Monday, September 23, 2019

Monopolistic competition Research Paper Example | Topics and Well Written Essays - 1500 words

Monopolistic competition - Research Paper Example Since then, availability has increased across the world and the industry has grown with emergency and growth of new mobile phone companies because demand for cell phones has gone up. Currently, the smart phone market is the most sought after with players in the industry striving for a place in the market. Among the global leaders in the industry are Samsung, Apple, LG, Nokia, LG, and ZTE, while other minor companies tend to dominate their respective regions of operation. Samsung still leads in the smart phone market (Table 1 and Table 2). This paper discusses Samsung as a mobile manufacturer, and its relation to other players in the industry. As a manufacturing company in a highly competitive industry that thrives on innovation and technology, Samsung has perfected the art of customization in its efforts to differentiate its products from those of its competition. In a bid to avoid commoditization therefore, the company customised their production as much as they could. More than 50 percent of the company’s memory chips have been special orders for other manufacturers including Nokia, Microsoft and Dell. At one instance the firm undertook an effort that was aimed at converting its product line to a high end premium goods one from a previously low end commodity product line. In addition, the company has strived to lay an emphasis on hardware technology as opposed to its competition such as Apple and Samsung who concentrate on getting into proprietary content and software such as movies, music, and games. Though there are many mobile phones, each brand or company exhibits a high level of differentiation in the minds of consumers. This could be as a result of continuous usage and thorough advertising. Therefore, existence of a large number of sellers who sell close substitute products that are differentiated has led to monopolistic competition in the mobile phone industry. Samsung competes with other mobile phone companies by exercising

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