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Samsung electronics - Research Paper Example

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Samsung is headquartered Suwon in South Korea. It is a subsidiary company of the Samsung group. In the year 2012, it had revenue of nearly 70 percent of the total group’s revenue. Since the year 2009, Samsung…
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Samsung electronics
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Samsung electronics

Download file to see previous pages... Notably, the company was founded in the year 1938 as a trading company.
Samsung has since been manufacturing many electronic components. Some of these include lithium-ion, chips, hard drive, flash memory, and semiconductors for its major clients including Sony, Apple, Nokia, and HTC. However, in the recent years, Samsung electronics has since diversified its services into consumer electronics. Currently, Samsung is known as the largest mobile phones and smart phones manufacturer. This latest shift sparked the popularity of Samsung electronics’ Samsung Galaxy (Michell, 2011). Other than the phones, Samsung electronics is also a major tablet computers vendor particularly the Android powered Samsung Galaxy tab. Samsung also manufactures personal computers for commercial purposes. The figure below shows how the prices of the Samsung Galaxy smart phones, Samsung Galaxy tabs and Samsung personal computers have changed in the last two years (Russell and Cohn, 2012).
Opportunity cost refers to an activity a firm can undertake as an alternative to its current line of business. For Samsung, two such examples include the motor vehicle industry and home furniture industry. Samsung is considered a firm that produces very high quality products. Consumers have trust in their products. If the firm was to start manufacturing motor vehicles, the same quality would be transferred. This good quality comes at an affordable price. This would mean that even the average consumer would buy a high quality vehicle at an affordable price (Russell and Cohn, 2012). The same case applies to the production of home furniture. Consumers would be willing to pay for getting good service.
One scarcity issue faced by Samsung is the overwhelming demand for its products. In the year 2000, it had to issue licenses to various production companies worldwide to manufacture their products under their name. It is very possible to get a Samsung electronic device made in China and a ...Download file to see next pagesRead More
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