Detailed information about how samsung evolved and is currently funcitoning

2. SAMSUNG BUSINESS MODEL
UJWAL & DHRUV

3. CONTENTS:
 Company profile
 Samsung strategy evolution
 SWOT analysis
 Sales
 Porters five forces analysis
 Competitive advantage

4. COMPANY PROFILE
Founder : Lee Byung-chul
Founded : 1st Mar 1938
HQ : Samsung Town, Seoul, South Korea
Revenue : US $224.64 Billion
Employees : 489,000 (2014)
Divisions : Samsung Electronics, Samsung C&T
Corporation, Samsung Heavy Industries, etc

6. Strengths
• Innovative designs
• Integration of open source
operating system and software
• Low production cost
• Recognized Brand & Brand
reputation
• Too large product diversity (
stability on sale)
Weakness
• Low profit margin
• Damaging image by infringement
• Less quality than Apple
• Lacking of own operating system
• Large dependence on other
software
Opportunities
• Indian smartphone market is
growing
• Demand fir technologically
advanced phones is growing
• Strong financial position for
future
• Acquisition of new companies
Threats
• Large number of competitors
• Strong competitors like Apple
• People looking for better quality
nowadays
• Large number of products, failing
one will affect another
• Threats of Chinese, Taiwanese,
and Indian products
SWOT

7. SALES

8. Supplier power
• Suppliers have less power as
Samsung is a large company
and suppliers depend on it
for sales
Buyer Power
• Switching cost low
• Can compare other brand
before purchasing
Threats from
Substitutes
• Apple
• Sony
• LG
Threat of New Entrants
• Threat is low as building
such a large brand is not
easy
Competitive Rivalry
• Intense competition in the
electronic industry against
strong brands such as Apple,
Sony, LG & Tosibha
PORTER’S
FIVE
FORCE
ANALYSIS

9. Competitive Advantage
Vertical Integration
Vertical integration is a
strategy that expands the
production and distribution
roles of a company in the
supply chain of a particular
industry