Samsung as a Monopolist

Topics: Marketing, Perfect competition, Monopolistic competition Pages: 3 (737 words) Published: March 19, 2013
1. Large Number of Sellers

In a monopolistic market there are relatively large number of sellers who take up a part of the market share depending on the demand. So Samsung in the same way receives competition from other smartphone manufacturers like nokia,apple,blackberry etc market share according to the Comscore report ’12 of Samsung is reported to be 26.3% leading apple with 17.8%

2. Similar, But Not Identical Goods

In monopolistically competitive market the manufacturers sell slightly differentiated products than eachoder ie- product difrentiation. The differentiation is used by the producers to attract demand and steal marketshare. Similarly Samsung has various technologies embedded in their smartphones some are patented/ licensed thereby owning paid permission to use that technology like the recently announced eye scrolling technology enabling you to scroll pages with eye gesture. Other features that clearly difrentiate Samsung from other manufacturers are 1. Better display

2. Budget phones
3. Solid hardware
4. Smooth graphical user interface

3. Selling Cost

It is a unique feature of monopolistic competition. In such type of market, due to product differentiation, every firm has to incur some additional expenditure in the form of selling cost. This cost includes sales promotion expenses, advertisement expenses, salaries of marketing staff, etc. In the same way Samsung has to undertake such expenses to attract consumers which display the best features in their smartphones.reportedly Samsung have spent nearly 200 million dollars for marketing-only in the year 2012 mainly due to their newer introductions Samsung galaxy 3 and Samsung note 2.

4. Absence of Interdependence

Large numbers of firms are different in their size. Each firm has its own production and marketing policy. So no firm is influenced by other firm. All are independent. Samsung- like in the phone market many other...
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