STRATEGIC MANGAMENT IA-1
19BMSR0011 – Nisha Ramdas
19BMSR0013 – Ameya Kamath
19BMSR0140 – Oormila Uthaman
19BMSR0217 – Akshay Krishnadas
19BMSR0220 – Melwin Manoj
SWOT and Porter's Five Force
Analysis of Samsung, Walmart
and Netflix
SWOT ANALYSIS OF SAMSUNG
STRENGTHS
1. Dominates the Smartphone Market - Samsung has dominated the
smartphone market for years.
2. Research and Development - The foundation of Samsung has always
been on Innovative research and development.
3. Award Winning Brand - Samsung’s position as a pioneer for innovation
is backed with credibility. Samsung has won many awards for its offerings.
4. Stronghold in the Asian Markets - Samsung retains a stronghold in the
Asian markets, particularly India and China.
WEAKNESSES
1. Product Failures - Any product that threatens the life of consumers
erodes confidence and trust in the company.
2. Hereditary Leadership - Since its founding, Samsung has always been
under the leadership of the family for three generations.
3. Decline in Smartphone Sales - Samsung has been experiencing a decline
in smartphone sales since 2017.
OPPORTUNITIES
1. Diversification and Acquisitions - It is critical that Samsung
avoids the mistake of being limited to just one marketplace.
2. Introduce Innovative Products - The smartphone sector is
highly dynamic, with the latest trends going out of style in an
instant.
3. 5G Technology - As the world moves to 5G, Samsung has the
capacity and know-how to exploit this opportunity.
THREATS
1. Increased Competition- Competition from opponents
especially from those within the consumer electronics,
smartphone products, and computing industries has reached a
record high.
2. Rise of Counterfeiting- According to numerous research
studies, Samsung is by far the most counterfeited phone brand.
3. Patent Infringement Controversies - Samsung has been
involved in controversies that have threatened its business.
SWOT ANALYSIS OF WALMART
STRENGHTS
1. Global presence – Walmart has 11,484 stores and clubs operating in
27 countries under three business segments: Walmart U.S., Walmart
International, and Sam’s Club.
2. ‘Every Day Low Prices’ strategy – Walmart uses an Everyday Low Price
(EDLP) pricing strategy in their revenue model.
3. Effective adoption of e-commerce – Mostly, the company depended
heavily on instore sales. Walmart’s sales increased to an all-time high
during the pandemic.
WEAKNESSES
1. Employee treatment and working conditions – Walmart has received
criticisms and lawsuits several times regarding its workforce.
2. Gender discrimination – A lawsuit was filed against Walmart in 2007
that allegedly claimed gender discrimination in job opportunities at
Walmart.
3. Imitation – Walmart’s business model can be easily copied.
OPPORTUNITIES
1. Expansion to other markets – Walmart can gain the opportunity by
expanding its business to the markets which are not yet ventured.
2. Home Delivery Improvements - Walmart’s biggest competitor Amazon
has developed this feature so much that Walmart lacks behind it.
3. Additional Food Sections - Walmart does not sell fresh food as in a
grocery store. If it does, it can also challenge and be a competitor to
supermarkets.
THREATS
1. Small-scale online e-commerce companies – Many small-scale and
individual online selling companies have entered the market offering
similar products at similar prices on their websites.
2. Technical issues on the website – Customers have complained many
times that there are some technical issues with Walmart’s website.
3. Copies of its Strategy and Business Model - Most of the world’s biggest
retailers actually take their business models from Walmart. Retailers such
as Target, Costco, TESCO and Carrefour accepted and adapted these
methods into their business models as well.
SWOT ANALYSIS OF NETFLIX
STRENGHTS
1. Exponential Growth – In the past ten years, Netflix has become an influential
brand for online streaming content not only in the US but across the world.
2. Global Customer Base – There are over 167 million subscribers of Netflix, and it
gives the company a strong bargaining power with the studios for securing
exclusive content.
3. Originality – Netflix has been producing original content over the years with the
highest quality
WEAKNESSES
1. Limited Copyrights – Netflix does not own most of its content, and this affects
the company negatively.
2. Increasing Debt – Netflix keeps adding to its long-term debt to fund new
content. The increase in debt every year is a major weakness.
3. Over-dependence on the North America Market – Even though Netflix
operates globally, it relies heavily on the North American market. This is a major
weakness because the North American Market is nearing saturation.
Company Name- Netflix Inc.
CEO- Reed Hastings, Ted Sarandos (co-
CEO)
Year Founded- 1997
Founder- Reed Hastings, Marc
Randolph
OPPORTUNITIES
1. Low – Price Mobile Streaming Option – Netflix can offer a
lower-priced option to entice and retain subscribers in the
international market.
2. Exploit Ad-Based Model – Netflix can boost its revenue by
adopting an advertising-based business model.
3. Expand Global Customer Base – With such a huge current
subscriber base, Netflix can tap into many other countries and
expand its services and subscribers.
THREATS
1. Competitive Pressure – Netflix is not the only one which
provides digital streaming around the world. Its competitors keep
increasing every year.
2. Piracy – Digital piracy is still at its peak as thousands of people
around the world find ways of downloading media content
because of high monthly costs which they cannot afford.
3. Market Saturation – Netflix will find it harder to add new
subscribers in the future due to market saturation.
Porters Five Force Analysis of Samsung:
1. Competition: The electronics manufacturing
industry is massive with an annual revenue of over 1
trillion USD.
2. Bargaining Power of Buyers: It is highly strong
because of the options available to the consumers such
as Apple, HTC, Huawei etc.
3. Bargaining Power of Suppliers: The
suppliers have moderate bargaining strength
as they have invested massively and it’s not possible for
the suppliers to run the operations without supplying to
these giants.
4. Threat of New Entrants: It is low because of
many factors that create a hurdle for those new
entrants.
5. Threat of Substitutes: It is high as
technology is continuously evolving and it has replaced
and developed the substitutes of different products.
Porters Five Force Analysis of Walmart:
1. Competition: The intensity of the rivalry among the retail
industry is very high and fierce with various players such as
Target, Costco, Sears etc.
2. Bargaining Power of Buyers: The consumers do not often
have high bargaining power as individual consumers usually do
not make big purchases.
3. Bargaining Power of Suppliers: It is very insubstantial in
Walmart’s case, mainly because of the scope and size of the
business.
4. Threat of New Entrants: It is very low as it exerts the
medium level of pressure on Walmart.
5. Threat of Substitutes: Threat of the substitute products is a
weak force for Walmart and irrelevant because of the broad
range of items sold by the retailer.
Porters Five Force Analysis of Netflix:
1. Competition: The media and entertainment industry have intense level of competitive
rivalry with Amazon being the main direct competitor.
2. Bargaining Power of Buyers: The industry dynamics allows the customers to have a high
level of bargaining power over the service providers.
3. Bargaining Power of Suppliers: The suppliers can be viewed as holding high bargaining
power owing to the few numbers of entities producing media and entertainment-based
content.
4. Threat of New Entrants: The presence of new entrants become a threat when the
industry has dynamics that support the business to become well established and profitable.
5. Threat of Substitutes: The substitute products pose moderate level of risk in the media
and entertainment industry such as rental DVD’s and online streaming.