Feasibility Report Guide Essay Example for Free

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 company. Samsung Electronics products include semiconductors, hard drives, digital displays, home electronics, mobile phones, and others. All Samsung products have the same tone when the device is turned on, so that customers can easily get used to them and this tone is mentioned when Samsung products are being advertised as well. â€Å"Smarter Life† theme was introduced recently in Samsung that is based on the innovative approach in improving the company’s current products, and introducing new products to the market. For instance, Android-based Samsung Galaxy Player 50 is to be introduced soon, containing a range of innovative features the product is expected to change the current media players’ market condition significantly SWOT Samsung Samsung Strength as Becoming a world known brand (over 200 countries) RD (investing on scientific talents) Innovation (new digital technology) Customization (new products every year) New 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 Pc‟s,Laptop, peripherals, printer, memory cards and Well diversified and differentiated product line toother accessories meet changing customer needs . Samsung electronics has 4business areas to cover customer electronics needs. Practice the good leadershipBrand value through multiple sponsorships High market share that continues to growtheory (Mobile Phones and Design with an attractive styling that interestsmemory chip)and LCD the customer, as the result of the development of Samsung‟s new products that involve team of product designers. product variation Samsung’s Opportunities unique products and existing products introduce userwith variety friendly mobile phones could launch sub brandsat affordable price. to the company. Samsung’s Opportunities O open more stores Newmore customers O Launch creative products Technology, Innovative 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 cost competitors in China2. legal war between Samsung and its competitors such 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 networks, mobile-telecommunications networks, and budget smart phones. Market 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 didn’t plan on investing in their own RD to create a unique product. These things together would require a new entrant to establish a competitive brand name while achieving economies of scale via investments in a supply chain process and developing a distribution infrastructure to remain competitive. The costs 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 second largest telecom operator by revenue share after Bharti. Strengths: * Diversified geographical portfolio with strong mobile telecommunications operations in Europe, the Middle East, Africa, Asia Pacific and to some extent the US * Network infrastructure   * Leading presence in emerging markets such as India Weaknesses: * Little focus of impact of mobile on climate.   * Negative return on assets (ROA) under perform key competitors like ATT, Airtel, Uninor etc * US business not nearly 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 technologies Threats: * Highly competitive market * Still lags behind major competitors in the India and other countries. * Extremely high Porter’s five forces Buyer power The bargaining power of buyers in the telecommunications industry is high due to the cutthroat competition 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 will keep making reasonable profits compared to its competitors. Supplier power Vodafone’s suppliers have a high bargaining power since the company operates 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 substitutes Vodafone faces a considerable threat for products and services. The landline and CDMA services are fast declining while broadband services are fast becoming common. Video conferencing, VOPI such as Skype, Google Talk and Yahoo Messenger, email and social 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 costs attributed to substitution to consumers (MarketLine, 2012, p. 8). Threat of entrants The threat of fresh market entrants is low because of barriers to entry. Companies wishing to enter the 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 difficult for new entrants to cope. However, Vodafone can cope with this by maintaining high-level efficiency of its services to unrivaled heights. Industry rivalry Vodafone 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 PEST Analysis. PEST analysis is a strategic tool used to analyse 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 mobile 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. Generally 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 going ‘green’ and ageing population in developed countries that are going 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 company is left with a choice of either to form strategic alliances with above companies or to commit to considerable amount of research and development in order to introduce innovative products and services to the market.