INTERNAL ENVIRONMENT ANALYSIS (MICRO ANALYSIS)

FOR SAMSUNG

What is the Microanalysis

Microanalysis may be defined as the scanning of the internal factors of an organization that may
affect the working of the company. A favorable Internal environment is an asset for the company
as it increases productivity and hence the growth opportunities for the company. Here are some
of the microeconomic factors that need to be taken into consideration
Innovation

Samsung believes in innovation and does the same with creativity and this is the reason Samsung
has always been in news and talks mostly for good reasons. As far as Samsung’s association with
Android is considered, it has been doing great till now, with the latest news that Samsung Galaxy
S4 is getting updates in the form of up-gradation from the jelly bean 4.3 platforms to the 4.4 kit
kat version which was earlier available with Nexus, which means that the users across the globe
would be able to update themselves with this latest version which will add on to the features of
the device hence increasing its overall value, so this is again innovation in alliance with the
android platform which will enable the users to get the innovative solution right in their phones.
Market Size
With the Android platform open to all major players and the number of smartphone users rising
exponentially over the last few years this market has shown considerable growth in terms of
volume or the number of users. The market size of particularly smartphones is getting very large
now, most of the users have now shifted onto this platform to get access to millions of
applications and features which this platform provides. Along with this perception, the market
demand in terms of quality and quantity is definitely going to rise in the coming years. So this
opens big doors of success for all the companies in the business.
Demand and supply
Samsung brand has undoubtedly performed very well in recent years and especially if we talk
about high-end smartphones Samsung has a major role it, There is a big demand for high-end
smartphones of Samsung and the same is being supplied in the market to balance the forces of
supply and demand. The company’s strategy is very well planned and better executed in which
before the demand for a particular model dies down, the company is up with the news of a new
version being launched with updated features and better performance.

Opportunity Cost
Samsung is a master when it comes to the analysis of the opportunity cost, which refers to the
loss of potential gain which one suffers while opting for the second-best choice available at the
moment. Samsung has been moving in a much-planned manner over the past years and is
working at the minimum opportunity cost and this is just due to accurate market scan and
research which helps the company in making relevant decisions. With almost a new launch
coming every month Samsung creates an excitement phase among the market for the new and
updated mobile phone just before the craze of the previous one gets faded out.