Question

Principles of Microeconomics:

1. Pick one or more of the textbook chapters and research a current topic related to the chapter(s). Topic= International trade
2. Pick a public corporation or organization, and describe the business using the concepts learned in the course such as demand, supply, elasticity, costs, market structure...
3. Pick a product and define the demand and supply determinants for that product. Also explain the product´s elasticity, cost structure, market, and competition.

2. The grade will depend on how much you apply the concepts learned in the course and shown in the text-book

3. Main body of the paper should be between 4 to 6 pages depending of the number of section used.

Answer 1

Global brands like Samsung present in international markets expand using market entry strategy like licensing, exporting, merger and acquisition, joint venture, etc.

Product like smartphone and smartwatches made by Samsung have low cost structure and high markup pricing giving better profits margins the accessibility and availability gives them economies of scale and thus achieves cost leadership.

Five Forces Analysis:

Bargaining power of Suppliers - Many suppliers in this segments offer low cost services which means bargaining power is less for suppliers.
Bargaining power of buyers- Sijce Samsung operates either in perfectly competitive market or Oligopolistic market across globe, buyers have higher choices and hence higher power.
Threat of New Entrants- Since new entries from lowcost Chinese providers can eat up Samsungs share due to ease of taxation and licensing, threat is higher substantially.
Threat of rivalry between existing firms- This is comparatively very high as margins are wafee thin and innovation is constantly evolving making it difficult for the industry as whole.
Barriers to entry- Large initial investment, high marketing and distribution spends, constant innovation are biggest barriers.

Pestel Analysis :

Political - India, South and North Korea ar emost errant markets with high taxation and compliance and warfare tensions.
Economic - global economic degrowth and stagnant growth in mature markets is cause for worry.
Socio cultural - changing consumers preference and strong core culture is what Samsung has coped up with and reoriented itself across global markets to stay ahead of curve.
Technological - Wide-spread innovative solutions from competitors like Apple, Huawei, Vivo, Oppo, Xiaomi have threatened Samsung and portfolios. However Samsung has been fast mover and easily stays ahead of curve with its unparalleled premium segment and upscale technologies which competitors match too lately.
Legal- the recall of Samsung S9 has been highest litigation based loss because of malfunctioning and lack of quality checks and also copyright infringement issues with Apple make it very cumbersome and difficult to deal with.
Environmental - the organisations has been keen ethical player and truly abides environmental laws.

Strengths

Global brand image
Economies of scale and cost leadership
Highest patent growth
Innovation and design capability

Weakness

High dependent on OEM
Product cannibalization due to less differentiation
Focus majorly on high prices and premium segment

Opportunity

Tieups with Telecommunications operators for handset SIM selling
Focus on rural markets
Focus on low price segment
Focussing on diversified products like smartwatches, IoT products, Smart sensors, Smart devices

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Threat

Chinese products and hypercompetition
Uncertainty in government policies
High taxation
Retail markets collaboration with low cost players and private labels.