Samsung Electronics

Case Study
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Samsung electronics is among the world's biggest electronic companies of the world. If we look at this industry we can find that it is highly competitive. In other words there are various brands competing with each other in terms of prices and advertising policies.


Buyer power, which is another of porter forces, is also very strong because high competition and knowledge to consumer through advertising enlighten them and they become powerful. Similarly, Supplier power is weak because each of these firms can choose to take electronic supply from many companies serving this industry. Substitute products force is also high because of influx of "made in China" goods in the industry and firms operating in this industry are vulnerable to cheap products from China. Threat of rivalry is very high in this industry, because of various competing brands such as LG, Sony, and Panasonic etc. The driving force in this industry is the lust to get more and more market share. Many firms operating in this industry are trying to achieve this by attracting consumers towards their products through persuasive and informative advertising and reduced prices that they offer to the customers. In the past years, it has been observed that quality and price are the factors that play the most important part in the success of firms operating in this industry (Daft, 1997). However, look at the overall condition and recessionary trend in the world economy; it is very hard to predict that the firms operating in this industry will continue to remain profitable. ...
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