Micro Environment Analysis of Samsung

Micro Environment Analysis of SamsungSamsung was founded by Lee Byung-chul. In 1938 Samsung was born as a company that was dealing with fruit veggie and dried fish. The company was exporting its merchandise from S surfaceh Korea to Beijing in China. In 1969, Samsung Electronics was born. From in that location, the company started acquiring and creating different business establishments including a hospital, authorship manufacturing plant, life insurance company, department stores and many early(a)sIn 1974, Samsung electronics acquired half of Korea semiconducting material -this made it the leading electronics manufacturer in the coun find out.In eighties Samsung Electronics integrate with Samsung Semiconductors and Telecommunications.http//www.streetdirectory.com/travel_guide/116664/electronics/the_history_of_samsung.html2. MICRO ENVIRONMENT ANALYSIS OF SAMSUNGThe aim of this section is to conduct an indwelling environment synopsis of Samsung which ordain investigate the e nvironment in which Samsung operates in. comp angio 10sin converting enzyments of the analysis will be those in which the company has control over, as k this instant as internal environment.2.1 StrengthSamsung is the second greatheartedgest telecommunication industry in the world through its innovation smart border.Samsung has wide range of ingathering includes Cell reverberates, Tables, Tvs Cameras, Home appliances, laptops, etc.Samsung squander ontogeny their brand apprize in this past three to four yearsSamsung is leading in origination features. For example Samsung is the first unity to produce dual permeate send fors, and they wear a thinnest and lightest note pad ever.Their digit argon hypnotic and stylish at the result their sales argon moving in high volumes2.2 WeaknessTheir prices atomic number 18 low, hence their product loss time value easy in the grocery storeThey institute a freshly-made phone after another that can ca habit confusion to the nodes. Poor creativeness in bourns of software, mostly they steal Apples software ideasTheir products are not exercising complaisant, as compare to Nokia phonesThey are leading in computer hardware but they ca-ca too a lot dependence for their software from other parts.3. EXTERNAL ENVIRONMENT ANALYSIS OF SAMSUNGThis section will focus on the Macro environment of Samsung and I will explain how the external factors excise the company by looking in their opportunities and threats also go through PESTEL analysis.3.1 ThreatsLow cost competitors from China can affect SamsungAll Samsung competitors bought their product parts in Chine that can lead a early fall to Samsung.The war between Samsung and Apple big businessman contaminate the cypher of SamsungSamsung was banned from importing their products in a Euro Zone that left a bad image of Samsung in that zoneApple is dominating in confederation and North America, and builds its brand to make any new problematical to operate there.Appl e and Nokia they are in a process of merging, that could be a threat to Samsung because Nokia has built its brand already especial in Africa, which is Nokia can just yield its customersIn Australia, Google inter-group communication 7 prevail a market lion share which make Samsung straggle to sound the market smoothly because Australia does not see big difference Samsung diggingss and Nexus 7Sony has release a new digs which has almost the equal feature which Apple and Samsung pee.In German, Samsung is straggling to penetrate the market because they conceptualize that Samsung is incompetent, is copying from Apple iPod.(www.marketing91.com)3.2 OpportunitySamsung bring to introduce user friendly products and educate their market about their product, because there is a big market in Africa yet the majority is uneducated, here(predicate) in South Africa they need to open their declare stores, whereby they go to divvy up unaccompanied their own productsSamsung could launch n o name brand resembling MTN and Vodafone whereby they will take the out date old model, change only a cover and sell with cheaper price.3.3 PESTEL ANALYSISThe PESTEL analysis is an analysis of the external macro environment in which an which an presidency operates. These are often factors which are beyond the control or influence the business (RapidBi, 2013).PESTEL will be used as a tool to analyze the Macro environment of Samsung.3.3.1 Political environment smell at the political environment, how the impact of politics affecting Samsung globally, As overmuch as Samsung is a good company not everybody see like that, due to the strong competition between Apple and Samsung it ended up involving government in other countries. American government trying to flow Samsung influences the Euro zone to block Samsung to have market around Europe. Specifically in German Samsung was forced to withdraw its extragalactic nebula tablet. Also South Korea cabbage Samsung to operate in there due to the political differences between lacquer and South Korean government.3.3.2 Economic environmentSamsung has expanded its business to to a greater extent than 58 countries. Samsung mostly they invest heavily to the infrastructure in individually end every country they have a business in. Here in South Africa they bought a land whereby they going to build the big plant, whereby it will manufacture or assemble its products for whole Africa, it toy withs there are employment opportunities coming and there is an opportunity for South African economy. This plant is expected to employ more than 3000 mess.3.3.3 loving EnvironmentSocial trim down in South African environment are perpetually changing as new innovation technology and services have impact to the needs and wants of South African communities. The stats show that there is an increase attraction to the technology which has become the primary means of communication. Samsung find that gaps to modify peoples lives. The chal lenge is that many people do not know how to use Samsung products in a proper right smart especially these new tablet phones. People steal need to be educated on how to use these tablets phone that is a challenge of our societies.3.3.4Technological environmentTechnology in South Africa has advance and grown rapidly over the years and has affected the path we do things here in South Africa. Technology has change the way the business is done as social media has a crucial type in sustainability strategy of most businesses. Samsung find a way of take a business out of the building structure to the pocket. By introducing Galaxy Note 2 is more tablet like than phone like, it mean that you can do you work in the public transport, in the restaurants, anywhere, without fill up intermediated of take foring big machine.3.3.5 Ecological environmentSamsung Electronics is operating its own voluntary take-back establishment across Korea (Republic), using a network of 130 of service centers a nd Anycall sum retail outlets (exclusive outlets for Samsungs Any call brand). End of Life smooth phones are collected either free of charge, or in some cases with a customer reward. The returned phones are then sorted and transported to recycling facilities for scrapping. They makes an effort to overhaul environment-friendly product that minimizing an impact to environment through whole process from get raw materials, production, transportation, usage and end-of-life disposal by adding environment on function, price, quality, design that were the essence for product development, Samsung reporting the recycling amounts for Korea and Japan from 2004, for Europe from 2005, and for the unify States from 2006. For 2006, they have forecasted an estimate of volumes they expecting to recycle this year. (www.samsung.com)3.3.6 Legal environmentThe South African government has decided in April of 2011, the Consumer Protection Act68 of 2008 should come in operation. This strength have a negative impact to the company like Samsung because they have a tendency of dumping their low quality product in third world country to maximize their profit as they did in India. There are strong labour laws in South Africa which might have a strong negative impact to Samsung operating in South Africa as they intend to open a big grinder in Johannesburg as a distribution center for Africa it will be a challenge to them if they think they are going to exploit people in South Africa.4. MARKETING ENVIRONMENTThis section will be focusing on the Marketing Environment in which Samsung operates and I will be evaluating its effects on the new Tablet in term of the competitive in the industry.4.1 Industrial ChallengesThis section will be impoverished into three parts Porters 5 forces, competitive analysis by relation and industry trend4.1.1 Michael porters porters fives forcesPorter five forces analysis is a model for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. It draws upon industrial organization (IO) political economy to derive five forces that determine the competitive intensity and therefore attraction of a market. Attractiveness in this context refers to the overall industry profitability. An unattractive industry is one in which the combination of these five forces acts to drive toss off overall profitability. A very unattractive industry would be one approaching pure competition, in which available profits for all firms are driven to normal profit. (wikimedia.org)http//upload.wikimedia.org/wikipedia/commons/6/66/Porters_five_forces.PNGhttp//upload.wikimedia.org/wikipedia/commons/6/66/Porters_five_forces.PNGThis model will be used to analyse the constancy Challenges faced by Samsung4.1.1 The threat of potential new entrantscapital is undeniable to compete in technology industry. Capital to buy the equipments and capital to carry out the marketing activities and other expenses shoul d be available. However, Microsoft will release its new first Tablet soon, this mean Microsoft will be a new threat to Samsung. Microsoft will lavage on the success of their softwareProduct specializationSo far theres no different on how the market design its software, hence the market hope that Microsoft will bring something new in the market, if not they will not survive in this industry because this only way they can differentiate themselvesEven then, overcoming issues such as customer loyalty and switching costs would be another large prohibition to entry such as Microsoft.4.1.2 The threat of substitutesThe threat of substitute products at heart the industry, however, is low.Even though there is an increased popularity of Tablets, they are busy doing same thing. However Samsung is the one who inventing a new trend that shift from tablet to galaxy phone which it have all feature that tablets has and smart phone features. This is the only direction the market goes.4.1.3 The barg aining great power of buyersReliability is one of the area the companies should concentrate in, however if an organisation loss its focus on customer wants, it is easy for customer to move to another company. Companies should know how much the customer is will to pay. Buyers easily switch cost with the increased of choices of sprightly companies because this products are similar to one another If the company does not shin market, the buyer will switch to those companies that have wear features or better price. However Samsung is sitting on top of the game, they always want to scourge the market by releasing designs and they consider their prices they offer their customers, even now Samsung is the one have a cheaper tablet in the market.4.1.4 Bargaining power of supplierSamsung is its own supplier of most components. Samsung also happens to be its own supplier for raw materials and they design for themselves. The bargaining power of suppliers is high because suppliers goods are critical to the buyers marketplace success, for example Samsung is a supplier of Apple which is the have a significant role in Apple prices.5. INDUSTRY leadersIndustry leaders are brands, products or companies that have power in the industry.This section will focus on the Industry leaders, the competition that the organization faces within the industry. This will rank the organization competitors according their service offering. ground on the above information it is clear that, Samsung tablets are the best in the market, even if Apple can take Samsung to the court. It is clear that a trend of Apple is going down little beat looking at the Blackberry and Motorola Tablets they have almost the features Apple has. It is clear that the development aggroup of Samsung are working hard, they know what is needed and what went wrong in the preliminary product they and looking at the improvements they have. Looking at the improvement they have It show that Samsung will survive in this indus try for another ten years Desktop computer came and go, laptop is taken out by Tablets, if you look at Samsung Galaxy S4 it is a new trend of mobile technology because it a combination of a Tablet and smart phone and its memory is big a tablet, but its size is smaller and thinner.6. RECOMMENDATIONSSamsung should try to make its products simpler (friendly usable), because their products are highly advance.They must try to run quadruplet between one model to another, because Samsung release one after other, they dont give you a change to full understand the current one you have.7. BIBIOGRAPHYHttp//www.slideshare.net/rajasekarkr/benefits-of-tablesbtnFirsthttp//www.samsung.com/us/news/20372http//techpinions.com/the-galaxy-note-2-one-gaint-step-for-android-phonees/14292http//techland.time.com/2013/01/07/why-tablets-hybrids-and-convertible-are-important-to-the-pc-industry/xzz2MqJz5R6H