Samsung swot 2018

Samsung-Introduction and Background

Founded in 1938, Samsung had humble beginnings, exporting basic foods such as fish, vegetables, and fruit prior to expanding into financial services such as securities and insurance (Dyer, Godfrey & Jensen, 2016). In an effort to diversify its product portfolio, Samsung then entered into the world of electronics. Around 1990, Samsung executives saw an opportunity to emerge into the electronic industry with new technology when the Japanese market was hit with a recession. When Japan's stock market crashed in 1990, the time was referred as Japan's 'lost decade', where it remained in a financial slump for almost twenty years before gaining traction again (Amadeo, 2018). The question would then be, just how would Samsung come along and emerge as the leader in global technology manufacturing?

Samsung's SWOT Advantages

Samsung has been quite effective in its business strategy by analyzing and understanding where their strengths and weaknesses lie, as well as assessing their competitor's activity within the market. Identifying the positions of competitors as well as how the market is responding (or not responding) to competitor's products and services, will determine how Samsung can leverage their strengths and opportunities, as well as manage their weaknesses and mitigate industry threats. As the entire SWOT analysis can surely serve as an advantageous, there are a few key areas in which Samsung has and can continue to leverage. One specific area in which the electronic leader has excelled in from the beginning is manufacturing. Upon introducing digital technology during the 1990 recession, Samsung has seen substantial growth within its manufacturing progressions (Dyer, et al., 2016), and continues to leverage its strengths of financial performance, market share, and product and location diversification (Samsung Electronics Co., 2018).

Due to the company's strong financial performance, they are able to offer substantial ROI's to their investors as well as increased economies of scale due to the diversification of geographic locations (Samsung Electronics Co., 2018). Moreover, with cost reductions through economies of scale, Samsung can continue focusing on manufacturing and expansion opportunities, new product innovation and strategic partnerships.

Samsung SWOT and its Increase in Competitive Advantage

Samsung's competitive advantages come as opportunities for new product innovations and launches into a highly competitive marketplace. Notable products include Samsung's DRAMS, AI (artificial intelligence) applications, data, and privacy management, enhanced security for mobile and electronic devices, and enhanced planning tools and services (Samsung Electronics Co., Ltd., 2018). Furthermore, Samsung has seen an increase in their performance management by partnering and collaborating with other manufacturers and retailers who can help develop and drive growth and performance management. The competitive advantages are that strategic partnerships increase Samsung's supply chain, strengthen market share, as well as increase market share (Samsung Electronics Co., Ltd., 2018).

Samsung SWOT and Innovation

As a leader in the global value chain, Samsung's products must remain applicable, useful, and relevant to the current marketplace, especially as technology continues to grow and consumer preferences and product expectations become more advanced. As a strategic business process, Samsung can leverage its strength as a strong innovator and manufacture in technology, which will be drivers in innovation and product demand. Failure to adapt can be detrimental to the technology giant, as technology trends increase; industry standards shift and change management processes are integrated within the organization (Samsung Electronics Co., 2018). The ability for executive leaders to understand both internal and external factors affecting the organization ultimately aids with the decision-making process and improves shareholder's response to change management. In fact, one of the changes Samsung made was implementing a change in organizational structure to decentralization, meaning that daily operations and decision-making is delegated by top management to middle management so top management can focus on the decision-making process (Business Dictionary, n.d.). In doing so, managers can cultivate a culture of performance management while fostering technological innovation and promoting employee-employer engagement.

References

Amadeo, K. (2018). Japan's economy, recession, and impact on the U.S. economy. Retrieved from https://www.thebalance.com/japan-s-economy-recession-effect-on-u-s-and-world-3306007

Business Dictionary. (n.d.). Decentralization. Retrieved from http://www.businessdictionary.com/definition/decentralization.html

Dyer, J. H., Godfrey, P., Jensen, R., & Bryce, D. (2016). Strategic management: Concepts and tools for creating real-world strategy. Hoboken, NJ: John Wiley & Sons

Samsung Electronics Co., Ltd. (2018). Samsung Electronics Co., Ltd. SWOT Analysis, 1-8. Available at www.samsung.com