“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation
(opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”
Samsung Electronics Company (Samsung Electronics), a part of the
Samsung group, is one of the leading consumer electronics brands in the world.
It manufactures and markets consumer electronic products such as televisions and home appliances. The company also manufactures semiconductors, information technology products and telecommunication infrastructure system.
The company primarily operates in Asia, Europe and America. It is headquartered in Seoul, South Korea and employed about 150,000 people as of financial year (FY) 2007.
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Location of Factor
Internal
External
Strengths
¾
Favorable
TYPE OF FACTOR
Unfavorable
Weaknesses
Robust top line growth
¾
Strong market position
¾
Fluctuating operating and net
¾ Diversified business profits portfolio
Opportunities
¾
¾
¾
Positive outlook for semiconductors
Increasing mobile phone sales
Growing Indian market
Threats
¾
Increasing raw material prices
¾ Intense competition
¾ Government regulations
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