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Samsung Company Analysis


Samsung is a South Korean multinational organization headquartered in Samsung Town, South Korea. The business comprises several affiliated companies but is mainly known for its participation in the conglomerate business. Samsung’s environment is primarily urban, consisting of business ventures in diversified fields like textiles, insurance, retail, and securities. The company’s products are also mainly sold in urban centers (Omer, 2019). Its main products are aimed to provide digital services to their global clients.

In most cases, their products assist people in different parts of the world adopt better lives. Samsung’s mission statement is reflected in devoting its human resources and technology to creating superior services and products, contributing to an improved global society. The company’s mission statement also emphasizes the superiority of its products and how they transform the lives of its clients. Also, Samsung’s vision statement is to inspire the world using its innovative products, designs, and technologies, enriching people’s lives and contributing to improved corporate social responsibility.

Like other companies, Samsung’s corporate organizational workforce consists of employees and various systems that govern their operations. The company currently employs over 370,000 employees, contributing to its global reputation. Samsung is also committed to helping and building the careers of its employees by providing various essential services. At all their worksites, the employees, including contract workers, are well remunerated above the wage levels set by contract laws. Samsung’s employees are also provided with several benefits and leaves as they are believed to drive the organization’s success. With various programs like the Samsung Semiconductor, employees In the organization are assured of their health. Samsung also puts increased efforts to protect its employees from exploitation and other opposing challenges during their stay in the company.

As an innovative company, Samsung mainly operates devices associated with technology. The business also has several virtual machines and equipment to manufacture its products. Some of Samsung’s critical technological devices and gadgets to increase their competitive advantages include computers, where they store important data and information. Besides, Samsung also uses technologically advanced equipment like alarm devices in various areas (Lee et al., 2019). There are also devices used for internet connection like wi-fi and other gadgets in the company.

Samsung also operates in a global market where the regulatory environment specifies what to be done and what must not be done. Samsung observes these guidelines and adheres to the critical regulations required to help ensure smooth business. Besides physical plant regulations, Samsung must also adhere to health, payment, and reimbursements. Some of the key bodies in Samsung’s regulatory environment include the World Health Organization, which specifies the health regulations, the United States Department of Labor which relates to the rules associated with occupational health and safety, physical plant, and labor. Other similar organizations In different parts of the world are also associated with such regulatory activities in Samsung’s environment.

Some of the main stakeholders in Samsung’s business include the organization’s customers, employees, board members, and managers. Samsung’s customers do not have precise requirements to join the organizations but must meet the products’ costs. The organization has learned about this by having a stable pricing strategy which helps them understand the specific amounts to charge. Samsung’s employees are also part of the organization’s stakeholders and must meet the required academic achievements (Chang et al., 2019). The organization has laid the same for its managers and has learned that meeting these regulations is significant.

Achieving sustainable development and growth for Samsung has not been an easy fete to achieve. Moreover, the business has faced several shortcomings and challenges that have caused several losses. Since the company is prone to such difficulties during its operations, it is important to deduce the critical strategic issues faced by the organization and devise other plans to solve these issues. Tasked with preparing Samsung’s strategic analysis, my report uses a theoretical approach. It provides an in-depth analysis of the key contentious issues affecting the business and some of the ways that can be appropriately used to achieve sustainable growth and development of the company.

Challenges Faced by Samsung

Like any other company, Samsung is susceptible to challenges and threats that may interfere with its quest for competitive glory. The organization has been marred with several strategic risks and issues that limit Samsung’s full potential in its operations. These threats have also made it impossible for the business to launch many projects due to fear of losses (Chang et al., 2019). These challenges have also affected Samsung’s abilities to engage various markets and rendered the global giant unsuccessful. Gaining an in-depth understanding of dealing with these issues will help the organization achieve successful advantages. However, if faced with the challenges listed below, the company will find itself in complex situations.

 Dependence on Android OS

Samsung hugely relies on Android OS as its primary system of operation. Increased dependence on the android system has limited the company to a specific product type. The single operating system in Samsung’s manufacturing process has been quite a challenge since its licenses are restricted due to Google’s licensing of Android. Despite being a global giant, Samsung is overshadowed by Google and cannot operate without the latter’s consent. Moreover, the overreliance on Android weakens Samsung’s position in the global markets. (Martia et al., 2021). Samsung can no longer compete successfully with its international rivals since it operates under and is licensed by Google. This strategic issue has dramatically affected Samsung’s success since the switching costs related to electronics purchases. The business has not been able to meet the needs of those clients who need various products. These internal strategic factors have prevented Samsung from achieving full potential in growth and successful expansion of its businesses.

Stiff Competition

Stiff competition in international mobile phone markets has also affected Samsung’s ability to succeed in its markets. The organization indulges in global trade, where it faces off with high-quality competitors like Apple. Sometimes, the business is faced with colossal competitor power, rendering its sales low. Moreover, companies like Lenovo, LG, and Sony have continued making massive progress in their market quests (Chang et al., 2019). With the markets saturated with local and international competition, Samsung has been dramatically affected, making it hard to achieve full advantages sustainably. Besides, the increased number of product and service providers have infiltrated Samsung’s potential markets, leaving it with few clients. Samsung’s strategies are seemingly being outdone by its competitors, who have gained recognition in their markets. The competition experienced in Samsung’s markets has contributed to reduced market share. An increase in the number of rivals has made it quite hard for Samsung to enjoy its markets. Stiff competition in Samsung’s markets has made it impossible for the business to grow sustainably and compete with its rivals. In addition, increased competition has sliced off Samsung’s potential market share, thereby reducing its revenue and profits.

Imitation in Samsung’s Markets

Over the years, there has been an increasing number of entrepreneurs and businesses which imitate other brands’ products. These businesses that imitate others have significantly contributed to the downfall of companies. In Samsung’s markets, increased counterfeiting and the production of cheap mobile phones have contributed to more harm than good. These markets have unscrupulous dealers who do not mind the success of others (Lee et al., 2019). For example, the production of cheaper phones in the markets that are similar and partly imitate Samsung’s products attracts many clients. These clients are attracted by the affordable prices of these low-quality products, rendering Samsung’s sales tremendously low. Besides, the increased production of these devices has made many people worldwide addicted to cheap products, forgoing authentic Samsung merchandise. Facing such problems has been very challenging for the company not to benefit fully. Increased imitation in global business has affected Samsung’s prowess in its international markets.

Legal Restrictions and Lawsuits

Increased legal restrictions and lawsuits have contributed to Samsung’s low performance and success. Since the company operates internationally, it has been challenging to meet the requirements of different governments their restrictions and face lawsuits. In addition, the varying requirements needed by governments across the world have made it impossible for the company to uniformly achieve sustainable development and growth (Lee et al., 2019). Besides, the regulations and tax systems in most places do not align. Such challenges have been tragic and have made Samsung incapable of successfully meeting its desired obligations. As a result, Samsung has not been able to implement its internationalization plans successfully. Moreover, mastering the art of understanding organization laws, employment laws, and other jurisdictions have made it very challenging for Samsung to meet its desired outcomes.

How Samsung Can Develop Competitive Advantages

Despite the challenges experienced by Samsung, there are several ways the organization can use to achieve a sustainable and competitive advantage over its rivals in the markets. Samsung can conduct also adopt a theoretical approach to focus on its woes. Using a theoretical approach based on competitive advantages and another based on legitimacy will help Samsung develop the required competitive advantages to fight its rivals (Kodua, 2019). Below are some of the theoretical approaches that Samsung can use to attain the desired competitive advantages.

Resource-Based Theory

According to the resource-based theory, companies can maximize the use of their capabilities and resources since they are the primary constants in which the organization establishes its identity and strategy. Organizations facing challenges in their competitive quests like Samsung must heed the theory’s requirements and desires. However, the resource-based approach must be successfully implemented to facilitate success. If conducted incorrectly, businesses might be subjected to increased threats and risks. Samsung must understand the importance of adhering to the resource-based theory. The organization must identify and classify its resources. Besides, it must understand how to appraise its strengths and weaknesses relative to its competitors in the market. Samsung must also determine its capabilities. The business should assess some of the crucial ways it could use to battle its competitors.

Understanding the competitive advantages of a business will help it gain an improved knowledge of its abilities. Most companies can adjust to these needs by assessing their potential regarding what they would do to achieve market success. Also, the appropriability of the business’ returns can guide companies to understand their competitive advantages. After that, companies need to select improved techniques and strategies relative to their external opportunities. Doing so will help them better understand the methods used and how to identify critical resource gaps that might be needed to be filled. Also, investing in replenishing resources will help businesses gain more advantages. Using a theoretical approach to the study will allow companies to succeed in their quests.

Stakeholder Theory

The stakeholder theory is used by businesses and corporations to achieve sustainable development and growth. The theory accounts for several factors that must be present to make a business successful. The main aim of the thesis is also to help companies gain better advantages and benefits over their competitors. The theory focuses on how it can help integrate unity between the business stakeholders to help achieve sustainable development and growth (Freudenreich et al., 2018). Good stakeholder theory is essential for the development of successful companies. Over the last forty years, this theory has had elicited different reviews. Redefining the significance of organization, the stakeholder theory facilitates successful unity to meet the goals of businesses. In the stakeholder theory, several considerations have to be made. Most importantly, organizations must focus on resolving conflict and looking at some of the best ways they would use to achieve success.


Samsung faces several challenges in the quest to achieve sustainable development. To meet these concerns, there are essential considerations that must be made. Samsung must focus on various theoretical approaches to meet the desired outcome. Moreover, the business must look at the key strategies and measures to facilitate successful business development. Faced with critical strategic issues like an inappropriate operating system that depends on Google, the business has not managed to gain a considerable amount of profit. However, their company can also build on its activities to ensure a successful transition to glory (Fadila, 2021). If they do not lay down successful strategies to meet these concerns, Samsung cannot achieve these desires. Building on the business strengths will also be adequate in helping organizations achieve maximum glory.


All in all, companies are faced with several risks while in their quests to achieve successful developments. Like other institutions, Samsung has been met with several strategic challenges in its development. These challenges have hindered the business’s being a number one brand. Despite enjoying previous success, Samsung’s competition has decreased for several reasons. It has been quite challenging to achieve maximum success and growth with the increased saturation in Samsung’s markets. The market size in its respective locations is small and cannot meet their demands.

Moreover, the business has heavily relied on Google for its operating systems. The chances of expansion for the company have become limited since there is no free space to exercise new ideas. Externally, the business has also faced challenges in its markets in terms of competition. Samsung has not managed to gain improved capacities to its revenue through sales since many brands have joined the markets. These challenges have affected the organization and rendered it unsuccessful despite efforts to meet the desired outcome. However, looking for better ways to solve these challenges will help Samsung gain an improved understanding of its markets and build on effective plans of success. In addition, a theoretical approach to the issue based on various theories will help businesses gain success.


As one of the leading global giants, Samsung must not let its success story slide away. The business can undertake several measures to facilitate successful business. After understanding and experiencing significant issues that affect the company, I believe there are essential factors that must be conducted. Doing these activities will help achieve improved success and gain revenue and sales. The following are some recommendations that can help the business make progress.

Samsung should focus on developing quality and innovative products. The business can achieve success if it considers quality and innovation part of its success story. Since it is in a highly competitive market, Samsung must adopt innovative products to build sustainable development and success over its rivals in the market. The business needs to incorporate creativity in its plans to ensure good innovative products to meet the demands of clients. Facing highly competitive competitors in its market, Samsung must devise essential means and methods to make advertisements to help attract customers. Ensuring quality products and creative advertising will help the company retain and make its clients happy.

Before delivering products worldwide, the company must cross-check and analyze the significant processes and details. The quality of the products must be met to help improve successful sales. Samsung must identify and classify its firm’s resources. The business must understand the importance of assessing its strengths and weaknesses compared to its rivals in the market. The company should also identify the various opportunities that can be used to utilize resources to create competitive glory. Samsung must understand its capabilities in terms of what it can and cannot do. The business should also appraise the rent-generating abilities of its resources. The company should also understand its potential to help in sustainable competitive advantages. The business can also assess the strength of the returns accrued after investments.

Samsung should select an appropriate strategy that will best exploit its resources. Doing so will help the company gain better insights into sparingly using its resources to achieve success. The resource gaps must also be identified to be filled. Filling these gaps will help Samsung gain a better understanding of how to maneuver in its businesses. Therefore, the company must understand its resources and know-how to implement them. The industry must also understand the capabilities present within its reach if it successfully uses its resources. The competitive advantage of the company must also be considered. The business must also devise essential strategies to solve these challenges and meet their desired outcomes.

Samsung must also understand the importance of following various theories to help it address better plans for success. The business must use intends to unite the employees and stakeholders. Despite the existing challenges, Samsung must acknowledge the significance of an influential culture to build upon successful business. The business leaders in the company must integrate methods and plans to make everyone feel united and engineered towards a particular course. The employees in the company must also do their best and produce quality products and services to meet the desired outcomes. Unity is essential and must be acknowledged with great importance. Samsung must consider these activities for it to be successful.

Lastly, Samsung should train its employees on the necessary skills needed in their lines of duty. The business must also hire qualified staff to meet the desired outputs and targets. If the company decides to hire quality employees, it will benefit from timely completion of tasks and can make it gain increased revenue through improved sales. Significantly, focusing on these activities will help Samsung achieve its desired outcomes.


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Chang, V., Zhang, W., & Xiong, C. (2019). The strategic view and development of corporate social responsibility: the case study of Samsung. International Journal of Strategic Decision Sciences (IDS)10(1), 105-130.

Fadila, A. (2021). Importance of Market Orientation and Product Innovation in Competitive Advantage for Improving Marketing Performance. Journal of Islamic Economic Scholar2(1).

Farahani, D. S., Ebrahimi, A., Moradian, M., & Tafti, M. K. (2020). A Study on the Role of Advertising in Competitive Advantage and Brand Popularity (Case Study: Samsung Company).

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Martia, C., Efendi, S., Elpikar, T., & Putri, A. M. (2021). ANALISIS STRATEGI MANAJEMEN PT. SAMSUNG. Research in Accounting Journal (RAJ)1(3), 387-393.

Omer, S. K. (2019). SWOT analysis implementation’s significance on strategy planning Samsung mobile company as an example. Journal of Process Management. New Technologies7(1), 56-62.


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