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Samsung is a conglomerate multinational organization that has emerged from South Korea and is headquartered in Seoul, South Korea. The sector has been entitled as the global electronics manufacturer. Regarded as an amalgamated industry, Samsung comprises several affiliated businesses which include Samsung Electronics, Samsung Engineering, Samsung C&T Corporation, Samsung Insurance, Cheil Worldwide Inc., and others. Being one of the largest creators of electronic devices, Samsung has become an appreciable brand in technology and has supported the financial growth of South Korea by cultivating profit through export. Avail our samsung case study help and keep academic worries away.  According to the report of CNN in 2017, Samsung has conserved 15% of the South Korean GDP. The brand beholds 20% of its market value on the Korean Stock Exchange. Samsung Electronics is the most celebrated venture of the brand. Innovation has been the prime objectivity of Samsung to retain its brand reputation. Through the evolution of time and technology, Samsung has adhered to specialization in the development of profusion industrial and consumer electronics, such as digital devices, memory chips, home and kitchen appliances, and integrated systems.

Samsung has initiated its industrial journey since 1938 by Lee Byung -Chull with the establishment of a grocery trading store. In the early years, the business of Samsung Group relied on the transportation of groceries across the country and exporting them to China. During the prolongation of the 1970s, the company has conserved expansion in the genre of textile production. Tophomeworkhelper.com is one of the leading assignment help providers on the internet.  Samsung has produced new subsidiaries, like Samsung Shipbuilding, Samsung Heavy Industries, etc, to support the organizational growth. From the late 1970s, Samsung has adopted a rapid expansion in the technological field. In 1969, the brand has introduced black and white televisions as their first electronic products. Since the manufacturing of electronics, Samsung has begun overseas exportation which has triggered the development of several electronic divisions. The orientation of the Samsung Data System in 1985 has helped the brand to capture the leading position in information technology. In the contemporary time, Samsung has launched numerous electronic devices and systems, however, the Galaxy smartphone series has enraptured the maximum popularity which has influenced the brand to produce Galaxy Tab or tablet computers to expand the series.

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Samsung PESTLE Analysis:

PESTLE analysis is a framework that helps to evaluate the external key factors which can influence or affect organizational growth. It delivers insights regarding the impact of external factors on the brand. PESTLE is the acronym for political, economic, social, technological, legal, and environmental factors.

 

Political factors:  

Political stability plays a crucial role to make a sector successful as it helps to retain the balance between profit and expense. Samsung has confronted political fervour in South Korea during the presidential campaign in 2002. During the election, Samsung has sent billions of won to the Uri Party and the Grand National Party. The involvement of Samsung in the political conflict has created a manipulative brand image. Moreover, the heir of Samsung, Jay Y. Lee has been sentenced to five years of imprisonment in 2017 for embezzlement and bribery, which is also related to the political scandal of the former Korean president. Certain countries like Germany have seized Samsung from selling their due to its involvement in political conflict.

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Economic factors:  

The South Korean currency can be entitled as a large factor behind the success of Samsung. In 2014, the decline of Korean currency has reduced 25% profitability of the brand. Apart from this, blast complaints have been charged globally against high-end smartphones of Samsung which has also taken a toll on the captivation of profit. Especially, the Galaxy Fold series has become a massive disaster for Samsung which has redeemed the profit expectancy to 56%. Though the economic pillar of Samsung has witnessed turbulence, however, Samsung has conserved its leading position in the South with the market capitalization of 514.112 trillion won.

 

Social Factors:  

Samsung is a Korean-family-oriented business. To sustain the brand reputation, Samsung must understand the requirement of its consumers and audiences. In the contemporary time, most of the rival brands have voice assistance, like Siri or Google Voice Assistance, Samsung must develop its own pre-built voice program to gain a competitive advantage. The understanding of its customers from different regions has helped Samsung to customize products according to the demand and culture of the countries.

 

Technological factors:

Samsung has been considered as one of the massive global tech giants. The brand is the pioneer of different technological equipment and systems. However, Samsung has confronted duplication charges from its most rival brand, Apple, which has been dragged to court and enforced the company to deal with brutal criticism. Moreover, Samsung has to deliver high compensation to Apple to mend the allegations. Technological development brings the risk of manufacturing errors. The models of Samsung Galaxy Note 7 have comprised the issue of overheating which has triggered the batteries to explode. The blasting charges have affected the brand image of Samsung.

 

Legal factors:  

Samsung has dealt with severe controversies and allegations. It has witnessed series of penalty enforcements for the imitation charges by Apple or corruption charges in South Korea. The recent events have developed a pessimistic impact on Samsung; however, the company has managed to sustain its reputation. Our assignment experts analyse all the elements thoroughly to provide a clear idea about the brand’s performance. 

Environmental factors of samsung:  

Samsung has played an active role to reduce the emission of greenhouse gases. The brand has adhered to the initiative of the Kyoto Protocol to decline the emission. Samsung has become a bright name in the tech world to support the initiative of sustainable development. The brand has created an environment-friendly business model to prevent Global Warming.

Samsung SWOT Analysis:

SWOT analysis is an industrial framework which helps to evaluate the strength, weakness, opportunities, and threats.  

 

Strength:  

Samsung has developed supremacy in the smartphone industry. According to recent reports, Samsung has conserved an 18.5% global market share, whereas Apple has captivated a 13.7% share. Additionally, Samsung has built its empire on the fundamentals of innovative research and development. The brand has developed 34 Research & Development centers globally. Expenditure on innovation has helped Samsung to capture credibility. Samsung has been awarded by Consumer Electronics Show fourteen consecutive times for its contribution to technology. Moreover, Samsung has embraced sustainability as an organizational feature. It has secured the ninth position in the Green Power Partner list by Environmental Protection Agency. Being a South Korean brand, Samsung has concentrated immensely on Asian countries, especially India and China. The overpopulation of these countries helps Samsung to achieve the prospective organizational goals.  

 

Weakness:  

Though Samsung has diversified its operations globally, it majorly depends on the American markets. The unpredictable circumstances of the American market result in the decline of Samsung’s revenue. Samsung has encountered several situations of smartphone sales decline. The price sensitivity of China has reduced the sales of the smartphone. Moreover, the legal charges have also downed the stakes of sales. Several countries have claimed that Samsung has delivered defective products for its Galaxy Fold and Galaxy A20 series. Furthermore, the hereditary leadership of Samsung has lacked the company to cultivate modish- fresh ideas for development.

 

Opportunity:  

Samsung has focused to launch its new air-conditioning series of Triple Protection Proposition. Samsung uses it as an opportunity to target a particular customer base and maximize their retention. The company must utilize its human resource department to create new ideas regarding brand reputation. Diversification can be exploited as a major opportunity for Samsung as it helps to identify a new customer base that can generate impressive economic standings. In the contemporary period, 5G technology has introduced several possibilities for development. Samsung has generated active discussions with its operators to imply 5G and 6G network equipment.

 

Threat:

The patent infringement allegation from Apple has severely damaged the reputation and sales of Samsung. The evolution of time and technology has increased competition in the electronic market. Apple, Huawei, Xiaomi are outmanoeuvring technological creations of each other which increases the competitive pressure for Samsung. Samsung runs a global business which creates the potential threats of different legislations. Different regulations from different markets can create a hindrance in the operations of Samsung. Moreover, Samsung has encountered threats from counterfeiters. Researches have shown that Samsung is the most counterfeit brand across the globe.

Recommendations:  

  • Samsung has focused to create a divergent range of products to provide each customer a choice, however, the excessive launches of Samsung in the same series create confusion within the customers. Samsung must reduce the number of models for each series.
  • A joint venture will help Samsung to understand the local market. Collaborating with the regional brand will support Samsung to utilize it as a market entry strategy.  
  • Rather than developing different models, Samsung must focus on its software development and services. The fluent up-gradation of software will help Samsung to make integral customers.

Conclusion:  

Hence, summing up, it can be said that, Samsung has maintained its reputation as one of the leading technology brands across the world. Though the company has confronted several threats and drawbacks, yet, it has managed to retain its brand identity. Regarded as an innovative brand, Samsung has captivated consumers by delivering creative products and systems. Moreover, constructing products for different types of customers helps the brand to gain integrity for its users. The PESTLE analysis of Samsung has revealed that South Korean customers have created a positive impact on the organizational growth of Samsung. The company must monitor its products trivially to restrict the deliverance of faulty products. The external and internal analysis of the brand has reflected the organizational growth and opportunities of Samsung

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