Discuss how Samsung differentiates its product from its competitors. In making themselves one of the most quality and innovative brands within the electronics industry, Samsung strives to be sustainable and achieving a sustainable competitive advantage by ensuring it remains as the leader within the digital market. Samsung has differentiated its products from its competitors from a platform of three categories. These categories are product attributes, firm linkages, and firm-customer relationships.
The products produced by Samsung are similar to those produced by its many competitors, thus making the company deal with this sort of competition in five different industries. Samsung ensures that the features it incorporates within its products are different and unique, e. g. it added a pod cast feature within its headsets so as to give more functionality to customers. Samsung identified that feature differences is a major attraction to customers. Discuss the impact of new competition on Samsung’s financial performance.
The impact of new competition on Samsung’s financial performance has been and up and down process given that its competitors are constantly coming up with innovative ways to keep competition aggressive. Samsung has over the years been forced to reduce their prices on various items. This has led to increased volumes with higher penetration levels as a result of lower prices and increased marketing. Samsung’s new competition has continued to launch Samsung’s brand to become the world’s largest conglomerate with annual revenues as of 2008 standing at US $ 173. Billion. Many firms in South Korea and more so those within the electronics industry continue to be dependent on Samsung for the supply of vital electronic components and raw materials such as the semiconductor chips and the LCD panels. Identity any new marketing strategies that Samsung should consider in reaction to new Chinese competition New marketing strategies that Samsung should consider in reaction to new Chinese competition includes continued production of superior products with advanced technological features.
In spite of the fact that this will lead to continued high production costs, the best way to beat competition will be outsourcing the assembling of Samsung’s products. This way, Samsung will never compromise on its quality. Over time, cheap substitute products lose to superior products and as most people are aware, many of the new Chinese competition is based on cheap imitations that have been mass produced. Develop a new strategy for Samsung A new strategy for Samsung will be continued expansion of its geographical production and distribution networks.
Samsung needs to carry out due diligence especially in emerging markets where there lie huge potentials for companies that are ready to invest in them. With most of its production in South Korea, Samsung needs to open up fully subsidized regional headquarters that can serve literary every segment within its target market. Having an active presence will give Samsung the upper edge that most companies within the industry do not have. The aim of setting up fully subsidized regional offices will also be to give constant feedback to the headquarters on the needs of the local market in the face of global competition.