Strategic Management: Internal and External Analysis of Apple and Samsung

This report provides an analysis of the internal and external factors affecting Apple and Samsung, including their strengths, weaknesses, opportunities, and threats. It also discusses the competitive environment and offers recommendations for both companies.

strategic management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Internal Analysis ........................................................................................................................3
External Analysis........................................................................................................................6
The competitive Environment.....................................................................................................8
Challenges and Opportunities...................................................................................................11
RECCOMENDATION and CONCLUSION................................................................................13
References......................................................................................................................................14

INTRODUCTION
Strategic Management is all about making the suitable business strategies to meet the
overall business objective. Strategic management involve planning, monitoring, analysing and
assessing the business situation and based on that make an effective and efficient strategy to
meet all the objectives of the business. This report includes the internal as well as the external
analysis of the company. In this report all the factors associated to the competitive environment
will also be reported in brief. All the challenges and opportunities will also be a part of this
report. In this report Apple and Samsung both companies are taking as an organization for this
report. Apple was established in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne.
Headquarter of the company located in California, US. Apple is a company that deals in
computers and telecommunication related products. Samsung was founded in 1938 by Lee
Byung-chul. Headquarter of the company located in Seoul, South Korea.
MAIN BODY
Internal Analysis
Internal analysis is about the strength, weakness, opportunities and threat of the company that
can also be denoted as the SWOT analysis of the company.
SWOT of Apple
Strength:

 Apple company has a worldwide store that gives the huge boost in its customer base.
 Apple company carry the strong brand image between all the technology enthusiasts that
create immense faith among all its customer base.
 Strong brand image carry the potential of high range of profit margins.
 Innovation at a constant basis is a big strength for Apple.
 Multiple product line gives plenty of choices to its customer base.
Weakness:
 Apple has the limited distribution channels that blocks the market for the company.
 Apple products are much expensive as compare to other competitors and that result into
reducing customer base.
 Because of the rates Apple has a huge dependency on the business class and uper middle
class background peoples.
Opportunities:
 Apple carries the immense opportunities in creating new customers by extending its
distribution networks across worldwide.
 Apple has seen the increasing trends of its customer base in recent years because of the
strong brand image and that boost to more opportunities in the market.
 Apple can enhance its existing customer base by entering into new segments or new
product line.
Threat:
 Laws of different countries become threat sometimes for multinational company like
apple such laws might not be suitable for the company's policy.
 Competition is a huge threat in the telecommunication sector because of the multiple
options available for the customers in the market.
 Big companies always has a threat of reducing market share that turns into negative
impact on company's brand image.
SWOT of Samsung
Strength:

 Samsung is a very experiences brand in the market that generate trust factor in the
customers for the company.
 Samsung always focus on technology development and its related innovation that creates
its own brand image.
 Samsung has a very strong customer base in Asia region.
 Samsung has been awarded from various awards in innovation, development and work
excellence.
Weakness:
 Samsung has a strong reliability in the established market for the company.
 Customer not look much supportive for the Samsung products and reducing sales figures
depict the fact for the company.
 Samsung repeats its products with multiple names time to time and that cause loosing of
faith in customers.
Opportunities:
 Samsung is very much dominating in already established market that create multiple
opportunities for creating new customer base.
 Samsung is rapidly expanding its business worldwide.
 Samsung focuses more on technology development and its related aspects that turns into
productive sales of the products.
 Samsung is expanding its product range very rapidly that create more opportunities in
other segments.
 Market share of Samsung depicts the strong brand image of the company.
Threat:
 Samsung has recently got tough competition from its competitors like Apple, Xiaomi, Mi
and all others that also result into reducing sales.
 Up gradation of technology is must and that also cause to failure sometimes because of
the effectiveness of the technology.
 Samsung has been a part of controversies in a bad way that put an adverse effect on the
brand image.

 With the existence of existing competitors like Apple and others many new companies
has also become part of the market.
External Analysis
External analysis can also be denoted as PESTLE Analysis of the company. External
analysis involve external factors related to the company's operations.
PESTLE Analysis of Apple
PESTLE Analysis involve multiple external factors such factors are:
Political Factors: Political factors involve all the political aspects of the country it involves all
the laws, rules and regulations related to the countries operations (Rothaermel, 2017). Apple has
a established business worldwide so all the rules and regulation of a particular country will put
an impact on the product and strategies of Apple related to that particular country. Apple is a big
brand so all the countries give opportunities to Apple for selling the product and establish a
market in the country and that create opportunities for multiple benefits like free trade policies of
country for Apple, multiple subsidies related to various aspects of the company's operations. All
the developed countries sustain stable policies that gives much more volatile market for the big
companies like Apple.
Economical Factor: Economic aspect of countries put impact on the growth and development of
the companies. Stable economies gives wider aspect to the businesses to take decisions related to
the growth and development of the business. Stable economies always sustain volatile market for
the company's that result into rapid sale of the products (David and David, 2019). Economic
stability also provide luxury to Apple to expand its business in term of more products and
segments. Asian countries are growing very fast in this century that gives more options to Apple
to launch more new products in Asian market as if the growing economy has given boost to the
purchasing power of the people in Asian Countries.
Social Factor: Social factors include the beliefs and values of the people in the country. Apple is
a very big and established brand so social factor work positively for the company and its
products. Apple products create enthusiasm towards the product for the people in the society
because of the inclusion of new technology and innovations that give new experience to the
customer's. Increasing number of mobile phone users or technology users depicts that society
becomes welcoming towards all the technological inclusions in the life style that create huge

impact on the market of Apple. Social factor also boost to patriotic sentiment that sometimes
create negative impact on the sale of the products for multinational companies.
Technological Factor: Technological factor include all the technological development. Apple
has shown constant innovation in the technology sector that result into strong market image of
the company. Apple has developed wide market in technology and all the companies are
showing interest in technology installation of Apple. Cloud Computing has immensely
demanded by the companies that result into huge sale. Technology development also set to
growing demand of mobile phones and a big consumer base of mobile phones (Lasserre, 2017).
Mobile phones is a kind of product that always attract the consumers because of the latest
inclusions of technology. Apple has influenced the whole market of technology with its
innovation and development.
Legal Factor: Legal factors involve all the laws and regulations of the countries. Privacy
become the big issue in this century and because of technology development privacy has become
the crucial issue for all the peoples. Social networking gives luxury to connect with family and
friends but at the same time it leads to the privacy issue. Countries are having a very strict law
related to the privacy of all the users. Apple has sustained faith in all its users regarding privacy.
Legal factor influence the business in both the ways positive and negative.
Environmental Factor: Environmental factor involve all the environment related aspects
associate with the business. Apple always focuses on the environmental friendly technology
innovation that also turn out to be a clear image in the market. Environmental factor also bring
energy efficiency as a part of the technology business. Apple has also focused in improving
energy efficiency of all its products. Environmental factor put huge impact on the growth and
development of the businesses and all the businesses involve in multiple campaign related to the
environment protection because of its impact on the business.
PESTLE of Samsung
Political Factor: Samsung is a company that deals in electronic related products so all the
policies of the government related to the electronics create its impact on the Samsung. Political
stability is a big issue for companies in developing economies but stable economies provide all
the luxury to Samsung to conduct its operations profitably (Barca, 2017). Instability leads to
inefficient business environment. Samsung still could manage its profits in unstable economies

Economical Factor: Economical factor involves the influence of the economic situation of the
country. Slow economic growth also create its impact on the productions of company's products.
Economic factors influence the sales directly because it affects the purchasing power of the
consumers directly.
Social Factor: Social factor include the social belief of the people in the society towards the
company and its products. Samsung has a very strong customer base in established market but in
the new market multiple social factors affect the sale of the company's products very strongly.
Social factor also involve the trust factor of the people in society related to the company's
products and services. Samsung is a big brand that carry the strong market image result into
positive approach of the people towards its products and services.
Technological Factor: Technological factor attract all the technological development a
company produce. Electronics is a very innovative field every day new technologies are
introducing in the market by big companies like Apple and all others so the inclusion of new
technology becomes crucial in selling the products. Samsung is good known for its technological
development that result into huge market share for the Samsung.
Legal Factor: Legal factor involve all the laws related to the business of the Samsung. Samsung
has a huge brand image and that is a result of inclusion of all the legal laws related to its products
in making the strategies for its business. Legal factors also involve the labour laws and Samsung
is well-known to conduct its operations as per the laws.
Environmental Factors: Environmental factors involves the inclusion of the environmental
aspect in the business strategies. Samsung has been wisely involved in environment protection
and its related aspects. Samsung also focuses on the green innovation that favours all the needs
of the environments in the innovation development (Hill, 2017). Environmental factor shines the
brand image of company's products in the society that result into increasing sales. People are
recently aware about environment awareness and it impacts the businesses based on the
environmental issues.
The competitive Environment
Competitive Analysis Framework
Basis of Analysis Panasonic Sony
No.of Employees 271678 114400

Customer Base Customer base in more than 75
countries
Customer base in more than 80
countries
Products Electronics Products,
Automotive and Housing
Products.
Electronics Products
Price Range Medium- High Medium-High
Strength High quality products in the
affordable price range.
Flexible approach towards
company's growth and
development (Morschett and
et.al., 2015).
Customer oriented company.
Large and rich product
portfolio.
Well planed research and
development strategies.
Involve in multiple corporate
social responsibilities.
Price range covers medium to
high level that include major
customer base.
Well recognized brand
worldwide.
Big influence in Asian
market .
Focus on consumer reliability
in all its products.
Huge market share.
Realistic approach towards
Diversified brand because of
its products.
Well known brand image.
Efficient product line.
Effective marketing strategies.
Dominating market share.
Well established customer
base.
New technology inclusion in
all the products.
Emerging as a global leader.
Diversified and dynamic
product range.
Product range include every
aspect of the customer
requirements.
Attractive branding.

company's growth and
development with effective
marketing strategies.
Weakness Non affordability of lower
class as the price range covers
middle to upper.
Non trendy products.
Inefficient changes in
technology.
Managerial issues regarding
company's operations.
Slow growth rate as compare
to other competitors in the
market.
Non aggressive marketing
techniques as compare to other
competitors in the market.
Loosing market share from
established markets.
High pricing that cause to non
affordability.
Vulnerability in data base
related to the consumer base.
Inefficient technological
changes.
Limitation in the product
options.
Declining growth rate.
Non availability of trendy
product line.
Positioning Panasonic has a well efficient
operation team that position all
its products in the most
suitable market for its
products.
Based on the market demand it
fluctuates its supply in
different countries.
Sony position all its product
based on the research and
development.
Competitive analysis
techniques used to make an
estimate market share.
Based on all the figures related
to the estimated demands sony

Effective marketing strategies
it used to make a trend of all
the products in the potential
consumer base.
Based on the pricing of the
products optimum positioning
strategies make and
implement.
position all its products.
Effective and efficient supple
chain management is a part of
positioning process.
Segmentation is crucial part
and company conduct proper
research to segment all the
potential customer base for all
its products.
Targeting is very crucial and
company use proper
techniques to target all the
potential customer base.
Effective marketing strategies
is a part of positioning process.
Based on the estimated
requirements proper
positioning strategies make
and implemented.
Challenges and Opportunities
Challenges
As per the competitive analysis of booth the companies certain challenges that influence
the market performance of Apple and Samsung. Such challenges are:
Plenty of Choices: Plenty of choices is one of the most crucial challenge both the companies
facing. Customer has plenty of options available in the market (Morden, 2016). Based on the
affordability consumer can switch to any brand that offers the best in the suitable budget for the
customer. Plenty of choices always opens up the whole market in the favour of the customer.
Huge competition result into reducing market share of every company.
High Pricing: Price range for Samsung and Apple are goes for medium to high and even in the
medium range affordability becomes the big issue for the middle class back ground customer

base (Frynas and Mellahi, 2015). Because of the availability of other brands price become the
crucial aspect for the consumer choice and it results into decreasing numbers in sale of high
pricing brands.
Unstable Market: High competition always leads to unstable market. Unst ability result into
decreasing numbers in the sales figures of big companies. Samsung and Apple both got tough
competition from all the competitors in recent years because of that the whole market become
unstable for both the companies.
Opportunities
As per the strategic analysis of both the companies both companies has various
opportunities in the market. Such opportunities include:
New Technology Inclusion: Samsung and Apple both the companies has the immense
opportunities to introduce new technologies in the market. New technology always attract to the
consumer base and that result into increasing number in sales. Samsung and Apple both
companies are best known for its innovation and techniques. Both the companies can give the
huge boost in the market share by introducing new technologies. New technology inclusion
create multiple new opportunities to create more customer base.
Increasing Sale: As per the competitive analysis Samsung and Apple both companies has an
immense opportunity to increase its sales figure by launching new products and services. Both
the companies can even introduce new product segment that enables the new customer base very
strongly (Hitt, Ireland and Hoskisson, 2016). Samsung and Apple both are well-established
brands that has the effective goodwill both the companies can utilize its brand image and
dominate the whole market with its products and services. Effective supply chain management
model also create an impact in increasing the sales figures. Both the companies can strengthen
the supply chain management to have more numbers in sales.
Brand Image: Samsung and Apple both the companies has opportunity to polish the brand
image of the companies. Brand image becomes very crucial aspect of company's growth and
development. Strong brand image always leads to more possibilities of growth and development.
Image of the brand always take part in selling the products of the company (Hanson and et.al.,
2016 Cook, 2015). Samsung and Apple both are the well-established brand that dominate the
whole market but new inclusions will lead to more possibilities in untouched market for both the
companies.

Increasing Profitability: As per the current market situation Samsung and Apple both the
companies has the immense opportunities of increasing the profit shares for both the companies
with increasing number of sales. Increasing profitability is a big task in today's competitive
environment not just for the big companies but for the small companies as well but both the
companies has the fair opportunities to increase profit shares and market share of both the
companies.
RECCOMENDATION and CONCLUSION
Samsung and Apple can improve profitability and market share with an effective strategic
planning and implementation of efficient strategies in all the operation processes. Effective
strategic planning can boost both the company's product demand and that will lead to high
profits. This report conclude about the internal analysis and its role in company's growth and
development. This report also conclude about the external analysis of the company that helps in
making an effective and efficient strategies to run and dominate the whole market. This report
also conclude about the competitive environment that involve existing competitors in the
company's business. All the aspects that play the crucial role in decision-making has been
concluded in this report based on the competitors in the market. All the challenges has been
concluded in this report that a company needs to face and this report also conclude about the
opportunities that possibly exist based on the strategic management. This report concluded very
efficiently about the effective strategic management and its related factors.

References
Books and Journals
Barca, M., 2017. Economic foundations of strategic management. Routledge.
Cook, N.D., 2015. Crisis management strategy: Competition and change in modern enterprises.
Routledge.
David, F.R. and David, F.R., 2019. Strategic management: A competitive advantage approach,
concepts and cases. Pearson.
Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press,
USA.
Hanson, D. and et.al., 2016. Strategic management: Competitiveness and globalisation.
Cengage AU.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function.
Macmillan International Higher Education.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Morden, T., 2016. Principles of strategic management. Routledge.

Morschett, D. and et.al., 2015. Strategic international management (pp. 978-3658078836).
Springer.
Rothaermel, F.T., 2017. Strategic management. New York, NY: McGraw-Hill Education.
... .