Samsung is one of the most famous electronics companies whose technological superiority is only rivaled by Apple. It is quite popular for its televisions and smartphones among other electronics such as wearable devices and cameras. Since 2009, Samsung has had remarkable success in the electronics industry because of its high quality and affordable televisions and smartphones. Its flagship product is the Galaxy brand of phones. Most of its revenues are mainly in the sale of smartphones. The level of rivalry in the electronics industry is quite high because of the increasing number of competing brands that have immense financial strength. Some of its key competitors are LG, Apple, Toshiba, Sony, Phillips, and Panasonic among many other industry players. The entry of new brands into the electronics industry is low because it requires a lot of capital and the sales are highly dependent on the brand image ( Banerjee, 2017) . Furthermore, the level of innovation is quite high because their competitive advantages often become obsolete within six months. Therefore, the level of competitive rivalry is quite high in the electronics industry.
Trade policies describe the regulations and agreements that control exports and imports from foreign countries. There is no specific international trade policy in the electronics industry. However, individual countries often set up trade policies that will encourage their individual electronics companies to improve their trade in the international market. For instance, South Korea supported particular conglomerates or companies in their economy. In the electronics industry, they supported Samsung by developing infrastructure and lowering taxes so that its goods can gain an international market ( Shah & Kanagal, 2002) . Similar policies were implemented in China, Taiwan, and Japan that allowed their electronics industry to develop rapidly over the past four decades. However, in the US and Europe, the governments do not support specific companies. Furthermore, electronics companies have not agreed on government policies that are essential or desired. Also, there is no community of interest between the bigger and small firms. The big firms act entirely on their own. Besides, the increasing technological advancements in the electronics industry have grown beyond the current government policies and in most cases, the players in the industry do not share similar concerns.
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The trade policies have had a favorable impact on Samsung. The favorable trade policy in South Korea regarding Samsung and the lack of unity in the electronics industry in Europe and US have allowed Samsung to develop rapidly over the past four decades. The immense government support has allowed Samsung to develop high quality and affordable electronic products that have large demand globally. Furthermore, the South Korean government always consults Samsung before setting up regulations in the industry. On the other hand, due to the unfavorable government policies, some electronics companies in Europe and the US such as Apple outsourced their manufacturing facilities to China and Taiwan (Wei, 2010). Also, the production costs in the US are higher than in South Korea. Therefore, Samsung’s products are gaining a larger market share globally.
The trade policies have had both negative and positive effects in the industry. Due to the high quality and affordable goods from Asia, especially from South Korea, China, and Taiwan, most countries are developing protectionist policies so that they can develop their local industries. Some countries are imposing tariffs on imported electronic products. The Electronics Industry Association (EIA) in the USA had complained that some of the electronics products are sold at less than the ‘fair value’ in the market. Due to the high production costs in the US coupled with the low price televisions from Japan, there are complains of massive dumping of electronics goods in the US. Samsung has maintained relatively high prices of their products in South Korea. Also, the government implemented various import barriers to assist their electronics industry. The trade policies in South Korea have allowed them to cut prices globally while maintaining their local markets. Although there are stringent anti-dumping laws in the US, the demand for imported electronics goods still remains high. Also, the favorable government policies in China have also had a negative impact in the electronics industry. There are complaints of counterfeit goods that have flooded the market. Although there is a high demand for the counterfeit goods especially in the developing countries, the impact has been different in the developed economies. Furthermore, the lack of stringent regulations in the electronics industry in South Korea may have led to the development of dangerous products. There have been cases of exploding Samsung smartphones. The trade policies have also led to the collapse of some industries that are unable to compete ( Brouthers & Werner, 2010) . For instance, Sony Corporation shut down their PC and television segment after they were unable to compete in the industry.
The counterfeit goods have had adverse impacts on consumers. Some consumers have lost their lives while using the counterfeit goods. Also, consumers do not receive value for their money. Some retailers sell the counterfeit goods at the price of the high-quality goods. Also, it has ruined the reputation of the electronics industry in some countries, especially in China. On the other hand, the high quality and affordable goods, especially from South Korea, Taiwan, and China, have increased the rivalry in the industry ( Ottman, 2017) . The companies compete in terms of innovation and price strategy. Ultimately, consumers have a variety of high-quality goods that they can purchase. Furthermore, the competition has led to lower prices. The technological advance and innovation in the electronics industry have improved the user experience.
References
Banerjee, S. B. (2017). Corporate environmentalism and the greening of strategic marketing: Implications for marketing theory and practice: In Greener Marketing (pp. 16-40). Routledge.
Brouthers, L. E., & Werner, S. (2010). Are the Japanese good global competitors?. Columbia Journal of World Business , 25 (3), 5-12.
Ottman, J. (2017). The new rules of green marketing: Strategies, tools, and inspiration for sustainable branding : Routledge.
Shah, D., & Kanagal, N. B. (2002). Recommendation on competitive strategies for Samsung electronics for mobile handset business in the emerging 3G scenario.
Wei, Z. (2010, May). Analysis of relative structure on main influence factors of Supplier Involvement in New Product Development: In Networking and Digital Society (ICNDS), 2010 2nd International Conference on (Vol. 1, pp. 111-115). IEEE.
