Samsung 5forces

Topics: Smartphone, Mobile phone, Nokia Pages: 4 (1417 words) Published: January 11, 2013
Analyzing an Organization by Porter's Five Forces
Samsung mobile phone.

This essay analyses the Samsung Mobile company by applying Porter's Five forces. Also each factor will be compared with Apple and Nokia which are competitive companies in the mobile industry and the strength of Samsung's strategic position will be demonstrated.

Samsung Electronics, Apple and Nokia are the competitive mobile companies. To compare each company's strategic position Samsung was chosen. Although many components are needed to make mobile phones; semiconductors and the operating systems (OS) which companies use will be mainly discussed because these factors have an effect on the function of a mobile phone. Therefore this essay analyses Samsung's strategic position in comparison with Apple and Nokia's.

The threat of new entry.
The mobile phone industry needs high capital requirements to produce a large volume of products(Husso, 2011). According to Porter (1996), the more capital that is required, the higher the entry level which means it is difficult to enter and survive the market without large capital. Samsung, Apple and Nokia have also existed for a long time in the industry and have strong distribution channels(Huvard et al, 2006). Even if a new company enters the market, it is expected that they would be affected by incumbents and find it difficult to survive. Because of this, the threat of new entry will be low and expected retaliation will be high.

Rivalry among existing competitors.
Competition in the mobile industry is high.(Parnell, 2009). As can be seen from Table 1, Samsung's sales numbers are at the top above the other companies. It is suggested that Samsung's smartphones have attractive hardware design, improved features and strong support systems so these factors make them a market leader(Awal, 2012). Samsung Semiconductor is a subsidiary company of Samsung Electronics which provides semiconductors to Samsung Electronics used in...
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