Implementation of Strategy Evaluation

At each stage, the pricing strategy that Samsung use is skimming price strategy. Samsung uses skimming price strategy that low down the price in order to maintain sales. One way they can lower down the price is when they released a new model of mobile phone, they will decrease the price of the previous model in order to attract for customer and make it more affordable. The benefits of using skimming price strategy is to create a more effective segmentation and maximize the profit from each of the segment (Bhasin, 2016).

Before Samsung reaching the maturity, they have been through the shakeout stage. During that time, there are many competitors in the market such as HTC and Apple. Even though there are strong competitors in the market, Samsung sold 60.2 million of mobile phones about 16 percent of sales increase at the third quarter of 2009 and they are expected to achieve 20 percent of market share on the next quarter (Peddie, 2012).

There are some strategies to help Samsung to keep staying in the mature market, such as maintain the competitive advantages, low cost production, differentiation, customer loyalty, and extending the profit opportunities.

According to Tibken (2014) Samsung manage to maintain the competitive advantage through few ways. One of the technique is to more focusing on the software and services in order to increase the loyal users. Figuring out what is the end goal, for instance they can choose the path that Apple made which is keep the product price steady losing the lead position or they can introduce the lower end devices but with high end specs with a cut prices to gain the market share. In addition, in order to maintain the competitive advantages, Samsung as far as possible to understand the customers demand ahead of its competitors, keeping input at least 9 percent of each year sales revenue to department of R&D, remain their technology level and intellectual property rights strong (Miranti, 2012). Samsung also outsourcing the manufacturing of the lower end device in order to get the higher profitability (Armasu, 2013).

In order to maintaining the customer satisfaction and loyalty, Samsung using the Customer Relationship Management (CRM) to keep track on the customer’s opinion. Samsung using social media such as Facebook is a way of using CRM, they post the latest news on the Facebook to let all the customer to receive the information, and they also reply the question that customer have in order to solve the problems (Rofizar, 2010). A higher customer satisfaction is always accompanying with a good customer services. Samsung settled down a wide coverage of customer service such as online website, Samsung shop, mobile center and other smartphone retail stores to support its customer service (Anh, Quang, & Thang, 2016). These locations are not only doing the after-sales services but also introduce the newest feature to strength the relationship with existing customers.

Samsung is using few ways to extending the volume growth. One way is increasing the penetration, there are different from other mobile phone users in the current market. In order to increase its market share, Samsung targeting different customer segments. They developed the smartphones in different sizes, shapes and technology input. Therefore, customers with different income level can easily find out the one which can fix their need (Anh, Quang, & Thang, 2016). Another way is to expand the market, introduce some new functions or new design to the market, such as Samsung released the VR to let the user experience new technology and the world’s first curve shape smartphone.

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