Chapter 11 and 12

Chapter 11 and 12

Marketing in an Economic Downturn

Marketing during economic downturns is not an easy task at all. The companies have to be smart and efficient with the usage of the resources as they are limited in such circumstances. Therefore, it is important for the companies to make sure that they are able to do their business in the best manner. Marketing during this situation requires a lot of strategic thinking and strategic decision making. The companies that are able to do so are the ones that are smart and stay in the market when the chances of survival are next to impossible.

The best strategy that was adopted in the recent economic downturn was the reduction in the prices of the products that were being offered. Carrefour was one of the companies that came up with a strategy that surprised the other companies in the industry. It decided to reduce the prices of the products that it was offering. In this manner the company made sure that the sales are unaffected and people are attracted to it instead of other companies. This strategy proved to be effective for the company and helped it to survive in times of economic downturn.

Samsung

Samsung's Greatest Competitive Strengths

As compared to the other companies in the industry, the diversified range of products is one of the major strengths of the company. Cell phones produced by Samsung are their revenue generating products. They have outclassed their competitors with the technology they have incorporated in their products. Another competitive strength of the company is the strategies that the company has formulated during the economic downturns. The company's smart planning has helped it to remain above its competitors during hard times. The Research and Development of the company is also a great competitive strength. The company's investment in innovation helped it to come up with products that its rivals were unable to produce. Aggressive brand building has helped the company even more to understand the market and to study the dynamic of doing business in the industry. During the recent economic downturn, the company's decision to cut down the profit margins, inventories and production proved to be very beneficial for the company and it was able to outperform its competitors.

Samsung's Goal of 2020

Keeping in mind, the goal that the company has established of hitting $400 billion sales by 2020, it can be said that the goal is ...