Question

By using wider research, with reference to the theories and practice you must complete a company report, which analyses and evaluates ONE of the 3 following companies:

1) Airbus
2) Samsung

3) Tesla

You must choose ONE of the companies and follow the below structure for your report:

1. Introduction: write a brief company profile and introduce the company’s mission and vision, strategic goals, basic financial performance in the past 3 years.

2. Pick one of the company’s key products and write about the type of market structure it competes in. List the closest substitutes of this product and also find out their market share. Find out why this product is successful or unsuccessful.

3. Draw a conclusion about the success of the company and how you see it competing in the future.

Answer 1

As per above question we are below describing the company report of SAMSUNG.

COMPANY PROFILE : Samsung Electronics operates as a multinational company that specializes in information technology, consumer electronics, business solutions, and mobile communications internationally. Samsung Electronics was founded in 1969 in Suwon, South Korea. The organization was established to initially operate as a subsidiary of Samsung Group. The firm later grew to offer a broad range of services, which have propelled it to a global player in the recent years.

The organization manufactures, sells, and develops a variety of consumer products, such as tablets, mobile phones, televisions, DVD players, Blu-ray players, digital cameras, camcorders, and home theatre systems. The corporation also deals with diverse home appliances, including air conditioners, refrigerators, washing machines, dishwashers, aMoreover, Samsung Electronics plays an active role in hosting cyber game matches, capital investments in technology business ventures, development of semiconductor equipment, in line with sponsoring of teams and games. It also offers credit management services. Furthermore, Samsung Electronics specializes in the provision of repair services of various devices in line with operating as a general logistics organization. It also embarks on the communication system and consultation services.nd ovens. In addition, the firm engages in the development of personal computers and its peripherals, including tablet PCs, monitors, notebooks, printers, computers, notebooks, optical disc drives, storage and memory products, and other accessories .

MISSION AND VISION OF SAMSUNG COMPANY:  Samsung’s corporate vision is to “Inspire the world with our innovative technologies, products and design that enrich people’s lives and contribute to social prosperity by creating a new future.” The company follows this vision statement to maintain profitable technology business operations that contribute to the improvement of people’s lives.

Samsung Vision statement 2020 comprises of below statements.

1. Inspire the world. Through this characteristic, it is clear Samsung does not just develop products, instead, it does so with a precision that inspires. It does this by being aware of the diversities across the globe.

2. Focus on innovations. The bar for designing Samsung products is probably the highest. Samsung has established a reputation for showcasing highly innovative products with the latest technologies such as its electronics with smartphones and personal computers being some of these.

3.Contributing to social prosperity. Samsung considers its presence in the electronic and other products’ market an important opportunity to change the way people live and relate for better.

Samsung mission statement is “We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society.” The statement puts all its emphasis on the superiority associated with the products it brings to its customers.It implies to give consumers the maximum level of satisfaction with the superior and latest technology products.

The below are the mission 2020 statements of samsung company.

1.Improving communities. Samsung shows that its focus is not just the immediate customer who benefits from the purchase of its products. The first avenue through which Samsung touches on the state of the society is by the provision of products and services that meet their needs, but it also does more.

2.Superior products and services : When it comes to quality, Samsung is rivaled by few. The company has shown its commitment to meeting the needs of this component by competing with the top brands across the globe, and this fight has made it one of the best. It is no wonder why Samsung ranks second at the global level revenue-wise. All this is because of the uncompromising attitude that the company has instilled in its production lines and services where quality is concerned. With this, its products have come to be associated with a superiority away from the norm.

3. Devote human resources and technology : n this statement, Samsung shows the readiness of the company to do anything possible to its course. It is a declaration that its quality and the reputation associated with this brand comes second to nothing else. The company has been doing this by firstly going out for the best and most creative tech gurus to keep its innovation agenda at the highest level.

Goal Of Samsung Company : Samsung is, in this regard, committed to ensuring clients receive user-friendly, high quality, and trendy products. In conclusion, the objectives of Samsung Electronics Company Ltd are consistent with not just the expectations of the customers but also the attainment of the firm’s main goal: higher profits. The mail goal of Samsung Company to earn higher level of profits in order to survive in the market of competitive products and latest technology.

We have choosen one of the key products of samsung Company is : SMARTPHONES

The key product of Samsung company's Smartphones competes under ''OLIGOPOLY'' market structure. Let us below understand the oligopoly market structure first.

Oligopoly market structure is an important form of Imperfect competition. Oligpoly market structure is said to prevail in the market when there are few firms or sellers in the market producing or selling the product. In other words, When there are two or more than two, but not many , producers or sellers of a product, Oligopoly is said to exist. Oligopoly is also often reffered as '' Competition among the few''.

When products of few sellers are homogeneous , we talk of Oligopoly without Product differentiation or Pure oligopoly. On the other hand, when products of few sellers or firms instead of being homogeneous are differentiated but close substitutes of each other, Oligopoly with product differentiation is said to prevail.

The smartphone market is one of the most prominent oligopolies.The most identifying characteristic of an oligopoly is the number of sellers . In the case of the smartphone industry, the number of sellers are small, each of them holding a sizable percentage of the market share, with Apple and Samsung being the dominant players. When firms are working within an oligopoly, the number of sellers are so small that they must anticipate their competitors' reactions before making a pricing decision.

Being an oligopoly, the barriers to entry for the smartphone market is very high. It is extremely difficult for new firms to enter the market as barriers such as existing patents, control over essential raw materials and market, high customer switching costs and strong customer loyalty for existing brands block access to new firms who wish to enter the market. For example, Apple and Samsung's existing loyal customers would not be inclined to switch brands to a new startup firm as they have strong customer loyalty and trust in the brands that they are using , not to mention the extreme difficulty any new firms face with patent ownership, making production of new smartphones a very difficult task.

When firms work within an oligopoly, they have a joint control over the price of the products. Thus, there exists a mutual interdependence between firms to strategically price their products in order to mutually enjoy the highest profits. In the case of the smartphone industry, firms are forced to comply to the prices that are set in the market, or risk losing the demand for their product. When one firm lowers the price of their smartphone, the demand will increase and thus profits will increase. However, this increase in profits cannot be enjoyed for long because other firms will decrease the prices of their smartphones as well, in order to even the playing field .Mergers also exists within the smartphone market. When firms sense the danger of new firm entries, they merge and create joint policies in product pricing and and production in order to discourage the entry of new firms. This is an integral component for the survival of the current firms. In order to continue profiting, the firms that exist within an oligopoly must work together to block the entry to new firms who wish to enter the market.

Below are the list of close substitutes of Samsung smartphones.

Samsung and Apple were the two companies which dethroned the dominator of the mobile market . Though below are also giving the good competition.

APPLE , HUAWEI, XIAOMI, OPPO, VIVO , LENOVO,MOTOROLA, MICROSOFT, etc. No doubt , Apple is the biggest competitor of samsung in terms of every aspect.

Samsung company is the biggest and successful name in the Smart phone industry. The great range of products, regularly analysed and revised model and reach in every different segment (From Samsung guru to Samsung Galaxy) has made this company accessible to everyone. One unified platform to run your entire business. The leaders made good business decisions and the right time to position themselves to be on the growth curve for each of those product lines. Samsung’s effort to change its product strategy for the year has benefitted the smartphone manufacturer and helped it increase its market share globally and in the Middle East and Africa region

Samsung has already posted a very positive first half of 2019 in the Gulf Cooperation Council countries with a healthy 7% growth in unit share and this is likely to continue. Samsung’s smartphone market share increased significantly in a time span of three years, going from three percent in the second quarter of 2009 to 32.2 percent in the second quarter of 2012. Year over year, Samsung Electronics Co. Ltd. has been able to grow revenues from 165.0T KRW to 201.1T KRW. Most impressively, the company has been able to reduce the percentage of sales devoted to cost of goods sold from 67.97% to 62.98%. This was a driver that led to a bottom line growth from 13.4T KRW to 23.2T KRW.

Undoubtedly Samsung is the most succesful company especially in the field of Smartphones. By using the efficient human resource, latest and innovative technices, Samsung is at the verge of capturing the smartphone industry by introducing various smartphones ranging from low to high prices suiting all sections of society, which makes it even more successful. The future samsung company is all brightened.