COMMERCE 4SA3 Lecture Notes - Lecture 3: North American Free Trade Agreement, Fixed Cost
24 Jan 2019
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Mr. chung yong (president of sch) is meeting with marketing director to discuss marketing strategy for the china market in regards to flagship product colour tv. The main decisions are about market segment (low-end vs. high-end) and whether to import or produce locally. Demand for colour tv"s in china was increasing from 1990-1995 (82%) and from 1995- In 1995, major chinese colour tv manufacturers are producing between 18 and 21 . Exhibit 4 samsung"s 1994 production produced in 14 (26%) Main product was the 20 tv (34%) and majority is produced in korea. 56% of tv"s are produced in korea, followed by mexico (19%) Should just focus on producing the most profitable and the ones in most demand. Interesting they don"t produce an 18 tv since most manufactures in china produce this size. Exhibit 5 market share and price position in u. s. Thomson and north america philips have about 40% of market share.
