Samsung Brand Analysis & Strategy

This assignment delves into a detailed analysis of the Samsung brand, employing a SWOT framework to evaluate its internal strengths and weaknesses, as well as external opportunities and threats. The analysis encompasses various aspects of Samsung's business, including its product portfolio, market position, customer perception, and competitive landscape. Furthermore, the assignment explores marketing strategies employed by Samsung to enhance brand equity and maintain its competitive edge in a dynamic global market.

Running head: BUSINESS
Business
Name of the Student
Name of the University
Author Note

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Answer to question 1
Part 1
Introduction, Nature of operation and product portfolio
Company History
Samsung started as a multinational company and it has diversified its business into food
processing, textiles and the insurance, retail and securities. In the 1960’s it started its business in
electronics and technology. This electronic business has grown at a fast pace. Thus Samsung has
globalized its business in the mobile phone and electronic business. The brand Samsung is now a
global leader in technology with 200 subsidiaries all over the World. The company has home
appliance and products such as television, refrigerator (Glowik 2016). Samsung is one of the
trusted brands and therefore it delivers a quality product to enhance the convenience and increase
the lifestyle of the customers (Chan et al.2017).
Part 2
How the company became International
The company has started its business as a trading concern but it has expanded to become
a multinational company through it mergers and acquisition. The company was established in
1969.With time it expanded globally and it has more than 200 subsidiaries all over the world.
Samsung is one of the top brands in the World and their mission is to create value to the

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customers which will help them to lead and to be in the top position (Hinrichs 2013). The
company offers its customers mobile devices, televisions, home appliances to the consumers
Part 3
Financial Performance
In the financial year 2016, Samsung Securities’ total assets hit KRW 31 trillion, up
20.3% year on year on a consolidated basis. Total equity capital have gone up by 2.8% from the
previous year to reach KRW 3.5 trillion, it that includes common stock capital, which was worth
KRW 394.2 billion. As of end of the FY, the company held 6,329,040 treasury shares,
representing 8.28% of all outstanding common ones, which amounted to 76,435,165 shares
(Cortez et al.2015). In the financial year 2016 (Jan 1-Dec 31, 2016), Samsung Securities had
consolidated net revenue of KRW 1095.9 billion, up 29.6% over the previous fiscal year (Jose
2014). This increase can be both by the growing size of the company’s equity trading value as
well as improved earnings from wealth management and financial product investments.
Part 4
Product Portfolio
Samsung has a wide range of product such as tablets, smart phones, the television, and
camera. Other products for home appliances range from the refrigerator, micro ovens, air
conditioner and washing machine. The technological products are laptops and printers.

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Product Offer
Samsung has been a trusted brand, and it has become a status symbol globally. At the
same time, Samsung is a well known service which gives services at a very fast rate for their
entire product. Thus the product portfolio of Samsung is one of the strongest point for the
company (Khan, Alam and Alam 2015).

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Answer to Question 2
Part 1
Evaluation of Samsung using SWOT and PESTLE
SWOT Analysis
INTERNAL FACTORS EXTERNAL FACTORS
Positive
Factors
Strengths Opportunities
Samsung is best at manufacturing and selling
electronics products (Ji et al.2015).
Due to the recent development in technology
and the minds of the people there is a demand
for smart phones (Salah 2015).
They own their own research and
development team and has their own
intellectual property and patent right of their
products (Hartley, 2017).
The competitors do not have a well
established research and development team
but Samsung has already established their
R&D team (Lichthart et al. 2017).
The employee have the skill and knowledge
about the latest technology (Sheppard 2016)
The new technology such as aneroid features
in smart phones and tablets are in demand in
the market (Dermawan 2014).
They have huge financial resources (Scott
2017).
The company can capture the market of Asia
and some portion of Europe (Ramiz et
al.2014).
Negative Weakness Threats

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Factors
Samsung is not able to beat the products the
products of Apple Inc which is a real
drawback (Xu 2015).
The consumers are buying products of Apple
therefore the sale of Samsung have
considerably reduced (Yang et al. 2016).
In updating the technology the intellectual
property of Samsung has been outdated and
they need to constantly change and update
their product (Tar 2013.).
The legislation of the Countries have different
law, thus it make it difficult for Samsung to
grow in few Countries (Guri, Mirsky and
Elovic 2016).
There should be proper training so that they
can manufacture much better products than
the Apple IOS and smart phones (Rafferty,
Iqbal and Hung 2017).
Now most of the consumers have increased
their buying capacity for different electronics
products from everywhere (Rapp 2014).
Samsung can make strategic alliance with
different technological company so as to
improve and increase their market growth
since companies such as Ziaomi and Huawei
give strong competition with Samsung (Lee
2014).
The threat of substitutes is a real threat.
Possible substitutes continuously put pressure
on Samsung (Lord et al.2014).
SWOT Analysis
SWOT Analysis means to analyze the strength, weakness, opportunities and threats potent to the
company.

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The Strengths of the organization is as follows:
Samsung is the market leader of all the electronics company. The mobile or smart phone is
one of their greatest strengths. Its main source of revenue is the sale of smart phones. Samsung
has a strong manufacturing and marketing capabilities (Hasan 2013) and a very high research
and development (R&D) team which does the research therefore it has one of the strongest
mobile technology companies.
The Weaknesses is as follows:
There are some Chinese competitors who are trying to catch up with the brand Samsung.
Many brands are competing with their collection of smart phones. It showed that the brand
Huawei share grew by 48% and that of Xiaomi by 29% (Adhami, Sabbagh and Mirahmadi
2014).
The Opportunities is as follows:
The brand recognition is the significant factor affecting Samsung competitive position. There
is a growing market for smart phones, tablets and other mobile devices,.Sales of tablets finally
overtook sales of traditional personal computers in 2015 (Ying 2015).The growth in the middle
class in this century are increasing their demand for consumer electronic items thus there is
opportunities to develop social responsibility in lesser demographics .
The threats are as follows:
Currently, the threat of new viable competitors and launch of new technology smart
phones has a good fight in this industry. The consumer replaces Samsung with cheaper phone of
Xiaomi and Huawei thus their share grew in these years (Castro 2016).Thus the consumer’s

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buying power also represents a key threat in the industry. Consumers can easily switch to Apple
products since their product IOS is much recognized than the Samsung tablet. Thus Apple
entered the home appliance and consumer market too.

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Part 2
PESTLE Analysis

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Political
Samsung has its business in many Countries, The
company did not face much challenges from the
foreign market as well as Asian market in terms of
political environment except for some places such
as South Korea because of the political instability
and Samsung sometimes faces political pressures
from many African and Latin American countries
where the political environment is also unstable
and it is prone to the frequent changes in the
governing structures (Cardoso 2017).
Economic
The market is opening for Samsung and it
helped the company to develop the global
footprints (Lomas and McLeod 2017).There is
global crisis which have reduced the consumers
buying power forcing Samsung to seek profitable
ventures in the emerging markets. The company
Samsung operates globally with uncertainty and
volatility which leads to Samsung making
strategies accordingly (Tarannum and Hassan
2016).
Socio-Cultural
Samsung is primarily a South Korean multinational
company. There are many aspects and one of it is
adapting to the local conditions of the market. In
other words, Samsung being a global company has
to adopt strategies to compete in the emerging
markets (Lee, Kim and Park 2015).
Technological
Samsung is one of the leading companies.
It has the power of technology to sustain their
business; it has the vision to dominate its rivals and
competitors as far being the first to reach the
market with their latest products (Pae et al, 2015).
Legal
Samsung had to pay many legal fines and
penalties since it imitated Apple’s iPad and iPhone
Environmental
The ethical consumers are able to make
their products socially and environmentally

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has led (Singh and Uncles 2016) to the company
taking a beating. It was difficult for the company to
wriggle out of the legal maze and lawsuit (Ernst
and Fischer 2014).
responsible. Samsung has to be aware of the need
which ensures wages it pays to its labor who are
engaged in making the final products (Kim and
Mauborgne 2014).

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Answer to Question 3
Market situation, market segment and market share of the company Samsung in the
industry
Part 1
Samsung Electronics is a global leader in semiconductors and digital media technologies
and it is renounced. They have the Headquarter in South Korea. Samsung has many people
worldwide and it spends around 10 billion U.S. dollars for their research and development every
year (Harutyunyan, Jiang and Narasimhan 2016).
Part 2
Market Share & Market Segment
There are many products that are manufactured by Samsung Electronics. Out of which
the most renowned product is the latest version mobile phone that Samsung Galaxy III. In this
segment Samsung enjoys maximum market share from their mobile phone. In this segment
Samsung holds 32.6 percent and with its competitors Apple having a market share of 49 percent.
In case of Xiaomi holds the maximum market share of 41.6 percent and its nearest competitor. In
case of demand for the product Samsung galaxy III is very high and it has one of the largest
market share having at the second position with 26.2 percent while Apple IOS has market share
of 30.4 percent (Giachetti and Torrisi 2017).

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In case of Lithium-ion batteries Samsung lacks behind by two percent from its nearest
competitors who stands at 20 percent. In case of Samsung mobile, Samsung is able to have a
huge share by selling their aneroid version of mobile phone. In the market of aneroid mobile
phones, it lacks behind at 4.2 percent while its competitor Apple is having 30.4 percent. The
recent study shows that the mobile phone industry in Samsung holds 34 percent while its
competitors Apple Inc is at 13.4 percent (Menzel 2013).

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Answer to Question 4
Part 1
Ansoff ‘s Matrix for growth opportunities appropriate for the company
Figure1: Ansoff Matrix for Growth
Source: Source: (Alhaddi 2016)
Ansoff Matrix for Samsung
Existing New
The Marketing Environment
The Ansoff’s Matrix:
MARKETS
Increasing Risk
Increasing Risk
PRODUCTS

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Existing Market Penetration
Samsung sells most of its existing products such as
mobile phones and electronic goods in Asian market.
The company is not into the gaming industry
therefore it diversifies its product to enter into this
industry and to use XBOX 360 gaming console
(Vecchiato 2015).
Product Development
With the change in the
technology and the invention of
many new products in the market
Samsung sell new and innovative
aneroid phones to their customers
who have a trust for the brand.
With the recent changes
Samsung has thought of a market
investment in the 3D video
gaming trade through the help of
Microsoft thus they are able to
sell the new products in the
existing markets (CHERGUI
2017).
New Market Development
Samsung is a renowned brand in electronic and
technology, therefore it is able to capture most of the
market for electronic goods. In the near times it has
thought of innovative their products, thus the
company is able to develop short term target for of
developing gaming packages to their consumers
which have been renowned for achieving higher
Product Diversification
With the high competition
prevailing in the market
companies such as Apple Inc and
Xiaomi captured the electronic
industry and there is rise in their
share. Thus Samsung had to
come up with new and innovative

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sales or market share of the existing product in the
new markets (Pires and Alves 2015).
aneroid version of electronic
items so that people are able to
do each and every work for
official and personal purpose in
the phone so as to sell their new
products in the new market for
expansion and diversification
(Njuguna 2017).
Part 2
Growth Opportunities for Samsung by Ansoff Matrix
Market Penetration
The main aim of Samsung was to increase its dominance and therefore they followed the
strategy in order to sell their product at the lowest risk. This strategy involved in selling to the
customers the goods thereby penetrating into the market. They launched 3D video game in their
aneroid phone which had the latest technology. They have seen that many companies have
earned huge profits. The success is achieved by the company by selling much of their products to
the existing customers, and they purchase it on the basis of the trust and loyalty and to attract the
rivals so as to increase the market share (Basu 2014).

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Product Development
The strategy is to sell new products in the existing market. The new products will carry a
moderate risk and there are chances that the product will have growth or not. The strategy helps
in the innovating the product and to develop it. The company has entered into a new product in
the gaming industry where they will sell 3D video games. They sold this product so that this will
be a unique feature to support games in the mobile. Samsung with the help of their research and
development team developed the product that involved lower risk (Huang and Lin 2017).Thus
this new launch will be capturing the customers in the existing market.
Market Development
In this strategy the company expands its customer base. The new product will be able to
capture both the old as well as the old customers since the new phone has inbuilt game
application. This strategy also has a moderate risk. This strategy helps to gain new customers by
selling the same product. This is crucial since it will improve the aspects such as marketing,
distributing and pricing strategy. This is used by Samsung when the brand has attractive channels
to attract the market (Akwetey 2015).
Product Diversification
In this the company launches new products in the new market. It is one of the most risky
strategies that the company deals while launching their new product. The company uses their R&
D team in order to launch their product in the market (Oh,Cho and Kim 2015).The
diversification strategy helped Samsung to launch the new gaming built application phone and
this might have a good market as the customers will buy the product looking at the newest
technology and application in the phone.

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Answer to question 5
Segmentation and identify target market for effective positioning of the product based on
growth opportunities
Part 1
Identification of target market group for effective positioning of Samsung
Samsung has understood the concept that “customer is the king of the market” thus
Samsung is able to understand that different customers have different buying power and this
have led the company to make new strategies. Their promotional strategies have always helped
to target the market. The target group which Samsung focuses is the consumer preferences. This
helps Samsung to make strategies and therefore to be able to satisfy the customers need
throughout (Prasad and Jakka 2017).
The target market for Samsung is young working generation. While making the strategies
Samsung is able to apply these strategies to their most selling brand of mobile phones. Thus
Samsung Galaxy has gained numerous consumers throughout the World. All the people are
working professionals and they require the latest technology of aneroid mobiles and tablets.
Samsung has advertised their mobile phones and when they target on the male they show their
latest feature in the sports and game commercials such as ESPN and lesser on Lifetime. Women
get influenced by camera and the color therefore advertisement comes in the channels like
Lifetime. A woman is much attracted to the feature that Samsung Galaxy III has, whereas men
are influenced by the technology that the brand brought (Kirk et al. 2014). Samsung thus is able
to win a unique position in the market.

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Part 2
Segmentation of the product for effective positioning
Basis of Segmentation
Geographic Demographic Behavioral Psychographic
Example: Customers
within 10miles of the
range
Example: A level &
University Students
Example: Customers
wanting a value for
money impulse buy
Example: Customers
who prefer to buy
organic food
Customer
Location
Urban/Rural
ACORN
Classification
Age
Gender
Occupation
Socio economic group
Rate of usage
Benefits sought
Loyalty status
Readiness to purchase
Personality
Lifestyles
Attitude
Class
Figure 2: Pattern of Segmentation
Source: (Liu et al. 2017).
In order to determine psychographic segmentation, Samsung targets people based on
general brand consciousness. The company targets the IT conscious people by giving them
aneroid mobiles phones to people. They offer products to all age groups.

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Part 3
Positioning of the Products of Samsung
Positioning refers to the position where the product stands. Samsung started with
different products but in the 1960’s it started manufacturing electronics product and now has
become one of the best companies in electronics. It is now competing with Apple Inc (Andrews
and Shimp 2017).
Factors involved in positioning the product
a) Price: Share price in Samsung Galaxy in the market is high. The pricing strategy is to
lower the prices than that of Apple IOS in order to attract customers.
b) Packaging: It is an important business strategy which differentiates Samsung mobiles and
their unique brand with the rest of the competitors such as Xiaomi and Huawei (Petovello
and Dabove 2014).
c) Promotion: In order to promote the brand, they have launched many advertisement
featuring mobiles and aneroid versions in many television channel, newspaper and also in
the advertisement campaign
d) Differentiating Samsung Galaxy: The symbol of Samsung is unique and it differs all the
mobile in the market from other selling mobiles

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Answer to Question 6
Appropriate marketing mix for proper positioning of the company
Price:
Skimming Price –This strategy was followed by Samsung when they launched any new mobile
phones. Samsung Galaxy was launched having unique storage capacity with a higher price.
Samsung reduces their price according to the launch a smart phone by their competitors.
Pricing strategy- It is another marketing strategy which succeeds in being a leader. Samsung is a
loyal brand in all its products, mainly the mobile phones (Naidu 2017).Samsung thus kept
competitive pricing when launching its product Samsung Galaxy series. Samsung is thus able to
compete with rest of the competitors in the market. This is the pricing strategy in the Samsung
marketing mix.
Place:
Samsung is a brand which sells its product to the consumers through its retailer and the
dealers. They are the ones responsible corporate sales. Samsung is situated everywhere in the
World, and it has become popular. They have a huge distribution channel which act as a major
strength for Samsung (Hisrich and Ramadani 2017).

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Promotion:
Promotion is used by Samsung. It has the best promotional strategy so that it is able to
engage its potential customers in the positioning of the brand. Samsung promotes its brand by
advertising in the newspapers and digital media. In order to attract the number of consumers, it
takes the advantage of the followers of celebrities (Lee 2016.).
They have advertised their mobile phone and used the tactic such as launching different
version of Samsung Galaxy so as to attract customers. Samsung is famous for their quality and it
sponsors in big events.This promotional strategy helps to attract the crowd to a large extent
(Prabowo, Ghozaly and Susilo 2017.).
Product:
Samsung has its own research and development team which does research so as to
upgrade their products and to deliver the client the latest and best quality products Samsung has
made the launch of Samsung Galaxy by upgrading their products to the latest technology
according to the need of the customers. Their products are diverse and are divided in the various
catgory (Paul 2015).

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