PEST Analysis of Samsung | Samsung PEST Analysis

by Shamsul
Samsung Pest Analysis
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PEST Analysis of Samsung | Samsung PEST Analysis


With the help of PEST analysis, you can learn the success, power, and influence of a company with the four macro-environment factors like political, economic, social, and technological. These factors give the complete knowledge about the company and today we are going to discuss the world’s leading electronics company ‘’Samsung’’. In this PEST analysis, we will discuss the political scandals of Samsung, consumer inclination, and technologies that Samsung can exploit to enhance its working. Let’s start this PEST analysis of Samsung:

PEST Analysis of Samsung | Samsung PEST Analysis

Political Factors:

Generally, Samsung is a big name in the electronics market. It is important for the company to follow post and pre-existing regulations from the government. Political stability is also an essential factor in which Samsung operates. Without political stability, its expenses increase and profits reduce. Moreover, political instability also limits the supply chain and availability of products in the outlets. This kind of political unrest is really devastating for companies and damages their financial growth. Samsung has benefited and suffered from the utilization of political unrest. Samsung is associated with two South Korean Political parties and faced huge blowback due to the close relation with the first female South Korean President. They also provided billions of Korean won to the ‘’Uri Party’’ for the period of the presidential campaign. On the other hand, they also provided billions of Korean won to the opposing party.

Due to this reason, the public of South Korea was not happy due to the inclusion of Samsung in the political system. Due to this blatant manipulation, the company’s image was tarnished in the eyes of consumers. This fuss results in the 5-year jail sentence of Jay Y. Lee who was Samsung’s heir. This kind of political involvement of Samsung damages the brand image in the eyes of customers internationally. This thing limits the sales of Samsung globally and they also face restriction problems in several countries. For example, after this fuss, Germany blocked the sales of Galaxy tablets in its country.

PEST Analysis of Samsung | Samsung PEST Analysis

Economic Factors:

The biggest secret of Samsung’s success is the strong position of the Korean won. The value of Korean currency was declined in 2014 which results in the decrease of profits of Samsung. But this is not a major reason for the profit loss. The slow growth of the electronics market is also a big reason for the decline. It takes a long time to manufacture new Samsung products which result in stagnant sales. Don’t forget that the smartphone market is highly dynamic and saturated. There are many big players in this industry like Google and Apple. There is no doubt that Samsung is a leader in smartphone manufacturing but it is really worth remembering that it is a double-edged sword. Due to its strong consumer base, the company enjoys the benefit of immense revenue but this thing clearly shows that Samsung is highly dependent on the sales of smartphones.

With continuous innovation, they retain their position and market value without any trouble. The recent economic recession has changed the purchasing power of customers which can threaten Samsung’s profits. The problem of low wages and unemployment are two major factors that can limit the sales of Samsung’s products. As most of the Samsung products are luxury, so they are not a necessity. Any kind of worldwide crisis can also cause some trouble for the company. Despite all the weaknesses, Samsung releases new products every year in order to fulfill the requirements of consumers.

PEST Analysis of Samsung | Samsung PEST Analysis

Social Factors:

Samsung is a South Korean company and its products are shipped all over the globe. It is imperative for Samsung to acclimatize and modify its products according to the local markets. In order to provide the best products and services to users, it is necessary to identify the needs of consumers. To be very honest, Samsung is still lagging in this sector. For example, Google phones got the newest Android update but it took more than six months in the case of the Samsung Android firmware update. It means Samsung is lacking in the innovation sector and this thing might upset the users. It is really surprising for us that some people don’t like the pre-built programs in the western world. Also, it features Bixby, the voice assistant. In order to remain competitive in the market, it is really crucial for Samsung to depend on the Google Voice Assistant instead of trying something new and different.

According to experts, sometimes innovation is not vital. People need some time to acclimatize with existing innovation or technology and they don’t accept immediate innovation. You can relate it with iPhone and iPads. Samsung sticks to the headphone jacks in their smartphones which was really appreciated by the users. These kinds of social factors give a competitive edge to Samsung and they are continuously growing in terms of reputation and profits.

PEST Analysis of Samsung | Samsung PEST Analysis

Technological Factors:

In the present world, technology plays an important role and it is a double-edged sword. In the case of Samsung, it is the biggest strength of Samsung. They offer ultimate innovation in their offerings including smartphones, tablets, televisions, and so on. The company introduces innovation in its products every couple of years which is a major strength of Samsung. The risk of manufacturing errors is also present in this type of innovation. Exploding phones is a major weakness of Samsung due to faulty batteries inside the Galaxy Note 7. It creates a bad impact on the manufacturing and quality of Samsung which results in the decrease of Samsung products. But, Samsung promises to learn from their mistakes and improve their quality. After this announcement, they started working on this exploding problem and successfully control this issue. The biggest strength of Samsung is its strong consumer base that still used its products. They can’t even think about any other product in the presence of Samsung. Most of the consumers are waiting for the new products eagerly.

PEST Analysis of Samsung | Samsung PEST Analysis


The involvement of Samsung in politics is proved unconstructive for the company. But, there is no doubt that it is a leading smartphone manufacturing company in the world. They faced a serious decline in their profits but they recovered from this issue due to their effective strategy. The reason behind this success is its instant adaptation. They understand the requirements of local markets and offered the desired products that fulfill their needs. Samsung is also very popular in the Western world and due to this reason, they decided to keep the headphone jack. We hope that you will learn too many things from this PEST analysis of Samsung. It is a fact that Samsung is a global player and its success is due to its strong and effective strategies.


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