Writer's Choice – Essay Example
Samsung Mobile Phone: Micro and Macro Economic Factor of demand and Supply Over the last five years, Samsung was the top mobile brand in the world market with the constant innovation and development of mobile phone of different price range. In 2012, revenues of the company rose 17% and operating profit was up 54% over the last year. In the first half of 2013, Samsung enhanced its Smart phone’s market share by delivering 68 million Smart phones which was accounting for about 34% of all smartphone consignments in the quarter (Shaughnessy) But during the last phase of the last five years span Samsung faced tough competition from other mobile companies across the globe as their market share fall slightly (Osawa & Grundberg).
Technological innovation, high competition, availability of variety of product, increase in the disposable income for people and also decrease in the price are the main factors in increasing the demand of Samsung mobile phones (Tse).
Polarized price portfolio caused increase in mobile phone demand and the customers’ requirements of variety with lower price that Samsung offers (GFK, 2013). Samsung increased its spending by issuing bonds through different banks and also recruiting employees to meet the market demand. It also increased its spending offering content for various mobile devices, connecting media and television through mobile to develop a new dimension in media (Linclon). In order to meet high market demand of high tech mobiles and fight with Apple, Samsung spent more on innovation and developed variety of smart phones with different price range that helped them capture the market in each segment and also deliver products and meet the demand with more investment in R & D and employee recruitment (Lev-Ram).
Demand for Mobile Phone at Record High, GFK Press Release, 2013, Web, retrieved on 6.2.2014 from http://www.gfk.com/news-and-events/press-room/press-releases/pages/demand-for-mobile-phones-at-record-high.aspx
Lev-Ram, Michal, Samsungs road to global domination, CNN Money; 2013, Web, retrieved on 6.2.2014 from http://tech.fortune.cnn.com/2013/01/22/samsung-apple-smartphone/
Lincoln, Cam, Samsung Ramps up Spending to Meet Demand, Fuel Expansion; Mobiledia, n.d., Web, Retrieved on 6.2.2014 from http://www.mobiledia.com/news/124274.html
Osawa, Juro & Grundberg Sven, Apple’s Smartphone Market Share Drops as Samsung’s Edges Up, WSJ, 2014 Web; retrieved on 6.2.2014 from http://blogs.wsj.com/digits/2014/01/28/apples-smartphone-market-share-drops-as-samsungs-edges-up/
Shaughnessy Haydn, Samsung Rises To Nearly Double Apples Smartphone Sales, Forbes, 2013, Web, retrieved on 6.2.2014 from http://www.forbes.com/sites/haydnshaughnessy/2013/04/26/samsung-rises-to-nearly-double-apples-smartphone-sales/
Tse, Andres, Smartphone boom stutters as demand exceeds key part supplies; The Globe and Mail, 2013, Web, retrieved on 6.2.2014 from http://www.theglobeandmail.com/technology/business-technology/smartphone-boom-stutters-as-demand-exceeds-key-part-supplies/article11638737/?page=all