Samsung Electronics had made a forecast report on their earnings for July to September quarter. Unlike the forecasts made by analysts, Samsung is actually capable to make a huge success by having a 25% jump in operating profit comparatively to the previous year.

Before the publishing by the financial forecast, many analysts were expecting a slow growing rate on Samsung’s profit, since they assumed Samsung might be affected by other cheap mobile phone makers. However, Samsung did a phenomenal job due to their successful brand positioning.

Not like Apple who provided expensive iPhones only, Samsung sold both high-cost and low-cost smartphones, that strategy allows Samsung to become the leader of the world phone market. In order to compete with Apple’s iPhone in the range of high-costing phones, Samsung introduced Galaxy S4. Otherwise, Samsung did a better job in low-cost smart market. The company recognized the opportunity of growing emerging market as the key of success; hence, they introduced the low-cost smartphones to focus the emerging market in India and China. Samsung would earn huge advantage and tended to get to consumers’ mind easily, since they was the first company who introduced low-cost phones to these countries. The success of phone selling in China and India contributed a lot on Samsung’s financial report for June to September quarter.

References:

“Samsung forecasts record quarterly profit .” BBS NEWS Business (2013): n.pag. BBC. Web. 25 Sep 2013.

Recently, I have watched a movie called “inside job” which describes how investment bank cheat the buyer of the financial derivatives during the financial crisis of 2008. It is not a traditional type of cheat, which concerns the non-conforming goods. It is more about the moral obligation in essence.

The financial institution such as Lehman brother and Goldman sachs sells numerous highly risky CDO mainly consist of bad credit house loan to buyers. The problem is those firms claim that those CDO is rated highest, which means those assets are safe and definitely profitable. When those derivatives’ market collapse, the innocent buyers suffer from it and the banker gains. The banker can even make more profit from the CDS that they cooperate with the insurance company.

The shocking fact is that those bankers are not being arrested, instead, they have better works. The public blames their action and can do nothing at all. This is mainly due to the loopholes of the laws. My opinion is we can not always look for the law to limit the action of people, the law can not be perfect at any time. The law is designed by human beings , so the human beings can definitely find the weakness of it. The core problem we should consider is everyone in those society must have social obligation. we can not do immoral things to cheat others.

Reference:

Charles, Ferguson, dir. Inside Job . Dir. Marrs Audrey. Sony Pictures Classics, 2010. Film. 16 Sept 2013.