Jenny M.

Sison

BSA41

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Case Analysis: Samsung Electronics Co. Limited

Mission: Samsungs mission is focused in building its brand and becoming a

creative leader in new markets.

Vision: Inspire the world, create the future

SWOT ANALYSIS

1. Strengths (Internal)

Samsung is the worlds largest manufacturer of televisions, LCD

panels, mobile phones and smart phones. Samsung has a really
strong brand name in electronic industry.
They are focused on producing devices that can be connected
with most of the software android, operating system. This gives
them an edge over Apples devices.
Samsung can also produce their products with a lower production
cost as compared to their competitors. This is an advantage for
the since they can offer lower prices but higher quality products.
They also have strong manufacturing and marketing capabilities.

2. Weaknesses (Internal)
 Some consumers prefer Apple products than Samsung because
they think that Apple products are more advanced and reliable.
Samsung doesnt have its own OS (operating system) and
software. It is only dependent upon external OS, named Android,
which is owned by Google.
The marketing capabilities of Samsung are not too strong as
compared to Apple.
Competitive advantage can be hard to sustain for Samsung.
Recently, there has been a big issue in the Philippines about the
explosion of a newly released Samsung product. This forced
Samsung to recall the handset and offer replacements and
refunds to affected customers. Due to this issue, many
customers already lost their trust on Samsung products.

3. Opportunities (External)

Samsungs wide range of smartphones can attract different

markets. Due to this, they are considered the leading Android
manufacturer.
Increased demand for tables and smartphones can also be a
great opportunity for Samsung. Moreover, they may also raise
their revenues if they increase their presence in some emerging
markets.
I strongly believe that the explosion issue can also have positive
implications for Samsung. For instance, this will be a great
opportunity for them to improve their quality, reliability and
innovativeness.

4. Threats (External)

Apple is also one of the most visible and recognizable consumer

electronics brand in the world. Apple has emerged as the
dominant smartphone and tablet brand in some markets.
Samsung has not been able to overcome Apples reputation for
 reliability, quality and sophistication which continuously grows as
time passes by.
Some competitors also have strong capabilities to copy the
products and services offered by Samsung. Due to this, they may
lose their uniqueness in the long run.
Chinese manufacturers such as Huawei can also be a strong rival
for Samsung.
Apple may also directly compete with Samsung in other markets
such as home appliances and cameras in the near future.

1. Discuss the concept of policy as distinguish from strategy.

According to the reference provided, policy is a tool or control measure that forms part of
management system and managing a business while strategy is a plan of action designed to
achieve a major or overall aim. It is a comprehensive master plan of a corporation stating how
the corporation will achieve its mission and objectives. Based on these definition, it can be
inferred that policies are generally directional while strategy is more operational. In other cases,
both exists without the other. This means that strategies may exists without established business
policies and vice versa.
2. Briefly describe the context of strategic management.
Strategic management determines the long-run performance of a corporation by having
set of managerial decisions and actions. It includes external and internal environment scanning,
short and long-run strategy formulation, strategy implementation, evaluation and control. These
decisions and actions are based on the objectives and strategies supporting the vision and mission
statement of the business. It highlights the need to monitor and evaluate opportunities and threat
that relates to the strengths and weakness of the business.
3. Differentiate tactics from strategy.
There are a lot of differences of tactics from strategy. One of these is where it is
employed. Top management uses strategy while tactics are employed by the lower levels of
management. Strategy also needs to be formulated continuously and is irregular while tactics
must be regular and fixed in time. Strategy also gives greater impact than tactics in terms of
subjective decisions. The range of alternatives that a management in choosing tactics that must
be employed is far lesser than the alternatives in choosing strategies. The reason is because
tactics are formulated in pursuit of the strategies. On the other hand, strategies requires more
information than tactics because top managements view the needs of business in a big picture.
4. Discuss the nature of strategic decisions.
Strategic decisions are naturally for the long run. It chooses the right future of the entire
business. It is complex and is not continuous. All levels of the organization must provide full
commitment as it will affect the entire direction of the firm. This will determine the success of
the strategy of an organization.
Question 1
5. Strategic actions are composed of the following EXCEPT:
Response: c. UNDERTAKEN TO FINE TUNE STRATEGY
Correct answer: c. UNDERTAKEN TO FINE TUNE STRATEGY
Score: 2 out of 2 Yes

Question 2
7. The resources and capabilities that have been determined to be a
source of competitive advantage for a firm over its rivals is called core
competency.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 3
6. Internal and external environment analysis creates a firms
competitive advantage.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 4
3. Firms using an Integrated Strategy may:
Response: e. All of the above
Correct answer: e. All of the above
Score: 2 out of 2 Yes

Question 5
9. Business level strategy is an actions taken to provide value to
customers and gain a competitive advantage by exploiting core
competencies in specific, individual product markets.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 6
8. Strategy is an integrated and coordinated set of actions taken to
exploit core competencies and gain a competitive advantage.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 7
2. Strategy is an integrated and coordinated set of actions taken to
exploit core competencies and gain a competitive advantage.
Response: Strategy
Correct answer: Strategy
Score: 2 out of 2 Yes

Question 8
10. Effective Cost Leaders can remain profitable even when the Five
Forces appear unattractive. T
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 9
4. Differentiation business level strategy has the following criteria
EXCEPT:
Response: e. Quality focus
Correct answer: e. Quality focus
Score: 2 out of 2 Yes
Question 10
1. The resources and capabilities that have been determined to be a
source of competitive advantage for a firm over its rivals.
Response: core competency
Correct answer: core competency
Score: 2 out of 2
1. Choose a company local or international with a website.
- The Coca-Cola Company
2. identify its internal environment (Strengths, weaknesses) and
external environment (opportunities, threats)

- Strengths in the SWOT

Brand Equity Interbrand in 2011 awarded Coca cola with the highest
brand equity award. Coca cola with its vast global presence and
unique brand identity is definitely one of the costliest brands with the
highest brand equity.
Company valuation One of the most valuable companies in the world,
Coca cola is valued around 79.2 billion dollars. This valuation includes
the brand value, the numerous factories and assets spread out across
the world and the complete operations cost and profit of Coca cola.
Vast global presence Coca cola is present in 200 countries across
the world. Chances are, any country that you go to, you will find coca
cola present in that market. This vast global presence of coca cola has
also contributed to the building of the mammoth brand name.
Largest market share There are only 2 big competitors in the
beverage segment Pepsi and Coca cola. Out of these 2, coca cola is
the clear winner and hence has the largest market share. Amongst all
beverages, Coke, Thums up, Sprite, Diet coke, Fanta, Limca and Maaza
are the growth drivers for Coca Cola.
Fantastic marketing strategies Coca cola unlike Pepsi always tries to
win peoples heart. Where Pepsis target is continuously changing, and
is targeted towards youngsters, Coca cola targets people of all ages.
Customer Loyalty With such strong products, it is natural that Coca
cola has a lot of customer loyalty. The products mentioned above like
Coca cola and Fanta have a huge fan following. People will prefer these
soft drinks over others. Because of the good taste of Coca cola, finding
substitutes becomes difficult for the customer.
Distribution network Coca cola has the largest distribution network
because of the demand in the market for its products. On the other
hand, due to this successful distribution network, Coca cola has been
able to command such a high market presence.

- Weaknesses in the SWOT

Product Diversification is low Where Pepsi has made a smart move
and diversified into the snacks segment with products like Lays and
Kurkure, Coca cola is missing from that segment. The segment is also
a good revenue driver for Pepsi and had Coca cola been present in this
segment, these products would have been an additional revenue driver
for the company.
Absence in health beverages If you watch the news, you would know
that obesity is a major problem affecting people nowadays. The
business environment is changing and people are taking measures to
ensure that they are not obese. Carbonated beverages are one of the
major reasons for fat intake and Coca cola is the largest manufacturer
of carbonated beverages. The inference is that the consumption of
beverages in developed countries might go down as people will prefer
a healthy alternative.
Water management Coca cola has faced flak in the past due to its
water management issues. Several groups have raised lawsuits in the
name of Coca cola because of their vast consumption of water even in
water scarce regions. At the same time, people have also blamed Coca
cola for mixing pesticides in the water to clear contaminants. Thus
water management needs to be better for Coca cola.

- Opportunities in the SWOT

Diversification Diversification in the health and food business will
improve the offerings of Coca cola to their customers. This will also
ensure that they get better revenue from existing customers by cross
selling their products. The supply chain which is distributing their
beverages can also distribute these snacks thereby sharing the load of
Supply chain costs.
Developing nations Although developed nations have a high presence
of Coca cola, these countries are slowly moving towards healthy
beverages. However developing countries are still being introduced to
the delight of carbonated drinks and soft drinks. Countries like India
which are developing and have a hot summer, find the consumption of
cold drinks almost doubled during summers. Thus the higher
consumption in developing business environment can be a good
opportunity to capitalize for Coca cola.
Packaged drinking water With hygiene becoming a major factor in the
consumption of water, packaged drinking water has found its way into
peoples mind. Coca cola has a presence in the packed drinking water
segment though Kinley. Although Kinleys expansion is slow as of now,
Kinley has a huge potential of expansion. Thus Coca cola as a
company should focus on the expansion of Kinley as a brand and take
it up to Bisleris level of trust.
Supply chain improvement Supply chain can be a major cost sink
hole with the transportation costs always rising. Coca colas complete
business is based on transportation and distribution. There will always
be possible improvements in this area. Thus Coca cola should keep
strict watch on its Supply chain and keep improving to bring the cost
down.
Market the lesser selling products In the product portfolio of Coca
cola, there are several products which have not found acceptance in
the market. Coca Cola needs to concentrate on the marketing of these
products as well. It is understood that Coca cola has made several
expenses to launch these products. Thus, the marketing and
subsequent rise of sale of these products will help revenue of Coca
cola.

- Threats in the SWOT

Raw material sourcing Water is the only threat to Coca cola. The
weakness of Coca cola was the suspected use of pesticides or vast
consumption of water. However, the threat here is that water scarcity
is on the rise. With the climate changing, and regions of various
countries facing scarcity of water, sooner or later someone might raise
fingers on beverage companies. Thus, Water sourcing is an axe which
can fall anytime on the head of Coca cola. If water is limited or
rationed, Coca cola can experience a major downfall in their revenue
and capacity of distribution. The same can affect its arch rival Pepsi
as well.
Indirect competitors Coffee chains like Starbucks, Caf coffee day,
Costa coffee are on the rise. These chains offer a healthy competition
to Coca colas carbonated drinks. They might not be a big competition
for Coke, but they do give a dent to its beverage market. Similarly,
health drinks like Real and Tropicana as well as energy drinks like Red
bull and Gatorade are stealing away the market share indirectly