Samsung’s New Challenge: Rising Component Costs

Prior to beginning work on this assignment, read The Wall Street Journal article Samsung’s New Challenge:
Rising Component Costs, and the Business Insider article Samsung Introduced 10 Times as Many Phones as
Apple Last Year, but Its Mobile Division Made Half as Much Revenue (Links to an external site.).
In a three- to four-page paper (not including the title and reference pages) assess how Samsung’s
technological smartphone innovation accounts for the company’s sales growth of mobile devices worldwide.
In your paper, determine whether Samsung could benefit by implementing a global product line-up strategy to
pursue profitability. To make the determination go to Samsung’s.com official website and locate the “Investor
Relations” link to retrieve Samsung’s financial statements. Utilize the SEC filings and annual reports to
summarize Samsung’s principal goods and services, market share, geographic locations where it operates,
and major competitors.
Samsung is a leading smartphone vendor worldwide. In 2017, Samsung’s market share of the global
smartphone market was at around 21.6% with Apple as its closest competitor in the market. As the world’s
biggest smartphone maker, Samsung tries to keep profits up in its mainstay mobile phone business, but the
rising costs of the components that go into its devices proves to be a challenge.
In your paper,
• Assess whether Samsung could benefit by using Activity Based Costing (ABC). Your evaluation should
include
o factor(s) that influenced your decision,
o the ramifications of implementing ABC in the Global smartphone market, and
o how you would structure the distribution of costs using ABC for Samsung.
• Assess whether Samsung could benefit by using a standard cost system. Your evaluation should include
o the factor(s) that influenced your decision,
o the ramifications of costs, quantity, and variances, and
o the ramifications of using standard costs in the global smartphone market.
• Explain how Samsung could benefit by product pricing in terms of cost-plus concepts. This explanation
should include
o Samsung’s future plans, such as, expansion, consolidation, and downsizing, and
o how costs concepts could be used in the decision making.
The Samsung’s New Challenge: Rising Component Costs Final Paper
Use the Attached APA template
Must add an APA heading (Level 1 or Level 2) for each one of the topics discussed in the research paper as
shown:
• Introduction (APA Level 1)
• Samsung’s Principle Goods and Services (APA Level 1)
• Global Market Share (APA Level 1)
• Geographic Locations (APA Level 1)
• Major Competitors (APA Level 1)
• Activity Based Costing (ABC) (APA Level 1)
• Production Costs of Cellphones (APA Level 2)
• Samsung’s New Challenge: Cellphones Rising Component Costs (APA Level 2)
• Standard Cost System (APA Level 1)
• Cost-Plus Concepts (APA Level 1)
• Samsung’s Future Plans (APA Level 1)