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1. SAMSUNG ELECTRONICS
SWOT
ANALYSIS 2017

2. ABOUT SAMSUNG
Name Samsung Electronics Co., Ltd.
Logo
Industries served
• Consumer electronics (digital cameras, camcorders, TVs, blu-rays, laptops,
home theaters, displays, tablets)
• Telecommunications equipment (phones, smartphones)
• Semiconductors (DRAM, V-NAND, SSD, UFC)
Geographic areas served Worldwide (80 countries)
Headquarters Suwon, Gyeonggi Province, South Korea
Current CEO Oh-Hyun Kwon
Revenue US$177.365 billion (2015) decreased 2.7% over US$182.273 billion (2014)
Profit US$16.848 billion (2015) decreased 18.5% over US$20.679 billion (2014)
Employees 319,000 (2015)
Main Competitors
Apple Inc., Nokia Oyj, Intel Corporation, LG Display and LG Electronics, Sony
Corporation, Texas Instruments Inc., Lenovo Group Limited, Hewlett-Packard
Company, Sanyo Electric Co., Ltd., Toshiba Corporation, SK Hynix Inc., Western
Digital Corporation and many other consumer electronics, telecommunications
equipment, semiconductor and home appliance companies.

3. Samsung Electronics Co., Ltd. (further Samsung), a part of the Samsung Group, is the world’s
second largest technology company by revenue. The company produces:
• Consumer Electronics
• Telecommunications Equipment
• Semiconductors
• Home Appliances
The company is the world’s largest mobile phone and smartphone vendor. It is also the largest
memory chip and TV manufacturer. Samsung operates in 80 countries, where it sells a range of
more than 100 products.
SLIDE | 3
BUSINESS DESCRIPTION (1/2)
“ ”

4. SLIDE | 4
BUSINESS DESCRIPTION (2/2)
Samsung operates 3 business divisions

5. Innovation is crucial to
succeeding in the technology
sector. Usually, the more a
business invests in R&D, the
more innovations it creates.
SLIDE | 5
STRENGTHS
1. Very high research and development (R&D) expenditure resulting in one of the strongest patent portfolios among
technology companies
R&D spending strongly
correlates with a company’s
revenue growth and expansion
into the new product markets.
Figure 1. R&D spending by Samsung and its largest competitors (in US$ billions and percentages)
Source: Strategy+ Business [2][3]. Data for Sony and LG are from their respective financial reports[30][31]
Company 2014
Change
from 2013
As a % of
revenues
2015
Change
from 2014
As a % of
revenues
Samsung
Electronics
13.4 28% 6.4 14.1 5% 7.2
Apple 6.0 32% 2.6 8.1 35% 3.4
Microsoft 10.4 6.1% 13.4 11.4 9% 13.1
Intel 10.6 4.6% 20.1 11.5 9% 20.6
Amazon.com - - - 9.3 41% 10.4
LG Electronics 2.3 9.1% 3.9 2.1 (1)% 3.8
Sony 4.5 (10.2)% 6.9 3.9 (0.3)% 6.0
S W
O T

6. SLIDE | 6
STRENGTHS
• In 2014 and 2015, Samsung’s investment
in R&D was the largest among
technology companies.
• Samsung’s high R&D spending has
resulted in it developing the largest
patent portfolio among its key rivals.
Figure 2. Utility patents granted in the U.S.
Company 2013 2014 2015 Total
Samsung Electronics 4,652 4,936 5,059 14,647
Apple 1,775 2,003 1,937 5,715
Microsoft 2,659 2,829 2,408 7,896
Intel 1,454 1,573 2,046 5,073
Amazon.com 530 741 1,136 2,407
LG Electronics 1,945 2,119 2,241 6,305
Sony 3,073 3,214 2,448 8,735
Source: U.S. Patent and Trademark Office[4][5][6]
• The more patents a company has, the better position it is in to defend its innovations from being copied by rivals.
Currently, Samsung’s patents portfolio is one of the strongest in the technology industry.
S W
O T

7. 1. Too many smartphone models
Samsung has released the most new smartphones models in 2015.
SLIDE | 7
WEAKNESSES
39
new models
25
new models
27
new models
2
new models
Having too many smartphone models lowers economies of scales and increases
costs.
S W
O T

8. 1. Introduce a separate low-end smartphone brand to counter the expansion
of Xiaomi, Huawei and Lenovo smartphones
SLIDE | 8
OPPORTUNITIES
Samsung’s worldwide
smartphone market
share plunged to just
22.7% in 2015, its lowest
level in 4 years.[10]
Source: IDC[18]
S W
O T

9. The main reason for this is Samsung’s loss of market share in China and other developing countries
where companies like Huawei, Lenovo and Xiaomi are expanding rapidly.
In order to compete with these low-end smartphone vendors Samsung could introduce a cheap
smartphone line and use a different approach for this ‘new’ brand to increase its market share in this
segment.
SLIDE | 9
OPPORTUNITIES
S W
O T

10. 1. Smartphones using Android OS are becoming a commodity
SLIDE | 10
THREATS
Period Android iOS
Windows
Phone
BlackBerr
y OS
Others
Q2 2015 82.8 13.9 2.6 0.3 0.4
Q2 2014 84.8 11.6 2.5 0.5 0.7
Q2 2013 79.8 12.9 3.4 2.8 1.2
Q2 2012 69.3 16.6 3.1 4.9 6.1
Figure 12. Worldwide smartphone OS market share (in percentages)
Source: IDC[20]
• 82.8% of all smartphones
use Android OS;
• Samsung is only one of
many smartphone vendors
using the same Android OS;
• Hardware no longer offers
any differentiation;
• In the long-term, Samsung
won’t be able to differentiate
its smartphones if using
Android OS.
S W
O T

11. 1. Samsung Electronics (2016). Annual Report. Available at:
http://www.samsung.com/us/aboutsamsung/investor_relations/financial_information/downloads/2015/2015_con_quarter04_all.pdf Accessed January 8, 2017
2. Jaruzelski, B., Staack, V. & Goehle, B. at Strategy& (2014). The Global Innovation 1000: Proven Paths to Innovation Success. Available at: http://www.strategy-
business.com/article/00295?pg=allAccessed January 8, 2017
3. Jaruzelski, B., Staack, V. & Goehle, B. (2015). Innovations New World Order. Available at: http://www.strategy-business.com/feature/00370 Accessed January 8, 2017
4. U.S. Patent and Trademark Office (2014). Patenting by Organizations 2013. Available at: http://www.uspto.gov/web/offices/ac/ido/oeip/taf/topo_13.htm Accessed January 8,
2017
5. U.S. Patent and Trademark Office (2015). Patenting by Organizations 2014. Available at: http://www.uspto.gov/web/offices/ac/ido/oeip/taf/topo_14.htm Accessed January 8,
2017
6. U.S. Patent and Trademark Office (2016). Patenting by Organizations 2014. Available at: http://www.uspto.gov/web/offices/ac/ido/oeip/taf/topo_15.htm Accessed January 8,
2017
7. Statista (2016). Global market share held by LCD TV manufacturers from 2008 to 2013. Available at: http://www.statista.com/statistics/267095/global-market-share-of-lcd-tv-
manufacturers/ Accessed January 8, 2017
8. Statista (2016). Global market share held by NAND Flash memory manufacturers worldwide from 1st quarter 2010 to 4th quarter 2015. Available at:
http://www.statista.com/statistics/275886/market-share-held-by-leading-nand-flash-memory-manufacturers-worldwide/ Accessed January 8, 2017
9. Statista (2016). Global market share held by the leading mobile phone vendors from 2009 to 2014 (share of sales to end users). Available at:
http://www.statista.com/statistics/271574/global-market-share-held-by-mobile-phone-manufacturers-since-2009/ Accessed January 8, 2017
10. IDC (2016). Apple, Huawei, and Xiaomi Finish 2015 with Above Average Year-Over-Year Growth, as Worldwide Smartphone Shipments Surpass 1.4 Billion for the Year,
According to IDC. Available at: http://www.idc.com/getdoc.jsp?containerId=prUS40980416 Accessed January 8, 2017
11. Interbrand (2016). Best Global Brands. Available at: http://interbrand.com/best-brands/best-global-brands/2015/ranking/ Accessed January 8, 2017
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SOURCES (1/3)

12. SLIDE | 12
SOURCES (2/3)
12. Forbes (2016). The World’s Most Valuable Brands. Available at: http://www.forbes.com/powerful-brands/list/ Accessed January 8, 2017
13. Samsung (2016). SAMSUNG Electronics Honored with 80 CES Innovation Awards. Available at: http://www.samsung.com/us/news/24447 Accessed January 8, 2017
14. Samsung Tomorrow (2014). What Happens in IDEA Stays More than Just an Idea. Available at: http://global.samsungtomorrow.com/?p=25561 Accessed January 8, 2017
15. Han, A. (2010). Who's Greener, Samsung or LG? Available at: http://www.biztechreport.com/story/767-whos-greener-samsung-or-lg Accessed January 8, 2017
16. Kelion, L. (2014). Samsung picks Vietnam for $3bn smartphone factory. Available at: http://www.bbc.com/news/technology-29985467 Accessed January 8, 2017
17. GSM Arena (2016). Samsung Phones. Available at: http://www.gsmarena.com/samsung-phones-f-9-10.php Accessed January 8, 2017
18. IDC (2015). Smartphone Vendor Market Share, Q2 2015. Available at: http://www.idc.com/prodserv/smartphone-market-share.jsp Accessed January 8, 2017
19. Ogura, K. (2016). Samsung's leaner, faster approach to smartphones pays off. Available at: http://asia.nikkei.com/magazine/20160505-DEMOCRACY-
DEFERRED/Business/Samsung-s-leaner-faster-approach-to-smartphones-pays-off Accessed January 8, 2017
20. IDC (2015). Smartphone OS Market Share, Q2 2015. Available at: http://www.idc.com/prodserv/smartphone-os-market-share.jsp Accessed January 8, 2017
21. ITU (2016). Internet of Things Global Standards Initiative. Available at: http://www.itu.int/en/ITU-T/gsi/iot/Pages/default.aspxAccessed January 8, 2017
22. EMC & IDC (2014). The Internet of Things. Available at: http://www.emc.com/leadership/digital-universe/2014iview/internet-of-things.htm Accessed January 8, 2017
23. Norton, S. (2015). Internet of Things market to Reach $1.7 Trillion by 2020: IDC. Available at: http://blogs.wsj.com/cio/2015/06/02/internet-of-things-market-to-reach-1-7-
trillion-by-2020-idc/ Accessed January 8, 2017

13. 24. MarketsandMarkets (2014). Global Market for Wi-Fi/WLAN, Wireless Display/Video, Mobile WiMAX & LTE (4G) and ZigBee Chipsets in Consumer Electronics & Automation Applications
worth $20.4 Billion by 2017. Available at: http://www.marketsandmarkets.com/Market-Reports/wireless-communication-chipsets-market-834.html Accessed January 8, 2017
25. Zacks (2014). Qualcomm Leads Mobile Baseband Chipset Market. Available at: http://www.zacks.com/stock/news/138901/qualcomm-leads-mobile-baseband-chipset-market Accessed
January 8, 2017
26. Rayburn, D. (2013). Global Smart TV Sales To Grow At A Low CAGR of 23%, Over Next Five Years. Available at: http://www.frost.com/reg/blog-display.do?id=2936846 Accessed January 8,
2017
27. Business Wire (2014). Research and Markets: Gestural Recognition: Sensors, Cameras and Other Technology Opportunities 2014. Available at:
http://www.businesswire.com/news/home/20141127005070/en/Research-Markets-Gestural-Recognition-Sensors-Cameras-Technology#.VIGIfDGUe-0 Accessed January 8, 2017
28. Statista (2016). Global smartphone shipments forecast from 2010 to 2019 (in million units). Available at: http://www.statista.com/statistics/263441/global-smartphone-shipments-forecast/
Accessed January 8, 2017
29. IDC (2016). Apple, Huawei, and Xiaomi Finish 2015 with Above Average Year-Over-Year Growth, as Worldwide Smartphone Shipments Surpass 1.4 Billion for the Year, According to IDC.
Available at: http://www.idc.com/getdoc.jsp?containerId=prUS40980416 Accessed January 8, 2017
30. LG Electronics (2016). [2015] 4Q Consolidated Financial Statements. Available at: http://www.lg.com/global/pdf/ir_report/2015-4Q-Consolidated-Interim-Financial-Statements.pdf Accessed
January 8, 2017
31. Sony Corporation (2015). Consolidated Financial Results for the Fiscal Year Ended March 31, 2015. Available at: http://www.sony.net/SonyInfo/IR/library/fr/14q4_sony.pdf Accessed January
8, 2017
32. Apple, Inc. (2016). Form 10-K for the Fiscal Year Ended September 26, 2015. Available at: http://files.shareholder.com/downloads/AAPL/899225436x0xS1193125-15-
356351/320193/filing.pdf Accessed January 8, 2017
33. Microsoft Corporation (2016). Form 10-K for the Fiscal Year Ended June 30, 2015. Available at: http://apps.shareholder.com/sec/viewerContent.aspx?companyid=MSFT&docid=10834537
Accessed January 8, 2017
34. Intel Corporation (2016). Annual Report 2015. Available at http://www.intc.com/intel-annual-report/2015/Report-Flipping-Book/ Accessed January 8, 2017
35. Amazon.com, Inc. (2016). Form 10-K for the Fiscal Year Ended December 31, 2015. Available at: http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsannual Accessed January
8, 2017
SLIDE | 13
SOURCES (3/3)

14. SLIDE | 14
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ELECTRONICS SWOT 2017