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SWOT Analysis for Samsung Essay

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Updated: Aug 2nd, 2021


Samsung is a large South Korean electronics company that has global market coverage. This firm was started in 1938, by Lee Byung-Chill as a trading firm. During these years, this firm traded as a retail firm, mostly in apparels. The firm received a massive growth and extending its line of products to include food processing, insurance, textile and securities. The firm was able to grow rapidly because of the enabling environment.

This firm entered the electronics industry in 1960s. The management of this firm had seen some of the benefits of operating in the electronic industry. Technology was becoming relevant, and this firm realized that there were a lot of opportunities in this industry. The management believed that the firm was able to make it through given the kind of labor it had, and the resources it had managed to amass.

In 1970s, this firm entered shipbuilding and construction industry. The management was determined to diversify in as many industries as possible in order to minimize the effect that may arise due to any external factor that may affect any of the industries.

This was one of the first few firms that embraced Total Quality Management as a tool for ensuring that there is constant customer satisfaction. Since then, this firm has received a consistent growth in various sectors it has invested in. this firm currently operates in different units, with each unit in its own industry, and operating semi autonomously. Samsung Electronics is the world’s largest IT Company in terms of revenues earned (Montgomery, 2012).

This unit has been in constant competition with Apple in the Smartphone industry, and given the current trends, it is easier to predict that this firm may soon become the leading manufacturer and distributer of Smartphone. Samsung Heavy Industries is the second biggest shipbuilder on the basis of the revenue earned. Other notable Samsung products include Samsung Engineering which offers various engineering solutions, Samsung Life Insurance which offers life insurance, and Samsung Everland among other products.

SWOT Analysis of Samsung

According to Montgomery (2012), SWOT analysis is always a very important tool that helps in determining the internal ability and weaknesses of the firm, and the opportunities and threats that are available in the external environment. This analysis will help in understanding this firm, and in knowing some of the factors that have propelled it to its current position in the market.

Strengths and Weaknesses of the Company

Samsung has some special abilities that can be considered its main strength in the market. The ability of this firm to diversify in about ten industries which includes electronics, locomotives, insurance, entertainment, transport, among others is a special ability that makes it stand out in the world as one of the few firms to operate in more than ten industries (Samsung mobiles, 2012).

To help it succeed in these industries, this firm has come up with a quality control unit in all its subsidiaries in order to ensure that it delivers quality products to the customer. Ability to deliver quality service to the customer has made it develop a special niche in the market making its products popular across the world.

The firm is also one of the first firms that embraced value chain management (Cheap Samsung phones, 2012). Through this, the firm has been able to continue satisfying its customers at a cheaper cost. The ability of this firm to adopt the emerging technologies has been considered as strength by other firms. Samsung Galaxy is one of its recent products that demonstrates its capacity to deliver special satisfaction to its customers by bringing products that are a little beyond the expectations of the market.

Despite the above strengths for this firm, it has some weaknesses that have impeded its growth to a given degree. One of the main concerns that this firm has not addressed properly is the issue of environmental management. The components of the products of this firm are known to be very dangerous to the environment (Samsung mobiles, 2012). Old phones, television sets, laptops among other products pose a serious challenge to the environment.

This firm has been criticized by a number of scholars, alongside other firms, to be leading in the pollution of the environment. This firm is yet to come up with a clear structure on how it can manage environmental pollution caused by its wastes around the globe (Yodhia, 2013). The firm has claimed that it has been engaging in corporate social responsibility. However, this has not been enough to make the public believe its commitment to a cleaner environment (Cheap Samsung phones, 2012).

Opportunities and Threats

In every industry, there are always opportunities and threats that a firm may come across in the external environment. There are various opportunities that exist for Samsung in its operations in the global market. One of the opportunities that this firm has had is an expansive and unexploited market in the third world countries (Cheap Samsung phones, 2012).

Most of the electronics firms have focused their effort on building a large base of loyal customers in the leading economies like the United States and the European markets. This firm has managed to tap into the emerging markets in African and parts of Asia. The stable economic growth in the major economies means that there is increased opportunity for this firm to increase its sales in such countries as the American markets and the markets in Europe (Cheap Samsung phones, 2012).

This growth of the economy means that the consumers will always have enough to spend on luxurious goods such as Samsung Galaxy. There is an interesting trend in the market where this firm is competing with Apple for the market share of the tablets.

The Samsung Galaxy Note 10.1 and Apple iPad 3 have been competing in the market for supremacy (Samsung mobiles, 2012). Although this may be considered as a threat, this competition has offered the two firms an opportunity to acquire a special niche in the industry, outsmarting some of the former industry giant like Nokia and Motorola.

The emergent of an economically empowered youth around the world is also another opportunity that this firm has been able to exploit (Cheap Samsung phones, 2012). In the IT industry, their main target market is the youth. With an economically empowered youth, this firm can generate a lot of benefits through increased sales.

There are threats that exist in this industry that is worth noting. Technology is probably the main threat that this firm faces in this industry. Samsung has used technology to reach its current position. It is one of the few firms that have managed to adapt to the emerging technologies very fast.

However, it is a nightmare trying to figure out what some of the competitors can do with this same technology. Another threat that this firm faces is the stiff competition posed by rival firms. This industry is one of the most competitive industries in the world (Samsung mobiles, 2012). Any slight mistake by the firm may result in a situation where its market share is taken over by other rival firms.

Evaluation of SWOT Analysis

The SWOT analysis above shows that Samsung is in a very strong competitive position in the market. The firm is in a sound position to compete favorably with other firms and achieve desired results. The firm can easily continue pursuing its current strategies profitably. In order to turn its weaknesses into strength, this firm should consider increasing its campaigns on environmental conservations. This can be achieved by developing new strategies taking into consideration the current prevailing circumstances


The analysis of Samsung done above clearly demonstrates that this firm has a higher capacity to achieve the best result in various industries in which it operates. This firm should consider coming up with a marketing management strategy that will make its products not only known, but also cherished in the market.

The management should put customer’s satisfaction above immediate gains such as profitability. Profitability of a firm always comes as a result of a built trust between the firm and the buyer. It may cost the firm trying to develop this trust. However, once the trust is developed, there will be a continuous profitability to the firm. The management should also take into consideration, the need to maximize emerging technologies as a way of remaining competitive.

The market has become very hostile, and Samsung must ensure that it develops competitive strategies regularly to counter threats posed by competitors. This can be achieved through structuring the company on the basis of the current market forces, and ensuring that technology is at the core of all operations of the firm.


Cheap Samsung phones. (2012). . Web.

Montgomery, A. (2012). . Web.

Samsung mobiles. (2012). . Web.

Yodhia, A. (2013). . Web.

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IvyPanda. (2021) 'SWOT Analysis for Samsung'. 2 August.

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