Samsung Electronics Company has had a great year on the books in 2013. At the same time, it is not yet their time for celebration. There is still room to grow and even more room for failure and change in the future. Samsung needs to continue to diversify and stay one step ahead of its competitors. They have done a great job in the previous quarters following market trends and giving the consumers what they want and more.
In its second quarter of 2013’s fiscal year, Samsung Electronics Company experienced profit decline even though it is growing to be considered as one of the world’s biggest mobile phone and Television manufacturers. For this particular quarter Samsung Generated a total operating profit of $8.4 billion. The reason for Samsung’s dramatic growth is in part due to the success of its smartphone division and the recent market trends matching with their strategy. Samsung followed the market trend for smartphones efficiently and diligently, executed all the right actions. Their Galaxy series is in line to replace Nokia’s Top smart phones which will escalate them to be one of the biggest and best phone makers in the world. It is reported that 95% of their profit come from their Android smartphone division, which means that it is their major profit core. In the third quarter of 2013, Samsung generated $9.4 billion in profit. However concerns have arisen that Samsung’s growth rates are beginning to slow down. In an article that BCC News released, it was stated that “Samsung shares fell 3.8% after the profit guidance.” Also “its shares have dropped more than 15% since early June, after a various brokerages downgraded their outlook for the firm.”
The research firm Analytics states that Samsung earned for almost 95% of the A...
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...ung’s market shares and will be critical hit to the Samsung.
In conclusion, the top present and future problems Samsung faces includes competition problems, both domestic and in international markets. Samsung has to constantly keep thriving to keep its position at the least if not grow. Shrinking margins, Competition in this market can be drastically affected by price and there is always a fight to try and keep product prices at an optimal and desired amount by the consumer while still trying to lower production prices even more. Lastly but one of the most important problems that Samsung faces is Innovation and exploration into new products and markets. Samsung needs to be ahead of the market or in new markets. Expansion and growth is necessary to survival. This brand has made a name for itself y being a huge risk takes and its sales and profits can easily prove it.
• If the trends have not been read by Mr. Chung’s divisions correctly and the transactional data is showing a negative impact by losing market share; Samsung should pull back quickly and revert to the market they know best which is low-end to medium-end product. But Mr. Chung should be given reasonable time to prove his market.
There were several trade-offs for GE to implement the shift in strategic focuses. To achieve organic growth, GE needed to increase output and sales based on customer needs, which was unlikely for GE to achieve in a short time. GE’s profit inflow would slow down in early years as a trade-off for sustainable profit in the future. Previously GE had many projects induced by merger and acquisition activities. They needed to decrease projects and more focus on long-term investment in order to achieve organic growth.
After conducting a basic 10 year financial analysis of the company, it has become evident that even with a highly competitive market structure they are able to improve on their performance. Ranging from 2004 to 2013 financial information, the company has shown a significant increase in their sales revenue roughly $3865 million sales in 2004 to almost four time that valuing $12970 million in 2013, which was an “increase of 10.4% over the 53 week prior year” The company’s growth strategy has been to diversify its product market and make them...
In today 's era, there are a lot of companies that provide services all around the world that benefit everyone. Some of those companies provide only internet, while others provide that and/or the device used with the internet. One of the most popular companies that exists as of today is the Apple Company. The Apple Company was founded back in 1976 and its main thing was to create and produce computers and other electronics such as music players, cellular phones, and other merchandises. But the company became quite known, and as of today, it sells from just phone cases to televisions.
To collect relevant data, the annual percentage change in net income per common share diluted, net income/net revenues, the major income statement accounts to net revenues, return on stockholders’ equity, the price/earnings (P/E) ratio, and the book values per share for each year numbers were examined. In order for Sun Microsystems to see a greater return in its bottom line assets, it must consider an alternative approach in operating its organization.
Samsung’s cost advantage is clearly visible from the comparison of costs (and their elements) that were borne by the company and its competitors in 2003 (Tab. 3): Samsung’s overall cost was 24 per cent lower than the weighted average cost of the other four producers; two most significant elements of the cost structure, i.e. raw materials and labour, were 36 and 27 per cent lower respectively. When expressed by means of a relation of average selling price to costs (“productivity” of cost elements), the differences are even more visible (comp. Tab. 4 ): overall superiority of Samsung over its competitors exceeded 51 per cent!
For many years, IBM succeeded in holding a very good market position. In fact, the company achieved a very high market share and huge profits. However, this situation did not last forever. In 1990, IBM experienced its first quarterly loss of $2billion due to some unexpected accounting charges. However, revenues increased from $62.7 billion in the previous year to $96 billion. In 1991, the c...
When it comes to smart phone market share in the United States, Apple still trails Android by almost 10%. But if you are to break out the market share figures then you will notice that IPhone reigns supreme by a very wide margin. According to a lot of recent data compiled by ComScore, Phone’s share of the United States smartphone market now is about 43.6%, followed by Samsung which is at 27.6%. Apples market has increased by 4% almost every year, while Samsung has been dropping by 4% almost every year. Although Apple is doing a bit better than Samsung overall, Samsung is still topping Apple with their Android. During the second quarter of 2015 Samsung took a 21.7 percent of the global smartphone market, with shipments 73.2 million units. A reason I feel Samsung is doing much greater then apple right now is their ability to have all these different features, which not only add modern things to their phone but also longevity. With the three new water proof phones that Samsung has come out with Apple has yet to release their first
A product is a service or item that is offered to the customer to fulfilled their requirements and needs. A brand portfolio is used to include all entities when a large organisation run under various and numerous brands, services and company. Typically, each of the brands possesses a separate trademark and manage as a single business entities. Samsung is a huge company and produce various products with creative and interesting design and sizes, therefore customer has numerous choices. Samsung brand portfolios is Samsung Electronics Co.Ltd, SDI Co.Ltd, Electro-Mechanics Co.Ltd, Techwin Co.Ltd, Heavy Industries Co.Ltd and Security Co.Ltd. All those products had been offered to the multinational company and the world. Every Samsung brand is regulated
For the Samsung Galaxy Note 8, we expect the sales to grow in the first quarter of year one. With people still suspect about the phone there won’t be a fixed demand on a per month basis. After a couple months pending no problems with the smartphone people will have their faith in Samsung again and purchase the Galaxy Note 8. After the first year, we expect the Galaxy Note 8 to reach a profit of 1 billion dollars. During this section, I will explain the sales forecast for each month and for the next 3 years. Also, I will discuss the breakeven analysis of the Samsung Galaxy Note 8, the cost to build the smartphone, how much we are willing to pay for expenses and what expense we focus on the most.
Samsung’s product development includes all three approaches. Samsung invested in a Customer-centered new-product development. The new-product development focuses on finding new ways to solve customer problems and create more customers satisfying experiences. The “new management” is a top to...
Over the past five years, RIM has changed its corporate name to BlackBerry, been purchased by private equity firm Fairfax Financial, written down over $1 billion in assets and unsold inventory, and laid off more than 40% of its workforce (Connors). BlackBerry’s fall from market leadership and financial success is the result of a corporate structure that failed to foster individual employee creativity and company-wide innovation. Financial distress, upper-management turnover, and loss of strategic direction are symptoms of BlackBerry’s problem: a failure to innovate and remain competitive in the smartphone market. Recent attempts to regain foothold in the smartphone market include the unsuccessful launches of the PlayBook tablet in 2011 and Z10 and Q10 phones in 2013. These attempts to dismantle the iPhone and Android market power have resulted in BlackBerry trying to mimic its competitors rather than producing cutting-edge products that create value for its customers.
Samsung Electronics Company (SEC) began doing business in 1969 as a low-cost manufacturer of black and white televisions. In 1970, “Samsung acquired a semiconductor business” which would be a milestone that initiated the future for SEC. Entering the semiconductor industry would also be the beginning of the turnaround phase for SEC. In 1980, SEC showed the market its ability to mass produce. SEC became a major supplier of commodity products (televisions, microwave ovens and VCRs) in massive quantities to well known original equipment manufacturers (OEMs). For this reason, Samsung was able to easily transition into a major player in the electronic products and home appliances market (Quelch & Harrington, 2008).
What is the best smartphone brand in the world? IPhone or Samsung? It is a question we are often asked. We all know that there are many high- class Smartphones Company in the market except Apple and Samsung, but nowadays people more likely to buy these two companies products and always like to compare them and trying to know which one is the leader of smartphones market. Most of people believe that Apple brought the smartphones revolution to the world and it changed “everything”, and maybe that is why Apple has more royal supporters than Samsung.
1. In which ways do smartphones help these companies be more profitable? To what extent are improvements in performance coming from revenue increases or cost reductions? Provide several examples from the case.