Competitive Strategies Case Study

Will Samsung emerge as the No. 1 global handset maker?

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Abstract:
In 2007, Samsung emerged as the second largest handset manufacturer in the global market, dislodging Motorola. With the help of its premium strategy and expertise in digital technology, the company was successful in capturing greater market share than its US counterpart. In spite of such success, the company suffered due to a weak supply chain and lack of proper inventory management, which led to operational delays. So, the company started strengthening its marketing operations, implemented quality control systems like 'Six Sigma' and emphasised its research and development practices. Samsung was keen to overtake Nokia and emerge as the leader in the mobile handset industry. Industrial experts doubted whether Samsung would be successful in becoming the leader in the handset industry as Nokia was far ahead of Samsung with a 40% market share in 2007 compared to Samsung's 13%. Therefore, it remained to be seen if Samsung would be able to dislodge Nokia from the leadership position in the global handset market.

Pedagogical Objectives:

• To understand the factors that triggered the growth of Samsung in the global handset market.
• To analyse the strategies adopted by Samsung to emerge as the second largest handset maker in the global mobile market.
• To estimate the measures undertaken by Samsung to challenge Nokia's dominance in the handset industry.

Keywords : Telecommunication; Growth strategies; Global handset market; Premium strategy; Digital convergence; Six Sigma; Product differentiation; Segmentation; Niche marketing; Competitive advantages; Motorola

Contents : 
Samsung: The Rise of the Korean Giant in the Global market
Marketing Strategies of Samsung’s Closest competitors – Nokia and Motorola
Actual and estimated Growth of the High-end
Benefits reaped By Samsung by implementing eGPS