Market Essay Example | Topics and Well Written Essays - 1250 words - 1

Market - Essay Example The mobile phone is an advanced form of the Samsung Galaxy S3. It is also a differentiated product of the rival mobile phone company, Apple. Of late, Samsung has positioned itself to take over the market for manufacture of smart phones. The company has been innovative because they were among the first to manufacture smart phone. A smart phone is a mobile phone that is built on a mobile operating system that has more advanced capability of computing and connectivity as compared to the common feature phone (Tidd, 1997). The phone is made up of very special features that make it different from other smart phones and, thus more preferred by many people. Such features include owner recognition ability, high processing speed; a screen that is only recognizes the owner and finger prints identification ability. Industry and market structure of Samsung Galaxy S4 Samsung operates in the telecommunications sector. This is because the company manufactures gadgets used for communicating, such as mobile phones, laptops, tablets and smart TV’s. Samsung Galaxy S4 itself is used to exchange messages, telephone calls, and emails. This phone in a competitive market because there are other smart phone companies, for example, Apple, Techno, LG, Nokia and Alcatel. However, Samsung has been more innovative thus has gained a competitive advantage over these other companies because it has managed to differentiate its products from other rival products. Samsung Company has warehouses in many locations in the world. The major locations are China, Singapore, Japan and India. The most productive of all these firms is located in China. China has the largest population in the world that supplies cheap labour to the Samsung firm in China. The population is also well equipped with the latest manufacturing technology that ensures materials are not wasted. In addition, China has all the minerals that are required to manufacture the several parts of this phone. All these cheap deals put Sa msung at a competitive advantage. In addition, China enjoys cheap electrical energy from coal and nuclear power. This combination of cheap overheads makes the final product cheap compared to those of the rival companies (Urban, 1980). Samsung Galaxy S4 can also be said to be in a competitive market because it experience competition from other electronic companies that produce communication gadgets. For example, companies that manufacture laptops are in competition because they all access internet and used to achieve other communication purposes (Tidd, 1997). The phone is also in competition with iPhone, iPod and tablet companies, thus it is experiencing true competition. Elasticity of Samsung Galaxy S4 Samsung Galaxy S4 is a special product because its demand rises despite the high price. The smart phone is bought, especially, by those with high disposable incomes. However, it is also bought as a product to show off especially by people who do not have enough disposable income. The product was made with target customer being the well off in society but many have acquired it because of its versatile nature (Urban, 1980). The product, therefore, experiences complete elastic kind of demand. Elastic kind of demand has very little or no effect on, especially price of luxuries such as Samsung galaxy S4. Therefore, the price of the phone remained constant despite competition from Apple, Nokia and LG. Laws of supply and demand have affecting production and pricing of Samsung Galaxy