Management Economics: Assessment 2

MANAGEMENT ECONOMICS:
Assessment 2

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Describe the business and its products & services..................................................................1
2. Analyse the market structure in which company operated since its inception........................2
3. Evaluate the characteristics of pervious market structure of Samsung Company...................4
4(a). Critically evaluate the different market structure................................................................6
4(b). Suggest that greater or lesser government intervention is good for the society or not.......6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Economics is a branch of science which is related with production, distribution and
consumption of products and services in an economy (Callan and Thomas, 2013). In present
report the knowledge of management economics is used to develop an understanding regarding
economic concepts and the impact of economic government policy effecting managerial
decisions of a business organisation. For the fulfilment of this purpose, the organisation which
has been selected to focus upon is Samsung. It is South Korean based multinational company
which is established in 1938.
This assessment covers the several topics such as description of the selected business
organization and range of products and services which they offer. In addition, also evaluate the
current or historic market structure of selected entity and characterises. Along with this, critically
evaluate the market structure in which business operated and suggest that government
intervention is good or not for the society.
MAIN BODY
1. Describe the business and its products & services
Overview of the business:
Samsung is a multinational South Korean corporation with headquarters in Samsung
City, Seoul. It is also the largest South Korean conglomerate business and includes various
affiliated businesses, most of them united under the Samsung brand. Company was founded in
1938 as a trading firm by Lee Byung-chul (Armstrong And et.al., 2019). The group diversified
within the next 3 decades into fields that included food manufacturing, textiles, banking, shares,
and distribution. Samsung has a strong impact on South Korea's economic growth, government,
news & culture and has been a significant driving force behind the "Han River Miracle". The
companies generate about one-fifth of South Korea’s overall exports. Samsung's turnover was 17
per cent of South Korea's $1.082 billion GDP.
Products & services:
There are several Smartphone ranges offered by the Samsung Company which help the
customers to satisfy their demand as per the requirement. Samsung Galaxy Note, Samsung S
series, J series, Samsung Galaxy J5, Samsung Z4, and Samsung Galaxy Core Mini etc. is the
series of smart phones offer by the Samsung Company. Consumers can pick any mobile phone
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according to their requirements or budget, which will help them fulfil their needs. For this
report, Samsung is chosen as it is one of the major cell phone companies and it has large market
shares. Below mention graph provide better understanding that how market share of Samsung
Company changes over the time.
Samsung's primary mobile model range is the Galaxy series that was first launched in
April 2009. The company's mobile sales steadily rose from 2.4 million in the beginning of 2010
to 74.1 million in the 4th quarter of 2017. Over the years Apple has steadily been its nearest rival
while other brands like Lenovo and Huawei have also expanded their market share for
Smartphone. Apple is the world's only largest mobile maker, with the firm shipping more than
215.8 million iPhones globally in 2017. Huawei is the 3rd largest mobile maker with 10.2 % of
market share as of the fourth quarter of 2017. In 2020, market share reduces due to corona virus
spread and government take action and announce lockdown in the country.
2. Analyse the market structure in which company operated since its inception
In context of Samsung organization, from its inception company deals in Oligopoly market
structure because that time there was very few competitors in mobile phone industry such as
Apple and LG. But now, company has lot of competitors along with previous one such as,
Xiaomi, Realme, Oppo, Vivo, Huawei, Motorola etc.
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