Samsung competitive advantage

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Samsung competitive advantage

Share It is fair to say there is no love lost between Apple, Inc. They are in a worldwide corporate battle that started in when Samsung, then an Apple supplier, released a very iPhone-like product through its Galaxy lineup.

Ask either company, however, and you are likely to hear there is too much emulation going on. Consider the almost unprecedented legal wars taking place between Samsung and Apple, which span four continents and billions of dollars in awarded damages. Or the aggressive, political election-style marketing campaigns that are reminiscent of the Ford versus Chevy attack ads.

From a business model perspective, the two companies are constantly converging and modifying, although stark contrasts remain.

Samsung has been a global force longer and has its hands in more industries. In Marchsomeone leaked a Samsung strategy document from in which the Korean-based tech company blankly stated "Beating Apple is 1 Priority everything must be context of beating Apple. Samsung is present in dozens of markets, including flat panels, sensors, LED lights, batteries, gaming systems, cameras, TVs, appliances, cellphone carriers, tablets, smartphones and even medical electronics.

Samsung’s Biggest Competitive Advantage against other smartphone vendors

Before turning its sights to Apple, Samsung competed with, and in many cases bested, Japanese technology companies in the s and s.

This pays off in the mid- and low-end markets, but the high-end products keep running into the juggernaut that is Apple.

Samsung relies on vertical integration as a chief competitive advantage. It is not a magical formula, Nokia was almost as integrated before being steamrolled by Apple and Samsung, but Samsung controls some logistical certainty in a way that Apple does not.

Design, Integration and Outsourcing From its target marketing, research and product design, Apple is a much more focused company than Samsung. It is also a much more profitable company. Apple succeeds on design and integrationand no small degree of risk. This inflates margins and boosts AAPL stock, and is one of the chief reasons Apple can grow at astounding clips.

Not content to just throw out an imitator product, Apple worked diligently with record labels and created a small, sleek-looking replacement. There are similar stories with the smartphone and tablet markets, each considered pillars of Apple innovation but neither of which the company invented. Endless Patent Lawsuits The most acerbic interactions between Samsung and Apple take place in intellectual property rights court, where Apple has repeatedly reached into its bag of litigation tricks to assail Samsung for patent infringement.

Lawsuits are a common strategy from Apple, which is one of the most legally aggressive firms in the world, but the focus on Samsung is particularly repetitive and intense.

The first salvo was fired in when Apple, already entangled with Motorola at the time, went after Samsung for its design of tablets and smartphones. The first claim came in April, and by Augustthere were 19 ongoing Apple versus Samsung cases in nine separate countries.

The count reached more than four dozen by mid, with each company claiming billions of dollars in damages. Each firm won multiple decisions against the other between andoften in conflicting rulings from German, Japanese, South Korean, American, French, Italian, Dutch, British and Australian courts.

Amusingly, the rapid nature of technological advancement often leaves the comparatively dinosaur-like legal system in the dust. For example, Apple won an initial ruling in that targeted more than a dozen Samsung phones, but the appeals and countersuit process dragged out untilwhen virtually every single target model was out of production.

For this reason, the real damage is not on the production line, but rather in the mountain of legal costs incurred by Samsung and Apple around the world.

There are still some production or distribution victories. Samsung fought back and had the injunction reduced to only German markets, but it was still a victory for Apple. A similar injunction was successful in Australia. Trading Center Want to learn how to invest? Get a free 10 week email series that will teach you how to start investing.

Delivered twice a week, straight to your inbox.There's a new entry in the Samsung Galaxy A-Class this year. A pinch of Galaxy J-class with a shot of Galaxy S8 or even S9 and the Galaxy A6+ is then ready. To find out where the Galaxy A6+ fits.

Samsung competitive advantage

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Samsung relies on vertical integration as a chief competitive advantage. While Apple still imports billions of dollars' worth of components from its rival every year, Samsung is beholden to nobody.

Samsung Inc. is a Korean electronics company currently engaged in the design, manufacture and marketing of mobile communication and media devices, electronics, computers and portable digital music players, as well as related software, accessories and third-party applications.

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