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3.

SITUATION ANALYSIS

A) INTERNAL ENVIRONMENT

MARKETS

Samsung Company operates in the consumer electronics industry and consumer


appliances, markets, manufactures, and a variety of products that include TVs, Mobile Phones,
and Washing Machines among other things. The company is centered completely on the
consumer electronics sector and given its energetic edge the company has managed to gather the
utmost market share for itself. The rise of the company has been equivalent with the growth of
the so-called Asian Tigers (the countries of South East Asia). It has effectively influenced the
blooming global market for consumer electronics and has dealt with staying on top of the
competition.

COMPETITIVE ENVIRONMENT

Samsung company faces brand competition from firms that produce products that are
differentiated from their products.
Panasonic, one of Samsung competitors aims to be the first Green Innovation Company
in electronics before 2018. However, Samsung begin a price war with it leading to its reject in
sales for the first time. Also Panasonics has competitive brand in television market called Viera,
going 3350 dollars. Viera choose to use plasma, which is lesser to Samsungs LED backlight.
This puts the Panasonics price in questions.

Electronics Inc., Korean company classed second in the flat screen manufacture. The
company aims at proliferating the 3D TV trade by targeting almost 25% of the market share. This
revealed that 950000 television sales based on yearly envisage of 3.8 million units. LGs brand in
the 3D TV market is the 55 inch. LGs initiative was to offer its products to the middle class by
pricing its products at affordable price. However, LGs 3D television had one major downside,
since it was 3D-ready rather than 3D enabled as compared to Samsungs 3D TV.
ECONOMIC ENVIRONMENT

These factors involve the interchange resources and finance of the country. Economic
factors involved interest rates, economic development and growth, taxation dynamics, price rises
and foreign exchange rates. These factors can have a notable impact on the business operation of
a firm. Higher interest rates have a leaning of reducing borrowing capability since it is costs
more to borrow. Then again, price rises aggravate higher salaries by employees, which raise the
cost of function. These economic situations control the decisions of Samsung in any particular
country of operation. The company has predetermined suitable policies in the markets of
function basing on the economic power and size of the targeted consumers. Economic power and
size refers to the non-refundable income of consumers. The corporation employs a selective
targeted market policy since its products require a larger consumer non-refundable income. In
addition, it invests in countries where its goods are at a beginning stage. However this is not the
case within developed countries where its products are at rejected stage. This strategy of entering
a readily available market has proved to be valuable to Samsung Company.

SOCIAL AND CULTURAL ENVIRONMENT

The social environment consists of society, traditions and practices that differ from one
social group to another. Differences in the social status affect demand for a product and the
willingness of people to work. Ageing as a societal factor has the tendency of growing the
pension payments by firms since people are living longer, this is costly for the firms. The ageing
population also affects demand. This increases the demand for products for the aged. Samsung
has been successful to defeat the social challenges by incorporating itself in new markets. The
approach of think global and act local has efficiently connected the social and cultural gap
between its local country and foreign country. Yet still the company admits that it faces bribing to
be offered a business chance operation.

POLITICAL AND LEGAL ENVIRONMENT

Government guidelines including the intensity of economy interference, types of goods


and services that shareholder should offer to its people, governments funding, and priorities in
terms of business support. Samsung is subject to remarkable levels of political risks in its
countries of operation. Levels of political risks differ from one country, in which it is helpful in
some and not helpful in some. South Koreas political nature has presented a disturbing factor for
the company that now faces political insecurity at home country. The home countrys situation is
different and not concentrated when measured against other countries. Several countries where
Samsung is experiencing problematic business environment include Africa and south East Asia.
The business environment in these places is aggressive which has a negative impact on the
company. Whereas, China and India offer an useful business environment allowing to focus on
the markets in an appropriate way. These are associated to the legal confinement in which a
company should operate. Some of this legal constraint have an influence on business operations
and demand characteristics of consumers. The adoption of minimum wage rate policy by
governments can affect a firm, since it will have to raise wages increasing the cost of production.

TECHNOLOGICAL ENVIRONMENT

Inventions change products and their production processes. An instance of innovation is


the online market, bar coding, and computer aided designs, which are regarded as advancements.
The major benefit of technology is its ability to cut down production costs and improving quality.
Samsung is proud of its inventive advance to technology and improving it for manufacturing
products that deploys design technology and features. It is universally recognized that Samsung
is strong on technology. The driving force behind the companys vast ability and pride is its
ingrained culture of innovativeness. Moreover, it has pioneered major technological inventions
that it employed in introducing new products in global trade.

B) INTERNAL ENVIRONMENT

MARKETING MIX

Samsung provides a large range of products in the 3D technology trade, providing LCD,
plasma and LED 3D TVs. Presently the LED 9000 is the most profit-fetching product. High
quality 3D TV is 55 inch or 46 inch with LED backlight. It is ultra-thin, the thinnest TV with a
thickness of 31 inch. It comes with technologically advanced remote control with the capability
of streaming live television. Customers who have purchased the product should know that they
have bought the ultramodern and advanced TV available in the market. Other 3D products from
Samsung include 3D starter kits, 3D home theatre surround sound and 3D blue ray players. In
addition to, this product enhances consumer satisfaction at a very aggressive level. The pricing
ranges from 1200 to 7000 dollars therefore it caters for a wide range of clients.
Samsungs marketing mix incorporates promotion. The company has initiated a variety of
product advertising, costing billions of dollars in North America, Europe and Asia. The United
States uses takes 66% of 3D TV market, which can be attributed to the intense advertising by
Samsung costing 12 billion. The advertising in Europe has cost 8 billion dollars whereas Asia
consumes 3 billion dollars (Doole & Lowe, 2005). The mode of advertising involves using
celebrities, which have the capability of convincing potential buyers and in mega events to
enable consumers to experience the benefits of the 3D TV.
The advent of technology has made the company to resort to offering online services to
their customers. It provides shopping deals and free shipping costs. Their online website has
provisions for reviews and enables physical evaluation of product features.