Macro Environment Analysis - an Outline of Samsung’s Situation in China

The following macro environment analysis (SLEPT analysis) gives an outline of Samsung’s situation in China (J. Makos, 2015) and in India (J. Makos, 2014). Samsung would consider all of these factors before taking a decision.

Social:

(China) Population growth and age distribution, family size and social behaviours affect social trends and cultural values. In addition, with more than 420 million Internet people use it in order to shop online and spend lot of money. However there is still a niche of consumers who prefer face to face shopping.

(India) Pension cost growth and old workers increase. However a population of more than 1.2 billion people with a majority of the ages between 15 and 65.

Legal:

(C) E-commerce is in an early stage in particular in the writing of the legislative texts concerning the intellectual property and the taxes. The absence of gratitude of the right of the customers, the privacy and the validation of e-contracts can be a brake.

(I) A number of laws were organized within the country in particular concerning the sustainable environment, the increase of minimum wages and on the discriminations. It affects directly the environment business.

Economical:

(C) Since a few years, China knows a considerable economic growth, in the point to exceed the American GDP in the coming years. The growth of the GDP results at the same time in the increase of the purchasing power. So, thanks to a low labour cost and a population of 1.3 billion potential consumers, China could be a potential country.

(I) Thanks to the industrial reform of 1991, to reduce in industrial licensing, the free entrance of the foreign investors, the training of the FIBP, the Indian economy improved and is stable today. Indeed, the country records a GDP of 5.07 trillion in 2013 and knew a 5 % increase