Profile
Samsung Electronics Company, a main subsidiary of the Samsung Group, is considered one of the worldwide leading consumer electronics brands. Samsung Electronics’ head office is located in Seoul, South Korea. It operates in the Americas, Europe and Asia. The company manufactures and distributes consumer electronics, communication products, semiconductor products and home appliances. Its major products include home appliances, mobile devices, printers, LCD monitors and semiconductors (Datamonitor, 2011).
Samsung’s sales revenue consistently increased from 121,294 billion won ($108 billion USD) in 2008 to 154,630 billion won ($138 billion USD) in 2010, and its net profit nearly tripled during the same period, from 5,526 billion won ($4.95 billion USD) to 16,147 billion won ($14.36 billion USD). As related to geography, in 2010, America accounted for 28% of the company’s turnover, followed by Europe (23%), Korea (17%), Asia (16%) and China (16%). Although the company’s largest market in sales changed from Europe to America during the period from 2008 to 2010, the overall sales revenue in each area increased during the same period (Samsung Electronics Company website, 2012).
In the third quarter of 2011, Samsung Electronics accounted for 15.5% of the global monitor market share, followed by Dell, Inc. (12.5%) (Koreaherald, 2011). Other key competitors in the semiconductor industry are Hynix Semiconductor Inc. and Intel Corporation. In addition, Apple Inc. is by far the company’s biggest rival in the smartphone industry (Datamonitor, 2011).

Origins and Key Development
Byung Chul Lee, the founder of the Samsung Group, established Samsung Electronics Company in 1969. The company’s first product was a black and white television. In the 1970s, Samsung produced a variety of consumer electronics by expanding new product lines and setting up new manufacturing plants. In 1978, it began to expand its business worldwide by founding a marketing subsidiary in the United States, followed by one in Germany in 1982 (Samsung Electronics Company website, 2012).
Furthermore, it established its first overseas factory in Portugal in 1982, followed by another in England in 1986 (Datamonitor, 2011). Kun Hee Lee, the third son of the founder, was appointed by his father as the new chairman of the Samsung Group in 1987 (Economist, 2011a). In the 1990s, Samsung Group further increased its international presence through the establishment of a manufacturing factory in Czechoslovakia in 1992. After the 2000s, the company focused on making advances in digital technology, creating competitive products, and promoting constant innovation by forming an alliance with a number of companies, such as Yahoo, IBM, Sony, and Time Warner Cable. In 2008, it became one of the sponsors for the Beijing Olympic Games (Datamonitor, 2011).

SWOT Analysis
There are two main strengths of Samsung Electronics. First, it has a robust market position reinforced by strong brand equity in most of the segments where it is engaged. It is among the world’s leading companies in the smartphone, monitor, television, and memory chip markets. The company gained over 20% worldwide market share in five areas. These include the four-door refrigerator market (39.5%), LCD panel market (25.7%), television market (22.1%), laser printer market (20.6%), and mobile phone industry (20.6%). Moreover, it has consistently built strong brand equity for many years (Datamonitor, 2011). Fortune magazine (2011) ranked the company as the 38nd World’s Most Admired Company and second in the global electronics industry. Its robust market position in combination with strong brand equity facilitates its competitiveness to expand its business (Datamonitor, 2011).
Second, its portfolio of products is diversified. The company produces a significant number of products in different segments, such as televisions, audio-visual devices, MP3 players, computers, air conditioners, washers, vacuum cleaners, and integrated circuits. This indicates that the market share of the company across diverse markets is enhanced. In addition, it means that various sources of income are secured. It will also give an opportunity to diversify when some of the markets are depressed (Datamonitor, 2011).
The weakness of Samsung Electronics is that it is on the stage of succession. Chang (2012) argues that Korean economic development has been achieved by conglomerates that practice the custom of handing over the torch of leadership to one of the owners’ sons. The most dangerous moment could be when the management rights pass to the son, because it is uncertain that he will display business acumen as successful as his father. Samsung Electronics is one of the biggest conglomerates in Korea. Kun Hee Lee appointed Jae Yong Lee, his only son, as COO of Samsung Electronics in 2010. This indicates that the Samsung Group is in the critical transition stage of succession (Economist, 2011a).
According to Datamonitor (2011), Samsung Electronics has an opportunity to grow, as the worldwide mobile phone market is predicted to be optimistic. The market is anticipated to achieve a value of $157 billion USD in 2013, an increase of $56 billion USD from 2008. Samsung Electronics is the worldwide leading cellphone maker with 20.6% market share. Moreover, the operating profits from mobile phones have gradually increased since 2009 (Samsung Electronics Company website, 2012). As a result, the company is well positioned to harness the advantages of growing the market with its strong market position (Datamonitor, 2011).
The major threat of the company is that it is vulnerable to foreign currency exchange rates. Approximately 85% of its revenues are generated outside Korea, and raw materials and investments are usually procured from overseas. As a result, the currency risk is regarded as a significantly important factor for the company (Datamonitor, 2011).

Evaluation
According to Newman and Kim (2011), Samsung Electronics Company seems to have a bright prospect, even though a number of companies in the world are still suffering from the global economic crisis of 2008. First, it is embarking on a plan to further diversify its business portfolio. Even if the company has already constructed a sustainable and profitable portfolio, it has decided to invest $20 billion USD over 10 years in solar panels, light-emitting diodes, electric-vehicle batteries, medical devices, and biotech drugs. This results in the reinforcement effect of stable earnings and new growth engines (Economist, 2011b).
Second, Jae Yong Lee, the successor of the Samsung Group, is expected to be successful. He has been involved in senior management decisions for nearly 20 years with the present chairman, who has contributed to the significant growth of the company. Therefore, his hands-on experience and knowledge about management garnered over the past two decades will lead him to manage the company stably when he becomes the chairman (Newman and Kim, 2011). It is highly likely that Samsung Electronics Company will continue to thrive in the future because of these reasons.