Samsung vs HTC Strategic Analysis Essay Example

while recording videos supported by the renowned Californian brand "Beats" for exceptional sound quality. This bundle of multimedia advantages is a unique strategy that provides value for customers that is rare in the market and difficult for competitors to imitate.

To maintain this sustainable competitive advantage, ETC must focus on the latest multimedia advancements, ensuring that they are both stylish and useful for young, active customers. The success of ETC is due to their alliance network, which is essential to team up with popular multimedia brands and gain recognition while differentiating their product from other smartphones. ETC has also gained success thanks to their oppositional stance to the phone, as demonstrated by their slogan: 'Quietly Brilliant'.

In response to criticism that Apple's marketing and exclusivity give an impression of arrogance, ETC has made every effort to radiate humility and adaptability.

The competitive advantage of ETC lies in their authenticity, as they do not copy design elements from Apple like Samsung. This makes them less vulnerable to patent infringements. Furthermore, they offer an extensive variety of devices to cater to a wide range of consumers. Their ETC strategy aligns with their concept of adapting to market changes due to strong relationships with vendors. Both ETC and Samsung have multiple sustainable competitive advantages, with Samsung having a stronger brand reputation. ETC's strengths include outstanding multimedia experience and strong partnerships. Looking to the future, uncertainties such as the increase in energy demand, income inequality, economic growth in emergent markets, and the patents war with Apple will shape the industry landscape. Currently, this war is beneficial for ETC but may have a negative impact on Samsung's future.

With the increase

of sensitive data sharing, hacking and piracy have become a major threat, along with concerns about online security and virus protection. Added to this, the rising demand for more features and performance due to dependence on technology and mobile devices creates more uncertainty in the industry. However, among all the uncertainties, the two most critical factors that can affect the future of Samsung and ETC are the economic environment around the world and the unavoidable energy crisis.

A direct relation exists between innovation and development and the economic environment of a country. During a world crisis, consumers have less purchasing power, which impacts both companies' income, decreasing their capacity of investment and thereby slowing down growth and improvement. In contrast, an economic boom results in customers having more income available, thus companies are much more likely to invest in innovation and technological advances directly related to expansion and development. This uncertainty undoubtedly affects Samsung and ETC in a substantial way.

The upcoming energy crisis is a significant event that will not only impact technology businesses but will also affect all industries. The crisis may take up to two decades to resolve gradually by shifting towards renewable energy and unconventional technologies. However, this transition is expected to be bumpy.

In order to overcome the effects of the crisis, a deep and continuous global research project is necessary. Samsung and ETC are concerned about the uncertainty surrounding the intensity and extent of this crisis, and will need to find alternative sources of survival. Four relevant scenarios, reflecting the future of both companies in 10 years' time, have emerged from these uncertainties. A graph that describes each scenario

is provided below. After analyzing all scenarios, it is believed that the "one device lifestyle" scenario is the most likely, as it is not expected that the energy crisis will reach a critical state that would significantly impact Samsung and ITCH'S industry in the next decade. As for the economic crisis, it is believed that we will shift towards a time of prosperity in 10 years' time, which will strongly impact the industrialized Western part of the world and influence other regions as well. To address these challenges, strategic plans have been developed for each company. Additionally, in our chosen scenario, we expect emerging economies such as China and Brazil to become top 5 country markets for smartphone shipments. (See appendix for references on recent developments.)The majority of South Africans are expected to own a smartphone by the end of 2015, highlighting the power of the Android operating system. With a global market share of 75%, Android already surpasses Apple's iOS. Android is even more dominant in China, with a market share of 90%. Mobile web access has already surpassed stationary PC use in China. Additionally, Chinese manufacturers control 5% of the global supply of rare-earth metals used in high-tech devices. A booming economy will increase global prosperity and enable the growth of the middle class. Mobile devices will continue to merge with other electronics, such as pocket projectors, blurring boundaries between business and personal life and fueling competition. The 6th Confederate is expected to bring progress in green technology, biotechnology, and health sectors. Apple's 10-year licensing agreement with ETC will benefit the company while creating adverse effects for Samsung and adding to the patent

wars between the two companies. Short product life cycles create high reinvestment costs, challenging companies competing against cheaper white box phone vendors. Samsung should maintain its strong position in Asia but expand its presence in western markets such as Europe and the USA.To improve their position in the market, ETC can make use of their unique resources and prioritize innovation and technology development to meet consumer demands. While competing with Samsung and other established companies in industrialized Western countries may prove difficult and result in lost market shares, ETC can target emerging markets such as China where the Android operating system is popular. ETC should also maintain their presence in industrialized countries by continuously introducing innovative new devices. With mobile devices at the center of the market, ETC should develop products that cater to consumers' changing needs by incorporating new features and functions. It is imperative that ETC maintain a strong social media presence and foster information sharing among users. Additionally, they should strive to improve performance and battery life of their devices and invest in new areas like healthcare to support disabled and elderly individuals. Samsung's adaptability keeps them close on Apple's heels, but ETC can also invest in more secure systems to protect sensitive data as privacy concerns continue to grow.Samsung should prioritize producing affordable mobile phones with fewer features for developing countries. Specifically, ETC should create user-friendly products that cater to the needs of emerging countries, positioned at a lower price point than in Western countries. Additionally, ETC needs to offer advanced tablets to appeal to the reporter BIB level market and develop an advantage in production by reducing dependence on Chinese

rare earth resources. By keeping material costs low, ETC can increase their profit margins and potentially gain a competitive edge by embracing green technology and creating energy-saving solutions with renewable energy sources. Middle and high-income consumers are likely to be interested in Samsung products, so the company should invest in marketing to increase brand loyalty and perception of brand value in order to maintain their current market position. The key challenge for Samsung in the years ahead will be sustaining their current success.Samsung faces pressure to justify their price premiums by consistently delivering superior quality, failure to do so risks losing customer loyalty. Their capabilities as a "fast follower" are important in responding quickly to shifting market needs, but to surpass Apple and become a market leader, they must generate innovative blue ocean strategies. Improving brand image and recognition in established countries and targeting new segments like the "Bottom of Pyramid" and business people can lead to increased profitability. Better communication of designs and multimedia developments is crucial for achieving a competitive edge. Ensuring scarce, immobile, and protected resources through constant patenting is also important for success. (Appendix 1)According to BRIO analyses, Samsung's competitive advantages can be categorized into two areas - product innovation and process innovation. While the design innovation of Samsung's smart/mobile phones is valuable, it is only a temporary advantage that is easily imitated by competitors. However, process innovation is a sustainable competitive advantage for Samsung as the company utilizes leading-edge technology to constantly innovate its processes, making it difficult for competitors to imitate. Additionally, Samsung's value-for-money positioning strategy helps meet customer needs by offering high-quality products at reasonable prices. Although this

strategy is not unique, as there are other companies with similar price and quality trade-offs, it is still a competitive parity for Samsung.Samsung takes pride in its reputation as a trustworthy brand that has been able to fulfill the needs of its customers. This intangible asset is a sustainable competitive advantage that is difficult to replicate. Samsung has effectively utilized this advantage by adapting to the fast-changing market, making it a valuable asset for the company. Moreover, Samsung's human capital is also a competitive advantage, although not rare because other companies also possess good selection and training programs. In contrast, ETC's product innovation (design) is only a temporary competitive advantage, as it can easily be replicated due to technological advances within the smartened industry.

ETC's sustainable competitive advantage lies in their strong partnerships with popular brands such as Google, Backbone, and Dropped. This network gives them an edge that competitors find difficult to imitate. In addition, ETC's value-for-money positioning ensures competitive parity within the industry even though it is a common strategy used by other brands like Samsung. Another sustainable competitive advantage for ETC is its focus on providing outstanding multimedia experiences through high-quality sound, camera functionality and display quality. These components are rare and hard to imitate for competitors, making it a trademark of the brand. Finally, ETC has an advantage in adaptability due to its wide product line, allowing it to successfully meet the evolving needs of consumers.

Through its well-supported vendor network, ETC is capable of quickly gathering consumer expectations, allowing them to maintain a leading position in the industry by adapting new features to different devices and satisfying the needs

of various consumer groups. One advantage of ETC's approach is developing original designs that avoid potential patent conflicts with Apple, a major player in the industry. In contrast, competitors who do have conflicts with Apple often struggle with a decrease in resources and productivity. Additionally, ETC's organizational structure, effective style of organizational learning, superior corporate culture, and innovative HER process all contribute to the company's unique configuration and success.