Unit 3 Micro: Samsung surges ahead in global smartphone sales

The global smartphone industry is an example of a contestable oligopoly .... in this article from BBC news there is loads here for A2 micro students to consider - economies of scale, pricing, the use of profits / producer surplus, the effects of globalisation, fast-growing and maturing markets, shift in power towards Samsung (who spend huge amounts on marketing). Product differentiation, pricing entry-level phones especially in emerging markets. Who pays for extra capacity that the mobil industry will need to create? Allocative, productive and dynamic efficiency issues all here. Is some of Samsung's competitive advantage due to the broader range of products - exploiting economies of scope?

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St Albans Girls' School, St Albans

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