SWOT Analysis of Samsung [Explained in Detail]

SWOT Analysis of Samsung focuses on Strength, Weakness, Opportunities and Threats. Strength and Weakness are Internal factors and Opportunities and threats are External Factors. SWOT Analysis of the company helps to analyze the current position of the company. This SWOT can be used to formulate strategies to overcome competition.

Samsung is ranked the second largest technology company in the world manufacturing mobile products. Samsung head quarters are based in South Korea. Samsung has already been ranked number one in the global consumer electronics brand, and is known for its evolutionary developments in digital technology.

swot Analysis of samsung

The group is known for manufacturing equipment such as telecommunications, electronics, kitchen appliances, and semiconductors.

It was originally introduced as an analogue-driven product line and became a critically acclaimed technology breakthrough leader. Today, the tech industry is the world’s leading producer of smart phones and mobile phones. Nowadays it offers over a hundred different types and versions of goods. Its subsidiaries are operational in about 79 countries.

Lee Byung-Chul was formed Samsung in 1938 . It originally began as a selling firm until, in the late 1960s, it eventually transformed into an electronics manufacturer. Samsung has 309,630 employees till date.

Kim Ki Nam, Kim Hyun Suk, and Koh Dong Jin are the new CEOs.

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Strength in the SWOT Analysis of Samsung – Samsung SWOT Analysis

  • Largest Product Line: Samsung has the largest product line of smart phones, smart phones, TV / audio / video, cameras, camcorders, home appliances, laptops, peripherals, printers, memory cards and other accessories.
  • Market Share: Samsung maintains substantial market share in most product categories
  • Smart phone market dominates-Samsung has been leading the smart phone market for years. According to Gartner, Samsung held the No. 1 spot globally in the first quarter of 2020 with a market share of 18.5 percent while Apple had a market share of 13.7 percent.
  • Research and Development- Creative research and development has always been the basis of Samsung. Expenditure on these departments culminated in the company having among its rivals a wide variety of product portfolios. This include a smart phone, camcorder, smart phone , laptop, television / video / audio, flash cards, Computer, and other gadgets. They have 34 globally running R&D (research and development) centres.
  • Award Winning Brand- The status of Samsung as an engineering leader is endorsed with reputation. Samsung’s services have won numerous honours. Samsung has been awarded in the Consumer Electronics Show for its products and designs. Samsung has also won (IDEA) International Design Excellence Award.
  • Ecologically Friendly Technologies-Samsung, with its environmentally friendly products, has strengthened its brand image. It earned its ranking at 9th spot in the EPA ‘s 2016 Green Power Partner list of Top 30 Tech and Telecom firms. Samsung was also awarded an ENERGY STAR Partner Award for Environmental Protection. Most businesses do not share this success and therefore heighten the value of Samsung in all business lines.
  • Asian market power – Samsung maintains leadership in Asian markets , particularly India and China. Both the business markets of India and China are greatly rising. Samsung has has taken advantage of the potential markets in these countries.
  • Technology: In terms of interface features and technology Samsungs is the best. It was the first to launch dual-screen mobiles, 65k colour TFT / LCD phones, first polyphonic ringtone phones, revolving lens phones, thinnest and lightest note pads, etc.
  • Features: In terms of incorporating advance features in LCD, freezer, air conditioner, etc., Samsung enjoys the first mover advantage. It launched the tiniest MP3 player in the world and the first 17 “TFT-LCD-TV display from India.
  • Local Production: Through setting up a production facility in India, Samsung took advantage of the rising Asian consumer economy by reducing logistics and supply chain costs.
  • Brand Image: Samsung brand image rose in the past three years by 80 percent.
  • Extensive Promotion on Internet and Television. Samsung is also using social media platforms like Amazon and Flipkart to promote its products.

Weaknesses in the SWOT Analysis of Samsung – Samsung SWOT Analysis

It is estimated that both Samsung and apple have sold nearly 70.8 percent of smart phones in the USA, highly dependent on the American markets. While Samsung has diversified its capital and increased its Asian activities, it still relies heavily on the American markets. The American economy is highly volatile, and another recession could jeopardize Samsung ‘s profits and destroy its operating capital. That’s why, if the US economy ever fails, Samsung is interested in the Asian and European economies to ensure survival and deter future failures.

  • Decline in mobile sales: After 2017, Samsung has witnessed a downturn in smartphone sales. A similar trend was followed in China because of the Chinese market’s price sensitivity. Many of those items are dumped on the Indian market at a cheaper cost, affecting the sales of Samsung. In India, Samsung wanted to turn additional attention, but that approach did not yield meaningful results for the business.
  • Product defects: Any product that places customers’ lives at risk erodes faith and interest in the brand. From the exploded Samsung Galaxy A20e to a faulty foldable tablet, Samsung has shipped many flawed items to the market.
  • Low-end mobile dependency: A significant majority of Samsung’s revenue comes from low-end handset sales. Low End handset sales have declined because of availability of high-end devices at lower prices. Samsung Sales is declining at a rapid pace. Company has to concentrate on product pricing and use effective marketing strategies to compete with its competitors.
  • Hereditary Leadership: Samsung has always been under the family ‘s leadership for three decades since its founding. While retaining leadership within the family has given Samsung tremendous stability, due to a lack of fresh ideas, the business will stagnate. Samsung’s successor Jay Lee has promised to terminate dynastic succession despite being dogged by many controversies.
  • Bribery Controversy: In 2015, the credibility of Samsung was compromised by the announcement that the company’s chief bribed the South Korean government to facilitate a merger. He was found guilty and incarcerated until Feb. 2018 for almost one year, which weakened public interest in South Korea and around the world.
  • Samsung is a pioneer in electronics, but it has so much dependency on tech from other groups.
  • Online retailers providing a wide variety of items provide excellent prices because they do not bear costs in the sales channel.

Opportunities in the SWOT Analysis of Samsung – Samsung SWOT Analysis

  • Triple Protection Proposal – Samsung is planning to launch its latest air conditioning device called the ‘Triple Protection Proposal’ which combines cutting-edge technology and impeccable design. The item is directed towards a target consumer base that will guarantee full retention of consumers.
  • HR Management – If Samsung spends in its HR management, it will make remarkable transformation achievements. It would not only be beneficial for its revenues, but also give it negotiating advantage over its competitor. In order to boost job morale and retention, the organisation should leverage its market value to attract highly experienced and skilled workers.
  • It is critical that Samsung prevents the mistake of being confined to only one marketplace. Diversification and acquisitions. Not only does it invite economic costs, but it also attracts unnecessary political polarization and unfavorable media attention. That is why the Asian and European economies have a market vacuum in which Samsung will prosper. It also wants to broaden its client base. Only by diversification and purchases of other firms will it be done. Samsung is a famous company and thanks to its financial status, can produce amazing sales.
  • Introduce Creative Devices – The technology market is extremely diverse and in a moment the new innovations go out of control. By creating the trend with great and creative products such as the fordable phone, Samsung can achieve tremendous growth.
  • 5G Technologies – Samsung has the potential and know-how to harness the ability as the world transitions to 5G. The business is currently in intensive contractual negotiations to sell 5 G and 6 G network infrastructure to operators in the EU. In the UK ‘s ranking of future 5 G operators, Samsung is one of the biggest firms.
  • Samsung aims to make the group of air conditioning items stronger with specific innovations dubbed ‘Triple Proposal for Defense’
  • There are potential plans for the introduction of personalized products for the Indian market for Samsung phones and home appliances. This would boost rural market share
  • The population of young Indians is increasing, and cell phone revenues are projected to rise due to lower call rates
  • Its financial status is high and there is space for diversification which is unrelated

Threats in the SWOT Analysis of Samsung – Samsung SWOT Analysis

  • Controversies over patent infringement – Samsung has been embroiled in controversies that have affected its business. Its competitor Apple filed a case against Samsung for patent violations that went through a heated legal battle for seven long years before a settlement was eventually reached. The corporation faced repercussions, however, after a jury found that Samsung had simply copied Apple and had to pay $1,049 billion in fines. This suit hurt the credibility of the firm and its revenues.
  • Increased Competition – Competition from opponents has reached a record level , especially from those in the consumer electronics, digital devices, and computing industries. If it’s Xiaomi, Apple or Huawei, all the competitive rivals are maneuvering and outperforming each other to become the best company in technology. This further puts the burden on Samsung, both in terms of competitiveness and financing.
  • Legal and regulatory challenges – With the environment becoming more globalized and technologically focused, political agencies have started to release directives that are growing legal and regulatory challenges to businesses around the globe. Samsung is no exception to such requirements. Laws vary from market to market, and a hindrance to activities is generated by these stringent regulations. Failure to adhere could also result in the respective market being fully shut down which could be fatal for Samsung.
  • Economic instability-Recent developments have catalyzed global market instability and led to a 20.2% fall in new smartphone revenues in Q1 2020. Financial difficulties caused many customers to search for discarded or rehabilitated telephones, which rose by 24 per cent. Samsung has already undergone a revenue downturn, and if doubt continues, it could drop further.
  • Rise of counterfeiting-Samsung is by far the most counterfeited phone brand, according to various research reports. A mobile benchmarking platform illustrate that over 36 percent of all counterfeit devices are clones of Samsung. Samsung Galaxy S7 Edge still holds the record as the smartphone model with the most counterfeits.
  • Impending Court Cases-Any leadership disturbance could impact performance. A South Korean court is considering whether Samsung’s chairman and successor Jay Lee should be sent back to prison. The executive has been dogged with fresh accusations of stock-price fraud and audit-rule breaches and threatens to push the business without management into another turbulent era.
  • Samsung has a wide range of product lines, failure of one product line would influence the other and lead to dilution of the brand
  • Competitors such as Nokia are based on one market only.
  • Since India is a potential market it is definitely high for international players to join. Global companies such as Haier have already begun gaining market share in home appliances in India.
  • Chinese products: Risks
  • Big Retailers like Reliance Electronics, Tata Cliq, Chroma, sell consumer electronics and home appliances in a low-cost approach, that are procured in bulk from the international market (Specially from China).


It is evident from Samsung’s SWOT analysis that the organization is still a market leader in chip manufacturing and phone brands. As it moves into the future it has still maintained ample sales and income.

The biggest challenge facing it is to cut back on its over-reliance on the American markets and discover the opportunity for other markets to work. It must concentrate primarily on the Asian continent, which is evolving at an unsustainable speed. Its small US client base is not adequately stable, and may result in reduced sales and income. That can become an ongoing problem for the company. In order to succeed, they have to expand geographically to incorporate a new customer segment.

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