SWOT

Strengths
The value of major brands: According to a survey made by Interbrand, Samsung
has made to the top 10 most valuable brands in 2015 planet with the brand
value about 45,297$m. Samsung is the worlds number one marketer of mobile
phones with 21.7% of the worlds largest market share in the second quarter of
2015. Apple is number two with 14,1%.

Top 5 smartphone vendors - Worldwide Shipments, Market Share, and Year-Over-Year

Growth, Q2 2015 Preliminary Data (Units in Millions) - Source: IDC

Samsung has a lot of experience in the field of mobile phone manufacturing.

Also, the ability to produce the details of hardware is one of the advantages
over competitors.
Friendly to environment products: Compared with rivals, Samsung consumers
appreciate in the manufacture of electronic products environmental friendliness.
Samsung has also developed several programs to recycle production.

 The low production costs: because Samsung placed many manufacturing

headquarters in the cheap labor markets (such as Vietnam market)
Samsung has impressive research and design capabilities. It was able to create
and roll out Samsung Pay, a payment app with similar capabilities to Apple Pay,
in less than a year. Samsung has been able to replicate many of the capabilities
of both Apple Inc.s phones and Google Inc.s Android operating system for
mobile devices.
Samsung has strong manufacturing and marketing capabilities.
Weaknesses
The products of Samsung smartphones currently no breakthroughs and has traits
similar products ahead of competitors (Apple)
Samsung has not been able to match Apple Inc.s marketing capabilities for
smartphones. Its share of the U.S. smartphone market fell by 2.3% between
2014 and 2015. In contrast, Apples share price grew by 34.9%. Samsungs
marketing efforts are not as sophisticated as Apples.
Some Chinese competitors are catching up to Samsung in the smartphone
market. Between 2014 and 2015 Huaweis share grew by 48.1%, and Xiaomis
share grew by 29.4%.
Samsung is heavily dependent upon consumer electronics sales in markets with
limited potential for growth, such as the United States and Europe, for much of
its revenue.
Samsungs devices use the Google Android open source operating system.
Many consumers seem to view Android as an inferior product to Apples iOS.
The public has not been as accepting of Android as the tech community has.
Some consumers view Apple products as more advanced and dependable than
Samsung products.
Opportunities
The smartphone market is a very big market and at the moment, it shows no
signs of saturation. Together with the non-stop changes in technology and the
reception of customers. In the future, this market will still be hot and many

producers will still invest a lot in this and try to find themselves a good chance
to grow.
Low price smartphone market is experiencing strong growth, and this is also a
market segment that Samsung is pursuing.
Growing market for smartphones, tablets and other mobile devices, especially
in developing regions such as Africa and India, where consumers are unfamiliar
with PCs. Sales of tablets finally overtook sales of traditional personal
computers in 2015.
Increased demand for tablet and smartphone-based solutions such as Samsung
Pay.
Growing online market from sales channels such as Amazon.com.
Threads
Pace of technological change: the smartphone makers are facing with
tremendous pressure from the development of technology. Firms must
constantly launching new products, with superior features than the competition,
product life cycles therefore becomes very short, if not run up against the
competition, a producer manufacturing will become the losers.
Changes in the price: the fierce price competition in the smartphone market is a
huge risk for the manufacturers, where multiple phone manufacturers from
China or Taiwan launched the product offering attractive and very low prices
compared to the average.
Violation of copyright and patent technology: the Samsung and Apple lawsuits
between the best testament to the risks to competition from rivals in the fight
competitive market share brand protection.
Apple has emerged as the dominant smartphone and tablet brand in some
markets, such as the United States. Samsung has not been able to overcome
Apples reputation for reliability.
Apples reputation for quality, reliability and sophistication seems to be
growing.
The Google Android operating system, which Galaxy devices depend upon, is
not as popular with average people as iOS is.

 Declining or stagnating middle-class incomes in North America and the United

States could reduce buying power of customers in those key markets for
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 Samsungs is falling.

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Opportunities
Big market and it has
no signs of saturation
Low price smartphone
market is experiencing
strong growth, and this
is also a market
segment that Samsung
is pursuing.
Growing market for
smartphones, tablets
and
other
mobile
devices, especially in
developing
regions
such
as
Africa
and India.
SO
Product differentiation
(O1+O3+S5)
Increase
customers
(O2+S2+S4+S6)

Strengths
High brand value.

A lot of experiences.
Eco-designs.

Low production cost.

High investment for
R&D.
Strong manufacturing
and strong marketing
capabilities.
Weaknesses
WO
Lack of breakthroughs. Expand the market
Has not been able to
(O1+O3+W1+W3)
match
with
Apple
Inc.s marketing capabili

1.
2.
3.
4.

Threads
Pace of technological
change.
Changes in the price
Violation of copyright
and patent technology
Chinese manufacturers
such as Huawei and
Xiaomi could emerge
as serious rivals to
Samsung

ST
1. Improve and develop
new products
(S1+S2+S5+T1+T2)
2. Preparation campaign
(S2+S4+S6+T4)

WT
1. Pricing (W2+T4)

ties for smartphones.

Some
Chinese
competitors are catching
up to Samsung.
3. Heavily dependent upon
consumer in markets
with limited potential
for growth (US & EU)
for much of its revenue.
4. The public has not been
as accepting of Android
as the tech community
has.
SO
Product differentiation (O1+O3+S5)
Keep following the campaign of creating differentiation in products to compete
with rivals base on the current advantages like big market, no saturation,
growing market for smartphone and the strengths of R&D that Samsung is
paying a lot of attention about.
Increase customers (O2+S2+S4+S6)
Since Low price smartphone market is growing strongly and Samsung is a
company which has a lot of experiences, the cost of making product is not high
and Samsung also has strong manufacturing, marketing capabilities, Samsung
can attract a lot of customer by producing products with good quality but much
lower in price.
WO
Expand the market (O1+O3+W1+W3)
With current situations, Samsung can find new markets and focus more on
developing those markets to gain more profit
ST
Improve and develop new products (S1+S2+S5+T1+2T)

With many strong aspects that Samsung is having, they can focus more on this
to go through those threads to keep current position in the market
Preparation campaign (S2+S4+S6+T4)
Many new rivals are join the smartphone market but Samsung has many
experience together with strong fundamental, Samsung is still a big competitor.
Since Samsung is still strong, preparing moves and take all steps carefully, it
can fight well with other companies.
WT
Pricing (W2+T4)
With those weaknesses and threads, deciding price for products carefully is a
must thing to do if Samsung doesnt want to lose market share to other
competitors.