Marketing and Samsung Essay Example

battery technology and seek patent protection for any breakthroughs in increasing battery lifespan. These measures will strengthen Samsung's brand preference and overcome challenges related to battery life. Furthermore, by increasing the number of operations and dealerships around the world, starting with major cities like London, Singapore, Sydney, Johannesburg, and Beijing, Samsung can increase brand awareness and enhance global before- and after-sales service. The tablet industry is experiencing rapid growth due to an expanding customer market that values portability, competitive pricing, and excellent functionality among devices developed by companies within this industry.The growth of the tablet industry is challenging traditional electronic products' market and expanding in response to increasing market demands. An analysis using Porter's five forces model (Appendix 1) shows that the industry is moderately attractive to potential entrants. This is because current market leaders hold a significant portion of the market share and there is growing competition in the tablet industry, which requires players to adopt differentiation strategies for competitive advantages and cost reduction (Appendix 2). Therefore, research and development are crucial for companies to survive and compete in this industry. According to technology research firm DC (2012), worldwide tablet shipment's growth rate increased by 60% in the second quarter of 2012.

Apple remains dominant as the market leader, holding over half of the market share (Tom, 2012). Other major players like Samsung, Sony, HP, Dell, and Blackberry contribute to the rivalry. However, Samsung, the second largest player, only accounts for less than 10% of tablet sales. Recent research indicates that worldwide shipments are projected to grow by over 60% in coming years (DC, 2012) due to increasing consumer demand and ongoing tablet

development efforts.

According to Porter's three generic strategies, the Samsung Galaxy Tab running on the Android system targets the broad market and seeks sustainable competitive advantages through differentiation in the tablet computer battle. In comparison to the market leader in the tablet industry, the Galaxy Tab not only has basic pad functions but also employs several newly-created features in response to customer needs and wants based on market research, such as the Samsung Reader Hug for e-books (BBC, 2010).

The smaller touchstones and lightweight design are evidently strengths of the Galaxy Tab when competing with other pads (Four, 2012). The S-Pen and Quad-core processor are impressive features of the Galaxy Note 10.1 that significantly differentiate it from other tablets. These innovative features aim to target markets in education, design, and business sectors. In addition, Samsung Electronics is known for its high reputation and positive customer satisfaction in terms of quality and technological superiority, which allows for differentiation (Samsung Electronics, 2011 b).

In the competitive environment, the Samsung Galaxy Tab aims to be a low-cost producer in order to increase the probability and return on investment (Samsung Electronics, 2010). Despite increasing labor costs in developing countries, manufacturers still find it attractive to transfer production abroad to lower capital and human costs (Business Spectator, 2012).

Samsung has adopted a unique strategy for its Galaxy Tab 2 7.0, targeting students with a lower price as a special edition (International Business Times, 2012). This demonstrates Samsung's focus on a specific market segment. While the Porter generic strategies suggest sticking to one approach, combining strategies can be more effective in practice and avoiding the "stuck-in-the-middle" scenario is possible. The patent war

between Apple Inc. and Samsung Electronics has raised awareness of intellectual property protection in the tablet industry (The Wall Street Journal, 2012). Samsung has been ordered to pay Apple $1 due to patent infringement which resulted in delays in releasing their new product (The New York Times, 2012). This situation could have negative effects on retail sales, customer relationships, and brand identity. In response to these circumstances, companies must compete by offering innovative products while safeguarding their intellectual property rights (International Business Times, 2012). Increasing concerns about intellectual property have influenced strategic decision-making and posed challenges for the industry as a whole. Core competencies are crucial for setting an organization apart from competitors.The distinctiveness of competencies is determined by factors such as their relevance to the organization's product markets, their contribution to the perceived value of the product, and their difficulty to imitate by competitors (Broodmare, 2005). Samsung Electronics, as a market challenger, has adopted a frontal attack strategy against Apple. This can be seen in the launch of their new Galaxy Note tablet which features unique elements like a stylus-type pen and split screen function aimed at setting it apart from Apple's competing product (The Sydney Morning Herald, AAA).

However, Samsung's distinctive skills cannot be considered core competences because they are based on surpassing Apple's strategy. This does not guarantee that Samsung is better than its competitors. Furthermore, the stylus-pen and split screen function can be easily replicated by competitors which limits the potential for maximizing market share of core products.

Time compression refers to an organization's ability to perform tasks more quickly than its competitors (Broodmare, 2005). This includes launching new products faster, making deliveries

quicker, and responding promptly to market trends. In this case study analysis, it is evident that Apple holds the market leader position while Samsung is positioned as a market challenger. For instance, Samsung released the Galaxy Tab 2 10 on August 22nd (Smith, 2012), whereas Apple introduced the iPhone 5 on September 21st - one month later (Hill, 2012).In 2004, Samsung implemented a CEO-design evaluation system to assess and improve product environmental quality (Samsung, 2012). This system focuses on resource efficiency, environmental hazardousness, and energy efficiency. By launching new products faster than Apple and responding to market trends swiftly, Samsung's time compression ability is recognized. Canter's New Wisdom emphasizes the process of continuous improvement in advancing and developing the company's products, services, or procedures for delivering higher value and better quality to customers. As an ethical manufacturer, Samsung values sustainability and has integrated "green" characteristics into its products since 2004. The implementation of an evaluation system focusing on manufacturing, recycling, and green partnerships supports this effort. The Galaxy Tablet aligns with this green policy through features like Scorings Gorilla Glass which provides anti-breakage properties while reducing carbon emissions during manufacturing. In comparison to the iPhone 5 release that generated excitement among Australians, Samsung surpasses their competitors by upgrading the display screen of the Galaxy S III with a thickness of 1.1 mm compared to the Apple Phone 5's thinner screen at 1.5 mm according to an industry expertAccording to the expert, SAMSUNG's screen has a better color gamut compared to Apple, displaying 100% of NETS color demonstration while Apple can only achieve 72%. This puts SAMSUNG ahead in terms of display capacity. The question now

is when SAMSUNG will introduce this new display screen technology to its tablet series. SAMSUNG CEO Mr. Swoon has also emphasized the importance of software development alongside hardware upgrades to maintain their competitive edge in advanced technology (Lee, 2012).

In terms of business relationships, Samsung runs a program called Samsung Enterprise Alliance Program aimed at promoting strategic alliances with other companies. Through this program, firms are encouraged to partner with Samsung to generate differentiated benefits for both parties. Successful partnerships include collaborations with Microsoft and other technological support services (Samsung Enterprise Mobility, 2012).

Microsoft and Samsung have joined forces in preparation for the Smartphone War and challenging Apple and Google in the smartphones and tablets market. As part of this alliance, Samsung will pay royalties for every smart-interfere device unit produced using Microsoft's operating system. Additionally, future products like the Series 5 and Series 7 slate PCs by Samsung will feature Microsoft's Windows 8 (Lee, 2012).Samsung has formed partnerships with multiple companies to enhance their products and services. By teaming up with Microsoft, Samsung is able to focus on hardware while Microsoft optimizes their software for compatibility. They have also partnered with Keepsakes Lab, a well-known anti-virus software developer, to ensure that their devices are protected by top-notch antivirus technology. This collaboration aims to improve privacy and security for consumers, safeguarding against potential hacking threats.

Additionally, Samsung has joined forces with Powerboat and Qualm alliance to incorporate wireless charging technology into their products. This emerging technology is relatively unknown but by partnering with Samsung, particularly in their latest release, the Galaxy S Ill, they hope to increase consumer awareness of it.

When analyzing Samsung's strategy using Canter's New Wisdom

Theory, it becomes clear that continuous improvement and building relationships are among their strengths. While they excel in time compression aspect, it is not enough to gain a competitive advantage. However, Samsung has yet to fully capitalize on their advanced technology as one of their core competencies.Samsung consistently integrates technology into their products, but often their competitors, such as Apple with the iPhone AS/Phone 5 and Samsung Galaxy S Ill, introduce it to the market. Unlike other industry players, Samsung forms strategic alliances with other companies for mutual benefit. In contrast, Apple takes a more conservative approach. Another argument is that while Samsung's strategy pushes them to outperform competitors, they lack the same level of creativity and innovation. This is evident in their failure to lead trends in the industry, like Slate PC's resembling the Transformer Pad Line of SASS. Day & Weenies argue that possessing key success factors (SF) within an industry is crucial for competitiveness. The tablet industry has identified superior marketing, sales, and service as one of these key factors. Manufacturers' success depends not only on product performance but also on complete customer satisfaction achieved through marketing, sales, and service functions working alongside IT function in shaping overall strategy for serving tablet consumers.According to surveys conducted in 2012 by Data consultancy, companies that were most successful in attracting tablet consumers rated cross-functional collaboration as a crucial factor for success. In contrast, companies with less success did not prioritize this aspect. Additionally, continuous improvement and innovation are vital for competitiveness in the tablet industry.

Investing in extensive research and development allows firms to achieve innovation and stand out from competitors through patents and proprietary

products (Broodmare, 2005). Therefore, it is important for tablet manufacturers to continue investing in research and development to stay competitive. Strategic alliances and relationships play a crucial role in the nascent tablet industry. More collaborations and networks in tablet research, development, production, and distribution can result in cost efficiencies and greater business opportunities (Commonly, 2011).

Effective cost control is essential considering the high costs of research and development (lips, 2012). Manufacturers must reduce fixed costs and minimize operational risks to survive in this industry – outsourcing can help achieve this goal (Broodmare, 2005). According to an IIS report (supply, 2012), a majority of tablets such as pad and Kindle fire are manufactured by outsourced manufacturers based in Asia like Hon.Ha from Taiwan.

[Original text has beenwhile retaining .]In 2011, outsourced manufacturers accounted for 87% of tablet production (Supply, 2012). However, in 2012, the percentage of outsourced tablet production dropped to 5%, while in-house production increased to 12.5%.

Samsung's personnel possess superior skills in engineering and technical areas, which gives them a competitive edge (Broodmare, 2005). These skills allow Samsung to quickly adapt to changes in the market. Additionally, Samsung's innovations in product design, manufacturing, and marketing contribute to their competitive advantages.

Specialized employees across various departments such as research and development, procurement, HER management, and marketing play a critical role in supporting Samsung's success. In fact, Samsung was recognized as the world's largest information-technology firm in 2011 (The Economist, 2011).

Samsung showcases its technology leadership through high-performance mobile technology and an extensive collection of registered technological patents (Samsung Electronics, 2011b). The expertise of designers, specialists,and technicians further enhances the performance and reliability of products.

These technological advancements enable Samsung to

not only add value for customers but also maintain a superior position within the competition. As stated by Broodmare (2005), superior resources are tangible elements that provide companies with an advantage over their competitors.Samsung is expanding its global authorized dealerships program and acquiring larger manufacturing facilities in various countries to meet the growing demand for tablets, increase distribution coverage, and achieve larger salesrooms. Samsung's strong information technology systems for customer service management, distribution, and marketing are also considered superior resources. Furthermore, the increased investment and partnerships through the Samsung Enterprise Alliance Program have resulted in competitive advantages in research and development, further supporting their innovative skills.

Assessing Samsung's positional advantage, it can be seen that the company has gained a dominant position in the tablet computer market due to its skilled workforce and resources. This allows them to design and manufacture high-performance Android-powered Samsung Galaxy Tab devices. The innovative features, product quality, convenience, and exceptional customer service of the Samsung Galaxy Tab set it apart from competitors and provide superior benefits to customers.

It should be noted that Samsung operates at lower relative costs as evidenced by Michael Porter's value chain analysis (see Appendix 3). These advantages allow the company to deliver superior value to customers who are willing to pay a premium price for Samsung tablets instead of opting for competitors (Broodmare, 2005).The value chain analysis emphasizes the significant impact of Samsung's activities on customer value and cost reduction achieved. This leads to superior performance outcomes, increased customer satisfaction, and greater profitability. The text is missing a table illustrating how Samsung has successfully achieved two of the four key success factors in the electric automotive industry

through alliances with Samsung Galaxy Tab and Toast's Campy vehicles for gathering data on fuel efficiency and driving styles using the BODY car diagnostics system (Samsung, 2012). This data enables Toyota Korea to provide fast and excellent maintenance services, resulting in increased customer satisfaction. Furthermore, Samsung continuously expands its global authorized dealership program, offering advantages such as product availability, efficient delivery of products and spare parts, and reliable after-sales service - all crucial factors in the tablet industry (Crypto, 2012). Additionally, Samsung invests a significant portion of its revenue into ongoing research and development, making it the world's largest information technology company with a vast collection of technological patents (Samsung, 2012).