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SWOT Analysis: Samsung

Categories: Swot Analysis


Samsung , one of the multi-national south Korean Company was founded by Lee Byung-Chul in the year 1938 as a small trading company near to Taegu city. It was one of the most world largest production of electronic devices as it produced large variety of digital media devices, electronics, appliances, memory chips, integrated systems, semiconductors for consumer in South Korea.

Samsung had started their first electronics industry year with many various varieties of electronics divisions . One of the first product that produce was black-and-white televisions (Peter Bondarenko, 2019) in 1969.

In 1970s, new subsidiaries came along with Heavy Industries, Shipbuilding, Precision Company were established. Organization had begun to invest in petrochemical industries, heavy chemical, giving Samsung opportunity to grow.

SWOT Analysis

SWOT Analysis is famous that uses on audit, checking all kinds of strategic tactics for environment and business. The purpose is to find alternative to create a good business idea with best align for an organization’s capabilities, resource and requirements of environment which firm operates.

SWOT stand for Strengths, Weaknesses which belong to internal factors which organisations current practice Opportunities, Threats which belong to external factors that could affect the company growth and reputation which are unpredictable.

Samsung’s strengths

  • Comprehensive product portfolio
  • Geographical reach
  • Improved liquidity position
  • Improving financial position
  • Cost and quality focused
  • Recognized brand
  • Strong brand reputation
  • Strong r&d department

Samsung’s weaknesses

  • Exposure to equity financing
  • Legal proceedings
  • Overdependence on advertising
  • Low profit margin
  • Damaging image by infringement

Samsung’s opportunities

  • High demand in technologies
  • Launch of new products
  • Outlook for memory products
  • Strategic collaborations

Samsung’s threats

  • Large number of competitors
  • Foreign currency fluctuations
  • Rise in counterfeit products

Mobile computing

The organization focuses on manufacturing as well as marketing electronic product across world.

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More than 72 countries worldwide operate through a network of affiliates, subsidiaries. Product detail, geographical have reach the maximum strengths for organization.

Organization have tried to be associated with control of counterfeit products, competition between other companies, with strategic collaborations, launched of latest products, positive market outlook ensures with higher revenue (john dudoviskiy, 2017).

Rights approach

Rights approach are mainly focusing on respecting human dignity. Approach filled with dignity is based on their ability to choose freely how they lives and how they have a moral right to respect others choices as rational people, equally, free in the same way.

Organization respect human right, they do not practice unsustainable labour, circumstances, lower pay or hiring children as labour in regardless of race, gender, language or religious. They also strongly emphasize that they will not discriminate against any bosses, including customers as well as employees (2017, samsung).

Corporate social responsibility

The company’s sustainability management will create better a value. Not only create good market price by increasing profits, it will increase company reputation for taking for better responsibility as to create better social.

As they bring out a creative products and services based on their core values that set buu samsung, it helps to generate great values in terms of environment , economy and to the consumers. Organizations also monitor upon financial, non-financial impacts that brought into society throughout such process in order to maximize their positive impacts.

Key elements to a plan


Samsung had set a few goals in 2020. Firstly, with implementation of 5g network, this network will assist samsung to be generating $400 billion and also become top global enterprises which organization have set. Secondly, samsung has set a consideration of 10 years period to move further. Samsung has established three strategic approaches in management: “creativity,” “partnership,” “talent.”


The organization falls under tactical action plans, which they have divided to these division of labor through different departments in their organization. The organization also do budgeting on their electronics products to ensure the quality to help in company growth.


  • Organization using resources tangible like as below:
  • Financial – cash flow, capital (assets)
  • Organizational – 5 business building units
  • Physical – machinery=fab manufacturing
  • Technological – equipment=high capacity production line
  • Training – to upgrade the staff with new skills to deal with new technology
  • Organization using resources intangible like as below:
  • Human assets – recruit scholarship/ fresh guaduates
  • Brands – earned value of $12.6 billion (21st of the world)
  • Company – reward employee who are outstanding.culture – organization do not punish failure


Roles, responsibility of whole entire organization as well as its stake holders will be settled at it is approach. Both of leadership or top management plays an important role in implementing all kind of strategy. This primary ball bearer which are ongoing towards these strategy implementations was not implemented.

It would allow managers who would create these tactics would be used for strategy idea. It will lead to any miscommunication between superior and subordinates. These reason behind which change is the main thing for the organization. Middle management would be taking care role and responsibility to look out these changes and keep all worker to focus on the new goals and objectives (cavusgil. Et al. 2003).

Responsibility from the lower level worker will be able to make these changes of develop, services products which can back these changes. These workers are responsible to follow up with instruction to change and meets these objectives in a better manner.

Other stakeholders like suppliers, customers, distributors etc. Which they need extra convincing way in certain motivation from higher management. The organization could provide more and more facilities, profits to employees. Just to ensure they could remain firm towards this new strategy of organization.

Company culture

Organizational their culture has been well functioning that reflecting traditional south korea’s national culture. Positive aspects of a culture increasing levels of employee loyalty, fast in making decision. Negative side, seniority-oriented culture do not agree to junior employee for sharing their ideas to propose initiative to manager.

Ideas with initiatives will show how insightful, play an important role in creating new ideas or adding new features, function to upgrade existing products. Considering critical role of innovations, creativity in electronics industry, negative aspects of seniority-oriented corporate culture outweigh its positive aspects for samsung (jin-sik, s. ,2016).

Vertical dimension

Unity of command having strong organizational structure of management being accountable to have one authoritative leader. Work specialization, division of labor is based on fields of doing production in organization (Miles, 1978). It means a subordinate should have only one supervisor.

Structure of organization are centralized as low-level managers don’t have the power to make all kind of decision or not competent. Decision chain had filters from top most level seaming down to floor level management. These centralized structures play an important role as a decisive factor for organization.

These decisions are well related to company strategic objectives which lower the chances taking the risk of dealing wrong and bad decisions. Organization has a geographically dispersed structure in division of power, decision of making abilities on putting top management team or specifically the chairman. Organization ensure a constant spirit of dealing with all these stakeholders.

Limitation of ideas, which will decentralization with a superior feature of efficiency, judgements.

Span of control are numbers of employee working under a single manager. Chairman of the organization, span of control covered all the organization spread across globe. Structures of organization were large in degree of span of control. Organization consider a tall structure with Narrow organizational level based on their span of control.

Formalization are degree which mainly were taught by these cultures, laws, regulations, rules (Fredrickson, 1986). Degree of standardization are also known as formalization. This organization, employees at any levels of hierarchy were reminded that instruction give have to be strictly compliances , decisions made by top management without any challenges.

Motivation Theory

Motivation is a set of forces that directs, initiates which makes people feel motivated and willing to put more efforts to achieve a goal (Williams & McWilliams, 2010, P.255).

These were the total three set of motivation theories; one is McClelland’s Learned Needs Theory. Three motivators divide these theories itself. These three motivators are achievement, affiliation, power. Organization applies this theory to motivate their employees.

Traditional Leadership Theories

As head of organization for 25 years, which become a leading global leader. Chairman Lee Kun-hee had said one genius can feed millions of others, giving enough stress to bring out the creativity of employees.

Samsung founder Lee Byung-chull, had remind his employee to be open-minded and also take care of their families.

In 1980s, Samsung was too focusing on producing low quality goods and doesn’t prepared to compete in quality. Samsung was the listed of the worlds’ 10 most worthy of brands that select by Interbrand who the world’s consultancy leading brand management was. comparing with other industries, the world’s second-huge shipbuilder, Samsung Techwin and Samsung Engineering & Construction, Samsung C&T.

Lee Kun-hee had shown his ability in leadership of Samsung, allowing company to expedite and to be more determinant in order to deal with the market changes and find all kind of new opportunities than its Japanese rivals. Economists had mention and shown the view that Samsung should motivate and recognize employee efforts by rewarding them as incentives.

“Samsung’s hungry, can-do spirit also given to make a leading global technology company as employees have willingly dedicated their time and energy to its development,” said Korea University professor Chang Sea-jin.


Organization is trying their best to get new product which is Samsung Galaxy Fold into market what makes it even more important for organization to see these devices as a part of bridge to less- smartphone in the future. “Smartphone design has hit a limit, that’s why we design a folding phone,” said Kang Yun-Je head of organization design team.

Organization were focusing on other devices that are beginning to make a great impact on market like smart earphones, smartwatches. In next 5 years or so, people will not realize they are wearing screens. It will be seamless.


After gather all information which have confirmed that organization will continue to lead well. Organization brand is well known all over the world because of it is great service, great employees, creative reliable product. Responsible with approach to business as well as over the world citizenship, globalization with partners as well as customers.

Organization is taking over the world in improving direction for new generation smartphone and other electronics devices. Organizations comply with low and ethical standard care on environmental health and safety.

Maintain good culture values , customers service , shareholders, employees, socially responsible co-operative citizens. Organization are trying their best to be best brand in field of electronics products over the world by increasing its quality, size, and capacity of the devices.


  • Jin-sik, S. (2016) “Samsung’s Organizational Culture to Change like Google” The Kyunghyang Shinmun, Retrieved from: Dudoviskiy, 2017,
  • Research Methodology. Retrived from: Yon-se, The korea Jerald. Retrieved from: Snow, C.C Meyer, A.d, & Coleman, H. J. 1978,
  • Organizational strategy, structure, and process, Academy of management review, vol. 3, no. 3, PP. 546-562. Retrieved from: Management Study Guide. Retrieved from:
  • Peter Bondarenko, 2019. Retrieved from: 2019, MSPoweruser. Retrieved from: UKESSAYS, 2016. Retrieved from:2017, Samsung. Retrieved from: Samsung. Retrieved from:


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SWOT Analysis: Samsung. (2019, Nov 24). Retrieved from

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