Situation Analysis of Samsung Marketing in the Australian Market

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This report provides a comprehensive marketing analysis of Samsung's operations in the Australian market. It begins with an executive summary and introduction that outlines the scope and objectives. A detailed PESTLE analysis evaluates the political, economic, social, technological, legal, and environmental factors influencing Samsung's business environment. The micro-environment analysis examines Samsung's mission, objectives, business portfolio, market position, suppliers, intermediaries, competitors, and customer analysis. A TWOS matrix is used to assess strengths, weaknesses, opportunities, and threats, followed by recommended marketing strategies. The report concludes with a summary of findings and references.
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Marketing
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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.
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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
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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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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) .
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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
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MARKETING 6
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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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
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MARKETING 8
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 extent Deserti, &
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
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MARKETING 9
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 the domain (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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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
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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.
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MARKETING 12
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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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. In 2018 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. In ISPIM 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.
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Shao, L., Wu, X., & Zhang, F. (2016). Strategic Sourcing Under Competition and Asymmetric
Cost Information. Available at SSRN 2741504.
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