MKT week 11 - Discuss how Samsung differentiates its...

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Discuss how Samsung differentiates its products from its competitors. Samsung believes in customization for differentiating itself from its competitors. To avoid commoditization, they customized as much production as possible. Over half of its memory chips have been special orders for Dell, Microsoft and Nokia. The company wide effort to convert the company’s product line from an emphasis on low-end commodities to high-end premium goods. Samsung had been a product-driven company that focused on manufacturing products at lower cost than competitors and building market share through economies of scale. Discuss the impact of new competition on Samsung’s financial performance. Samsung faced decline in its operating profit for the last quarter in 2008. Its operating profit was 1.48 trillion won; a 38% decline from 2.4 trillion won in the second quarter. This operating loss is associated with the severe price competition, cost increases, and sluggish demand in the industry. Samsung experienced
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