Samsung's Market

1. Samsung
Smartphone
Shivam Taneja
20DM285

2. Samsung’s Journey:
On March 1, 1938, Samsung was found by Lee Byung-Chull as a grocery store
in Taegu, Korea. They started from trading noodles and other produced goods in and
around the city and sending out them to China and its territories.After the Korean
War, Lee extended his business and entered the textile market and opened the
biggest woolen plant in Korea. He concentrated on industrialization with the
objective of helping his nation redevelop itself after the war. In 1969, Samsung
entered the electronics business with a few electronics centered divisions -
Black-and-white televisions were the first items. During the 1970s the organization
started exporting home electronics abroad. Around that time Samsung was a
significant producer in Korea, and it acquired 50 % stakes of semiconductors in
Korea.
The last part of the 1970s and mid '80s saw the fast development of Samsung's
technology businesses. Separate electronics and semiconductor branches were set
up. Samsung Data Systems (presently Samsung SDS) was set up in 1985 to serve
organization's developing requirement for system development. This helped
Samsung in becoming a pioneer in data innovation sector. Samsung additionally
made two new research and development institutes that widened the organization's
technology line.
The organization kept on making progress on the technology and product quality
fronts, with some of its technology products—extending from semiconductors to PC
screen and LCD screens—moving into top 5 position in the world. The 2000s saw
the introduction of Samsung's Galaxy smartphone series, which rapidly turned into
the organization's most-loved product as well as frequently topped the lists of the
best-selling cell phones on the planet. Since 2006, the organization has been the
top-selling worldwide maker of televisions. Starting in 2010, the Galaxy extended
to tablet computers with the presentation of the Galaxy Tab.
Competative Structure:
Competition between businesses in the world of economics is not always the same
or level.The most well-known types of market structure that are found in the
monetary world are:
 Perfect competition
 Monopolistic competition
 Monopoly
 Oligopoly

3. These market structures have characterizing attributes that different them from one
another and are set up in a unique way that have distinction on how competators
work withiin the market.
The high demand that Samsung gets in the market is based almost entirly on the
market structure of an Oligopoly. Because Samsung made a business strategy that
can rule the market and spot a high concentration on the innovative work of new,
creative products, the firm can offer technologically better products to the buyers
that leads to increase in demand.
The Galaxy S III is an ideal case of this. This specific item is so imaginative and well
designed that it has permitted Samsung to get one of the top seller of cell phones
worldwide and has consistently beaten out the iPhone 5 (Primary rivalry from Apple).
It is a direct result of the dominat share of the market that Samsung controls by
effectively exploring its market structure that allow the organization to produce
endless products and keep its supply sufficiently high to fulfill the need, and in order
to maintain high supply of such inventive products, Samsung is able to utilize a huge
work force for everything from assembeling of an item to innovative work of better
approaches to design, market, and at last offer to its final customers.
This proves that market structures has an important role in how the firm can do
business. By understanding what kind of market structure that a firm is in, that firm
will have the option to check whether the expense of business is worth proceeding to
battle for.
Factors affecting the demand of Samsung smartphones:
Demand is the quantity of services or goods that consumers are willing and able (i.e.
money) to pay during a specified period of time under given set of some economic
conditions. Conditions to be considered includes the price, consumer incomes,
expectations of price changes,availability of related goods, consumer tastes &
preferences, advertisement etc.
 Price of the goods/services:
Cost is a significant determinant of demand. Therefore, demand is highly reliant on
the cost of the products. When looking at the market price becomes the main aspect.
Hence, greater costs would lead us to expect lower quantity demanded because it
would become difficult for customers t afford. On the other hand, if cost is low then
the quantity demanded would be higher in comparision. Subsequently, there is an
opposite connection between the cost of an product and the amount of that product
which purchasers are willing and ready to purchase.

4. Samsung phones are available in all almost all price slabs ranging from Rs 7000 to as
high as Rs 1,70,000. This cover all types of consumers who wants to buy a
smartphones.
 Substitute goods:
Substitutes are goods and services that can be utilized to satisfy a comparative need
or want with an alternate product. For example, going out to see a film and renting a
DVD are close substitutes. In this way, substitutes are items that fill a similar need
and accordingly the customer considers these to be as choices.
Apple, OnePlus, Google Pixels, Vivo, Oppo are few substitute brands which gives a
high competition in the market in almost all price segments.
 Complimentary goods:
A complementary good is a goods that become more attractive when used together.
These are also called complements. The complementary good and the main product
are in a direct relation. If the complementary good have a significant value in the
wholo package then the demand for the primary product will be influenced because
of an adjustment in cost of the product. Thus, it certainly depends on how much of a
complement one product is to another
Few complementary goods to that of a Samsung smartphone are, for example, wired
headsets, bluetooth headsets, cases and holsters, batteries, memory cards, vehicle
docks, etc. Regardless, a telephone charger is presumably the most significant
 Income:
Level of income (current and expected) of the client is a significant determinant of
demand. The capacity of the purchaser to buy the product depends on their income.
If the individual doesn't earn enough to buythe item then he/she will not end up
buying it. The client settles on the choice whether to purchase the item or not by
looking at current income. The buyer may look into expected salary in order to settle
on a choice whether to buy a product.
People with high disposable income will prefer to buy high end samsung
smartphones with latest features and on the other hand people with low disposable
income will go with an average specification phone.
 Trends and preferences:
People have various tastes and preferences which drives us to allot different values
to services and goods that are around us. Style and tastes may influence the value of
the item; it relies upon the industry (design garments VS radiators). Individuals have
various tastes and preferences and therefore each market is framed by individual and
group tastes and preferences. For example, Jennifer Lopez may influence many
other women to follow her fashion trend.
Samsung has become one of the most trendy organizations in the electronics
business. General public opinion shows that Samsung has unexpectedly edged past
Iphone in shoppers perception. This was estimated by using a measurement matrix

5. known as "Buzz score", which is determined by inquiring respondants as to whether
they have heard anything about the organization and the brand over the last two
weeks, through advertisement, word of mouth or news, was it negative or positive?
Factors affecting the supply of Samsung smartphones:
 Price of good or service:
At the point when the customer technology and innovations are first raised in the market
their costs will be high. Nonetheless, their supply should be at peak . Furthermore, the
estimation of consumer electronics decrease quicker than other items, since technology
is progressing so quickly and consistently something new comes out everyday. This
requires brisk response of organizations to the fluctuating costs.
Lets assume, the cost of the smartphones increases then Samsung would want to
supply a greater amount of that item. For this situation, the organization will rely upon
Samsung Group to supply more of that product. Indeed, this cycle takes time to deliver
and transport completed items. At that point, the decided cost for the cell phones can
fluctuate drastically.
 Price of related goods or services:
Under this condition we should most importantly take into consideration that the use of
"related" doesn't mean complimentary goods, yet rather to groups of products that are
manufactured by a similar maker that use similar assets and factor of productions, for
example, machinery or labour. If a manufacturer has the ability to manufacture two or
more unique products using same raw material and similar machinery and equipment,
then he can alternate supply of these goods depending on market prices.
Samsung Electronics packages and assembles different goods – Computer monitors,
TVs, photo cameras, mobile phones, projectors ,etc.
 Price and availability of inputs:
Price and availability of inputs theory states that the accessibility and cost of factors
producing the products or services, for example, labour and raw material has great
influence on supply. As cost of the inputs rises, the expense of production will increase
as well and consequently supply will decrease. In like manner, decrease in the cost of
inputs leads to increase in supply.
Looking at our company, Samsung Electronics its supply would be affected if there is a
change in the production costs. Increase in input price leads to overall increase in the
price of the final products.
 The Level of Technology:
The technology that is used by the organization in its production has an exceptionally
critical effect on the efficiency of the organization. An increase in productivity means
producing more services & goods without modifying the amount of resources, or

6. producing the same services & goods with fewer resources.
From starting of 2012 AMOLED is utilized for cell phones. Makers have investigated and
created in-cell touch panels, compounding the production of capacitive sensor arrays in
the AMOLED module fabrication process. Samsung has delivered their version of this
innovation as Super AMOLED.
 The number of firms that supply the market:
As more organizations enter or leave the market, the market supply curve will bend
inwards or outwards, driving down or lifting up supply, respectively. If there is a major
rivalry in the market it will result decline in price and thus decrease in supply.
The electronics market is very competative and has numerous renowned and big brand
names competing in the industry. Therefore, the net revenues are small and numerous
organizations enter and leave the market
Challenges faced my Samsung:
 The first challenge came when Samsung lost the smartphone crown to Xiaomi in the
September quarter of 2017. In 2019 in July-September quarter, it got pushed to
Number 3 in smartphones by another Chinese player, Vivo. In a similar quarter,
Samsung likewise lost its top position in the market –feature phones & smartphones
– to Xiaomi, after nearly nine years at the top.
 Samsung wasn't as deft as its Chinese adversaries and couldn't exploit the
extension in the online fragment. They anyway added that Samsung can bounce
back, given its interests and investment in technology and local producing, the
reputation of its gadgets and the profound entrance of the offline telephone market.
It's the main significant handset organization to manufacture from the ground up in
India.
 The holes in Samsung's portfolio have given chances to other smartphone brands,
particularly new market contestants, to plan, strategize, recognize the holes, and
influence market openings.
 Samsung's "Brand arrogance has made it think little about the capability of the
Chinese organizations who have now made a specialty in pretty much every value
fragment. Furthermore, their exclusive channel system has bombed them as well
 Samsung cell phones are economic and feature rich, and still the most loved brand
for geeks, particularly the phones which are running on android OS. Yet, ongoing
occurrences shows geeks are stressed over the frequent failure of the phone
hardware and poor services in some regions.
 Samsung is no place near to social media marketing by its Chinese partners.

7. Refrences:
https://www.academia.edu/5364892/Samsung_Analysis_Managerial_Economics
https://www.bartleby.com/essay/Samsung-Company-The-Market-Structure-And-Strate
gy-PS9Y5HN2GQR
https://www.ultius.com/ultius-blog/entry/essay-on-market-structure.html#:~:text=Sams
ung%20Electronics%20operates%20in%20a,Apple%2C%20Motorola%2C%20and%2
0LG.
https://www.britannica.com/topic/Samsung-Electronicshttps://www.britannica.com/topi
c/Samsung-Electronics
https://www.techwalla.com/articles/factors-affecting-the-market-demand-supply-for-m
obile-phones
https://economictimes.indiatimes.com/tech/hardware/samsung-faces-tough-but-doable
-challenge-to-rise-to-top-in-india-handset-market/articleshow/74407419.cms?from=md
r