Competitor Analysis- Evaluating Key Rivals and Their Impact on Samsung

Competitor Analysis- Evaluating Key Rivals and Their Impact on Samsung

Samsung is one of the biggest technological conglomerates in the world, and it is headquartered in South Korea. It was founded by Lee Byung-Chul in 1938 and is currently headed by Lee Kun-hee as the chairman. Some of its products include medical equipment, home appliances, electronic components, consumer electronics, automotive, and apparel, among others. Some of its services include communication technology, retail, financial services, and advertising, among others (Madani et al., 2014). The North Korean-based technological giant is famous for its phone products, computers, televisions, and home appliances like fridges. The technological field is constantly changing and improving, creating opportunities for new companies to present their products to people. The new or improved technological companies provide competition to Samsung by providing substitute products, creating an intense rivalry, and reducing the company’s market dominancy. Samsung faces major competition from companies like Apple, Huawei, and LG.

Apple

Founded in 1976, Apple is one of Samsung’s major competitors. Apple has a strong brand image and is considered one of (if not the most) valuable technological brands in the world. The company employs its unique IOS operating system on its phone products and Mac on their computers, which attracts a large number of customers (Montgomerie & Roscoe, 2013). Apple’s top technology is one of its strengths, as shown in its ability to innovate unique products like iPhones and iPads. These qualities of Apple threaten Samsung services since customers may prefer products that are considered ‘high-class’ and unique.

Most Apple products are high-priced and incompatible with other widely used software like Windows and Android, which reduces its market coverage. This presents an opportunity for Samsung to expand its market by manufacturing products that are compatible and affordable. Apple is a major competitor to Samsung in televisions, phones, and computer product lines, which greatly reduces potential Samsung customers.

Huawei

Huawei is a Chinese-based multinational technology company. Huawei is an established brand that serves over 3 billion people, and it poses a threat to Samsung’s market dominance. Huawei also uses Android and Windows operating systems, limiting the number of customers who purchase Samsung phones and computers. Huawei poses a threat to Samsung because of its technological innovations. For instance, Huawei has been the leading company in the smartphone manufacturing industry to adopt the 5G network (Huang, 2019). This threatens Samsung’s market dominance since most clients would prefer to use the more technologically advanced Huawei phones. Huawei focuses on lower-priced goods, unlike Samsung, which gives them a competitive advantage.

LG

LG is a South Korean-based electronic company founded in 1995. The company is popular for its production of quality phones, televisions, and home appliances like fridges and microwaves. It produces the same products as Samsung, which lowers its ability to generate dominance in the technological market (Madani et al., 2014). LG also has a strong brand portfolio since most of its products are of high quality and are trusted by customers. This increases LG’s customer loyalty, hence weakening Samsung’s efforts to establish market dominance. LG’s wide range of products also threatens Samsung’s market share since they sell all high-quality products sold by Samsung.

Competition is normal in business, especially in the technological field, since technological advancements give rise to new ideas and companies that customers love. Samsung faces threats and competition from companies like Apple, LG, and Huawei. To minimize the effects of the available threats, Samsung should create unique signature products to gain a competitive advantage in the technological and global segments.

References

Huang, W. (2019). Huawei’s Competition Strategy: A Financial Perspective. Built On Value, 31-82. https://doi.org/10.1007/978-981-13-7507-1_2

Madani, F., Abdulai, M., Ha, J., & Koosawangsri, R. (2014). Samsung’s Innovation Strategy in Smart Phones Market. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3023595

Montgomerie, J., & Roscoe, S. (2013). Owning the consumer—Getting to the core of the Apple business model. Accounting Forum, 37(4), 290-299. https://doi.org/10.1016/

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This week, the readings/video focused on Scanning the External Environment.  For this assignment, I would like you to identify a company (not mentioned in the text) that interests you in learning more about.

Competitor Analysis- Evaluating Key Rivals and Their Impact on Samsung

Once you have identified a company, I would like you to write a 2-page double-spaced “competitor analysis.” To accomplish this, you should identify 3-5 competitors and, for each, identify a few strengths, weaknesses, or threats that this competitor may pose to the company you chose.