Samsung And The Global Mobile Device Marketplace

There are many competing brands of smart phones and Samsung has reported a decline of profits in 2014. Information from GSM arena shows than Samsung released 54 new phone models in 2014 , compared with 24 by HTC , 11 Motorola and 2 by Apple, leading to increased production costs and lack focus on a specific customer segments thereby losing some of its competitive advantage (GSM Arena , 2015).The lack of popularity of its own OS (Tizen ) and dependence on Google’s Android platform makes it vulnerable on google to develop an “ecosystem”. There are component integration issues as well as loss revenue from potential App sales (Strategic Mangement insight , 2015). Negative publicity from litigation due to patents are likely to continue as technology patents are vague and Samsung with is large portfolio is likely to infringe on some of the patents (Tibken, 2014).

In the modern world of technology, many different companies are attempting to secure their own ground in a particular market. Many companies work in many tech fields & some company focus on software, some on mobile phones, others on television but one of the most recognizable names in the technology field is that of Samsung.

Samsung products range from mobile devices, TV, audio and video, home appliances, cameras, PC and peripherals and print solutions (Samsung 2014). This essay will predominantly look closely at Samsung’s mobile phones market.

In the year of 1990s Samsung has expanding and globalizing their business especially in electronic, particularly mobile phones and semiconductors, have become its most important source of income. Samsung have been operating over 50

Samsung maintained #1 leadership in the global smartphone market with a 24.6% share in 1Q15, 6.3% above Apple. This 9.7% consecutive expansion is mainly because of steady demand for the Galaxy S series flagship smartphones in general, and also heightened shipments of lower-end models, especially to areas such as Southeast Asia, the Middle East, and Africa. Samsung 's modernized sleek collection of devices, including the new premium inspired A-series, demonstrated favorable in many mid-tier markets that were typically dominated by local brands (Ma, 2015).

Samsung is the number one by market share in televisions and mobile phone sales and some of the software parts (processor, memory chips and so on). This was largely achieved due to excellence in engineering and both efficient and effective production. Samsung is the world’s number one marketer of mobile phones with 21.4% of the world’s largest market share in the second quarter of 2015. Apple is number two with 13.9%.

Samsung is a well-known and acknowledged industry leader in the digital arena. The digital powerhouse strives to create superior products and services hoping to improve the lives of their customers around the world. Samsung has diversified their company products from consumer electronics, to telecommunications, home appliances and now a smart car. Samsung has shown that the successful diversification that it has been able to integrate into its operations has become an essential element in the company’s strategic plans. Samsung’s technology products include the screen technology, TVs, batteries and chip design. It also has manufacturing operations such as general manufacturing which comprises semiconductors and components, system production which involves applications and software and the device assembly packaging like the label assembly and batteries (Hong, 2012).

With all the capabilities and features that smartphones can offer, it is no wonder that the industry continues to grow on an annual basis. In fact, by next year it is estimated that there will be 2.6 billion smartphone users worldwide; that is a third of the world’s population (Statista). With a potential customer base like that, it is very important for an industry leader such as Samsung to have facilities in place that can manufacture and produce a high volume of smartphones.

SAMSUNG is preparing to launch a new multimedia Smartphone- SAMSUNG GALAXY-S in a maturing market. Despite the Smartphone leaders i-Phone, HTC, O-2, NOKIA and others “GALAXY-S” can compete because this product offers a unique combination of features at a value-added price. SAMSUNG is targeting specific segments in the consumer and the business markets, taking advantage of opportunities

Beginning with an understanding of supply chain management, Hill et al. (2015) defines the task as managing the components from suppliers and the flow of inputs used in production to maximize inventory turnover, while minimizing inventory holding. Competing in the smart phone market requires Samsung to use innovation, a source of competitive advantage, possibly leading to high profit gains if production costs can be reduced and quality can be improved (Hill et al., 2015). Should Samsung succeed in producing high quality at a low fabrication cost, they could compete with Apple, for example, and possibly earn higher profits to match their large market share, which currently does not match their profits.

Samsung should procure hardware supplies for its mobile portfolio. Furthermore Samsung should make advance contracts with the services which are outsourced from other manufacturers to maintain readily flow of products to the consumers, thereby meeting the demand and supply cycle.

In 2012 quarterly report, Samsung, known as the major player in mobile phone industry, stood as the fourth in world phone sales and its profit have smashed for the fourth quarter. Following this, the 2014 quarterly report still showed a decline in revenue and sales, as BBC News states that the net profit dropped to 23.4 trillion won, which is a 27% fall from 30.5trillion won in 2013. On the other hand, Samsung’s competitor Xiaomi marked itself as the top smartphone company of the year 2014 in China with a 12.5 percent market share, beating Samsung that had positioned itself the first in sales. Xiaomi put out low-mid range priced phone as a strategy with a fairly high quality specs and design for its price, threatening all other competitors.

Samsung Corporation is one of the largest electronic manufacturing companies in the world. This is a Korean conglomerate business. Their mobile phone manufacturing holds the number one position according to the sales unit as at third quarter in 2013 (Gartner Inc. 2013). Samsung mobile have both Smartphone’s as well as featured phones. Samsung Smartphone leads the Smartphone sectors as well holding 32.1% market share. Their main competitors are Apple in Smartphone and Nokia in featured phones. Samsung Mobile highly trusts on innovations and they have introduced many innovative ideas to the mobile phone users. Their latest innovation is the Galaxy Round, a Smartphone with a curve screen. The business philosophy of

Samsung Mobile will introduce a brand new Samsung Galaxy S8 model in March 2017. It is one of the largest mobile events of the year since Samsung is very popular and is the most competitive product against Apple iPhone. Samsung Mobile is a brand of the Samsung Corporation and this particular brand is very familiar to a lot of people around the world. Many appliances made by Samsung, such as washers, dryers, and TVs, are very famous. Samsung’s mobile industry was very new to the market 10 years ago. However, technology and convenience made Samsung mobile phones become some of the most popular devices in the 21st century. Their products have been sold to millions of consumers and Samsung Mobile’s products continuously rank as best sellers. I

The success of the electronics business has led Samsung from not just being an industry leader in technology but also ranks as a top 10 global brand. This digital age has brought about revolutionary changes and opportunities to global businesses and the response of Samsung to these advancements in the field of technology, competitive products and constant level of innovation has showed promising results. Although it involves a line of multifunctional smartphones which is the new face and looks, the company has been around developing and making strides in the electronics field since 1983.the parent company of Samsung mobile, Samsung electronics was founded in 1969. From the development of televisions to newly customized home appliances, Samsung Mobile’s new a leading competitor in the smartphone business in India along with Micromax and Karbonn.