With release earlier this year, Samsung has dominated the market, controlling approximately 90% of the total share. One of the Samsung products, the 9000 series TV, is not in comparison to competition with its ultra-thin screen, which measures only 0. 3 inches in width. This series is also available with full color spectrum which makes for an incredible experience of viewing (Wisped, 2012). Although the company is dominating the AD market, the company still has very detailed tactics and strategies that it believes will give an increased competitive advantage over the competition of the company (Wilson, 2010).
The main emphasis of the company in past few years has been on integration, union, and encouragement of innovation. Samsung is continuously preparing for the next big item to launch in the market, which is why the technology of the company is so far ahead of all leading competitors in the electronics market. In the future, the company plans to enter the AD video gaming market in partnership with the Microsoft Company. This would give the company the access to all of the gaming technology of Microsoft, in which the company will combine the quality of sound and viewing stations for creating the ultimate experience of gaming.
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Of course, throughout the Journey in this market, the company will keep on providing the best ad campaigns for the public so that they never forget this product. Consumer Profile With the advancement of AD in the technology of TV, the target market of the company is easily identified as the early adapter. Early adapter is the customer who has a high rate of diffusion; it is the rate at which the acceptance is done by the market for any new product idea or a product. One of the surveys of the company identified the “cube tubers” as the target customers for this product (Wisped, 012).
These are the people who are the early adapters to the new technology, and are young affluent men who have redefined the coolness from having fast cars to being good at the computer games. SOOT Analysts Strengths These are the major areas of expertise of the company and the areas in which the company excels and have an edge in the market over the other competitors, some of them are: Excellence in engineering and in the production of the hardware products and Marketing Plan for Samsung By brazenly cannot be matched with any other company in the world. It is the number 1 market y share in television and mobile phones sales” and other hardware part (processors, memory chips, etc. ) (Wisped, 2012). The specialized engineers are skilled to do work according to the needs and the requirement of the company. Low cost of production. Maintaining excellence with low cost is not possible easily but still the company has maintained low cost of production of its products as compared to its competitors. Samsung also set up its production facilities in low cost countries.
This benefit the company by producing their products with low production cost and selling them in lower prices and gaining high margins. Largest share in the industry of mobile phones and became 2nd place in smartened sales in the world. The company has the low cost of production and thus has been able to maintain low price of the phones as compared to the other competitive brands in the same market. The share is the largest due to the excellent and advanced feature with reasonable price. Ability to market the brand name.
Samsung has been able to position the market in such a way that it has marketed the brand name strategically. It has been named he “top rising brand by Interbrain and is the 9th most valuable brand” valued nearly $33 billion (Interbrain, 2012). Weaknesses The Company might be able to market the product nicely or it might have been able to get a large market share but there are certain weaknesses which the company has. Some of them are listed below. Patent infringement. Samsung has a loose policy regarding the infringement of patents.
The company’s patents were not done through a proper channel, thus ending up infringing Apple’s and other firms’ patents (Wisped, 2012). This outcome damaged Samsung reputation and suffered losses. Low profit margin. Samsung Electronics is the largest technology business in the world in terms of revenue. But its low profit margin was the result of low cost of their product and a price cut they had to endure (Wisped, 2012). Focus on too many products. This point could be the strength as well as the weakness. Samsung Electronic serves many industries with many different products in them.
They lost their focus because there were competing in too many products and too many industries, which was their disadvantage over their competitors (Gaucheness, 2013). Opportunities The technology is moving faster and faster, therefore electronics industries are still growing and Samsung keeps getting new opportunities. Some of the opportunities are listed below. Growing market for the smart phones in the developing nations. Samsung Electronics Co. , Ltd. Can explore the market in the nations where the economy is still developing and the market of smart phones is growing.
For example India. Samsung took advantage of being very popular in India, that its market share was higher than the other competitors. India became the fastest growing smartened market in the world (Belaying, 2014). Recesses applications. Samsung is one of the key manufacturers of application processors for smartness and tablets (Guardian, 2012). Because of the high demands for these products, they will need the best quality application processors, which only Samsung can provide. Growth of tablets market.
Tablets market is expected to increase rapidly the next few years. Samsung Electronics Company has been very popular in tablets market, thus if they introduce newer and better quality models, it will expand their profit margin (Wisped, 2012). Threats The Company faces challenges on a daily basis which might be from the monitors and various other factors and thus the company has constant threats from various sources which the company has to face on a daily basis. Some of the threats to the company are listed below. Saturation of the smart phones market in the economy.
The smart phones market in the developed economies is saturated and the growing number of sales will low. Breached patents. Samsung Electronic have many patents that are being used by their many of their competitors. These competitors are benefiting from it and Samsung is not receiving any payment for the use of their products. Rapid technology change. Because of the fast change in technology, companies are quick to release new products faster and faster. Companies have to introduce their products first in order to beat their competitors; like a saying goes “snooze, you lose”.
Conclusion Currently the company holds a very strong market in the industry, but with the same conditions the company might lose out certain share in the mobile industry. The alliance of the company should be strong enough to maintain healthy relations.