In making themselves one of the most quality and innovative brands within the electronics industry, Samsung strives to be sustainable and achieving a sustainable competitive advantage by ensuring it remains as the leader within the digital market.
Samsung has differentiated its products from its competitors from a platform of three categories. These categories are product attributes, firm linkages, and firm-customer relationships. The products produced by Samsung are similar to those produced by its many competitors, thus making the company deal with this sort of competition in five different industries. Samsung ensures that the features it incorporates within its products are different and unique, e.g. it added a pod cast feature within its headsets so as to give more functionality to customers. Samsung identified that feature differences is a major attraction to customers.
Discuss the impact of new competition on Samsung's financial performance.
The impact of new competition on Samsung's financial performance has been and up and down process given that its competitors are constantly coming up with innovative ways to keep competition aggressive. Samsung has over the years been forced to reduce their prices on various items. This has led to increased volumes with higher penetration levels as a result of lower prices and increased marketing.
Samsung's new competition has continued to launch Samsung's brand to become the world's largest conglomerate with annual revenues as of 2008 standing at US $ 173.4 Billion. Many firms in South Korea and more so those within the electronics industry continue to be dependent on Samsung for the supply of vital electronic components and raw materials such as the semiconductor chips and the LCD panels.
Identity any new marketing strategies that Samsung should consider in reaction to new Chinese competition
New marketing strategies...