The Distribution Strategy of Samsung

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Samsung marketing strategy in china

Nowadays, China’s communication industry is developing rapidly, and China has become the biggest mobile phone market all over the world. There are many international renowned mobile phone manufactures and local producers in this market and these companies are competing fiercely in China’s mobile phone industry. It is known that, in 1999, when the domestic mobile phone brands entered the mobile phone market, few people had expected that the domestic mobile phone brands would survive in this market. However, with the passage of time, the local brands made great development and their total market share surpassed that of the international mobile phone giants including Nokia and Motorola.

In 2001, the market share of domestic mobile phone was 15%; in 2002, the rate was more than 30%; and in 2003, the market share rose to more than 50%, which was a historical breakthrough for the domestic brands. However, since 2004, the condition of China-made mobile phones has become negative. As the competition in this market gets fiercer, foreign mobile phone manufactures are consistently developing new brands and improving their distribution channels, and the domestic brands have lost the once-owned channel advantages. Because of some problems of domestic mobile phone industry, the market share rate has dropped dramatically, and most of the domestic mobile phone companies have suffered great losses. What was worse, some domestic mobile phone enterprises such as PANDA, EASTCOM, and SHOUXIN were so badly defeated that they were out of the Chinese mobile phone market.

In this market with fierce competition, Samsung–a Korean mobile phone brand has developed quickly in recent years and continuously won the first place in market share. As one of the world’s top three major mobile phone manufacturers and the Korea phone leader, Samsung mobile phone’s product concept is "fashion-leading technology". Its brand development strategy is to...
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