On the eve of Samsung Electronics' annual anniversary ceremony the Vice Chairman spoke to the gathering in quite a philosophical and practical manner. According to him, "smartphones, TVs, and other key IT products are entering a slow growth phase". It speaks of his vision and far sight to be prepared for the future beforehand. The other competitors are also in action by introducing new products and adopting new technologies. The Vice Chairman very wisely accepted the fact and said, "if we resist changes, then we won't survive." They cannot live alone in this world of competition and have to move with the tide.
To meet the change, may be the Samsung Electronics changes its management and business policies. According to the analysts' upcoming Galaxy S7 may carry the price tag by 10% less. Some time back the Samsung Electronics made the same move in case of Galaxy S6 and S6 edge by reducing the price by around 10%. It worked well and this is the best solution to meet the challenge from the Chinese smartphone producers. The Samsung Electronics expects to gain good results from this move.
Samsung Electronics’ last quarter ended well financially because of its good business strategies and now may be preparing for the hard business conditions ahead. It has to face market saturation and the "innovator's dilemma" by its core technologies at affordable prices.