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Commission and Service Charges 10 million KRW Accommodation 10 million KRW 5 Plant and Equipment 80 million KRW *These are just an estimation of the cost while implementing the strategy. These have been estimated on the basis of the Annual Report of 2013 after analyzing it. (Samsung, Annual Report 2013)Enjoys economies of scale environmental disasters) thus this will add up to its brand image Weakness Doesn’t have its own operating system in cell phones Not a product leader Progress reduction in some countries Patent infringement Lack of product differentiation WO Samsung can work on its existing software Tizen to come up with user friendly products Focus on emerging markets in order to gain a larger customer base and in turn become a product leader WT Have a strong legal and public relations team to tackle the legal hurdles Where there progress is reducing apply corporate parenting technique Join hands with service providers to offer their products with the services
Appendix 5 Porter’s Five Forces Model Industry Rivarly-HighThreat of New Entrants -LowBuyers -ModerateSubstitute-ModerateSuppliers: Low-High
Appendix 12 Political Geopolitical uncertainties can hinders companies operation Sanctions on different countries results in market losses Hefty Taxation can drain the financial Resources of the company Ignorance of patent law in some countries- e.g. China ranks 57 out of 130 Pressure from lobby groups Economical Globalization- Helps in entering new markets Increase in customers purchasing power can increase in sales High standard of living- Requires Constant innovation Fluctuations in exchange rates –Can increase or lower the end products price Social Cultural With changing lifestyles Samsung keeps innovating More teens are getting access to phones resulting in more purchases It tailors It products for certain countries Samsung has adopted CSR Technological One of the world’s leading innovative company Constant new products Strong R&D department