Samsung also improves the existing products it offers by launching slightly different variants of the already existing products to create new products.
The company launches new products gradually across its various markets. This allows the company to take advantage of greater sales and revenues associated with new products. Samsung follows a conglomerate diversification strategy.
Its extensive product portfolio of numerous industries shows that Samsung has not limited itself to horizontal diversification Martin, It has expanded into unrelated industries various times and succeeded. The company does detailed research and spots industries with growth potential and enters them.
- Understanding Samsung's diversification strategy : the case of Samsung Motors Inc. - EconBiz?
- forex easy trader.
- citifx pro forex broker.
- iq options 1.3 strategy.
- What Is Samsung Merger And Acquisition Strategy?
This allows the company to serve greater markets and offer diverse products and services. The name Samsung is associated with different products and lines that may even confuse customers that lack knowledge. The diverse portfolio is not seen very often in other brands. Craft, Martin, V. Mo-Hyun, C.
Samsung, Financial Highlights. Saxena, D. Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies.
It is mandatory to procure user consent prior to running these cookies on your website. Search for:. Archives February January This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Close Privacy Overview This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website.
We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
These product lines share some similarities in design aspects and hardware capabilities. Furthermore, with a few exceptions, all three have phones built with AMOLED display technology, which is a feature initially reserved for high-end Samsung products. It is easy to assume that focusing on fewer products is more effective and efficient than manufacturing and marketing several and almost similar products.
But product strategy through product diversification is actually central to the marketing strategy of Samsung. Industry data would reveal that the company has been one of the top five manufacturers leading the market in unit shipments since Product diversification can be costly and risky.
However, when done right, this product strategy provides a safety net against market downturns. Take note that concentrating heavily on a single or fewer product for a limited market segment exposes a company to risks associated with market volatility due to rising and falling demands. It is also an effective strategy to grow a business.
Product diversification works best for companies operating in a market populated by consumers with diverse demographic backgrounds, varying socioeconomic status, and different psychographics. The market for smartphones and tablets are both volatile and diverse. Consumer preferences are dependent on features and specifications relative to pricing points. Some consumers are willing to spend on an expensive device with high-end features.
Others prefer buying a device that fits their budget and usability requirements.
Company gone For diversification.
There are those who do not mind the price but are very particular about hardware and design specifications. Through a product strategy that centers on product diversification, Samsung caters to a broader smartphone and tablet market. For example, the Galaxy S Series product line caters primarily to high-end consumers. Still, the company has used the same user experience in the Galaxy A Series line to cater to mid-entry consumers, albeit with some trade-offs such as lower hardware specifications and design choices.
Even Apple recognizes the importance of product diversification in its strategy. Before, the marketing strategy for products such as the iPhone centers on limited product offerings. Today, the company offers several categories under the iPhone product line and several more categories under the iPad product line. Apple has also introduced a phone with a large screen display and a tablet with a smaller screen display—product strategies that have been implemented by Samsung. Take note that Samsung has virtually created the market for large-display smartphones called phablets.
Through a diversified product portfolio under the Samsung Galaxy brand, the company has developed and implemented a product-oriented marketing strategy that acknowledges the existence of various segments within a particular market.
Understanding Samsung's diversification strategy : the case of Samsung Motors Inc.
But this strategy does not rest alone with product diversification. Samsung operates in an industry wherein technological progress or innovation is a key ingredient in a particular market entry strategy , building competitive advantage , or raising the barriers to entry. Throughout the years since the launch of the first Samsung Galaxy device, the company has introduced several innovations that influenced the direction of the market for smartphones and tablets.
With the introduction of the Galaxy Note, Samsung created the specific market for phablet: an amalgamation of smartphone and tablet and a reference to devices with larger-than-average screen size for smartphones but smaller-than-average screen size for tablets.
- Samsung is one of the world’s largest producers of electronic devices - online presentation?
- The Marketing Strategy for Samsung Galaxy.
- city forex travel rates.
- {dialog-heading}.
- The Marketing Strategy for Samsung Galaxy | Profolus.
The Galaxy Note and the Galaxy Tab Note series have also reintroduced stylus pens in mobile computing devices. Stylus input stretches the capabilities and functionalities of smartphones and tablets.
The Marketing Strategy Of Apple
Even companies such as Apple , Microsoft , and Huawei have followed suit. Then there are added features such as a heart rate sensor, oximeter, fingerprint scanner, facial recognition technology, built-in augmented reality capability, and fast charging technology, among others. While smartphones would still work without these features, they provide an added value for consumers.
Samsung may not be the forerunner of these features, but it managed to position their use-case value by integrating them into its premium devices. Innovation helps a business organization become an industry leader.