An article published by business today on November 6, 2013 suggests that Samsung electronics vows more aggressive investment in order to take on apple. As of now the market share for smartphone is in favour of samsung.
with 33% of the worlds smartphone share with samsung and 17 % of it with apple. These two are the leading producers of smartphone in the world.
Now samsung also hopes to gain majority of the share in the tablet industry, where as of now apple is leading. Samsung is ready to invest in their range of electronics in order to expand the range of their products. This will be a big investment in the R and D department and aims at increasing sales of the coming galaxy tab range.
In my opinion this investment will not yield benefits samsung hopes to achieve. When it comes to buying a tablet or any electronic device for that matter consumers tend to purchase what they personally like. In other words Brand Loyalty plays a major role. so people who are comfortable with the I pad will buy the new I pads as they come along.
Although Samsung’s investment may diversify its range of products and provide a cheaper substitute for the I pad, it may not increase its market share significantly.
On top of that samsung’s investment of $14 billion will seriously effect its working capital which would interfere with the daily running of the business.
In conclusion I feel that samsung should focus on the marketing of their tablets and conduct a few market surveys in order to improve their already existing tabs as per the wants of their already existing costumers.
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