SESSION III Kumkum Bharti

For MBA 2020

QUESTIONS FOR IN CLASS
DISCUSSION
1. Where is the smartphones in its product life cycle, and how should that
position inform Samsung’s strategy going forward?
2. Should Samsung pursue profitability, even at the expense of market share?
3. Are Samsung smartphones differentiated products? If so, why? If not, what
should Samsung do about it?
4. Should Samsung pursue a multi-segmented strategy or a globally
undifferentiated strategy? If the company should pursue multiple segments,
by what criteria should it segment?
PLC
POSSIBLE MARKETS/
SCENARIOS
S1: MARKET IS NEW (ASIAN, CHINA, INDIA): PRICE SENSITIVE; HUGE
PORTFOLIO; BRAND VALUE (?)- LOW AND MIDDLE; VERY HIGH COMPETITION
(SPECCIFICALLY COMING FORM CHINA); ECOSYSTEM{iOS}; APPS; EASY
PAYMENT OPTIONS FOR A BUYER
Samsung:
Apple:
S2: MARKET IS EXISTING (NORTH AMERICA, WESTERN EUROPE): Replacements
and upgrades, moderate to low growth; subscription model; reducing profits for co. in the
long run; cost of switching is high; keeping up with the competition; quality
Samsung:
Apple:
S1 / S2
Bargaining power of buyer: high
Bargaining power of suppliers: moderate
Threat from new entrants: HIGH/ LOW
Threat from substitutes: android vs iOS moderate/ high
Competition within industry: high
POSSIBLY THREE WAYS OF
DIFFERENTIATING
1. Differentiation from Apple
2. Differentiation from other phones by Samsung itself (unaware about it; easily
reachable to customers and they should recognize it)
3. Differentiation from other android phones (by developing ecosystem; high
involvement customers;
Reverse positioning: market features (lower and mid segment)
Breakthrough positioning: VR were introduced