Samsung has grown from a small export business to one of the world's leading electronics companies. The document provides a history of Samsung and an overview of its business, including its vision, mission statements, and SWOT analysis. It also analyzes Samsung's position in the smartphone market and provides recommendations for its strategy going forward, such as developing its own software platform and targeting emerging low-cost smartphone markets.

1. SAMSUNG SWOT ANALYSIS
M. UMAIR ARSHED

2. SAMSUNG HISTORY
From its inception as a small export business in Taegu, Korea, Samsung has grown to become one of the
world's leading electronics companies, specializing in digital appliances and media, semiconductors,
memory, and system integration. Today Samsung's innovative and top quality products and processes
are world recognized. This timeline captures the major milestones in Samsung's history, showing how
the company expanded its product lines and reach, grew its revenue and market share, and has
followed its mission of making life better for consumers around the world.

3. SAMSUNG COMPANY PROFILE
South Korean company, founded in 1938
Largest chaebol
Total revenue € 185.1 bn (2012)
Samsung Electronics largest SBU, revenu € 140.5 bn (2012)
CEO is Dr. Oh-Hyun Kwon
72 Countries
206,000 employees

4. SAMSUNG SMART PHONES
First SE mobile phone in 1988
Apple introduces smartphone in 2007
SE smartphones unsuccesful at first
3.7% market share at the end of 2009
Google Android launched in 2010
Samsung Galaxy S in June 2010
Market leader in 2012, with 215 m units

6. VISION STATEMENT :
Definition:
“Vision is a statement that expresses organization’s ultimate objectives.”

7. MISSION STATEMENT OF SAMSUNG
“At Samsung, we follow a simple business philosophy: to
devote our talent and technology to creating superior
products and services that contribute to a better global
society.”

8. MISSION STATEMENT OF SAMSUNG
Evaluation
Does it include…? Does it mention values like…?
Customers
Products/
Services
Markets Citizenship Teamwork
No No Yes No No
Technology
Concern for
survival
Philosophy Excellence Integrity
Yes No No No No
Self-concept
Concern for
public image
Employees
Score 1.6/4.5No Yes No
Customer or product-oriented?
Customer-oriented

9. DIFFERENCE BETWEEN VISION AND MISSION STATEMENTS
Vision Mission
Purpose
Tells what an organization aims to
achieve.
States what a company is currently
doing.
Answers the question What do we want to become? What do we do?
Includes •Objectives
•Values
•Customers
•Products/Services
•Markets
•Technology
•Concern for survival
•Philosophy
•Self-Concept
•Concern for public image
•Concern for employees
Future or present time? Talks about the future Talks about the present
To whom it is developed? Employees of the company
Employees, customers, suppliers,
distributors, partners and communities
Which one is created first? Developed first Developed only when vision is available
How often does it change?
Rarely changes because most of
objectives takes years to achieve
Product-oriented missions change every
time when a company decides to venture
into new product market.

10. OVERVIEW
Samsung’s statement is clearly too short and doesn’t provide enough information about what the
company does or why it does it. The statement was evaluated 1.6 points because it only includes three
essential components out of nine and has a customer-oriented philosophy. Customer-oriented
statement defines organization’s purpose in terms of meeting customer needs rather than focusing on
what products to produce and services to serve. Samsung also doesn’t mention in their philosophy
any of the values we use in our evaluation but the company provides them separately:
People
Excellence
Change
Integrity
Co-prosperity
These values show what guides Samsung’s actions and decisions. The company mentions excellence,
integrity and co-prosperity (or citizenship) as their values, which should have been included in their
mission as well. In overall, Samsung’s philosophy does a poor job in revealing its core purpose to
company’s stakeholders.

11. PEST& PESTEL ANALYSIS
PEST analysis
Political Economic
•Government stability and likely changes
•Bureaucracy
•Corruption level
•Tax policy (rates and incentives)
•Freedom of press
•Regulation/de-regulation
•Trade control
•Import restrictions (quality and quantity)
•Tariffs
•Competition regulation
•Government involvement in trade unions and
agreements
•Environmental Law
•Education Law
•Anti-trust law
•Discrimination law
•Copyright, patents / Intellectual property law
•Consumer protection and e-commerce
•Employment law
•Health and safety law
•Data protection law
•Growth rates
•Inflation rate
•Interest rates
•Exchange rates
•Unemployment trends
•Labor costs
•Stage of business cycle
•Credit availability
•Trade flows and patterns
•Level of consumers’ disposable income
•Monetary policies
•Fiscal policies
•Price fluctuations
•Stock market trends
•Weather
•Climate change

12. Socio-cultural Technological
•Health consciousness
•Education level
•Attitudes toward imported goods and services
•Attitudes toward work, leisure, career and
retirement
•Attitudes toward product quality and customer
service
•Attitudes toward saving and investing
•Emphasis on safety
•Lifestyles
•Buying habits
•Religion and beliefs
•Attitudes toward “green” or ecological products
•Attitudes toward and support for renewable
energy
•Population growth rate
•Immigration and emigration rates
•Age distribution and life expectancy rates
•Sex distribution
•Average disposable income level
•Social classes
•Family size and structure
•Minorities
•Basic infrastructure level
•Rate of technological change
•Spending on research & development
•Technology incentives
•Legislation regarding technology
•Technology level in your industry
•Communication infrastructure
•Access to newest technology
•Internet infrastructure and penetration

13. Ethical Demographic
•Ethical advertising and sales practices
•Accepted accounting, management and
marketing standards
•Attitude towards counterfeiting and
breaking patents
•Ethical recruiting practices and
employment standards (not using children
to produce goods)
•Population growth rate
•Immigration and emigration rates
•Age distribution and life expectancy rates
•Sex distribution
•Average disposable income level
•Social classes
•Family size and structure
•Minorities
Environmental (ecological) Legal
•Weather
•Climate change
•Laws regulating environment pollution
•Air and water pollution
•Recycling
•Waste management
•Attitudes toward “green” or ecological products
•Endangered species
•Attitudes toward and support for renewable energy
•Anti-trust law
•Discrimination law
•Copyright, patents / Intellectual
property law
•Consumer protection and e-
commerce
•Employment law
•Health and safety law
•Data Protection

14. PORTERS FIVE FORCES ANALYSIS
Threat of new entrants
High, mainy Chinese competitors
Threat of substitutes
High, many similar products on the market
Customer power
High, low threshold for switching
Supplier power
Low, Samsung market leader
Competitive rivalry
High, fierce competion with Apple, Sony, SK Hynix, etc.
Complementors (sixth force)
Open Handset Alliance (OHA): Android OS
Apple, market creator, large customer

15. BENCHMARKS: SAMSUNG GALAXY NOTE II VS APPLE
IPHONE 5

16. COMPETITIVE PROFILE MATRIX (CPM)
Android OS
iOS Windows Phone
Critical Success
Factors
WeightRating Score Rating Score Rating Score
Market share 0.13 4 0.52 2 0.26 2 0.26
Number of apps in
store
0.10 4 0.40 4 0.40 2 0.20
Frequency of updates 0.06 3 0.18 4 0.24 2 0.12
Design 0.07 3 0.21 3 0.21 3 0.21
Product brand
reputation
0.05 3 0.15 3 0.15 2 0.10
Distribution channels 0.11 4 0.44 2 0.22 3 0.33
Usability 0.11 3 0.33 3 0.33 3 0.33
Customization
features
0.04 4 0.16 2 0.08 2 0.08
Marketing capabilities 0.04 2 0.08 4 0.16 2 0.08
Company brand
reputation
0.10 4 0.40 4 0.40 3 0.30
Openness 0.02 4 0.08 2 0.04 2 0.04
Cloud integration 0.12 4 0.48 2 0.24 2 0.24
Rate of OS crashes 0.08 1 0.08 4 0.32 3 0.24

17. BCG GROWTH-SHARE MATRIX

18. SWOT ANALYSIS :

19. SWOT ANALYSIS :

20. SWOT ANALYSIS :

21. SWOT ANALYSIS :

22. SWOT ANALYSIS :

23. SWOT ANALYSIS :

24. MARKET ANALYSIS
Key Issues:
Samsung performs as flanker, not as leader
Looses market share in emerging
smartphone markets to cheaper
brands (China -6% 2011-2012)
Needs to develop further
software of its own, vulnerable
to Google’s power

25. MARKET OVERVIEW

26. STRATEGY RECOMMENDATIONS
Samsung must position
itself as market leader and
resume its current strategy
concerning product
innovation and market
divided segments in
Western Market (including
their power in the supply of
smartphone components
and marketing to revenue
ratio), because

27. Samsung must research and develop its own software platform,
because

28. Samsung must attack and enter the growing segment of cheaper smartphones
and especially conquer China and be heavily invested in India (long term
growth), because both countries will enlarge the smartphone market as a
whole and have the need for a cheaper smartphone

29. SOCIAL RESPONSIBILITY:

30. BROAD DIFFERENTIATION STRATEGY OF SAMSUNG

31. SAMSUNG TWOS
Tows Matrix for Apple
Inc.
Strengths / internal
 Strong brand image provides an edge over
competitors. Net sales of iPhone increased
93% to $25.2 billion. Sales of music and other
related products increased 23% compared to
2009
 Robust financial performance strengthens
investors’ confidence and provides capital
for future growth avenues. The stock price in
the year 2011 alone rose from 200’s to upper
400’s.
 Lack of debt results in higher R&D budget
driving innovation and new product ideas
 Apple Inc. was a leader in gross profit margin
and operating margin in 2011.
Weaknesses / internal
 Patent infringement lawsuit may affect financial
condition and operating results
 Product recalls may harm Apple’s reputation and
add significant warranty and other
expenses.Product recalls were raised of the
iPhone 4 due to antenna problems
 In the suit between Nokia with the International
Trade Commission about infringed patents of the
mobile phones, portable music players and
computers, customers received a free case that
will mitigate the reception problems. This added
additional expenses to the company’s bottom
line.

32. SAMSUNG TWOS
Opportunities / external
 Strong growth in smartphone
and tablet markets to boost
Apple’s revenues. iPhone
handset unit sales increased
by 32.3 million units or 81%
 Robust outlook for mobile
advertising market provides
growth opportunity
 Strong growth in a global
smartphone industry
S/O
 Increase IPhone and related
product sales through online
advertisement. Overall net
sales increased by 66% from
2010
 Apple’s brand recognition
throughout all its markets can
strengthen by the offering less
expensive version of each
product to appeal to lower
income market
 The company did not pay
dividends because it reinvests
the capital in the operation of
the business
W/O
 Global expansion through
Mexico, Portugal, France and
Australia
 Robust outlook for mobile
advertising market provides
growth opportunity
 Creating departament
responsible for recalls and
product warranties to maximize
customers satisfaction

33. SAMSUNG TWOS
Threats / external
 Rising popularity of Google Android
may affect its market share
 Strong foreign market presence of
Hewlett Packard
 Intense competition may affect the
revenues and profitability. Decrease
in iPod net sales of $821 by 10% and
iPod unit sales by 15%
 Dependence on specific suppliers
may affect its operations and
production
 Product substitution and availability
of Samsung tablets
 Global economic conditions could
materially adversely affect the
Company
S/T
 Purchase voice and data network to
complement the smartphone division
will help acquire stronger market
position
 Robust financial performance
strengthens investors’ confidence
and provides capital for future
growth avenues, such as opening
stores and expanding e-commerce
throughout the global market.
 Focused R&D driving innovation and
consolidating its market position.
Apple’s R&D expenditure was $1,782
mil in 2010, an increase of 33% from
2009. This provides the company
with new technological innovations
which can be used in Apple products.
 Form a partnership with Google to
W/T
 Long term agreements between
Apple Inc. and the suppliers to
guarantee production commitments
 Constant promotion of the brand will
create stronger awareness and
demand for products
 Participation in local communities
and charities to create positive image
which was shadowed by lawsuits
 Continue investment in technology in
order to stay ahead of competitors
and become a market leader