Mobile Phone Life Cycle

Samsung Electronics is a semiconductor fluent bid and mobile phone component manufacturer. It exists in the approximately alive(p) end of the consumer cros pitg industry. It cannot advance without continuous incremental improvement and without constantly updating its product portfolio. The product life cycle for its premium product the Samsung galaxy S3 is estimated to be all 9 months. This occurs because customers withhold purchasing a product for which they know is red ink to be updated and replaced imminently.Samsung is a conglomerate in multiple marketplaces, with the briny scratch centres being mobile telecommunications and information engine room manufacturing. Samsung has posted record mesh in its close to recent financial quarter. Samsung is a high-voltage plainly reactionary company it emulates innovations by separate manufacturers such as orchard apple tree but it operates in a marketplace where such things ar common. It manufactures components for near other manufacturers of mobiles tablets and PCs. Samsung has an adversarial relationship with apple who is Samsungs twain Samsungs chief(prenominal) competitor in mobile telephony and one of its biggest customers.Samsung has an advantage over apple at present in that it has the infrastructure and dynamic capability to manufacture the components compulsory. This leaves its main rival Apple requiring Samsungs co-operation. Samsung is pursuance to increase the price which it charges Apple. Strategically this is a wise option as switching costs for Apple essentially having to retool its entire operating(a) network and refresh its products. Samsung is a company that prefers to grow organically. It has been suggested that the starchy engage in a get of Blackberry maker query in Motion. This would be characterised as a defensive acquisition.It would be scarce adding to its portfolio of assets and gaining ownership of a mobile operating system. Currently it licences the mechanic al man from Google. Samsung has a strong diverse product portfolio and is capable of competing in numerous markets from the downhearted end smartphones to the Premium wandflower range Samsung has a product for both possible price point. Samsung partners with other providers and builds phones and other devices for them such as the Google chrome book. In an industry where there are numerous rivals and whereby Product flavour Cycles are becoming progressively shorter.Samsung has an advantage in that as a semiconductor manufacturer it can respond to changes in the market dynamic quicker. A disadvantage for Samsung is that is does not have the like prestige as Apple and therefore cannot charge such premiums for its products. Samsung has to offer more(prenominal) at a lower price point than Apple does for its competing products. Samsungs flagship Galaxy Range has 2 rivals for Apples iPhone the Galaxy S3 and the Galaxy NOTE 2. These combined hitherto though they are of similar qual ity and differentiated towards different market segments than the iPhone 5 sales are still less than Apple.Could Samsung drop the Samsung language and market its high end models as Galaxy? This could enhance the address of the high end premium line. In the technology business Samsung is a rare beast in that it rarely makes acquisitions. Very few technology acquisitions are deliberately earnings generative. Facebook buying Instagram and Microsoft buying Skype are considered to be primarily defensive plays to enhance and protect certain advantages each of these companies had. Samsung could purchase a rival chip maker, though logistically and practically there would be little point in doing so.Another concept potentially to consider would be merging with Google to create an all in one hardware and software company. While logistically this would be the ultimate defensive move by both sides, it would be very difficult integrating the different business cultures it would believably mean that Samsung would have to move its headquarters to the U. S. A. A merger to companies that are on friendly terms as it is would certainly produce synergies in financing, but as they both maintain bombastic cash heap that are increasing every quarter it doesnt seem that the adventure would be worth it.Another option for Samsung would be Nokia this would give Samsung 30 per cent of all the patents for 4G networks which would give the firm a significant royalty electric current from every 4G enabled phone groundwide over the next 8 to 10 years which is the expected length that 4G will remain as the most modern network. Samsung will however be paying for a fool name and significantly weak company . It would also have to put up off rumoured interest from Microsoft. It would be a costly acquisition at 30 billion dollars given the Market Capitalisation of Nokia today and the required premium with which would be required to be successful.Samsung could use its partnership with R enault Nissan in the automotive industry to create a suite of products automatically synchronised with the car. This would be similar enough the Tesla Model S. While this is a left-field insinuation it is leveraging assets that Samsung already has and utilising it in parliamentary law to serve its main remunerative arm. This allows the firm to gain a competitive advantage over its main rival Apple. The struggling Nippon-French automobile manufacturing partnership might also be receptive to an outright takeover by Samsung.Samsung has heretofore been a impulsion follower, albeit a very adept and nimble one. It hasnt necessarily been the most innovative company, however with product life cycles getting consistently smaller and the competition which Samsung faces at all ends of the market from the low end to very top is also getting more innovative. Samsung is one of only a small number of companies that could redefine the market. It already produces Smart TVs in large quantities. It could start selling phones laptops and tablets TVs in large bulk quantities by already pre synchronising them for customers.Its steps like this that will put it ahead of its main rival Apple which is rumoured to be introducing a television that is expected to permanently variegate viewing experience. In order to successfully manage this transition Samsung would have to be ahead in the U. S. A first and foremost. Gaining introduction to material is what blocked Apples entry into this new market. Aggressively Samsung could purchase a cable company or Netflix and control this content for itself, gaining such an unequivocal competitive advantage.Samsung if it wanted to be aggressive could stop supplying Apple severely hampering its main rivals operations while sharp increasing market share elsewhere by undercutting Apple. Another outline would be to introduce a phone that would have enhanced abilities i. e. a class above its premium Galaxy range and equivalent iPhone 5 and Goog le Nexus 5. This would entrap Apple in a Pincer deed that would allow Samsung to be effectively the supplier of the latest accessory mobile phone, which at present is the iPhone 5 rather than the equivalent S3 and Note 2.The other strategy is to remain second the mobile phone market and a distant competitor to Apple in the Tablet market, this is the most materialistic option and requires the least capital outlay, however it risks being overtaken in the same way Nokia was. In the technology market an aggressive approach would be beneficial, but as the relationship between Google and Samsung is seen as quite corking the optimal strategy would be to jointly design products that would create a short term monopoly , such things exist in a world where second best is very often a distant second.Utilising inhering dynamic capabilities it was Apple who was playing catch up to the S3 and Note 2 but the iPhone 5 is outselling both products collectively, this could be because of the inertia derived from being introduced to a particular eco-system, in this way Apple has a first doer advantage in that it has a lot of loyal clients. Samsung primarily operates on Googles Android operating system which is compatible with other Android users such as HTC and LG. At present Android has 68% of the market but the high margin clients have primarily tended to purchase Apple products.This is an issue that is only further compounded by time. In order to overcome this Samsung would have to be overly aggressive on a pricing strategy for a phone that would be significantly more advanced than its predecessors and its rivals. Samsung Electronics as a whole is a diversified technology company that should continue to grow unless it commits the cardinal sin of failing to innovate. It is a buy but it will have to alter its practices if it wants to surpass Apples profitability. S. Decker, 2012 Samsung Gets Review of Loss to Apple in U.S. Patent Case http//www. businessweek. com/news/2012-11 -19/samsung-gets-review-of-loss-to-apple-in-u-dot-s-dot-patent-case Last Accessed 20/11/12 11. 25 http//www. investopedia. com/terms/d/defensiveacquisition. aspaxzz2ClJTl2OX Last Accessed 20/11/12 11. 30 Sam Grobart, 2012 Samsungs Four (Easy) Steps to Mobile potentiality http//www. businessweek. com/articles/2012-11-19/samsungs-four-easy-steps-to-mobile-dominance Last Accessed 20/11/12 11. 30 Samsung Annual declare 2011