Factors Influencing Demand and Price Elasticity of Samsung Mobile Phones

MANAGEMENT ECONOMICS: Assessment 1

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Business products & services..................................................................................................1
2. Identify Demand and Market Equilibrium and factors which affect the demand of goods &
services........................................................................................................................................3
3. Identify the factors which influence the price elasticity of demand........................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Managerial economics mainly applies the economic philosophy to the management issue.
Management theory can be seen as theory that can be applicable to solving problems at the
business level (Archer-Brown and Kietzmann, 2018). This helps the company leader to conclude
and evaluate matters. It is being used to evaluate the consequences of market decisions and as a
means of defining and quantifying the complexities in a situation. Managers take advantage of
some sort of economic concepts to make everyday decisions. This report selects the Samsung
mobile phone company which is one of the leading Smartphone Company of the world. This
assessment covers the several topics such as description of products and services of the selected
company identify the factors which influence the demand as well as price elasticity of demand. It
will help the managers or senior management to formulate effective strategies in respect of the
organization to maximise the production as well as profitability.
MAIN BODY
1. Business products & services
Overview: Samsung is a global South Korean corporation with its headquarters in Samsung
City, Seoul. This includes several related firms, most of which are grouped under the Samsung
name, and it is South Korea’s biggest chaebol. Samsung was established in 1938 as a trading
company by Lee Byung-chul. Officially started the electronics business in the late 1960s but
their targets or big market share in the mobile sector are doing quite well or willing to achieve.
The firm is one of the world's largest names on the mobile market (Deming, 2018). It recently
created Smartphone running Tizen OS, as an option to its phones built on Android.
Products and services of Samsung Company:
Samsung Company offer several range of mobile phones with different features which
make them unique from others and as per the customers requirement. Range of Samsung Galaxy
Note, Samsung S series, J series, Samsung Galaxy J5, Samsung Z4, Samsung Galaxy Core Mini
etc. are the range of mobile phones which Samsung Company offer. Customers can select any
mobile phone as per their requirement or budget which helps them to satisfy their need of
Smartphone. Samsung company is selected in this report because it is one of the leading mobile
phone company and it has huge market shares which clearly mentioned in the below graph and
statistics.
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