Samsung : Marketing Strategy For Samsung Essay

1092 Words Feb 18th, 2016 null Page
Samsung as a company is weak in the fact that it focuses on too many products. Kovach (2014) states, “We’re already seeing signs that Samsung’s strategy in 2014 is to essentially flood the market with as many different types of tablets as it can.” The problem in too many products is that it leads to the problem of product differentiation (Finch, 2012). Samsung by offering too many tablets may fragment their production and this may discourage investors who may feel like the streamlined production is more stable in the long-term. Another weakness is the low profit margins obtained from the big volume sales of Samsung tablets compared to other top vendors such as Apple. Apple Company has throughout the years managed to maintain their premium brands and enjoy a global market (Cecere, Corocher & Battaglia, 2015). Samsung on the other hand capitalizes on being competitive through low pricing. They may enjoy a larger target population, but the profits turned up are low compared to those of Apple. A marketing strategy for Samsung to overcome the low profit margins would be to increase the price of their products. Samsung also is weak due to the fact that their operating software is obtained from other companies such as Google (Global Value Chain Analysis, 2012). The operating software itself contributes to the profit margins of a company and for this reason, despite the increasing share capital of the market, Samsung remains weaker compared to Apple who have their own OS.…

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