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PESTEL analysis for Samsung:
Factor Main Points
Political - Government policies and trade restrictions can significantly affect operations. - Legal challenges and leadership issues in South Korea have posed threats to stability. Economic - Samsung seeks opportunities in markets with great potential but also faces risks. - High-profile product failures have led to economic setbacks and opened doors for competitors. Social - Samsung adapts its products to fit the sociocultural aspects of global customers. - The brand’s global presence is balanced with a strong orientation towards South Korea. Technological - Samsung is a leading manufacturer of consumer electronics and semiconductors. - The company invests heavily in R&D and innovation to maintain its market position. Environmenta - Samsung is committed to reducing its environmental impact and l complying with legislation. - The company addresses ecological conservation issues proactively1. Legal - Samsung navigates complex legal landscapes to ensure global compliance. - The company has faced legal challenges that have impacted its public image and operations.
Political: Samsung operates in a global market, which means it is subject to a
variety of government policies and trade restrictions that can affect its operations. These policies can range from tax policies, labor laws, environmental regulations, to trade restrictions and tariffs (The Strategy Story, .). In its home country of South Korea, the company has faced legal challenges and leadership issues that have threatened its stability. These issues have not only affected the company’s operations but also its public image (Awara, 2018.).
Economic: Samsung’s economic performance is closely tied to its strategic
decisions. The company constantly seeks new opportunities in various markets, but it also faces risks. High-profile product failures, such as the Galaxy Fold incident, have resulted in economic challenges and provided opportunities for competitors to gain market share (The Strategy Story, 2023.).
Social: Samsung’s product strategy takes into account the sociocultural
preferences of its diverse global customer base. The company ensures that its products appeal to consumers worldwide, while maintaining a strong South Korean identity. This balance between global appeal and local identity has been a key factor in Samsung’s success (Awara, 2018.).
Technological: Samsung is a leading player in the consumer electronics and
semiconductor industries. The company’s commitment to research and development allows it to stay at the forefront of technological innovation. This commitment is reflected in its significant investments in research and development, which help the company maintain its competitive edge in the market (The Strategy Story, 2023.)[Onserio, 2018.).
Environmental: According to Samsung Electronics Announces New Environmental Strategy
(2024) in 2022, Samsung announced new environmental strategies, including investing over KRW 7 trillion in environmental initiatives by 2030. These initiatives aim to reduce process gases, conserve water, expand electronic waste collection, and reduce pollutants. According to Kenyon, T. (2022) Samsung is also working on various tangible solutions for environmental problems, such as combating microplastic pollution, reducing energy consumption, cutting back on waste by using recycled plastic, and adapting eco-conscious packaging.
Legal: Legal compliance is critical for Samsung’s international operations. The
company has faced various legal challenges, but it continues to navigate these complexities to maintain its market presence. Samsung’s dedicated legal team ensures adherence to laws in all markets, which is crucial for its continued success and integrity (Awara, 2018.)
Bibliography
Awara, N. (2018) Pestle analysis of Samsung, Academia.edu. Available at:
https://www.academia.edu/35656327/PESTLE_analysis_of_samsung (Accessed: 17 January 2024).
Story, S. (2023) Samsung Pestel Analysis - The Strategy Story, The Strategy Story - Simplifying Business Strategies. Available at: https://thestrategystory.com/blog/samsung-pestel-analysis/ (Accessed: 17 January 2024).
Onserio, E. (2018) Pestel analysis - samsung.doc, Academia.edu. Available at:
https://www.academia.edu/35117861/PESTEL_Analysis_Samsung_doc (Accessed: 17 January 2024).
Samsung Electronics Announces New Environmental Strategy (2024). Available at:
https://news.samsung.com/global/samsung-electronics-announces-new-environmental- strategy (Accessed: 17 March 2024). Kenyon, T. (2022) Samsung Electronics unveils New Sustainability Initiatives, Technology Magazine. Available at: https://technologymagazine.com/digital-transformation/samsung-electronics-unveils- new-sustainability-initiatives (Accessed: 17 March 2024).
Strategic Management: Formulate and Implement Strategies, Analyze the Competitive Environment and Make Strategic Decisions: Administration: The science of managing resources
