Samsung Company Analysis

Samsung, among the leading brands around the globe. It sells large range of electronic devices and innovation such as tv, computer and mobile phone. It accounted for more than 220,000 workers around the world with it headquartered in Seoul, South Korea (Datamonitor360). Byung-Chull Lee began his service from selling dried Korean fish with 30,000 won in 1938 under the name Samsung. According to the business record (2012 ), Samsung has properties value of more than 430,000 billion won recorded and net earnings over 20,000 billion won. With fierce competitors such as Apple, Sony and Nokia, Samsung should perform it finest to secure its future.

Even more in this essay will be concentrating on Samsung secrets advancement to its success and SWOT analysis of this company.

There are a variety of essential factors that drive Samsung to this phase. To start with, In 1969 Samsung-Sanyo Electronic devices was developed and Samsung's very first black and white TV was produced. This was a substantial modification to the company as TELEVISION was new to the market and its future profit was unpredictable.

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Later in 1972, Samsung attempt domestic production of black and white TV and it reached its 4 millionth TV in 1978. Second aspect is the diversification of its product throughout 1980s. Samsung manufacture numerous new home appliances such as air-conditions and microwaves. In the 1990s, Samsung claim to be 'copycat' in electronic market (Kotler and Armstrong, 2012).

Even with that claim, Samsung still make future to people life such as world's first 64Mb DRAM (Dynamic random gain access to memory) in 1992, worlds initially 128Mb flash memory in 1998 and worlds first 32 GB SSDs (Strong state drive) in 2006.

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Last element is its brand-new management style. Kotler and Armstrong (2012) state that Samsung quick growth due to Lee Byung-Chull's management. He utilized what the business call "Wow test" to inspect item quality before it reaches the real market. This is the factor behind Samsung success and expansion.

Looking at Samsung’s internal aspects there are number of features which can result in both positive (Strengths) and negative (Weaknesses) impact to the company. Firstly, Kotler and Armstrong (2012) reports that Samsung accounted for 25 percent of all corporate profit in South Korea. The statement can be support by Osborne’s report (2013) as she states that Samsung’s Galaxy S smartphone have gone over its sale expectation as 100 million units had been sold with in less than 3 years period; this can be clearly seen that Samsung customers are expanding rapidly and this will positively effect on company profit. BBC (2013) furthermore added that Samsung is now a market leader in smartphone industry with over 25 percent market share, while Nokia and Apple with 21.3 percent and 8.6 percent respectively; this shows that Samsung has a firm base of users in its market.

However, there are some negative factors that Samsung is not facing. Firstly, Lui (2012) reported that a long fight over copyright product and user interface between Samsung and Apple have come to an end with the court favoring over apple. This clearly shows the audiences that Samsung is a ‘copycat’. Moreover, Moore’s law (1970) states that processing speed double every two years; Samsung main market is technology base thus it needs to constantly catch up to be competitive. This can have a serious impact to the company if Samsung over or under predict the sale; this will lead to a great loss as those technology become obsolete quickly.

There are external event which can affect Samsung in various ways. First of all threat; BBC (2013) reports that Facebook and Apple has become partners as Facebook added free call feature to US iPhone users; this event may affect the sale of Galaxy S in US. If this partnership applies throughout the globe Samsung may face with a shocking statistic. Moreover, Ramesh (2013) states that Samsung is accuse of using child labor to manufacture its products. This issue has shown the end user that Samsung has less concern over human right issue. As social responsibility is vital for organization these days, Samsung may face with loss of brand loyalty. However, there are opportunities which must be consider. One of which is expansion in demand of Smart TV (Calcutt, 2012).

According to Harjani (2012) India’s young population has growth significantly. Additionally, Cost of tariff in India is decreasing swiftly; it can result in more mobile phone users. This will provide Samsung with a great opportunity for its future investment. Moreover, Samsung (2012) recently establish an incentive program to encourage the Indian to the London 2012 Olympic, the company act as main sponsor to Indian team that going to take part in the upcoming event. This act can secure Samsung relationship to this fast growing country. In addition, Kleinman (2013) further supports that cheaper smartphone market is growing rapidly and this is a good opportunity for Samsung to jump in supplying low-end product to this market.

In conclusion, it is clear that Samsung had been through many turning points. Its success was due to good management and unique product. Without those, Samsung would not achieve what it had been achieving. At this point, it is certain that Samsung future is promising and in good shape; this is due to its market share in many sector such as smartphone and smart TV. In addition, BBC (2013) reports that Galaxy S gain high profit to Samsung.

Population expansion in India also makes Samsung’s future seem encouraging. But it has to keep in mind that there are some aspects that can bring downfall to the company. Suggestion is that Samsung should get rid of the rumor about it manufacturing process with used child labor. Furthermore, it must change its product design to be real innovative and original in order to avoid other accuse the company as a ‘copycat’.


Spandas Lui (2012), Apple and Samsung dispute US$1 billion payout verdict [online] Available at: (accessed 19/01/13)

Ian Calcutt (2012), Smart TV Boosts On-Demand Viewing but Leaves Many Nonplussed [online] Available at: (accessed 19/01/13)

Charlie Osborne (2013), Samsung: We've sold 100 million Galaxy S smartphones
[online] Available at: (accessed 18/01/13)

Randeep Ramesh(2013), UN unveils plans to eliminate child labour by 2020 [online] Available at: (accessed 14/01/13)

BBC (2013), Samsung leads mobile phone shipments [online] Available at: (accessed 26/01/13)

BBC (2013), Facebook adds free calling feature for US iPhones [online] Available at: (accessed 17/01/13)

Charlie Osborne (2013), Samsung: We've sold 100 million Galaxy S smartphones [online] Available at: (accessed 18/01/13)

Gordon E. Moore (1970), Moore’s Law [online] Available at: (accessed 19/01/13)

Ansuya Harjani (2012), India’s Secret Weapon: Its Young Population [online] Available at: (accessed 25/01/13)

Zoe Kleinman (2012), Cheap smartphones global market grows [online] Available at: (accessed 17/01/13)

Samsung (N.D), Samsung business history [online] Available at: (accessed 17/01/13)

Updated: Jul 06, 2022
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Samsung Company Analysis essay
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