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Samsung Pest Analysis
BusinessManagementMarketingSWOT & PESTLE 

PEST Analysis of Samsung | Samsung PEST Analysis

by Shamsul

 

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

Conclusion:

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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Best Smartphone Brands
BusinessMarketingTop 10Trending

Top 10 Mobile Phone Brands in 2020

by Shamsul

 

Top 10 Mobile Phone Brands in 2020

 

In this digital era, tech companies are trying to take lead in profits and sales in order to expand their market share and revenue game. Today, we will talk about the top mobile phone brands in the world by evaluating different parameters such as income, sales, and shipments. They are a permanent part of our lives. The emergence of smartphones has revolutionized the world and mobile users with new technology. As we know that, the changing needs of consumers make these smartphones highly innovative and stylish. For the last 3 years, the sale of smartphones has dropped due to saturation and other factors. Apple, Samsung, Huawei, and other companies are leading the chart in this industry. They have a powerful market presence and effectively increasing their sales. Now, you have plenty of options to choose from. Let’s discuss the top 10 mobile phone brands in detail.

 

Samsung:

It is a South Korean company and headquartered in Samsung town. Samsung is currently dominating the smartphone market because they constantly improve their production capabilities by investing in Research and Development. They offer every kind of smartphone from lower to higher segment. They gained popularity from their Galaxy smartphone range. Its flagship smartphones are Galaxy Note 7 and Galaxy S7 edge+. Further, they recently launched Tizen OS as a substitute for its Android-related smartphones. The latest development of Samsung is Galaxy S9 and its audio quality is really high-quality because of the collaboration with Dolby and AKG. Samsung India is re-launching Galaxy S8 in magnificence burgundy red color which is a big achievement so far. Its current market share is almost 20 percent which makes it a top mobile phone brand in the smartphone industry.

  • Profit – 22,847 million dollars.
  • Sales – 188,980 million dollars.
  • Units shipped – 290 million.

 

Huawei:

Huawei was founded in 1987 and one of the largest smartphone manufacturers in China. In 2016, Huawei devoted 14 percent of their profits to Research and Development which’s why they have innovation stores across the world. They are operating in 170+ countries right now and also trying to build their own operating system. This thing shows the powerful market presence of Huawei in the smartphone industry. In 2017, Huawei shipped 153 million smartphones and also ranked in Fortune’s 500 companies list. They recently launched a sophisticated smartphone that contains an in-screen fingerprint, AI processor, triple camera, and Dual fingerprint design. It’s a big achievement for Huawei and this smartphone has put on shame other expensive and powerful smartphones. This kind of innovation and growth enables the company to stand out in the market. You can capture professional and high-quality images with their smartphone cameras. Due to the trade tension with the US and other global issues, they are going strong and manage 2nd position in this list.

  • Profit – 10,000 million dollars.
  • Sales – 122,000 million dollars.
  • Units shipped – 240 million.

Top 10 Mobile Phone Brands in 2020

 

Apple:

As the most preferred brand in the world, Apple successfully maintains a strong consumer base and market share in the mobile industry. Apple was established by Steve Jobs with Ronald Wayne in 1976. They are known for their luxurious smartphones and unique services. Due to their classy features and designs, they maintain a powerful customer base globally. They always focus on new technologies and designs to increase their market share. With 499 stores in 22 countries and a global presence in almost 40 countries, Apple is one of the most luxurious brands. Its total revenue in 2007 was 229 billion dollars. They offer smartphones with powerful cameras and other features. They are launching iPhone X Leather Folio that contains Face ID and a full-screen display. That’s why it is at 3rd position in this list.

  • Profit – 48,351 million dollars.
  • Sales – 229,234 million dollars.
  • Units shipped – 190 million.

 

Oppo:

This Chinese-based mobile company is one of the emerging brands globally. It was founded in 2011 and now they have a powerful global presence. They offer good-quality smartphones and accessories. They offer smartphones at every price point from the lower segment to the affluent class. Find 5, Find 7, N1, N3, and more are some best phones of Oppo. Even though they enter in this market lately, but they have managed a strong consumer base and presence. They create a respectable position with their good-quality products and aggressive marketing. In 2017, they officially sponsored the Indian Cricket Team which helps the brand to increase its sales and revenues. They also collaborate with various Bollywood celebrities to endorse their products. It is 4th on this list.

  • Profit – 1400 million dollars.
  • Sales – 60000 million dollars.
  • Units shipped – 120 million.

 

Vivo:

Vivo is a Chinese smartphone company and the largest producer of software, smartphones, and smartphone accessories. The company started its operations in 2009 and has a powerful footprint in the world with its offerings and smartphones. They recently developed Android-based software called ‘’Funtouch’’. In 2017, its market share is 10.7 percent. The X Series, V Series are one the most popular smartphones of Vivo. Their smartphones are really affordable and this is the major reason for the success of Vivo. Effective marketing strategies and celebrities endorsement help the company to expand its footprint globally. Its V9 Series is comparable to Apple’s iPhone X. It’s a big achievement for Vivo and it is the first company that contains a notch display after Apple. Its rank is 5th on this list.

  • Profit – 1125 million dollars.
  • Sales – 46,484 million dollars.
  • Units shipped – 110 million.

Top 10 Mobile Phone Brands in 2020

 

Xiaomi:

It is one of the fast-growing companies globally. They offer a diverse range of innovative products such as smartphones, apps, laptops, and accessories. It was established in 2010 by Lei Jun and launched its first phone in 2011. Since then, they have become the 8th biggest manufacturer of smartphones globally. Mi Series and Redmi are the flagship brands of Xiaomi. They invest in R&D and focus on innovation, that’s why they maintained a good position in the smartphone industry. Their effective marketing strategy in China and India enables them to attain a huge market share and sales. Currently, they are competing with top smartphone brands in the world. They also launched Mi MIX 2S in 2018. The company also launched MIUI 9 which has an in-built feature and highly innovative. They are operating in Brazil, Turkey, Singapore, and other Asian countries. In 2017, its smartphone shipments were 90 million. They are also called the Apple of China. It is 6th on the list of top 10 mobile phone brands in the world.

  • Profit – 1000 million dollars.
  • Sales – 17000 million dollars.
  • Units shipped – 125 million.

 

LG:

This South Korean Electronics brand was established in 1958 and has a strong market presence in the globe. LG Nexus, LG G Flex, LG Tribute, K-Series, and G-Series represent the company’s premium mobile range. Similarly, they offer a huge range of electronic items that makes them a highly attractive and powerful brand in the world. It is continuously growing and its total revenue was 57 billion dollars in 2017. They are also trying to launch K8 and K10 in different regions of the world such as the Middle East, Latin America, Europe, and Asia. These smartphones will offer better quality photography and noise reduction feature. They are also trying to offer their products at lower rates. LG V30 is one of the most advanced smartphones of LG so far. That’s why it is 7th on the list.

  • Profit – 110 million dollars.
  • Sales – 46800 billion dollars.
  • Units shipped – 55 million.

 

Lenovo:

This Chinese multinational company is one of the largest laptop manufacturers in the world. Plus, they also offer high-quality smartphones and smartphone accessories. It was established in 1984 but enter the mobile market in 2012. That’s why we considered it a late entrant but they have managed its position very effectively and build a strong market presence. It has a powerful global presence in more than 160 countries. P Series, Zuk Series, K Series, and A Series are some popular smartphones of Lenovo. They are investing in the high-tech sector and anticipated to launch a Tango handset that can be changed to speakers or video projectors.

This kind of offerings makes it a powerful worldwide mobile phone brand. Its phones are extremely user-friendly and also economical. In the Tango handset, they added some sensors that can track your motions and also map the interior of rooms and buildings. They are giving tough competition to competitors with the help of advanced technology and augmented reality.

  • Profit – 535 million dollars.
  • Sales – 43035 million dollars.
  • Units shipped – 40 million.

 

Top 10 Mobile Phone Brands in 2020

 

ZTE:

It is a prominent smartphone brand from China and also manufactures mobile and telecommunication equipment. We can say that it is a global leader in the manufacturing of tablets, smartphones, etc. They are operating in different parts of the world that’s why its market presence is very strong. Its distribution network and different offerings make it a highly innovative and leading company. ZTEsoft, Nubia Technology, and Zonergy are the subsidiaries of ZTE. With effective marketing strategies and a powerful presence, it is 9th on the list of top mobile phone brands. In 2017, they launched ZTE Axon M that is fully packed with innovative features.

  • Profit – 719 million dollars.
  • Sales – 17123 million dollars.
  • Units shipped – 45 million.

 

Alcatel-Lucent:

This French-based smartphone company was founded in 2004. It has a strong global presence and one of the finest smartphone companies. It was amalgamated with American company Lucent in 2006 that’s why it is known as Alcatel-Lucent. This merger has proved beneficial for both companies. It was attained by Nokia in 2006 but they carry the same name as Alcatel-Lucent.

This acquisition was made to give tough competition to Huawei and Sony Ericsson. OneTouch Series is the flagship product of Alcatel-Lucent. It has a global reach in more than 170 countries which shows that it is a strong player in this industry. Its loyal customer base and innovation offerings make them a first-class brand. Also, Pixi and Idol are luxurious brands of Alcatel-Lucent. They recently introduced A50, A30 Plus, Idol 5S that are extremely innovative. It is 10th on the list of the top 10 best mobile phone brands in the world.

  • Profit – 218 million dollars.
  • Sales – 15149 million dollars.
  • Units shipped – 20 million.

 

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