Management Economics Assignment: Samsung Market Analysis and Structure

This report provides a comprehensive analysis of Samsung's market position, specifically focusing on its mobile handset business. It begins with a historical background of Samsung, tracing its innovations in mobile technology and its evolution in the smartphone market. The report then delves into a market analysis, exploring Samsung's competitive image and its strategies for maintaining a strong position in the telecommunications sector. It highlights Samsung's innovations, such as its advancements in 5G technology, and its commitment to developing consumer-focused features. The report also examines the market structure of Samsung, classifying it within the oligopoly market, and discusses the critical discussion on types of market structure, advocating for the best fit for Samsung's business. Lastly, the report analyzes the impact of government interventions, considering their role in regulating the market for the benefit of society and minimizing negative externalities. The conclusion summarizes the key findings, emphasizing the importance of continuous innovation in fostering a dynamic and competitive environment within the mobile handset industry.

Management Economics

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Historical background of Samsung with overview on development of its mobile handsets...1
2. Market analysis of Samsung to explore its competitive image...............................................2
3. Market structure of Samsung...................................................................................................2
4 a) Critical discussion on types of market structure to test the optimal structure for Samsung.3
4b) Key discussion on interferences of lesser or greater government interventions Samsung. . .3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Management economics concerns on core business activities of a company, to evaluate its
current position in the marketplace, including ways through which it can enhance. It consists a
number of theories and concepts like market structure, trend analysis, supply and demand curve
etc. that can be applied on companies for economic development (Altamirano and van Beers,
2018). Present report is emphasised on Samsung Company particularly on its mobile handsets. A
historical background of this firm is explored to analyse its innovations in chosen product,
including its market analysis to underpin competitive image. Furthermore, critical discussion is
chosen on various market structure by suggestion which one is best for Samsung to run business
successfully. Along with this, discussion is also made on lesser or greater interventions of
government on the respective field.
MAIN BODY
1. Historical background of Samsung with overview on development of its mobile handsets
Smartphones has become increasingly central for today’s modern life, that offers more than from
communication features. The first 4G service of UK has launched in eleven cities in 2012 that
take the download speeds up to 12mbps (Athey and Luca, 2019). In addition, voice recognition
before Apple launched Siri seems to common place in Google Voice into the market. After then,
Samsung has innovated a built-in heart rate monitor in its flagship Galaxy S5, for capitalising on
growth in terms of mobile health & fitness. In smartphone technology, Samsung is one of the
well-known brand which has first time founded in 1938 by Lee Byung-chul. Its operations are
diversified a range of products, mainly into electronic, telecommunications, manufacturing and
retailing sector. Driven by simple but with profound goal of meaningful creation of innovation, it
has analysed that Samsung has pushed all limits of mobile technology. It has set standard for
what should be smartphone including the features that advancement its growth (Altamirano and
van Beers, 2018). By this advancing in mobile technology, Samsung has built ground breaking
features and deliver creative solutions, which includes Galaxy series, that has helped millions of
people for accomplishing their goals.
Right from the beginning, Samsung has the potential to turn the mobile handsets into a
multi-functional device, where release of Samsung B600 that built-in 10-megapixel camera has
brought up high-quality photography together with communication features.
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2. Market analysis of Samsung to explore its competitive image
Samsung in telecommunication sector has established innovations with a rich legacy, that
has shaped experience of smartphone of millions of people around the world. It has set the sights
on future of Galaxy by focusing more on engineering and breakthroughs technology which
continue to transform its mobile landscape (Yang and et. al., 2020). Samsung is not only
changing features of mobile handsets but also its connecting with throughout the world. It is
working hard to usher in upcoming generation of the connectivity with 5G. It has more 5G
patents as compared with other mobile companies like Apple, Sony and more. It has also given
commitment to putting 5G in hands of consumers with a 5G smartphone in 2019, where series of
Galaxy has created a landmark innovation that opened up Samsung for a world of possibilities (A
Journey of Mobile Innovation, 2019). This company also continue to develop the meaningful
breakthroughs which designed to help consumers to do their most of the work on mobile phones.
So, all these features shown high competitive image of Samsung over other mobile companies in
UK and other marketplace.
3. Market structure of Samsung
In mobile phone sector, Samsung falls under the category of oligopoly market, where few
number of large companies holds overall share of market. While purchasing such products,
instead of price, consumers concern more on brand, type of software and innovative features that
meet their desires (Athey and Luca, 2019). Therefore, to gain competitiveness over each other,
firms that operate in this sector like Apple, Nokia, Sony and more, always focus on creating
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more meaning innovations and capture the market share by advertising their products at wide
panel.
4 a) Critical discussion on types of market structure to test the optimal structure for Samsung
Market structure can be categorised into number of components like monopoly, oligopoly,
monopolistic and perfect, where each one has possessed different characteristics. For example –
under monopoly, entire market power is gained by single unit of business, while oligopoly
consists of both large and small ones whose products are differentiated on the basis of luxury and
non-luxury features (Yang and et. al., 2020). In context with Samsung, as its core business
activities concern mainly on development of technology for innovation. Therefore, operating
business in oligopoly market give advancement to this firm to remain competitive.
4b) Key discussion on interferences of lesser or greater government interventions Samsung
Considering the benefits for society, government mainly intervene when companies
inefficiently allocate their resources. For combatting the market inequities through taxation,
regulation and subsidies, government put greater interventions on operations or production of
mobile handsets, especially for maximizing social welfare (Altamirano and van Beers, 2018).
Such interventions include breaking up of monopolies, regulating the negative externalities like
wastage from production etc. that helps in minimising the adverse impact of production of
mobile phones on environment.
CONCLUSION
It has been concluded from all over analysis of mobile handsets development that
continuous innovation in this sector, leads to create dynamic and competitive environment for
companies which deal in the same. It helps not only firms to enhance their sales and profitability
ratio but also for consumers to do their most of the business or education related work on mobile
handsets, with increasing in connectivity with rest part of the world.
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REFERENCES
Books and Journals
Athey, S. and Luca, M., 2019. Economists (and economics) in tech companies. Journal of
Economic Perspectives. 33(1). pp.209-30.
Yang, J. and et. al., 2020. Challenges of using mobile phone signalling data to estimate urban
population density: Towards smart cities and sustainable urban development.
Altamirano, M. A. and van Beers, C. P., 2018. Frugal innovations in technological and
institutional infrastructure: Impact of mobile phone technology on productivity, public
service provision and inclusiveness. The European Journal of Development Research, 30(1),
pp.84-107.
Online
A Journey of Mobile Innovation. 2019. [Online] Available Through: <
https://news.samsung.com/global/a-journey-of-mobile-innovation>.
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