Samsung's Market Dynamics: Analysis of Strategies & Structures

This report provides a comprehensive analysis of Samsung's market strategies and structures, focusing on the company's evolution from its early days as a grocery trading store to its current status as a global electronics leader. The analysis covers Samsung's product market, specifically the Galaxy M52 5G smartphone, examining its market performance, target market, and marketing strategies. It also explores the challenges faced by the product and discusses Samsung's historical market structure, which transitioned from a near-monopoly to an oligopolistic market and potentially towards monopolistic competition due to increased competitors. The report highlights Samsung's ability to maintain its competitive edge through innovation, quality products, and effective marketing strategies, despite challenges from competitors and evolving market dynamics. The document concludes by acknowledging Samsung's strategic positioning in an oligopoly, emphasizing the company's ongoing efforts to adapt and thrive in a rapidly changing market environment.

Samsung

Table of Contents
INTRODUCTION................................................................................................................................4
MAIN BODY ......................................................................................................................................4
Overview of Company ....................................................................................................................4
Analyse the market of Samsung .....................................................................................................5
Market Structure Analysis of the Company....................................................................................6
Company operating in a different market structure ......................................................................8
Government Intervention ................................................................................................................9
CONCLUSION .................................................................................................................................10
REFERENCES...................................................................................................................................11

INTRODUCTION
Samsung is the biggest electronics manufacturer company and the company was established
in Korea. Samsung was established in 1938 by Lee Byung Chul. The company is chosen for this
report is Samsung and in this report the research is prepared on their smartphones which is highly
consumed by users. The other main purpose of this research is to get knowledge that in which way
organization provides best quality smartphones or services to consumers. This research is totally
prepared on effective marketing strategies, operations and their departmental functions. This
research is also based on previous magazines, articles, journals, financial budget and graph and so
on. This research also shows that in which way organization produce the unique and different
smartphones from other competitors. It is also gives better understanding that according to current
trends how organization facilitate best quality services to consumers.
MAIN BODY
Overview of Company
It is the world's largest manufacturer of electronic devices and is headquartered in south
Korea. Samsung is highly specialized in producing wide range of such as industry electronics,
digital media devices, semiconductors, memory chips, integrated systems and so on. In early years
before doing mobile market organization run their business as a grocery trading store in 1938.
Before starting electronic market they have other businesses also such as textile, insurance and so
on (Bahn, O., Samano, M. and Sarkis, P., 2021). At that time organization is highly focused on
industrialization which is necessary for increase the development in country. In 1970s company
expanded their textile producing process to cover the overall line of production with help of high
quality raw materials. Then in 1969 Samsung entered in electronic market with various electronic
divisions such as black and white TV. Then in 1970 organization started to export home electronic
product overseas. Then due to development of innovative and best quality products Samsung was
rapidly expanded in field of technology business. This will also helped Samsung in business to
became top leader in information technology services. After became high brand in market company
started to make heavy investment in research and development for improve their product and
quality. It includes electronics, semiconductors, telecommunications, aerospace, nanotechnology
and so on. Today Samsung is highly popular because firstly Samsung always maintain their brand
image with help of best quality products. Secondly, organization highly focused on innovation, new
specifications in their products which is essential for customers. Thirdly established their service
centres in every locations which helped to increase the customer convenience. For maintaining the
brand image and reputation Samsung always provide their services with proper updates especially

in mobile. Good service also helped to receive positive feedback from consumers which leads to
increase the profit and productivity of organization.
Analyse the market of Samsung
It is a proactive analysis of market which creates demand for a market product or services. In this
method some factors are involved to influence the demand for a product or services. Those factors
are price, location competition and so on. In this report Samsung galaxy M52 5G are chosen as a
product for market analysis. In context to Samsung, galaxy M52 smartphone is taken into
consideration as a product of company for market analysis. The main specification of this product is
Samsung galaxy M52 (5000mah battery with 5g technology) . Given below is the market
performance of the product:
Market performance of the products: In market the performance of this product is very good in
comparison with other brand smartphone such one plus, apple. The other reason for sustaining their
product in market are in this product user get 11 5G bands. Due to eleven 5G bands this phone
become the futuristic and long term usage device for consumers and this phone is comes under mid
range category. But other brand are not able to provide this facility because they are not think like a

futuristic. In this phone some issues are also there such as like other brand they removed had phone
from this phone which creates negative impact on company. In this phone company added some
unique features which highly attracted the customers in market. It includes secure folder, Samsung
pay and so on. Secure folder is a combination of hardware and software programme which gives
high security to user confidential information. This type of high security feature are only given by
Samsung.
Target market of the product: It is a group of potential customers which was identified by
organization to sell their product and services. Basically this product is a midrange smartphone. But
the main purpose of organization is to facilitate high quality products in middle and upper class
families. Because this smartphone are expensive in after comes under mid range segment also. And
there specifications are unique from other competitors in market. This product are easily purchased
by upper class family due to its mid range. This can influence higher class to get attract towards its
specifications and product value. Upper middle class are also eligible to afford this smart phone.
Teenagers and adults are the target market to need to get attract towards this product for high
benefit.
Market strategy of the product: It is a process which allows organization to focus its limited
resources on the greatest opportunities for increasing product sales and also to achieve a sustainable
competitive advantage. For using effective marketing strategy effectively in market, they used
unique ideas, creativity to popularize product in market. Market strategy is highly important to grab
the target market because it includes various tactics that help in grabbing the attention of the
customers towards the offering of the company or business organization. Due to better relationship
with client in market organization tried to take advantage which will help achieving the goals of the
marketing strategies in a better manner. Also , this will help in bringing higher level of efficiency in
the business operations that will ultimately help in giving tough competition to the competitors.
Challenges faced by the product: There are different challenges that the company may face which
may turn out into failure or success of the company is highly important to deal out with the
challenges in order to maintain high level of efficiency while executing the business marketing
strategies. The first and foremost challenge is that there are better competitors who are already
existing in the market which may grab the attention of the customers resulting in the loss of target
market. The second challenge is that the company needs to invest huge amount in the research and
development of the products so that they can bring higher level of technological advancements in
their offerings. In addition to this, the loyalty of customer is highly dynamic in the competitive
environment. As there are already many brands there is an uncertainty of the brand loyalty from the
customer perspective. Therefore it is highly important for the respective company Samsung to

address these challenges in the most efficient and consistent manner to achieve success in long run.
3. Different Marketing Structures
Market can be defined as the place and situation where consumers and marketeers
elaborated as - buyers and sellers comes into contract for purpose of purchase and sales of
commodities and services. Market structure at now can be explained as the total number of firms
operating in an particular sector/industry, nature or type of competition among these companies and
the nature of products. It depicts, how firms are categorised and differentiated on the type of
products they sells in terms of composition 'homogeneous' or 'heterogeneous' and how these are
influenced by external or internal market forces (Maioui and et. al., 2020). Market structure can be
determined and influenced by number of marketeers and consumers, degree of concentration, ability
to negotiate prices, degree of heterogeneity of commodities and limitations or ease of entering or
exiting the market.
Samsung is a diversified company that ventures in mobile, computers, televisions,
electronics, constructions, insurance and may other sectors as a conglomerate organisation. The
major subsidiaries and affiliates of Samsung are Samsung Heavy Industries, Samsung engineering,
Samsung Digital and Samsung Electronics. Viewing to the economic status, Samsung is a very
predominant conglomerate in South Korea as well as across various countries throughout the world.
Although Samsung has many competitors like Apple and Huwai but products of Samsung garners
to consumers of all types from low to high income groups.
In the starting, the Samsung's products were in Monopoly due to very less producers in
smartphone and electronics products. This form of market structure is characterised as a market in
which only single producer exists and that controls the market. With this type of market, barriers of
entry are extremely rigid because of tactical challenges that an existing firm could raise by
manipulating its prices and forcing the new companies to extinction. This leads to rule of single
company over the market who is the prime price decider.

Samsung has extensive market that covered many countries across the world, with its
diverse products and satisfy various needs of customers. The market structure of Samsung was
observed as an oligopolistic market as few companies along with it were indulged in producing
commodities that covered the whole market. These companies were able to dominate the
marketplace, expensive research and development of new innovative products and technologies. By
manufacturing superior-calibre products to attract consumers and rise the overall demand were
attempts of these companies. The Samsung's products are so innovative, technologically
modernised and well designed that it stands among the top sellers of mobile phones globally and
has constantly beaten many brands on persistent basis. Historically, Samsung holds dominant share
of market by successfully simulating its market structure that allowed it to produce sufficient
products that helped it to constantly maintain its supplies to fulfil consistent demands.
In current scenario, markets are changing with consistent fluctuations in technology,
behaviour of people, trends and fashions, and other factors(Wodociag, Lutz and Ghislieri, 2020).
Market structure of Samsung could also transform towards monopolistic competition from
oligopolistic situation as the number of competitors in the market raised in various economies of the
countries where Samsung sold its products. It is a type of imperfect competition where many
marketers are supplying products that are of similar industry but differentiated in terms of quality,
quantity of products (Schillewaert, 2021). In this form of market structure the firms acts as price
influencers for their products and they can set, lower or rise the prices as they sell individualised
products. The entry by competitors in the market and number of producers significantly rose which
lead to the availability of many producers in the market but they all offered differentiated products.
Samsung always maintained its quality and opted technological advancements that helped it to keep
ahead of new entrants. Samsung has diversified into many sectors or industries and covered a huge
market owing to its advanced products, to dominate and influence global market. A market in
oligopolistic completion does not have barriers to entry or less barriers for entry of buyers as well as

sellers and allows number of companies to take part in the market. Minimum entry barriers means
new firms can continuously enter, competition among the companies to produce quality products
and decline their costs will lead to an optimum economy.
Samsung is a tough competitor that has extensive market share in many countries globally
because of its quality, innovation and affordable product costs for customers. These facts, like
Samsung's competitors such as Apple, Xiaomi, Techno, Motorola, LG, Dell, HP, Kodak etc. In
various industries such as televisions, cameras, electronic appliances, computers, mobile phones,
tablets, laptops and many other suffices that company currently faces monopolistic competition.
Company operating in a different market structure
According to above mentioned information it is understood that organization is following
the oligopoly strategy and this strategy has various benefits which are described below -
 High Profits – In this stage organization received high profit in the form of large market
share and revenue. Because due to his size company has the potential to bring large amount
of profit by serving best quality smartphones to consumers (Gissey, G. C., Dodds, P. E. and
Radcliffe, J., 2018). For attracting large number of population towards organization need to
fix the average and affordable price in their products. This strategy is also needed to apply in
all customer segments which leads to increase the sale of their product.
 Simple Choices – In this stage organization tried to make consumer choice simple. For
making user choice simple organization divide their mobiles in various segments. E.g.
company manufacture their mobile phones according to various customer and price
segments. This type of dividation makes customer choices easy because in this strategy
consumer needs and wants are divided in aspect of specification and price. And then
according to that user purchase the product.
 Competitive Prices – In this stage organization set their which is based on competition and
mostly favourable for users. And this is a very important strategy for organization because
without good pricing strategy customers are not easily attracted. This strategy also important
for service in market between the competition. In competition if organization have reduction
in profit then company lot loss in organization.
 Better information and goods – In this step organization provide the correct and accurate
information regarding their product to consumers (Hussain, H. I., Zainal Abidin, I. S., Ali,
A. and Kamarudin, F., 2018Kustova, I., 2018). It is very important part for customers for
buying the product easily. Because without reliable information and content buyers are able
to compare and purchase the product. For maintaining trust and good relation between

customer and organization reliable information is important.
Government Intervention
In context to society government intervention is important for keep the control in
organization. Because without government intervention used marketing strategies for their own
benefits only. And free intervention market gives everybody to earn profit illegally( \
Marczinkowski, H. M. and Barros, L., 2020). Government interventions are also important to
maintain the inflation and deflation stability in market which was mostly occurred by organization.
Due to high investment in research and development their products are manufactured costly and try
to sell their products in high price. But due to government intervention barrier they forcedly set
their affordable or average prices which is a advantage for people. It also helped to reduce the
discrimination between all categories of people in price (Naik, P. and Reddy, Y. V., 2021). This
barrier also pressure the organization to provide best quality products and services to clients. It is
very important for organization to maintain the accountability. It means to maintain proper account
records regarding sale on every day basis. Because it is necessary for organization that they must
submit their tax according to production. In field of information and technology also government
created barriers as a intervention such as provide proper and reliable information to people. Because
if organization facilitate wrong information to consumers government gas power to take legal
actions against him. Due to intervention organization are responsible to give proper solution in time
to consumers if they face any problem in their product. Because if customer did not get any proper
response from organization in time then they are responsible to face lots negative word of mouth.
And also need to face legal actions from government because customer has the power to give
complaint against organization. Due to intervention when organization try to sold their product
globally they fixed their prices with some discount schemes which is highly beneficial for
consumers. Because with help discount offers people easily buy the product through online and
offline mode. After analysing all information in government intervention it is understood that
withoet government intervention organisations are totally uncontrollable. And it creates highly
negative impact for consumers which is good for economy also.

CONCLUSION
After analysing above report it is understood that organization played an important role for
maintaining stable growth in market. It is one of the multinational organization which provides
variety of products and services in various segments. Marketing structure and strategies played a
major role to achieve the organization's objectives, vision and mission. With good understanding of
market organizations are able to serve their product and services according customer trends. E.g.
organisation launched their own payment services according to ongoing payment trends by other
companies. Proper organization structure and marketing strategies are important to run the
organizational activities smoothly. Other important point in this report is government intervention
which is highly important to control the organization legally. And also for stop wrong activities
against consumers.

REFERENCES
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