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Samsung New Marketing Strategy Essay

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Samsung's Marketing Strategy Marketing management is an important component for the success and profitability of a company in its respective industry or market. Samsung, a South Korean company, has faced intense competition from Apple and other smartphone companies across the globe. Since 2014, Samsung's profit and market share have significantly declined due to intense competition from Apple and Chinese players. However, Samsung has experienced tremendous profitability and increased in the past year because of the adoption of new strategies. According to Jung -- a (2016), Samsung Electronics predicted its best quarterly results in over two years in June 2016. The company experienced increased profitability at a time when the smartphone sector or industry was characterized by declining sales. While Apple, LG Electronics, and Chinese players struggled to cope with the decreased demand for smartphones, Samsung enjoyed high margins of operating profits estimated at $7bn for the June 2016 quarter (Jung-a, 2016).

The profitability and increased market share of Samsung during this period is attributable to the development and use of a new phone strategy. The marketing strategy contributed to increased sales at a time when other competitors experienced slowing demand for the products. Samsung's phone strategy that contributed to the profitability...

One of the component of Samsung's marketing strategy is product diversification. Product diversification strategy entails adding new products to a range of existing ones or through altering or changing the existing product to enhance market share (Upadhyaya, 2015). For Samsung, this strategy entailed launching the latest flagship Galaxy S7, which is a simpler smartphone to help the firm reduce costs at a time when smartphone sales growth was declining across the globe. This was a new product that was added to Samsung's existing range of products and played a crucial role in its increased profitability since 16 million of these phones were shipped in the second quarter of 2016. The flagship Galaxy S7 that played a pivotal role in Samsung's recent profitability also incorporated some differentiating factors like a curved-edge look and convenient features like water and dust resistance, wireless charging, and longer battery life (Tanner, 2016).
The second component of Samsung's phone strategy product development, which basically entails creating new products for existing markets through examining how to meet customers' needs in an efficient manner and outperform rivals (Upadhyaya, 2015). Samsung introduced the blockbuster Galaxy S7 as a simpler product that would meet the…

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