SWOT Analysis For Samsung | In Depth Discussion

Samsung is one of the biggest and most successful technology companies in the world. But even the biggest companies can make mistakes, and Samsung has had its share of missteps in recent years. In this article, we will do a SWOT analysis of Samsung, looking at its strengths, weaknesses, opportunities, and threats.

We will also discuss how Samsung can overcome its weaknesses and capitalize on its opportunities.

Here is a takeaway summary table:

Topic Key Points
Samsung’s Strengths
  • Large market share in smartphones
  • Heavy investment in R&D
  • Award-winning and innovative company
  • Eco-friendly brand image
  • Strong presence in Asian markets
  • Top global chip vendor
Samsung’s Weaknesses
  • Reliance on third-party operating systems
  • Damaged reputation from product safety issues
Samsung’s Opportunities
  • New “Triple Defense” AC line
  • Improved HR management
  • Acquisitions and diversification
  • Cutting-edge and innovative products
  • Leadership in 5G and 6G networks
Samsung’s Threats
  • Patent infringement controversies
  • Increasing competition
  • Legal and regulatory risks
  • Financial uncertainty
  • Rising counterfeit products


An Overview of Samsung

Today, Samsung Electronics Co., Ltd. is the second-largest firm among those that manufacture electronic gadgets. Samsung is a South Korean multinational corporation which was also ranked as the top electronic goods brand in the world. The company is renowned for its innovations in digital technology.

The firm is well-known for manufacturing telecommunications, electrical, and domestic appliances, among many other products.

The firm was initially introduced as an analogue-driven product line. However, it evolved into an industry-leading innovator in technical advancement. The technology sector is now the biggest smartphone and cell phone maker in the world. Today, it offers over a hundred distinct types and models of different items. It has functioning branches in around 79 countries in the world.

In 1938, Lee Byung-Chul established the Samsung company. It began as a trade firm in the late 1960s before it eventually transformed into an electronics manufacturing company. It employs over 267,937 people as of December 2021.
Since March 2018, the current CEOs of Samsung have been Kim Ki Nam, Koh Dong Jin, and Kim Hyun Suk.


Samsung SWOT Analysis

SWOT Analysis For Samsung

Strengths of Samsung: Internal Strategic Factors

Large Market Share

For years, Samsung has controlled the smartphone industry. Gartner’s 2021 study indicates that Samsung has retained the No. 1 position with a 19 percent market share in sales of smartphones. However, Apple is in second place with a 16.7 percent market share, and Xiaomi is in third place with a 13.2 percent market share.

Research and Development

Samsung’s development has always been based on creative and innovative research to bring out development. Due to the corporation’s investment in these divisions, it has a more diverse product range when compared to its rivals. These gadgets include laptops, cameras, camcorders, tablets, TV/video/audio, mobile phones, memory cards, PCs, and many more. They have 16 overseas R&D facilities and 7 AI centres throughout the globe in order to secure breakthrough technologies and increase global R&D capabilities.

Award-Winning Company

Samsung’s status as an innovator and pioneer is supported by credibility. Many accolades have been given to Samsung for its unique and excellent products. Samsung has been the winner of the CES (Consumer Electronics Show) for several years due to its innovative product designs. In 2022, it was awarded 43 CES honours. In addition, it won 48 accolades at the International Design Excellence Awards (IDEA).

Ecologically Friendly Innovations

Samsung’s company’s reputation has been strengthened by its ecologically responsible products. It won the eighth position in the Environmental Protection Agency’s (EPA) In addition, it got a prestigious ENERGY STAR® Corporate Commitment Award the same year. Since 2009, the efficiency of Samsung’s products has prevented roughly 270 million metric tons of CO2 emissions globally. This is something that only Samsung has done, so it makes the company more appealing in all of its business units.

Firm Foothold in Asian Markets

Samsung maintains a dominant position in the Asian market, especially in China and India. The marketplaces of both rising economies, India and China, are increasing rapidly, so Samsung has exploited the opportunity and received incentives in both nations.

Samsung overtakes Intel as the greatest chip seller

In 2021, Samsung was recognized as the world’s top chip vendor with a 12.3 percent of sales in semiconductors by sales. As a result of its rapid growth, it surpassed Intel (market share of 12.2 percent). Based on research conducted by Gartner, Samsung’s sales will increase by 28 percent annually in 2021, reaching $73 billion. As a result of the pandemic, there was a huge increase in the demand for chips in smartphones, PCs, and other electronic devices.


As giant as Samsung is in technological advancement, it’s interesting to know that the company is relying on third-party operating systems (OS), most notably Android, which is controlled by Google.

The lack of Samsung’s own operating system and software has a detrimental impact on user loyalty, and the firm loses an opportunity to increase its sales volume. Samsung needs to fix this problem as soon as possible or within a short time.
The reputation of the Samsung brand has taken a big hit because of a number of worries about the safety of its products.

The business received 92 complaints about Note 7 batteries based on overheating in the United States. This also includes 26 incidents of burns and another 55 complaints of damaged property because of the explosion of the smartphone.
Samsung stopped making smartphones with the Galaxy Note 7 model because of these problems.

In addition, the global electronics corporation had to recall 144,000 Samsung washing machines because they were flammable. However, similar instances have occurred in the past, including the return of 210,000 freezers in South Korea in 2009 and 184,000 microwave ovens in the U.S. in 2003. If these incidents keep occurring like this, it can damage the reputation of the brand.

Samsung’s Opportunities

Triple Defense Formula

Samsung is set to debut its ‘Triple Protection Proposition’ air conditioner, which combines cutting-edge tech and flawless design. The product is designed for a certain consumer demographic to guarantee optimum customer retention.

HR Management

If Samsung invests in its HR management, it may achieve remarkable transformative results. It would not only increase sales, but it would also provide the company with a competitive advantage over its opponents. The company may be able to get its employees to work harder and be more productive by using its brand image and hiring qualified and skilled people.

Acquisitions and Diversification

It is crucial that Samsung resist the error of limiting itself to a single market. Because of this, there is a gap in the Asian and European markets where Samsung can establish and expand its products. This will enable the company to increase its customer base. It can only be accomplished through corporate diversification and acquisitions.

Present Cutting-Edge Products

The smartphone industry is extremely dynamic, with the most recent trends becoming obsolete in an instant. Samsung may achieve tremendous development by establishing new trends with creative goods such as foldable phone and the like.

Technology 5G

As the world transforms to 5G, Samsung has the resources and expertise to capitalize on this opportunity. The company is already engaged in active negotiations with EU operators to deliver 5G and 6G networking devices. Samsung is one of the leading prospective 5G suppliers in the United Kingdom.


Patent Infringement Controversies

Samsung’s industry has been jeopardized by its involvement in some issues. Apple, a competitor of Samsung, sued Samsung for patent infringement. This started a seven-year legal battle that ended with a settlement.

However, the corporation was forced to pay $1.04 billion in penalties when a jury concluded that Samsung had actually imitated Apple. This lawsuit negatively affected the company’s image and sales.

Increasing Rivalry

The competitiveness of rivals, particularly electronics manufacturers such as smartphones, laptops, and computers, is now growing with different innovations and technology. All of the technical competitors to Samsung are Xiaomi, Apple, and Huawei. These mentioned competitors are all vying to maintain top market share.

Legal and Regulatory Dangers

As the world becomes more globalized and technologically oriented, government agencies have begun drafting their own regulations, which are raising the legal and regulatory risks for businesses worldwide. Samsung does not deviate from these guidelines.

Different markets have different laws, and these strict requirements hinder business operations. Non-compliance with the rules might result in a total market closure, which could prove deadly for Samsung.

Financial Uncertainty

Recent developments have compounded market uncertainty and led to a drop in sales of new smartphones. As a result of the economic downturn, the number of consumers looking for recycled or reconditioned phones has increased by 24%. Samsung’s sales have already declined, and additional declines are possible if uncertainty remains.

Increasing Counterfeiting

Multiple research investigations indicate that Samsung is by far the most falsified phone brand. According to AnTuTu statistics, more than 36% of counterfeit cell phones are Samsung knockoffs. Also, the Samsung Galaxy S7 Edge is by far the phone version that has been copied the most.


What is Samsung SWOT analysis?

This Samsung SWOT analysis illustrates how well the second-largest tech giant leveraged its competitive edge by becoming a market leader in the market electronics, household appliances, and electronic components. It recognises the company’s most significant strengths, weaknesses, opportunities, and threats.

What makes Samsung different from its competitors?

Samsung is not just a smartphone manufacturer. As the largest chip manufacturer in the world, it combines the functions of a conglomerate and a manufacturer. It manufactures many of the modules used in its smartphones, giving it a competitive edge and enabling it to be more flexible in terms of what and how it produces.

What makes Samsung sustainable?

Samsung claims in its 2021 report that it has already accomplished a great deal in the environmental field, including reducing its plastic usage by 20% through packaging redesign, incorporating energy-saving features into its products, accumulating nearly 5 million tons of e-waste, and making sure that 95% of its manufacturing waste is recycled.


Final Thought

The Samsung SWOT analysis revealed that its strengths outweigh its weaknesses. In addition, they face both market opportunities and threats. Samsung mobile will be a stronger organization in the future if it takes steps to become more competitive on the market by providing superior products.

The References Used For This Research

  • https://news.samsung.com/global/samsung-acquires-rich-communications-services-business-from-skyview-capitals-newnet-communication-technologies
  • Samsung Sustainability Report (2016)
  • Suk-yee, J. (2017) “Samsung’s Brand Value Ranks 6th in the World” Business Korea, Available at: http://www.businesskorea.co.kr/english/news/industry/17184-brand-value-samsung%E2%80%99s-brand-value-ranks-6th-world
  • http://www.samsung.com/us/aboutsamsung/sustainability/environment/
  • Samsung Sustainability Report (2016) Samsung Electronics

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