Samsung Five Forces Summary

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Porter’s five forces are five different measures to determine how “vulnerable” a company is. They range from low to very high. The five topics are discussed below. Threat of new entrants Samsung has entered very easily into almost every market around the world due to its loyal customers and its distinctive and innovative products. This has helped Samsung to be listed at the forefront of companies. Samsung successfully entered into two major markets, China and India, this helped the company’s profile by allowing Samsung to expand there. Samsung’s economics of scale advantage means that they are the main producers of technological products such as DRAM and semiconductors that other companies are unable to match. As mentioned Samsung has a very…show more content…
Samsung uses small scale manufacturing plants; this is so that the companies have to rely on Samsung for their business. If they try to up there prices, Samsung is able to change plants easily due to having so many suppliers. If there is also a major disaster they have the suppliers spread out over a large area so that very little time would amount to get the plants up and running again. Due to all these point Samsung rates a “low”…show more content…
Many phones have the same specs and features, they are also all in high abundance with similar costs and are all highly competitive. This receives a “high Rating” However on the tablet side of the market Samsung still has a very large market share even with all the different “cheaper” tablets coming out. Samsung are still able to make tablets that are thinner and better spec’d and that have vastly superior features. This receives a “low rating” Another viable substitute would be “dumb-phone” which lacks almost all the functions of a modern mobile. They are generally made with phone calls, basic SMS/MMS and basic internet and games. Samsung no longer has any phones in this market so this could be a “high” risk area due to the phones costing very little and most of the time are free on contracts. Overall Samsung receives a “medium” rating for these points Industry Rivalry This has a huge impact on Samsung because of strong competitors like LG, Apple, Microsoft, Google and others. With so much competition between the companies and due to the slowdown of the smartphone industry, companies are trying to “steal” other customers from other rival manufactures. This is a very high risk due to the fast adaption of new technologies and because of the extremely high level of competition
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