Table of Contents
1) Executive summary 1
2) Introduction of the company 1
3) External assessment 2
4) Internal assessment 2
5) Strategic analysis and formation 2
6) Strategic Choice 3
7) Implementation 3
1) Executive summary
2) Introduction of the company
Samsung Electronics is an international electronics company and is a flagship subsidiary of the Samsung Group. Samsung was founded by Lee Byung Chull in 1938 as a trading company then later in 1969 Samsung Electronics was established. They produced televisions, mobile phones, radios, computer components and other electronics. It has been globally recognized as an industry leader in technology. It is now ranked as a top 10 global brand. Although they are a leader in technology there are other companies that offer the same type of products and compete against each other. The biggest competitor for Samsung Electronics is Apple. Since 2011 they have been competing against each other with their smart phones. Samsung Electronics mission seems to be focused in building its brand and becoming a leader in new markets. Samsung Electronics vision for 2020 is, “Inspire the World, Create the Future.” The vision Samsung Electronics has is based on the idea that with technology innovation we can create solutions for issues that may occur in the future.
3) External assessment
• Samsung has sometimes been subjected to political action law suits.
• In 2007, America hit a recession that affected the sales of Samsung phone in the US negatively. The change in dollars and changes in market also affects the sale of Samsung phones.
• Consumers around the world believe that Samsung produces the best smart phone.
• Samsung is ranked as one of the most innovative companies.
• Samsung has started to contribute to the perseveration of the environment by doing business that puts Earth first.
• Samsung has been subjected to copyright law suits.
Five Forces Model:
1. Threat of Substitutes
• High because there are many similar products on the market.
2. Threat of Rivals
• Hugh because there is a fierce competition with Apple, HTC, etc.
3. Threat of New Entrants
• Low because it is hard to build a big brand.
4. Bargaining Power of Suppliers
• Low because Samsung is the market leader.
5. Bargaining Power of Customers
• High, low switching cost
4) Internal assessment
5) Strategic analysis and formation
6) Strategic Choice