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1、Strategic Analysis on Samsung Electronics.Brief IntroductionSamsung Group is a diversified group, with operations in various sectors such as electronics, financial services, chemicals and infrastructure. Samsung has operations across the world .It is headquartered in Seoul, South Korea and employs a
2、bout 276,000 people.Samsung Electronics was founded in 1969 in South Korea with Samsung Group as its largest shareholder.10 years ago, the brand “Samsung” was just a symbol for cheap electrical appliance among consumers but now it becomes one of the leaders in high-tech digital products.In 1992, Sam
3、sung Electronics began manufacturing in China. Samsung set up SEHC in Huizhou. Since then, Samsung has been investing in China and keeping cooperating with operations in China. Nowadays, China is the country which Samsung put main money into.Strategic Environment Analysisi. External Environment of S
4、amsung 1. General Environment AnalysisThe general environment of Samsung includes four terms: Political/legal segment: A stable political environment should be formed for a company, as the situation will provide a stable development environment. For example, in 2006 China has brought some new politi
5、cal decisions.One is to protect the rights of consumers; the other is to promote the competition environment which is more equitable.As to the legal force, New “Telecommunication Law” is drafting out and this law includes lots of constraint articles for electronic industry.For Samsung:The environmen
6、t could make Samsung change its market into more stable countries such as China. And new competition policy would let it change its strategy in competition especially in price.Economic segment: Global economic has already came into tardiness phase, problems of high price of oil, global imbalance and
7、 the increase of high public liability of developed country would make the economic instable. The financial crisis happened in 2008 has already proved this. However, the GDP of whole world increase intensively. This might impact an organization in lots of terms such as supplier and customer.In China
8、 economic increased intensively during the last few years. GDP of China nearly up to 10.1% in 2010. Thus the environment of economic environment in China is good for organizations.For Samsung：It would be impacted heavily from the declining of global economic, however, in China, stable and increasing
9、 market would let Samsung put more focus on it. And the price of Samsungs products should be changed for the different condition of the different countries.Technological segment: Generally speaking, technology nowadays could be described as huge new technology coming forth, especially in global info
10、rmation. And the pace is more and more fast. The amalgamation of information sciences, life sciences, matter sciences and cognitive sciences made information technology used in more areas.Demographic segment (in China): We can understand the demographic distribution from the table below:GrossPercent
11、City66557530649.68County67414954650.32Male68685257251.27Female65287228048.73Age 0-1422245973716.6015-5993961641070.14Older than 6017764870513.26Sum1370536875 From the table we could see that population in counties is larger than in cities, male and female numbers are approaching to a balance and the
12、 largest amount of people are located between age 15 to 59. This means more potential markets are engendering by the increasing of people in China.The government of China also does his best effort on public sanitation and speed up the development of education these years. As a result, the people qua
13、lity in health aspect and education aspect both increase quickly.For Samsung:Huge population gives Samsung lots of new opportunities. As an electronic industry, Samsung put most of its market in areas which has high earnings such as big cities. More people in cities than before would enrich Samsungs
14、 market. Also, potential market and potential labor market would be given since the increasing of city population.2. Industry Environment AnalysisPorters Five-Forces Model of Industry CompetitionPOTENTIAL ENTRANTS: as to the strong strength of entry barriers in electronic industry, there cant be man
15、y new entrants developing so fast in a short time. CUSTOMERS: small bargaining power of customers. Samsung should keep improving its technical R & D capabilities to gain sustainable uniqueness.SUPPLIERS: main strategic partnership between suppliers is joint R & D and technology transfer.SUBSTITUTES:
16、 easily can be substituted by other new electronic products INDUSTRY COMPETITORSRivalry Among Existing Firms: NOKIA SONY SiemensBargaining power of suppliersBargaining power of customersThreats of substitute products or servicesThreats of new entrantsSpecifically, the industry environment of Samsung also includes four terms: Threats of new entrant
