Factors to consider while developing a pricing strategy of Samsung Company

Introduction 

Pricing strategy refers to the techniques used by firms to price or charge its products and services at fair prices so as to stay competitive in the market (Kim et al., 2011). Samsung is a Tech Company that produces and sells mobile phones, computers, fridges among other electronics. This paper seeks to present the factors to consider while developing a pricing strategy of Samsung Company. 

Cost 

Cost refers to expenses that the company incurs in the production and distribution of its products. We will assign prices that are at least equal to the total cost of producing a unit product. For example, if the total cost of producing Samsung s9 mobile phone will be $900, the price must be more than $900. This will help the company to use the revenues to recover the costs (Nagle et al., 2017). 

Customers 

Here we will first seek to understand what motivates the customers to buy electronic devices. Most electronic customers prefer cheaper high-quality products. Therefore, we will increase our quality and sell our products at affordable prices (Kim et al., 2011). 

Competitors 

Mobile phone industry has a lot of competition, therefore we will price our products at prices similar to our closest competitors like Apple.inc. For example, our Samsung Galaxy S9 mobile phone should be charged at price close to iPhone 9. 

Profitability 

The main aim of our company is to make profits. To do that, we will price our products slightly higher than the value of total costs and expenses. It is the profit that will enable future expansions (Nagle et al., 2017). For example, if the cost of producing a Samsung note 6 phone is $800, the considerable price should be $850 and make $50 as price. 

Positioning 

We will strive to be the cheapest, most innovative mobile phone manufacturer in the industry. This will help us win the large segment of the market as most innovative firms sell their products expensively (Kim et al., 2011). 

Conclusion 

In conclusion, this paper sought to find the factors to consider while developing the pricing strategy of Samsung, and it succeeded to do so. It has outlined how competitors, positioning, profitability costs, and customers will enable the firms to formulate an effective pricing strategy. 

References 

Kim, M. J., Chung, N., & Lee, C. K. (2011). The effect of perceived trust on electronic commerce: Shopping online for tourism products and services in South Korea. Tourism Management , 32 (2), 256-265. 

Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing more profitably . Routledge.