Samsung: Transformation from Follower to Innovator

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Field course Strategy & Innovation Samsung: Transformation from follower to innovator Final Paper Name: Frank Molema Studentno.: s1656287 Supervisor: Dr. H. Snijders Table of Contents 1. Introduction 3 2. Industry analysis 4 2.1 General environment 4 2.2 Market Factors 7 2.3 Porter’s Five Forces 11 2.4 Conclusion Industry Analysis 13 3. Company Analysis 14 3.1 Business Model 14 3.2 Company Strategy 15 3.3 Competitive advantage 16 3.4 Vertical Integration 17 3.5 Conclusion company analysis 18 4. Conclusion micro- and macroanalysis 19 5. References 21 6. Appendix 22 1. Introduction In the…show more content…
Economy The worldwide economy has been growing rapidly again since 2002, after the recession in the US economy which had a huge impact on the global economy. People have more money to spend on luxury items. Emergent markets in China and the rest of Asia are also great opportunities for the manufacturers of high-end consumer electronics. The economy here is growing rapidly every year and the culture is becoming more “westernized”. This new direction the economy is moving in, is resulting in more capitalistic view of these countries. Therefore there are more potential buyers for the mobile phone manufacturers, since the mobile phone is associated with a status symbol in these emerging countries as well. 2.1.3. Social culture An important development in social culture is the connection between an expensive mobile phone and status. Many people regard their mobile phone as some sort of status symbol (comScore, 2007), especially in the age group of 14-25. This can affect sales hugely and many manufacturers jump in on this trend. There is LG who has formed a cooperation with Prada and Samsung has teamed up with Armani. The general idea behind these cooperation’s is the association of a luxury fashion brand with their mobile phone brand. This also increases the status and sense of luxury for the consumer. There are also phones for the extremely rich made by Vertu, which cost over 20.000 dollars and are unique in the world and

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