Samsung Electronics Company is Electronics Company in a South Korean. Samsung Electronics Ltd is the world's largest information technology company depends on data of business’s revenues from 2009. More specific, it has owned the assembly plants in 88 countries and has employs and workers about 370,000 people.
Establish the context of business
On the one hand, the PEST analysis of Samsung Electronics Ltd will show political, economic, social and technological elements produce the advantages and disadvantagesto Samsung Company.Samsung Electronics thinks highly of the political factor, further, and the business’s rules and regulations must both comply with the European governments and other countries. For the taxes contribution, SamsungCompany strictly abides by the taxation rules in the business. Samsung has sustained economic growth in the recent years, and the revenues and profits are improved even if there are many stronger competitors in the market. Samsung also focus on the social development because they
Offer some products with low profit to common people.
These products give a low price to the developing countries based on the majority needs and wants. When comes to another analysis, technological element, it is main sector for Samsung to maintain and develop the company for many years. For example, the technological process in manufacture, such as cell phone, LCDs and other many electronic products. Samsung Company has to own the advanced technology and equipment to keep the one of the leading position in the global market.
On the other hand,other analysis method is SWOT. From the SWOT aspect, Samsung has a high level of hardware that based on advanced software and they offers the better products with advanced innovation and design. The business also focuses on environment protection so builds better corporate social responsibilities to the public. The good CSR sets up a better business imagines can help reach the final goals.
Due to the cost of production is low, the business have the price advantage in the market so that owns largest share in mobile phones. While Samsung has a problem about patent infringement in the recent years so that this problem causes adverse affection to the brand. For other disadvantage, because of the product’s price is low, the profit margin still keep a low level when compared with other competitors. Considering the key risk of technology aspect, Samsung have no its software technology.
From the above analyses, Samsung Electronics Co., Ltd manages these risks by many systems in the business. According to different environment and needs, they will use different system to manage risks. Samsung Ltd understands and ensures risks types by analysis and evaluating the advantages and disadvantages. The market environment usually changes so Samsung should consider the current and potential risks in the business