Optimal Market Structure for Samsung

Management
Economics

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
TASK 2.......................................................................................................................................................4
TASK 3.......................................................................................................................................................7
TASK 4.....................................................................................................................................................10
Optimal Market structure for Samsung..................................................................................................10
Government interventions.....................................................................................................................10
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12
Books and Journals................................................................................................................................12
Online....................................................................................................................................................12

INTRODUCTION
TJ. Webster describes that, "Managerial economics is the synthesis of microeconomic
theory and quantitative methods to find optimal solutions to managerial decision-making
problems? The author have made clear that, this branch of management significantly involves the
concepts of Microeconomics and other economic theories as well. Hence, utilization of
economics is made in the management of business. Also this was supported by Hirschey and
Pappas, who defines that "Managerial economics applies economic theory and methods to
business and administrative decision making." According to author, many business
administrative decisions can be helped by Management economics. Its studies are helpful in
undertaking business administration smoothly and efficiently. Main advantage of Management
economics in this context is the assets management in the business. Through the application of
models of Management economics a business can carry out their assets and resources planning,
its management and maintenance as well (Managerial Economics Definitions, 2019).
In this report, the role of Management economics and how its concepts are helpful in
evaluation of business models and various concepts are studied. For efficient understanding of
these concepts, report has taken instance of a very popular business firm in the electronics
industry, Samsung. Also, the discussion here is made regarding specific to TV products of
Samsung. The report first analyzes market structure in which Samsung is operational and how its
business pertains to various characteristics of this market. Secondly, the discussion is regarding
the different market structure that Samsung has faced retrospectively. At last, report analyzes
which market structure is best suitable for company and to what extent government interventions
in that market is useful.
TASK 1
Samsung is one of the largest producers of electronics products in the world. The
company has its origin from South Korea and at present it has its reaches in almost every country
of the world. Samsung has age old specialization in production of wide variety of electronics
products that are helpful in serving needs of variety of consumers, from Individuals to household
to Industries as well. These products include electronic appliances, digital media

devices, semiconductors, memory chips, and integrated systems. In all these years, Samsung has
become one of the most renowned name in terms of technology and electronics products
(Gnanakumar, 2017).
Figure 1: Samsung Market Share
Originally, the company was not have Electronics based business, but it was started as
grocery store in 1938. Later on it went on expanding as Textile business and opened as largest
wooden mill in South Korea. This Textile business grew more during 1970’s and many new
subsidiaries were opened for this company in variety of businesses like Shipbuilding and
Petrochemical industry. First time, Samsung entered Electronics industry was during 1969. The
business grew more in 1970s to a significant range where Samsung was also making export of
electronics products. At present, Samsung is the most significant player in the field of Smart TV
products. The company offers a range of TV products made distinctive with elongated
randomized product codes (Mehra, 2019).
TASK 2
The kind of Market that Samsung operates in is clearly an oligopoly market structure.
The market of such kind is clearly different from other markets in business environment.