SWOT Analysis of Samsung – The 2nd Largest Tech Company Globally

Samsung SWOT Analysis

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Samsung SWOT Analysis
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SWOT Analysis of Samsung – The 2nd Largest Tech Company Globally

SWOT Analysis of Samsung



Samsung is the 2nd largest tech company globally, and it produces intelligent electronic devices. Samsung Electronics Co., Ltd is a prominent South Korean multinational company. It is famous for its innovative and evolutionary progress in the digital sector and is a renowned global brand in consumer electronics. It is also known for producing various equipment, including semiconductors, telecommunications, home appliances, and electronics. This universally acclaimed brand is a pioneer in the smartphones section. Currently, it is the biggest manufacturer of smartphones, tablets, and other tech products. It has fully functional branches in more than 70 countries, and they sell hundreds of products to different regions and countries. Let’s review on SWOT Analysis of Samsung.

Company: Samsung (Korean: 삼성)

Founded: March 1, 1938, in Daegu, Japanese Korea

Headquarter: 40th floor Samsung Electronics Building, 11, Seocho-daero 74-gil, Seocho District, Seoul, South Korea

Key People: Lee Jae-yong (Chairman)

Products: textile • aerospace industry • electronics • home appliance • semiconductor • information technology • smartphone • manufacturing • electronic system

Area Served: Worldwide

No. of Employees: 267,937 (Dec 2020)

Global Annual Revenue: around 237 trillion KRW (approximately 200 billion U.S. dollars) (2020)

Net Profit: around 26 trillion South Korean won, or 22.37 billion U.S. dollars. (2020)

Lee Byung-Chul is the founder of Samsung, who founded this company in 1938. It initially started its business as a trading company, but in the late 60s, it evolved as a leading electronics manufacturer. Let’s highlight Samsung’s strengths, weaknesses, opportunities, and threats.

Strengths of Samsung – SWOT Analysis of Samsung

Leading the Smart Phone Industry:

After reading the introduction, it is evident that Samsung has led the smartphone industry for years. The brand has maintained a No.1 spot internationally in 2020 with more than 18.5 percent market share. In comparison to Samsung, Apple was at 13.7 market share.


The foundation of a successful business depends on its research and development. The strength or success behind the company is its intense research and innovative product. Samsung has invested heavily in this sector. As a result, they gained maximum benefit in sales, carrying number ONE position and a strong product portfolio. That’s why they have a significant edge over competitors. Moreover, they have everything from smartphones to tablets, cameras, camcorders, PCs, memory cards, and TVs. According to Samsung, they have 34 fully operational research and development centers globally.

A Successful Brand:

Due to its highest sales, innovative product portfolio, and credibility, they have received various international awards. It has been winning the Consumer Electronics Show (CES) award for 14 years. They have won over 400 awards within fourteen years, including 7 IDEA (International Design Excellence Awards) awards.


Eco-friendly Innovations:

Samsung is also known for its eco-friendly innovations and advancements. Indeed, it is a big strength of Samsung as the number of eco-conscious people increases daily. Samsung was ranked at 9th place in the list of Tech companies for the EPA’s 2016 awards. It is a considerable achievement for the company and gives a competitive edge over competitors. These things attract consumers automatically and strengthen the business of Samsung.

Strong Position in the Asian Region:

In Asian markets, Samsung has a significant influence. Samsung has a stronghold from India to Pakistan, China, and other big Asian countries. These countries have a growing economy which creates a good impact on sales of Samsung. Moreover, the company uses an incentive strategy to retain its hold in several markets.

Weaknesses of Samsung – SWOT Analysis of Samsung

Dependence on the US Market:

According to a report, both Samsung and Apple sold more than 70 percent of their products in the US markets. While Samsung is trying to target Asian markets by expanding its operations and diversifying its product portfolio. A major portion of its revenue is generated from the US market. These days, the American market is unpredictable for several reasons, such as economic recession, aftereffects of Corona-19 and political instability. Due to this reason, Samsung’s market share or revenue is in jeopardy in the USA and other countries. Naturally, this might affect the operational resources of Samsung. So, Samsung must expand its operations in Asian markets to gain the company’s financial stability. Overdependence on the US market is such a significant weakness of Samsung.

A Decline in Sales:

Since 2017, Samsung has been facing a reduction in smartphone sales. They are also experiencing this issue in China because of the price sensitivity. This thing goes the same in Indian markets. Samsung needs to focus on other Asian countries to shift focus. This kind of weakness can bring failures for the company.

Failure of Product:

A faulty product is enough to erode the trust and confidence of customers. Samsung has introduced many defective smartphones to the market, such as Galaxy A20e that carries exploding faults. Moreover, the fault in folding smartphones is another weakness.


Reliance on Low-end Smartphone Users:

The primary consumers of Samsung are low-end users. Hence, they have considerable strength for the substantial revenue of Samsung. Recent events like economic instability, COVID-19, lockdown, and increased prices of products are affecting the buying power of low-end users. Thus, Samsung sold 19.1 percent of smartphones in 2019 and this ratio went down to 18.5 percent in 2020.

Heredity Influence:

From its start, Samsung has been under the influence of a family for three generations. It is a good thing in other ways, but it sometimes creates problems. Heredity influence brings a lack of innovative ideas and stagnates growth. After so many scandals, the family decided to end dynastic succession and thanks to Jay Lee for this initiative.


In the mid of 2015, the company’s repo was tainted by several bribery charges. The president of Samsung tried to bribe the government of South Korea, and it took place to facilitate a merger. Specifically, These things had damaged the company’s name worldwide.

Opportunities for Samsung – SWOT Analysis of Samsung

Triple Protection Proposition:

For example, the company is trying to unveil its latest air conditioning product known as Triple Protection Proposition. It unites impeccable construction and cutting-edge technology, and certainly, it helps the company to retain its customer base.

HR Administration:

By investing in its HR management, Samsung can achieve amazing transformational accomplishments. Ccertainly, it would be great for its products’ sales and help attain competitive leverage over competitors. Consequantly, they can hire professional and skilled workers, which will help enhance Samsung’s reputation. It also increases the productivity and performance of the company.

Acquisitions and Modifications:

It will be a big mistake for Samsung if it limits its presence to one region. Thus, it may bring so many risks and failures for the company. Despite this, they have an excellent chance to make new acquisitions and mergers to diversify their reach and product portfolio. Furthermore, they can target Asian markets with European markets to increase their reach. It will help to diversify its consumer base. However, it is only possible with successful acquisitions and continuous innovation. With the help of this thing, they can earn impressive revenues and enhance their financial standing in the market.

Produce Innovative Products:

The smartphone industry is competitive; therefore, the only way to get a competitive edge is by introducing innovative products. They can enhance their foldable phone technology to gain users’ interest, and they can set the trend with their amazing offerings.

5G Technology:

By exploiting 5G technology, Samsung can gain a competitive edge. Samsung is already working on this thing and planning to introduce 5G as well as 6G technology in some regions. In this way, they can make headlines with the help of this technology.


Threats to Samsung – SWOT Analysis of Samsung


Samsung has faced several lawsuits over its patent infringement controversies. One was Apple filed a lawsuit against Samsung, and the battle continued for more than seven years and resulted in the settlement. The company paid 1.049 billion dollars in terms of damages on the court’s instruction. Thus, it damaged the company’s image, revenue, and sales.

Rising Competition:

Competition from rivals in particular sectors such as smartphones, computing industries, and electronics is growing on a daily basis. It is hard for tech companies to manage their position in the market. There is no lack of competitors in the smartphone industry. From Apple to Huawei, Xiaomi, and so on, everyone is giving tough competition to Samsung in different regions in terms of sales and reach. These companies can damage Samsung’s revenue system and reputation globally, and they are a big threat to the company.

Strict Laws and Regulations:

As the whole world is becoming more digital and globalized; however, strict regulations from the government authorities can affect the sales and working of tech companies like Samsung. It is hard to follow the rules and regulations of each country to cause hindrance in the operation of Samsung. If Samsung does not follow these laws, they can face a ban or complete shutdown that they can afford in this situation.

Economic Ups and Downs:

The recent unpredictable events have created threats for companies working globally. The decline in the sales of smartphones due to increasing prices and recession is affecting the company badly. Moreover, Many companies are using refurbishing and recycling methods to generate smartphone bodies. The economic ups and down is creating a harmful impact on the performance and sales of Samsung.


The increasing counterfeiting of Samsung products is a significant threat for the company. According to a report, more than 35 percent of counterfeit Samsung phones are circulating in the market, and this ratio is enormous. Samsung should fight against these counterfeit products to retain its value and consumer base.

Court Cases:

Several controversies, lawsuits, and scandals have affected the image and reputation of Samsung. Jay Lee, who was Samsung’s heir, has been sent to jail due to bribery allegations. Moreover, the stock-price manipulation and dogging in other audits are one of the biggest threats for the company.

Conclusion – SWOT Analysis of Samsung

This SWOT analysis of Samsung shows that it is still a leading name in the global market. It is a prominent name in the smartphone and chip-making industry. Therefore, It is generating respectable revenue every year and gaining an edge through a progressive approach. They just need to focus on markets other than the USA for their survival. Asian markets can offer too much stability to Samsung in revenue. Hence, they can target customers demographically to attain more recognition.

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