Feasibility Report Guide Essay

Intro Samsung Electronics is based in Seoul, South Korea and operates in 65 countries worldwide with 157,000 people working for the corporation. Samsung Electronics products include semiconductors, hard drives, digital displays, home electronics, smooth phones, and others. All Samsung products lay d admit the same bank bill when the spin is turned on, so that clients can easily get used to them and this tone is mentioned when Samsung products are being advertised as well. Smarter Life theme was inclosed latterly in Samsung that is based on the innovative approach in improving the comp whatevers current products, and introducing new products to the market. For instance, Android-based Samsung Galaxy Player 50 is to be introduced soon, containing a puke of innovative features the product is expected to variegate the current media players market condition significantlySWOT SamsungSamsung Strength as Becoming a world known discoloration (over 200 countries) R&D (investing on s cientific talents) Innovation (new digital technology) Customization (new products every year) new-fashioned allocation of marketing resources (M-Net). Samsung enjoys the widest range of product portfolio which includes Mobile phones Tablet TV/Audio/Video,Camera,camcorder, Home appliance Pcs,Laptop, peripherals, printer, memory cards and head diversified and differentiated product line toother accessories meet changing customer needs .Samsung electronics has 4business areas to cover customer electronics needs. Practice the good attractionshipBrand value through with(predicate) multiple sponsorships High market share that continues to ripeningeory (Mobile Phones and Design with an attractive styling that interestsmemory chip)and liquid crystal display the customer, as the result of the development of Samsungs new products that involve group of product designers. product variation Samsungs Opportunities unique products and existing products introduce userwith variety friendly m obile phones could launch sub brandsat affordable price. to the company. Samsungs Opportunities O open more(prenominal) stores Newmore customers O Launch creative products Technology, in advance(p) Products, and Creative Solutions.WeaknessAver age pr i ces of pr oduct s seem t o bea l ow qual i t y pr oduct s-Not pr o-act i ve intro oduci ng a newpr oduct s. low monetary value competitors in China2. legal war between Samsung and its competitors much(prenominal) as Apple & nokia.ThreadsLow-cost competitors Samsung is facing threats from many other low cost companies in China. While Samsung was busy competing with others, Huawei a company which focus on low cost products is now a leader in fixed-line profits, mobile-telecommunications networks, and budget smart phones. merchandise share- Samsung Mobile eyeing 60% marketshare in India. The Indian mobile handset market is estimated to reach 251 million units in 2013, an increase of 13.5% over this year. The threat of potential new entrants (Low)-New entrants would have issues with overcoming patent issues if they didnt plan on investing in their own R&D to create a unique product. These things together would engage a new entrant to establish a emulous brand name while achieving economies of scale via investments in a supply filament process and developing a distribution infrastructure to re main competitive. The cost of accomplishing these things make a very strong barrier to entry. The threat of substitutes (High)Market share-Holding a revenue market share of 20.6%, Vodafone India is the countrys atomic number 42 braggart(a)st telecom operator by revenue share after Bharti.Strengths* diversify geographical portfolio with strong mobile telecommunications operations in Europe, the Middle East, Africa, Asia peaceable and to someextent the US * Network infrastructure * Leading front line in emerging markets such as IndiaWeaknesses* Little focus of impact of mobile on climate. * Negative return on assets ( ROA) under realize key competitors like AT&T, Airtel, Uninor etc * US business not just about as strong as European/rest of the world operations * 80% of its business is generated in Europe.Opportunities* Improve accessibility to wide range of customers* Focus on cost reductions improving returns* Majority stake in Hutchison Essar in India* Research and development of new mobile technologiesThreats* Highly competitive market* Still lags behind major competitors in the India and other countries.* exceedingly highPorters five forcesBuyer powerThe talk terms power of purchasers in the telecommunications industry is high delinquent to the cutthroat controversy and lack of differentiated products. The strong buyer power effectively reduces the cost prices in the industry though not to the level of its competitors. As such, Vodafone result keep making reasonable profits compared to its competitors.Supplier powerVodafones suppliers have a high bargaining power since the company ope rates with greater margins compared to its competitors. As a leader in the market, the market share is large meaning that it can easily absorb any price increments from the suppliers more than its competitors can. As such, Vodafone can easily maintain low prices from its suppliers and continue making profits (MarketLine, 2012, p. 9).Threat of substitutesVodafone faces a considerable threat for products and serve. The landline and CDMA serve are spendthrift declining while broadband serve are fast change state common. Video conferencing, VOPI such as Skype, Google Talk and Yahoo Messenger, telecommunicate and friendly networking have emerged as substitutes to mobile services. However, due to the strong buyer power and effective economies of scale, Vodafone does not need to pass down the be attributed to substitution to consumers (MarketLine, 2012, p. 8).Threat of entrantsThe threat of fresh market entrants is low because of barriers to entry. Companies deprivation to enter t he market must pay huge licensing fees coupled by spectrum availability and regulatory issues attached to the industry. Similarly, the costs of setting up network infrastructure are high, and the rapidly changing technology make is knotty for new entrants to cope. However, Vodafone can cope with this by maintaining high-level efficiency of its services to unrivaled heights.Industry rivalryVodafone faces extremely high rivalry from its competitors due to the low call rate prices charged by its closest competitors. Similarly, the competitors constantly provide innovative products and services to the customers, which mean that Vodafone has to provide the same to its customers. Vodafone infestation Analysis. PEST analysis is a strategic tool used to psychoanalyze external factors affecting the business and stands for political, economical social and technological factors. The main political factors affecting Vodafone include EU Roaming Regulation that aims to decrease charges for mob ile phone usages Economical factors also affect Vodafone main of which are the growth of GDP and the level of inflation rate within markets where the company operates. in general any external economic changes affecting Vodafone can be classified as external economic factors.There is a range of social factors as well that affect Vodafone. For instance, changing work patterns that are becoming very popular make people work from home increasingly relying in communication technologies. Also, there are issues like people personnel casualty green and ageing population in developed countries that are release to affect Vodafone directly or indirectly. The impact of technological factors on Vodafone is without any doubt due to the nature of the telecommunications industry. Specifically, a technological innovation in communications and emergence of alternative means of communication such as online chatting, and Yahoo Messenger are going to affect Vodafone strategy in a way that the compan y is left with a choice of each to form strategic alliances with above companies or to commit to considerable arrive of research and development in order to introduce innovative products and services to the market.