MGT-605 Trimester 1: Samsung Market Share Decline and Strategies

This report examines the decline in Samsung's market share during 2018, focusing on data collected and analyzed to understand the factors contributing to the decrease. The research utilizes secondary qualitative data from financial reports to analyze shipment volumes and market share of major mobile companies, including Samsung, Huawei, Apple, Xiaomi, and others. The analysis reveals Samsung's initial dominance, followed by a decline attributed to factors like the failure of high-end product launches and the rise of competitive Chinese brands offering innovative products at competitive prices. The report provides findings on Samsung's marketing mix (product, price, place, and promotion) and recommends that Samsung focus on innovation, develop products for a broader market, and increase investment in research and development to regain market share. The report concludes by emphasizing the need for strategic adjustments to compete effectively in the evolving smartphone market.

Running head: BUSINESS RESEARCH METHODOLOGY
Business research methodology
Name of the student
Name of the university
Author Note:

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Table of Contents
Data Collection................................................................................................................................3
Data Analysis...................................................................................................................................3
Table No 1: 1st Quarterly Shipment Volumes of the different Mobile Companies.....................3
Table No 2: 1st Quarterly Market share of the different Mobile Companies...............................4
Table No 3: 2nd Quarterly Shipment Volumes of the different Mobile Companies...................5
Table No 4: 2nd Quarterly Market share of the different Mobile Companies............................6
Table No 5: 3rd Quarterly change of the different Mobile Companies.......................................7
Result of the Analysis......................................................................................................................7
Findings and Recommendations......................................................................................................8
References and Bibliography.........................................................................................................10

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Data Collection
The data for the particular research has been collected by means of a secondary
qualitative research. The primary data has been collected from the annual financial reports of
Samsung. The data has helped the research to ensure the use of a statistical analysis to find out
the result.
Data Analysis
Samsung Huawei Apple Xiaomi OPPO Others
0
20
40
60
80
100
120
140
1st Quterly Shipment Volumes
1st Quterly Shipment Volumes
Table No 1: 1st Quarterly Shipment Volumes of the different Mobile Companies
Source: (As created by the Author)
The above shown table has highlighted the 1st quarterly shipment volumes of the different
kinds of the mobile companies. This includes the likes of Samsung, Huawei, Apple, Xiaomi,
OPPO and some other Smartphone makers. Samsung clearly emerges as the winner in the above

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shown table with a large number of shipments followed closely by the Chinese Smartphone
makers Xiomi and Huawei. Thus this clearly shows that the Chinese phone makers are fast
catching up with the Korean phone maker. This also shows a large volume of decline in sales for
Samsung.
Samsung Huawei Apple Xiaomi OPPO Others
0
5
10
15
20
25
30
35
40
1st Quaterly Market Share
1st Quaterly Market Share
Table No 2: 1st Quarterly Market share of the different Mobile Companies
Source: (As created by the Author)
The above shown table has highlighted the 1st quarterly market share of the different
smart phone makers of the globe. Though Samsung occupies the largest volume of market share
with a huge share of 20.3%, the company occupies the 1st position in the market. On the other
hand, the Chinese rival companies are fast capturing the market by means of their innovative as
well as cheap products. This includes the likes of Huawei with a market share of 14.6% and
Xiaomi with a share o 13.2%.

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Samsung Huawei Apple Xiaomi OPPO Others
0
20
40
60
80
100
120
140
160
2nd Quaterly Shipment Volumes
2nd Quaterly Shipment Volumes
Table No 3: 2nd Quarterly Shipment Volumes of the different Mobile Companies
Source: (As created by the Author)
The above provide table has highlighted the 2nd quarterly shipment volumes of the
different Smartphone companies which have shown an increase in the shipment volumes of
Samsung but a sharp decrease in the shipment volume of Huawei and a small decrease in the
shipment volume of Xiaomi. However, the decrease in the shipment volumes does not proves the
growth of Samsung or the decrease in the growth of the Chinese companies.

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Samsung Huawei Apple Xiaomi OPPO Others
0
5
10
15
20
25
30
35
40
45
2nd Quarterly Market Share
2nd Quarterly Market Share
Table No 4: 2nd Quarterly Market share of the different Mobile Companies
Source: (As created by the Author)
The above shown bar graph has pointed out the decrease of market share of the Chinese
companies and an increase in the share for Samsung. The growth in the market share is a positive
note for the company but the lack of research and development and too much dependency on
traditional marketing techniques has led Samsung to different kinds of issues within the market
of the business.

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-13.4
32.9
0.5
21.2
-2.1
-19.9
3rd Quarterly Change
Samsung
Huawei
Apple
Xiaomi
OPPO
Others
Table No 5: 3rd Quarterly change of the different Mobile Companies
Source: (As created by the Author)
Result of the Analysis
The result of the following analysis can be well and truly seen in the following research.
Though Samsung remains the top smart-phone manufacturer globally, the absence of proper
pushback in sales and lack of innovation has been cited as the major reason for such a huge
decline in the sales of the company (samsung.com, 2019). The data has been analyzed in a
systematic manner that has stressed on the findings of Gartner in the same issue. Samsung has
been struggling to maintain the sort of market share that it has experienced in the past. The
company experienced its biggest decline especially in the last quarter of 2018 (samsung.com,
2019). The company experienced a sharp drop in the sales as the company experienced a growth
of just 18.9% compared to its last quarter growth of more than 22%. This sowed a clear decline
of more than 4% overall but made a large change in Samsung overall. The findings of the

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following research have pointed out to two different kinds of the reasons for the following
situation. The first one being the demand for its high end smart phones like Samsung Note 9
which has totally failed to live up to the expectations. On the other hand, the rise in the growth of
the dynamic Mobile brands of China like Huwaei, Xiaomi and Oppo has been able to neutralize
a large portion of the business of Samsung. The growth in the business of the Chinese brands has
been one of the major reasons for the decline of the share of Samsung in the market.
Market Analysts believe that the organization will face even more decline in the coming
few days as the other brands especially the Chinese phone makers are flexing their muscles in the
market by means of advance quality innovations supposedly at a cheap and competitive price
which has pushed Samsung to the brink (Mallinson, 2015). The dip in the sales of Samsung has
been helpful for the rival Chinese companies. The sales of Huawei have increased by over a
whopping 32% in the financial year of 2018. This shows the increasing interest of the people
towards the phones offered by Chinese brands. The management of Samsung thus needs some
large changes to ensure the success of the business accordingly.
Findings and Recommendations
Though the research analysis have shown the decrease in the market share of the Chinese
companies, the present situation of Samsung and its inability to compete against the cheap and
technologically advanced substitutes and innovative products of the Chinese companies have led
to the decline of Samsung. However, proper business strategies can lead to the success of the
company in the market. Some of the major recommendations are as follows;
a. Innovation in the company is important for the success of Samsung

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b. Samsung has created a niche market for its high end products like Samsung Galaxy
S10, Samsung Galaxy edge. The company rather must create products for a much
larger market to ensure the success like that of its rivals
c. The management of the company must ensure large investment in research and
development of the organization

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References and Bibliography
Audited Financial Statement │ Financial Information │ Investor Relations │ Samsung Global.
(2019). Retrieved from https://www.samsung.com/global/ir/financial-information/audited-
financial-statements/
Curwen, P. (2019). Has the smartphone market hit the rocks? A regular column on the
information industries. Digital Policy, Regulation and Governance, 21(2), 193-195. (Curwen,
2019)
Dunuwille, V. M., & Pathmini, M. G. S. (2016). Brand image and customer satisfaction in
mobile phone market: study based on customers in Kandy district. Journal of Business
Studies, 3(1).
Mallinson, K. (2015). Smartphone Revolution: Technology patenting and licensing fosters
innovation, market entry, and exceptional growth. IEEE Consumer Electronics Magazine, 4(2),
60-66.
Thompson, N., & Spanuth, S. (2018). The Decline of Computers As a General Purpose
Technology: Why Deep Learning and the End of Moore’s Law are Fragmenting
Computing. Available at SSRN 3287769.
Tsai, W. L., & Chang, P. T. (2018). Combining data envelopment analysis and competitive
dynamic theory for exploring global smartphone manu-facturers' performance. JABS, 4(2), 109-
125.