SYNOPSIS

Samsung Group is one of the biggest group of

companies in the world. This is beyond intriguing to
inspect the strategies and business models it used in
order to become one of the largest conglomerates.
More specifically, however, this is an in depth
analysis about Samsung Electronics, the principal
subsidiary of Samsung Group which is also the largest
smartphone manufacturer in the world.

Mahmudur Rahman
Student of University of Central Lancashire
E-Mail: mrahman3@uclan.ac.uk

Table of Contents
Abstract ...................................................................................................................................... 2
Introduction................................................................................................................................ 2
Importance and relevance ......................................................................................................... 3
Business Analysis ........................................................................................................................ 4
Superior Customer Value ........................................................................................................... 8
Sustainability .............................................................................................................................. 9
Summary and Conclusion ......................................................................................................... 12
Inspire the World, Create the Future! .............................................................................. 12
Business, Economy and Strategy Forecast ........................................................................ 12
References ................................................................................................................................ 13
Table of figures ......................................................................................................................... 15
Appendix................................................................................................................................... 16
5C Analysis ............................................................................................................................ 16
PEST Analysis ........................................................................................................................ 17
Business Model Canvas ........................................................................................................ 18
SWOT Analysis ...................................................................................................................... 19
TOWS Analysis ...................................................................................................................... 20
5 Forces Analysis .................................................................................................................. 21

Mahmudur Rahman
mrahman3@uclan.ac.uk

Abstract
The unprecedented growth in the Information and Technology sector hasn't just changed the
behaviours of human beings; it has also changed the methodology and business strategies of
the companies. Despite the recent debacle in the global economy, there has been a steady
growth in the market for / of higher class products and while it might seem like the biggest
revenue generating sector, the bulk still comes from the mid-low range products. It is
interesting to learn how the companies manage, operate and execute the daily business with
effective objectives of a concern like Samsung Electronics. This paper is focused on the
importance and relevance of the firm, what their customer values are and how they manage
their goals (which business models and strategies they have).

Introduction
Samsung Group is one of the biggest international conglomerate company of the world
founded by Lee Byung-chul in 1938 in South Korea. The company started their development
in the electronics business in the late 1960s. According to Forbes Media, Samsung Group is
the 18th largest company of the world1 and 2nd largest tech company of the world2.
The principle subsidiary of the company is Samsung Electronics, which is the worlds largest
information technology company measured by revenues. With more than 326.000 employees
in 84 countries around the world and a revenue of 167.42 billion euros, it has become the
largest television and smartphone manufacturer in the world3.
This is beyond exciting to appraise the companys performance and how it has developed to
an innovative and high quality brand, which is widely recognised, especially by the target
group (private and business customers). Although Samsung has great competitors in the
business market they extraordinarily utilise their strong business models and strategies.

Image 1 Samsung Timeline (Source: Samsung, 2015)

Chen, L.C. (2015) The World's Largest Companies 2015, Available at: http://www.forbes.com/sites/liyanchen/2015/05/06/the-worldslargest-companies/ (Accessed: 24th October 2015).
2

Chen, L.C. (2015) The World's Largest Tech Companies: Apple Beats Samsung, Microsoft, Google, Available
http://www.forbes.com/sites/liyanchen/2015/05/11/the-worlds-largest-tech-companies-apple-beats-samsung-microsoft-google/
(Accessed: 24th October 2015).
3

at:

Wikipedia (2015) Samsung Electronics, Available at: https://en.wikipedia.org/wiki/Samsung_Electronics (Accessed: 20th October 2015).

Mahmudur Rahman
mrahman3@uclan.ac.uk

Importance and relevance

One of the most important task for the leadership of Samsung is to bring their company up to
date with the newest technologies, product development and business strategies to hold their
position in the market. However, their customers demands have a pivotal role for this
development.
Searching online, buying online, to be online with our mobile phones, laptops, TVs, this is the
trend. Samsung focuses in these fields precisely, in this way they can reach their customers
and win new target groups. Almost all product segments of the company is relevant to
everyday life and customer needs. Smartphones, TVs with unique functionalities and
customer oriented hardware devices makes Samsung indispensable.
There are big competitors in the business market, but what makes Samsung so successful?
The central key of to the success of Samsung Electronics is the investment of a lot of resources
for innovations. Innovations in product development and designs in all divisions brought
respected design awards annually. Samsungs products are regarded as leading the quality,
performance and value categories.
As leading electronic components manufacturer Samsung makes great products with
considerable price-performance ratio and Samsung doesnt use their products for themselves
only, even a lot of its competitors buy and use Samsung Electronics components for their
business issues.

Image 2 Best of Innovations and Eco-Design Awards at International Consumer Electronics Show (CES) 2014

Mahmudur Rahman
mrahman3@uclan.ac.uk

Business Analysis
As already mentioned in the introduction Samsung Electronics is the largest information
technology company and number one LCD panel, TV and smartphone manufacturer of the
world. Hence, it is rather difficult to defend the leading market position. However, Samsung is
dealing with its challenges and pressure efficiently. The companys main targeted group is
younger generation and provides them with customer oriented and qualitative innovative
products. The youth as a key customer is the best strategy in this business. According to
Nielsen Company almost half of mobile users are younger than 254. Investment in innovations
is the key of success and the localized product development makes Samsung more successful.
With more than 2500 patents in EPO (European Patent Organization) Samsung is on the top
of the list which justifies how important the innovations for the firm are.
Almost everyone knows the brand Samsung mostly as a mobile and TV brand this gives them
a true advantage to put new products on the market. Due to its good relationships with
retailers, Samsung can sale their products and services very efficiently and quickly.

Image 3 Global smartphone market share based on shipments; Source: statista

The graphic shows clearly, that Samsung has a good market position, but the market share is
not more increasing for the company because first the key consumers have less growth
potential and secondly other Chinese competitors are getting in the smartphone market e.g.
Huawei.

Nielsen (2013) Smartphones Keep Users in India Plugged in, Available at: http://www.nielsen.com/us/en/insights/news/2013/smartphoneskeep-users-in-india-plugged-in.html (Accessed: 19th November 2015).

Mahmudur Rahman
mrahman3@uclan.ac.uk

One of the weak sides of the firm is the brand loyalty. As the market is big enough for
consumers, therefore they can decide about brands and solutions easily. It makes the work
for Samsung much harder. Furthermore, it confuses the customers about the brands in
Samsung because there are too many brands in the firm. Although the company is a loner in
production section regardless Samsung is highly dependent on Google. Samsung Electronics
smartphones has Android as Operating System (OS) only therefore Google has a profound
impact over Samsung.
The chart below shows that there isnt a Two-Horse race in the smartphone anymore. Other
companies are growing faster and faster. The most important tasks for such a company must
be to produce cost-efficient products and minimize the company internal costs. Samsung has
a complex corporate structure which costs a lot for the business.

Image 4 Worldwide smartphone shipments; Source: statista

The market situation in the LCD televisions is a little different than the smartphone market. As
the largest LCD TV manufacturer Samsung has a better position in the market than
smartphone and the situation trend is rising with regard to global LCD TV market share (see
below).
Nevertheless, the fact must be remembered that likewise the major competitor LG Electronics
is showing very strong growth. To have a competitive advantage Samsung should concentrate
their business in two main areas, smartphones and LCD TVs comprehensively.

Mahmudur Rahman
mrahman3@uclan.ac.uk

Image 5 LCD TV global market share; Source: statista

The company can exploit both business areas to its own competitive advantage. Samsung has
an exemplary design and innovation department, as well as sufficient capital to invest
internally. Similarly, as the leader in the market, it is much easier to market of new technical
solutions. According to statistic, India would become the third largest smartphone market by
2017. More business establishment in India would bring new challenges and will be able to
open a new door towards success.

Image 6 India to Become the Third Largest Smartphone Market by 2017; Source: statista

Mahmudur Rahman
mrahman3@uclan.ac.uk

Everything goes online! Consumers are searching, comparing and buying online. Almost every
competitive companies are already selling their products and services online. The statistic
below shows how rapidly the ecommerce business is growing. There is no escape for
companies like Samsung from the ecommerce sales.

Image 7 UK Retail Ecommerce Sales, 2014-2019; Source: eMarketer

Samsung Electronics has made good progress in aforementioned direction. Nearly all technical
devices are available in the online shop from the company. Still there are more possibilities in
this market, to get bigger and have unique position will require more resources and
investments in the ecommerce development. One cannot deny that Samsung has the
resources to strengthen the business.
To become the leader is easier than to be the leader. There are big concerns like Apple which
works hard for this position as well and it makes a big business threat for Samsung.
Furthermore, the manufacturing costs are increasing this poses a major challenge for the
company. Other threats that Samsung should think about are new or stricter laws relating to
smartphones, data storage, TVs or laws against the company. To overcome all these effects it
is more than important to research and develop business strategies but also think about
political, economic, social and technological aspects beforehand.
Some business tools were used to get understandable and useful information for the
business analysis of Samsung Electronics in this report! See below: Appendix

Mahmudur Rahman
mrahman3@uclan.ac.uk

Superior Customer Value

Creating value is of great significance in the world of business. From the customers
perspective, they always want product that are useful to them. Product value lies on their
usefulness and service they will provide to their consumers. Companies have to be a customer
value maker in order to become or defending the leading market position.
The most interesting question in this part of the report will be definitely what factors help
Samsung Electronics create superior customer value. To create, offer and deliver superior
customer value there are some other factors that have an important role. First of all
companies need a product or a product segment which is innovative and qualitative as well as
cost-effective. As already mentioned above all these characteristics are accurate to Samsung.
Moreover, the value propositions of the company is very important and relevant. The Value
Proposition Canvas analysis shows that Samsung Electronics fulfills almost everything of
customers needs and shows how the company is creating value for their customers.

Image 8 The Value Proposition Canvas - Samsung Electronics

Another influence has the topic customer loyalty. In this case Samsung has potentiality to
improve. As already mentioned, Apple, a major competitor, has better customer loyalty
programmes. Especially the success factors of Samsung have a strong role in the customer
value development. Samsung with their innovations, excellent designs and high-quality
products in a cost-effective price segment brings them a competitive advantage, as well as a
strong value propositions.
Regardless time and whereabouts the companys products are available all over the world
whether in electronic stores, wholesales houses or online. The products they produce are
easily accessible and applicable.
Mahmudur Rahman
mrahman3@uclan.ac.uk

Sustainability
Inspire the World, Create the Future! (Samsung Sustainability Report, 2015, p.2) with this
slogan Samsung Electronics announced their project Vision 2020 in 2009. The following key
aims of this project was drafted to achieve some extraordinary goals for the company:

To become an innovative company

To be one of the top 10 Worlds Best Workplaces
To get creative leader in building new business markets
To be worldwide concern that fascinate the worlds best talents
To achieve 400 million USD in sales
To become the leader in the global IT business
To become a company under top 10 global company by 2020

To achieve all this goals Samsung has recognised their organisational structure. As the chart
shows there are three key divisions for Samsung Electronics. With depth focusing on these
business divisions they should be able to get some competitive advantages.

Image 9 Samsung: Organizational Chart

Image 10 Samsung: Products with No. 1 Market Share

Mahmudur Rahman
mrahman3@uclan.ac.uk

According to the aforementioned graph, it can be considered that Samsungs product

development progress in the global market share is in the right path. According to an analysis
of Samsung Tomorrow, the company can achieve almost all of their goals by 2020 but the sales
forecast vision was overvalued. Although Samsung has achieved a 38% increase in sales it is
almost unfeasible to achieve around 400 million USD in sales.
Nevertheless, Samsung Electronics has very good strategies for each goals. For executing their
plans of sustainable growth and profitability, Samsung is specifically focusing in the following
areas:

R&D (Research and Development)

Patens
Marketing
Human Resources
M&A (Mergers and Acquisitions)
Capital expenditure

Image 11 Samsung: R&D and Patens Analysis

Samsung is well known as one of the R&D investment and patents Holder Company of the
world. The concern allocates great importance in innovative product development and its
worldwide patent. The company has also reorganized the R&D investments and strategies.
Samsung is focusing in software, overseas R&D centres (localized technologies) and B2B
(Business to Business) areas.

Image 12 Samsung: New Focus of R&D

One of the most important thing for an electronics company is the green management
responsibility. With the motto PlanetFirst and the vision Providing Green Experience,
Creating a Sustainable Future which is a special part of Vision 2020 Samsung takes this
importance very passionately. The concerns involvement with eco-friendly development and
investment in Green Management was recognised by many international organisations,
governments, NGOs through certifications and awards.

Mahmudur Rahman
mrahman3@uclan.ac.uk

10

Another important point is the social contribution of the firm. Samsung has been investing in
numerous CSR (Corporate Social Responsibility) projects. It should be noted that Samsung has
developed a Global Corporate Citizenships Program which has five programs in three different
areas (see the graph below). The company is administering the program very well and the
result is more than a success to show.

Image 13 Samsung: CSR Analysis

Every year Samsung published a detailed sustainability report (160 pages in the report from
2015) that shows how the company is growing and how they manage the business sustainable
and a special report about the green management.

Mahmudur Rahman
mrahman3@uclan.ac.uk

11

Summary and Conclusion

Summarising the above, undoubtedly Samsung Electronics is not only one of the biggest
company and largest manufacturer of smartphones and TVs, they have the potential to be
even larger, innovative and more successful. Nothing is easy, definitely not to deal with the
challenges which Samsung has and will get in the future. Nevertheless, to handle all threats
that may appear will be the main challenge for the concern and therefore the company has to
be prepared beforehand. Samsung has very strong customer value but they have to work
harder to get loyalty customers and find new markets to expand their company value.

Inspire the World, Create the Future!

This is the perfect philosophy of the Samsung Electronics. The company is inspiring people by
their innovative products and hardworking research and development for the future makes
their value unique. The Vision 2020 of Samsung shows how sustainable the company is. They
are making plans and developing strategies for the future and developing the working culture
in the company for the employees.

Business, Economy and Strategy Forecast

As already mentioned Samsung Electronics business strategies and economic situation is
stable. Still they need to develop new business strategies in specific product segment to
increase sales and make more profit out it. The analysis tools clearly shows that have been
created and one can easily say that there are a lot to focus on many aspects relating to
business strategies.
If we take the example of Samsungs opportunity to develop business in developing countries
more precise India it will be very clear to understand that the company has all needed
resources but they just need a good business strategy for this new business area.
As aforementioned, it is not easy to be the best. Nevertheless, high-quality products and
hardworking services are the key to success.
BK Yoon (President and CEO, Consumer Electronics, Samsung) said: The Internet of Things like
all technology has to measure to peoples needs and expectations. It must be centered on
humans and fit into their lifestyles. Now one can say that Samsung is working or should work
with their customers, they have to understand the need of them. Consumers are not only the
Kings, they are the key of success as well.

Mahmudur Rahman
mrahman3@uclan.ac.uk

12

References
Hwy-Chang, M.H. and Donghun, L.D. (2004) 'The Competitiveness of Multinational Firms: A
Case Study of Samsung Electronics and Sony', Journal of International and Area Studies, 11(1),
pp. 1-21.
Tassabehji, RT, 2003. Applying E-Commerce in Business. 1st ed. London: SAGE.
Chaffey, DC, 2011. E-Business and E-Commerce Management. 5th ed. Boston: Pearson
Education.
Laudon, K.L. and Traver, C.T. (2015) E-commerce 2015: business, technology, society, 11th
edn., Boston: Pearson Education.
Lawrence, E.L. (2003) Internet commerce: digital models for business, 3rd edn., Milton: WileyBlackwell.
Jones, T.J. and Lee, D.L. (2006) 'Samsung, Others Adopting Value Innovation', ResearchTechnology Management, 49(5), pp. .
Li, Feng. (2007) What is e-business?: how the internet transforms organisations, Malden, MA:
Blackwell Pub..
Park, N.K., Lee, J.L., Suh, J.S. and Kim, H.K. (2012) 'Changes in the Global Mobile Market and
New Challenges for Lg Mobile', Journal of the International Academy for Case Studies, 18(3),
pp. .
Seongjae, Y.S. (1998) 'The Growth Pattern of Samsung Electronics: A Strategy Perspective',
International Studies of Management & Organization, 28(4), pp. 57-72.
Shaw, M.S. (2002) E-Business Management : Integration of Web Technologies with Business
Models. Ebrary [Online]. Available at:
http://site.ebrary.com/lib/uclan/detail.action?adv.x=1&docID=10052677&f00=all&p00=ebusiness (Accessed: 7th November 2015).
Wikipedia (2015) Samsung Electronics, Available at:
https://en.wikipedia.org/wiki/Samsung_Electronics (Accessed: 20th October 2015).
Chen, L.C. (2015) The World's Largest Companies 2015, Available
http://www.forbes.com/sites/liyanchen/2015/05/06/the-worlds-largest-companies/
(Accessed: 24th October 2015).

at:

Chen, L.C. (2015) The World's Largest Tech Companies: Apple Beats Samsung, Microsoft,
Google, Available at: http://www.forbes.com/sites/liyanchen/2015/05/11/the-worldslargest-tech-companies-apple-beats-samsung-microsoft-google/ (Accessed: 24th October
2015).
Shaughnessy, H.S. (2013) What Makes Samsung Such An Innovative Company?, Available at:
http://www.forbes.com/sites/haydnshaughnessy/2013/03/07/why-is-samsung-such-aninnovative-company/ (Accessed: 12th November 2015).
Anders, R.A. (2015) Smartphones Are Important For Samsung, But Growth Is Elsewhere,
Available at: http://seekingalpha.com/article/3564076-smartphones-are-important-forsamsung-but-growth-is-elsewhere (Accessed: 12th November 2015).

Mahmudur Rahman
mrahman3@uclan.ac.uk

13

Samsung
(2015)
Sustainability
Reports,
Available
at:
http://www.samsung.com/us/aboutsamsung/sustainability/sustainabilityreports/ (Accessed:
18th November 2015).
Samsung Electronics | Growth Champions. 2015. Samsung Electronics | Growth Champions.
[ONLINE] Available at: http://growthchampions.org/growth-champions/samsung/. [Accessed
18 November 2015].
Samsung
(2015)
Samsung
History
Timeline,
Available
at:
http://www.samsung.com/us/aboutsamsung/our_company/history/timeline/index.html
(Accessed: 16th November 2015).
Samsung
(2015)
Awards
and
recognition,
Available
at:
http://www.samsung.com/us/aboutsamsung/sustainability/environment/communications/a
wardsandrecognition_2014.html (Accessed: 19th November 2015).
Wikipedia
(2015)
Customer
value
proposition,
Available
at:
https://en.wikipedia.org/wiki/Customer_value_proposition (Accessed: 26th November 2015).
Samsung
(2015)
Sustainability
Report
2015,
Available
at:
http://www.samsung.com/us/aboutsamsung/sustainability/sustainabilityreports/download/
2015/SAMSUNG_SUSTAINABILITY_REPORT_2015_ENG.pdf (Accessed: 27th November 2015).

Mahmudur Rahman
mrahman3@uclan.ac.uk

14

Table of Figures
Image 1 Samsung Timeline (Source: Samsung, 2015)................................................................ 2
Image 2 Best of Innovations and Eco-Design Awards at International Consumer Electronics
Show (CES) 2014 ......................................................................................................................... 3
Image 3 Global smartphone market share based on shipments; Source: statista .................... 4
Image 4 Worldwide smartphone shipments; Source: statista ................................................... 5
Image 5 LCD TV global market share; Source: statista............................................................... 6
Image 6 India to Become the Third Largest Smartphone Market by 2017; Source: statista ..... 6
Image 7 UK Retail Ecommerce Sales, 2014-2019; Source: eMarketer ...................................... 7
Image 8 The Value Proposition Canvas - Samsung Electronics .................................................. 8
Image 9 Samsung: Organizational Chart .................................................................................... 9
Image 10 Samsung: Products with No. 1 Market Share............................................................. 9
Image 11 Samsung: R&D and Patens Analysis ......................................................................... 10
Image 12 Samsung: New Focus of R&D ................................................................................... 10
Image 13 Samsung: CSR Analysis ............................................................................................. 11

Mahmudur Rahman
mrahman3@uclan.ac.uk

15

Appendix
In this part of the report there are all relevant business relevant analysis of Samsung
Electronics to justify the arguments.

5C Analysis
COMPANY
Samsung Electronics is the major subsidiary of Samsung Group.
It is the world's largest information technology company measured by revenues
Samsung is the largest LCD panels, TVs and smartphone manufacturer in the world
For more company information please see the SWOT Analysis

COMPETITORS
Samsung has a lot of competitors in the business market as it manufactures and sells a lot of
electronics solutions / devices.
The main competitor is Apple Inc. with its electronic devices e.g. iPhone, iPad
Strenghts of Apple are:
Customer loyality
Innovation
Design & quality
Other competitors are: Nokia, LG, Intel, Sony, HP, Toshiba, Huawei, HTC, Motorolla

CUSTOMERS
The main target group of Samsung Electronics is the youth. They are constantly tryign to develop
products that address the youth.
Other target groups are tech lovers and business people and all people from 14 to 50 years old.
Most of the sales occur in America and Europe.
Samsung has a big growth potential in Asia particularly in India, Bangladesh and all developing
countries around the world.

COLLABORATORS
Samsung has a lot of distributors all around the world therefore it is easy to get their products
almost everywhere, shopping mall, tech shops, etc.
Not only that Samsung has a lot of Samsung shops, mostly in demanded locations.
Other suppliers and support services are internal resources from the group.
There are some potential collaborators they can work with to improve the services:
Shipping companies for e-commerce business
Companies as partner for new markets like in India

CLIMATE
In the technologie industrie there are a lot of companies that manufactures almost the same
solution with less quality and value but trying to sell their products much cheaper than others in the
market.
At the time like the present the technical improvements happen much faster and new technologies
are introduced everyday.
But the current economic situation is not getting better therefore it is hard to offer solutions in a
moderate price.
One of the threat for the company could be new laws that go against the company.
More about the climate please see the PEST Analysis

Mahmudur Rahman
mrahman3@uclan.ac.uk

16

PEST Analysis

POLITICAL

ECONOMIC

SOCIAL

TECHNOLOGICAL

Mahmudur Rahman
mrahman3@uclan.ac.uk

In recent years Samsung confronted a few patent

lawsuits affairs in the smartphone market.
Samsung is the top merchant of Google Android
smartphones
The company protects their intellectual properties by
patenting as much as possible therefore it is easier to
claim other competitors ideas or solutions.
New laws against the company
Goverment involvement in agreements

Growth, inflation and interest rates

Job crisis
Material, employment cost
Private credit possibilities
New trent in the stock market
Global economic crisis

Target group's lifestyle and buying habits

Population growth rate
Average income rates
Point of view on product qualitly, value and customer
service
Social structures in the sales regions
Renewable energy perspectives
Immigration system

Investment on R&D
Technological enviroment (infrastructure, internet
connection, communication systems, etc.)
Laws relating to technology
Customer support level

17

Business Model Canvas

Mahmudur Rahman
mrahman3@uclan.ac.uk

18

SWOT Analysis
STRENGHTS

WEAKNESSSES

World's largest manufacturer (LCD panels, TVs,

mobile phones)
World's number one vendor of mobile phones
(21,4% market share, Apple: 13,9%)
Investment in R&D
Strong marketing capabilities
Good relationships with retailers
Key target group: youth
Manufactures everything by itself
Investments in innovations
Supports CSR (Corporate Social Responsibility)
projects
Localized product development

Consumers in markets with less growth potential

Chinese competitors are getting in the smartphone
market (e.g. Huawei, Xiaomi)
All smartphones use Google Android as operating
system
Brand loyality
Marketing strategies
Poor customer services
Complex corporate structure
Too many brands in the firm
Level of debt is very high (approx. $3 billion)

SWOT
OPPORTUNITIES

THREATS

Concentration in developing countries like India to

grow up the smartphone market
More focus on smartphone based solutions
New technologies like AI (Artificial Intelligence)
applications, wearable devices
More resources for e-commerce development
Change customer habbits and behaviour
Create own mobile network (world-wide)
Spreading demand for renewable energy

Big cooncerns as seroius competitors e.g. Apple

Not very popular in the USA
Cost of production is increasing
New or stricter laws relating to smartphones, data
storage or environment pollution
New or stricter laws agains the company
Employee turnover

Mahmudur Rahman
mrahman3@uclan.ac.uk

19

TOWS Analysis

Mahmudur Rahman
mrahman3@uclan.ac.uk

20

5 Forces Analysis
Competitive Rivalry

Threat of New Entry

As a well-established company
Samsung benefits a lot from their
market
position,
economic
situation and loyal customers. For
new entrants it is much difficult to
replace such a company and the
major barrier is the requirement
of a big capital investment

Supplier Power:
low

Threat of New
Entry:
medium

Competitive
Rivalry:
high

There are fierce competitors in the

business market. The major
business rival Apple makes the
competition harder to have the
best position in the market
constantly.

Buyer Power:
high

Supplier Power

Buyer Power

As Samsung is the market leader

suppliers have less space of
negotiation.
Nevertheless
Samsung has a weak point, Google
exercises a bargaining power
because of solely supply of
Android.

As the technology market is big

enough for customers they can
decide about brands and services.
Samsung customers can switch to
other competitors very easily.
There are some critical factors
like product development, price,
design,
functionalities
and
customer service that boost the
power of buyer.

Threat of Substitution

Threat of
Substitution:
high

There are many other similar

products in the market and
customers are getting motivated
to buy from companies that are
social
responsible
and
manufactures products in an ecofriendly way.

Mahmudur Rahman
mrahman3@uclan.ac.uk

21