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Samsung Electronics - Case Study Example

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Samsung Electronics

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. ...
The strategy that Samsung is following to remain competitive in the market is continuous research and development. This helps Samsung to develop new products before its competitors and attract new market share.
Samsung earns the highest revenue in the industry
Samsung has a good brand name due to the reliability of its products
Good After-Sales Services and Friendly Staff
Rigorous training is given to all employees and especially managers
Lagging behind other firms in the mobile phone sector
Samsung is a very large company, which results in diseconomies of scales and higher prices than its competitors
Samsung is experiencing higher cost of production than its competitors
Industry is growing at the rate 10%
Many investors are willing to invest in this industry, and as a result there is good chance for companies like Samsung to Capitalize their reputation
This industry is highly competitive, so any minor mistake can doom the company's reputation
The cost of production is rising due to shortage of Skilled workers and hike in the salaries of workers
Samsung prices are very competitive to its competitors apart from one or two of their products. Samsung has always tried to remain competitive in terms of prices and this is a result that it is enjoying the highest market share in the industry. The company is competitively very strong when compared to its rivals. Its focus on "HOT DESIGN, Lower Prices" has yielded good reputation for the company and it has seen sky-rocketing growth both in the revenues and market share. The only strategic problem that the company must address is that they must ...Show more


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…
Author : skyla97
Samsung Electronics essay example
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