Friday, October 03, 2008

samsung: market expansion

Will the 3-pronged plan work?

Nine million potential customers every month – a figure hard to ignore, even if you’re an ‘also-ran’ in the mobile handset market, and a fact hard to overlook even if you’re Samsung (the current no.3, way behind the market leader Nokia). But wait! Just like any other ‘wanna-be-a-winner’, Samsung too has rolled out a three-pronged strategy to establish its dominance over the growing Indian handset market.

Besides launching five handsets (and signing up actor Aamir Khan), increasing its handset unit’s manpower count by 50%, it is also heavily into revamping of its distribution channels thereby increasing its reach within the Indian market to 85% (from the current 55%). In view of the same, two regional distributors – SSK (Western region) and Link (Eastern region) were also added to its existing North & South network. It has also cracked exclusive contracts with 40 Nokia distributors, with an aim to create a dent in the market leader’s strong position. Shushmul Maheshwari, CEO, RNCOS also thumps for the positive as, “Samsung’s launches will benefit from its enhanced distributor network, and the distributor agreements will prove advantageous.”....Continue

Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

Read also :-