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Founded by Lee-Byung-Chul in 1938, Samsung has its roots in South Korea. Now a multinational tech player, Samsung was once a food company. The brand used to trade in food by exporting various edibles like vegetables, seafood, and fruits to China. In 1990, Samsung evolved into one of the most powerful electronics conglomerates. PESTLE analysis of Samsung throws light on the effects of various factors on the brand. Samsung today specialises in the field of Artificial Intelligence and Surface Mount Technology, especially in smartphones. As a multinational company, Samsung trades globally. Therefore, various factors contribute to the performance of the brand, Samsung.
PESTLE Analysis Of Samsung
The PESTLE analysis is a powerful commercial tool that highlights the influence of various factors on the brand or business. The PESTLE analysis of Samsung in India or any other place refers to the ascertainment of effects of the following factors:
- P stands for Political
- E stands for Economy
- S stands for Socio-cultural
- T stands for Technological
- L stands for Legal
- E stands for Environmental
Political Analysis Of Samsung
Samsung is a multinational player in the tech industry. Considering the political factors of the PESTLE analysis of Samsung, the brand enjoys a favourable political environment in most of its markets. However, some irritants sometimes affect the smooth flow of the brand in a country like India. Sometimes, the brand faces difficulties regarding the political norms in Latin American countries. The other place to force political pressure on the brand is a list of African countries. Recently, the brand was impacted by the native political pressure arising out of the disputes between South Korea and North Korea. Talking in general, Samsung barely faces any devastating political impact; it is all set to withstand the most.
Economic Analysis Of Samsung
This factor is a little critical for the brand. After the global economic crisis faced during the pandemic, the purchasing power of consumers has drastically fallen. With respect to the PESTLE analysis of Samsung in India, the economy has faced a setback, leading to a fall in disposable income. However, Samsung is smart enough to make some coping strategies to deal with the developing markets to scale up in the global industry.
Socio-Cultural Analysis Of Samsung
Besides being a multinational, Samsung has its roots fixed in South Korea. Being a South Korean Family Business, it still operates as a Korean Brand regardless of its universal footprint. When dealing in the global market, Samsung needs to keep advancing its launches and products to meet the requirements and preferences of the other country’s customers. Given the fact that every country’s socio-cultural factors are quite different from one another, the brand needs to strategise unique ways to match the fast-changing lifestyle preferences of different nationalities.
Technological Analysis Of Samsung
With regards to the technological part of the PESTLE analysis of Samsung, the brand is known for its tremendous power to rule in technology. Samsung, many times, has come up with astonishing innovation curves. The mission reflected in all the brand’s moves is to dominate its tech rivals and keep striving to be among the top tech companies in the world. This multinational company has come up with some similar features that were a hit among the consumers but also led the brand into legal troubles. The technologically evolving brand, Samsung has a lot to teach the growing companies. What matters is that Samsung is not in a hurry to reach out to customers through imitation but by doing just the basics right.
Legal Analysis Of Samsung
Various legal aspects affect multinational brands. For famous brands, it becomes a little more difficult to find a loophole; therefore, abiding by all the lawsuits becomes a must. This not only helps brands like Samsung to stay miles away from legal penalties but also ensures a clean brand image. Being a multinational tech brand, Samsung has to abide by the legal norms of the global market. As mentioned earlier, Samsung suffered drastically for imitating the products of Apple. The various strategies of Samsung involve ways to avoid the potential troubles that might arise out of the legal maze. Samsung needs to play safely in the global industry to prevent unwelcomed losses and legal troubles for the business.
Environmental Analysis Of Samsung
The environment matters the most to Samsung. Global tech players like Samsung have to be very cautious about their business ethics. Apart from meeting the needs and preferences of its customers, Samsung has strict laws to offer a good working environment and meet other environmental requirements. For brands like Samsung, it becomes vital to ensure no harm to anyone due to the business; thus, quenching the ethical thirst of some of its chic users. Therefore, right from ensuring a warm working culture to sustainable business, Samsung is doing well on the environmental part of the PESTLE Analysis.
Conclusion
PESTLE analysis of Samsung displays the impact of various macro factors on this big brand. This famous tech brand has often faced controversies stemming majorly from the political aspects of various countries. On one hand, there are endless counts of profitable financial years, while on the other hand, there were years when Samsung suffered losses. PESTLE analysis not only helps brands like SAMSUNG to ascertain the risk while trading overseas but also helps them to strategise in the best possible ways to withstand the competition, which in the case of Samsung is Apple and a few other established smartphone or tech brands.
