PESTLE ANALYSIS FOR SAMSUNG BASED IN SOUTH KOREA
Government policy
South Korea has centralization of power. It also has political will for economic reforms and a strong foreign relationship. However, it faces challenges such as political violence and influence of military in politics ( Dudovskiy et al ., 2019) . It prospects to have a transparent system and to strengthen relations with the EU future risks.
Economic conditions in South Korea .
The country has powerful export sector, successful economic reforms, and low import level. It plans to develop competitive tax policy, liberalized service sector, and high per capita income. It also prospect to have corruption free environment and educated workforce.
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Socio-cultural factors in South Korea
South Korea has high wages, highly educated workforce, and rapid urbanization with low fertility rate. Future prospects include reducing unemployment rates, rising union power of labor, and rising awareness of the human rights.
Technology that matters which is not their product
The country has robust telecom sector with large domestic and global players. But it experiences shortage in natural resources resulting to high research and development costs. It prospects to create research and development promoting policies and improve production technology.
Environmental hindrances in South Korea
The country has strong intervention to protect the environment. However, it experiences soil erosion and limited natural resources. It will focus on environmental technology development.
Legal factors affecting electronic consumption in South Korea
South Korea has favorable tax policies. And regulatory incentives.
But they lack sufficient juries. They also suffer from insufficient customs operations. The country risks losing judges as they quit for private firms.
PESTLE ANALYSIS FOR SAMSUNG BASED IN THE UNITED STATES
Government Policies in the United States
USA has strong set up of democracy and the rule of law is effective. The country has massive political influence and is the leading super power in the world ( Dudovskiy et al ., 2019) . However, US experience sour foreign relations due to its interventionist policies concerning terrorism and war.
Economic conditions in the United States
Unpredictable growths of some economies of the United States, notably, Mexico, as well as the disorders in the currency of most states of the US affect the company ( Camillo et al., 2018) . Of great concern in the US market is the financial market in the major counties, which fluctuates hence, affecting the market stability.
Socio-cultural factors in the US.
USA faces an aging population problem and risks serious labor shortage besides rising tax rate the future. Its health care and education system ranks among the best, but racial intolerance is dominant. Furthermore US experiences high level of illegal immigrants.
Technological factors in the US
USA enjoys innovation and technology supremacy which make the cornerstone of its economy. It also excels in information technology despite facing intensive competition from developing counties like India and China.
Environmental factors in the US
The USA experience diverse climatic, geographic and wildlife conditions. However the country faces tough weather conditions in some of its states which results to massive financial damage and everyday life discomfort.
Legal factors affecting electronic consumption in the US
The legal environment compels every electronic company to face strict wireless communication laws, alongside the safety regulations of electronic devices.
Samsung competitors
Apple
iPhone of apple are undoubtedly the best competitors of Samsung when it comes to smartphones ( Bhasin , 2019) . It has the largest share of US smartphones and the second-highest shareholder of the global market. Is weakness is failure to explore other electronic appliances for domestic consumption.
Huawei
The substantial penetrative market price of Huawei products impresses consumers ( Bhasin , 2019) . There are strong speculations that it is a strong contender for global supremacy, but it does not manufacture other electronic devices for home consumption.
Xiaomi
Xiaomi has massive production and distribution power due to secure coverage of a vast population in Asia, mostly China and India. But Xiaomi has not ventured into other electronic devices like Samsung has.
Oppo
It has a properly executed strategy in branding during purchase. It is the fourth leading competitor of Samsung. However, it only produces smartphones but no other electronics
Vivo
It also has high manufacturing and disposal capacity due to the sizeable Chinese population ( Bhasin , 2019) . Its designs are as good as Oppos, but lacks the production power to manufacture beyond smartphones.
Lenovo
Lenovo beats Samsung when it comes to laptops. People love their products because of their simple design and high battery life, but their smartphones do not attract a majority of consumers as samsung’s.
Sony
Sony was the founder of the globally love Xperia series, which are waterproof smartphones ( Bhasin , 2019) . But has it not penetrated as much market like Samsung.
HTC
The M series from HTC is a premium smartphone with as many useful features as galaxy series only that it has lesser prices ( Bhasin , 2019) . It also has excellent branding and packaging strategies. But it does not produce other electronic devices for home conksumption.
Microsoft
It is a good competitor of Samsung but has no more full acceptance by the consumers due to its Windows 10 operating system ( Bhasin , 2019) . People prefer android and IOS to windows 10.
Google pixel
It is popular in the market, but not regularly available. Its demand surpasses the supply.
Nokia
Nokia has returned to the market currently with Android OS ( Bhasin , 2019) . Such a situation should be a threat to Samsung. But has low production capacity.
LG
LG enjoys massive strength in the market when it comes to televisions, refrigerators, washing machine, and other home appliances ( Bhasin , 2019) . But it is less effective in the smartphones sector.
Philips
It has functional consumer appliances such as personal care products but is less concerned about the smartphone industry ( Bhasin , 2019) . However, people adore their products globally.
Whirlpool
Whirlpool leads in washing machines market. It also produces durable consumer appliances, in which it poses a threat to Samsung ( Bhasin , 2019) . It has not ventured into smartphones.
Panasonic
It has a good grip on various products such as air conditioners, televisions, refrigerators among other home and kitchen appliances. It does not pose a threat to Samsung when it comes to smartphones.
Force analysis for Samsung
Bargaining power of suppliers
T he bargaining power of Samsung’s suppliers is very low due to their small size hence low financial strength except for google . Furthermore, Samsung is capable of switch ing from one supplier to another ( Dudovskiy et al ., 2019) . There are rules framed to regulate the mode of operation between Samsung and its suppliers to ensure sustainability .
Bargaining power of customers
I ndividual customers may have low bargaining power , but when joined together as a group plus the corporate buyers, the bargaining power is strong . The customers have full information and have many options, almost all products ( Dudovskiy et al ., 2019) . The properly established brand name of Samsung together with its continuous concentration on technological creativity also helps raise its brand bargaining power compared to that of buyers.
Threat of substitutes
Samsung experiences moderately high threats of substitute. It has several competitors, both local and international, which offer the same products and services it provides. Mighty brand image and innovations in technology besides customer convenience help Samsung to moderate threats of the substitutes.
Threat of new entrants
The threat of new entrants is low due to increased regulatory pressure which is a barrier for the new entrants trying to venture into electronics and technology.
Competitive rivalry between the existing players
There is an intense competitive rivalry between the players existing in the electronics and technology industry Dudovskiy et al . According to Dudovskiy et al ., the rivalry is due to the presence of many big brands such as LG, Apple, Sony among others competing for the same market space (2019).
References
Camillo, A. A., Holt, S. A., & Marques, J. A. (January 01, 201 8 ). Strategic Transcultural Marketing Management and Global Competitiveness.
Dudovskiy, J. (2019). Samsung Porter's Five Forces Analysis - Research-Methodology. Retrieved 26 September 2019, from https://research-methodology.net/samsung-porters-five-forces-analysis/
Jang, D., Kim, Y., Kim, T., Koh, K., Jeong, U., & Cho, J. (201 9 ). Force-assembled triboelectric nanogenerator with high-humidity-resistant electricity generation using hierarchical surface morphology. Nano Energy , 20 , 283-293. doi: 10.1016/j.nanoen.2015.12.021Bhasin, H. (2019). Top 21 Samsung Competitors - Competitor analysis of Samsung. Retrieved 24 September 2019, from https://www.marketing91.com/samsung-competitors
Suklev, B. G., Fidanoski, F. G., Simeonovski, K. G., Mateska, V. G., & Zlatanoska, A. G. (January 01, 2018). Strategic Planning in Entrepreneurial Companies.
