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Transcript of BBA350-SAMSUNG
APPLE Inc. VRINE Model--Brand Value Alternatives &
ELECTRONICS INDUSTRY ANALYSIS PORTER'S 5 FORCES PESTEL ANALYSIS POLITICAL/LEGAL SWOT ANALYSIS STRENGTHS STRATEGIES OF COMPETITORS HTC's STRATEGIES “We are dedicated to creating a customized user experience and believe that each mobile device needs to fit its owner, and not the other way around.” * -- Mission Statement APPLE'S STRATEGIES "Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them." * --Mission Statement
Exploitability INTERNAL ENVIRONMENT STRATEGIC INTENT Samsung's Strategy Threat of suppliers HTNS Shenzhen Co, bargaining power with few in number, vertical integration as they make their own memory chips high demand, expectations and price elasticity e.g. iPAD’s, netbooks, laptops and PDA’s Threat of substitutes Threat of Buyers concentrated competitive market with Apple as the main rival Threat of Rivalry economies of scale, hardware (difficult) and software (easy) Threat of entry Patent lawsuits ECONOMICAL Unemployment up 3.9%*
Labour earning up 4.8%^
Weekly consumer consumption up to $1236~ TECHNOLOGICAL Government restrictions
Telecommunications act 1997 vs. Environment
Consumer demand for innovation is high PESTEL-CONTINUED SOCIAL Smartphones for both business & Leisure
More and more teens owns a phone
12 and younger- 31%*; 12-14 yrs old- 76%*
Household income vs. IT facilities^ ENVIRONMENTAL Increasing mobile phone waste
Metal, lead do not degrade, hence toxic
2003,12.8 million Australian household owns mobiles, now? ~
The STAR program: recycling, reusing, wastage treated to cause minimal impact. # strong market position and brand value
continously looking and developing new products (strong R&D)
in house manufacturing strategy WEAKNESSES patent litigations
reliance on design and hardware for differentiation OPPORTUNITIES strong and continual growth in smartphone/tablet market
strong demand in emerging markets
smart tvs THREATS very competitive
weakness in the DRAM segment
fragile world economy Since the beginning of its existence, the original strategic intent of Samsung electronics was to become a major global competitor with a premium brand position in the global market. "An obsession with winning at all levels of the organization and then sustained that obsession over long-term” * Strategic intent--cont. Samsung should spend more time on innovation.
Move production line to cheaper countries will lower production costs by a significant amount.
Raise price of Samsung’s subsidiaries needed by Apple’s IOS processor.
It is recommended Samsung continue to invest more money into research and development. Superior quality +Superior innovation=Superior Responsiveness=Differentiation
Emotional satisfaction of consumers by building what consumers want; long-term relation engagement with consumers
Simple and direct methods used to communicate each of the new and existing product to the consumers. Success using strategies that differed from Apple
Strong ties with carriers
Marketing strategy disadvantage in comparison to competitors & low market share of 5% ~ Strategic intent--cont. 1970s - Capitalizing on the advantage of low cost production, Samsung electronics manage to win the market by best pricing strategy.
1980s - Samsung moved onto building competitive advantage in manufacturing efficiency and competence.
1990s - Samsung positioned themselves as a global market leader in various market segments due to fast technological advancement.
2000s - Samsung announced a bold strategic intent to unseat Sony by becoming the world’s biggest maker of digital mobile phones. Samsung invest a great deal of time in production system.
Samsung follows a low end price range strategy, choosing products that’s insensitive to brand name but highly price elastic.
Samsung focusing on quality control and gradually shifting to technology and innovation from advantages in mass production.
Samsung will spin off some of their current products and moving on to multiple new products. *Australian Bureau of Statistics (ABS), 6202.0 - Labour Force Australia, April 2013, viewed 8 May 2013, http://www.abs.gov.au/ausstats/abs@.nsf/mf/6202.0.
^Australian Bureau of Statistics (ABS), 6302.0 - Average Weekly Earnings Australia, November 2012, viewed 8 May 2013, http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/6302.0main+features3Nov%202012
~Australian Bureau of Statistics (ABS), 6530.0 - Household Expenditure Survey, Australia:Summary of Results, 2009-10, viewed 8 May 2013, http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/6530.0Media%20Release12009-10?opendocument&tabname=Summary&prodno=6530.0&issue=2009-10&num=&view= *Australian Bureau of Statistics (ABS), 4901.0 - Children’s participation in cultural and leisure activities, Australia, April 2009, viewed 8 May 2013, http://www.abs.gov.au/ausstats/abs@.nsf/Products/4901.0~Apr+2009~Main+Features~Internet+use+and+mobile+phones?OpenDocument.
^Australian Bureau of Statistics (ABS), 4102.0 - Australian Social trends June 2011, viewed 8 May 2013, http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/4102.0Main+Features60Jun+2011
~Aussie recycling program (ARP), Mobile phone waste and the environment, viewed 8 May 2013, http://www.arp.net.au/envcha.php.
#Samsung Electronics, S.T.A.R Programme, viewed 8 May 2013, https://support-prc.samsung.com/star_b2b/pages/home.aspx.
*HTC, Company overview, viewed 8 May 2013, http://www.htc.com/au/about
~Lev-ram, M 2013, ‘Samsung’s road to mobile domination’, Fortune International (Europe), vol. 167, no. 2, pp. 98-103, viewed 8 May 2013, http://web.ebscohost.com/ehost/detail?sid=cd80eada-a5f8-40b3-a312-a80484b58554%40sessionmgr198&vid=1&hid=126&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=buh&AN=87075829) *About.com, Apple Inc. Mission statement is not very innovative and barely a mission at all, viewed 8 May 2013, http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/Apple-Inc--Mission-Statement.htm.
*Alston, J.P. 1989, ‘Wa, Guanxi, and InHwa: managerial principles in Japan’, China and Korea.Business Horizen, March-April, pp. 26-31.