Porter's 5 forces Samsung, Vivo, new technologies, innovations, electronics, high-tech, Byung Chull Lee, food products, electronics business, Japanese company Sanyo Electronic, Apple, LG, IT, telecommunications
When it comes to new technologies, innovations are very common. It will, therefore, be necessary to constantly innovate to be a leader in the sector in which we operate because innovation alone can create a difference between a company and the rest of its sector. This is the type of industry in which Samsung operates. This company is very diversified, being in electronic technology, digital, etc.
[...] These are all over the world, so the company has the flexibility to change a supplier if it deems it necessary. As Samsung is the main source of revenue for its suppliers it, therefore, imposes exclusivity on them. They are only allowed to supply the Samsung brand. The latter sets up rules that suppliers are expected to respect. It also organizes follow-ups to see if suppliers are respecting their commitments. Indeed, in its supply chain, Samsung requires its suppliers to be certified ‘Eco-Partners'. [...]
[...] Threats of Substitute Products Substitute products are a greater or lesser threat to the company Samsung. The latter has several competitors in the sector, namely Motorola, Apple or Sony. Apart from these, others also exist across the world. Samsung customers are, therefore, exposed to several other brands without forgetting that the cost of switching from one brand to another is very low. However, certain factors such as Samsung's brand image and the quality of its products allow it to reduce this threat somewhat. The market is full of substitute products from Samsung, in all categories. [...]
[...] Also, using advertising could allow Samsung to gain more market share. C. Bargaining Power of Clients In the 21st century, access to good quality information is easy, which increasingly strengthens the bargaining power of clients. For Samsung, the bargaining power of customers is higher or lower. Indeed, users can leave Samsung and join one of its competitors with ease. Nowadays, it has become possible to see what competing brands are doing, for example, by looking for the opinions of other users on online reviews. [...]
[...] Market shares are constantly shared between Samsung and other companies like Apple, LG, Toshiba, Nokia, Motorola, etc. Indeed, during the third quarter of 2020, for example, an article published by the analysis firm ‘Canalys' reports that Xiaomi had entered the top 3 smartphone manufacturers in the world. It was a first for Xiaomi that took over from Apple. Apart from this performance by Xiaomi, Samsung aside was able to dislodge Huawei in the first place. Samsung has, therefore, become the market share leader for Smartphones in the world. [...]
[...] Synthesis The table below summarises the 5 strengths of Porter from the company Samsung. Porter Force Intensity of Threat Threats from new entrants Low Threats of substitute products Moderate Bargaining power of clients Moderate Bargaining power of suppliers Low Intra-sector competition High III. Conclusion and Strategic Recommendations From all of the above, we can say that Samsung is an internationally renowned company. Mentioning this brand refers to quality, efficiency, luxury and many other qualifiers. It is ranked among the leaders in its sector today. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
