Samsung Sales Strategy Essay Example
Executive Summary
Mobile device is the most important communication tools in the modern world. In Hong Kong, each person has over 1.5 mobile phones in average and monthly mobile sales quantity is around 400k. The position of mobile is not a communication tools only, it is a fashion. People will swap a new models even though the existing one still in a good condition. Base on the large market demand, many companies are fighting with the revenue and market share. Samsung is one of the mobile brands that success in these years. Compare with 2010, Samsung mobile sales quantity is triple in this year and achieves HK market share number 1 in the 3rd quarter, defeated the tradition brand Nokia and the new mobile brand Apple. Facing on the large increment of demand in the market, the stock supply and the logistic system of Samsung Mobile must be under a high challenging situation; especially mobile is one of the fast moving products with a short product life cycle. Hence, I would like to study how Samsung Electronics Hong Kong (SEHK) using the pricing strategy on the logistics and supply chain management among each stage of product life cycle, to maximize the profit and sustain the number one market share situation.
Operation feature of SEHK
SEHK, mobile team does not need to produce the product by herself while just need to place stock order from headquarter (HQ) in weekly basis. After placing order to HQ, the stock will be delivered to SEHK warehouse after one month. The core business of SEHK is selling products to end user. Since there is no any brand shops and online purchase service, SEHK need to rely on the third parties to sell the goods. Most of the selling points in Hong Kong are open channels, operators and individual shops. Therefore, SEHK need to work with these channels with different strategies and to keep the good relationship with them to maintain the contingency sales.
For every business, the final target must relate to the company profit &
Mobile device is the most important communication tools in the modern world. In Hong Kong, each person has over 1.5 mobile phones in average and monthly mobile sales quantity is around 400k. The position of mobile is not a communication tools only, it is a fashion. People will swap a new models even though the existing one still in a good condition. Base on the large market demand, many companies are fighting with the revenue and market share. Samsung is one of the mobile brands that success in these years. Compare with 2010, Samsung mobile sales quantity is triple in this year and achieves HK market share number 1 in the 3rd quarter, defeated the tradition brand Nokia and the new mobile brand Apple. Facing on the large increment of demand in the market, the stock supply and the logistic system of Samsung Mobile must be under a high challenging situation; especially mobile is one of the fast moving products with a short product life cycle. Hence, I would like to study how Samsung Electronics Hong Kong (SEHK) using the pricing strategy on the logistics and supply chain management among each stage of product life cycle, to maximize the profit and sustain the number one market share situation.
Operation feature of SEHK
SEHK, mobile team does not need to produce the product by herself while just need to place stock order from headquarter (HQ) in weekly basis. After placing order to HQ, the stock will be delivered to SEHK warehouse after one month. The core business of SEHK is selling products to end user. Since there is no any brand shops and online purchase service, SEHK need to rely on the third parties to sell the goods. Most of the selling points in Hong Kong are open channels, operators and individual shops. Therefore, SEHK need to work with these channels with different strategies and to keep the good relationship with them to maintain the contingency sales.
For every business, the final target must relate to the company profit &