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Samsung Galaxy Note 7

Desember 09, 2016

Nama : M. Supriadi Abdullah Asa
Nim : L1B015021
Mata Kuliah : Strategi Komunikasi

Alanisis SWOT perusahaan Samsung berkaitan dengan permasalahan produk Samsung

Galaxy Note 7

Samsung Galaxy Note 7

Beberapa waktu yang lalu perusahaan Samsung mengeluarkan produk handphone

terbarunya yaitu Samsung Galaxy Note 7 yang merupakan seri terbaru dari Samsung Galaxy
Note, setelah produk sebelumnya Samsung Galaxy Note 5.
Akan tetapi dalam waktu singkat semenjak di realeasnya produk Samsung Galaxy Note
7, terdapat banyak masalah dan keluhan yang muncul dari para konsumen yang telah membeli
produk ini, yang sering terjadi adalah meledaknya Samsung Galaxy Note 7 saat di charger
ataupun tanpa sebab.
Hal ini menyebabkan produk Samsung Galaxy Note 7 dilarang peredarannya dibeberapa
negara, hingga pelarangan membawa Samsung Galaxy Note 7 oleh berbagai maskapai
penerbangan. Sehingga dari permasalahan tersebut dibutuhkan stategi untuk menyelesaikan
masalah tersebut dengan menggunakan alanisis SWOT sebagai berikut :
1. STRENGTH (Kekuatan)
Samsung adalah produsen liquid crystal display (LCD) panel, ponsel dan smartphone paling
sukses di dunia saat ini.
Samsung melakukan penelitian dan inovasi pada desain maupun kemampuan dari produknya.
Samsung telah lama berkerja sama dengan penjual di Amerika dan Eropa yang menyediakan
saluran penjualan yang stabil untuk produk-produknya.
2. WEAKNESS (Kelemahan)
Samsung belum bisa menyamai kemampuan pemasaran dari Apple untuk smartphone.
Perangkat Samsung masih menggunakan sistem operasi Android dari Google.
Kualitas dari produk yang tidak diutamakan, karena lebih mengutamakan jumlah produksi.
3. OPPORTUNITY (Peluang)
Tumbuhnya pasar untuk smartphone di negara berkembang seperti Afrika dan India.
Kebutuhan teknologi baru dan smartphone yang tinggi.
Tumbuhnya media online sebagai saluran penjualan.
4. TREATH (Ancaman)
Munculnya Apple sebagai produsen smartphone dengan kualitas yang baik dan canggih.
Munculnya pesaing baru seperti Xiaomi dan Huawei.
Menurunnya pendapatan dari konsumen yang berakibat turunnya daya beli.

Sehingga dengan mengetahui SWOT dari perusahaan, maka dapat digunakan untuk
menyelesaikan permasalahan dari produk Samsung Galaxy Note 7, dengan menarik kembali
produk yang bermasalah dan mengganti dengan produk lain dengan tetap bekerja sama dengan
penjual di Amerika dan Eropa untuk memasarkan produknya. Serta dalam mengganti produknya
mengutamakan kualitas agar tidak terjadi permasalahn yang sama di kemudian hari.

PESTLE and SWOT analysis of Samsung mobile

Analyse the internal and external environment of Samsung mobile using SWOT & PESTLE

PESTLE & SWOT analysis of Samsung

Samsung Inc. is a Korean electronics company currently engaged in the design, manufacture and
marketing of mobile communication and media devices, electronics, computers and portable digital
music players, as well as related software, accessories and third-party applications. The company
reported revenue of US$182,595 million during the fiscal year 2015 (Samsung 2016).

2.0 Samsungs current performance 2016-2017

The companys global turnover totalled US$182,595 million for the fiscal year ending in 2015
(Samsung 2016). According to Mintel (2016), Samsung is still the worlds number one smartphone
vendor and together with Apple dominate the smartphone market, accounting for over 62% of this
market. Despite record dominance of this market, there are signs Samsung (and Apple included) are
beginning to be squeezed by emerging mobile phone brands especially from China that are gaining
ground (Campbell 2016).

Further, Samsungs dominance has been especially weakened by the high profile recall of the
Galaxy Note 7 in 2016, at least in the short-term. This occurred after some units of the phones had
batteries with a defect that caused them to produce excessive heat, leading to fires and explosions.
On 2 August 2016, Samsung replaced the recalled units of the phones with a new version the
Galaxy Note7 smartphone, which went on sale on 19 August 2016. However, in early September
2016, Samsung suspended sales of this phone too and announced another informal recall on 10
October 2016. Not only was the initial recall a stumble for Samsung, the second recall further led to
their discontinuation after discovering that the new version of the Galaxy Note 7 also had the battery
defect (Campbell 2016).

As expected, the Galaxy Note 7 debacle not only obliterated 98% of Samsung's Mobile division
operating profits in 2016, but it also halted the companys momentum in the highly hit-driven
smartphone business especially when one considers the Note series led Samsungs high-end phone
business, which is also the most profitable part of its mobile division (Fried 2016).

Using PESTLE, SWOT, Samsungs BCG matrix and Porters Five Forces framework, the report will
examine how Samsung can take advantage of its core strengths in innovation, and seize on
opportunities in the current global market created by a competitive mobile phone and tablet
environment as well as faltering rivals like Apple to benefit.

3.0 Samsung's PESTLE analysis 2016-2017

PESTLE is used in strategy to analyse the macro environment and identify how future trends in the
political, economic, social, technological, environmental and legal environments might impact
individual organisations within an industry. Firms then study the key drivers of change behind the
PESTEL factors. This is only a starting point as often, other frameworks such as Porters Five Forces
and SWOT will also be used in conjunction to help Samsung utilise internal core competencies so as
to take advantage of opportunities while neutralising threats.

3.1 Political factors

3.1.1 The Brexit effect

In the UK, Samsung seemed not to have been impacted much by the brexit effect, atleast for its
mobile phone division whose prices have stayed the same. Talk of moving its London-based
European headquarters following Brexit also seemed to have been unfounded at least in the short-
term (Ghosh 2016). Nevertheless, the implications to leave the EU are many, not least the fact that it
is already creating Brexit inflation as general prices continue to escalate, in part due to a weakening
pound which has fallen by 18.5% against the US dollar, a situation that will only get worse if Britain
does leave the EU before 2020 (Davies 2017). In terms of Brexit effects, Rival Apple has already
raised prices on its UK App Store by almost 25%. In October 2016, Apple also marked the launch of
all new Macs with a 20% price rise to reflect the sharp depreciation of the pound following Junes
vote Brexit vote (Hern 2016; 2017).

3.1.2 The South Korea bribery scandal

In South Korea, Samsung has also been caught up in a bribery political scandal involving president
Park Geun-Hye which led to her resignation as well as the arrest and trial of Samsungs heir-
apparent and co-chairman, Lee Jae-yong (Mozur 2017; BBC 2016). This is unfortunately coming
immediately after the Note 7 debacle and at a time when the company is facing serious competition
across many of its core businesses.

3.2 Economic factors

The growing volatility in some economies, notably China, as well as in the tuemoil in currency and
financial markets in key counties meant sales fell in some quarters in 2016 (Samsung 2016).

3.3 Social factors

According to Mintel (2016), there is a behavioural shift in the way customers are using smartphones
that is progressively causing tablets to lose their Unique Selling Point (USP). The rise of phablets
(smartphones bigger than 5 inches) has meant that phablet owners were more inclined to use their
phones to perform more complex or time-consuming tasks, such as online shopping, gaming or
watching video content. This has led to cannibalisation where phablets are quickly taking over tablet
activity, and explains why tablet sales (for both Samsung and Apple) have been declining in the last
2 years for all the major phone companies.

3.4 Technological factors

The decelerating development and slowdown of smartphone penetration is continuing to open up

more competition forcing traditional players in the smartphone market to come up with new
innovations and upgrades that can increase or sustain revenues as evidenced by the emergence of
virtual reality and 360-degree videos. Smartphone-based virtual reality headsets, and wireless
charging technology may prove to be the next battleground of innovation as rivals hit the market with
their own solutions and features hoping to differentiate themselves (Mintel 2016).

The good thing is that Samsung is ahead of its rivals in many of the new developments in
smartphone technology as evidenced by the fact it was the first smartphone maker to eliminate
power cords in favour of wireless charging capabilities in its devices hence beating rivals such as
Apple in terms of more features, versatility and adaptability (Mintel 2016).

3.5 Environmental factors

Following the Galaxy Note debacle, Greenpeace has been blasting Samsung for failing to detail how
it will dispose of the millions of Note 7 smartphones it's recalled around the world. If the South
Korean tech company chooses to dump them, it would create the equivalent of about 28 shipping
containers of toxic waste, according to the environmental advocacy group (Pham 2016). With more
than 4.3 million Galaxy Note 7 phones produced, that amount of phones would contain 20 metric
tons of cobalt, one metric ton of tungsten, about 100 kilos of gold and more than 1,000 kilos of silver
(Pham 2016).

Greenpeace has urged Samsung to recycle as much of the doomed smartphone parts as possible.
Its report highlights the heavy human and environmental costs associated with mining and producing
the precious metals and other materials contained in the phones (Pham 2016).

3.6 Legal factors

Samsung and Apple are still embroiled in a smartphone patent war that has been on-going since
the spring of 2011, when Apple first began litigating against Samsung in patent infringement suits. By
July 2012, Apple and Samsung were litigating 50 on-going lawsuits in more than ten countries with
billions of dollars in damages claimed between them. While Apple has won many rulings in its favour
in countries like the U.S, Germany and Austalia, Samsung has also won rulings in South Korea,
Japan, and the UK with the latest one in December 2016 where Samsung finally won its appeal in
the US Supreme court to reverse a decision to award nearly $400million to Apple (Albanesius 2016).

4.0 Samsung's Five Forces Analysis



A SWOT provides a reality check on Samsungs internal and external situations and its past performance (see
figure 1 below)
6.0 Samsung's BCG matrix


After an analysis of the key drivers of change in Samsungs industry using PESTLE, we were able to
see that the current macro environment has flashpoints that may define the competitive landscape in
2017. One of them was the political scandal in South Korea that has dragged the companys share
price and reputation down the drain at a time when the company is facing serious competition across
many of its core businesses.

This South Korea political scandal as already stated together with Brexit and other factors such as new
technological, social and legal developments means Samsung may well face more competitive pressures and
battles for dominance regarding the smartphone market. How Samsung handles the Galaxy Note 7 debacle and
emerging rivals like Huawei and Xiaomi, will be determined by how it takes advantage of current
opportunities (see SWOT) while neutralising threats which were looked at using SWOT. Of critical importance
is diversifying away from an over reliance on the Galaxy series as the ultimate cash cow because sooner or
later, as Samsungs BCG matrix shows, cash cows do eventually turn into dogs.


Albanesius, Chloe (2011) Every Place Samsung and Apple Are Suing Each Other PC
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Campbell, M (2016) Samsung still No. 1 smartphone vendor, but Note 7 knocked marketshare
back to 2014 Apple Insider, [online] at
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[Accessed 3 Mar 2017]

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Hern, Alex (2017) Apple increases App Store prices by 25% following Brexit vote The
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Hern, Alex (2016) Brexit hits Apple Mac customers hard as prices rise by up to 500 The
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Mintel (2016) Mobile phones UK 2016 Mintel market intelligence: London

Mintel (2016) Digital trends winter UK 2016 Mintel market intelligence: London

Mozur, Paul (2017) Political Crisis Engulfs Samsung, a Firm Tied to South Koreas
Success New York Times [Online] at
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Pham, Sherisse (2016) The next victim of Samsung's Note 7 fiasco could be the environment
[Online] at
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Samsung (2016) Annual reports [Online] at
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