The completion policy is framed by the government to promote competition in the market. This will enhance the customer satisfaction. The aim of the competition policy is to make available increased choices to consumers, promoting efficiency by technological innovation and effective price competition in the market (Voigt).
The regulatory mechanism is employed to ensure the business activities do not have indirect negative impact on other resources. One of the examples of regulatory mechanism employed by the government is introduction of Clean Development Mechanism (CDM) to ensure that the businesses activities do not impact the environment. Similarly the Australian government has introduced Carbon Tax (BERR, 2008).
The competition policy has significant impact on Samsung. Certainly it is beneficial in improving the customer satisfaction as it reduces the price due to increased competition and at the same time the cost related to development of the product has increased as quality has to be improved or sustained and at the same time other cost factors have also increased. Certainly the competition also leads to higher productivity.
Considering the regulatory mechanism, it can be said that regulation that is framed can have more of negative impact. However studies have shown that the regulatory mechanism bringing in product market reforms are correlated positively with productivity growth in terms of reducing the administrative cost while negatively impacting the growth with respect to technological changes. Samsung has been benefitted as a result of regulatory reforms as the technological changes have been supported. The study conducted by Loayza et al (2005), highlights that regulatory mechanism has been negatively associated with growth.