Marketing Paper on Company Selection and Product Analysis on Samsung

Marketing Paper on Company Selection and Product Analysis on Samsung

Company Analysis

Samsung is among the leading smartphones manufacturers in the world. It has remained ahead of the other tech companies regarding sales volumes by designing phones that cater for all market segments. The company is also contracted by other tech companies such as Apple to supply them with parts used to assemble their gadgets. This means that the company stands to gain not only from the sales of its own smartphone devices but also from the sales of other brands. Samsung Electronics manufacture smartphones among other products (samsung.com, 2018). It is a subsidiary of the Samsung Group that is headquartered in Samsung Town, Seoul, South Korea. The vision of the company is to “Inspire the World, Create the Future.”

Samsung Electronics has a reach in more than 80 countries where its assembly plants and sales networks are located. The number of employees under this company is more than 300,000. As at October 2017, the company had a market capitalization of $372 billion (samsung.com, 2018). Regarding revenues, it is the largest information technology company in the world. This firm specializes in the manufacture of lithium-ion batteries, flash memory, semiconductors, chips, and hard drives for other electronic companies. It is the largest manufacturer of mobile phones and smartphones. The popularity of its handheld devices is fueled by the Samsung Galaxy line (samsung.com, 2018). It is also a major global vendor of tablet computers that run on the Android operating system.

Product Analysis: Samsung Galaxy Series

            Samsung Galaxy series consists of smartphones that are designed for the high-end market. These smartphones have features and capabilities that are advanced compared to the other flagship products of the company. Further, the phones in this series are known to have the fastest processing speeds and clarity of the cameras compared to other brands in the same price range. The features and designs of the phones in this series are often considered futuristic with each release, which happens annually (Boudreau, 2013). However, there are marketing issues faced with this product by the company. Firstly, the popularity of Galaxy line of phones is much lower compared to its closest competitor, the iPhone. Second, the Galaxy series had had its share of a bad reputation when the batteries of some Galaxy Note 7 devices exploded in 2016 (Gibbs, 2016). The company needs to improve the prices of the Galaxy series to appeal to a wider market.

SWOT Analysis of Galaxy Smartphone Series

Strengths

            These smartphones have powerful features that are useful to the user’s everyday life. They are faster and have appealing aesthetic features. Further, they are also a status symbol for persons that are concerned with the fashion or tech industry. The operating system used by these smartphones is Android. It is the most popular and widely accepted OS for smartphones in the world (Cheng & Knutson, 2015). This ensures that the phone can access an array of apps for the user without facing compatibility problems. The phones manufactured by this company are at a varying price range. This ensures that all the segments of the market are covered. The branding and advertising of this product are done professionally, making it appeal to the audience and the market intended.

Weaknesses

            The problem with the Galaxy Smartphone line is that it has a limited market share in the medium to the high-end market. This is because of its prices, which tend to be significantly higher than those of the competitors (Cheng & Knutson, 2015). Also, the advertising and marketing do not capitalize on the advanced features of the phones in comparison to those of the competitors.

Opportunities

            The company can increase the range of the Galaxy phones to reach a wider market as opposed to being restricted to just the high-end market. The company is also recognized as the leading manufacturer of devices that use the Android OS (Cheng & Knutson, 2015). It can capitalize on that to push more products in the market.

Threats

            There is a challenge from emerging smartphone manufacturers making phones that are directed to the low-end market yet having features similar to that of the Galaxy smartphones. Higher end mobile phone manufacturers such as Apple and Huawei also pose a threat to the Galaxy phones in the market (Cheng & Knutson, 2015).

PEST Analysis

Political Climate 

The political conditions in the major markets for the Galaxy series are stable. These are inclusive of North America and Western Europe. Other emerging markets in Latin America, Africa, and Asia also have a promising political climate (Martin& Mickle, 2017).

Economic Environment

The economic environment is healthy globally, and the projections for the future are that it will continue improving.

Socio-Cultural Environment

The young adults and millennials are the dominant and targeted demographic for the Galaxy series. They are tech-savvy compared to the older generations and are reliant on their smartphones’ connectivity to the internet for information and entertainment as well (Martin& Mickle, 2017). Given that more of them are no longer interested in the conventional media, this demographic is promising in terms of expected future sales.

Technology

Regarding technology the product is highly advanced and sets the pace for the competitors (Martin& Mickle, 2017). It is, therefore, performing well in this environment.

Conclusion

            The current marketing strategy of the Galaxy smartphones by Samsung Electronics aims at the medium and high-end market. The lower end market has been left for other feature phones by the same company, whose performances are usually poor compared to other products in the same price category. This marketing strategy is hurting the sales of the Galaxy smartphones, as the consumers that have sampled the lower end market Samsung phones are left with a wrong impression, making them avoid the brand when upgrading their phones. The company should standardize the quality and performance of the phones across the market to create confidence and cult-like following by the customers.

 

 

References

Boudreau, J. (2013, Mar 31). Apple and Samsung battle for hearts and wallets of smartphone customers. Oakland Tribune. Retrieved 8 March 2018, from https://www.mercurynews.com/2013/03/31/apple-and-samsung-battle-for-hearts-and-wallets-of-smartphone-customers-2/

Cheng, J., & Knutson, R. (2015, Aug 13). Samsung unveils two new devices and mobile Payment System; Electronics giant uses Galaxy S6 Edge+ and Galaxy Note 5 to take aim at Apple. Wall Street Journal (Online). Retrieved 8 March 2018, from https://www.wsj.com/articles/samsung-unveils-two-new-devices-and-mobile-payment-system-1439489388

Gibbs, C. (2016). Samsung halts shipments of Galaxy Note 7 on reports of exploding batteries. FierceWireless,. . Retrieved 8 March 2018, from https://www.fiercewireless.com/wireless/samsung-halts-shipments-galaxy-note-7-reports-exploding-batteries

Martin, T. W., & Mickle, T. (2017, Mar 31). Samsung, Apple intensify battle for smartphone users; Owners of Apple and Android phones rarely switch brands–but this year offers a rare chance for industry leaders to win (or lose) fans. Wall Street Journal. Retrieved 8 March 2018, from https://www.wsj.com/articles/samsung-apple-intensify-battle-for-smartphone-users-1490952618

samsung.com. (2018). Vision 2020 | Samsung Electronics | About UsSamsung lb. Retrieved 8 March 2018, from http://www.samsung.com/lb/aboutsamsung.html/aboutsamsung/