Critical Analysis of Samsung USA

Critical Analysis of Samsung USA

Introduction

The vision of Samsung is to devote its human resources and technology to develop better products and services, therefore contributing to a better international society. Ever since it was founded in the year 1938, the company has kept a mission statement that is in response both changes of its own and to new creation around the world. The company has many slogans such as "Economic contribution to the nation", "Priority to human resources", "Pursuit of rationalism" which is depiction of its history. Each stage shows the various points of company's growth from being a local leader of industrial good to become one of the most renowned brands in the international market (Samsung, 2013).

In the 1990's the company went towards a change of its mission to put up with the rapid changes that were taking place all over the economy. There was tough competitions from growing, and established companies which required Samsung to change its approach to how it looked at things. The management philosophy of the company has been such that it believes that they have the strong will to be part of the progress of people around the people. The talent, creativity, and hard work of the employees is the key to the company's success of being able to provide customers with the most advanced products.

The Five Forces of Competition

The threat of potential new entrants is low as high capital is required to enter the electronics market. It is not easy to start up a company where the firms are already competing on cost and offering differentiated products. Nevertheless, with the standardization of parts finding vanilla solutions for a simple product can be probable.

The Threat of Substitutes is high

There are many companies that are making cell phones and tablets on the android platform which is the same as Samsung. Secondly electronic goods are easy to imitate and can be offered by domestic Chinese manufacturers at a lower cost.

The bargaining power of buyers if high

The buyers have many choice when it comes to buying electronic goods. Customers have choices with relation to whatever type of products they want to buy, and can be bought through different means like buying on contracts, websites and in store.

The bargaining power of suppliers is low

Most of the suppliers of Samsung are owned by the company by itself. Samsung also provides the supply to many reputed companies that creates a competitive advantage for it. However, in the industry the bargaining power of suppliers is high because the quality of the goods is vital to the buyers' success.

The intensity of competitive rivalry is high

The electronics industry is filled with many competitors and they seem to be in the balance. The market is growing, but innovation gets short lived as the other companies are quick to catch up with any new offering that Samsung has in the market (Kim & Mauborgne, 2004).

SWOT Analysis of Samsung

Strength

Samsung has a large variety of product range ...