Samsun Samsung: Case Study: Advantages And Disadvantages Of Samsung

Samsung, founded in the year 1938 in Taegu, Korea embarked on its glorious journey with a small trading business. Since then the company has transformed into a colossal multinational conglomerate. Over the coming 2-3 decades the company the company ventured into retail, textile and food processing mainly. The company around the late 1960s entered into the business of manufacture of electronic goods, the first product being the black and white television in 1970. By late 1980s the company shifted all its efforts to be a major player in electronics and technology market. The company also became a major producer of memory chips and LCD screen systems. By 2000-2010, the company also invested heavily in the mobile phones and smartphone development securing a dominant market share
Refer Illustration 1: (Samsung , n.d.)
Major Competitive Advantages for Samsung mobile company: …show more content…
And because of such market dominance, the company can be more experimental with pricing strategies, designs and features of any segment of the mobile phone industry without bleeding too much in revenue, profits and customer base. The company enjoys years of expertise in the electronics industry. So, it becomes almost next to impossible for any market entrant to match the same level of technological competence. Another major advantage that the company has is self-dependency for major smartphone components, such as LCD screens, memory chips, and semiconductor. So, it doesn’t have to deal with any issues regarding delays, advance order placements, and cancellations. The component factor also attributes to lower production costs and higher profit