I choose Samsung as my multinational corporation for this course project. Samsung has a comparative advantage over many of its rivals. The top competitors in Samsung’s market include Apple and Motorola. Samsung’s advantage over Apple and Motorola includes its variety of product, loyal fan base and ease of product accessibility. Their biggest rival in the market is Apple with a rivalry as intense as politics. Samsung has struggled this year with suppl issues due to the chip shortage that is currently affecting most of the electronics market. However, even with supply issues, NASDAQ reports Samsung had” its highest fourth-quarter profit in four years. (Lee & Yang, 2022).” Time magazine reported in 2019 that Samsung accounted for approximately 13% of South Korea’s GDP (Gunia, 2021). The mobile phone industry only accounts for approximately 5% GDP in the United States, one of Samsung’s main markets. If GDP, economic growth, investments, or patents fluctuate the growth of the company can stall. The GDP can be increased or lessened by market volatility. As seen with the 2020 pandemic as the GDP and economic growth in the US and Korea fluctuated, Samsung was able to maintain profitability. The constant battle with competitors over patents however infringes on profits. Once a court finally comes to a resolution technology has often already moved on wasting the time and legal fees of each company involved.
References List
Gunia, A. (2021, April 26). Samsung is one of the 2021 TIME100 most influential companies. Time. Retrieved July 3, 2022, from https://time.com/collection/time100-companies/5950049/samsung/
Lee, J., & Yang, H. (2022, January 27). Samsung Elec says demand to recover in 2022, but supply chain challenges persist. Nasdaq. Retrieved July 3, 2022, from https://www.nasdaq.com/articles/samsung-elec-says-demand-to-recover-in-2022-but-supply-chain-challenges-persist
SAMSUNG SHOWS BREAK-UPS ARE HARD. (2021). Investors Chronicle, , 24. Retrieved from https://ezproxy.regent.edu/login?url=https://www.proquest.com/trade-journals/samsung-shows-break-ups-are-hard/docview/2605397709/se-2?accountid=13479
Yang, J. L. (2013). Trade agency rules against samsung in patent dispute with apple (posted 2013-08-10 03:20:55): U.S. international trade commission ruled friday samsung smartphones infringed two apple patents.