Summary: (25pts)
Samsung is facing the competition increasing in China. On 10/23, the report of operating profit in this year has fallen about 60% that compare a year earlier. Since many people in Asia area are feeling the price of Samsung 's device is too high. For example, Galaxy S3 phone, the used to most successful product in China cost $573. But the new domestic brand- XIAOMI just cost $372 that almost is the same quality as Galaxy S3. Although, Samsung is still the No. 1
Smartphone maker around the world, it seems has lost market shares in recent quarters in the Asia. Samsung 's internal department tried to solve the problem. The company considered the big market in China; it is starting the new marketing strategy. And the company is
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Pressure for local responsiveness is defined the pressure increasing from customers’ taste in the individual market or location. This is related to this article because Samsung is facing the price competition in China since Samsung that sells the same price at worldwide. For solving the issue, Samsung plan to changes the appropriate price. In the article, the domestic brand - XIAOMI owns the lower cost of producing that causes the cheaper price than Samsung. Considering the living cost and the price pressure, the brand will develop the suitable strategy to fit the China …show more content…
Experience effect is defined systematic reductions in production costs that have been observed to occur over the life of a produce. This is related to this article because when Samsung faces the challenge of trade in China, the company built the new factory in Vietnam last year for reducing cost to growth profit. In this article, although Samsung owns first-mover advantage in early 1992, since technology transferring, many and many Chinese brands have developed, that gave the pressure to cheaper price on mobile-phone. Samsung found the way out that is create the new, lower cost of producing in Vietnam. Besides, the brand provides the cheaper mobile-phone to keep the large market -
• Mr. Chung and his division of Samsung, SCH, has been in the Chinese market for some time and have a good read on the society and the current trends in the political, economic, and social events in China. Their recommendations for moving into the high-end market should be followed.
The features of their mobile phone are the crucial part of their parity, for e.g. – introduction of galaxy phone. Talking about the point of differentiation, recently we have seen Samsung is going to launch Galaxy S6 with a curved screen; which is a very new concept in this mobile sector and none of the other companies have so far been able to introduce such a new concept. Samsung seems to be the pioneer in this criterion and have done something off the hook. Overall the performance of this brand seems to be very impressive in terms of popularity, revenue and the contribution they are making to the mass public by offering their products. Nevertheless, I would still like to recommend an improvement regarding one of their major drawbacks, which Samsung still doesn’t seem to have overcome. Even though Samsung claimed they don’t actually make their customers a wall hugger, in reality actually they do. Hence, they should focus more on these specifications so that consumers don’t get the chance to switch brands in the blink of an
There are a large number of competitors present in Smartphone industry serving to lower income group to niche segment consumers. Life of a product in this industry has reduced to a large extent relying largely on R&D to match with the emerging trends. The price of a Smartphone is decreasing whereas the purchasing power of buyer is increasing. There is also huge competition between Ios, Windows, and Android at the OS
Samsung is Apple’s biggest competition when it comes to phones especially between Apple’s iPhone 5s to Samsung’s Galaxy S4. They are both very popular among consumers, but they are differently different from each other. It is an endless debate on which one is better, but it really comes down to which one is better for you as a consumer. There are good and bad issues with both phones such as with the Galaxy S4, the TouchWiz Ul remains a clumsy construction and lacks overarching design language, but the good thing about t...
The presence of foreign firms improves domestic competition; if the foreign entrant is bringing anything new to the table in order to expand in a new market, it brings technology and ideas that domestic companies can emulate. This is especially true in the case of countries new to capitalism, such as China. According to Crocker and Yi-Chung (2004) foreign firms entering China during the 1980s faced negligible competition from domestic businesses. Large multinational enterprises (MNE) such as Procter and Gamble (P&G) and Unilever were rapidly able to capture large market share in China. Within ten years, they began to encounter pressure from domestic companies that marketed less expensive, all be it lower quality, replacements. While much of the increased competitions MNEs confront in China are foreign, domestic and joint ventures firms, they also combat illicit competition from knockoff, or pirated products.
Samsung’s cost advantage is clearly visible from the comparison of costs (and their elements) that were borne by the company and its competitors in 2003 (Tab. 3): Samsung’s overall cost was 24 per cent lower than the weighted average cost of the other four producers; two most significant elements of the cost structure, i.e. raw materials and labour, were 36 and 27 per cent lower respectively. When expressed by means of a relation of average selling price to costs (“productivity” of cost elements), the differences are even more visible (comp. Tab. 4 ): overall superiority of Samsung over its competitors exceeded 51 per cent!
Samsung will also include consumers, as key external stakeholders, in the research and development focus groups to best incorporate consumer opinion and demand into areas of the project including development, marketing, and distribution. This will help Samsung create and deliver a product that the customers want. It will also help identify consumer needs for the new smartphone’s use as consumer inputs will help shape and drive the technological innovations that Samsung is aiming to deliver with its new smartphone.
Internationalization Phase, during this phase Chinese companies focused on ‘building brand, localization of products and services for new markets, and differentiation of products to support higher margins’ they did what was ‘good enough’ for the market (Teagarden & Cai, 2009:78). An important issue during this phase was to research and develop the products, and to keep the key talent of the company, such as managers and engineers.
Some of the major characteristics that make it in this firm includes high barriers to entry of other related substitutes, it ensure maximum profit on maximization, it is considered as the sole seller, price determiner and price changer. That is; it can change the price of its products a...
For these outcomes, the team has chosen three possible options for alternatives (1) recall, (2) no recall or (3) delay of release. As for the aforementioned list, the group examined there values alongside the fixtures of corporate social responsibility and the consumer sovereignty test. The team analyzed the alternatives with the former under the following four criteria; economic, legal; ethical, lastly philanthropic responsibilities. For the latter concept, the following criteria was utilized, consumer capability, information and choice.
price as the major decision-making tool for customers (“Global Consumer Electronics”, 2013). This lack of
Samsung used the “new product development” strategy. According to Kotler/Armstrong new product development is defined as the development of original products, product improvements, product modification, and new brand through the firm’s own product. Samsung also unveiled a new strategy, which is called “new management,” a top- to-bottom strategy for the entire company. Lee Kung Hee, CEO, hired young designers to produce new ideas that could get the company in the direction that he wanted it. New designs .Sleek, bold and beautiful products, so that they could target high-end users to the company. Samsung also was testing new product concepts.
This case study analysis is on Samsung Electronics Company (SEC) and how it has climbed up the ranks in the past decade via calculated marketing strategies, extensive market research and analysis, and a risky bet on how the market will evolve. Samsung’s principle outlook took time and education from within and thereafter the general market.
Apple smartphones like IPhone 6s, IPhone 6 plus S, IPhone 6 and IPhone 6 plus are the latest and the most popular smartphones. The price range for IPhones are $549 to $849 in the United States of America. There are big telecommunication companies like AT&T, Verizon, T-Mobile and Sprint offering very affordable contract price to customer and rapidly increases the users of Apple. It becomes very easy to buy Apple products in many countries. Samsung has more advantages than Apple in the European and Asian market. Because Samsung has wider price variant and most of the products are cheaper than Apples.
Originated as low-cost manufacturer of black and white televisions in the year 1969, super sized with a semiconductor segment in 1970s, Samsung delivered massive volume of low-cost consumer electronics to domestic and OEM products to both domestic and global markets until 1993. Due to this fact, company didn’t develop global brand awareness until then. In the global arena, Samsung’s brand message was fragmented and its logo presentations were inconsistent.