Samsung Opportunities and Threats

Increased competition

Smart phones are easier to make now more than ever. More companies may enter the market, and competitors or even Samsung contractors can maneuver around patents to create similar devices. Samsung has linked product lines, which means that if one product line fails due to its own reasons other product lines will also suffer. Unlike Samsung, their competitors like Nokia has only focused in one segment and put much effort on it.

Besides, the products made from China was very economic so Samsung could have a high competitive with their products. Retail chains like “Big bazaar” sell consumer electronics and home appliance in low cost strategy which produced in bulks foreign market. Therefore Samsung is also facing threats from many other low cost companies. But top competitors of Samsung Group are LG Corp., SK Group and Hyundai Corporation.

Risks of Samsung plants

Samsung has set up production plants in low cost areas, which are subject to ample political and economic instability. These instabilities can have an impact overall company it the crisis gets unmanageable. Health of Users Many government legislations are now active against the innovative technology due to health and mental concerns.

Regulatory Issues and Safeguarding of Intellectual Property Rights

The regulations and legal frameworks in place in Korea have created problems for the Group as the Korean government recently halted plans for its Life Insurance division to go public due to legal concerns. With the large number of new products being designed and marketed each year, Samsung is also experiencing difficulties in safeguarding its intellectual property rights which are vital in retaining competitive edge.

Opportunity Investment in Supply Chain In 2002 and 2003, Samsung has invested heavily in research and development, production, and marketing. The group intends to build a 24-hour research and development system which will continuously develop and stimulate demand. Production investment will boost efficiency and the major marketing campaigns embarked upon should add value to products and increase brand awareness through the promotion of the DigitAll brand.

International Expansion

In order to broader their market in global, Samsung has investigated a new technology known as “Triple protection proposition”. This idea was to make their air-condition product category more strong. Besides, Samsung is currently preparing to enter pioneer markets such as India and Eastern Europe.

Samsung is the India’s official ‘Olympic partner’ for the 2012 London Olympic and recently launched ‘Olympic Ratna Program’ so this enhance brand awareness and increase their sales. Samsung Mobile and Home appliance has future plans of launching Customized products for Indian market. The market share in rural market will be improved by those plans. Since the Indian youth population is growing, mobile phone sales is expected to increase due to lesser call rates.

Services and product variation

Samsung distinguish its service from competitors. Through making itself distinctive form competitors, it can gain more market share. By providing distinguish services, it can increases its customer base. Besides, Samsung can attract its target market and get more shares by introducing unique products and existing product with variety. Samsung could make an effort to launch creative products first, rather than after its competitors.


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