Samsung Porter's Five Forces Analysis

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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…

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 happening. Due to all these point Samsung rates a “High” rating Conclusion As each point shows Samsung’s strengths and weaknesses, it is clear to see that Samsung is at a advantage because they already establish themselves in many different markets to date. However, each market is very unique and Samsung must not believe that there is a one size fits all strategy and instead must approach each market

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