Samsung Electronics is a multinational company with involvement in various electronic-related industries, ranging from semiconductors to home appliances. Any change in the economy related to electronic goods will affect this organization; Therefore, it is very important for the decision-making team to recognize the elements of this macro environment. Samsung Electronics manufactures and markets its products in various countries around the world, including Asia and Europe and the United States. Hence recognizing target group demographics is very important and this is different between different countries. For example, youth are a large part of the population in countries like Europe and India, whereas in parts of Asia, most consumers are comprised of large families with at least 6-7 members.
The macroeconomic aspect affects almost all organizations because it determines the purchasing power of consumers and whether they can fulfill their desires for material goods. As Samsung Electronics markets electronic equipment, for most countries, especially in parts that are not growing in Asia, electronics are regarded as wealth. Economic elements such as income distribution and credit availability are important to Samsung Electronics to market their good products in these countries. In today’s green era, natural macro elements can not be ignored by any organization, especially in the electronics industry where the use of heavy metals such as mercury and cadmium is important. Therefore, Samsung Electronics is unable to monitor any aspect of pollution caused by the plant to maintain trust and good relationship with its customers. On the other hand, the natural resources required in the production of LCDs and LEDs are in terms of price and this affects production costs. For Samsung Electronics, the technology is not a strange or unknown macro environment parameter.
On the contrary, Samsung is one of the technology leaders for home based hardware and Android-based smartphones. Being the world’s largest smartphone seller and home appliances in Asia, following the latest technology to reduce production costs or stay in the market with the latest technology products is Samsung Electronics’s operating strategy. In recent years, political and legal issues have influenced Samsung Electronics in marketing its products, especially the smartphone family. For example, an injunction by Apple Inc. to stop Samsung from marketing the Galaxy series phones in Europe and the United States, as well as various attempted copyright strikes allegedly between Samsung Electronics and Apple Inc.
In short, Samsung Electronics like every other organization faces various elemental challenges from macro environments. Therefore, the steps required to identify them should be taken and from here, measures to overcome these challenges can be planned and implemented.