University of the Philippines Visayas
Prof. VIOLA C. SIOZON
Samsung Electronics, one of the largest semiconductor manufacturers. It is also South Korea’s top electronic company.
It makes many kinds of consumer devices, including DVD players, digital TVs, and digital still cameras; computers, color monitors, LCD panels, and printers; semiconductors such as DRAMs, static RAMs, flash memory, and display drivers; and communications devices ranging from wireless handsets and smartphones to networking gear.
The company, which is the flagship member of Samsung Group, also makes microwave ovens, refrigerators, air conditioners, and washing machines. Nearly half of sales come from the Asia/Pacific region.
II. Situational Analysis (TOWS)
Threats 1) Relentless deflation 2) Rivals can buy similar technologies from other vendors without tying up capital or making long term commitments. 3) Chinese companies keep driving prices ever lower, leveraging super cheap wages and engineering talent. 4) Direct and strong Competitors (Apple Computer Inc., Motorola Inc., Sony Corp., Nokia, etc.) in a tough environment 5) Korea’s slumping economy─ and in China and other Asian countries struck by SARS epidemic.
| Opportunities 1) Venture into new markets 2) Proliferate production outputs 3) Increase capitalization
| Weaknesses 1) Too many diversified products 2) Inevitability to decrease price 3) Life cycle of hardware goods is brutally short and subject to relentless commoditization.
| Strengths 1) Using the latest and high-end technologies in manufacturing and creating new products (CDMA, DRAM, DLP and NAND) 2) Excellent R&D capabilities 3) Fewer layer of bureaucracy 4) Vertically Integrated 5) Diversified product lines 6) Competent employees
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