MGMT 303 Essay

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Samsung Electronics Co., Ltd. Swot Analysis
DeVry University

Samsung was founded in March 1, 1938 by Byung-Chull Lee, which was originally named Samsung Sanhoe. Samsung started off as an export trading company distributing dry goods to Beijing with 30, 0000 won. In 1969, Samung ventured into the electronic world and now it is one of the best electronics companies today. Samsung (2014) visions “Samsung is dedicated to developing innovative technologies and efficient processes that create new markets enrich people’s lives and continue to make Samsung a digital leader.” One of Samsung’s major strengths is focused on the environment and another Samsung has a wide range of products to select from. When Samsung is manufacturing products, they use LED technology to reduce less energy and to produce fewer waste. (EISA, 2014) states, “The S4 outperforms the competition through its limited use of precious metals and toxic materials.” S4 has low power consumption and it is positive to the environment which leads to less toxic in our environment and the battery can be removed from the phone. Samsung is so conscious about the environment, they have over 500 recycled locations within the 50 states where customers can drop off or send it in. As of 2013, Samsung’s recycling centers collected 101.9 million lbs.
Samsung has a wide range of electronic products which includes cell phones, televisions, tablets, wearable tech, blue ray, smart players, home theater, audio, digital cameras, camcorders, home appliances, computer monitors, laptops, printers, memory cards, security, monitoring systems, led lights and other accessories. With the range of electronic products, Samsung has the ability to attract the consumers in many different ways to purchase their products. Samsung is known for their designs, features and technology. Most products are energy efficient where less energy is used. According (Samsung, 2014) in 2014, Samsung received Energy Star Partner of the Year Award, which they were recognized for outstanding commitment to energy efficiency.

Samsung’s weaknesses are patent lawsuit with Apple and relatively low profit margin. With the patent lawsuit with Apple, Samsung products can banned for sale or delay due to the pending lawsuit. While there is a pending lawsuit, both parties can be losing time and money. Besides the damages, the company's reputation can be ruined. Investors and shareholders might back out due to the company’s reputations and trust. According to (Mick, 2013), “Apple has already banned numerous older Samsung devices from shipment into the U.S., in addition to the $1B USD in damages it secured from Samsung using infringement.” Since the profit margin is very low, this was not a good outcome for Samsung.
Samsung may have the largest technology business in the world in terms of revenue, but they have lower gross profit and net profit margins. Although, the smartphone business is somewhat profitable, Samsung is very aggressive with price cuts, which means the Samsung’s profit margin is low. By having the aggressive price cuts, this can hurt the company since the profit margin is too low and there is no real gain. Investors and shareholders would not be happy with the small increases and the growth might be there but very little return on investment. By lowering the price, Samsung can have a hard time competing with the other companies in the market when…