SWOT Analysis: 

 Strengths: 
1. Diverse Product Portfolio: The products and brand portfolio of
Samsung are enabling it to target various segments in the domestic
market at the same time. This has helped Samsung to build diverse
revenue sources.
2. High market share: Samsung was in a very strong position relative to
many of its peers. It has the highest market share in the market
segment. It sold more smartphones than any other company worldwide.
3. Investement in R&D : Samsung is investing in innovative products.
 Weaknesses:
1. Low-profit margin: Low profitability can block new project investment:
in terms of profitability, although Samsung dominates market share and
sales are far more than Apple, its profit is far less than that of Apple. It
is critically important for Samsung to address this weakness in a short
or medium-term perspective.
2. Declining market share: Samsung’s market share is declining every
year (from 32.2% in 2012 to 21.4% in 2015). (from exhibit 2)
3. Communication : they couldn’t succeed at communicating their spacial
Android features making their products look similar to other Android
base handsets.
4. Fierce competition : Apple is dominating the high-end market, for the
mid and low-end market, Xiaomi and Huawei in the Asia-Pacific region
also occupy a large market share. Not only Xiaomi and Huawei but also
more than 1000 other players are eating from Samsung’s market share.
5. Absence of its own OS : Samsung uses the Google Android open
source OS in its devices
 Opportunities:
1. Growing market size: smartphone usage is increasing, smartphone
industries are seeing immense growth in the market (i.e., 3.4 billion
(2014) to 6.4 billion (2021)) --> Market potential: Future potential
customers.
2. The possibility of creating their own OS :
3. Further increasing investment in R&D :
4. Entering into strategic collaboration with local third-parties in the
Asia Pacific region :
 Threats :
1. Failure in having a clear brand positioning: Samsung has many
smartphone models and a narrow product range. They don’t have a
clear position in consumers’ minds. They position themselves as high-
end, mid-end, and low-end all at the same time.
2. Emergence and growth of Chinese players like Xiaomi and
Huawei: Chinese manufacturers like Huawei and Xiaomi have the
potential to emerge as Samsung's serious competitors. While these
companies' share of the smartphone market is increasing, Samsung's
share is declining.
3. Growing switching rate:
4. Deficiency of apparent differentiation: Samsung’s smartphones are
suffering from a deficiency of apparent differentiation from other
Android-based handsets like Xiaomi and Huawei.