Samsung-Milestone 1
Does the Samsung have a comparative advantage over its rivals? Yes, Samsung has a comparative advantage over its rivals which is its pricing. The products that Samsung produces have prices ranging from high to low-end markets. Samsung having such a comparative advantage allows for consumers to view the competitors and determine that economically Samsung is more reasonable. Samsung keeps up with the changes compared to the other competitors such as battery power, camera configuration, and processors while maintaining the affordable pricing.
Second, explain the supply and demand for its key product or service. Samsung is most popular product is their Samsung Galaxy family more specifically their smartphone products because I am a true die-hard fan myself. The galaxy S line has become the most prominent of them all. The Galaxy S series is the Samsung’s most high demand smartphone line and has a direct competition with the Apple iPhone. Since the pandemic has occurred among other companies Samsung has managed to become optimistic about the demand for the smartphones as inflation concerns, logical costs, higher components, and cost of labor/parts increase.
Third, provide the GDP of its home country and a key market (country). A South Korean company that originally was founded by Lee Byung-Chull in March 1938 as a grocery trading store; Samsung is South Korea’s largest company. The company forayed in the electronics industry in 1969; Samsung Electronics Corporation was born. South Korean is the home country for Samsung; GDP in South Korea is expected to reach 1710.00 USD Billion by the end of 2022 according to the Trading Economics global macro models and analysts’ expectations. However, as of 2021 South Korea’s GDP was around $1.8 trillion U.S. dollars. South Korea’s key markets range from industries such as electronics, automobiles, telecommunications, shipbuilding, chemicals, and steel.
How does fluctuations in GDP, economic growth, investments, and patents affect the company’s profitability? Due to the fluctuations, the demand for smartphones has decreased as of the 3Q profit growth. According to Bloomberg, Samsung has recently sparked a $30 billion tech rally after 21% jump in sales. There was a fear amongst the investors in regard to the impact of weakening consumer demand and the soaring materials costs. Investments consist of the nation’s capital stock of buildings, equipment’s, software, and inventories during a year or investment spending. Samsung Electronics shares consist of original shares listed on the Korea Stock Exchange (KRX) and global depository receipts (GDRs) listed on London Stock Exchange (LSE) and Luxembourg Stock Exchange (LuxSE). Patents are the legal instruments intended to encourage innovation by providing a limited monopoly to the inventor in return for the disclosure of the invention. Samsung currently has 4,095 patents. Samsung has been ranked the first in the number of granted patents for 5G according to the German BMWi. Samsung leads in the number of granted patents that are enforceable, which means Samsung’s patents are officially acknowledged for its exclusive right. The patents give Samsung the ability to advance 5G and spearhead the development of the next generation telecommunication technologies that will transform lives in the future daily.
Samsung v.s Apple v.s Google v.s Motorola. This is the current state of the American phone market. While you come across diehard fans of all these brands, Apple is the biggest. Apple has a massive advantage over Samsung. That advantage is the name. While Samsung may hold an advantage outside of the united states, the majority is apple. Apple's sales are around 50% of the market, while all other phone brands hold around 45-50%, including Samsung (Counterpoint). While Samsung holds a more extensive variety of smartphones, they still have yet to beat the name Apple. Today Samsung and apple still fight each other until one falls, which as of right now, Apple looks like the winner.