Abstract

On September 9, 2014, Samsung Electronics announced the launch of the Samsung Galaxy S5 Mini and stated that the model was to be retailed exclusively through flipkart.com, India’s leading online retailer. Retailing experts expected the Galaxy S5 Mini’s launch announcement to further hurt Samsung Electronics’ relationship with brick and mortar retailers who were not happy with the company’s policy of selling through e-tailers. This was followed by another announcement by Samsung on September 18, 2014, in which the company, due to mounting pressure from brick-and-mortar retailers, conveyed its decision to extend exclusivity on selling rights of 48 models, including its much-awaited Galaxy Alpha and Note 4, to offline retailers. This move was also criticized by experts who predicted e-tailing to be the future of retailing. This case traces the predicament of Samsung Electronics for selling its products using multiple channels.

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