Samsung Galaxy Note7 Case Study

* The fast shift of the mobile device industry and the fierce competition (especially from Samsung) may force a company out of business in a few years.

There are many competing brands of smart phones and Samsung has reported a decline of profits in 2014. Information from GSM arena shows than Samsung released 54 new phone models in 2014 , compared with 24 by HTC , 11 Motorola and 2 by Apple, leading to increased production costs and lack focus on a specific customer segments thereby losing some of its competitive advantage (GSM Arena , 2015).The lack of popularity of its own OS (Tizen ) and dependence on Google’s Android platform makes it vulnerable on google to develop an “ecosystem”. There are component integration issues as well as loss revenue from potential App sales (Strategic Mangement insight , 2015). Negative publicity from litigation due to patents are likely to continue as technology patents are vague and Samsung with is large portfolio is likely to infringe on some of the patents (Tibken, 2014).

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)).

Over the mid-year, Apple was offering a little more than half of the worldwide premium cell phones, and Samsung was offering just shy of 25%. By December 2016, those figures had developed to 70% and 17%, separately” (Richardson, 2017).

This study seeks to examine the market structure and strategy of Samsung Company analyzing its micro-environmental level as well as SWOT analysis. In this regard, it is worth pointing out that Samsung is a well-established company. It manufactures different electronics products including home appliances and smartphones. It has been on the market since 1969. Its electronics division has 169 subsidiaries and affiliates, which are divided into three to include Consumer Electronics, Information Technology & Mobile Communications, and Device Solutions division (Samsung 2016, 2). In this precept, consumer Electronics focuses on advanced technology, exclusive design and significant offers for presenting new products such as TV, Refrigerator, Air Conditioner, and Medical equipment among other products. Information Technology & Mobile Communications division, on the other hand, produces mobile handset and customer friendly communication products. The Device Solutions in the same dictum division focuses on display pane and semiconductor products. The company has grown globally, and establishes outlets in different parts of the world, including the U.K.

Android from the very beginning have used to give the same features as IPhone at a low price. The ownership of IPhone has increased but so is the ownership of android phones. If only the price of the IPhones were a little low it could have made a better profit. They would have also made better sales in America. Samsung faced a law suit filed by apple against them that they have been copying the features of IPhone. The android phones of Samsung used the exact same features provided by the IPhones over the years.

The challenges faced by Samsung was of suitably shifting their product line, evaluating levels and distribution strategy, they also wanted to reposition their brand as a leading brand for the Canadian market.

Introduction:   With  the  introduction  of  new  Chinese  competitors  in  the  DRAM  market  it  is  necessary  for  Samung  to  access  their  strategy  for  the  future.  Looking  at  past  trends  in  the  DRAM  market,  current  market  situation,  and projections  for the Flash market, the  best option for  Samsung  is  to focus their efforts  on  growing  the  Flash  technology,  while  maintaining  their  DRAM  output.  This  is  the best course of action  because  Samsung’s  customer  loyalty  will  carry  their  market  share  in   the  DRAM  market,  while  they  are  focusing on establishing this type of dominance in the Flash market.

In 2014 both Apple and Samsung sold a combined total of about 108.2 million units of their products! Samsung sold about 71 million units while on the other hand Apple sold 94.75 million units. For the past few years, the competing and comparison between Apple and Samsung was at its maximum. Fights started between people to prove an idea about which company is the best but they did not know that they were only comparing their smartphone. That is not the only thing a person should concentrate at while comparing two of the biggest multinationals in the world. People should look at the sales of all of the company’s products, their profits and losses, the history of the company, and the reviews of the people about their

A total of 96.8 percent of phones out in the word are either iphones or androids according to the 2015 recorded phone sales. Since 2010 apple and and android has been fighting and competing with each other trying to achieve that top of the smartphone market. It all started when Samsung released their bread new Galaxy S. This phone was identical to the iphone, having similar looks and similar icons. Many people consider this new Androids product better at this moment because android has been out for a longer time, and still provide mind blowing devices like this one. This situation made apple very furious because this new android device was a replica of their iphone. The market prices went crazy and people started favoring androids because how they looked and acted just like an iphone and it was and a completely different price range. There forward androids started selling more than their own iphone. This made apple step up their game in production and started listen to people 's comments. This is when the real fight begins. This is when people started seeing that apple in general is better than android offering more to the people and offering what they asked for.

Smartphone market is fast-moving and very high competitive due to intense competition between two big smartphone producers, Apple and Samsung. At the beginning, Apple dominated this market solely by introducing a new innovative type of smartphone by Steve Jobs that has revolutionized people lifestyle and mobile industry. A few years after launching iPhone, a new fast following competitor, Samsung came into this market, and their sales have outperformed Apple from the year 2011 (According to Chart A1 in Appendix). In term of developing their product, Samsung has created its products by following Apple’s technology since the beginning of producing its smartphone, therefore there are many patent lawsuits between them. Since Steve Job passed away, Apple has continued to develop its core competence, which is an innovation of new type of smartphone that could help them to take back their market share from its rival, Samsung. Nonetheless, the competition between Apple and Samsung will still continue intensively in the future.

plan. It is a plan which leads Samsung to be the top brand in the

Because of the extremely intricate and sophisticated nature of manufacturing semiconductors, a competitor should expect high initial capital requirements to build facilities needed for production. Cost to build a new semiconductor fab has gone up from $200 million in 1985 to $3 Billion in 2004. Incumbent companies have capabilities to design newer generations of semiconductors with greater amounts of memory and processing abilities that make older generations obsolete. Older generations tend to drop half their amount in price one year after a new model is reduced (exhibit 6). The United States

Apple and Samsung, actually, considered as pioneers in technological industry. Every company has chosen different business strategies and models within the marketplace. Apple releases few but highly anticipated high-end products while Samsung inundates the market with a wide variety of products. In the beginning, Apple was very careful about its mobile and tablet releases by originally allowing for long development cycles that grow anticipation and showcased new innovations with each new release under Steve Jobs. Steve Jobs, one of the original founders and innovation of Apple Inc, used non-cooperative strategy which means he did not want to share the company’s software with any other companies. He wanted total exclusion of Apple’s software and hardware products. In this way, he gave his companies a competitive advantage because the focus is to satisfy the customer need that no other competition can satisfy which allows the company to have higher prices for their products.

A lot of other competitors do not deliver what Samsung do but this a great opportunity for Samsung to capture the market before other put their product in the market. Although Samsung trying hard to deliver innovative products but some of them are very expensive and too specific that it is not affordable by the general public, therefore it is question to make the innovative products in a reasonable and affordable price.