PESTLE Analysis of Samsung

Samsung has been one of the most influential technology brand in the world having an enormous army of happy consumers. The Company solely relies on its strengths and the will power to satisfy the customers with technological innovation. This article will be bisecting the core of Samsung’s influence in the world in terms of PESTLE Analysis.

PESTLE Analysis of Samsung

Political Factors Affecting Samsung

Samsung has been a prominent tech giant run by the famous South Korean family. It has been operating in almost every country. But they have been facing some political upholds in their mother country. For instance, the Acting Chairman of Samsung, Lee Jae-yong was accused of several charges by the special crime investigation that was closely monitoring Samsung in the late 2016. (1) Later in the year 2017, the Court of South Korea conducted a series of trails on the tech giant and found the Acting Chairman guilty of bribing the former ruling party for personal benefits. The Acting Chairman was sentenced for a 5 year imprisonment. Later the High Court has reduced the sentence and now the Acting Chairman is free. But the company is still attending trails in the High Court. This has been a threat for the company. But as we speak, Samsung is still rock solid to its grounds.

Economic Factors Important to Samsung

Samsung is best known for being the most far-fetched brands in terms of seeking opportunities in markets with great potential. But this has been proven to be both the sides of the coin for Samsung. As they have introduced many ground breaking techs in the world, there has been some failures which led the company to be bamboozled in the international market. This happened when the insanely famous blast complaints of one of their high end phone. Samsung Galaxy Fold was a huge disaster. It was not ready to hit the market as the reviews were very backstabbing and depressing. (2) This had the company face great decrease on the economic standards and created a window for the rivals to cash in for the mistakes that Samsung made. Samsung still is a ‘rush in for the treat’ centered company which tries to bag in almost everything in the market.

Social/Sociocultural Factors in Samsung’s Industry Environment

Samsung has been a Global brand, a trustworthy name for many happy faces around the globe. But still is South Korea oriented. Because it is run by the Yong family of South Korea. But that did not stop Samsung for entering and successfully adapting the market of other prominent countries. Samsung is a Pro when it comes to scan or detect the consumer tastes in certain regions of the globe. They have been quick to analyze, even quicker to execute according to that. This has been the biggest power punch for Samsung gaining this must acceptance all over the world. They operates according to the taste and sociocultural aspects of their global customers. So, as a result, the products which are available in India can be found relevant to its culture and the taste of the Indian consumers. You won’t find similar products in other parts of the world.

Technological Factors in Samsung’s Business Environment

Samsung is considered as one of the biggest Tech Giant in this planet. They have been the pioneers in many ground breaking technologies. They operate in ‘White Goods’ which makes them direct influencers to its customers. People are using Samsung products and thanks to the amazing services and after sales support of Samsung, they are having the best experience of it. But Samsung had some bumps on the road as they were accused of duplication of patents from their Arch Rivals, Apple. This led the company to be criticized brutally in the international arena. Even Apple dragged them to the court. After some fierce fighting in the court room, Apple was granted a heavy compensation and Samsung was forced to follow the strict restrictions from then. (4) Despite the bumps and hurdles, Samsung has been very aggressive in innovations and technological advancements. This has been the main Mantra behind the success.

Legal Factors Affecting of Samsung

As I mentioned previously, Samsung has not been running on butter if Legal issues are concerned. Samsung has been on the headlines for quite a few times for various allegations and controversies. Facing a series of penalties enforced by the federal laws, getting sued for literally imitating or copying the patents of Apple, Giving away compensations to Arch Rivals, facing corruption charges in their mother country, the Acting Chairman was put behind the bars; sentenced a five year imprisonment, all of these are the hiccups that Samsung had to face in the recent years. But still Samsung has managed to pull off themselves from the dirt as the roots of the very company is very strong. The public support has also played a major role for Samsung in getting moral and strategic support. This cannot be denied at any cost and the Company does appreciate it with distinct gratitude.

Environmental Factors Affecting Samsung

Samsung has been very active when it comes to the reduction of the greenhouse gasses of the atmosphere. As we very well know that the world is facing the biggest threat of extinction due to mass pollution of the environment resources. After the global Industrialization, the pollution has gone up to an alarming rate which is eventually increasing the global warming. Big companies have acknowledged this matter and they have put their steps forward to prevent Global Warming. Samsung has not been an exception. (5) Samsung has decided to go green as they have taken initiatives like Kyoto Protocol. Kyoto Protocol is brought up to reduce the greenhouse gas emissions. Samsung has also been engaging in environmentally friendly endeavors which will help in the reduction of greenhouse effect upon the world. For this steps and initiative, Samsung has been the brightest name in the tech world for creating a sustainable and environment friendly business model.

Recommendations for Samsung

Samsung has been the biggest name in the tech world as they have almost influence the entire population of the world. Bring the tech to the lives of the people has been the prime goal of the company. As we speak, even the mightiest has to face some failure in their life. But, Samsung always rose and rose high.

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Resource Links

• https://www.digitaltrends.com/mobile/samsung-group-offices-raided-korea-political-scandal-news/
• https://asia.nikkei.com/Opinion/Samsung-a-costly-rush-to-market
• https://www.nytimes.com/2018/05/24/business/apple-samsung-patent-trial.html
• https://news.samsung.com/us/samsung-global-green-management-initiatives-journey-sustainable-future/
• https://news.samsung.com/us/samsung-global-green-management-initiatives-journey-sustainable-future/