SWOT AND TOWS ANALYSIS OF

SAMSUNG
INTRODUCTION:
Samsung Electronics Co., Ltd stands today as the world’s second-
largest technology company that produces electronic devices. It is a South
Korean conglomerate business. Samsung was also titled as the number one
in consumer electronics brand worldwide and is recognized for its
evolutionary advancements in digital technology.

The company is known to produce equipment that includes

telecommunications, electronics, home appliances, and semiconductors.

Initially being launched as an analog driven product line, it transitioned

into a universally acclaimed pioneer in technological innovation. The tech
industry is currently the world’s largest smartphone and mobile phone
manufacturer. Currently, it sells over a hundred products of different
varieties and models. Its operational branches are present in about 79
countries.

AN OVERVIEW OF SWOT ANALYSIS:

A SWOT analysis is an incredibly simple, yet powerful tool to help you
develop your business strategy, whether you’re building a start-up or
guiding an existing company.

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths and weaknesses are internal to your company—things that you

have some control over and can change. Examples include who is on your
team, your patents and intellectual property, and your location.

Opportunities and threats are external—things that are going on outside

your company, in the larger market. You can take advantage of
opportunities and protect against threats, but you can’t change them.
Examples include competitors, prices of raw materials, and customer
shopping trends.
 STRENGTH WEAKNESS

I. Dominates the I. Heavily dependent on

Smartphone Market  the American Markets 
II. Research and II. Decline in Smartphone
Development  Sales 
III. Award Winning Brand  III. Product Failures 
IV. Ecologically Friendly IV. Dependence on Low-
Innovations  end Smartphone 
V. Stronghold in the Asian
Markets  bhdfssg

OPPORTUNITY THREATS

I. Triple Protection I. Patent Infringement

Proposition  Controversies 
II. HR Management  II. Increased Competition
III. Diversification and III. Legal and
Acquisitions  Regulatory Threats 
IV. Introduce Innovative IV. Economic Uncertainty 
Products  V. Rise of Counterfeiting 
V. 5G Technology 
 SWOT ANALYSIS OF SAMSUNG
The following is the SWOT analysis of Samsung:

Samsung’s Strengths – Internal Strategic Factors

1. Dominates the Smartphone Market – Samsung has dominated the
Smartphone market for years. According to Gartner, in Q1 of 2020,
Samsung has maintained the No. 1 spot globally with an 18.5% market
share, where as Apple is at 13.7% market share.
2. Research and Development – The foundation of Samsung has
always been on Innovative research and development. Expenditure in these
departments resulted in the company having a wide range of product
portfolio among its competitors. These include tablet, camcorder, mobile
phone, camera, TV/video/audio, Memory Cards, PC, and other accessories.
They have 34 R&D (research and development) centres operating
worldwide. 
3. Award Winning Brand – Samsung’s position as a pioneer for
innovation is backed with credibility. Samsung has won many awards for
its offerings. Samsung has been awarded the CES (Consumer Electronics
Show) owing to its designs and products for 14 consecutive years. It went
on to receive 36 CES awards in 2018 along with 400 more awards within a
period of 14 years. It also secured 7 wins at the (IDEA) International Design
Excellence Awards.
4. Ecologically Friendly Innovations – Samsung has enhanced its
brand reputation through its environmentally friendly innovations. It
secured its ranking at 9th position in the Top 30 Tech and Telecom
companies of the EPA’s 2016 Green Power Partner list. It also received the
Environmental Protection Agency’s (EPA) annual ENERGY STAR Partner of
the Year Excellence Award for five consecutive years. Other companies do
not share this achievement and hence increases Samsung’s appeal across
all business lines.
5. Stronghold in the Asian Markets – Samsung retains a stronghold in
the Asian markets, particularly India and China. Both India’s and China’s
business markets are growing substantially which is why Samsung has
taken advantage of the opportunity and incentivize in these countries
accordingly.
 Samsung’s Weaknesses
1. Heavily dependent on the American Markets – It is estimated that
both Apple and Samsung sold at least 70.8% of smart phones in the USA.
While Samsung has diversified its resources and expanded its operations in
Asia, it is still heavily dependent on the American markets. The American
economy is very unpredictable and another recession could put Samsung’s
revenues in jeopardy and can damage its operational resources. That’s why
Samsung needs to involve itself into the Asian and European markets to
ensure sustainability and avoid potential failures if the US economy ever
collapses.
2. Decline in Smartphone Sales – Samsung has been experiencing a
decline in smart phone sales since 2017. A similar trend was seen in China
due to the price sensitivity of the Chinese market. They dump a lot of those
products in the Indian market at a lower cost which harms the Samsung
sales. Samsung has tried to shift more focus in India, but that strategy did
not produce substantial results for the company.
3. Product Failures – Any product that threatens the life of consumers
erodes confidence and trust in the company. Samsung has delivered several
faulty products to the market from the exploding Samsung Galaxy A20e to a
faulty foldable phone.
4. Dependence on Low-end Smartphone – A large portion of
Samsung revenues come from low-end smart phone sales. Recent events
have impacted this segment more than the high-end smart phone segment,
which played a role in Samsung’s decline from 71 million smart
phone sales and 19.1% of market share in Q1 2019 to 55 million smart
phones sold in Q1 2020 with 18.5% of market share (as per Gartner
Report).
5. Hereditary Leadership – Since its founding, Samsung has always
been under the leadership of the family for three generations. Even though
keeping the leadership within the family has offered Samsung immense
stability, the company can stagnate due to a lack of fresh ideas. After being
dogged by several scandals, Samsung heir Jay Lee has vowed to end
dynastic succession.  
6. Bribery Scandal – In 2015, Samsung’s reputation was tainted by the
revelation that the president of the company bribed the government of
South Korea to facilitate a merger. He was found guilty and jailed for about
one year until Feb. 2018, which eroded trust bestowed by consumers in
South Korea and the world over.
 Samsung’s Opportunities
1. Triple Protection Proposition – Samsung is preparing to launch its
new air conditioning product called the ‘Triple Protection Proposition’ that
incorporates cutting edge technology and impeccable construction. The
product is geared towards a target customer base that would ensure
maximum customer retention.
2. HR Management – Samsung can make impressive transformational
accomplishments if it invests in its HR management. Not only would it be
good for its sales but it will also give it competitive leverage over its rival.
The company can utilize its brand image and hire highly qualified and
skilled employees to improve employee performance and productivity.
3. Diversification and Acquisitions – It is critical that Samsung avoids
the mistake of being limited to just one marketplace. It not only invites
risks from an economic perspective, but it also attracts unwanted political
polarization and negative media publicity. That’s why there is a business
vacuum present in the Asian and European economies in which Samsung
can thrive. It needs to expand its customer base as well. It can only be
achieved through diversification and acquisitions of other businesses.
Samsung is a popular brand and can generate impressive revenues thanks
to its financial standing.
4. Introduce Innovative Products – The Smartphone sector is highly
dynamic, with the latest trends going out of style in an instant. Samsung
can attain immense growth by setting the trend with great and innovative
products like the foldable phone.
5. 5G Technology – As the world moves to 5G, Samsung has the
capacity and know-how to exploit this opportunity. The company is already
in active commercial discussions with operators in the EU to supply 5G and
6G network equipment. Samsung is one of the top companies in the UK’s
list of potential 5G providers.

Samsung’s Threats
1. Patent Infringement Controversies – Samsung has been involved
in controversies that have threatened its business. Its rival Apple filed a
lawsuit against Samsung for patent infringement which underwent a
heated court battle for seven long years until finally reaching
a settlement. However, the company suffered consequences when a
jury decided that Samsung had indeed copied Apple and was to pay $1.049
 billion in damages. This suit damaged the company’s reputation and its
sales.
2. Increased Competition – Competition from opponents especially
from those within the consumer electronics, Smartphone products, and
computing industries has reached a record high. Whether
it’s Xiaomi, Apple, or Huawei, all the technological competitors are
outmanoeuvring and outperforming each other to become the best
technology company. This only increases the pressure for Samsung in both
competition and finances.
3. Legal and Regulatory Threats – With the world becoming more
globalized and digitally oriented, governmental authorities have begun
issuing their guidelines which are increasing legal and regulatory threats to
companies around the globe. Samsung is no exception to these rules. Laws
differ from market to market, and these strict regulations cause a
hindrance in operations. Failure to comply could even result in a complete
shutdown in the respective market which may be fatal for Samsung.
4. Economic Uncertainty – Recent events have catalyzed uncertainty
in the global market and led to a decline in new smart phone sales
by 20.2% in Q1 of 2020. Financial struggles have forced many consumers
to seek recycled or refurbished phones, which has increased by 24%.
Samsung has already experienced a decline in sales, and it can drop further
if uncertainty persists.
5. Rise of Counterfeiting – According to numerous research studies,
Samsung is by far the most counterfeited phone brand. Statistics from
mobile benchmarking site An Tutu highlight that over 36% of all
counterfeit smart phones are Samsung copies. Also, Samsung Galaxy S7
Edge holds the record of the most counterfeited smart phone model.
6. Impending Court Cases – Any disruption in leadership can affect
performance. A South Korean court is debating whether to send Samsung’s
leader and heir Jay Lee back to jail. New allegations of stock-price
manipulation and audit-rule violations have dogged the executive and
threaten to throw the company into another tumultuous period without
leadership. 
TOWS ANALYSIS OF SAMSUNG
A TOWS analysis is a variant of a SWOT analysis and is an acronym for
Threats, Opportunities, Weaknesses and Strengths. 
Similar to a SWOT, a TOWS analysis will involve the identification of an
organisation’s strengths, weaknesses, opportunities and threats; however,
often a key criticism of a SWOT analysis is that it doesn’t show the
relationships between the different factors and categories. For example, a
particular threat might make a weakness much more significant. Whereas a
TOWS analysis will look to match internal factors to external factors to help
identify relevant strategic options that an organisation could pursue. It can
help an organisation to see how it can take advantage of opportunities,
reduce threats, overcome weaknesses and exploit any strength
Let’s delve into this a bit more.
A TOWS analysis enables an organisation to match its internal strengths,
and external opportunities (SO) to develop ‘maxi-maxi’ strategies – those
with the greatest potential for success. For example, strengths such as high
brand recognition or customer loyalty could be combined with the
opportunity to launch a new product or service.
At the other extreme, it highlights the organisation’s vulnerability to
threats based on its weaknesses and facilitates the development of
strategies that minimise these and avoid threats (WT) – ‘mini-mini’
strategies. For example, such strategies could include developing strategic
alliances or a more drastic strategy could be to withdraw from a specific
market altogether.
In between, mini-maxi (WO) and maxi-mini strategies (ST) are designed to
strengthen weaknesses, utilising opportunities, and minimise threats
utilising strengths. An example mini-maxi strategy (WO) is that an
organisation may have identified an opportunity to outsource some aspects
of its business operations, overcoming the weakness of lack of specific
skills within the organisation.
It’s important to remember that a TOWS analysis will not point to which
specific strategy to adopt, but it does focus attention the areas where action
is required, and given some indication of the nature of that action.
 STRENGTH WEAKNESS
I. Dominates the I. Heavily dependent
Smartphone Market  on the American
TOWS II. Research and Markets 
Development  II. Decline in
ANALYSIS OF III. Award Winning Brand  Smartphone Sales 
IV. Ecologically Friendly III. Product Failures 
SAMSUNG Innovations  IV. Dependence on
V. Stronghold in the Asian Low-end
Markets  Smartphone 

OPPORTUNITY SO Strategies WO Strategies

I. Triple Protection Increase Samsung and related Creating department
Proposition  product sales through online responsible for recalls
II. HR Management  advertisement. and product warranties
III. Diversification and to maximize customer’s
Acquisitions  Samsung offers product satisfaction.
IV. Introduce Innovative diversification; therefore, it Global expansion
Products  shall be able to fulfil the through Mexico,
V. 5G Technology  changing demands of the Portugal, France and
consumers as per their Australia.
livings.

THREAT ST Strategies WT Strategies

I. Patent Infringement As there is product Constant promotion of
Controversies  differentiation, Samsung as the brand will create
II. Increased Competition the opportunity to reach all stronger awareness and
III. Legal and kinds of consumers. demand for products.
Regulatory Threats 
IV. Economic Uncertainty  Should be updated with the Continue investment in
V. Rise of Counterfeiting  technology and digital technology in order to
innovations, in order to stay ahead of
overcome the rising competitors and become
completion. a market leader.
 CONCLUSION
Through the SWOT analysis of Samsung, it is clear that the company is still
a global leader in chip making and Smartphone brands. It has always
sustained sufficient revenue and profits as it progresses into the future.

The primary challenge it has to face is cutting back on its overreliance on

the American markets and explores the potential to operate in other
markets. It needs to focus mainly on the Asian continent that is developing
at an exceeding rate. Its limited customer base in the US is not reliable
enough and may lead to limited revenue and profits. That can become a
persistent issue for the company. They need to expand internationally and
incorporate a new consumer demographic to thrive.