Grazelle Uri Domanais

BSBA 2-MM BLOCK 2

ACTIVITY 2 - THINK GLOBAL

1. Choose any multinational, transnational, or international company with known product brand sold in
the global scale.

2. Identify the marketing strategies allowing the company to penetrate the international market.

3. Present the SWOT analysis of the company in relation to its product positioning in the global context.

4. Write down your references.

5. Upload your output in the google drive folder.

Samsung Group

Marketing strategies of the company/ corporation

Despite being one of the world’s largest producers of electronics devices, you may be surprised to find
out that Samsung electronics started out primarily as a low-tier manufacturing brand with cheap
consumer perception. In this analysis, find out how Samsung’s marketing strategy literally transformed
them into the global electronics powerhouse seen today.

Samsung’s marketing strategy focuses on developing new innovative products that are supported by
strong branding and promotional campaigns. Mr. Yun initiated a new competitive strategy with the goal
of developing and marketing superior products while also building an image of Samsung as a stylish,
high-quality brand worthy of a premium price. The objective was to establish a unique position using
technical innovation while designing more appeal to a younger generation, as well as upscale customers
around the world. Yun argued that to continue to compete on price would eventually be their downfall.

SWOT ANALYSIS

Samsung’s Strengths (Internal Strategic Factors)

1. Strong global brand tied to consumer electronics

2. Semiconductors and electronics manufacturing expertise

3. Synergistic support among divisions or subsidiaries

The Samsung brand is one of the most competitive in the global market, especially for consumer
electronics. The brand rivals some of the biggest names in the industry, such as Apple, Google, and Sony.
This strength is an internal factor that supports Samsung’s ability to grow and expand against
competitors. This SWOT analysis also identifies the company’s design and manufacturing expertise for
semiconductors and electronics markets. This strength is notable, considering that major technology
companies use Samsung electronic components in their respective finished products. Another strength
in this case is the synergistic support involving the technology company’s divisions and subsidiaries. For
example, Samsung Electronics benefits from the conglomerate’s semiconductors business. This
synergistic support is based on the divisions and subsidiaries in Samsung’s organizational structure. The
internal factors in this aspect of the SWOT analysis are used in the enterprise’s strategies for growth and
to compete in the saturated global market for consumer electronics

Samsung’s Weaknesses (Internal Strategic Factors)

Samsung’s weaknesses are internal factors that reduce business capabilities in capturing the
opportunities shown in this SWOT analysis. These weaknesses impose limits on the long-term success of
the company’s semiconductors and consumer electronics business. The following are the weaknesses of
Samsung:

1. Dependence on Android OS

2. Lack of a competitive comprehensive platform for hardware, software, and services

Samsung’s dependence on Android OS is a weakness that limits business capabilities. For example, the
company’s smartphone’s operating-system functions and related licenses are restricted because of
Google’s licensing of Android. Also, Google’s influence on Android development weakens Samsung’s
competitive position, as both companies directly compete in the market for smartphones and other
mobile computing devices. In relation, this SWOT analysis points to the lack of a competitive platform to
rival Apple’s ecosystem of hardware, software, and services. This internal strategic factor makes
Samsung relatively weak in increasing the switching cost of its customers when deciding to purchase
consumer electronics from the competition. The weaknesses shown in this aspect of the SWOT analysis
are internal strategic factors that prevent the company from offering an expansive product range and
further strengthening customer loyalty relative to Apple and Google.

Opportunities for Samsung (External Strategic Factors)

Opportunities are external factors that allow further business growth, as presented in this aspect of the
SWOT analysis of Samsung. These opportunities are linked to technological development, market
development, and alliances with various business organizations. Samsung’s strategic opportunities in the
international market are as follows:

1. Strategic partnerships with software developers

2. Strategic partnerships with online service firms

3. Business growth through product development

4. Business growth through diversification

This SWOT analysis considers strategic partnerships with software developers as an opportunity to grow
Samsung’s revenues, considering the company’s design, development, and manufacturing capabilities.
For example, exclusive partnerships with software developers can provide additional functionality to
make the company’s consumer electronics more competitive. Similarly, strategic partnerships with
online service firms are an opportunity for stronger competitive advantage. This external strategic factor
refers to possible exclusive agreements between Samsung and other firms. Spotify already has a non-
exclusive agreement with the mobile device maker to make the music streaming service an integrated
part of Samsung mobile devices. Another opportunity significant in this SWOT analysis is to grow the
business through product development, such as in the form of new or improved variants of
semiconductors and electronics products. This external factor is an opportunity to boost the technology
conglomerate’s competitive advantage through its products’ features. Samsung’s organizational culture
and related human resource management capabilities can support strategies for exploiting product
development opportunities in global markets. In addition, diversification is an opportunity to grow the
business in terms of entering new industries or businesses, although exploiting this opportunity presents
risks that could harm the company’s semiconductors and consumer electronics businesses. The external
factors in this aspect of the SWOT analysis indicate the favorable business environments where Samsung
can grow its revenues, increase its market share, and improve overall competitive advantages.
Threats Facing Samsung (External Strategic Factors)

Threats are external factors that, in this SWOT analysis of Samsung, reduce or destabilize business
performance, growth, and development in the global market for semiconductors, consumer electronics,
and related technologies. Even though the company has a large and diversified multinational footprint,
some factors in its industries present threats. The following are the main threats that affect Samsung:

1. Competition, especially in the consumer electronics industry

2. Imitation of consumer electronics products

3. Legal restrictions and lawsuits

Competition is the most significant threat relevant in this SWOT analysis of Samsung. This external
strategic factor refers to competitive pressures from firms like Apple, Google, Sony, Lenovo, and LG.
These competitors can reduce Samsung’s market share and corresponding sales revenues. Additionally,
imitation is an external factor that threatens the company, especially in market segments that are price
sensitive. For example, cheaper phones that partially imitate the company’s smartphone designs are
attractive among price-sensitive customers. Considering this SWOT analysis, the combined threats of
competition and imitation are further understood through a Five Forces analysis of Samsung and its
competition environment. Legal restrictions and lawsuits are also external factors that threaten the
company in terms of possible limitation of business performance, especially in major mobile technology
markets like the United States and the European Union, where Apple and other competitors are actively
pursuing legal avenues. The threats identified in this SWOT analysis persist against Samsung and, thus,
require strategies to mitigate their effects on the business and to maintain the company’s competitive
advantage.

Internal and External Issues

The strengths, weaknesses, opportunities, and threats in Samsung’s business and industry environment
present a competitive situation that requires innovative strategies to continue business growth despite
competition. As this SWOT analysis indicates, the company possesses core competencies for capturing a
bigger market share, increasing sales revenues, and growing the technology business operations.
However, Samsung’s weaknesses are barriers and challenges that require strategic solutions. The
company can exploit the identified opportunities, such as strategic partnerships, to strengthen its
competitive position in the international market for consumer electronics.
This SWOT analysis also emphasizes Samsung’s weakness of the lack of a competitive comprehensive
platform like Apple’s. Samsung can use the previously mentioned partnerships or develop its own
platform to target certain services that could open new opportunities for growing its business. In
addressing the issues identified in this SWOT analysis, the corporation can expect a continuously strong
industry position, and possible mitigation of the effects of competition, imitation, and other strategic
issues.

References :

https://panmore.com/samsung-swot-analysis-internal-external-factors-recommendations

https://proechosolutions.com/how-samsungs-marketing-strategy-turned-them-into-a-technological-
powerhouse/