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Smartphone industry applevs samsung

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HOW SAMSUNG HAS CAPTURED GLOBAL INDUSTRY LEADERSHIP POSITION? COMPARING ITS KEY STRATEGIES AGAINST MAJOR RIVAL: APPLE

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Smartphone industry applevs samsung

  1. 1. SMARTPHONE INDUSTRY Halil Yildirim
  2. 2. TABLE OF CONTENT  Introduction Market development Financial positions Competitive advantage Changes and future of the industry  S-T-P strategies  Porters’ 4P’s  Recommendation  Sources
  3. 3. INTRODUCTION  South Korean, founded in 1938  Wide range of product categories: Smartphones, Tablets, Laptops, TV’s, Cameras, Office electronics (Printers, Hard Disks etc.), Home electronics (Refrigerators, microwaves etc.) #1 in the smartphone market since 2012  American, founded in 1976  More narrow range of product categories: Smartphones, Tablets, Laptops, Computer, MP3 player, digital media player, OS,  #2 in the smartphone market Several lawsuits 
  4. 4. MARKET SHARES  Development in market shares Apple  18.8% (2011) to 11.7% (2014) Samsung  17% (2011) to 24.9% (2014)  Product launch parallels (top models): * 2 in Q3 2014 Vendor 201 1 201 2 201 3 201 4 Apple 1 1 1 0* Samsun g 2 3 4 4
  5. 5. FINANCIAL POSITION  Share price: $118.93 0.07(0.06%)  Volume: 24,814,402  52wk Range:70.51 - 119.75  Market Cap: 697.51B  P/E ratio: 18.44  Revenue Growth: 21.80%
  6. 6. FINANCIAL POSITION  Share price: $1155.38  Volume: 196,891  52wk range: $968 - $1349.160  Market capacity: 151.17 B  P/E Ratio: 7.50  Revenue Growth: 13.60 %
  7. 7. COMPETITIVE ADVANTAGE  Own chip manufacturer  Control on manufacturing process  Vertical integration  Strict Software standards  Closed eco system  Easy sync  Many suppliers (Hon Hai Precision, Pegatron Corp.)
  8. 8. COMPETITIVE ADVANTAGE  Manufactures everything  Bring products to the market faster  Able to rapid change  Pricing strategy  Largest tech. Company because of the revenue  No Suppliers
  9. 9. CHANGES AND FUTURE OF THE INDUSTRY
  10. 10. CHANGES AND FUTURE  Disruptive innovation & Incremental innovation  Updated software  Mobile payment
  11. 11. SEGMENTATION  Geographical:  Global presence  own retail stores, electronics stores  61 countries  Demographical:  Age: 16-29  students, young adults, business professionals  Income: Middle/high  Psychographic:  Technology enthusiasts  Customization  Geographical:  Global presence  own retail stores, electronics stores  62 countries  Demographical:  Age: 14-55  students, young adults, business professionals  Income: High (/middle)  Psychographic:  Music/gamer, media/design enthusiasts  Simplicity
  12. 12. TARGETING  Primary target group Upper middle class professionals  Secondary target group High school/college students
  13. 13. POSITIONING  High quality  Mass consumers  Wide price range  Feature oriented  Premium brand  High quality  High price  Design and trend oriented
  14. 14. PRODUCT (4P’S)  High-end: Galaxy S5, Galaxy Note 4  Mid-range: Galaxy S5 Mini  Low/mid-range: Galaxy Ace 4  Premium: 6, 6 Plus, 5s  Mid-range: 5C
  15. 15. PRICE (4P’S)  Cost (Hungary):  Galaxy Note 4 ~ $ 975  Galaxy S5 ~ $ 735  Galaxy S5 Mini ~ $ 490  Galaxy Ace 4 ~ $ 205  Strategy: Price skimming Competition pricing  Cost (Hungary):  6 Plus ~ $ 1 035  6 ~ $ 900  5S ~ $ 650  5C ~ $ 550  Strategy: Price skimming
  16. 16. PLACE (4P’S)  Electronic retailers  
  17. 17. PROMOTION (4P’S)  Tradeshows, Flyers and Postcards  Videos  Workshops & Events  Spent $ 14 billion on advertising in 2013  Cultivate an air of secrecy and intrigue to fuel speculation and buzz  Create the illusion of scarcity to increase demand  Focus on a "friendly" customer experience  Wow customers through design and packaging  Create a passionate brand community of fans who identity with Apple's brand values
  18. 18. RECOMMENDATION & STRATEGIESMARKETING SPENDING OF APPLE AND SAMSUNG
  19. 19.  Below 42% of iPhone owners had owned an iPhone previously  While 43% of Samsung owners had previously owned an Android phone.  Apple does a better job of getting Android users to convert to iOS with about 20% of its customers coming from Android vs. only 7% of Samsung customers coming from iOS.  Apple has a bit higher retention rate at 42% vs. 38% for Samsung. Apple does a better job of switching Samsung customers at 19% vs. Samsung only converting 7% of its users from Apple.
  20. 20. RECOMMENDATION FOR SAMSUNG (MARKETING ) -Increasing Brand Loyalty. Not too focused on the features. -Creating own Ecosystem in order to differentiate itself from other Android Phones. It will increase its brand loyalty as well -Marketing Activities of Samsung is quite promising both in digital and conventional media. (Buzz Marketing, Media Marketing, Sponsortships) --Increasing the Loyalty! (Low compared to Apple) It’s more about positioning and bonding activities than simply adverising via Celebrities or Media. The Message , Contend is more important than the popularity itself. -Ie: ‘Celebrity Packed Selfie’ on Oscar Show with Galaxy SIII --Company should more rely on TV Shows, appearence on the movies etc.. -- Instead of following position , company should lead both in communication and production* (“The Next Big Thing is here”, ‘The Next Big Thing’
  21. 21. RECOMMENDATIONS FOR APPLE -Apple’s main marketing strategies- create brand loyalty and excitement -“Apple lifestyle”. Their commercials are simple, yet elegant, and displays this “Apple lifestyle” to the consumer. -product placement in movies - 30% of films from 2001 to 2011. From 2008 to 2011 Apple has reportedly spent $647 million on iPhone placement in movies --Need to change its marketing strategy from overlaying on emotional evocative ads. --Using of Buzz Marketin, using of Celebrities
  22. 22. SOURCES  http://www.idc.com/prodserv/smartphone-market-share.jsp  https://prezi.com/635kt-vpajlq/segmentation-strategies-used-by-apple-and- samsung/  http://stpsamsungmobiles.blogspot.hu/  https://prezi.com/9varrsfnvjfd/strategy-analysis-formulation-of-apple-inc/  http://www.slideshare.net/mandarghanekar/group-assignment-22 http://matiesmarketing244.com/2013/09/18/samsung-vs-apple-the-marketing- war/ http://www.forbes.com/sites/chuckjones/2013/08/20/apple-and-samsung-who- could-win-the-smartphone-war/

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