1. SWOT Analysis:
Situation being analysed: How Samsung Electronics should react on this threat to the market
entry of Chinese competitors – with SMIC being the biggest of these new competitors.
Criteria: Strengths Weaknesses Criteria:
Advantages of Well diversified and Customer perception of Disadvantages of
proposition? differentiated product line to weak product attributes proposition?
Capabilities? meet changing customer like durability.
needs. Samsung electronics Gaps in capabilities?
Competitive advantages? has 4 business areas to cover Focus on mass market Lack of competitive
USP's (unique selling customer electronics needs. instead of niche market. strength?
points)?
Design with an attractive Increasing competition. Reputation, presence and
Resources, Assets, styling that interests the reach? Financials?
People? customer, as the result of the High investment on
Experience, knowledge, development of Samsung’s research and Effects on core activities,
data? new products that involve development. distraction?
team of product designers.
Marketing - reach, Morale, commitment,
distribution, awareness? Brand value through multiple leadership?
Innovative aspects? sponsorships. Accreditations, etc?
Location and Processes and systems,
geographical? High market share that etc?
continues to grow (Mobile
Price, value, quality? Phones and memory chip) and
Accreditations, LCD
qualifications,
certifications?
Processes, systems, IT,
communications?
Criteria Opportunities Threats Criteria
Market developments? Increasing on electronics Low cost Chinese Market demand?
Competitors' consumer market. producers eroding New technologies,
vulnerabilities? Strong customer demand for profitability. services, ideas?
Industry or lifestyle trends? innovative products & value New nanotechnology Vital contracts and
Technology development added features. may replace Samsung’s partners?
and innovation? High % of younger population, Drum technological
Global influences? which can a new market now advantages. Competitors statergy.
and in the future.
Sustaining internal
capabilities?