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Samsung's Case Study Of Samsung: Facing The Competition In China

Good Essays
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 -
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