Smartphone Industry in 2013: Samsung's Dilemma SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Smartphone Industry in 2013: Samsung's Dilemma
In 2013, after years of success, Samsung, a manufacturing conglomerate based in Korea but with offices, research and development divisions and factories worldwide, is established as a global powerhouse in the smartphone industry. But success has revealed opportunities and challenges that need to be addressed as the company navigates the competitive landscape. Samsung has sold more phones than rivals such as Nokia and Apple and is also a major player in the increasingly popular tablet computer market. Given the volatility of the industry and the market, in addition to the dynamic relationships between suppliers, manufacturers, technology providers, application developers and operating systems, Samsung needs to think carefully about its next competitive steps. Specifically, it has to think about one very important issue: should it continue to rely on Google's Android operating system, or should it seriously consider an in-house software ecosystem?
Swot Analysis of "Smartphone Industry in 2013: Samsung's Dilemma" written by W. Glenn Rowe, Mehdi Hossein Nejad includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Samsung Smartphone facing as an external strategic factors. Some of the topics covered in Smartphone Industry in 2013: Samsung's Dilemma case study are - Strategic Management Strategies, Mobile and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Smartphone Industry in 2013: Samsung's Dilemma casestudy better are - – wage bills are increasing, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, increasing commodity prices, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy,
competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Smartphone Industry in 2013: Samsung's Dilemma
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Smartphone Industry in 2013: Samsung's Dilemma case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Samsung Smartphone, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Samsung Smartphone operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Smartphone Industry in 2013: Samsung's Dilemma can be done for the following purposes –
1. Strategic planning using facts provided in Smartphone Industry in 2013: Samsung's Dilemma case study
2. Improving business portfolio management of Samsung Smartphone
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Samsung Smartphone
Strengths Smartphone Industry in 2013: Samsung's Dilemma | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Samsung Smartphone in Smartphone Industry in 2013: Samsung's Dilemma Harvard Business Review case study are -
Organizational Resilience of Samsung Smartphone
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Samsung Smartphone does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Samsung Smartphone is one of the most innovative firm in sector. Manager in Smartphone Industry in 2013: Samsung's Dilemma Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Smartphone Industry in 2013: Samsung's Dilemma Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Learning organization
- Samsung Smartphone is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Samsung Smartphone is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Smartphone Industry in 2013: Samsung's Dilemma Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Samsung Smartphone is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Samsung Smartphone has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Samsung Smartphone to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Samsung Smartphone in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Samsung Smartphone is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by W. Glenn Rowe, Mehdi Hossein Nejad can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to recruit top talent
– Samsung Smartphone is one of the leading recruiters in the industry. Managers in the Smartphone Industry in 2013: Samsung's Dilemma are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Strategy & Execution industry
– Smartphone Industry in 2013: Samsung's Dilemma firm has clearly differentiated products in the market place. This has enabled Samsung Smartphone to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Samsung Smartphone to invest into research and development (R&D) and innovation.
Training and development
– Samsung Smartphone has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Smartphone Industry in 2013: Samsung's Dilemma Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Highly skilled collaborators
– Samsung Smartphone has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Smartphone Industry in 2013: Samsung's Dilemma HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Smartphone Industry in 2013: Samsung's Dilemma | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Smartphone Industry in 2013: Samsung's Dilemma are -
High operating costs
– Compare to the competitors, firm in the HBR case study Smartphone Industry in 2013: Samsung's Dilemma has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Samsung Smartphone 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Samsung Smartphone has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Samsung Smartphone even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Need for greater diversity
– Samsung Smartphone has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Smartphone Industry in 2013: Samsung's Dilemma HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Samsung Smartphone has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Samsung Smartphone needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Interest costs
– Compare to the competition, Samsung Smartphone has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Low market penetration in new markets
– Outside its home market of Samsung Smartphone, firm in the HBR case study Smartphone Industry in 2013: Samsung's Dilemma needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Smartphone Industry in 2013: Samsung's Dilemma, in the dynamic environment Samsung Smartphone has struggled to respond to the nimble upstart competition. Samsung Smartphone has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Samsung Smartphone has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
No frontier risks strategy
– After analyzing the HBR case study Smartphone Industry in 2013: Samsung's Dilemma, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Skills based hiring
– The stress on hiring functional specialists at Samsung Smartphone has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Opportunities Smartphone Industry in 2013: Samsung's Dilemma | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Smartphone Industry in 2013: Samsung's Dilemma are -
Creating value in data economy
– The success of analytics program of Samsung Smartphone has opened avenues for new revenue streams for the organization in the industry. This can help Samsung Smartphone to build a more holistic ecosystem as suggested in the Smartphone Industry in 2013: Samsung's Dilemma case study. Samsung Smartphone can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Samsung Smartphone is facing challenges because of the dominance of functional experts in the organization. Smartphone Industry in 2013: Samsung's Dilemma case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Leveraging digital technologies
– Samsung Smartphone can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Buying journey improvements
– Samsung Smartphone can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Smartphone Industry in 2013: Samsung's Dilemma suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Loyalty marketing
– Samsung Smartphone has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Samsung Smartphone can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Samsung Smartphone in the consumer business. Now Samsung Smartphone can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Samsung Smartphone to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Samsung Smartphone to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Samsung Smartphone to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Samsung Smartphone can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Samsung Smartphone can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Samsung Smartphone can use these opportunities to build new business models that can help the communities that Samsung Smartphone operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Samsung Smartphone to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Threats Smartphone Industry in 2013: Samsung's Dilemma External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Smartphone Industry in 2013: Samsung's Dilemma are -
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Samsung Smartphone needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Samsung Smartphone business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Samsung Smartphone needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Samsung Smartphone can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Smartphone Industry in 2013: Samsung's Dilemma .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Samsung Smartphone with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Samsung Smartphone
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Samsung Smartphone.
Environmental challenges
– Samsung Smartphone needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Samsung Smartphone can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Samsung Smartphone in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Shortening product life cycle
– it is one of the major threat that Samsung Smartphone is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Samsung Smartphone can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Samsung Smartphone in the Strategy & Execution sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Samsung Smartphone can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Weighted SWOT Analysis of Smartphone Industry in 2013: Samsung's Dilemma Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Smartphone Industry in 2013: Samsung's Dilemma needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Smartphone Industry in 2013: Samsung's Dilemma is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Smartphone Industry in 2013: Samsung's Dilemma is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Smartphone Industry in 2013: Samsung's Dilemma is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Samsung Smartphone needs to make to build a sustainable competitive advantage.