Essay On Samsung Galaxy

1097 Words5 Pages
A smartphone is a handheld device that enable users to make and receive phone calls and text messages. The basic feature of a smartphone is the capability to run small computer programs such as applications, also known as apps. The constant rise of smartphone users are exponential as the development in technology and telecommunication sector continue to grow. In Malaysia, the few well-known smartphone brands are namely Apple, Samsung, HTC, Sony, and Nokia. Among these smartphone brands, Samsung Galaxy and Apple iPhone have the strongest rivalry in the market. As we’ve picked Samsung as our company, the product we’ve chosen is Samsung Galaxy S5 and iPhone 5s from Apple as our competitor. According to Klamroth, the Samsung Galaxy S5 is competing…show more content…
Firstly, the effect on the demand is caused by its substitutes. When Samsung Galaxy was first introduced in 2009, there was a huge technology gap between its rival. As time goes by, closer substitutes came in the market. As a result, the demand of Samsung Galaxy decreased during the launch of new competitor products that are equal in level of technology, or quality. On the contrary, the brand’s image is vital as it affects the demand of Samsung Galaxy positively. Customers of Samsung incline to be loyal to the brand by buying a Samsung smartphone. Consequently, friends and families are recommended to purchase Samsung’s products causing the demand to increase. Also, Samsung Galaxy is consider as a luxury product. Hence, its demand is sensitive to the change in income buyers. When individuals’ income increase, the demand of Samsung Galaxy rises according to the proportion displaying how the demand is related to their will to pay. Based on his Kinked demand curved model, Sweezy (1939) states that the oligopoly market are affected by the rigidity of the price; so, if an oligopolistic increased its price it would probably lose most of its market share. The same thing applies to the demand of

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