SWOT analysis of Samsung
Strengths Weaknesses
Samsung is the world’s most Samsung has not been able to match
successful electronics manufacturer. Apple Inc.’s marketing capabilities for
It is the world’s largest manufacturer smartphones. Its share of the U.S.
of television sets, liquid crystal smartphone market fell by 2.3%
display (LCD) panels, mobile phones between 2014 and 2015. In contrast,
and smartphones. Apple’s share price grew by 34.9%.
Samsung is the world’s number one Some Chinese competitors are
marketer of mobile phones with catching up to Samsung in the
21.4% of the world’s largest market smartphone market. Between 2014
share in the second quarter of 2015. and 2015 Huawei’s share grew by
Apple is number two with 13.9%[2] 48.1%, and Xiaomi’s share grew by
Samsung has impressive research 29.4%.
and design capabilities. It was able to Samsung is heavily dependent upon
create and roll out Samsung Pay, a consumer electronics sales in
payment app with similar capabilities markets with limited potential for
to Apple Pay, in less than a year. growth, such as the United States
Samsung has been able to replicate and Europe, for much of its revenue.
many of the capabilities of both Apple Samsung’s devices use the Google
Inc.’s phones and Google Inc.’s Android open source operating
Android operating system for mobile system. Many consumers seem to
devices. view Android as an inferior product to
Samsung has strong manufacturing Apple’s iOS. The public has not been
and marketing capabilities. as accepting of Android as the tech
Samsung has long-standing community has.
relationships with retailers in the Some consumers view Apple
United States and Europe that products as more advanced and
provide a steady sales channel for its dependable than Samsung products.
products. Samsung’s marketing efforts are not
as sophisticated as Apple’s.
Opportunities Threats
Growing market for smartphones, Apple has emerged as the dominant
tablets and other mobile devices, smartphone and tablet brand in some
especially in developing regions such markets, such as the United States.
as Africa and India, where Samsung has not been able to
consumers are unfamiliar with PCs. overcome Apple’s reputation for
Sales of tablets finally overtook sales reliability.
of traditional personal computers in Apple’s reputation for quality,
2015.[3] reliability and sophistication seems to
Increased demand for tablet and be growing.
smartphone-based solutions such as The Google Android operating
Samsung Pay system, which Galaxy devices
New technologies such as wearable depend upon, is not as popular with
tech average people as iOS is.
Growing middle class in developing Declining or stagnating middle-class
world will increase market for incomes in North America and the
consumer electronics. United States could reduce consumer
Growing online market from sales buying power in those key markets for
channels such as Amazon.com Samsung.
Chinese manufacturers such as
Huawei and Xiaomi could emerge as
serious rivals to Samsung. These
companies’ share of the critical
mobile device market is growing while
Samsung’s is falling.
Apple could enter more consumer
products areas such as home
appliances and cameras and directly
compete with Samsung in those
markets.
