Samsung Porter's analysis
Porter’s 5 forces analysis
Potential entrants (threat)
Samsung as mobile company is not even frightened of new entrants, because the capital needed to invest in this kind of industry is extremely high, which means that no too many investors try to gain a market share in mobile environment. BIBLIOGRAPHY \l 2058
This kind of threat is very low, with a high invest in R&D for the creation and innovation of unique products that exceed the consumer’s expectations and brand loyalty of their mobile phones.
The customers generally remain with a brand they know, is will be very difficult to get accepted if the brand is not even known, the costs of this and the development of distribution channels or infrastructure are extremely high, making it a strong barrier to break.
With the government policies, the threat is really high, as the government usually allows the entry of mobile devices of almost all known brands; the rivalry in this case with Samsung is imminent.
A threat could only be considered if a well known brand, specialized in technological products, decides to invest in the mobile industry, such as Samsung and LG did years ago.
Suppliers (bargaining power)
Samsung’s bargaining power is extremely low certainly null, because its operational suppliers are almost owned by itself, so it doesn’t need a negotiation with its own producers.
It is completely self-sufficient in terms of raw materials supplies; it is vertically integrated giving it the advantage of non-dependence to another supplier. Samsung has the technological leadership with a worldwide recognition, this means each device it manufactures its completely owned all over the supply-chain, only adding value from its own industrial sectors. BIBLIOGRAPHY \l 2058
Substitutes (threat)
The customer can substitute the Samsung’s mobile phones (Galaxy) with any mobile phone with the same functions; this includes all operating systems like Android, Microsoft, Apple, etc.; so the threat is as high
Potential entrants (threat)
Samsung as mobile company is not even frightened of new entrants, because the capital needed to invest in this kind of industry is extremely high, which means that no too many investors try to gain a market share in mobile environment. BIBLIOGRAPHY \l 2058
This kind of threat is very low, with a high invest in R&D for the creation and innovation of unique products that exceed the consumer’s expectations and brand loyalty of their mobile phones.
The customers generally remain with a brand they know, is will be very difficult to get accepted if the brand is not even known, the costs of this and the development of distribution channels or infrastructure are extremely high, making it a strong barrier to break.
With the government policies, the threat is really high, as the government usually allows the entry of mobile devices of almost all known brands; the rivalry in this case with Samsung is imminent.
A threat could only be considered if a well known brand, specialized in technological products, decides to invest in the mobile industry, such as Samsung and LG did years ago.
Suppliers (bargaining power)
Samsung’s bargaining power is extremely low certainly null, because its operational suppliers are almost owned by itself, so it doesn’t need a negotiation with its own producers.
It is completely self-sufficient in terms of raw materials supplies; it is vertically integrated giving it the advantage of non-dependence to another supplier. Samsung has the technological leadership with a worldwide recognition, this means each device it manufactures its completely owned all over the supply-chain, only adding value from its own industrial sectors. BIBLIOGRAPHY \l 2058
Substitutes (threat)
The customer can substitute the Samsung’s mobile phones (Galaxy) with any mobile phone with the same functions; this includes all operating systems like Android, Microsoft, Apple, etc.; so the threat is as high
Bibliography: El Universal. (2013, august). Smartphones noticias. Retrieved september 22, 2013, from http://www.eluniversal.com.mx/finanzas-cartera/2013/impreso/smartphones-moviles-mas-vendidos-en-orbe-104409.html phonearena.com Poder PDA. (2013, september). Precios iPhone. Retrieved september 22, 2013, from http://www.poderpda.com/plataformas/apple/precios-del-iphone-5-y-iphone-5c-sin-contrato/ Prieto-Muñoz, P Samsung. (2011). 2011 sustainability report. Retrieved august 29, 2013, from http://www.samsung.com/us/aboutsamsung/ir/corporategovernance/corporatesocialresponsibility/download/2011Environmentalnsocialreport.pdf Samsung Electronics Annual Report Tenorio, A. (2013). Moodle UP. Retrieved september 22, 2013, from Industry analysis: http://moodle.up.edu.mx/mod/resource/view.php?id=471158