Samsung Financial Analysis

Introduction

Samsung Electronics is part of the Samsung group, which is a multinational conglomerate corporation, with headquarters in Samsung Town, Seoul, South Korea. Samsung Electronics is, by sales, the world’s largest technology company, being the largest producer of memory chips in the world (since 1992) and the world’s second largest chipmaker after Intel (1). In 1995, it built the first Liquid-Crystal Display, and it’s currently the largest LCD manufacturer in the World.

At first glance, Samsung Electronics is a pioneer and solid number one in the world’s technology market. However, this market is characterized by its constant changes, that has destroyed top players many times. The purpose of this Essay is then, to analyze Samsung Electronics situation in the market, prospects and financial outlook, in order to provide a clear and independent picture for Private Investors (potential shareholders).

In order to provide the required picture to the potential shareholders, this Essay will analyze Samsung Electronics (SE) strategy, market environment, competition intelligence, financial situation and overall likelihood to succeed in the Technology market. Samsung Electronics is listed separately as part of the conglomerate.

Positioning and Strategy

In order to analyze the profile of Samsung Electronics, we will make use of SWOT Analysis.

Strenghts

- Samsung Electronics is the world leader in technology market by sales volume (Strong Market Position)

- Samsung Electronics is the second largest producer of smartphones in the world (Diversified Portfolio)

- Samsung Group (parent conglomerate of Samsung Electronics) in 2010 reported 258 billion USD revenues and 27.6 Billion USD of profits (up 65% compared to 2009)

- Samsung deploys new product concepts in five months. Due to its synergies in all technology market fronts. Samsung’s time to market is unmatchable.

- It’s known for innovation, and besides competing in end user products,...