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Evaluating Market Strategy and the Environment

Samsung Electronics

Joel Paulose Varghese

301301689

Centennial College

Principles Of Marketing (MKTG 116)

Thomas Patrick Brown

Due: Feb 12, 2023

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Evaluating Market Strategy and the Environment

1: Company Background
The company I have selected is Samsung. Samsung is a South Korean multinational
electronics company specializing in producing consumer electronics, home appliances,
semiconductors, and other related products. The company's mission is to help people enjoy
a better life and create a better world through technology.
Samsung has been able to establish itself as one of the leading technology companies
globally. It has created several notable products such as the Galaxy series of smartphones,
smartwatches, and home appliances like refrigerators, washing machines, and air
conditioners. The company has been praised for its innovation, design, and branding efforts,
which have helped it to establish a strong market position.
However, Samsung has also faced criticism for its product reliability, lack of consistency in
product quality, and for being too slow to adapt to the changing market demands.
Nevertheless, the company has taken steps to address these challenges and has been able to
maintain its position as a leader in the technology industry.
In addition, On its webpage, Samsung shared a brief statement that included the Fourth -
quarter 2022 forecast. The South Korean corporation stated in the press that it expects
revenues for the 4th quarter of 2022 to be around 70 trillion Korean won (USD 55.3 billion).
A 4.3 trillion Korean won ($3.4 billion) operational profit is another projection made by
Samsung.

2: Competitive Environment
a. Samsung's primary competitors are Apple and Huawei.
Direct Competitor: Apple also produces consumer electronics such as smartphones and
home appliances, which compete directly with Samsung's products.
Substitute competitor: Huawei offers similar products to Samsung, but with a different brand
image and market positioning.
New Entrants: Companies like Xiaomi and OnePlus have entered the smartphone market and
have emerged as major competitors for Samsung. These companies have introduced
innovative products at lower prices, making it difficult for Samsung to compete.
Suppliers: Samsung relies on suppliers for raw materials and components, and they could be
considered a potential threat. If suppliers increase their prices or limit the supply, it could
negatively impact Samsung's profit margins.
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Buyers: Samsung sells its products through various channels such as retail stores, online
marketplaces, and carrier partnerships. Retailers, for example, are motivated to pay the least
for the products they purchase from Samsung, which puts pressure on Samsung's pricing
strategy.
b. Samsung differentiates itself from its competitors through its focus on innovation and
technology. The company invests heavily in research and development, which has allowed it
to create cutting-edge products that offer superior features and performance. Samsung also
offers a wide range of products that cater to different market segments, providing
consumers with a wider choice of options.
The company's strong brand image, built on its reputation for innovation, reliability, and
quality, also helps it stand out from its competitors. Samsung also has a strong marketing
and advertising strategy that helps it to convince consumers that it is the right choice over its
competitors. Through its marketing efforts, Samsung can convey the value of its products
and the benefits they provide to consumers, which helps to differentiate it from its
competitors.
Samsung presented several ways it is expanding technology to meet a variety of customer
demands in addition to outlining the actions it is doing to promote daily sustainability.
Samsung works to create methods to help individuals rethink their connections with
commonplace technology because it recognizes that each person is unique and wants to
tailor their gadgets to fit their lifestyle. The company's "Together for tomorrow" goal is built
on a foundation of innovation that puts people first. The vision empowers everyone to
create positive change and drives collaborations that address some of the planet’s most
pressing challenges. The keynote illustrated how Samsung plans to make its vision a reality
by introducing a range of sustainability initiatives, purposeful partnerships, and customizable
and connected technologies.

3: SWOT Analysis

Internal Strengths Weaknesses

Strong brand image:
Samsung has a strong brand
image, which is built on its
reputation for innovation,
reliability, and quality. This
strong brand image helps
the company to
differentiate itself from its
competitors and to establish
a strong market position.
Product reliability: Samsung
has faced criticism for its
product reliability and
inconsistencies in product
quality. This has impacted
the company's reputation
and has made it more
difficult for the company to
compete effectively against
its rivals.

Wide range of products:
Samsung offers a wide
range of products that cater
to different segments of the
market, which provides
consumers with a wider
choice of options. This helps
the company to reach a
broader target market and
to capture a larger share of
the market.
Innovation and technology
focus: Samsung invests
heavily in research and
development, which has
allowed it to create cutting-
edge products that offer
superior features and
performance. This focus on
innovation and technology
helps the company to
maintain its position as a
leader in the technology
industry.
External Opportunities
Growing demand for
technology: The demand for
technology is growing
globally, which provides
Samsung with the
opportunity to expand its
market share and increase
its sales and revenue.
Emerging markets: Samsung
has the opportunity to
expand into emerging
markets, where there is a
growing middle class and a
growing demand for
consumer electronics and
home appliances.
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Slow to adapt to change:
Samsung has been criticized
for being too slow to adapt
to the changing market
demands. This has made it
difficult for the company to
remain competitive in a
rapidly changing industry.
Overreliance on a few
products: Samsung has
relied heavily on its
smartphone and home
appliance products, which
makes it vulnerable to
market changes and
economic fluctuations.
Threats
Intense competition:
Samsung faces intense
competition from other
technology companies such
as Apple and Huawei, which
makes it difficult for the
company to maintain its
market share and remain
competitive.
Rapidly changing
technology: The technology
industry is rapidly changing,
which makes it difficult for
Samsung to keep pace with
its competitors and
maintain its position as a
leader in the industry.

Partnership and
collaboration: Samsung has
the opportunity to partner
with other companies and
to collaborate on new
products and initiatives,
which would help to
strengthen its market
position and to increase its
competitiveness.
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Economic fluctuations:
Economic fluctuations can
impact the demand for
consumer electronics and
home appliances, which
could negatively affect
Samsung's sales and
revenue.
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References

1. Erskine, D. (2023, January 6). Samsung preannounces Q4 2022 earnings results of 55.3
Billion USD from the year-ago quarter. Shack news.
https://www.shacknews.com/article/133602/samsung-preannounces-q4-2022-earnings-
results-down-69-from-year-ago-quarter

2. Samsung Electronics Unveils ‘Together for Tomorrow’ Vision at CES 2022. (n.d.).
https://news.samsung.com/global/samsung-electronics-unveils-together-for-tomorrow-
vision-at-ces-2022