Analyzing Market Problem

Team Tequila Mockingbird

1. What was the critical activity in the process of Samsung’s transformation into a world-beating developer of new cell phone handset designs and other product line designs?

Samsung’s transformation in becoming a world-beating developer was due to two main critical

components, first their design development as well as innovation. Samsung gathered a group of young individuals and sent them to visit various parts of the world, from exploring the array of architecture designs of different countries to a vast collection of art galleries around the world. This experience assisted the young individual’s inspiration and creative processes, leading to top of the line designs and innovating a simple to use cellular device. Making Samsung one of the leaders in its market.

2. Provide the evidence from the case above, giving examples of the tree crucial competitive advantages a firm must have according to the dynamic theory of competition presented in Module

Companies need to be totally dynamic and simple with their products to shine in the market, we have seen that so far with the case of Samsung. One of the competitive advantages that Samsung holds is its speed. A product can die in the market simply because it was not fast enough to reach the people, and simple enough to utilize. This makes Samsung more competitive due to its faster implementation. Another aspect that makes it stand out from its competitors is the fact the Samsung focuses on self-improvement. Samsung changes its product lines and has also lowered its average product development time from an average of 14 months to 5 months. The third and most crucial of its advantages is its market analysis skills, Samsung has rebranded itself to by creating a product that gives what the customers are looking for on a simple to use platform. These are crucial advantages in staying on top in its market.

3. Yesterday’ best practice in product development is presented in the module. Where is it criticized in the case?

The case mentions the way Samsung approaches product development in a modern and more effective way. Meanwhile, other companies are still lagging using the same approach they have used for many years leaving them behind in the market. The case shows the example of Samsung vs Motorola. Samsung, using a modern approach, cut its product development time by more than 50%. Therefore, Samsung can have two development cycles while Motorola only has one. Companies, like Samsung, that have been able to adapt in the new business world have led them to a prosperous company. They found a way to motivate and stimulate its workers for better performance and new concepts. Moreover, instead of having an idea pass through executives, lawyers, etc. they are testing them on customers, gaining feedback and improving their products in a more effectively.

4. Analyze price strategy, distribution strategy, or promotion strategy of Samsung in the U.S. and compare with one other country in South America, Asia, or Europe.

Samsung’s Price Strategy:

Samsung has employed several different price strategies over the years, but for the most part one of their pricing strategies employed across the globe has shown a major difference in consumer

behavior compared to the U.S. On their smartphones namely, Samsung has employed a strategy, involving offering a wide selection of products of diverse qualities at various price points, ranging from $100 to $2000 in order to accommodate a multitude of consumers (Galaxy A series vs Galaxy Sand Note series and even the Galaxy Fold). As a result of this approach, Samsung has grown its market share in Latin America considerably in the last few years, phones that cost $800 or more which include flagship phones such as Galaxy S8, S9, and S10. Meanwhile in the U.S, their flagship phones have been the most sought-after phone in their product line for years and continue to be some of the most popular in the market.

5. Discuss the Samsung brand itself and compare with Sony or any other brand you think is the major competitor of Samsung.

Samsung is a multinational company founded in South Korea by Lee Byung-Chul. The company started out as a trading company that focuses on trading retail, securities, insurance and other different types of markets. The group later joined the electronics industry where they focused on making mobile phones and had soon become one of the world’s largest informational technology company. Sony was founded in Japan by Masaru Ibuka and Akio Morita. Like Samsung, Sony is also a major company in the electronics industry however, Samsung who is one of the world’s largest informational technology company Sony has become of the largest electronic entertainment companies in the world and is also one of the largest video game companies in the world as well. Both companies have a strong presence in the electronics market however, their products and brand differ from each other when it comes to what their brand is known for.

6. Provide your suggestions of the future of Samsung in the 4P’s locally and internationally?

Product: Samsung focuses on innovating their products by researching trends around the world. Samsung’s products will continue to stay ahead of its competitors by continuously implementing their innovative ideas swiftly. They have proven to have done so by being at the top in its market. Not only are they developing their products fast, they are doing so more frequently then the others. They are also ahead with their innovation by giving customers the newest features and being the first ones to do it. The iPhone 11, the most current iPhone on the market has a selling point of having three cameras however Samsung 10, had already released it’s device equipped with ten cameras to catch different angles. The more economical version of the Samsung 10e was built with three cameras.

Price: Samsung has two pricing strategies that they use for their products price skimming and competitive pricing. Once the competitors do catch on to the new features that Samsung’s products offer, Samsung then drops their price leaving them as a better option for their customers. Price points will vary according to the array of designs and features implemented on the various devices from cellphones, televisions, and computers, but will remain competitive leading to customer satisfaction.

Place: Samsung is currently present in 80 countries and will most likely expand to more places in the future. However, their focus is implementing an eco-friendly product in their future products.

Promotion: Samsung a various promotional tactics to make customers aware of their new products. As far as advertising they focus on their best-selling products such as cell phones, tablets, and TV’s. Samsung offers a wide array of products. However, they also use other sources such as presence

at festivals around the world and sponsorships. Samsung has also partnered with others such as movie promoters and celebrities.

Guha, S., & Burns, C. (2019, September 6). US Smartphone Market Share: By Quarter. Retrieved from https://www.counterpointresearch.com/us-market-smartphone-share/.

Lu, T., LuSenior, T., Tina, Tina, Guha, S., & Burns, C. (2019, September 4). LATAM Smartphone Market Falls YoY For The Fourth Consecutive Quarter in Q2 2019. Retrieved from https://www.counterpointresearch.com/latam-smartphone-market-falls-yoy-fourth-consecutive-quarte r-q2-2019/.

Samsung Electronics regain leadership in Latin America in Q2 - Pulse by Maeil Business News Korea. (n.d.). Retrieved from ​https://pulsenews.co.kr/view.php?year=2019&no=722773​.