Samsung Localization Strategy

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Course Concepts: (40pts) This article shows the concept of profit growth. Profit growth is defined as the rate that the net profits raise over time. The two ways consist of selling more products and entering the new market. This is related to the article as Samsung, the biggest mobile-phone cooperation, is facing the arduous situation in China, and trying to solve the issue to formulate the new strategy for increasing its profit growth. In this article, some people in Asian are starting to feel that the Samsung’s mobile-phones cost for a higher price if comparing to the other competitors, such as XIAOMI. It has caused the operating profit in this year to fall about 60% in China. Therefore, Samsung wants to keep and save the profits. The company…show more content…
Localization strategy is defined as the strategy to increase profitability that provides the goods or services to match taste and preferences in different nations’ markets. This is related to this article because of matching the taste and preferences in China, Samsung not only will reduce the price to attractive purchasing, but also will release the new line called Galaxy A: similar to the Galaxy S device at lower price. When the operation encounters the challenge, the company needs to make the new local approach to react to the circumstances. In the object, Samsung has the crisis of producing surplus and sales in China. Consequently, the brand will adjust the localization strategy to fit China, based on the price pressure and buyer…show more content…
The first opportunity is the retail stores that will acquire in China. China has many online retail stores and physical storefronts. Since it is a big country, regular chain of Samsung stores cannot be everywhere. Consequently, if Samsung released the new product in China, the retail stores can increase their sales and promotions. The second opportunity is freight industries. Predicatively, Samsung will enhance selling in China by reducing cost plus releasing the new cheaper mobile-phone. It will create more freight transport works. Since the new product is produced in Vietnam, the shipping to China will be developed; also the cost of transportation to stores will be raised inside China as the Samsung 's new strategy of sale in China is

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