelated diversification Threats * Samsung has wide variety of product lines, failure of one product line will have impact on the other and will result in brand dilution * The competitors like Nokia are focused focussed only in one segment * Since India is a potential market, entry of foreign players is likely high.
Foreign players like Haier have already started gaining market share in India in home appliances. * Threats from Chinese products * Retail Chains like Bigbazaar sell consumer electronics and home appliance in low cost strategy which are procured in bulks from foreign market Strengths • Samsung has a wide product range, which allows them to grab ample market share from various markets. This allows Samsung to not only earn a high return but it also allows them to diversify their risk and failure. • According to many magazines, Samsung holds a significant portion of the market share in nearly all its products. Samsung is a reputed name and many people are familiar with it around the world. • Samsung has won many awards on its high quality products. • Samsung has the ability and resources to use the latest technology and offer new and exciting features frequently. • Samsung has won many awards due to its ability to make innovative, sleek and slim products • Samsung has set up many production plants in low cost locations, thus they save on cost of production significantly. • Samsung recently has attracted ample positive press, thus its reputation continues to grow and has a positive impact on the operations of the company.
Weakness • Samsung never introduces a new design on its own, it always waits to attack it’s competitors. Thus, it missed the first mover advantages. • Samsung does not charge high price for its products, therefore often people relate the low price to begin a supplier of low quality products. General perception supports that the higher the price, the higher the quality of products. • Many Samsung products are not user friendly, therefore consumer often hesitate to switch to Samsung products even if the price and quality is exceptional. Samsung does not focus on a specific niche; it offers its products to the mass market only. • Samsung does not create its own software therefore it often relies on other sources to complete the products. • Samsung faces immense competition from new companies and online companies. • High set up and operation cost for such a company. Opportunities • Samsung should make an active effort to offer unique products to customers, in order to grab more market share. • Samsung could start creating software’s for their hardware devices and reduce outsourcing. Samsung could launch sub brands to the company, with new and improved strategies. • Samsung could launch in countries to tap the needs of consumers. • Samsung could open more stores to serve more customers. • Samsung could make an effort to launch creative products first, rather than after its competitors. • Samsung could increase its product variation in its products. • Samsung should participate in product development and attract more customers. It should also consider participating in various events to attract attention. • Samsung could offer additional services to retain existing customers and attract new ones. Increase in the need for mobile phones, Samsung could exploit this need well. Threats • Samsung has linked product lines, which means that if one product line fails due to its own reasons other product lines will also suffer. • Samsung is very scattered; it controls and operates different products while its competitors use their resources and effort on one segment only. Diversification takes a lot of effort and attention. • 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. • Samsung is facing threats from many other low cost companies. • Various companies have realized the importance of advertising, therefore Samsung will be subject to a lot more competition as advertising creates and draws attention of consumers. • Countries all over the world are experiencing a high cost due to high inflation rates in most locations. • Many government legislations are now active against the innovative technology due to health and mental concerns.
Introduction Samsung is known globally for its electronic products and it is one of the successful brands in the electronic industry. It is an established company almost all around the world. Vision Leading the digital convergence revolution growing to be the best. Strengths Samsung is technologically very advanced; it has heavy assets of technology. It is known for its technologically advanced products. Samsung crushed new product concepts in five months. It is strong corporate brand and known for its quality products and advanced technology use.
It attracts customers by offering new and innovative design through understanding the customers that which type of designs are suitable to customers and what they want or asked about. It heavily invest in technology, product design and human resource, because for the success of every organization human resource plays a major role, with out human resource no product can be made that’s why Samsung gives more important to the human resource. Samsung focuses more towards the innovations and try to keep improving the products to attract more customers and capture more market share.
Weaknesses Although Samsung focuses innovation but it is not proactive to introducing new products, it waits to attack the competitors. It also lacks in product differentiation. Samsung caters mass market instead of niche market so for this purpose it sets low prices of products and low price products seem as low quality products, so Samsung products perceive as low quality as compared to competitors’ products. Most of the Samsung products are not user friendly which is a hurdle for Samsung to make it market leader. Opportunities
Through make itself distinctive from competitors, it can gain more market share. By providing distinguish services it can increase its customer base. Another opportunity is product variation, by introducing unique products and existing products with variety; it can attract its target market and can get more market share. As the demand for the cell phone is increasing as compared to other electronic market, Samsung has the great chance to introduce user friendly mobile phones at affordable price. It would help to beat customers and also to lead market share. Threats
Samsung competitors in electronic market are more dominant e. g. Sony, Panasonic, LG etc in home appliances and Nokia, rim, 3G, etc in mobile phones market so it has to struggle a lot to be the market leader. Telecommunication industry is growing day by day so the no. competitors also increasing so it is difficult for Samsung to establish in that industry, it is more behind in this industry as compared to other electronic items. Samsung advertisement is not excessive while the competitors advertise their products excessively which can take away the existing customers of Samsung.