Inspire the World, Create the Future (NEW)

SINCE 1938

SAMSUNG
ELECTRONICS CO

We will devote our human resources and technology to
create superior products and services, thereby
contributing to a better global society

INSPIRE THE WORLD CREATE THE FUTURE

CONTENT

INTRODUCTION
SKIMMING PRICE
COMPETITIVE PRICE
SAMSUNG'S SUCCES
OTHER BUSINESS

FOLLOW THE
SAMSUNG
COMPANY

SAMSUNG: CRITUQE
HUAWEI PRICE

According to sale smartphone Samsung in 2019,

INTRODUCTION Samsung is the number one in the top brand in
the worldwide chooses by customers (Gartner

2019). This statistic represents the worldwide

Samsung Company is one of the world’s largest smartphone sale to end users by vendor in two

producers of electronic devices was established quarters in 2019. The brand smartphone
in March 1, 1938. The director of Samsung
Samsung sold approximately 75 thousand unit
Company is Lee Byung-Chull, South Korean.
followed by Huawei and Apple around 58
Samsung Company is the one of company that thousand and 38 thousand respectively.
start stand-alone without any collaboration with Moreover, this situation make Samsung realize
other company. For supported this statement,
the customers more prefer to their brands
Samsung apply the different price strategies to therefore Samsung strive to develop more design
recover cost of development in producing the
for new trend and the new specifications price
new system model and new variate of the model such as Galaxy A50s and Galaxy S20.
phone which Samsung adopt skimming price and

competitive price. Through these strategies,

Samsung are smart playing their price to make

sure their demand can constantly and the sale of

the product can be increase year by year. Based

on this situation, it makes Samsung is the good

choice for customer to buy this brand and make

Samsung is the one of successful smartphone

brand in the world by another brand which is

Huawei and Apple.

WHAT ARE THE PRICE
STRATEGIES IMPLEMENT

BY SAMSUNG

SKIMMING PRICE

Samsung's price-skimming strategy adapt by Samsung to new product or launched
products. Samsung sells their handphone at a relatively high price due to its
uniqueness and benefits to customers or referred to as the Wow factor. What are the
features that Samsung have to set the price skimming is new camera features. For
example, camera on the Galaxy S10 phone, it use the latest technology to enhance
colors in ultra-high definition and reduce blur with integrated stabilizer software. The
second is their android version, Samsung use the latest android version which is
version 9.0. This version are making easier to do everything with one hand. The last is,
wireless power-share. This function are letting the phone charge using another Qi
device without the need for a charger. It also can charge two devices at the same time
using just one charger

Samsung Company has sold over
6 million units of Samsung Galaxy
A51 and 5 million units of
Samsung Galaxy A10s in Q1
2020, making it the best-selling
smartphone of the company for
that period (Canalys, 8 May
2020). In a short, by pursing a
new model of handphone make
Samsung gain the higher sale in
2010 to 2014 and sale still
maintain 70 million to 80 million in
2015 to 2019. The sale drop-
down until 60 million to 50 million
in 2020 caused the Covid-19.

COMPETITIVE
PRICING

Pricing is one of the trickiest issues in marketing as it requires understanding the product and
understanding the market. Samsung is faced with highly rivalry by others in the market like Apple,
Huawei, and Xiaomi among others. Next to reference in the first paragraph that Sepherteladze said
that to curb this competition and in order to be competitive, Samsung undertakes a pricing strategy
which is winning. Samsung use the competitive pricing strategy when they put relative same price with
other competitor such as Apple and Huawei but Samsung provided better features and played cost
competition to make its market.

Why Samsung do the competitive strategy? Because Samsung use this strategy focus on the middle
class and lower class. It is to attract this class to buy this Samsung brand handphone. Nowadays,
Samsung looks that many customers want the high quality handphone but at the same time the price
is lower. So, Samsung decide to developing the handphone that provide the specification relative
same like other such as Apple. To developing the new brand, Samsung must know what the
technology that convenient with the current situation to follow that their objective to the customer which
is create the products and services that give customers the best satisfaction. (Samsung, 2020).

WHY COMPETITORS
NOT BEEN ABLE TO MIMIC

SAMSUNG’S SUCCESS

The introduction of Samsung by 1938 Before Samsung produced the new
as well as they offer affordable and phone, they will do the product value to
reasonable price especially to the the customer (VTC). It help Samsung to
worldwide on targeting the high class get the guide for setting an initial
and middle-class customer. In contract, price for their new phone. In this term,
the Samsung objective is to inspiring Samsung focus on second and third
the world and create the future and to step which is identify all of the factors
lead innovations in technology, solution that differentiation the product from this
and product that inspire communities all next closest substitute and determine
over the world to create a better world the monetary value to the customer of
(SAMSUNG, 2014). That means, each these differentiating factors. There
Samsung will be developing the new are some of framework about the new
design and new features especially phone of Samsung.
handphone to satisfy their customer.

WHAT The seller has to setting the initial price in higher
INSIGHTS price due to the quantity teak trees right now very
CAN OTHER low and also to cover all the variable cost. As we
BUSINESSES can see that the price of teak trees year by year
DRAW FROM will rose up because the teak wood is very unique
SAMSUNG’S and traditionally. Beside that, the customer that
COMPANY lovely on the wood furniture, they willing to pay
although the price is very high. Only lovely wood
Without we realize, Teak Furniture also use the can observe the uniqueness of teak trees
skimming price to their business. The quality of furniture. To conclude, the skimming price strategy
the teak trees is playing an important to the is the best of price strategies as customer still buy
business provide the spike price. It is because even the price is setting high. Pricing is very
the high durability of the teak tress and can use crucial for a firm as it ensures that the company
in long-term period. According to communicates to the consumers the value which
Usahawan.com it mentions Malaysia expects they attach to the product. Overall, meaning of the
export earnings from the furniture industry to high price of teak furniture is to give the value of
rise to RM16 billion by 2020. Nowadays, these product that is very unique for the customer.
teak trees have been kept by the government,
only mature trees that can be produce to
become furniture. The demand of teak trees
furniture is rose up because their high durability.

SAMSUNG:
CRITIQUE

HUAWEI PRICE

In technology world, the handphone Besides that, Huawei may have to consider
company compete to give more reasonable a different pricing strategy. Whether
and affordable prices to their customers. consciously or unconsciously, customers
Therefore, Huawei implement the low-cost use pricing as a quality and reliability
strategy as they aimed to sell high rather indicator. In addition, to avoid the negative
than others brand handphone. But in the perspective in term “Made in China” about
technology world, when Huawei put the low- the Huawei price, I suggest for company
cost strategy, it’s doesn’t mean can overtake Huawei to use the skimming pricing to make
sale ofSamsung or iPhone. We know that the brand of Huawei become famous.
Huawei performance in-term camera is good In conclusion, Huawei can change their price
andthe customer very satisfied about it. But strategy to the skimming pricing, because it
in term sale, it can’t go toward.bit can generate more profit and can overtake
the sale of Samsung or
iPhone. Every company have their objective
and mission in term setting price to high or
low. It is depending how the company to
control their price to make it comfortable for
consumer to pay and can get the value of
the product.

APPENDIX

https://www.patentlyapple.com/patently-apple/2019/08/gartners-global-q2-2019-smartphone-sales-report-shows-apples-
decline-was-less-than-idc-reported.html

https://www.forbes.com/sites/johnkoetsier/2019/05/01/smartphone-shipments-apple-down-30-samsung-down-8-but-
huawei-up-50/#bb8a40276b00

http://english.hani.co.kr/arti/english_edition/e_business/923843.html
https://www.economist.com/business/2017/09/14/rivalry-between-apple-and-samsung-in-smartphones-will-grow-fiercer

https://www.statista.com/statistics/299144/samsung-smartphone-shipments-worldwide/
https://www.mida.gov.my/home/4038/news/furniture-exports-keep-growing/
https://www.grin.com/document/278578

https://howtowriteadmissionessay266.blogspot.com/2019/12/pricing-strategy-of-samsung-and-apple.html
https://martinroll.com/resources/articles/strategy/huawei-transforming-chinese-technology-business-global-
brand/#:~:text=The%20core%20of%20Huawei's%20pricing,another%20low%2Dcost%20Chinese%20provider.

https://www.samsung.com/uk/support/mobile-devices/how-to-use-wireless-powershare/

THANK YOU