1. Identify and discuss the core marketing concepts that Samsung has adopted to shift its competitive edge. ✓ Need, Wants, and Demands Samsung always try to develop products that fit their customers’ lifestyle by studying their tastes. Samsung focus finding out what’s likely to sell before consumers even know they want it. ✓ Target Market, Positioning, and Segmentation Samsung focus on design, as they want to be the Marcedes of home electronics. Samsung concentrate less on cost saving and more on coming up with unique products. ✓ Offering and Brands Electronics, Good Design, Unique, Affordable Price ✓ Value and Satisfaction Samsung is very committed to research as they listen to the feedback …show more content…
Can Samsung realistically expect to compete with Sony? YES. Let’s look at all the achievements Samsung got: ✓ This year, Samsung won five citations in the Industrial Design Excellence Award (IDEA) – making it the first Asian company to win more prizes than any European or American rival. Since 2000, it has won 19 IDEA awards. ✓ Since 2000, Samsung has earned a total of 100 citations at top design contests in the US, Europe, and Asia. ✓ Brokerage Hyundai Securities expects Samsung to earn $10.3 billion on sales of $52.8 billion this year, up from profits of $5.2 billion and $39.8 billion in revenues last year. ✓ It has sold more than 10 million SGHE700s – the first clamshell phone with a hidden antenna – racking up some $1.2 billion in profits since its debut 14 months ago. ✓ It’s the first Asian company outside of Japan to use design to vault to the first tier of global companies. Meanwhile, let’s look at what happened to Sony: ✓ Sony has been losing some if its edge in design – according to Makoto Kogure, head of the Japanese giant’s TV division. ✓ In January, Samsung was No. 3 with just 12.1% of LCD TV market share. In the last week of May, Samsung inched ahead of Sony to
Samsung served as the manufacturing industry and international company analyzed. Samsung has been in business for over 70 years and manufactures products for diverse markets, including: digital media, high -tech electronics, home appliances, information technology and telecommunication. Samsung's motto is to "inspire the world and create the future" by leveraging three key strengths: new technology, innovative products and creative solutions.
Samsung is the 7th most valuable brand in the world fuelled by its success in the smartphone and TV industry (Interbrand, 2014) (Forbes, 2015). Its product innovation and design capability has allowed it to win 11 consecutive awards at the consumer electronics show (Samsung, 2014) and has strong commitment to producing ecologically friendly products (Han, 2010).
1. Does Samsung have a competitive advantage? If so, how are they creating added-value compared to industry competitors? Make sure to quantify your claims. (In answering this question, you will find helpful information in exhibits 6-7k (but not only there)).
In the modern world of technology, many different companies are attempting to secure their own ground in a particular market. Many companies work in many tech fields & some company focus on software, some on mobile phones, others on television but one of the most recognizable names in the technology field is that of Samsung.
For any business to successfully add value they either do so through lower costs or superior benefits to the consumer by offering product differentiation (Singh 2012). Samsung was a late starter into the smart phone industry, while, this has not prevented them from successfully positioning their product at the forefront against those offered by their competition such as Apple. Gary Armstrong (2011) defines a product’s position as “the complex set of perceptions, impressions and feelings that consumers
By the end of 2012, Samsung electronics become the largest producer of televisions and mobile phone. In order to achieve the success and the dramatic rise in consumer electronics sector, the company initiated new methods to innovate and create high quality products .
Today Samsung has evolved into a group of companies unmatched by others in its range of industries and performance. It is now globally focused and responsive to the needs of each market, and more committed than ever to true innovation. The group’s three core business sectors are electronics, finance and trade and services.
Samsung set its strategy to expand new markets in order to turn into an innovative brand.
Samsung is a fast follower company. Samsung is a company that does not hold back and because of this it has gotten them in heat with Apple because they were copying their designs. So, Apple sued Samsung and Samsung lost this high-profile case because it was proven that the company was taking Apple’s designs and making it their own. after this They would listen to what the consumers were asking for and seeing what their
Company Background: Samsung is a South Korean multinational company those starting its business as a small trading company and right now becoming world largest corporation. The company deals with its business in several sectors such as advance technology, finance, petrochemical, semiconductors, plant construction, skyscraper, medicine, fashion, hotels, chemical and others. The company was established in 1969 in Suwon, South Korea and known globally for its electronic products (Kelly, 2011). The company is manufacturing several latest technologies, electronic appliances such as mobile phones, tablets, laptops, TVs, refrigerators, air conditioners, washers and other products. The company runs its operations and sales its products in 61 countries with approx 160,000 employees in all over the world (SAMSUNG, 2014). Moreover, the company acquired the position of the world biggest IT maker in 2009 by beating the Hewlett-Packard (HP) previous leader. Its sales revenue in the segment of LCD and LED is the highest in the world. Furthermore, Samsung also becomes world leader in the segment of tablets, mobile phones and gadgets.
plan. It is a plan which leads Samsung to be the top brand in the
Over the years between 2013 and 2011 Samsung has witnessed a rise in its sales. The sale has risen by 39 % in the period with mobile devices accounting for more than 80% of the total sales. Interbrand (2014) states “the brand strength measures the ability of the brand to create loyalty and therefore sustainable demand and profit into the future”. The Samsung brand has b grown over the years to number 8 in Interbrand in 2013 and second in Brand Finance ranking in 2013.The reasons cited for this increase in sales is the ability of Samsung to produce innovative products which appeal to a wide range of consumers. Samsung is building from the foundation in mobile devices laid down by Apple to come up with innovative product that even have features that are not found in iphones or ipads(CNN, 2013). This resulted to a dramatic year-in-year-out increase in Samsung sales with her total revenue exceeding that of Apple in all the three year under study.
Competitive advantages are conditions that permit an organization or nation to deliver a decent or administration at a lower cost or in a more alluring manner for clients. These conditions permit the gainful element to produce a bigger number of offers or unrivaled edges than its opposition. Competitive advantages are ascribed to an assortment of components, including cost structure, mark, nature of item offerings, dispersion and system, licensed innovation and customer support. Samsung had settled on the choice to receive design as a wellspring of competitive advantage in the 1990s. Prior, the company 's items had been unsatisfying and undifferentiated. In the mid1990s, the Group administrator, Kun-Hee Lee, started Samsung 's change from a low-end OEM into a world-class gadgets organization. Honing the company 's design aptitudes was a critical part of the activity. Be that as it may, this required significant changes in culture, procedures, and frameworks inside the organization. Samsung understood that competitive advantage can be accomplished through the design innovation. Samsung 's voyage toward design greatness began in 1993. That year, Lee supposedly went by a gadgets store in Los Angeles, USA. He saw, sadly, that the Samsung items in plain view looked ugly, while the results of Sony and some different organizations looked a great deal all the more engaging. He discovered too that the business staff at the store were themselves overlooking the Samsung
In Table 1 we can see that Samsung Electronics in the first place in the world by their revenue, employees and market cap. As a whole electronics producer company, Samsung is really is the largest company in the world, but in some cases of technology Samsung loses Apple in a competition. For example, in the mobile telephone market, they are not in the first place for their new innovative products. Exactly Samsung and Apple are really successful in the market compared with small firms. But as I said above Samsung loses the position for mobile telephone sales. “Samsung Electronics Co Ltd (005930.KS) is losing smartphone ground not only to cheaper Chinese rivals, but also at the high end to Apple Inc. (AAPL.O), a survey showed, in an ominous sign for the South Korean giant as Apple readies to launch its next-generation iPhone 6.” (Reuters, 2014)
Samsung is one of the world’s premium electronics manufactures. The estimated value of Samsung brand had risen from US$6.37 billion in 2001 to US$10.85 billion in 2003. A major factor behind this impressive growth had been Samsung’s effort to redefine itself as a vendor of cutting-edge, “gee-whiz” consumer technology. Samsung believed that repositioning the brand is a vital to the company’s future success.