Market Share And Profitability In Smartphone Harvard Case Solution & Analysis


Currently Samsung’ssmartphone industry is in its mature stage but Samsung is persisting in its management locus as it had been easily foreseen that the Korean company had a reduction in sales owed by the stopover of manufacturing of the Galaxy Note 7 specifically after the frequent battery eruptions. This occurrence cost Samsung not only a substantialexpanse of money but predominantly, its standing of trustworthiness & reliability.

However, Samsung was competent to take control of the situation and respond with new models but the smartphone industry is a flat market. 43% affordability is the most appealing plus point of the Samsung Company. There are many clarificationsas to why the market has been established, but the main reason is that, currently, most of the people already have a phone and thanks to technological progresses, phones do not need to be rehabilitated as often.As more time passes, people are increasingly becoming aware of what a smartphone is supposed to do because mobile devices are becoming an increasingly significant part of the daily life and consumers prefer to own the latest model in the market.

The struggleoriginates from the fact that there is contradictoryevidence in the marketplace. Many markets are developing at different rates and are ambitious by different factors such as legal factors and so on. Samsung’s phones could suffer from a lack of perceived differentiation from other android phone-makers or even from Samsung’s other phones and a great many other companies are competing to sell those add-on services such as applications (apps).Sales of Samsung smartphones had ultimately overtook trades of old-style PCs since 2015. Samsung always focused on increased market share than profitability but now, it must look into things to consider like profitability, just like Apple is focusing on since the first day or Samsung will consequently lose a part of its market share and benefit, leading to a descent from its principal position.

Market Share And Profitability In Smartphone Harvard Case Solution & Analysis


Samsung is one of the largest and well known South Korean conglomerates. The headquarters of the company are in Samsung town, Seoul. The company was established as a trading company by Lee Byung-chul in 1938. After three years of its formation, the company entered into electronics industry. After the death of the founder, the company was separated into4 different business groups. The company has continually globalized it activities and electronics items. In 2015, in terms of revenue, Samsung became the 2nd largest information technology company in the world. Samsung acquired the 5th position in terms of market value. The company’s conglomerate include Samsung heavy industry, Samsung electronics, Samsung engineering, Samsung C&T, Samsung life insurance and Samsung Everland.

The company has a powerful influence on economic development, media, culture and politics of South Korea. The company’s revenue is seventeen percent of the total South Korean GDP, which is around $1,082billion. Samsung cellphone division is one of the five business units within electronics. The Company announced a ten year growth strategy in 2010 and gradually captured the market, the company became the largest mobile phone maker around the world in terms of sale units.............

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