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Samsung Group SWOT & PESTLE Analysis

ID : 52291553| Sep 2020| 11 pages

COMPANY PROFILE -Samsung Group

Business Sector :Diversified

Operating Geography :South Korea, Asia, Global

About Samsung Group :

Samsung Group is a South Korean company founded by Lee Byung-chul in 1938. Its headquarters are located in Seoul, South Korea. It is the largest conglomerate company in South Korea. The company had initially been set up as a grocery and later expanded into textiles. This textile business was then diversified to help it achieve full autonomy with investments being made in the heavy industries, ship building, chemical and petrochemical industries. The company’s foray into the electronic market came as late as 1969 with the manufacturing of black and white televisions. By 1970, it had achieved a 50 percent stake in the Korean Semiconductor sector. Later on, an aerospace and Data Systems segment was also introduced which was the beginning of the company’s entry into the information technology services sector. This helped the company deal in electronics, semiconductors, high-polymer chemicals,  genetic engineering tools, telecommunications, aerospace, and nanotechnology. Today it has many businesses under one brand name Samsung and deals in diverse products ranging from electronics, home appliances, apparels and electronic components. The company has also gained the distinction of seeing 46 of its products gaining CES® 2020 Innovation Awards, which includes three Best of Innovations titles. The company employs more than 320,671 employees worldwide as per early 2019 records.
Samsung’s mission statement reads, “We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society.” Its vision is to “Inspire the world with our innovative technologies, products and design that enrich people’s lives and contribute to social prosperity by creating a new future”.  The 2020 specific vision of the company is  “Vision 2020: Inspire the World, Create the Future”.

Samsung Group Revenue :


KRW 230.40 trillion – FY ending Dec 2019 (YoY growth negative 5.4%)
KRW 243.77 trillion – FY ending Dec 2018 (YoY growth 1.7%)
KRW 239.6 Trillion – FY ending Dec 2017

Competitive Analysis of Samsung Group

SWOT
PESTLE
The SWOT analysis for Samsung Group is presented below:
Strengths
Weaknesses
1. Strong and popular brand
2. Distinctive Designs
3. Opting for an open source operating system
4. Focuses on pricing, cost and quality
1. Too large product diversity and low on quality
2. Does not have own OS
Opportunities
Threats
1. Huge scope in Indian Market
2. Acquiring new companies
1. Huge Competition
2. Chinese Manufacturers
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Samsung Group

Strength

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Weakness

1. Too large product diversity and low on quality: When the product portfolio is too large, then it gets even more difficult to work on each of them. Because of such diversification, it gets difficult to concentrate on all of them. Also, Apple Inc is doing much better than Samsung when it comes quality of the product. Also, recent incidents have made consumers made question Samsung’s quality. The failure of Samsung note 7. Incidents of mobile catching fire, made them recall all their products all over the world.

2. Does not have own OS: Samsung does not have its own OS, like other companies like Apple Inc. They are heavily dependent on third party for this. Though the makers of Android are trying hard to make it flawless but still it lacks perfection like Apple Inc’s OS. Because, of this many consumers see Android poorer than iOS. Also, this leads to customer’s perception that Apple products are more advanced, dependable and flawless.

Opportunity

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Threat

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References used in Samsung Group SWOT & PESTLE Analysis Report

1. Samsung Business Report 2018 - https://images.samsung.com/is/content/samsung/p5/global/ir/docs/2018_Business_Report_vF.pdf

2. Samsung revenue 2019 - https://news.samsung.com/global/samsung-electronics-announces-fourth-quarter-and-fy-2019-results

3. Samsung Audited financial statements - https://www.samsung.com/global/ir/financial-information/audited-financial-statements/

4. Samsung company profile - https://in.reuters.com/finance/stocks/company-profile/005930.KS

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Samsung Group SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2021). Samsung Group SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/samsung-group/ [Accessed 03 Dec, 2021].

In-text: (SWOT & PESTLE.com, 2021)

Copyrights and Disclaimer

Samsung Group SWOT and PESTLE analysis has been conducted by Sugam Thakur and reviewed by senior analysts from Barakaat Consulting.

Copyright of Samsung Group SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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