Want to Know the Secrets Behind the Success of Samsung? Find with Pestle Analysis.
There is no exact formula for achieving success, but there is a calculation for being innovative. It is given by the famous philosopher, William Brody. One of the companies working on this computation of innovation is the tech giant - Samsung. Founded in 1938 and rooted in Seoul, the company is recognised as one of the leading conglomerates worldwide. It started as a small trading company and gradually established itself in the tech market. With Samsung case study pestle analysis, you can delve deeper into the factors responsible for where the company stands today.
Brief Pestle Analysis of Samsung
Political Factors
The political environment of the region affects the pricing policy of a product. It primarily includes taxes, trade restrictions, tariffs, and so on. Samsung has focused on making its political environment conducive by being flexible. It has abided by different laws in all countries and offered a diverse range of products. The company has faced a lot of pressure in its home country due to tensions between North Korea and South Korea. Otherwise, it has been running its operations in more than 70 countries smoothly. Samsung has diversified its presence in various industries, taking advantage of political factors.
Economic Factors
Economic factors consist of inflation, unemployment, the exchange rate, and studying the financial environment. The tech market is quite saturated, especially in developed nations. That is why Samsung has established itself in emerging markets, taking advantage of the economic freedom in these growing nations. It has focused on offering products of different ranges there and has maintained a position as a market leader. The company has kept its manufacturing cost low by producing its products in Korea. Financially, Samsung has reinvested its profit in technology and innovation. Overall, the company has not let any economic factor become a hurdle.
Social Factors
Social factors include all the lifestyle factors related to the individual. Consumer attitudes, habits, education level, disposable income, and age distribution are a few examples of them. Though Samsung operates primarily in Korea, it has adapted well to the sociocultural factors of other nations. It has worked on global and local strategies to enter the markets of developing countries It has taken care of the consumer's preferences and queries. The data analysis, research, and development have helped the company to reach new heights.
Technological Factors
In this era of digitalisation, the shelf life of technology is becoming minimal with every passing day. Continuous innovation is the only way to survive in the market. Overall, Samsung has always stayed ahead in the game of technology as compared to its competitors. It has been a tech leader globally with its wide range of innovative products and services. The company has a strong foot in research. It has aided in the development of new phones, tablets, and other electronic devices. It has also continuously strived toward making better-quality products. For example, they have addressed the issue of heating in their batteries after lots of complaints.
Legal Factors
Legal factors play a significant role in maintaining the brand image of the company. The financial regulations and policy considerations are covered under these factors. Samsung has been blamed once or twice for imitating designs in its products, but it has resolved the legal issues. And it is currently clean against all of them. It has taken care of all its code of conduct in different regions, and diligently followed all the policies. It has also made sure that all its staff members and suppliers comply with the required laws.
Environmental Factors
The need to use eco-friendly tech products is on the rise. Worldwide, Samsung has organised many environmental programmes in the last few years. Samsung has taken major steps to make its packaging more sustainable than its immediate competitors. It is continuously working towards making green chips a successful step. Their major environmental concerns are focused on product development processes that are more sustainable.
With Samsung case study pestle analysis, now you must be well-equipped with the company’s workings. Continuous innovation and the best technology have always remained the unique selling points of the company. If you are looking for a more detailed write-up, you can approach professional experts. It is easy to reach them.
