Background and history of firm
The Samsung Company is a South Korean based on large business that involves a number of subsidiaries. Samsung was established in 1938 by Lee ByungChul who is the first president in this business. He started a regional food exporting company in Taegu, Korea. After surviving the Japanese Occupation, World War II, and the North Korean invasion (seriously, are they planning on doing a movie any time soon?), Byung-Chull started anew in a sugar refinery outside Busan, South Korea. he would expand his business into a wide range of enterprises, moving into businesses such as insurance, securities, and retail, with Byung-Chull signalizing industrialization as the ...view middle of the document...
These kinds of companies always think methods how to make better phone or technology and provide better service for all the customers. As a result, most of new smart phones tend to be short-lived products.
The threat of substitute
For Samsung, the threat of substitute is quite high. This is because the most of merchandises are so exchangeable substitutes to Samsung. Most of phones have similar functions with the Samsung such as Android OS is not developed by Samsung. For another, they provide enough service instead of Samsung smart phone such as tablets and PDAS because these products are available due to the insufficient smart phone. Dump phone is also kinds of substitute product for Samsung smart phone. These phones only have lack of capabilities inside the phone but it is a very cheap and or free substitute to the standard smart phone. Buyer switching costs are markedly lower, product differentiation only comes in lack of features. Not many people support this substitute based on situation or evaluation.
The bargaining power of buyer
Nowadays, when we look at the marketplace, there are many various phones that we can see in society. Samsung always have been producing amazing phones in our society such as Galaxy 4 and Galaxy note 5. However, other competitive market which is Apple also generated great phones during one year. Customers easily changed cost with increased choice of phone. They try to choose phones which have better characteristics and good price. To sum up, it can be proved that there are many similar phones in market place, so we can all say that the bargaining power of buyer is high.
The bargaining power of suppliers
Samsung is almost top company in the world. There is almost no menace to Samsung about the bargaining power of suppliers. This company is perfectly integrated. It can be proved that Samsung supplies most of raw material which they require to make their own products. Therefore, the bargaining power of supplier is low.
The threat of potential new entrants
Based on information what I read, the threat of potential new entrants is very low because a few large companies are already controlled technology marketplace and then it is so hard to break in market place even though there is considerable amount of capital. Despite other new companies succeed to break market, they would likely be got rapidly to the other company. However, with the commoditization of parts, finding solutions might be possible but is not connected it. New entrants have to invest money for creating their own unique products. These things together have to establish a competitive brand name. However, it spends on big money to achieve these things a very strong barrier to entry.
It is defined as dividing markets into small segment of consumers with different needs. Segmentation is very essential to acknowledge the buyer differences as different features are connected with each buyer’s...