Microsoft Swot Analysis 2013 y233m

Microsoft SWOT analysis 2013 Strengths

Weaknesses

1.

Brand loyalty

1.

2.

Brand reputation

2.

3.

Easy to use software

4.

Poor acquisitions and investments Dependence on hardware manufacturers

3.

Criticism over security flaws

4.

Mature PC markets

5.

Slow to innovate

Strong distribution channels

5.

Robust financial performance

6.

Acquisition of Skype

Opportunities

Threats

1.

Cloud based services

1.

Intense competition in software products

2.

Mobile advertising

2.

Changing consumer needs and habits

3.

Mobile device industry

3.

Open source projects

4.

Growth through acquisitions

4.

Potential lawsuits

Strengths 1.

Brand loyalty. Over the years, Microsoft has been the leading OS and software provider, which resulted in more than 90% market share for PC OS. Most of us grew up using its easy to use OS, are familiar with it and will keep using it. Few other brands are capable to compete with Microsoft for this reason. Even open source OS, which are completely free and well suited to use for common , find it hard to attract s.

2.

Brand reputation. According to Interbrand, Microsoft’s brand is the 5th most valuable brand in the world, valued at $ 57.8 billion. Forbes listed the corporate as the 7th most

reputable business in the world. Brand reputation leads to higher sales and greater market share. 3.

Easy to use software. Windows OS and Office software products are so popular not just because Microsoft has great monopolistic power, strong distribution channels and good brand reputation but also because its products are of great quality and really easy to use.

4.

Strong distribution channels. The company works with all the major computer hardware producers such as Lenovo, Dell, Toshiba and Samsung and major computer retailers to make sure computers would be sold with already pre-installed Windows software. The company also invested in Dell and Nokia to tighten its relationships with these companies.

5.

Robust financial performance. Microsoft grew its revenues by 20% from 2008 to 2012 and holds more than $63 billion of cash and cash equivalents that can be used for acquisitions and substantial investments into R&D.

6.

Acquisition of Skype. With nearly 300 million s, Skype is a significant boost to Microsoft’s online presence and have a lot of potential in generating income from online advertising.

Weaknesses 1.

Poor acquisitions and investments. Few of Microsoft’s acquisitions were successful and brought not just revenues and products but new skills and competencies to the company. Massive, LinkExchange, WebTV, Danger are just few examples of multimillion acquisitions made by Microsoft but soon shut down or divested.

2.

Dependence on hardware manufacturers. Microsoft is a giant software corporation but it does not produce its own hardware and depends on computer hardware manufacturers to develop products that run Windows OS. If cheap and popular alternative OS would appear, hardware manufacturers may simple choose the alternative and Microsoft could do little to change the situation.

3.

Criticism over security flaws. Windows OS, the main Microsoft product has been heavily criticized for being so weak against various viruses’ attacks. Compared to other OS, Windows is the least protected against such attacks.

4.

Mature PC markets. Only recently has Microsoft entered the mobile technology sector and still heavily depends on its OS and software sales for standalone and laptop computers.

The market for these products has matured and Microsoft will find it harder to grow revenues in these sectors. 5.

Slow to innovate. Microsoft has huge R&D resources and great position to enter new markets with innovative products but constantly failed to do so. It had an opportunity to be the first player in online advertising but missed the opportunity. It’s entrance to mobile OS was also too late, while Google and Apple captured the market share.

Opportunities 1.

Cloud based services. Microsoft could expand its range of cloud services and software as the demand for cloud-based services is expanding.

2.

Mobile advertising. Mobile advertising markets are expected to grow in double digits over the next few years and Microsoft has a great opportunity to tap into these markets with its mobile OS.

3.

Mobile device industry. Smartphones and tablets markets will grow steadily over the next few years and Microsoft could exploit this opportunity by introducing more of its own tablets and a new company phone.

4.

Growth through acquisitions. With a huge reserve of cash Microsoft could start acquiring new startups that would bring new technology, skills and competences to the business.

Threats 1.

Intense competition in software products. Microsoft is more than ever on the pressure to introduce successful OS both in PC and mobile markets as such competitors like Google and Apple have already established positions.

2.

Changing consumer needs and habits. Customers shift from buying laptops and standalone PCs to buying smartphones and tablets, the markets, where Microsoft has only a modest market share and may never establish itself.

3.

Open source projects. Many new open source projects are coming to the market and some of them became quite successful, such as new Linux OS and Open Source Office. Open source projects are free and so they can become an alternative to expensive Microsoft’s products.

4.

Potential lawsuits. Microsoft has already been sued for many times and lost quite a few large scale lawsuits. Lawsuits are expensive as they require time and money. And as

Microsoft continues to operate more or less the same way, there is high probability for more expensive lawsuits to come.

Company background Name

Apple Inc.

Industries served

Computer hardware, Computer software, Consumer electronics, Digital distribution

Geographic areas served

Worldwide

Headquarters

U.S.

Current CEO

Tim Cook

Revenue

$ 156.508 billion (2012)

Profit

$ 41.733 billion (2012)

Employees

72,800 (2012)

Main Competitors

Samsung Electronics Co., Ltd., Amazon.com, Inc., International Business Machines Corporation, Cisco Systems, Inc., Google Inc., Microsoft Corporation, Dell Inc., LG Electronics, Lenovo Group Limited, Hewlett-Packard Company, Sony Corporation and many others.

Apple Inc. is an American multinational corporation, which designs, manufactures and sells personal computers, consumer electronics and software, and provides related services. The business has experienced a tremendous growth from 2001 when it has introduced its iPod mp3 player. Apple Inc. is considered to be the most successful electronics company in the world. You can find more information about the business in its official website or Wikipedia’s article.

SWOT

Apple SWOT analysis 2013 Strengths 1.

2.

3.

Customer loyalty combined with expanding closed ecosystem Apple is a leading innovator in mobile device technology

Weaknesses 1.

High price

2.

Incompatibility with different OS

3.

Decreasing market share

4. Strong financial performance ($10,000,000,000 cash, gross profit margin

Patent infringements

43.9% and no debt)

5.

Further changes in management

4.

Brand reputation

6.

Defects of new products

5.

Retail stores

7.

Long-term gross margin decline

6.

Strong marketing and advertising teams

Opportunities

Threats

1.

High demand of iPad mini and iPhone 5 1.

Rapid technological change

2.

iTV launch

2.

2013 tax increases

3.

Rising pay levels for Foxconn workers

4.

Breached IP rights

3.

4.

5. 6. 7.

8.

Emergence of the new provider of application processors Growth of tablet and smartphone markets

5.

Price pressure from Samsung over key components

Obtaining patents through acquisitions 6.

Strong dollar

7.

Android OS growth

Damages from patent infringements Strong growth of mobile advertising market

8.

Competitors moves in online music market

Increasing demand for cloud based services

Strengths 1.

Customer loyalty combined with expanding closed ecosystem. While at first Apple’s closed ecosystem was a weakness for the business, this has now changed. First, Apple now has a full range of apps, software and products that are interlinked and each other.

Second, new products and supplements will be released soon (iTV), hence expanding the ecosystem. Third, Apple has a strong customer loyalty, which increases due to Apple’s closed ecosystem, which, in turn, is ed by customer loyalty. So the combination of Apple’s expanding closed ecosystem and customers’ loyalty increases firm’s competitive advantage. 2.

Apple is a leading innovator in mobile device technology. Apple has been chosen as the most innovative business in the world for the 3rd time in 2012. Company’s core competency of producing innovative products is the strength the company builds upon and is able to bring the most innovative products to the market.

3.

Strong financial performance ($10,000,000,000 cash, gross profit margin 43.9% and no debt).Apple’s financial performance is one of the best among many companies. Company currently (end of 2012) holds about $10,000,000,000 in cash, which can be used for acquisitions, buying back company shares and other matters. It also has higher gross profit margin than its main competitors, which is equal to 43.9%. Company has no debt and is not directly affected by interest rates or credit markets.

4.

Brand reputation. Apple has a reputation of highly innovative, well designed, and wellfunctioning products and sound business performance. Apple brand is valued at $76.5 billion and was the second most valuable brand in the world in 2012.

5.

Retail stores. Apple’s retail stores ensure high quality customer experience; provide direct with knowledgeable staff and increases brand awareness. Besides, Apple’s stores are one of the most profitable in of sales/ft2.

6.

Strong marketing and advertising teams. Marketing is one of the strongest functional areas Apple has. It can sell pricier products, build superior stores (they are more or less built to achieve marketing goals) and their products in a compelling manner.

Weaknesses 1.

High price. Apple’s products cost much more than its competitors devices. Some critics argue that the price is not justified. When there’s such a fierce competition, Apple products price becomes a weakness because consumers can easily opt for similar quality but lower price products.

2.

Incompatibility with different OS. The iOS and OS X are quite different from other OS and uses software that is unlike the software used in Microsoft OS. Due to such differences, both in software and hardware, s often choose to stay with their accustomed software and hardware (Microsoft OS and Intel hardware).

3.

Decreasing market share. The less market share Apple has, the less it can influence its potential customers and persuade them to jump into using Apple’s closed ecosystem products.

4.

Patent infringements. The firm is often accused of infringing other companies’ patents and has even lost some trials. This damages Apple brand and its financial situation.

5.

Further changes in management. Apple has lost Steve Jobs in 2012 and Tim Cook became the new CEO. Scott Forstall and John Browett (chief of retail) left the company too and this will have an impact on company’s management, which, as many think, will be negative.

6.

Defects of new products. This is not current Apple weakness but one that jumps out time to time. Some of Apple’s iPod and iPhone releases had clear faults and thus disturbed sales of the products and firm’s reputation of superior product performance.

7.

Long-term gross margin decline. Current Apple’s gross margin is one of the highest in the tech industry but analysts fear that due to increasing component prices and competition current margins will not be sustained. Hence, glooming firm’s future financial performance.

Opportunities 1.

2.

High demand of iPad mini and iPhone 5. iPad mini sales will increase Apple’s market share in the tablet market and, will strengthen firm’s competitive advantage. iTV launch. iTV launch will Apple TV sales and the products’ ecosystem.

3.

Emergence of the new provider of application processors. Samsung, the main Apple’s competitor, is also the only provider of application processors for Apple’s products. Apple has to find a new source for the component but could not find a suitable one yet. Nonetheless, new manufacturers with superior engineering capabilities are arising and it’s just a matter of time, when Apple will seize upon the opportunity of being less dependent on its direct competitors.

4.

Growth of tablet and smartphone markets. Growth of tablet and smartphone markets is a good opportunity to expand firm’s share in these markets.

5.

Obtaining patents through acquisitions. Apple lacks of some patents to sustain its growth and the best way to acquire those patents is to acquire the firms holding them. In addition, Apple could develop new skills and competencies.

6.

Damages from patent infringements. Apple patents are often infringed by its competitors. Thus, collecting the damages from the companies that do so is a viable opportunity to not only increase the cash reserves but to damage the competitor’s reputation and sales as well.

7.

Strong growth of mobile advertising market. Apple has developed iAd advertising platform, which allows advertising on Apple iPhone, iPad and iPod touch. The growth of mobile advertising market is an opportunity which could be further seized upon.

8.

Increasing demand for cloud based services. Apple could expand its range of iCloud services and software as the demand for cloud-based services is expanding.

Threats 1.

2.

Rapid technological change. One of the most severe threats Apple and the other tech companies are facing is rapid technological change. Companies are under the pressure to release new products faster and faster. The one that cannot keep up with the competition soon fails. This is especially hard when a business wants to introduce something new, innovative and successful. Apple was able to bring very innovative products to the market so far but for the moment, even Apple hasn’t unveiled any plans for the new products (except iTV) and may lack new introductions to keep up with competition. 2013 tax increases. Tax increases in USA in 2013 will negatively affect Apple.

3.

Rising pay levels for Foxconn workers. Pay levels for Foxconn’s workers already rose 3 times from 2010 to 2012. Foxconn is the main manufacturer of Apple products and the rising pay level for Foxconn’s workers will likely raise the prices for Apple products.

4.

Breached IP rights. The companies that breach Apple patents might not be discovered soon and may benefit from it, while weakening Apple at the same time.

5.

Price pressure from Samsung over key components. Samsung has already asked Apple to pay higher price for its application processors. Due to intense competition and no viable substitutes, Apple may be asked to pay even more.

6.

Strong dollar. Apple earned more than half of its revenues from outside US. Dollar appreciation against other currencies reduces potential profits from those countries.

7.

Android OS growth. Android OS is the main competitor for iOS in mobile device market. The domination of Android decreases iOS power over influencing consumers to Apple.

8.

Competitors’ moves in online music market. Apple faces threat from online music stores, such as Amazon, Wal-Mart and online music subscription companies, such as Spotify.

Company background Name

Google Inc.

Industries served

Internet

Geographic areas served

Worldwide

Headquarters

U.S.

Current CEO

Eric Schmidt and Larry Page

Revenue

$ 50.17 billion (2012)

Profit

$ 10.7 billion (2012)

Employees

53,861 (2012)

Apple Inc., Facebook Inc., Microsoft Corporation, Samsung Electronics Co., Ltd., International Business Machines Corporation and many others.

Main Competitors

Google Inc. is a multinational corporation that provides Internet-related products and services, including internet search, cloud computing, software and advertising technologies. Advertising revenues from Ad Words generate almost all of the company's profits. You can find more information about the business in its official website or Wikipedia’s article.

SWOT

Google SWOT analysis 2013 Strengths 1. 2.

3. 4.

Open source products and services Quality and customer experience are the primary objects

Weaknesses 1.

Relies on one source of income

2.

Unprofitable products

3.

Patent litigations

Financial situation Access to the widest group of internet s worldwide

5.

Strong patents portfolio

6.

Product integration

7.

Culture of innovation

Opportunities

Threats

1.

2. 3.

Growing number of mobile internet s

1.

Growing number of mobile internet s

2.

Unprofitable products

3.

EU antitrust laws

4.

Competition from Microsoft

Obtaining patents through acquisitions Driverless electronic cars

4.

Growing into electronics industry

5.

Google fiber cables

Strengths 1.

Open source products and services. As the company states:” Google’s mission is to organize the world’s information and make it universally accessible and useful.” The same is with almost any of Google products. Let it be Google maps, calendars, drive, OS or the advices how to rank better in a search index. Google’s products can also be used with any OS or mobile device without a charge. Google openness is the key why Google is the number one in many products and services.

2.

Quality and customer experience are the primary objects. Everything that Google offers is of quality. The products are aimed at solving customer needs and problems by providing excellent customer experience.

3.

Financial situation. Google is one of the most profitable companies in the world with earnings nearly $50 billion and $11 billion profits (22%). The company also holds $48 billion in cash and just $7 billion of debt. Few other companies are so strong financially to compete with Google.

4.

Access to the largest group of internet s worldwide. Google has an access to 79% of the world desktop search market s and 89% of the world mobile search market s. Combined, these internet s represent an extremely large market that Google can use to promote and sell its products and services.

5.

Strong patents portfolio. In 2012, Google added 1,151 patents and was the 21st business worldwide in of number of patents. Intellectual property is the key in competing against competitors and Google with Motorola’s acquisition gained a strong advantage over its competitors.

6.

Product integration. Nearly all Google products are integrated with each other forming an ecosystem that enriches customers experience and encourages using more of company’s products and services. Besides, Google products can be used on any OS or any device without a trouble or can be integrated with other companies’ applications. No other major tech organization offers the same level of integration.

7.

Culture of innovation. Many unique products are offered by Google every year, with so many in development stages. According to Boston Consulting Group (BCG) Google is the 2nd most innovative business in the world. The company was also the second patent creator in the worle in 2012. Google emphasizes its innovative work culture as one of its main competitive advantages.

Weaknesses 1.

Relies on one source of income. More than 90% of Google’s revenue comes from online advertising. Online advertising is expected to grow in double digits in 2013 and will grow Google’s income in the short term. But in the long run, Google may experience slow income growth or even the decline due to a few reasons. First, the market for personal computers is growing slowly and the Google experiences the overall decline in its desktop search engine market. If Google won’t push the competition back it will lose not only the market share but the main source of its income as well. Second, Google as many other firms, find it hard to monetize mobile device s, who will represent the highest growing group in online advertising. Third, online advertising growth is driven by emerging economies where an average price for an ment is considerably lower than in the developed economies, so the growth of online advertising will only grow the income of companies insignificantly.

2.

Unprofitable products. Google has many products and services that add little value for the business and make only losses, thus decreasing firm’s profits.

3.

Patent litigations. Google is often involved in litigations over the breached patents and other intellectual property. These litigations are costly and time consuming and distract the company from innovating rather than litigating.

Opportunities 1.

Growing number of mobile internet s. Google has an opportunity to create a platform that could be used to better display ads for mobile device s and increase firm’s income.

2.

Obtaining patents through acquisitions. For Google to grow and to compete successfully, it has to obtain more new patents. One way of doing that is to acquire companies that have strong patents portfolio. Google has acquired Motorola in 2012, obtaining more than 17,000 patents from the business.

3.

Driverless electronic cars. Goggle has introduced and successfully tested driverless cars in Nevada, U.S. The technology of these cars could easily be installed in any future model and would be a huge technological step. Although, Google has no intentions of manufacturing such cars itself, the company could sell licenses for car manufactures for using their technology and IP.

4.

Growing into electronics industry. Google has already launched a few new models of notebooks, tablets and smartphones into the market but these were only introduction models. Google could strengthen its entry into electronic devices industry by introducing more products for more customer groups and cut out its market share. This would result in tighter integration of its software products and diversified income.

5.

Google fiber cables. Google is currently testing their new fiber cables that can deliver internet content at astonishing 100 times as fast as current providers. It is wise for Google to invest in such infrastructure that virtually would have no competition and would integrate the company vertically.

Threats 1.

Growing number of mobile internet s. Goggle finds it hard to monetize mobile internet s as there is less space to place ads on a mobile device and the ads costs less than usual. The growing number of mobile s means fewer searches made on the personal computers and lower income growth or even decline for Google.

2.

Unprofitable products. Google has introduced many products and services but few of them earn profits for the business. Most of the services are the burden for Google and only makes losses. If Google continues to introduce new products that add little value and only make losses, the company’s profits will fall.

3.

EU antitrust laws. Google is currently accused by EU of using its dominating position in internet search engine market to display its own services higher than competitors’ in search results. If proved guilty, Google would have to pay fines that would significantly lower firm’s profits.

4.

Competition from Microsoft. Microsoft is gaining a market share in internet searches and is playing an important role against Google. The company has also introduced Windows

8, the OS aimed for mobile devices, to carve out its market share in mobile OS market. In both fronts, internet search and mobile OS, Microsoft is challenging Google and is taking away the potential revenues.

Company background Name

Samsung Electronics Co., Ltd.

Industries served

Consumer electronics, Telecoms Equipment, Semiconductors, Home Appliances

Geographic areas served

Worldwide

Headquarters

South Korea

Current CEO

Kwon Oh Hyun

Revenue

₩ 201.103 trillion (2012)

Profit

₩ 23.845 trillion (2012)

Employees

221,726 (2012)

Parent

Samsung Group

Main Competitors

Apple Inc., Nokia OYJ, Intel Corporation, LG Display and LG Electronics, Sony Corporation, Texas Instruments Inc., Lenovo Group Limited, Hewlett-Packard Company, Sanyo Electric Co., Ltd., Toshiba Corporation, SK Hynix Inc., Western Digital

Corporation and others.

Samsung Electronics Co., Ltd. is the largest world’s technology company in of revenues. It is the largest mobile phone maker and television manufacturer and second largest semiconductor chip producer. You can find more information about the business in its official website or Wikipedia’s article.

SWOT

Samsung SWOT analysis 2013 Strengths 1.

2.

Hardware integration with many open source OS and software Excellence in engineering and producing hardware parts and consumer electronics

3.

Innovation and design

4.

Focus on environment

5.

Low production costs

6.

7.

Weaknesses 1.

Patent infringement

2.

Too low profit margin

3.

Main competitors are also largest buyers

4.

Lack its own OS and software

5.

Focus on too many products

Largest share in mobile phones and 2 place in smartphones sales Ability to market the brand

Opportunities

Threats

1.

Growing India’s smartphone market

2.

Growing mobile advertising industry

3.

Growing demand for quality application processors

4.

Growth of tablets market

5.

Obtaining patents through acquisitions

1.

Saturated smartphone markets in developed countries

2.

Rapid technological change

3.

Declining margins on hardware production

4.

Breached patents

5.

Apple’s iTV launch

6.

Price wars

Strengths 1.

Hardware integration with many open source OS and software. Samsung is focused on producing devices which can be integrated with most of the software and OS. This gives Samsung products an edge over Apple’s (its arch rival) devices, especially as Android and other OS are gaining market share when iOS and OS X are losing it.

2.

Excellence in engineering and producing hardware parts and consumer electronics.Samsung is the number 1 by market share in televisions and mobile phones sales and some of the hardware parts (processors, memory chips, etc.). This was largely achieved due to excellence in engineering and both efficient and effective production.

3.

Innovation and design. In 2011, Samsung ranked second on the list of US top patent assignees. More patents strengthen Samsung position among its competitors. The firm also won many awards for the design of its products, proving the superior advanatage over the competitors.

4.

Focus on environment. Samsung focuses on producing environment friendly products that are free from PVC and BFRs (currently only MP3 and mobile phones). It also develops various recycling programs that are awarded for their success. Thus, Samsung’s focus on environment gives it an edge over its competitors in the eyes of its customers.

5.

Low production costs. The company has set up its production facilities in low cost countries. This allows producing goods with low production cost and benefit Samsung as it can offer lower price and earn higher margins.

6.

Largest share in mobile phones and 2 place in smartphones sales in the world. Samsung Electronics have achieved large market share in many products they sell, especially in mobile phones, smartphones, semiconductors and television sets. Large market share has its advantage, bargaining power, that Samsung can use to further reduce costs and demand for better contract conditions.

7.

Ability to market the brand. Samsung is named as top rising brand by Interbrand and is the 9th most valuable brand with value nearly $33 billion. It has risen by 40% from 2011 to 2012. This was mainly achieved due to company’s ability to market the brand in sporting events and social contributions.

Weaknesses 1.

Patent infringement. Samsung is infringing Apple’s and some other firms’ patents, thus, damaging its reputation and having to pay a huge amount of money in damages.

2.

Too low profit margin. Samsung Electronics is the largest technology business in the world in of revenues but it has a low gross profit and net profit margins. Although its smartphones business is quite profitable, Samsung’s profit margin is low due to its semiconductors sales and aggressive price cuts.

3.

Main competitors are also largest buyers. Apple, Sony, Dell, HP are the main buyers of Samsung Electronics products as well as the firm’s main competitors. Such situation would be favorable to Samsung (if competitors could not find complementary products and would form a relatively low share Samsung’s revenues) because it could use its bargaining power over competitors. Due to reverse conditions (competitors can find complements and they form a relatively high share of firm’s revenues) Samsung cannot use its bargaining power over competitors as it can easily lose its customers and sales.

4.

Lack its own OS and software. Software and OS production has a high profit margin, can increase integration of company’s products and brand loyalty. Without strong software and OS Samsung is at disadvantage over its competitors.

5.

Focus on too many products. Samsung Electronics serves 4 different industries with many different products in them. Samsung is at disadvantage over its competitors because it loses a focus when competing in too many industries and too many products.

Opportunities

1.

Growing India’s smartphone market. India’s smartphone market is one of the least penetrated among Asia/Pacific countries. Samsung has a strong presence in India’s market and could use this opportunity to expand its sales.

2.

Growing mobile advertising industry. The company could develop advertising platform for its mobile devices and significantly benefit from this lucrative market.

3.

Growing demand for quality application processors. Samsung is one of the key manufacturers of application processors for smartphones and tablets. The growing demand for these products requires more best quality application processors that only Samsung provide.

4.

Growth of tablets market. Tablets market is expected to grow in double digits over the next few years. Samsung business has a strong position in tablets market and could expand it by introducing newer, better quality tablet models, such as its current galaxy line.

5.

Obtaining patents through acquisitions. The key to Samsung’s competitive advantage is the large portfolio of patents. Patents can be discovered by engaging in costly R&D or through acquisitions of other firms.

Threats 1.

Saturated smartphone markets in developed countries. Smartphones market in the developed economies is saturated and the sales will not be growing at a high rate.

2.

Rapid technological change. The serious threat that Samsung and the other tech companies are facing is a rapid technological change. Companies are under the pressure to release the new products faster and faster. The one that cannot keep up with the competition soon fails. This is especially hard when the business wants to introduce something new, innovative and successful.

3.

Declining margins on hardware production. Samsung is the second largest semiconductors producer where the profit margins are very thin, thus weakening the whole company's figures.

4.

Breached patents. Samsung Electronics has many patents which are often used by its many competitors. Such situation makes it hard to find out which companies benefit from Samsung’s technology but do not pay for the rights to use it.

5.

Apple’s iTV launch. Apple’s iTV is the next big lunch from Apple, which may hurt Samsung’s TV sales.

6.

Price wars. Samsung has a very low gross margin on many of its products and is already selling some of them with significant price cuts. Competitors could follow price cutting strategy too and induce price wars, which would erode Samsung’s profit margin to 0%!

SWOT analysis of Nokia Strengths   

Nokia world’s largest producer and manufacturer of cell phones as well as has the largest distribution network around the world. It is also known for the Creativity, Innovativeness, durability & reliability. It has very good financial position, higher return on equity (ROE), return on assets (ROA) and net profit margins (NPM)



Nokia leads the global cell phone industry



Nokia dominates the world cellular industry because it has the Strong R & D facilities.



Nokia also possessing the all fashion strategies and four style new generation characteristic from manufacturers



It has diverse work force and advanced technology.

Weaknesses 

It has declared its profits had dropped by 40 % in 2010.



Nokia mobile phones prices are higher as compare to the prices of china mobiles handsets.



Nokia presence in the US cellular industry is very low and in Japan it has very weak position.



In India Nokia has few service centers and very appalling after sales service



In Japan Nokia closed the mobile handset distribution and also canceled the distribution of E71 handset due to low market preference.

Opportunities 

In 2011, the global cell phone industry expected to grow by double digits



Today, Asia-Pacific mobile phone industry is one of the fastest-growing industry in the world.



Developing countries like China, Bangladesh, India and Pakistan has enormous demand potential.



Nokia had a 50-50 t venture with Siemens of



Youth wants the stylish aesthetics, fashionable handsets, it drive the new market for players.

Threats 

Consumers are becoming more complicated in the choice of handset due to new styles by china mobiles.



Difficult for sellers to differentiate their products and retain loyalty.



Nokia is facing very strong price pressure from china and other mobile producers



Nokia is losing global market share after the arrival of several Chinese producers



In the Asia/Pacific emerged competitive forces.



Apple, RIM and the other different sellers have created strong pressure for Nokia.