Our presentation focuses on Samsung’s most profit earning product which is mobile phones. They are considered as luxuries due to an availability of close substitutes. Samsung can react swiftly towards price change as it has sufficient resources. Therefore, Samsung has elastic demand and supply curve. Samsung has an oligopoly market structure. There are many firms in the mobile device market but it is dominated by a small number of leading firms such as Nokia, Samsung and LG. These three leading firms together form a high concentration ratio in the market with 69.8% market share. Among these three firms, Nokia is the clear leader as it holds 37.8% of market share. In the market, mobile phones are homogenous in nature but they are differentiated in their designs and features. Besides that, the mobile phones market has a high degree of interdependence. The decision of any firm may affect the pricing and production decision of the other firms in the market. Samsung is inflexible in setting its products’ price and the price is rigid. The price for Samsung’s mobile phones is stuck in a particular point where they can only gain maximum profit. If Samsung were to increase its price, it will gain lesser revenue, likewise, a decrease in price will also leads to a decrease in revenue. In order to be number one in the market, Samsung will have to reduce their cost of production to maximize their profits. Samsung has been moving their factories to other countries besides Korea to get cheaper labor and resources. Also, Samsung has been looking for places to build more factories and achieve economies of scale. In an oligopolistic market, there are high barriers of entry. New firms may find it difficult to compete with others in the mobile phones market as other firms have more market power to produce more with lower cost. If Samsung can survive at the market price which normally align with the average total cost of the production, then it might defeat other competitors and be...