Marketing Analysis of Samsung in Australian Market
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Added on 2022/11/15
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This report provides a detailed analysis of the Australian market where Samsung operates its business. The report includes macro and micro environment analysis, customer analysis, and recommended strategies for Samsung to grow in the competitive market.
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MARKETING1 Executive Summary Samsung is one of the leading companies in the international market. The company has expanded its business in more than 80 countries that made possible for the company to grow in the competitive market. The company has also targeted the consumers of Australia. The usage of smartphones is high in country. Australia is stable country that maintain low inflation rate as well as with high GDP. It enhances the opportunity for the company to grow in such market more efficiently. The main consumers of the company are in between the range of 24-55 years. However, the company faces great challenges from other brands as well such as Apple, Oppo and so on that affected overall performance of the company to the certain extent. Therefore, it is required for the company to use its strength over its weaknesses, and threat to grow in the market more efficiently and effectively.
MARKETING2 Table of Contents Introduction......................................................................................................................................3 Macro Environment Analysis..........................................................................................................3 PESTLE Analysis........................................................................................................................3 Micro Environment Analysis...........................................................................................................4 Mission and objective of the company........................................................................................4 Business portfolio of the company...............................................................................................4 Market position of the company..................................................................................................4 Suppliers.......................................................................................................................................5 Intermediaries...............................................................................................................................5 Competitors..................................................................................................................................5 Customer Analysis.......................................................................................................................5 TWOS Matrix..................................................................................................................................6 Recommended Strategies.............................................................................................................6 Conclusion.......................................................................................................................................7 References........................................................................................................................................8
MARKETING3 Introduction The industry of consumer electronics is a versatile as well as competitive business environment. Rival companies in such industry continuously attempt to surpass its contenders through innovative promotional methods, reassessing as well as developing their tactics that frequently in well-lit of peripheral with inner aspects that affect the professional. Samsung is the international leaders in digital media as well as digital convergence technologies. It is one of the largest companies in the world that operate its business in more than 50 countries (Iblasi, Bader & Al-Qreini, 2016). In the following part there will be detailed analysis of the Australian market where the company operates its business. The impact of the Australian market on the sales and revenue of the company analyzed as well as analysis of the perspective of consumers brand. Macro Environment Analysis PESTLE Analysis The external environment of Australia is explained in below points: Political and Legal: there is high level of certainty in the business of Australia. The country is considered as one of the safest place fir business. The political environment in Australia is stable that enhance the chance of growth for the company in an effective manner (Gardere, Sharir, & Maman, 2018).
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MARKETING4 Economic Factor: the economic growth rate of the country is higher than other countries. Furthermore, the GDP of the country is approximately 1400 billion US dollars well as the value of GDP of Australia also represent as 2.31 % of the world economy. The country has low inflation levels that enhance the purchasing power of the consumers in an effective manner. Such environment provides an opportunity to Samsung to target the consumers efficiently (Cardoso, 2017).. Social Factors: the people of Australia are seeking for innovate product without compromising with the quality. The people of Australia have great purchasing power due to high employment rate in such country. The high class people are signified by the expensive dresses, mobile and houses that increases the demand of Samsung products more effectively(Lomas, & McLeod, 2017). Technological Factors: Australia is one of the developed countries that support updated technology efficiently. Every individual are using smartphones in the country that enhance the demand of such phone and electronics products among them efficiently. Therefore, he growth rate of such country is high that provide an opportunity to the company to attract its consumers more efficiently (Cardoso, 2017). Environmental Factors:the country is concern towards protecting the environment more efficiently. Therefore, the government of Australia has enacted different laws such as Environment Protection Act 1974. It forces the companies to follow the law that has been set by the government. It enhances the pressure on the company to follow such rules that affected overall cost of the company to the certain extent (Cardoso, 2017).
MARKETING5 Micro Environment Analysis Mission and objective of the company Mission The main mission of the company is to be best digital company in the international market to lead the digital convergence movement (Hartley, 2017). Values The value of the company is to follow strict guideline of code of conduct to value the consumers, changes, excellence, integrity as well as co-prosperity (Omer, 2019). Objective The objectives of the company to enhance the profit margin through maximize the sales growth with survival that depends on time. T is the objective of the company to enhance the market share at maximum level Satisfying consumers through providing effective and quality product and service are also the objective of the company (Hossain, 2018). Business portfolio of the company The company has diversified its business in different sectors which include financial services, electronics, heavy industries, chemical services as well as other services. Samsun is the chief product that has the intermediate value of cost. The business of the business is at wider range that extends over semiconductor, skyscraper, advance technology, construction of plant, hotels, fashion, petrochemical and much more. The company operates its business in more than
MARKETING6 80 countries through over 213 offices across the world as well as employed some 320000 individuals in its business. Therefore, the company has expanded its business more efficiently and effectively (Kim, 2018). Market position of the company Samsung has achieved great success in the international market as it maintain great position in the Australian market as well. The current market position of the company can attributed to its core value, tight control as well as planned business moves over the activities of supply chain as well as its strategy to reap the advantages of the experience curve economies. The smartphone of Samsung are the next popular mobile device choice after Apple among Australian people. Samsung has achieved approximately 40% share in the Australian smartphones market. According to the recent research it has been analyzed that approximately 19.3 million smartphone users in Australia, most of which uses Android phones and the top vendors of android version were Huawei, OPPO as well as Samsung (Cardoso, 2017). Therefore, the company has held a steady share of the market as well as clear lead over their next most famous competitors from a variety of manufacturer Suppliers The suppliers play a vital role in Samsung overall customer value delivery system. The suppliers provide effective resources that are required by the company to produce the goods and services. Samsung make rules that the suppliers are required to follow as well as to conduct steady inquiries to understand if the dealers are following to the guidelines as well as rules or not. From labor welfare to product quality with sustainability, the dealers are essential to trail the
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MARKETING7 set guidelines in entirely such extents. Moreover, the issues of suppliers also affect the marketing to the certain extent such as strike of labor; supply shortage as well as other events can enhance the cost of the company as well as also damage the satisfaction level of consumers to the certain extent(Lee, & Kim, 2015). Intermediaries The marketing intermediaries also help the company to promote, sell as well as distribute its product on the market to the final consumers. Such include wholesaler as well as vendors. Merchants such as the company Tesco or Wal-Mart buy hefty quantity of products from the company Samsung as well as mass them in hayloft and sells them such slighter amounts to stores. Moreover, the retailers will purchase slighter quantities of products from merchants or it can also unswervingly purchase from the company Samsung. Therefore, through such manner the company did able to find potential buyers in the market of Australia that made them grow in the market (Krishnaswamy, 2017). Competitors Samsung has covered wider range of consumers to enhance its sales however, the company face challenges from other rivals to the certain extent. The main competitor of Samsung is Apple. It covers huge market that created biggest competition to the company. Apple has higher penetration with younger users with more than 50% in the age group of 18-24 (Krishnaswamy, 2017). Other Android phones are also competing Samsung to the certain extent such as Oppo and Huawei. Such mobile phones also lead in the market that make the consumers attracted
MARKETING8 towards such companies at greater level. They provide its services and product at low price that give huge competition to the Samsung and affect overall sales to the certain extentDeserti, & Rizzo, 2019). Moreover, Google Pixel also gives great competition to the company. IT is one of famous brand if consumer electronic device that is owned by Google and such phones can run both Android OS and Chrome OS. The company delivers laptops, mobile phones that attract the consumers. The main consumers of Samsung are young generation who want some innovative ideas (Krishnaswamy, 2017). Customer Analysis In order to analyze the device market in Australia, it has been and continues to be dominated by the smart phone, the companies has a comfortable market that lead since 2017. The number of smartphone uses n Australia is gradually enhancing year on year with user number that is expected to reach just over 19 million by the year 2022. Most of the smartphone users are between the age group of 25 and 54 years old. In the year 2018, 96% if the users fell into such group, while analyzing the Australian Market, the phones that are running the Google Android operating system cover more than 50% of Australian sales in the quarter(Glowik, 2017). TWOS Matrix Strengths The company offer quality work to its consumers with medium prices
MARKETING9 It has diversified products. The products of Samsung depended on variation. It represent that they make similar products in varied manner for the varied kind of individual for varied nations. The company has earned good reputation among the consumers. A Samsung claim that is has fine recognized brand equity as well as the company has also executed tremendously well meanwhile the former decades predominantly from 2000 headlong (Corones, 2016). Weaknesses The company has expanded its business in the international market. It faces challenges in managing and organizing the business efficiently. Based on the twofold number diminution of its functioning revenue in contradiction of other year, it represent that the effective cost had also exited up by additional than 20%. Samsung as a South Korean company is estimated by mist of the consumes as lone next to many Japanese company meanwhile Japan is continuously painstaking as a great tech nation in thedomain (Li, Ryan, Shao, & Sun, 2015).. Opportunities Arrival of new technologies A strong consumer demand as well as good design Expansion of business in international market Enhance the market of computer and mobile Threats Change in the social trends are the biggest threat for the company
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MARKETING10 Huge level of competition in the market enhance threat to the company New regulation and enhance trade barriers increases risk to the company to operate its business in such market (Corones, 2016) Recommended Strategies Strength and Threat The company is required to enhance its diversification to distribute its risk in the market. It will enhance the change of success in the market. The company is required to focus on innovation to compete its competitor. The main competitor of the company is Apple. Therefore, tit is required to introduce innovative product or any feature in the market. It is required for the company to revise its rules and regulation according t change in law and should maintain fund. It will support the company to manage uncertain expenses that may occur due to change in government law. Strength and Opportunities The company is required to more focus on promotional strategies to attract maximum number of consumers towards its product more efficiently. Samsung can also focus over the design of the product due to rise in demand of the consumers in the market. The company can launch new premium mobile phones and laptop in the market to attract its consumers. Strength and Weakness
MARKETING11 The company is required to focus on controlling manufacturing cost that will help in providing quality service at minimal rate. It can diversify its business in other underdeveloped country by providing low price product to them. It will help in enhancing the base of consumers more efficiently (de Almeida, 2015). Conclusion From the above analysis it can be concluded that managing business in the competitive market play a vital role for the company. Samsung is considered as one of the giant company in the international market. It has diversified its business in various segments that enhance its change of growth in the international market. In Australia, it majorly focuses on smart phones and other electronic products. Australia is one of the developed countries that provided an opportunity for the company to grow in such market. The country is stable and has positive impact on the growth of the company. The demand of smartphones is high in such market that enhances the range of consumers for the company to the certain extent. However, the company faces huge competition from Apple that affected overall performance of the company to the certain extent. Therefore, it is required for the company to focus over its marketing and other strategies to grow in the competitive market.
MARKETING12 References Cardoso, E. A. R. P. (2017).Examining the differences of the internationalization strategies of two of the major brands in the smartphone industry-Apple inc. versus Samsung electronics(Doctoral dissertation). Corones, S. (2016). Misleading premium claims.Australian Business Law Review,44(3), 188- 203. de Almeida, C. R. (2015).Nintendo’s pursuit for profitability: a pedagogical case study. Australian Business Review 9(2) Deserti, A., & Rizzo, F. (2019). Embedding design in the organizational culture: Challenges and perspectives.Design Culture: Objects and Approaches, 39. Gardere, J., Sharir, D., & Maman, Y. (2018). Consulting and Executive Coaching on Future Trends: The Need for a Long Term Vision with Apple and Samsung.International Journal of Business and Social Science,9(3). Glowik, M. (2017). Environmental analysis.Global Strategy in the Service Industries: Dynamics, Analysis, Growth, 16. Gomez, S. E. (2017). A Strategic Management Paper on SMART Communications, Inc. Hartley, S. (2017). The case of the exploding Samsung phones.Busidate,25(1), 9. Hossain, S. (2018). Analysis of remittance operation for commercial bank of ceylon PLC: Motijheel Branch.
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MARKETING13 Iblasi, W. N., Bader, D. M., & Al-Qreini, S. A. (2016). The impact of social media as a marketing tool on purchasing decisions (Case study on SAMSUNG for electrical home appliances).International Journal of Managerial Studies and Research,4(1), 14-28. Kim, S. K. (2018). Developing the Strategies for AI Products based on the Technology Decomposition Framework. In2018 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM)(pp. 1250-1254). IEEE. Krishnaswamy, S. (2017). Sources of Sustainable competitive Advantage: A Study & Industry Outlook.St. Theresa Journal of Humanities and Social Sciences,3(1). Lee, H. J., & Kim, S. Y. (2015). Strategic Use of Patent Assignment Information for Competitive Intelligence. InISPIM Innovation Symposium(p. 1). The International Society for Professional Innovation Management (ISPIM). Li, Z., Ryan, J. K., Shao, L., & Sun, D. (2015). Supply contract design for competing heterogeneous suppliers under asymmetric information.Production and Operations Management,24(5), 791-807. Lomas, E., & McLeod, J. (2017). Engaging with change: Information and communication technology professionals’ perspectives on change in the context of the ‘Brexit’vote.PloS one,12(11), e0186452. Omer, S. K. (2019). SWOT analysis implementation's significance on strategy planning Samsung mobile company as an example.Journal of Process Management. New Technologies,7(1), 56-62.
MARKETING14 Shao, L., Wu, X., & Zhang, F. (2016). Strategic Sourcing Under Competition and Asymmetric Cost Information.Available at SSRN 2741504.