Despite Samsungs latest disappointment with Samsung Galaxy Note7, the company has enjoyed relative success with its other flagship products. The company chose of marketing mix has provided the company with both market leadership and revenue. The company is a price leader that prices its products as high products. The company has some of the highest products and its pricing strategy does not vary irrespective of the location. The standardized pricing strategy is meant spur the company maintain their profit margin in Asia, Europe and South America. The same prices are also set in the US.
Samsung uses an intelligent logistics system that involves shipping and distribution, even though the company, mainly advantages the benefits of the exclusive dealerships, their producers are also sold by major authorized distributor is worldwide. The company also offer its products and services through their network provides such as AT&T. the company has gained traction in the emerging markets such as Asia by using the electronic retail chains, sale and service dealers and even their own branded shops. In the US Samsungs reliance solely on the AT&T the similar network providers gives them an edge over their competitors as these are also the major distributors with elaborate distribution network in the country.
Looking at Samsungs distribution strategy, it is clear that the company favors dealerships over the other distribution strategy because it help the company in keeping the distribution costs as low as possible and maximize their profits per handset. For example, the company cuts on its demurrage cost and maintain a tight control of the cost of managing the inventory by ensuring that the dealers who win dealerships bids must be able to claim and store their Samsung inventory thereby helping the company to cuts down on the cost of distribution.
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