marketing efforts. The socio cultural trends are favorable for Samsung and the brand is investing in the smart phone technology. Especially, its Galaxy series has been quite famous and popular. The demand for large screen smart phones and mobile gadgets has grown and Samsung’s smart phones and tablets have acquired quiet high popularity in most markets including the Asian markets. In this way, socio cultural factors can have both direct and indirect impact on businesses and their profitability. 6.4 Technological : Technology has come to play and increasingly important role in the context of business whether for the technological or the other brands. In the 21st century from operations to marketing and customer service, technology affects quality in every area. Every brand is in a race to adopt technology for attracting and retaining customers and to cast a better impression than the competitors. Samsung is itself a technology company that makes electronics, smart phones and other technological equipment including medical equipment. Apart from that it also makes use of digital technology for marketing and better customer service. The role of technology in its business is very big and the brand also makes heavy investment in research and development. In this way, you can see that technology has helped Samsung overcome competitive pressure and maintain its position in the market effectively. 18
6.5 Environmental : Sustainability is not just a trend but has emerged as key focus area for businesses which are not just working to save energy and minimize their carbon footprint but also to protect the environment. Apart from managing and reducing energy consumption, the brand has also focused on managing water resources risks. The brand has also enforced a chemical substance management policy. Samsung has also enforced a pollutant management program. In several other areas too, it has taken firm steps in the direction of sustainability. 6.6 Legal : Legal risks also abound for Samsung and these risks can be quite big and severe. From employment to environment and tax related laws, there are many that Samsung is required to follow and which can affect its profitability. Apart from its own operations, Samsung also ensures that its suppliers also abide to law and remain compliant in labor, operations and the other areas. Legal tussles can be quite costly and fine in any area can range in millions and therefore cause huge losses for any business. Samsung has framed and enforced rules and regulations to ensure that its staff remains compliant and no laws area violated at the workplace. In this way, you can see law has a major and direct impact on businesses and compliance risks can be highly costly. . 7.0 Porter’s Five Forces Analysis of Samsung: Porter’s Five Forces analytical framework developed by Michael Porter (1979) represents five individual forces that shape the overall extent of competition in the industry. Samsung Porter’s Five Forces are represented bellow.
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- Fall '13
- Samsung Electronics, Samsung Group