Swot Analysis Of Samsung

Words: 1858
Pages: 8

I have selected “Samsung Electronics CO LTD” for the financial management analysis as one of the listed company on the international market. In my report, I will be emphasizing mainly on the below mentioned sections:
1. Basis of Report
2. Brief overview of the company
3. SWOT analysis
4. Statement of principle stakeholder group
5. Financial / Margin Ratios Analysis
6. Strategic issues faced by company
7. Conclusion of assessment

1. Basis of Report;
I have obtained data for 5 financial Years (December 31, 2011 to December 31, 2015). Source of information is the audited published financial statements. Ratios analysis, SWOT analysis, identification of strategic issues are based on the knowledge gained from Units 7 & 8 of the text book.
2. Brief
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Samsung Group enjoys a big market share across its 3 business divisions, below is the highlight of the main product from each of the 3 divisions:

3. SWOT analysis
Strategic issues faced by a company entails the analysis of its market position, any competitive advantage it may have and the threats to which it is exposed. Most fundamental analysis is to take a review of the company strength, weakness, opportunity and threats (SWOT) analysis. SWOT analysis allow a free ranging review of internal and external factors which determine the success of company’s business.
Based on the review of 5 Financial Years information, international market condition, and growth of economies across the international financial market, below is the detail analysis of “Samsung Electronic So. LTD:
• STRENGTH:
Innovation is crucial to succeeding in the technology sector. Usually, the more a business invests in Research & Development expenditure (R&D), the more innovations it creates. Samsung has spent US$14.1 billion on R&D in 2015, which was the 2nd largest amount spent in the world. R&D spending strongly correlates with a company’s revenue growth and expansion into the new product
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Currently, Samsung’s patents portfolio is one of the strongest in the technology industry.
Further, strengths of the company are as follows;
 Innovative design; Samsung offers a lot of handsets with different type of designs, unlike its nearest competitor Apple I Phone.
 Cost & Quality Focused; when it is about production cost, Samsung reach economies of scales. It outsourced its production to different countries that has competitive advantage in producing quality products at small cost.
 Environmental focus; it has been fulfilling responsibilities towards the environment. They provide energy efficient products. They ensure that chemicals used in products do not harm its users. Currently Samsung is operating the global recycling and take-back programs in 60 counties.

• WEAKNESSES
As an internal analysis, below are the some weaknesses which are minimal as against the internal strengths of the company;
 Low-profit margin; Samsung always keeps low profit market. There are a lot of competitor in this industry. So, keeping the customer they must offer products at low