A strategic analysis of Samsung Electronics Company Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the meaning of micro and macro analysis and how companies leverage them to gain a competitive grip in their respective industries
- Understand the broad macro and micro environment of Samsung Electronics Company in terms of political, economic, social, technological, environmental, and legal factors (PESTEL/PEST/STEEPLE). Use the swot analysis to understand the company’s strengths, weaknesses, and strategic options arising from the opportunities and threats identified from the Pestle analysis.
- Learn how to apply strategy business models and frameworks such as Pestle/Pest/Steeple, Swot, etc. to real company cases.
1.0 INTRODUCTION
Samsung Electronics is a global electronics company that was established on January 13, 1969, and it has developed into one of the world’s largest technology companies and is recognized among the top ten global brands in the world. Samsung Electronics Company engages in the manufacturing and selling of electronics and computer peripherals. The company is overwhelmingly present in South Korea and it has a strong impact on all the sectors in the country. The company’s mission is to offer high-quality innovative technology and electronic devices and services. In trying to achieve this, the company employed a great organizational culture which aids in shaping the company’s productivity. The company is acting as a transformation to the world of TVs, smartphones, wearable devices, tablets, digital appliances, network systems, medical devices, semiconductors, LED solutions, and many others. The company’s business is divided into two divisions namely; device eXperience, device solution, and Samsung Display and its subsidiaries which deals in the panel display business, and Harman International Industries, Inc. and its subsidiaries, which operate businesses related to automotive electronics components, etc. The company generated an annual revenue of $245.7 billion in 2022 and a market share of 27.14% in the first quarter of 2023 coming second to its greatest competitor Apple.
The following sections of this report use the PESTLE analysis framework to describe how external factors such as legal restrictions, and competition, affect Samsung’s productivity, and how trends like the growth of the population influence its revenues, among others. Through a SWOT analysis framework, we identify the company’s major strengths, weaknesses, and threats and discover major key drivers and opportunities for growth.