Samsung - SWOT analysis

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Samsung- SWOT Analysis

A financially crippled giant 6 yrs ago, associated with cheap me to tv's and microwaves. From 1997 debt has shrink from $10.8bn to $1.4bn (source Tech Biz research). Overall cut 24000 employees and sold $2bn non core biz.

Thrives in low margin consumer electronics

Favors hardware over software

Makes everything itself

High definition phones

Feature jammed gadgets

Global Market Share (Data - Gartner June 03)- Cell phones

Nokia 36%

Motorola 15%

Samsung 10%

Siemens 8%

Global sales 10.4bn operating profit 2.5bn.

First quarter 2003 announced biggest market share gain of any company in handset sales (9.3-10.5), however at lower prices- fall in 1st Qtr profits of 41% to $942million on sales of $8bn. Investors globally set to loose if earnings soften as with $41bn (foreign investors hold more than half) in market Cap Samsung is the most widely held emerging stock in the world. Shares have risen tenfold over 5 yrs to $273.

CNN,USA Today- Samsungs ads first to pop up

Matrix Tie in's


I ask for a report on what Samsung is doing every week (Sony Pres) Kunitake Ando. Sony noted Samsungs aggressive restructuring and said Sony must follow.

2nd biggest maker of CDMA (code division muliple access) (Motorola #1)

It is used to huge swings. Cells kept avg price at $191 versus $154 Nokia $147 Motorola.

Cash rich (With nearly 7bn in cash Samsung has plenty to spend on R&D.)

Vertical integration at work (semiconductors,tellecom,digital appliances and digital media- all fit into the latest cell phone)

Driving success is CEO Yun Jong Yong (since 1997). (ferocious drive).

Less bureaucracy in product approval, marketing- gives them flexibility to sieze opportunities.

Speed- Average of 5 months concept to rollout of new product. Compared to 14 months 6 years ago. After Samsung persuaded...