...attacks Apple and answer to the following questions: 1. How important role do Samsung and Apple play in global smartphone market? 2. What is guerrilla marketing and discuss how Samsung tried to win the smartphone battle by guerrilla marketing? 3. Discuss various strategies adopted by Samsung to win over Apple? 4. Discuss the opportunities and challenges arising out of the battle between Samsung and Apple? This assignment represents 5% of your final grade. Deadline: Friday, 5th September 2014! INTERNATIONAL BUSINESS SCHOOL YEAR 2014/2015 INDIVIDUAL ASSIGNMENT (2-3 pages, typed and handed in personally on lectures) 1. Samsung is the one of two largest smart phone producers in the world. Samsung, a South Korean company was founded in 1938 by Byung-Chull Lee .'Samsung Electronics' which was popular in the world for various consumer electronic goods such as TV, Computers, Mobile Phones, Music System, and Camera etc. ln late '1970s and early 1980s, Samsung forayed into various international markets and the company started expanding its business globally. ln 2010, Samsung introduced its first smart phone 'Samsung Wave' based on its own operating system Bada. ln October 2011, the company introduced its most challenging smartphone Galaxy S ll, which was considered as a tough competitor for Apple's smartphone. Another largest smartphone producers and best know brand is Apple. Apple was founded by Steve Jobs (Jobs) and Steve Wozniak in 1976 in California...
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...What are the main issues of the Battle? Apple is trying to protect its patent. “A patent is a set of exclusive rights granted by the government,”(piperpat.com) usually for a new invention/product. Apple have many patents, however they cannot protect them all as there is a constant change and upgrade in technology that only specific new features can be protected such as their ‘pinch and stretch’. Apple won a court battle after suing Samsung for “$1.05billion due to patent infringement.”(Opinion,2012) However they only won the battle as Samsung copied their ‘pinch and stretch’ trick. Below shows the courts ruling over certain patent claims by Apple towards Samsung. Samsung retaliated by trying to claim that Apple copied some of Samsung’s patents. However the judges ruled against Samsung. The key factors, in this patent battle are to prevent the other from gaining more market share and stealing their ideas. Both companies are large and have a large share in the tablet and smart phone market. The paperwork is based around a battle for patent, it is clear that it’s a battle over market share, reputation and a fight for dominance. This is why neither will back down, or accept they are at fault. The court battles are costing them millions and if it carries on the costs will damage the company’s reputations and profit’s as these costs need to be covered someone. Who are the main actors implicated and what are their claims? The billion-dollar patents dispute between hi-tech...
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...Levels of Product Differentiation in the Global Mobile Phones Market The sixth product level called compliant product is a connecting element between the physical product characteristics and the strategy of the producer company Stanimir Andonov* The article discusses the differentiation among the product offers of companies working in the global markets, as well as the strategies which they use and could use in that respect. The main idea of the paper is that the principle “differentiate or die” (Jack Trout) has died. Today the global brands don’t strive to differ from their competitors in everything and at any cost. As an example, let’s have a global look at the business of mobile phones. In June 1998 Ericsson, Nokia, Motorola and Psion established their own International Strategic Alliance, a private independent company called “Symbian”. Symbian Ltd. is an independent, for-profit company whose mission is to establish Symbian OS as the world standard for mobile digital data systems, primarily for use in cellular telecoms. So, the three biggest mobile phone companies at that time and Psion, a mobile PC company, created a new way for competing and differentiating. Today Symbian Ltd. is owned by Ericsson, Nokia, Panasonic, Samsung, Siemens and Sony Ericsson. Figure 1 shows the percentage of shares of each shareholding company: Figure 1 Shareholding companies of Symbian and their percentage of shares Source: Symbian Ltd. – Company Ownership, http://www.symbian.com/about/ownership...
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...SMARTPHONE INDUSTRY IN 2013: SAMSUNG’S DILEMMA1 Mehdi Hossein-Nejad wrote this case under the supervision of Professor W. Glenn Rowe solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2014, Richard Ivey School of Business Foundation Version: 2014-06-18 In April 2014, Samsung released its new high-tech flagship phone, the Galaxy S5. The new Android phone came after another successful year for the company. After becoming the leading global mobile phone manufacturer in 2012, 2 Samsung had maintained that lead in 2013 and sold more phones than rivals such as Nokia and Apple. Samsung was also a major player in the increasingly popular tablet computer market. The success of the Galaxy S3 and S4 had created a lot of expectations for the S5 device, but both Samsung and industry...
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...Technologies that have affected Apple A major technology that has affected Apple has been other cellphone companies. The competition and market for smartphones have targeted the Iphone. Apple one of our technology giants has been affected by other companies reinventing there designs. One of the most recent challenges they have faced is with a top retailer in the industry Samsung. Apple battled Samsung in court involving a technology patent that included the look, similar design, and sliding of app screen. Technology change in Apple product line Apples product line is expansive and has continued to grow. Apple continues to lead the market in tablets (Ipad,Ipad2,Ipad w/retina display, Ipad mini etc.) ,mobile device (Iphone – Iphone 5, Ipod – 7th generations, Ipod touch) , continual advancement in notebooks (Mac book pro, Mac book Air) and still innovative desktop solution like Mac mini. The product line reaches out to all ages and can accommodate a variety of environments. Weather to use in the business realm or simply for leisure and convenience; they have definitely tapped into a market where truly Apple lovers are behind them. • From the end user’s perspective, how has service been changed by technology? The evolution of Apples design and proprietary look has consumers hooked. The experience of walking into an Apple store may have the end user sold. There acknowledgement and expertise truly make purchasing one of these devices about the experience. As the demand has grown...
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...Industry Competition Analysis Take-Home Exam 1.What is Poter’s Five Forces Analysis? Please use it to analyze the smartphone industry. Ans: (1) The model of pure competition implies that risk-adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure. Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates. (2) Rivalry is medium (a)Small number of companies develop operating systems (Nokia, RIM, Google, Apple) but more companies develop hardware. (b)Smartphones are highly perishable products that depreciates quickly in the market. Producers need to sell quickly, which intensifies rivalry. (c)The industry is still growing. Threats of Substitutes is high (a) While brands differentiate between different Smartphones to an extent, Smartphones in the same price range have mostly the same functions. Buyer Power is medium to weak (a)Weak: buyers are not concentrated and can not influence the price. (b)Medium: Buyers can purchase from a rival, but a rival will not necessarily present the buyer with better incentives or prices. (c)Weak: Some producers’ influences extend to their distribution...
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... BUYER’S POWER: - Nokia had been edged out by rivals in the smartphone market who launched new and better products which resulted to Customers shifting to android phones which resulted to Nokia reducing their selling price in order to increase the rate of sales but they lost in the rate of profitability and consumer loyalty. The customer power is high; nokia is focusing on the smartphone segment because it has the biggest margin in the industry, the consumers are increasing despite the high rate of recession, product and price differentiation is getting lower which is resulting in the difficulty of buyers making a decision about the particular phone they will want to buy. Most consumers get phones on contract and switching from one phone to another is difficult and expensive and with other brands leading in the smartphone industry, it will be difficult for consumers to switch from Samsung or iPhone to Nokia. Most of the other brands own distribution stores while nokia doesn’t really have enough distribution channels, making it difficult for buyers to reach their product easily in some countries. COMPETITIVE RIVALRY: - Competitors were quickly catching up with Nokia’s Symbian platform. As the Symbian OS was not optimized for touchscreen devices, users were turning to the Android, Blackberry OS, and Apple’s iOS. Nokia struggled to keep pace with rivals such as Apple, Samsung, Google, and RIM in the high-end smartphone market. Nokia is not only competing with high-end manufacturers...
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...emails, voice services, and text messaging, internet and intranet based applications. RIM technology support and enable a broad array of third party developers and manufacturers producing complementary technology which in return further enhances its products and services making the company a common name and standard business tool for a large number of corporations. These third party products complement RIM's devices extending functionalities, capabilities, and making it a popular personal digital assistant (PDA) device choice for both personal and business users rivaling that of Palm’s offerings in the field of smartphone category. RIM popularized a product we called BlackBerry which is basically a mobile phone device competing against Apple's iPhone, Samsung's Galaxy, Nokia's Lumia, and HTC'x Vivid and collectively dubbed as smartphone devices, RIMs new Black Berry Bold 9900/9300 Series has already got some awesome reviews because of their functional design and stylist look along with consumer oriented design approach. 1- What were some of the challenges RIM faced to protect its Intellectual Property and how did RIM...
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...handset touted as cash spinner in battle to catch upmarket rivals Tuesday, 30 April, 2013, 5:32am * The Nokia 105 has been released in some Asian markets. As Nokia battles to catch Apple and Samsung Electronics in the market for smartphones costing US$500 or more, it's counting on a bare-bones handset that sells for just US$20 to give it an edge. Priced 97 per cent below the latest iPhone, the Nokia 105 features preloaded games, a colour screen, a radio, a speaking clock and a torch. The phone, Nokia's cheapest, has been available for a few weeks in India and Indonesia and will soon start selling in Europe. Even with its bargain-basement price, the 105 is critical to Nokia's entire handset business. Nokia reported on April 18 that it sold about 11 million fewer mobile phones in the first quarter than analysts had projected, with sales of basic phones plunging 21 per cent to 55.8 million units. A failure to revive the low-end business would leave Nokia without an important source of cash as it seeks to develop challengers to the iPhone and Samsung handsets that run Android. Falling sales of simpler phones were "definitely worrisome", said Mika Heikkinen, a fund manager at FIM Asset Management in Helsinki."They have to get this under control." Nokia chief executive Stephen Elop points to the 105 as a signal that the low-end business can recover after a difficult quarter. While demand for the iPhone and Android devices have made smartphones the fastest-growing part of...
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...Is Apple’s release of the Apple Watch an example of good innovation timing? Yes, Apple’s release of the Apple watch is an example of good innovation timing. Apple Inc. is an American multinational corporation that produces consumer electronics and computer software products. It was co-founded by the iconic Steve Jobs and the other founders Steve Wozniak and Ronald Wayne. Though it faced tremendous amount of adversities in the initial, under the stewardship of Steve Jobs, the brand became a household brand. The company's reputable gadgets include Macintosh computers and laptops, the iPod and the iPhone. Apple software includes the Mac OS X operating system, the iTunes media browser and many other applications (Rouse, 2009). Being a titan in the consumer electronics industry, its latest innovation would the Apple watch. Although other smartwatches has been out in the market. I feel that Apple watch was an example of good innovation timing. The first reason to support my claim would be that, Apple has made life easier for payments. Unlike other smartwatches that does not support the payment through smart gadgets. Apple has made it easier for Apple watch users to pay using the Apple Pay function. This is a mobile payment and digital wallet that allows the users to make payments via their smartwatches at the most secured way (Apple, 2015). This function is so much notable that great companies such as Barclays (Brian, 2016)and ExxonMobil (Campbell, 2016) are backing up this feature...
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...from external, internal, business level strategy and Corporate-level Strategy four part, and find key issue of RIM facing now , what is the way out. (RIM, 2012) http://www.blackberry.com/select/get_the_facts/pdfs/rim/rim_history.pdf Research In Motion (RIM), a Canadian company, introduced their new phone BlackBerry 850 in 1999 which creating the wireless email market, and also introduced a Software package called the BlackBerry Enterprise Server which help people access to work email even they are not in the office, people start to use BlackBerry as a corporate mobile phone.in 2007, the RIM became the Canada`s most valuable company, and in 2009 the global smartphone market share held by RIM is almost 20.1% (statista, 2013). http://www.statista.com/statistics/263439/global-market-share-held-by-rim-smartphones/ Key issue: The company is deteriorating http://www.theguardian.com/technology/2013/jan/30/new-blackberry-phones-revealed http://ca.blackberry.com/content/dam/bbCompany/Desktop/Global/PDF/Investors/Documents/2012/2012rim_ar_40F.pdf http://ca.blackberry.com/content/dam/bbCompany/Desktop/Global/PDF/Investors/Documents/2012/2012rim_ar_40F.pdf Competition: The rise of the Apple iPhone and Google’s Android OS has been rapid...
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...been at battle for a while over having the best technology out there when it comes to on the go electronics. This started when Apple claimed that Samsung somehow copied the IPhone. Lately Samsung was fined for revealing confidential information about Apple. But Samsung also exposed the same information about their company as well. Analyzing the Reliability Samsung states that Apple have published the licensing agreement on their product back in October and left it exposed for up to four months. Apple apparently has been refusing to provide information on the theory of Samsung stealing their technology. When analyzing the reliability of both phones and electronics none of them are completely perfect. When choosing a phone you look for preference like security, speed, battery life, or camera features. Samsung is known for the microphone issues whereas Apple technology comes equipped with a number of battery issues. Studies have showed that Apple technology is three times more reliable than its closest competitors. When comparing Apple to Samsung you have a variety of things to consider. Apple went under testing and as a result had the fewest number of problems in relations to the IPad and IPhone. Most of the problems found where related to battery life. The best seller of Apple is its interface, camera, and app store which will keep smartphones users wanting more of what they have to offer. Samsung on the other hand is the second highest reliable smartphone on the...
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...Analysis Ernest Coronado Samsung Case Analysis Ernest Coronado CSUCI – Spring 2015 Prof. Jeffrey Stone - Capstone 499 CSUCI – Spring 2015 Prof. Jeffrey Stone - Capstone 499 Smartphone Industry in 2013: Samsung’s Dilemma (1) In 1938, the Samsung Corporation began in Korea as a trading company selling fish, fruits and vegetables to Asia and eventually expanded to manufacturing, machinery and sales operations. Over several decades, the company diversified and grew to become an international conglomerate, which included Samsung Electronics. Samsung’s Electronic business operates in several areas such as visual displays, appliances, health and medical, mobile communications, memory, etc. that generate revenue close to US$100 billion in 2012, making it the world’s largest technology company based on revenue. Samsung Electronics is one of a few major players in the fast-moving smartphone industry. This industry is parsed into two primary segments, the hardware (handset/phones), and the (OS) operating systems that run them. The key issue facing the company today is whether it should enter the OS market for itself, or keep existing relationships and look for other ways to gain strategic advantages in the market. There are several aspects to the environment that faced the smartphone industry. The social and cultural phenomenon where over the last decade consumers have been using technology that allows them to stay connected and communicate anytime and anywhere. Growth...
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...distribution channel as the best distribution strategy for Samsung smart phones. In addition, a multi-channel distribution system was recommended that utilized only the catalogue and the sales force. The target market needs identified indicated that most Smartphone users demand the android operating system, and are very sensitive to original products from Samsung thus validating the direct distribution channel. Introduction In order to effectively sell their products, marketers must consider a number of factors that contribute to a perfect marketing and distribution plan. Some of the vital things to consider while marketing a product include the distribution channels to adopt, the target market needs and its effect on the chosen distribution channel, and the type of channel member to use, whether a retailer, wholesaler, manufacturer, or a dealer. According to Kotler & Armstrong (2001, p. 15), marketers should have the ability to identify threats and opportunities within a business environment in order to develop a perfect and successful marketing plan. The following discussion provides a deep analysis on how an entrepreneur can market a product and make it available to the end user. The selected product was a Samsung Smartphone. The increasing demand for technologically advanced gadgets in the present digital world stimulated the above selection. Analysis Market analysis of smart phones The high rate of technology advancement and the increased...
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...ended August 31. The net loss is $235 million which excluding inventory charge and restructuring charges in the latest quarter. The cash position also down to $2.6 billion from $3.1 billion at quarter-end. Smartphone maker report a hefty operating loss of nearly $1 billion charge on inventory of unsold phones. Fairfax Financial Holdings to take the company private for about $4.7 billion, or $9 a share. As a former mobile king, BlackBerry faces to exit the handset business. This report will conduct a situation analysis of potential causes of declining sales and profits of Black Berry. And also would identify internal company and external environment for the poor performance. A particular reason of the sales declining is BlackBerry cannot satisfy enough to the market and product demand for customers. Sales declining imply to revenues declining. BlackBerry recognized most phone’s revenue is from the older models, which means the new phones are not much attract to customers. Ian Austen (2013) noted that BlackBerry could soon be leaving the business of making phones—leaving fewer options for a vocal minority still committed to phones with its once popular physical keyboard. (para. 1) BlackBerry usually produces the keyboard models, but with people’s pursuit on phone, most smartphone users prefer to use touch-screen models instead of the physical keyboards. Keyboard was one of a special characteristic of BlackBerry, eventually, that become an...
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