Role of Managerial Economics in Samsung TVs

Samsung TV’s

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Role of Managerial Economics...................................................................................................3
Rationale behind Samsung TVs...................................................................................................3
Demand and market Equilibrium.................................................................................................4
Price elasticity of demand............................................................................................................6
Luxury vs. Necessity:..................................................................................................................7
Pricing Policy...............................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Samsung is South Korea based, a multinational corporation that operates in various types of
industries, such as: advanced technology, finance, fashion, etc. The company was founded in
Suwon, South Korea in the year 1969 and is well-known in the world for its electronic devices.
Smartphones, laptops, printers, TVs, microwave ovens, air conditioners, etc. are among the
company's cutting-edge electronics and electronic appliances. (Samsung, 2018). With nearly
160,000 workers around the world, the organization operates and sells its goods in 61 countries.
Furthermore, the company succeeded HP as the largest IT maker in the whole world in the year
2009. In the world's LCD and LED divisions, it has the largest sales revenue. It also surpasses
Apple in the market for tablets, smartphones, and other electronic devices.
The report's ultimate goal is to express how important the management economic role is at
Samsung, so as to promote sound decision making, ensuring the adequate control structures are
in place, optimize economic efficiency, and it also assist in ensuring long-term sustainable
development. The product chosen for this report is ‘Samsung TV’s’.
MAIN BODY
Role of Managerial Economics
A managerial economist assists management by applying analytical expertise and
specialized methods to dynamic problems of effective decision-making and efficient
organization in the future. Managerial economics is a branch of finance and economics
concerned with the application of economic principles to companies. The use of statistical
methods to apply economic theory to pricing, operations, risk, acquisitions, and development
helps businesses make decisions and decide strategy. Managerial economics' ultimate goal is to
improve the quality of business decision-making in order to maximize profit.
Rationale behind Samsung TVs
The television set has progressed in leaps and bounds with the advent of technology. The
journey began with black and white and progressed to color mode, followed by CRT TV,
plasma, LCD, LED, and now 3-D TVs (Meltzer and Murtaza, 2018). Despite the fact that the last
two categories are relatively new to the market and are prohibitively costly, they will have to go
a long way to achieve significant market share.