The Stock of Samsung - Case Study Example

Buyer power, which is another of porter forces, is also very strong because high competition and knowledge to the consumer through advertising enlighten them and they become powerful. Similarly, Supplier power is weak because each of these firms can choose to take electronic supply from many companies serving this industry. Substitute product force is also high because of the influx of "made in China" goods in the industry and firms operating in this industry are vulnerable to cheap products from China.

The threat of rivalry is very high in this industry, because of various competing brands such as LG, Sony, and Panasonic, etc. The driving force in this industry is the lust to get more and more market share. Many firms operating in this industry are trying to achieve this by attracting consumers towards their products through persuasive and informative advertising and reduced prices that they offer to the customers. In the past years, it has been observed that quality and price are the factors that play the most important part of the success of firms operating in this industry (Daft, 1997).

However, look at the overall condition and recessionary trend in the world economy; it is very hard to predict that the firms operating in this industry will continue to remain profitable. . The strategy that Samsung is following to remain competitive in the market is continuous research and development. This helps Samsung to develop new products before its competitors and attract new market share. SWOT ANALYSIS:STRENGTHS:Samsung earns the highest revenue in the industrySamsung has a good brand name due to the reliability of its productsGood After-Sales Services and Friendly StaffRigorous training is given to all employees and especially managers WEAKNESSES:Lagging behind other firms in the mobile phone sectorSamsung is a very large company, which results in diseconomies of scales and higher prices than its competitorsSamsung is experiencing a higher cost of production than its competitorsOPPORTUNITIES:The industry is growing at a rate of 10% Many investors are willing to invest in this industry, and as a result, there is a good chance for companies like Samsung to Capitalize their reputationTHREATS:This industry is highly competitive, so any minor mistake can doom the company's reputationThe cost of production is rising due to a shortage of skilled workers and a hike in the salaries of workersSamsung prices are very competitive to its competitors apart from one or two of their products.

Samsung has always tried to remain competitive in terms of prices and this is a result that it is enjoying the highest market share in the industry. The company is competitively very strong when compared to its rivals. Its focus on "HOT DESIGN, Lower Prices" has yielded a good reputation for the company and it has seen sky-rocketing growth both in the revenues and market share.