Reference no: EM131326002

Samsung (smartphone manufacturer) Vs. Google Inc. (search engine) - economic and financial analysis

Objectives:

• Assess and compare the market types of Google Inc.(as a search engine) and Samsung
• Determine the various key elasticity indicators of these companies and the goods they produce
• Assess the market of each selected business to determine their competition, and any substitution or complement goods or services
• Determine the relative value of each company, its potential future growth, and make recommendations as to whether one is a better investment than the other.

Description:

Make recommendations for investing in one of Google Inc. and Samsung. Compare the two companies, and ultimately recommend one over the other.

Instructions:

1. conduct a research on Google Inc (as a search engine) and Samsung (as a smart phone manufacturer) in order to get information to address the following questions.

a) Short attractive Introduction

b) Background: give interesting facts and important reasons for choosing Samsung as a smartphone manufacturer and Google Inc. as a search engine to conduct the study on them.

c) overview about Samsung and Google Inc. then indicate that the study is focused on Samsung as a smartphone manufacturer and Google Inc. as a search engine

d) indicate the company status in the market

Economic analysis

e) What kind of market (Perfect Competition, Monopolistic Competition, Oligopoly or Monopoly) Google Inc. as a search engine belongs to?

f) What kind of market (Perfect Competition, Monopolistic Competition, Oligopoly or Monopoly) Samsung as a smartphone manufacturer belong to?

g) Major or closest competitors of Google search engine and Samsung smartphone, give some facts and reasons

h) Are there any close substitutes or complements to those products (Google search engine and Samsung smartphone-galaxy)?

i) Is the demand for google search engine growing? Explain why? (provide a diagram of the demand curve of google search engine and then analyse and comment on it and say whether the demand curve is shifting in which direction and the reasons behind that)

j) Is the demand for Samsung smartphone growing? Explain why?(provide a diagram of the demand curve of Samsung smartphone (galaxy) and then analyse and comment on it and say whether the demand curve is shifting in which direction and the reasons behind that)

k) What is the price elasticity of demand for Samsung smartphone products such as galaxy?Are these elastic or inelastic? Are the products luxuries or necessities?(provide a diagram showing the demand curve and analyze and comment on it)

l) What is the price elasticity of demand for Google Inc. search engine product?Are these elastic or inelastic? Are the products luxuries or necessities?(provide a diagram showing the demand curve and analyze and comment on it)

m) What is the Income Elasticity of demand for Samsung smartphone products such as galaxy? Which products have higher income elasticities?(provide a diagram showing the demand curve and analyze and comment on it)

n) What is the Income Elasticity of demand for Google Inc. search engine product? Which products have higher income elasticities?(provide a diagram showing the demand curve and analyze and comment on it)

o) Consider cross price elasticity of demand between the products of your chosen companies (which are Samsung smartphone manufacturer and google search engine) and competing products in the market. (provide a diagram showing the demand curve and analyze and comment on it)

p) Consider market potential for google search engine and Samsung smartphone amnufacturer.

Financial analysis

Analyze the financial position of Google Inc. (search engine) and Samsung smartphone manufacturer and compare between them: (use the values and charts )

1- Is google search engine profitable? Will it be able to sustain profitability? (Profit Maximization Strategy)

2- Is Samsung smartphone (galaxy) profitable? Will it be able to sustain profitability?Profit Maximization Strategy

3- Analyze the total revenue, profit, cost, Earning per share, marginal revenue, and other any other indicators that help to recommend which company is best to invest in.

4- How can Samsung and Google make their profit grow?

5- Any other relevant factors?

6- Compare all these (Samsung and google) and comment on which is better than the other and which company is best to invest in.

7- Google and Samsung Efficiency and Control of Cost Strategy

q) SWOT analysis for Google search engine and Samsung smartphone (include facts)

r) Can the labor force of Google Inc. related to the search engine be trained further to increase productivity and lower cost of production?

s) Can the labor force of Samsung smartphone manufacturer be trained further to increase productivity and lower cost of production?

t) Recommendation and which company is better to invest in.

u) What other issues with regards to the social, political, labour or environmental practices of these two companies might you include that could impact your decision?

v) Conclusion

2. Remember that your ultimate goal is two-fold:

o to provide the best evidence to support the choice of one company over the other as a place to invest; and
o to do so in the most compelling, informative and creative way you can.