Answer to Question #231676 in Management for Akshay Patel

Question

How did samsung company entered into indian market?

Answer 1

Samsung in India

Samsung entered the Indian market in 1995 and now operates the largest mobile manufacturing facility in the world in Noida. Tamil Nadu too has a factory. Samsung India has become the country's first smartphone and consumer Electronics Company to produce $10 billion in revenue, according to the most recent regulatory filings with the Registrar of Companies (RoC). The achievement comes as Samsung prepares to mark its 25th anniversary in India (Choe & Lee, 2008). According to RoC data, the South Korean technical juggernaut, which is also the world's largest smartphone producer, generated Rs 73,086 crore in revenue in 2018-19, owing to the company's outstanding performance in the handset and consumer durables segments. Samsung India's revenue climbed by 20% in FY19, more than twice the 10% growth rate in FY18. Samsung India's revenue in FY18 was Rs 61,066 crore, according to a regulatory filing. Samsung India's smartphone division made a sizable contribution to overall revenue, accounting for Rs 43,087 crore, or over 60% of total sales (Choe & Lee, 2008).

Samsung's success is a result of the actions of these two firms, as well as the inaction of their competitors. Due to the costly costs associated with technologically better Japanese manufacturers like as Sony and Panasonic, as well as their geographic location, they were previously inaccessible to the majority of the Indian market. On the other hand, low-cost Indian firms promoted older-generation items and did not invest enough in research and development since they could not immediately recoup their expenditures. Samsung emphasized the aesthetic and technological components of its higher-priced products in order to grow its wealthy clientele and establish a premium brand image (Choe & Lee, 2008).

Reference

Choe, S., & Lee, J. (2008). Samsung and LG in the Indian Market. Yonsei Business Review, 54(1), 43-64.