Swot Analysis of Samsung

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SWOT analysis of Samsung
This is a Samsung Electronics SWOT analysis for 2013. For more information on how to do SWOT analysis please refer to our article.
Company background

Name | Samsung Electronics Co., Ltd. | Industries served | Consumer electronics, Telecoms Equipment, Semiconductors, Home Appliances | Geographic areas served | Worldwide | Headquarters | South Korea | Current CEO | Kwon Oh Hyun | Revenue | ₩ 201.103 trillion (2012) | Profit | ₩ 23.845 trillion (2012) | Employees | 221,726 (2012) | Parent | Samsung Group | Main Competitors | Apple Inc., Nokia OYJ, Intel Corporation, LG Display and LG Electronics, Sony Corporation, Texas Instruments Inc., Lenovo Group Limited, Hewlett-Packard Company, Sanyo Electric Co., …show more content…

Large market share has its advantage, bargaining power, that Samsung can use to further reduce costs and demand for better contract conditions.
7. Ability to market the brand. Samsung is named as top rising brand by Interbrand and is the 9th most valuable brand with value nearly $33 billion. It has risen by 40% from 2011 to 2012. This was mainly achieved due to company’s ability to market the brand in sporting events and social contributions.
Weaknesses
1. Patent infringement. Samsung is infringing Apple’s and some other firms’ patents, thus, damaging its reputation and having to pay a huge amount of money in damages.
2. Too low profit margin. Samsung Electronics is the largest technology company in the world in terms of revenues but it has a low gross profit and net profit margins. Although its smartphones business is quite profitable, Samsung’s profit margin is low due to its semiconductors sales and aggressive price cuts.
3. Main competitors are also largest buyers. Apple, Sony, Dell, HP are the main buyers of Samsung Electronics products as well as the firm’s main competitors. Such situation would be favorable to Samsung (if competitors could not find complementary products and would form a relatively low share Samsung’s revenues) because it could use its bargaining power over competitors. Due to reverse conditions (competitors can find

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