Assignment 5

Substitute Products

In Rupees
Lenovo Tab 4 Samsung Galaxy Tab A
PRICE 12,490/- 12,000/-
COST PRICE 5,551/- 6,102/-
PROFIT 6,939/- 5,898/-

We can see that the pricing range of both the is really close.
For Lenovo Tab 4, the cost price is Rs.5,551 which is lesser than cost price of
Samsung Tab 4 (Rs.6,102/-) whereas, the price of Lenovo Tab 4 is RS.12,490
which is higher than Samsung Tab A (Rs.12,000/-). This indicates that Lenovo
Tab 4 is making more profit than Samsung Tab A.

Samsung mobiles have restrictions from Korean government on making all the
phones outside the home country that is South Korea. Samsung manufactures
in Korea which is expensive, Whereas Lenovo a Chinese company product does
not have restriction and manufacturing their products in home country makes
it cost reduction in manufacturing.