Rising Component Costs

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.

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Rising Component Costs
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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
    • factor(s) that influenced your decision,
    • the ramifications of implementing ABC in the Global smartphone market, and
    • 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
    • the factor(s) that influenced your decision,
    • the ramifications of costs, quantity, and variances, and
    • 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
    • Samsung’s future plans, such as, expansion, consolidation, and downsizing, and
    • how costs concepts could be used in the decision making.

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