Samsung

Besides, there are always many new entrants enter the market with the flow of labor and capital (Laudon, 2014, pp. 124). Although the requirements for the entry to the mobile market is relative higher than others, the number of new entrants are considerable while customers are more selective. As a result, those companies like the T-Mobile in this case that are lack of competitive advantages will be omitted by customers. As for the substitute, the development of entertainment tools decrease the desire of the mobile phone although there is little instrument can replace the mobile phone

Trends in the market include the growing number of people within the 15-29 age range. Also, phones are being used for much more than just calling, other functions like texting and music playing capabilities have dominated much of a user’s data usage. As for market characteristics, the mobile industry has reached almost 50% penetration with about 130 million subscribers, and reaching its maturity. The cost structure has been very confusing for consumers, with hidden fees, overcharges, and lacks to reward users who do not use their plans to the max. And finally, channels include all service provider stores and retail consumer stores, for example, Target, Walmart, and Best Buy.

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).

Unlike the cell phone in1995, cell phone can do no more than just make a phone call. People can use it surf the Internet, play games, read e-books, take photos and videos, and so on. In addition, the mobile technology also favors people’s work a lot. People do not have to work at offices. They don’t have to worry about the unexpected work problems occurred during their vacation since they can deal with it by the mobile devices distantly. Another application on work is the use of CRM system. By viewing customers’ information on the tablets or mobile phones, sales can access customers’ information within a limited time, such as on their way to see customers so that they can provide thoughtful services (Business link, 2012). Finally, mobile technology makes life easier as well. In the past, you could see most tourists hold a map on the street, while they use the GPS and even tour guide applications instead of it nowadays. Besides, people can get the weather information anytime they want through the mobile devices rather than only through the newspaper, radio and TV. Generally speaking, with the advanced mobile technology, people benefit a lot from it.

Samsung is a South-Korean company and its headquarters is in Samsung Town, Seoul (Samsung, 2014). Samsung is made up of 80 companies together. At present Samsung branches exists in 61 countries. Samsung is one of the world 's leading manufacturer in the Android mobile (smart) phone industry. Samsung after releasing the smart phones in the name of Samsung galaxy series which started with Galaxy Y basic model. Later Samsung released S series which got overwhelmed response all around the world. On 24 February 2014 Samsung released Galaxy S5 which was an immediate and quick successor after Galaxy S4 the previous model. When designing the Galaxy S5 Samsung worked on the drawbacks of the previous models and improved camera quality, running speed, finger print reader, private mode, dust and water resistance (Andrew, 2014). In this analysis I have researched and proved that Samsung organization used Integrated marketing and communications on basis of their target audiences, message strategy and media choices.

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.

Smartphone market is fast-moving and very high competitive due to intense competition between two big smartphone producers, Apple and Samsung. At the beginning, Apple dominated this market solely by introducing a new innovative type of smartphone by Steve Jobs that has revolutionized people lifestyle and mobile industry. A few years after launching iPhone, a new fast following competitor, Samsung came into this market, and their sales have outperformed Apple from the year 2011 (According to Chart A1 in Appendix). In term of developing their product, Samsung has created its products by following Apple’s technology since the beginning of producing its smartphone, therefore there are many patent lawsuits between them. Since Steve Job passed away, Apple has continued to develop its core competence, which is an innovation of new type of smartphone that could help them to take back their market share from its rival, Samsung. Nonetheless, the competition between Apple and Samsung will still continue intensively in the future.

Two of the most important environmental factors I think are relevant to the customers of the Samsung phone are price and social (Principles of Marketing, 2015). Price is a major factor for potential consumers. Many people will not purchase a Samsung phone if the price is out of their budget. There are various models at various pricing available, however, there are also other companies that offer a phone with just as many features, for a lower price (ex. HTC). Many potential consumers will not purchase a phone the same day their research begins. There is a lot of comparing and evaluation that takes place. The price is controlled by the marketer, however the reason buyers make their decision is not controlled by the marketer (Principles of Marketing, 2015). The social aspect is also an important factor. Many people use their cell phone as a primary source of communication. Their choice to purchase the Samsung phone could majorly rely on whether or not many of their friends have that make/model. There are also many additional features phones have if two or more people have the same phone (video chatting, similar apps that allow texting to be quicker and more efficient). If communicating with friends/family is a priority, this could mean a make or break for purchasing the Samsung phone.

In the article An Analysis of Young People’s Use of and Attitudes Toward Cell Phones, authors are focus on explain and analysis young adults’ usage of cell phone from psychological and behavioral approaches (Aoki & Downes, 2003). The research by Aoki and Downes suggested that the purposes of young adults using cell phones are variety, which include to gain sense of security, receive benefits on financial filed, increase the efficiency of manage time and communicate with others (Aoki & Downes, 2003). Although the cell phones are widely used by people, the attitudes toward cell phones are greatly different among different people. For instance, in this article the authors have mentioned that for the users who have security or safety conscious, the reason of they use cell phone is in for security reason like in case of emergency situation, and cell phones is least enter into their lives. Whereas for users who can be considered as

Company Background: Samsung is a South Korean multinational company those starting its business as a small trading company and right now becoming world largest corporation. The company deals with its business in several sectors such as advance technology, finance, petrochemical, semiconductors, plant construction, skyscraper, medicine, fashion, hotels, chemical and others. The company was established in 1969 in Suwon, South Korea and known globally for its electronic products (Kelly, 2011). The company is manufacturing several latest technologies, electronic appliances such as mobile phones, tablets, laptops, TVs, refrigerators, air conditioners, washers and other products. The company runs its operations and sales its products in 61 countries with approx 160,000 employees in all over the world (SAMSUNG, 2014). Moreover, the company acquired the position of the world biggest IT maker in 2009 by beating the Hewlett-Packard (HP) previous leader. Its sales revenue in the segment of LCD and LED is the highest in the world. Furthermore, Samsung also becomes world leader in the segment of tablets, mobile phones and gadgets.

Samsung is able to achieve and maintain its low cost position due to various factors. Samsung has always emphasized on process and production efficiency. The company places all its fab lines and R&D facility at a single site, so that engineers from various departments can come together to resolve any process or design issues as soon as possible. Benefiting from the collocation, Samsung achieved an average of 12% construction costs savings. Also, as seen in Exhibit 7a, Samsung is able to keep its fully loaded costs below that of competitors. The lower cost is mainly attributed to lower raw materials cost, perhaps due to better

Samsung Electronics as of now stands as one of the world 's biggest sellers in the mobile phone and smartphone markets fueled by the ubiquity of its Samsung Galaxy line of gadgets. The company is additionally one of the biggest sellers in the tablet PC business on account of its Android-based Samsung Galaxy Tab line and is for the most part viewed as spearheading the phablet market through the Samsung Galaxy Note Family of gadgets.

Samung galaxy s6 and s6 edge has helped samsung to be at top level in the smartphone market and approximately 12 million sale of samsung s6 and s6 edge mobile in March quarter. The recent Samsung Galaxy S6 launch has held Samsung retain its footing as the world’s leading smartphone player, a new survey has revealed.Market research firm TrendForce has declared its final numbers for the first quarter of 2015, as well as its expectations for Q2.It makes great reading for Samsung, which apparently boasts 27.8 per cent of the smartphone market, with Apple holding firm in second on 19.9 per cent.The market analysts have suggested the South Korean firm’s dominance is largely driven by the new Samsung Galaxy S6 and Samsung Galaxy S6. [The] Galaxy S6 and S6 Edge have greatly captured consumers’ attention in the first quarter, “The S6 Edge in particular has created a buzz with its main feature – a touch screen that curves to both sides of the phone.”Despite the

If we take into consideration certain brands, for example Samsung and Apple that were mentioned earlier, not only income but also such factor as price of a substitute good arises. There are no particular substitutes for smartphones in general, but the smartphones themselves play a substitutive role inside the market. If the income of the customers is high, then they can afford themselves to purchase rather expensive phones, iPhones or high priced models of Samsung for instance. People with lower income that will to buy a smartphone can allow buying low priced ones. According to law of