Political Factor

Macro Environment Factors of Samsung – One important aspect of the policy environment for several enterprises is mainly the political system and stability of the organization. This involves the reliability and stability of political institutions as well as their role in determining economic activities. The company is facing strong competition with others while getting engaged with the government of other countries. It has been proved that the government of the UK has worked on creating various challenges for Samsung in order to enter their market and also to impact the overall European market.

Economic Factor

The economic constancy and growth within the region have a direct and significant impact on profits.  The economic stability of the region usually offers higher employment rates standards with living standards towards a rise in disposable income of their customer and researched on increasing trends that resulted in determining the target market for Samsung.

As a result, Samsung has widened its business to over 50 countries all around the globe. It is a fact that the company has invested a major amount in building infrastructure in each country where they are currently operating their business. This led to producing more employment chances for locals, for which countries encourage multinational firms to operate and expand their business within their market.

Social Factor

Demographic characteristics are promising businesses emphasize their service contribution that eventually influences the sales and creates it harder to endure within the market.

Samsung has currently recognized its local R&D centers in diverse markets that include Samsung Poland R&D center, Samsung Electronics China, and Samsung R&D Institute India. This has enlightened the fact that organizations are working on the strong opinion of customer demand and expectations and as a return, they can advantage of local knowledge collected from establishing R&D centers.

Legal Factor

Companies especially the ones that have mainly expanded their product range in view of smartphones and tablets are now likely to face facing aggressive fights within the retail industry. It is significant that the government should devise such rules for promoting their customers.

Even though this may have a negative influence on the business, they might respond to dump their product with lower quality within developing countries for gaining profit. In such situations, the government needs to act smartly and efficiently.

Currently, Samsung faced another patent lawsuit from Nvidia (chipmakers) against using graphics that were patented to Nvidia and Samsung has used them in their products like TV devices and mobiles over a few years back.

Related Pages

Tags: , , , , , , , , , , , ,