In the PESTLE analysis of SAMSUNG company, we will look INTO the key factors that are influencing its performance. These external factors are generated through law, environment, politics, sociology, economy, and technology. By analyzing these factors senior professionals can make the right decisions for their organization. So, without further ado let’s dig into the detailed PESTLE analysis of SAMSUNG.
Political factors and SAMSUNG:
A company must abide by the governmental laws of the country to which it belongs. Samsung underwent huge losses as a result of making ties with two South Korean political parties and the first female President.
In 2002’s Korean Presidential campaign, SAMSUNG backed Uri and its opposing party with billions of Koreans winning. Korean people were annoyed due to SAMSUNG’s manipulating act. Moreover, SAMSUNG’s heir’s link with Park Geun-Hye’s political scandal further decreased its reputation in the market. Jay Y. Lee had been sent to jail for a shameful act of bribery that linked to the Korean female President.
Due to such scandals, SAMSUNG’s sale has been affected in some countries including Germany. Still, its place can never be denied in the western country’s market.
Economic factors influencing SAMSUNG:
Not only did the Korean economy’s decline decrease SAMSUNG’s profit by 25 percent but also the Smartphone’s slow-developing market affected it badly. There is an ongoing need for innovation in its products. Its mobile sale has made it possible for SAMSUNG to compete with Google and APPLE. Secondly, the weakening buying power of low-waged people in the world also affected SAMSUNG’s profits in the new era. People strive to get the necessities rather than luxuries like SAMSUNG’s products if they have a limited amount of money in their pockets. Global pandemics like Corona hit almost all the electronic manufacturers in the world. Samsung is not the exception.
Social factors and SAMSUNG:
By being an electronic company, people’s needs, requirements, and what’s going on in their minds should be taken into consideration when you are making products. If your phones don’t have the latest Android functionalities but your competitor’s phone does, then my friend you’re going to be kicked off from the international markets. Especially don’t delay the process of being an up-to-date manufacturer. For example, SAMSUNG should have its own SIRI or Google voice assistant to have a higher place than APPLE or Google smartphone manufacturers.
On the contrary, some innovations of other companies don’t need to be copied. For example, SAMSUNG did not remove the headphone jack as Apple did.
SAMSUNG always strives for upgrading its technology each year. Although their phones got exploded due to their batteries getting easily overheated. But still, people buy its products because of modern technology and fans are looking forward to more profound innovations like SAMSUNG Galaxy 10.
Although political controversies and the global pandemic decreased its profits SAMSUNG managed to remain on top of the technology market. Its focus on the local markets, its decision to keep the headphone jack, product performance, and quality, makes SAMSUNG the best choice for consumers.