Youth Inside

One Response to “swot analysis of samsung electronics?”

1. walterhawthorneiii
   April 2nd, 2008 at 11:32 pm

   

   Strengths:
   • China was a market where the first mover enjoyed advantages over late comers.
   • The first image of the product lasted long in the eyes of the consumer and the first to enter the market could gain the largest market share
   • SCH is committed to enhance its image to the Chinese market as investors
   • SCH was building a wholly owned manufacturing plant in China to show the
   Chinese the commitment Korea had to the Chinese society.
   • Labor costs in China were less and would defray the cost of producing high-end
   • Samsung has been making color TVs for many years in Korea before moving to
   the Chinese market.

   Weaknesses:
   • SCH must continue to control all costs to maintain success
   • China has a reputation of being a protected market (protectionism)
   • China was a market where the first mover enjoyed advantages over late comers,
   SCH is trying to overcome the first comer advantage Japan manufacturers have over them by being those first comers
   • Companies such as Sony and Matsushita had built sales and service networks that
   were favorable to their sales programs in China, while Samsung would have to
   catch up in that area
   • Samsung is not as experienced in manufacturing high-end TVs for a higher-end
   market segment

   Opportunities:
   • Based on the data that on 28% of the 220 million rural households own a color TV. SCH focus on the domestic China market should be to penetrate the rural household market, which would mean that for those purposes the low-end production of sets in the 13” to 20” range should be produced to appeal to that segment’s purchasing ability.
   • Larger more high-end models can be produced to appeal to an urban customer in China, as well as being an export to the U.S. and European higher end customers.
   • With success in the higher-end manufacturing and sales of premium TVs in China; SCH can establish themselves as high-end producers around the world

   Threats:
   • SCH faces intense competition in the color TV market
   • A premium-priced product wouldn’t sell in large volumes, so pricing can be a problem.
   • Since SCH didn’t have an established marketing strategy, issues of how to market the product may arise.
   • Loss of profitability because related to over-employment at most facilities
   • Is the per capita income level such that it can support sales of product at any level
   • If SCH fails to be successful in the Chinese market with high-end product it will
   be known around the world