1554261629982_case Study Samsung Prateek (1).docx

A CASE STUDY REPORT ON SAMSUNG COUNTER STRATEGY FOR INDIAN MID SEGMENT SMARTPHONE MARKET SUBMITTED IN THE PARTIAL FULFILLMENT OF THE PGDM DEGREE COURSE OF BALAJI INSTITUTE OF TELECOM & MANAGEMENT (BITM)

SUBMITTED BY PRATEEK PARIHAR TM1615274

2017-2019 BALAJI INSTITUTE OF TELECOM & MANAGEMENT S. No. 55/2-7, TATHAWADE, NEAR WAKAD, OFF. MUMBAI-BANGALORE BYPASS PUNE (411033) 1

Declaration

I, Prateek Parihar, Roll number-TM1615274, student of BITM – Balaji Institute of Telecom and Management, Pune, Hereby declare that this case study paper entitled “Samsung Counter Strategy For Indian Mid Segment Smartphone Market” is a bona fide record of work done by me. I also declare that it has not previously formed the basis for the award to me for any degree/diploma associate ship, fellowship or other similar title, of any Institute/Society. Place: Pune Date: 25th march 2019

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Table of Contents S. No.

Particulars

Page No.

01

Executive Summary

4

02

CHAPTER 1

Introduction

5

03

CHAPTER 2

Products

6

04

CHAPTER 3

Main Contents

7-9

05

CHAPTER 4

Analysis

10-12

06

CHAPTER 5

Learning Objectives

13

07

References

14

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Executive Summary This case study talks about Samsung, which one time gained the top spot in the Indian smartphone market now has seen a drastic fall in its market share as well as sales in mid segment market . The case has a mention about the complete scenario of the company right from its growth to downfall then strategies to counter competetors. The case contains detailed analysis of the reasons which can Samsung progress and the reasons which can lead it to again be the number one player in Indian smartphone market. The case contains the reasons, variables and scenarios which led to growth in the share of Samsung and also the same which led to decrease in its market share. This case presents the situations in which Samsung which once became the market leader has now lost its shares to emerging organizations such as Xiomi ,Oppo and Vivo. The case analyses of Samsung which contributed to its decreased growth and what Samsung should have done to prevent its market position. In short the case describes how Samsung grew in the Indian market and how it has now become a second ranked player in the smartphone industry.

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CHAPTER 1

Introduction Samsung Company : Samsung Electronics is a multinational electronics and information technology company headquartered in Suwon and the flagship company of the Samsung Group. Its products include air conditioners, computers, digital televisions, liquid crystal displays (including thin film transistors (TFTs) and active-matrix organic light-emitting diodes (AMOLEDs)), mobile phones, monitors, printers, refrigerators, semiconductors and telecommunications networking equipment.It is the world's largest mobile phone maker by unit sales in the first quarter of 2012, with a global market share of 25.4%. It is also the world's second-largest semiconductor maker by 2011 revenues (after Intel). Samsung Electronics is listed on the Korea Exchange stock-exchange (number 005930).

History : Samsung started to rise as an international corporation in the 1990s. Samsung's construction branch was awarded contracts to build one of the two Petronas Towers in Malaysia, Taipei in Taiwan and the Burj Khalifa in United Arab Emirates.In 1993, Lee Kun-hee sold off ten of Samsung Group's subsidiaries, downsized the company, and merged other operations to concentrate on three industries: electronics, engineering and chemicals. In 1996, the Samsung Group reacquired the Sungkyunkwan University foundation. Samsung became the world's largest producer of memory chips in 1992 and is the world's second-largest chipmaker after Intel (see Worldwide Top 20 Semiconductor Market Share Ranking Year by Year).In 1995, it created its first liquid-crystal display screen. Ten years later, Samsung grew to be the world's largest manufacturer of liquid-crystal display panels. Sony, which had not invested in large-size TFT-LCDs, contacted Samsung to cooperate, and, in 2006, S-LCD was established as a joint venture between Samsung and Sony in order to provide a stable supply of LCD panels for both manufacturers. S-LCD was owned by Samsung (50% plus one share) and Sony (50% minus one share) .

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CHAPTER 2 Products: The flagship Galaxy S9/S9+, which launched late in the first quarter 2018, witnessed slowerthan-normal sales according to Samsung, which claims the slowdown is due to both intensified competition at the high end and an overall sluggish smartphone market. However, the company is hopeful that with the arrival of Galaxy Note 9 in fall 2018 and the new Galaxy 10s, launched in February 2019, sales will rebound. Here is the rundown on the latest Galaxies: Samsung galaxy fold: The Fold is definitely innovative, with a 4.6-inch HD+ Super AMOLED display (21:9 aspect ratio) on its front and a large interior display that unfolds into a 7.3-inch QXGA+ Dynamic AMOLED screen (4.2:3 aspect ratio). For users, the Fold will likely be all about that big screen. But priced starting at $1,980—or twice the price of a typical flagship handset—the Galaxy Fold will not be a smartphone for everybody. In addition to its dual 7.3-inch and 4.6-inch displays, the Galaxy Fold features a 64-bit Qualcomm Snapdragon 855 Octa-core processor, 12GB of LPDDR4x RAM, 512GB of onboard storage and a 4,380mAh battery with fast charging and wireless charging capabilities. The Fold does not have a MicroSD slot for additional storage. The Fold also features the same cameras as the new Galaxy S10+ and S10 smartphones, including a new three-lens rear main camera set with a 16-megapixel ultra-wide lens, a 12MP dual pixel wide-angle lens and a 12MP telephoto lens. On the front are a pair of 10MP and 8MP auto-focus cameras. Samsung Galaxy S10+: The base Galaxy S10+ features a 6.4-inch Wide Quad HD+ Dynamic AMOLED Infinity-O display, which is larger than the 6.2-inch display in the previous S9+ phone, a Qualcomm Snapdragon 850 Octa-core processor, 8GB of RAM and 128GB of onboard storage. The S10+ is also available in premium versions with a ceramic front and rear cover with 8GB of RAM and 512GB of onboard storage or with 12GB of RAM and 1TB of onboard storage. The earlier S9+ included 6GB of RAM and started at 64GB of RAM.

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CHAPTER 3

Main Content When it comes to the mobile industry, Samsung is undoubtedly a force to be reckoned with. According to the numbers released by IDC a few months back, the chaebol is (still) the largest smartphone manufacturer in the world. And if Samsung wants to continue being that, it can’t afford to ignore India, the fastest-growing smartphone market in the world. Since it’s an extremely price-sensitive market, in India, sales are largely driven by the midrange and affordable segments. While Samsung does have devices/line-ups (e.g. Galaxy Jseries) catering to these price brackets, it has been facing intense competition for quite some time now, thanks to the emergence (and subsequent rise) of Chinese players like Xiaomi, Oppo, and Vivo. To counter the onslaught from China, Samsung has completely “overhauled” its India strategy, and will now put significant focus on the mass-market segment. In the mid-end mass segment, the competition is very harsh. It’s not just the products, it must constantly communicate effectively about Samsung, closely work with the government, and focus on CSR activities. These steps will be important in helping us gain the trust and love of Indian consumers So, what exactly is Samsung’s reworked strategy? It seems it’s all about products that stand out from the competition because of their features and innovations. There’s no denying the fact that Samsung realizes the part India has to play in the former’s plans to continue being a dominant force in the world’s mobile industry. This is why the company recently opened the world’s largest mobile phone manufacturing plant in Noida, Uttar Pradesh. It’ll be interesting to see how Samsung’s renewed focus on India and its volume-driving ‘mass segment’ helps it in staving off competition from brands like Xiaomi, whose own strategy seems to focus launching flagship-grade smartphones at dirt-cheap prices.

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Table no. 3.1

Samsung's new Galaxy 'M' series of smartphones with industry-first features indicates the importance it accords to India as a growth market

According to experts, Samsung which is still the most vertical integrated player in the Indian market, has set its eyes firmly on de-throwning Xiaomi's highly-successful Redmi series in the affordable and mid-price range segment.

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Graph no. 3.2

The Indian smartphone market -- currently undergoing great churning at both the hardware and software levels -- is set to witness a game-changing moment this month in the Samsung Galaxy 'M' series devices that may redefine the affordable and mid-level price segments.

The South Korean giant, which has a significant presence across price points in the country, would this month launch two smartphones -- M10 for around Rs 9,500 and M20 for nearly Rs 15,000 -- with not-seen-before specifications like Infinity-V display in this segment.

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CHAPTER 4 ANALYSIS SWOT Analysis of SAMSUNG: Strengths  Samsung is the world’s number one marketer of mobile phones with 21.4% of the world’s largest market share in the second quarter of 2015. Apple is number two with 13.9%

 Samsung has impressive research and design capabilities. It was able to create and roll out , a payment app with similar capabilities to Apple Pay, in less than a year. Samsung has been able to replicate many of the capabilities of both Apple Inc.’s phones and Google Inc.’s Android operating system for mobile devices.

 Samsung has strong manufacturing and marketing capabilities.

Weaknesses  Samsung has not been able to match Apple Inc.’s marketing capabilities for smartphones. Its share of the Indian smartphone market fell by 2.3% between 2017and 2019. In contrast, Apple’s share price grew by 34.9%.

 Not able to understand the best value for money preposition product as xiomi oppo one plus does

 Some Chinese competitors are catching up to Samsung in the smartphone market. Between 2014 and 2015 Huawei’s share grew by 48.1%, and Xiaomi’s share grew by 29.4%.

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Opportunities  New technologies such as wearable tech  Growing middle class in developing world will increase market for consumer electronics.

 Improving the brand perception.

Threats 

Competition from national & global players:



Chinese manufacturers such as Huawei and Xiaomi emerged as serious rivals to Samsung. These companies’ share of the critical mobile device market is growing while Samsung’s is falling.

Learning Objective: 1 - How can Samsung achieve good position in Indian Market?

2 – What could have Samsung done to prevent its value share in Indian Market before Chinese players takes the charge?

Solution 1:

Growth Reasons

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It targets budget shoppers India is a market where nothing sells better than the low price. Consumers, especially those who are buying their first smartphone after ditching the feature phone they were using for the last five years, are extremely price conscious. Samsung understands this. Hence, it also now sells smartphones in Rs 10000 to Rs 50000 price brackets. This is the price segment where most of the consumers are and by giving people phones they can afford samsung reaps big rewards.

It releases as many phones as it can In the world of smartphones, to keep the buzz around your products either you have to be Apple or you have to keep people interested in your phones by showing them a new phone every month or even every week. Samsung launches almost one to two phones every month, keeping the brand name fresh in people's memories.

Marketing with a difference While Samsung have as much marketing budget it does a really good job of marketing itself. It spends ample money traditional marketing and advertisement channels like television and newspapers. It portrays the Samsung brand as a cool, hip brand that is different from others.

Good reach inside India's small towns and rural areas Samsung has very good reach within India. This means whether you are in a big city like Delhi or in a small town outside Agra, you can easily find a Samsung phone in the store. Now, Samsung too has invested a lot of money in its supply chain, and just like Nokia of the old days it is omnipresent in the Indian phone market. But when you combine the fact that Samsung phones are easily available with the low prices at which they are available, you get a winning combination. In comparison, Samsung still comes across as sort of a premium brand,.

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Solution 2:

Strategies Samsung could have adopted Sponsoring Indian Cricket Matches One of the major sponsor who used to sponsor every cricket match held in India, our own “Hero Honda – Desh ki Dharkan – Dhak Dhak”. But Samsung knew that Indian people love cricket more than any other game and serial. So they took the title from Hero Honda and did sponsor a lot of series. With this strategy they reached to millions of customers. In 2014-15 they paid 20m INR to BCCI per match.

Reach to Indian market Soon after launching their own mobile handsets in the market they started opening outlets all across Indian cities. They opened outlets and service centers more aggressively than any other mobile company even beating Nokia. Through this they become a household name in all cities and quickly made its own identity.

Right product strategy Samsung knows what Indian wants. As price driven market. Who understands this line more than Indian and this is what Samsung should do . Right product at right time at right price. Who keeps a mobile handset more than one or two years. Every quarter they bring a new handset,

only

competitor

in

terms

of

launching

handset

is

Xiomi.

.

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CONCLUSION In my opinion Samsung already took a nice step towards understanding Indian consumers and try to provide value prepositions as products in price driven market hence Samsung need to continue this along with better service supports and consecutive updates to Indian users that will basically let Samsung stand at the same rank as it was before in comparison to Chinese players

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References : 

http://global.samsungtomorrow.com/samsung-electronics-announces-earningsguidance-for-q2-2015/

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http://www.idc.com/prodserv/smartphone-market-share.jsp

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http://www.extremetech.com/computing/185937-in-2015-tablet-sales-will-finallysurpass-pcs-fulfilling-steve-jobs-post-pc-prophecy

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