Samsung, a multinational south Korean Company founded by Lee Byung-Chul, headquartered in Samsung Town, Seoul. It’s considered to be the largest manufacturer of devices. It has almost 46% of the market share in google android running devices. Basically in 1983, Samsung had started its mobile telecommunication business with the hope that it would be the one of the largest company. In 2007 , it was reported that Samsung covered over 40% market share and now had become the second largest mobile selling company. Samsung has recently planned a new strategy in its business line up, in order keep this peace in the market and making its business more powerful.
Samsung Refurbish Plan:
According to this strategy ,Samsung will officially launch the refurbished model of its premium versions of smartphone at lowest price. These smartphone are basically refurbished from the company. This will be done after the generating the handsome revenue from its brand new premium products in the market. After that Samsung will launch its refurbished version to the market. In order to capture the market of its rivals , Samsung has made this decision. These phones will probably capture the market where the average sale price of smartphone is $100. In this way company will easily enhance its business revenue all over the world. The phones will be launched in next year 2017. The quantity of the phones didn’t mention yet. However, the phone will be refurbished and of very low price than that of original.
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What actually Refurbished Means:
Refurbished phones are basically the phone that are on contract with some company or individual. Contract is usually signed up for one year. When the contract expires the company is responsible to take the phone back. These phones were sent back to the market at low price as a refurbished version. These version usually have the change of case and batteries. These products are normally tested for functionality and defects by the company before selling.This is the only difference between used and refurbished products, that the refurbished are defect free. These products usually includes the products that are unused by the customers as well. But both the used and unused are tested for the functionality and defects. After repairing they are sent to the market for sale.
Strategy with Rivals:
The one of the top competitor of Samsung , Apple Inc. Iphone has the resale value of 69 percent after one year from launch. But according to the BNP Paribas, Samsung sells for 51 percent of the original price after one year from the launch in the U.S market.
These refurbished phone will capture the market of low selling smart phones such as India , Pakistan. In these countries, the high selling products like $800 are beyond the range of buyers. The people of these areas can easily get benefit from the latest technology at very affordable price.
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Hope this strategy of Samsung would work better. Let’s see what will happened in the next year.