Entrepreneurial marketing

Samsung

 Though the company is among the largest manufacturers of Smartphone, there are bad things which the company does. First, the company advertising is not good.  For example in advertising Smartphone like Samsung Galaxy, the stalkiness, the premise and the performing arts are really bad.  The person advertising takes video without letting the girl know what is going on (Chakrabarty, 1). In addition, the people acting are hired models whose English is not their first language. It uses non-impressive technology which leaves many questions unanswered.  In advertising, the company does not follow ethical standards as it gives misleading information on Smartphone features. For example, the company was fined by ‘Taiwan’s Fair Trade Commission’ for cheating in advertising the Samsung Galaxy Y (Chakrabarty, 1). The entrepreneurial company also has a bad design of the product. It does not change the design and almost all smart phones have similar design.  The products are not quality because most of the smart phones have plastic body and a metallic rim which makes them to fade (Chakrabarty, 1).  Based on the product, the devices in Samsung phones use a product called Google Android and many people do not like it as it is inferior.  Its marketing efforts are weak following that its market share dropped by 2.3 in 2014 and 2015 (Chakrabarty, 1). The worst thing which the company does is enjoying cost-benefit as a result of stealing. There is evidence that Samsung stole $52 million intellectual property from Apple. Samsung had to pay the compensation to the Apple in order to end the controversy (Elgan, 1).

The products do not have a great value and this makes the company to lose value in the market.  The problem with the product value is the Bloatware. The company pre-installs useless apps for example in Galaxy S6 and they fails to provide option for apps uninstall (Chakrabarty, 1).  Other thing which the company does and makes the product to lose its value is Specs.  The products have specs and puts similar price with other phones with specs. The product loses value following that in marketing competition, customers   have a preference on other phones with specs rather than Samsung.  The company fails to achieve the benefits and cost since the customer-perceived value is not achieved.  For example, the company has not enjoyed profit from Galaxy S6   because it failed to compete with Apple and Huawei (Chakrabarty, 1).

The main reason why Samsung is doing badly is because in global the market, the competition is tough and big companies are trying to target the customers which Samsung aim (Price, 1).  Its market share is also dropping as it is unable to face the higher competition. For example, new markets such as Huawei and Lenovo have products with high-end specifications and they sell them in low prices. The point is that the company sells its product in higher prices while other electronic industries emerging in the market are providing similar products with low prices. This brings a big challenge to the company making it lose its product value in the market (Price, 1). It is a fact that the company is unable to compete due to its own faults.  For example, it launched Galaxy S6 which led to a huge market expenses as the company failed to estimate the sales figure. This made the company’s operation cost to drop (Price, 1). The company is controlled by anticipation of demand whereby they put higher prices which makes it difficult to differentiate itself from competitors.

Works Cited

Elgan Mike. For Samsung, Stealing, Cheating and Lying Are Business As Usual. 2013.

Retrieved from: http://www.cultofmac.com/254695/for-samsung-stealing-cheating-and-lying-are-business-as-usual/

 

Price Rob. Samsung is fighting a massive global trend and losing badly. 2015

Retrieved from; http://uk.businessinsider.com/samsung-is-fighting-a-massive-global-trend-and-losing-badly-2015-9

 

Chakrabarty Jayadltya.  Top 5 reasons why Samsung smartphones actually suck. 2015.

Retrieved from; https://www.igadgetsworld.com/top-5-reasons-why-samsung-smartphones-actually-suck/