Executive Bachelor in Management

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    CONTENTS

    Question1

    Content Pages

    SAMSUNG Company History 31.1 Introduction Samsung Enterprise Market 4 !1." Introduction o# Android Market ! $1.3 Ho% Samsung &ack'e Mo(i'e Enterprise

    Market) 1*

    1.4 Strategic Marketing +(,ecti-es S/+&ana'ysis

    11 "4

    1.4.1 Segmentation Strategies1.4." 0ositioning Strategies1.4.3 0ricing Strategies

    1.4.4 0romotion Strategies1.4. C2anne' Strategies1.4. S/+& Ana'ysis

    1. Samsung Ac2ie-ement "1.! 0ES& E Ana'ysis "!1.$ 5i-e 5orces Mode' "$1.).* Samsung Mo(i'e segmentation 311.).1 Samsung 5uture Action 0'anQuestion 2

    ".1 Introduction Samsung6s Main Competiors S/+& Ana'ysis

    ".1.1 App'e 7ip2one8 S/+& Ana'ysis".1." N+9IA S/+& Ana'ysis".1.3 M+&+:+ A S/+& Ana'ysis".1.4 :IM ;'ack;erry S/+& Ana'ysis

    3

    "." Samsung6s competitors competiti-ead-antages".".1 App'e 7i02one8 Competiti-eAd-antages"."." N+9IA Competiti-e Ad-antages".".3 M+&+:+ A Competiti-e Ad-antages".".4 :IM ;'ack;erry Competiti-eAd-antages

    4!

    ".3 Samsung6s Competition Strategic 0'ans #orincrease Market S2are".3.1 App'e i02one Strategic 0'ans".3." Nokia strategic p'ans".3.3 Motoro'a Strategic p'ans".3.4 :IM ;'ack;erry Strategic 0'an

    1

    Refferences *

    2

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    SAMSUNG COMPANY HISTORY

    Unlike other electronic companies Samsung origins ere not in!ol!ing electronics

    "ut other pro#ucts$

    In %&'( the Samsung)s *oun#er +,ung-Chull .ee set up a tra#e e/port compan, in

    0orea1 selling *ish1 !egeta"les1 an# *ruit to China$ 2ithin a #eca#e Samusng ha#

    *lour mills an# con*ectionar, machines an# "ecame a co-operation in %&3%$ Hum"le

    "eginnings$

    4rom %&3( on ar#s Samsung "egan to e/pan# into other in#ustries such as

    *inancial1 me#ia1 chemicals an# ship "uil#ing throughout the %&56)s$ In %&7&1

    Samsung 8lectronics as esta"lishe# pro#ucing hat Samsung is most *amous *or1

    Tele!isions1 Mo"ile Phones 9throughout &6)s:1 Ra#io)s1 Computer components an#

    other electronics #e!ices$

    %&(5 *oun#er an# chairman1 +,ung-Chull .ee passe# a a, an# 0un-Hee .ee took

    o!er as chairman$ In the %&&6)s Samsung "egan to e/pan# glo"all, "uil#ing

    *actories in the US1 +ritain1 German,1 Thailan#1 Me/ico1 Spain an# China until %&&5$

    In %&&5 nearl, all 0orean "usinesses shrunk in si;e an# Samsung as no e/ception$

    The, sol# "usinesses to relie!e #e"t an# cut emplo,ees #o n lo ering personnel ",

    361666$ +ut thanks to the electronic in#ustr, the, manage# to cur" this an# continue

    to gro $

    The histor, o* Samsung an# mo"ile phones stretches "ack to o!er %6 ,ears$ In %&&'

    Samsung #e!elope# the )lightest) mo"ile phone o* its era$ The SCH-(66 an# it as

    a!aila"le on C

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    1.1 Introduction Samsung Enterprise Market

    Samsung 8lectronics is one o* the orl#)s largest semicon#uctor manu*acturers?

    Samsung 8lectronics is also South 0orea)s top electronics compan,$ It makes man,

    kin#s o* consumer #e!ices1 inclu#ing

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    segments$@arin gra#uate# ith a +achelor o* Science in Computer In*ormation

    S,stems *rom Ne Hampshire College1 USA$

    The ne market segmentation ill manage SamsungBs Mo"ile securit,1 increase in hea#count$

    @arin#er sai# the compan, oul# "e orking ith glo"al an# local partners1 ith the

    *ormer inclu#ing giants such as uniper1 Cisco1 Citri/ an# Microso*t on pro!i#ing

    solutions *or the #i**erent !ertical in#ustries$ He a##e# that the compan, ha# a"out

    %1666 partners in Mala,sia1 hich the 8nterprise +usiness

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    management1 certi*ie# #ata encr,ption an# !irtual pri!ate net ork capa"ilities "uilt

    in$ CIOs 9chie* in*ormation o**icers: ha!e a num"er o* securit, challenges hen it

    comes to a#opting +YO

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    An#roi# phones are highl, customi;a"le an# as such can "e altere# to suit ,our

    tastes an# nee#s$ You can check ,our 4ace"ook an# T itter pro*iles through a

    !ariet, o* apps making it i#eal *or social net orking$ Through the calen#ar ,ou can

    set remin#ers *rom ,our #esktop or ,our phone an# on the latest !ersion o* An#roi#

    ,ou can sen# links to an# *rom ,our computer an# !ice !ersa$ Another neat *eature

    o* An#roi# is that it automaticall, "acks up ,our contacts *or ,ou$ 2hen ,ou set up

    an An#roi# phone ,ouBll nee# to create a Google Account or sign in ith an e/isting

    one$ 8!er, time ,ou sa!e a num"er to the a##ress "ook o* ,our An#roi# phone it ill

    "e s,nce# to ,our Google Account$

    The "ene*it o* this is i* ,ou lose ,our phone all o* ,our num"ers ill "e sa!e#$ The

    ne/t time ,ou get an An#roi# phone an# sign in ith ,our Google Account1 all o* ,our

    contacts an# *rien#s num"ers ill "e #ispla,e# in ,our ne phoneBs a##ress "ook$

    Google is constantl, orking on ne !ersions o* the An#roi# so*t are$ These

    releases are in*reLuent? at the moment the, normall, come out e!er, si/ months or

    so1 "ut Google is looking to slo this #o n to once a ,ear$ @ersions usuall, come

    ith a numerical co#e an# a co#ename thatBs so *ar "een name# a*ter a t,pe o*

    #essert? e$g$ An#roi# %$3 Cupcake1 An#roi# =$% 8clair an# the most recent e#ition

    An#roi# =$= 4ro,o$ The ne/t e/pecte# e#ition o* An#roi# is !ersion =$' an# is

    co#ename# Ginger"rea#$ The #essert names o* the releases are in alpha"etical

    or#er$ The ne/t up#ate is e/pecte# to "e calle# Hone,com" an# the one a*ter that

    Ice Cream$

    The !ersion histor, o* the An#roi# mo"ile operating s,stem "egan ith the release o*

    the An#roi# "eta in No!em"er =665$ The *irst commercial !ersion1 An#roi# %$61 as

    release# in Septem"er =66($ An#roi# is un#er ongoing #e!elopment ", Google an#the Open Han#set Alliance 9OHA:1 an# has seen a num"er o* up#ates to its "ase

    operating s,stem since its original release$ These up#ates t,picall, *i/ "ugs an# a##

    ne *eatures$

    Since April =66&1 An#roi# !ersions ha!e "een #e!elope# un#er a co#ename an#

    release# in alpha"etical or#er Cupcake1

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    up#ate as ell, +ean $=1 hich as release# on commercial #e!ices in No!em"er

    =6%=$

    The Timeline

    % Pre-commercial release !ersions 9=665E=66(:

    o %$% An#roi# alpha

    o %$= An#roi# "eta = @ersion histor, ", API le!el

    o =$% An#roi# %$6 9API le!el %:

    o =$= An#roi# %$% 9API le!el =:

    o =$' An#roi# %$3 Cupcake 9API le!el ':

    o =$ An#roi# %$7

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    1.3 Ho Samsung Tack!e Mo"i!e Enterprise Market

    Samsung hopes to make a "ig push into the corporate market in =6%'1 targeting the

    market that once as #ominate# ", Research In Motion$ 2hile the South 0orean

    compan, isnBt #isclosing much in the a, o* strateg,1 it is Luietl, "uil#ing corporate-

    gra#e #e!ices running An#roi# that are more secure an# relia"le than the t,pical

    consumer nee#s$

    This is a ise mo!e *rom Samsung1 hich recentl, took NokiaBs cro n as the orl#Bs

    largest manu*acturer o* mo"ile phones an# hich this eek announce# the sale o*

    its % millionth Gala/, S smartphone$ The mo"ile enterprise remains largel, untappe#

    as RIMBs grip has loosene#1 an# Samsung clearl, has the #istri"ution an# the carrier

    partners to take a#!antage$ To *ull, capitali;e on the opportunit,1 though1 Samsung

    shoul# #eli!er *our ke, items

    A uni*ie# An#roi# e/perience$ The *ragmentation pro"lems ith An#roi# are

    ell-#ocumente# 9I e/plaine# h, I a"an#one# the plat*orm last ,ear here :1

    an# those pro"lems are onl, getting orse as the orl# i#e penetration o*

    GoogleBs operating s,stem increases$ To make its line o* An#roi# #e!ices

    attracti!e to enterprise users an# IT #epartments1 then1 Samsung ill ha!e to

    #eli!er the same e/perience across its enterprise-centric #e!ices1 issuing

    An#roi# up#ates to as man, o* its #e!ices as it can as Luickl, as possi"le$ A store *or An#roi# enterprise apps$ Google recentl, intro#uce# a ser!ice that

    essentiall, ena"les Google Apps customers to create their o n internal

    stores to pu"lish an# #istri"ute their enterprise apps$ +ut as In*o2orl# points

    out1 the ne o**ering has some shortcomings +usinesses can ha!e onl, onestore regar#less o* ho man, #omains the, ha!e in their Google Apps

    account1 an# the, canBt pu"lish apps to speci*ic groups o* users$ Mean hile1

    Samsung has seen some success #istri"uting consumer apps *or its o n

    +a#a plat*orm E hile Samsung Apps #oesnBt get much attention in the U$S$1

    it #eli!ere# its %66 millionth #o nloa# nearl, t o ,ears ago$ Samsung coul#

    le!erage that e/perience an# impro!e on GoogleBs shortcomings to help

    !

    http://www.ibtimes.co.uk/articles/416666/20121219/samsung-tops-mobile-phone-market-2012-nokia.htmhttp://www.inquisitr.com/480522/samsung-galaxy-s-smartphones-topple-100-million-sales/http://pro.gigaom.com/blog/why-androids-openness-could-cause-real-trouble-for-google/http://bgr.com/2012/10/08/android-analysis-fragmentation-growing-worse/http://googleenterprise.blogspot.com/2012/12/a-new-way-to-distribute-your-internal.htmlhttp://googleenterprise.blogspot.com/2012/12/a-new-way-to-distribute-your-internal.htmlhttp://www.infoworld.com/t/e-commerce/google-adds-enterprise-app-store-option-android-208540http://www.infoworld.com/t/e-commerce/google-adds-enterprise-app-store-option-android-208540http://venturebeat.com/2011/03/24/samsung-app-store-100m/http://www.ibtimes.co.uk/articles/416666/20121219/samsung-tops-mobile-phone-market-2012-nokia.htmhttp://www.inquisitr.com/480522/samsung-galaxy-s-smartphones-topple-100-million-sales/http://pro.gigaom.com/blog/why-androids-openness-could-cause-real-trouble-for-google/http://bgr.com/2012/10/08/android-analysis-fragmentation-growing-worse/http://googleenterprise.blogspot.com/2012/12/a-new-way-to-distribute-your-internal.htmlhttp://googleenterprise.blogspot.com/2012/12/a-new-way-to-distribute-your-internal.htmlhttp://www.infoworld.com/t/e-commerce/google-adds-enterprise-app-store-option-android-208540http://www.infoworld.com/t/e-commerce/google-adds-enterprise-app-store-option-android-208540http://venturebeat.com/2011/03/24/samsung-app-store-100m/
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    1.# Strategic marketing O"$ecti%es & S'OT Ana!(sis of SAMS)N* To impro!e the sell o* all "ran#s o* the compan, *rom 33> to &6>$

    To create ne market #ri!en strateg, an# also create !alua"le #esign *or their

    customer$

    1.#.1 Segmentation strategies

    Samsung 8lectronics 9Mo"ile

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    an# it shares the highest cell phone customers ith Nokia in In#ia$ It has

    something *or e!er,one$

    EMO*,A-HIC

    Samsung has mo"ile phones *or ,outh1 age o* %7-=&1 *or "usinessmen etc$ *or

    mi##leclass ,outh it has Samsung Guru hich is *or go!t$ lo er class orkers

    also$ Guru has man, !ariants? it is coming in 'G also$ It is a goo# option i* ,ou

    ant to get a cheap 'G han#set$ Samsung Gala/, is a goo# option *or ,outh

    as it has man, attracti!e *eatures as 2i-4i1 'G$ Gala/, is also *or

    +usinessmen$

    Samsung has partnere# ith IT in#ustr, lea#ers to "ring ,ou the most

    rele!ant enterprise solutions an# the most comprehensi!e mo"ile

    implementation o* 8/change Acti!eS,nc$

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    struggling to sta, rele!ant an# losing large market share to the ne lea#ers$

    +oth are no at the !irtual "ottom looking up$

    This ill look at the state o* the market1 the le!el o* competition amongst the

    ma or pla,ers1 the relati!e competiti!e a#!antages each ma, possess1strategic alliances *orme#1 an# seek to #etermine hich is in the "est position

    presentl, to #ominate the smartphone market mo!ing *or ar#$

    1.#.3 -ricing strateg(

    Marketing - Pricing approaches an# strategies

    There are three main approaches a "usiness takes to setting price

    Cost-"ase# pricing price is #etermine# ", a##ing a pro*it element ontop o* the cost o* making the pro#uct$

    Customer-"ase# pricing here prices are #etermine# ", hat a *irm"elie!es customers ill "e prepare# to pa,

    Competitor-"ase# pricing here competitor prices are the mainin*luence on the price set

    Approaches?

    Cost "ase# pricingThis in!ol!es setting a price ", a##ing a *i/e# amount or percentage to thecost o* making or "u,ing the pro#uct$ In some a,s this is Luite an ol#-*ashione# an# some hat #iscre#ite# pricing strateg,1 although it is still i#el,use#$

    A*ter all1 customers are not too "othere# hat it cost to make the pro#uct Ethe, are intereste# in hat !alue the pro#uct pro!i#es them$Cost-plus 9or mark-upJ: pricing is i#el, use# in retailing1 here the retailer

    ants to kno ith some certaint, hat the gross pro*it margin o* each saleill "e$ An a#!antage o* this approach is that the "usiness ill kno that its

    costs are "eing co!ere#$ The main #isa#!antage is that cost-plus pricing ma,lea# to pro#ucts that are price# un-competiti!el,$Here is an e/ample o* cost-plus pricing1 here a "usiness ishes to ensurethat it makes an a##itional 36 o* pro*it on top o* the unit cost o* pro#uction$

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    U#$% &' % 1""

    M*+,-./ 5"0

    S $# /+$& 15"

    Ho high shoul# the mark-up percentage "eK That largel, #epen#s on the normalcompetiti!e practice in a market an# also hether the resulting price is accepta"le tocustomers$

    Customer-"ase# pricing

    Penetration pricingYou o*ten see the tagline special intro#uctor, o**erJ E the classic sign o* penetrationpricing$ The aim o*penetration pricing is usuall, to increase market share o* apro#uct1 pro!i#ing the opportunit, to increase price once this o" ecti!e has "eenachie!e#$Penetration pricing is the pricing techniLue o* setting a relati!el, lo initial entr,price1 usuall, lo er than the inten#e# esta"lishe# price1 to attract ne customers$The strateg, aims to encourage customers to s itch to the ne pro#uct "ecause o*the lo er price$Penetration pricing is most commonl, associate# ith a marketing o" ecti!e o*increasing market share or sales !olume$ In the short term1 penetration pricing islikel, to result in lo er pro*its than oul# "e the case i* price ere set higher$Ho e!er1 there are some signi*icant "ene*its to long-term pro*ita"ilit, o* ha!ing ahigher market share1 so the pricing strateg, can o*ten "e usti*ie#$Penetration pricing is o*ten use# to support the launch o* a ne pro#uct1 an# orks"est hen a pro#uct enters a market ith relati!el, little pro#uct #i**erentiation an#

    here #eman# is price elastic E so a lo er price than ri!al pro#ucts is a competiti!eeapon$

    Price skimmingSkimming in!ol!es setting a high price "e*ore other competitors come into themarket$ This is o*ten use# *or the launch o* a ne pro#uct hich *aces little or nocompetition E usuall, #ue to some technological *eatures$ Such pro#ucts are o*ten"ought ", earl, a#optersJ ho are prepare# to pa, a higher price to ha!e the latest

    or "est pro#uct in the market$Goo# e/amples o* price skimming inclu#e inno!ati!e electronic pro#ucts1 such asthe Apple iPa# an# Son, Pla,Station '$There are some other pro"lems an# challenges ith this approachPrice skimming as a strateg, cannot last *or long1 as competitors soon launch ri!alpro#ucts hich put pressure on the price 9e$g$ the launch o* ri!al pro#ucts to theiPhone or iPo#:$

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    Pro#uct promotion is one o* the necessities *or getting ,our "ran# in *ront o* the

    pu"lic an# attracting ne customers$ There are numerous a,s to promote a

    pro#uct or ser!ice$ Some companies use more than one metho#1 hile others ma,

    use #i**erent metho#s *or #i**erent marketing purposes$ Regar#less o* ,our

    compan,)s pro#uct or ser!ice1 a strong set o* promotional strategies can help

    position ,our compan, in a *a!ora"le light ith not onl, current customers "ut ne

    ones as ell$

    Contests :

    Contests are a *reLuentl, use# promotional strateg,$ Man, contests #on)t e!en

    reLuire a purchase$ The i#ea is to promote ,our "ran# an# put ,our logo an# name

    in *ront o* the pu"lic rather than make mone, through a har#-sell campaign$ People

    like to in pri;es$ Sponsoring contests can "ring attention to ,our pro#uct ithout

    compan, o!ertness$

    Social Media :

    Social me#ia e"sites such as 4ace"ook an# Google o**er companies a a, to

    promote pro#ucts an# ser!ices in a more rela/e# en!ironment$ This is #irect

    marketing at its "est$ Social net orks connect ith a orl# o* potential customers

    that can !ie ,our compan, *rom a #i**erent perspecti!e$ Rather than seeing ,our

    compan, as tr,ing to sell something1 the social net ork can see a compan, that is

    in touch ith people on a more personal le!el$ This can help lessen the #i!i#e

    "et een the compan, an# the "u,er1 hich in turn presents a more appealing an#

    *amiliar image o* the compan,$

    Mail Order Marketing:

    Customers ho come into ,our "usiness are not to "e o!erlooke#$ These customers

    ha!e alrea#, #eci#e# to purchase ,our pro#uct$ 2hat can "e help*ul is getting

    personal in*ormation *rom these customers$ O**er a *ree pro#uct or ser!ice in

    e/change *or the in*ormation$ These are customers ho are alrea#, *amiliar ith

    ,our compan, an# represent the target au#ience ,ou ant to market ,our ne

    pro#ucts to$

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    Product Giveaways:

    Pro#uct gi!ea a,s an# allo ing potential customers to sample a pro#uct are

    metho#s use# o*ten ", companies to intro#uce ne *oo# an# househol# pro#ucts$

    Man, o* these companies sponsor in-store promotions1 gi!ing a a, pro#uct samples

    to entice the "u,ing pu"lic into tr,ing ne pro#ucts$

    Point-of-Sale Promotion and End-Cap Marketing:

    Point-o*-sale an# en#-cap marketing are a,s o* selling pro#uct an# promoting items

    in stores$ The i#ea "ehin# this promotional strateg, is con!enience an# impulse$ The

    en# cap1 hich sits at the en# o* aisles in grocer, stores1 *eatures pro#ucts a store

    ants to promote or mo!e Luickl,$ This pro#uct is positione# so it is easil,

    accessi"le to the customer$ Point-o*-sale is a a, to promote ne pro#ucts or

    pro#ucts a store nee#s to mo!e$ These items are place# near the checkout in the

    store an# are o*ten purchase# ", consumers on impulse as the, ait to "e checke#

    out$

    Customer Referral ncentive Program:

    The customer re*erral incenti!e program is a a, to encourage current customers to

    re*er ne customers to ,our store$ 4ree pro#ucts1 "ig #iscounts an# cash re ar#s

    are some o* the incenti!es ,ou can use$ This is a promotional strateg, that le!erages

    ,our customer "ase as a sales *orce$

    Causes and C!arity:

    Promoting ,our pro#ucts hile supporting a cause can "e an e**ecti!e promotional

    strateg,$ Gi!ing customers a sense o* "eing a part o* something larger simpl, ",using pro#ucts the, might use an, a, creates a in in situation$ You get the

    customers an# the sociall, conscious image? customers get a pro#uct the, can use

    an# the sense o* helping a cause$ One a, to #o this is to gi!e a percentage o*

    pro#uct pro*it to the cause ,our compan, has committe# to helping$

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    "randed Promotional Gifts:

    Gi!ing a a, *unctional "ran#e# gi*ts can "e a more e**ecti!e promotional mo!e than

    han#ing out simple "usiness car#s$ Put ,our "usiness car# on a magnet1 ink pen or

    ke, chain$ These are gi*ts ,ou can gi!e ,our customers that the, ma, use1 hich

    keeps ,our "usiness in plain sight rather than in the trash or in a #ra er ith other

    "usiness car#s the customer ma, not look at$

    1.#.0 C anne! Strategies

    A #istri"ution channel strateg, ena"les ,ou to sell to customers in geographical

    areas or market sectors that ,our #irect sales team cannot reach$ You can choose

    *rom a num"er o* #istri"ution channels1 inclu#ing holesalers1 retailers1 #istri"utors

    an# the Internet$ 8ach channel gi!es ,ou #i**erent options *or #ealing ith customers

    an# prospects$ Ho e!er1 to ensure that ,our #istri"utors operate e**ecti!el, on ,our

    "ehal*1 ,our strateg, must incorporate the right le!el o* control an# support$

    Reach

    I* ,our strateg, is to gro ,our "usiness regionall, or nationall,1 highlight the

    geographical areas ,ou ant to reach through a #istri"ution channel an# i#enti*, a

    net ork o* #istri"utors or retailers that pro!i#e e/isting co!erage o* the territories$ I*

    ,ou are planning to e/port pro#ucts1 *ocus on esta"lishe# #istri"utors ith #etaile#

    local market kno le#ge$ Consi#er marketing ,our pro#ucts on the Internet so that

    ,ou can e/ten# co!erage to customers here there is no suita"le ph,sical

    #istri"ution net ork$

    Cost

    Although a #istri"ution strateg, gi!es ,ou a rea#,-ma#e plat*orm *or e/pansion1 itBs

    important to compare the cost o* #ealing through in#irect #istri"ution channels ith

    the cost o* setting up ,our o n net ork or #irect sales operation$ 2ithout a

    #istri"ution net ork1 ,ou ill ha!e to commit resources to or#er processing1

    stockhol#ing1 #eli!er,1 in!oicing an# customer ser!ice$ Compare that ith the lo er

    1

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    margins ,ou ill make ", gi!ing #istri"utors a #iscount *or pro!i#ing a similar le!el o*

    ser!ice an# pro!i#ing them ith a program o* marketing an# training support$

    Contribution

    Your strateg, shoul# also take account o* the potential contri"ution o* each

    #istri"ution channel$ Concentrate on orking ith #istri"utors that gi!e ,ou access to

    an a##itional customer "ase1 ith no a##itional #irect sales an# marketing costs$

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    1.#. S'OT Ana!(sis

    S2OT

    Samsung S'OT ana!(sis 2 13

    Strengths 2eaknesses

    %$ Har# are integration ith

    man, open source OS an#

    so*t are

    =$ 8/cellence in engineering

    an# pro#ucing har# are

    parts an# consumer

    electronics

    '$ Inno!ation an# #esign

    $ 4ocus on en!ironment

    3$ .o pro#uction costs

    7$ .argest share in mo"ile

    phones an# = place in

    smartphones sales5$ A"ilit, to market the "ran#

    %$ Patent in*ringement

    =$ Too lo pro*it margin

    '$ Main competitors are also

    largest "u,ers

    $ .ack its o n OS an#

    so*t are

    3$ 4ocus on too man, pro#ucts

    Opportunities Threats

    %$ Gro ing smartphone

    market

    =$ Gro ing mo"ile a#!ertising

    in#ustr,'$ Gro ing #eman# *or Lualit,

    application processors

    $ Gro th o* ta"lets market

    3$ O"taining patents through

    acLuisitions

    %$ Saturate# smartphone

    markets in #e!elope#

    countries

    =$ Rapi# technological change'$

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    so*t are an# OS$ This gi!es Samsung pro#ucts an e#ge o!er AppleBs 9its

    arch ri!al: #e!ices1 especiall, as An#roi# an# other OS are gaining market

    share hen iOS an# OS Q are losing it$

    =$ E4ce!!ence in engineering and producing ard are parts and consumer

    e!ectronics. Samsung is the num"er % ", market share in tele!isions an#

    mo"ile phones sales an# some o* the har# are parts 9processors1 memor,

    chips1 etc$:$ This as largel, achie!e# #ue to e/cellence in engineering an#

    "oth e**icient an# e**ecti!e pro#uction$

    '$ Inno%ation and design. In =6%%1 Samsung ranke# secon# on the list o* US

    top patent assignees$ More patents strengthen Samsung position among its

    competitors$ The *irm also on man, a ar#s *or the #esign o* its pro#ucts1

    pro!ing the superior a#!anatage o!er the competitors$

    $ 5ocus on en%ironment. Samsung *ocuses on pro#ucing en!ironment *rien#l,

    pro#ucts that are *ree *rom P@C an# +4Rs 9currentl, onl, MP' an# mo"ile

    phones:$ It also #e!elops !arious rec,cling programs that are a ar#e# *or

    their success$ Thus1 SamsungBs *ocus on en!ironment gi!es it an e#ge o!er

    its competitors in the e,es o* its customers$

    3$ 6o production costs. The compan, has set up its pro#uction *acilities in

    lo cost countries$ This allo s pro#ucing goo#s ith lo pro#uction cost an#

    "ene*it Samsung as it can o**er lo er price an# earn higher margins$

    7$ 6argest s are in mo"i!e p ones and 2 p!ace in smartp ones sa!es in t e

    or!d. Samsung 8lectronics ha!e achie!e# large market share in man,

    pro#ucts the, sell1 especiall, in mo"ile phones1 smartphones1 semicon#uctors

    an# tele!ision sets$ .arge market share has its a#!antage1 "argaining po er1

    that Samsung can use to *urther re#uce costs an# #eman# *or "etter contract

    con#itions$5$ A"i!it( to market t e "rand. Samsung is name# as top rising "ran# ",

    Inter"ran# an# is the &th most !alua"le "ran# ith !alue nearl, F'' "illion$ It

    has risen ", 6> *rom =6%% to =6%=$ This as mainl, achie!e# #ue to

    compan,Bs a"ilit, to market the "ran# in sporting e!ents an# social

    contri"utions$

    2eaknesses

    21

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    %$ -atent infringement. Samsung is in*ringing AppleBs an# some other *irmsB

    patents1 thus1 #amaging its reputation an# ha!ing to pa, a huge amount o*

    mone, in #amages$

    =$ Too !o profit margin. Samsung 8lectronics is the largest technolog,

    "usiness in the orl# in terms o* re!enues "ut it has a lo gross pro*it an# net

    pro*it margins$ Although its smartphones "usiness is Luite pro*ita"le1

    SamsungBs pro*it margin is lo #ue to its semicon#uctors sales an#

    aggressi!e price cuts$

    '$ Main competitors are a!so !argest "u(ers. Apple1 Son,1

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    '$ *ro ing demand for 8ua!it( app!ication processors. Samsung is one o*

    the ke, manu*acturers o* application processors *or smartphones an# ta"lets$

    The gro ing #eman# *or these pro#ucts reLuires more "est Lualit, application

    processors that onl, Samsung pro!i#e$

    $ *ro t of ta"!ets market. Ta"lets market is e/pecte# to gro in #ou"le

    #igits o!er the ne/t *e ,ears$ Samsung "usiness has a strong position in

    ta"lets market an# coul# e/pan# it ", intro#ucing ne er1 "etter Lualit, ta"let

    mo#els1 such as its current gala/, line$

    3$ O"taining patents t roug ac8uisitions. The ke, to SamsungBs competiti!e

    a#!antage is the large port*olio o* patents$ Patents can "e #isco!ere# ",

    engaging in costl, RD< or through acLuisitions o* other *irms$

    Threats

    %$ Saturated smartp one markets in de%e!oped countries. Smartphones

    market in the #e!elope# economies is saturate# an# the sales ill not "e

    gro ing at a high rate$

    =$ ,apid tec no!ogica! c ange. The serious threat that Samsung an# the other

    tech companies are *acing is a rapi# technological change$ Companies are

    un#er the pressure to release the ne pro#ucts *aster an# *aster$ The one

    that cannot keep up ith the competition soon *ails$ This is especiall, har#

    hen the "usiness ants to intro#uce something ne 1 inno!ati!e an#

    success*ul$

    '$ ec!ining margins on ard are production. Samsung is the secon#

    largest semicon#uctors pro#ucer here the pro*it margins are !er, thin1 thus

    eakening the hole compan,)s *igures$

    $ 9reac ed patents. Samsung 8lectronics has man, patents hich are o*ten

    use# ", its man, competitors$ Such situation makes it har# to *in# out hichcompanies "ene*it *rom SamsungBs technolog, "ut #o not pa, *or the rights to

    use it$

    3$ App!e7s iT: !aunc . AppleBs iT@ is the ne/t "ig lunch *rom Apple1 hich ma,

    hurt SamsungBs T@ sales$

    7$ -rice ars. Samsung has a !er, lo gross margin on man, o* its pro#ucts

    an# is alrea#, selling some o* them ith signi*icant price cuts$ Competitors

    23

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    Political 8n!iroment

    O!er the past se!eral ,ears1 there has seen a plethora o* patent la suits

    ithin the smartphone in#ustr,$ In the highl, competiti!e en!ironment1

    manu*acturers o* han#sets ha!e "een aggressi!e in protecting theirintellectual properties ", suing competitors ", claiming in*ringements on

    patents$ 4or e/ample1 in March =6%61 Apple sue# HTC *or allege#l, in*ringing

    on =6 Apple patents 92eil1 =6%6:$ Apple also sue# Nokia in =6%6 *or similar

    patent in*ringements9 Patent ars 1 =6%%:$ Ho e!er1 in April =6%% the

    International Tra#e Commission recommen#e# that neither HTC or Nokia

    shoul# "e *oun# lia"le *or an, in*ringements$ 4urther Microso*t reache# a

    licensing agreement in April =6%6 ith HTC to pa, ro,alties on An#roi# "ase#

    han#sets 9 Patent ars 1 =6%%:$ More recentl,1 Apple launche# a la suit

    against Samsung in April =6%% claiming Samsung copie# #esign *eatures o*

    the iPhone in its Gala/, line o* An#roi# phones 9 uigle,1 =6%%:$ These are

    ust a *e e/amples o* legal challenges *ace# ", smartphone manu*acturers$

    Mentioning all la suits in the past se!eral ,ears is "e,on# the scope o* this

    anal,sis1 "ut it is important to recogni;e that manu*acturers are using their

    patent port*olio)s to make it more #i**icult *or their competitors to gain larger

    market shares$ 8!en i* the ma orit, o* cases are *oun# to "e )#u"ious)1 the

    costs associate# ith legal "attles can hamper or slo #o n the release o*

    ne han#sets an# hence making it more #i**icult *or the manu*acturer to sta,

    competiti!e$

    8conomic 8n!iroment

    The North American econom, is still reco!ering *rom the *inancial crisis o*

    =66($ Ma or *actors to consi#er are the unemplo,ment rates1 consumer

    spen#ing$ In Septem"er =6%% the unemplo,ment rate in the US as &$%>

    hich is ell a"o!e the national a!erage o* 3$5> "et een %& ( an# =6%6

    9 Unite# States Unemplo,ment :$ The current high unemplo,ment rate in the

    US is likel, ha!ing an impact on re#ucing smartphone sales$ A &$%>

    unemplo,ment rate represents appro/imatel, =( million Americans out o*

    ork$ In Cana#a1 the unemplo,ment rate in Septem"er =6%% as 5$%> hich

    represents its lo est point since

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    Since anuar, =6%61 Cana#a has "een e/periencing a #o n ar# tren# in

    unemplo,ment 9 Cana#a Unemplo,ment :$

    The high unemplo,ment rate in the US has "een negati!el, impacting

    consumer con*i#ence an# has resulte# in a #ecrease in consumer spen#ing$

    +loom"erg reports consumer spen#ing #roppe# 6$=> in une =6%% hich

    pro!i#es e!i#ence the #ecrease in hiring an# age increases "elo the

    in*lation rate are a**ecting consumer spen#ing 9Chan#ra1 =6%%:$ Consumer

    spen#ing accounts *or 56> o* the US econom, 9Chan#ra1 =6%%:? an,

    *luctuation in this area ill ha!e a signi*icant impact on the o!erall econom,$

    In Cana#a1 the opposite is true$ Consumer spen#ing increase# ", '$(> *rom

    %st Luarter =6%6 to the en# o* %st Luarter =6%% 9 Cana#ian Consumer

    Spen#ing :$ Consumer con*i#ence is Cana#a seems to "e higher than the US

    likel, resulting *rom lo er unemplo,ment rates an# Cana#a)s *aster pace#

    reco!er, *rom the glo"al *inancial crisis$

    Social cultural 8n!iroment

    The rise o* the in*ormation age has ma#e telecommunication more important

    *or "oth "usiness an# pleasure$ It is important to #etermine ho recepti!e a

    societ, is to ne a#!ancements in technolog,1 particularl, smartphone

    a#option in this case$ +, measuring smartphone a#option ", age

    #emographics1 a "etter un#erstan#ing o* ho the primar, target groups can

    "e gaine#$ Insights into ho #i**erent groups o* smartphone users use their

    #e!ices can pro!i#e insights into ne *eatures or impro!ements in esta"lishe#

    *eatures$

    At the en# o* =6%61 there ere 7'$= million smartphone su"scri"ers in the US

    9comScore Inc1 =6%%:$ The a#option rate has "een increasing annuall,? in

    9comScore Inc1 =6%%:$ +,

    March =6%%1 '=$=> o* Americans a#opte# a smartphone ;ref 2 o!er a one ,ear perio# along ith o!er a 3> increase *rom

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    ne smartphone technologies resulting in rapi# market e/pansion$ +reaking

    a#option #o n into #emographic groups1 %=$7> o!er the age o* 331 %7$5>

    age# %( to = 1 an# =5$=> age# =3-' o ne# a smartphone in

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    8conomic 8n!iroment 9 Natural:

    1.= 5I:E 5O,CES Mode!

    The threat o* potential ne entrants 9.o :

    High capital is reLuire# to enter into the mo"ile in#ustr,$ It is #i**icult to start up in an

    in#ustr, here the e/isting *irms alrea#, operate on cost an# #i**erentiation

    strategies 9Chan et al1 =6%%1 p$%=:$ Ho e!er1 ith the commo#iti;ation o* parts1

    *in#ing !anilla solutions *or a simple alternati!e pro#uct might "e possi"le$

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    capa"ilities1 hich makes them ina#eLuate$ .aptops ha!e the same pro"lem$ P

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    ne phone "e*ore the en# o* the contract1 the, ill nee# to pa, *ull price *or it1

    assuming their carrier e!en allo s a non-contract purchase 9 hich is not the case *or

    high-en# smart phones in Cana#a:$

    The "argaining po er o* suppliers 9.o :

    In SamsungBs case1 the "argaining po er o* suppliers is lo "ecause Samsung is its

    o n supplier o* most components$ Samsung also happens to "e its o n supplier *or

    ra materials$

    In the in#ustr,1 ho e!er1 the "argaining po er o* suppliers is high "ecause

    suppliersB goo#s are critical to the "u,ersB marketplace success 9Hu!ar# et al1 =6%%1

    p$(:$ This means the, are more important to the consumers than the mo"ile carriers

    themsel!es$ A mo"ile phone manu*acturer coul# al a,s integrate *or ar# into the

    in#ustr, ithout the mi##lemen such as Rogers1 +ell or Telus$ 9In *act1 Samsung has

    alrea#, #one this ithin 0orea---source:$

    Presence o* su"stitute inputs none

    The intensit, o* competiti!e ri!alr, 9High:

    The smart phone in#ustr, has man, competitors that are eLuall, "alance#1 an# thus

    ri!alr, is high$ The market *or smart phones has slo e# in gro th since its "oom1 so

    pressure to take customers *rom competitors is also high$ SAMS)N* Mo"i!e Segmentation

    3"

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    Samsung 8lectronics 9Mo"ile

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    Samsung has mo"ile phones *or ,outh1 age o* %7-=&1 *or "usinessmen etc$ *or

    mi##leclass ,outh it has Samsung Guru hich is *or go!t$ lo er class orkers also$

    Guru has man, !ariants? it is coming in 'G also$ It is a goo# option i* ,ou ant to get

    a cheap 'G han#set$ Samsung Gala/, is a goo# option *or ,outh as it has man,

    attracti!e *eatures as 2i-4i1 'G$ Gala/, is also *or +usinessmen$

    Samsung has partnere# ith IT in#ustr, lea#ers to "ring ,ou the most rele!ant

    enterprise solutions an# the most comprehensi!e mo"ile implementation o*

    8/change Acti!eS,nc$

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    -OSITIONIN*+

    Positioning is a"out the customer perception a"out the "ran# as "eing #i**erent *rom

    the other "ran#s on speci*ic #imension inclu#ing pro#uct attri"utes$

    The strategies a#opte# ", Samsung to position itsel* in the Mo"ile Phone market

    are as *ollo s

    It *ocuses more on the real margin hich comes *rom mi#-to-high-

    en# segments Samsung Concept Store

    Market making D categor, creation in small to ns 2i#er Care Net ork

    Access to Samsung care line

    Pioneering in the 'G segment o* mo"ile phones$

    +ran#e# itsel* as a s,non,m *or Lualit,$

    Create# a UniLue +ran# Image *or itsel* as a high en# !alue

    #ri!en "ran#$

    1.? SAMS)N* 5uture Action -!ans

    Samsung ill launche# storage technolog, aime# at replacing computer har#

    #isk #ri!es as it targets the rapi#l, e/pan#ing memor, #e!ices market to o**set

    slo ing sales gro th *or smartphone memor, chips$

    Samsung is the orl#)s top maker o* the NAN< *lash memor, chips commonl, use#

    in smartphones an# soli# state #ri!es1 or SS

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    per cent in =6%%1 as smartphone sales gro th starts to ane$

    SS

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    U8STION =

    =$%Introduction Samsung7s Main Competitors & S'OT Ana!(sis

    Introduction

    Competitor Anal,sis is an important part o* the strategic planning process$ This

    re!ision note outlines the main role o*1 an# steps in1 competitor anal,sis

    ' ( "ot er to ana!(se competitors@

    Some "usinesses think it is "est to get on ith their o n plans an# ignore the

    competition$ Others "ecome o"sesse# ith tracking the actions o* competitors 9o*ten

    using un#erhan# or illegal metho#s:$ Man, "usinesses are happ, simpl, to track the

    competition1 cop,ing their mo!es an# reacting to changes$

    Competitor anal,sis has se!eral important roles in strategic planning

    V To help management un#erstan# their competiti!e a#!antages #isa#!antages

    relati!e to competitors

    V To generate un#erstan#ing o* competitorsB past1 present 9an# most importantl,:

    *uture strategies

    V To pro!i#e an in*orme# "asis to #e!elop strategies to achie!e competiti!e

    a#!antage in the *uture

    V To help *orecast the returns that ma, "e ma#e *rom *uture in!estments 9e$g$ ho

    ill competitors respon# to a ne pro#uct or pricing strateg,K

    uestions to ask

    2hat Luestions shoul# "e aske# hen un#ertaking competitor anal,sisK The*ollo ing is a use*ul list to "ear in min#

    V 2ho are our competitorsK 9see the section on i#enti*,ing competitors *urther "elo :

    V 2hat threats #o the, poseK

    V 2hat is the pro*ile o* our competitorsK

    V 2hat are the o" ecti!es o* our competitorsK

    V 2hat strategies are our competitors pursuing an# ho success*ul are these

    strategiesK

    35

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    V 2hat are the strengths an# eaknesses o* our competitorsK

    V Ho are our competitors likel, to respon# to an, changes to the a, e #o

    "usinessK

    Sources of information for competitor ana!(sis

    gro th an#

    "ecame the secon# largest mo"ile #e!ice manu*acturer in the orl# Its market shareas % > in =6651 gro ing up *orm %%$'> in =667$ At the en# o* No!em"er

    =6%%1 Samsung sol# more than '66 million mo"ile #e!ices hich as a close

    secon# a*ter Nokia ith '66$7 million mo"ile #e!ices sol# in the *irst three Luarter o*

    =6%%$ As o* ' =6%=1 Samsung is the largest manu*acturer o* #e!ices

    running Google An#roi# ith a 7> market share$

    36

    http://en.wikipedia.org/wiki/Samsung_Electronicshttp://en.wikipedia.org/wiki/Samsung_Electronicshttp://en.wikipedia.org/wiki/Samsung_Grouphttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/MP3http://en.wikipedia.org/wiki/Laptophttp://en.wikipedia.org/wiki/Suwonhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Google_Androidhttp://en.wikipedia.org/wiki/Samsung_Electronicshttp://en.wikipedia.org/wiki/Samsung_Electronicshttp://en.wikipedia.org/wiki/Samsung_Grouphttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/MP3http://en.wikipedia.org/wiki/Laptophttp://en.wikipedia.org/wiki/Suwonhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Google_Android
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    Strong financia! performance ;B1 cas gross profit margin

    #3.?D and no de"t

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    ecreasing market s are. The less market share Apple has1 the less it

    can in*luence its potential customers an# persua#e them to ump into using

    AppleBs close# ecos,stem pro#ucts$

    -atent infringements. The *irm is o*ten accuse# o* in*ringing other

    companiesB patents an# has e!en lost some trials$ This #amages Apple

    "ran# an# its *inancial situation$

    5urt er c anges in management. Apple has lost Ste!e o"s in =6%= an#

    Tim Cook "ecame the ne C8O$ Scott 4orstall an# ohn +ro ett 9chie* o*

    retail: le*t the compan, too an# this ill ha!e an impact on compan,Bs

    management1 hich1 as man, think1 ill "e negati!e$ efects of ne products. This is not current Apple eakness "ut one that

    umps out time to time$ Some o* AppleBs iPo# an# iPhone releases ha#

    clear *aults an# thus #istur"e# sales o* the pro#ucts an# *irmBs reputation o*

    superior pro#uct per*ormance$

    6ong term gross margin dec!ine. Current AppleBs gross margin is one o*

    the highest in the tech in#ustr, "ut anal,sts *ear that #ue to increasing

    component prices an# competition current margins ill not "e sustaine#$

    Hence1 glooming *irmBs *uture *inancial per*ormance$

    OPPORTUNITI8S Hig demand of i-ad mini and i- one 0. iPa# mini sales ill increase

    AppleBs market share in the ta"let market an#1 ill strengthen *irmBs

    competiti!e a#!antage$ iT: !aunc . iT@ launch ill support Apple T@ sales an# the pro#uctsB

    ecos,stem$

    Emergence of t e ne pro%ider of app!ication processors. Samsung1 the

    main AppleBs competitor1 is also the onl, pro!i#er o* application processors *or

    AppleBs pro#ucts$ Apple has to *in# a ne source *or the component "ut coul#

    not *in# a suita"le one ,et$ Nonetheless1 ne manu*acturers ith superiorengineering capa"ilities are arising an# itBs ust a matter o* time1 hen Apple

    3!

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    ill sei;e upon the opportunit, o* "eing less #epen#ent on its #irect

    competitors$

    *ro t of ta"!et and smartp one markets. Gro th o* ta"let an#

    smartphone markets is a goo# opportunit, to e/pan# *irmBs share in these

    markets$ O"taining patents t roug ac8uisitions. Apple lacks o* some patents to

    sustain its gro th an# the "est a, to acLuire those patents is to acLuire the

    *irms hol#ing them$ In a##ition1 Apple coul# #e!elop ne skills an#

    competencies$

    amages from patent infringements. Apple patents are o*ten in*ringe# ",

    its competitors$ Thus1 collecting the #amages *rom the companies that #o so

    is a !ia"le opportunit, to not onl, increase the cash reser!es "ut to #amage

    the competitorBs reputation an# sales as ell$

    Strong gro t of mo"i!e ad%ertising market. Apple has #e!elope# iA#

    a#!ertising plat*orm1 hich allo s a#!ertising on Apple iPhone1 iPa# an# iPo#touch$ The gro th o* mo"ile a#!ertising market is an opportunit, hich coul#

    "e *urther sei;e# upon$

    Increasing demand for c!oud "ased ser%ices. Apple coul# e/pan# its range

    o* iClou# ser!ices an# so*t are as the #eman# *or clou#-"ase# ser!ices is

    e/pan#ing$

    THR8ATS

    ,apid tec no!ogica! c ange. One o* the most se!ere threats Apple an# the

    other tech companies are *acing is rapi# technological change$ Companies

    are un#er the pressure to release ne pro#ucts *aster an# *aster$ The one

    that cannot keep up ith the competition soon *ails$ This is especiall, har#

    hen a "usiness ants to intro#uce something ne 1 inno!ati!e an#

    success*ul$ Apple as a"le to "ring !er, inno!ati!e pro#ucts to the market so

    4"

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    *ar "ut *or the moment1 e!en Apple hasnBt un!eile# an, plans *or the ne

    pro#ucts 9e/cept iT@: an# ma, lack ne intro#uctions to keep up ith

    competition$

    2 13 ta4 increases. Ta/ increases in USA in =6%' ill negati!el, a**ect Apple$

    ,ising pa( !e%e!s for 5o4conn orkers. Pa, le!els *or 4o/connBs orkers

    alrea#, rose ' times *rom =6%6 to =6%=$ 4o/conn is the main manu*acturer o*

    Apple pro#ucts an# the rising pa, le!el *or 4o/connBs orkers ill likel, raise

    the prices *or Apple pro#ucts$ 9reac ed I- rig ts. The companies that "reach Apple patents might not "e

    #isco!ere# soon an# ma, "ene*it *rom it1 hile eakening Apple at the sametime$

    -rice pressure from Samsung o%er ke( components. Samsung has

    alrea#, aske# Apple to pa, higher price *or its application processors$

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    Motorola e/iste# as strong competitor in the market "ecause o* ha!ing strong

    alliance1acLuisitions an# mergers$

    'eaknesses An out-#ate# management st,le o* Motorola is one o* the eaknesses as it

    can e**ect important #ecisions relate# to compan, operations$ ualit, o* the pro#uct is not up to the mark hen compare# to its

    competitors$ Customer ser!ice is one o* the "iggest eaknesses1 man, complaints

    registere# sa,ing that e/ecuti!es #oesnBt react a*ter the saleJ$

    Opportunities Ne !entures1 "usiness partners an# alliances can increase the #ealings o*

    Motorola$ Intro#ucing ne pro#uct categories into market can make Motorola more

    competiti!e$

    T reats All other competitors like Nokia1 Samsung are pro!i#ing high Lualit, pro#ucts

    at lo prices$ Net ork eLuipments 9semi-con#uctor: "usiness is gra#uall, #ecreasing *rom

    past *e ,ears$

    =$%$'NOFIA S'OT ANA6/SIS

    STR8NGHTS

    Nokia has largest net ork o* #istri"ution an# selling as compare# to other mo"ile

    phone compan, in the orl#$ It is "acke# ith the highl, Lualit, an# pro*essional

    team in HR< #epartment$ The *inancial aspect is !er, strong in case o* Nokia as it

    has man, more pro*ita"le "usiness$ The pro#uct "eing user *rien#l, an# ha!e all the

    accessories one ant that is h, is in great #eman# making it No-% selling mo"ile

    phones in the orl#$ 2i#e range o* pro#ucts *or all class$ The re-sell !alue o* Nokia

    phone are high compare# to other compan,Bs pro#uct$

    28A0N8SS

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    Some o* the pro#ucts eakness o* Nokia is the price selling ", the compan, are

    Luite high$ Some o* the pro#ucts are not user *rien#l,$ Not concern a"out the lo er

    class o* the societ, people$

    OPPORTUNITI8S

    Nokia has ample o* opportunit, to e/pan# its "usiness$ 2ith the i#e range in

    pro#ucts1 *eatures an# #i**erent price range *or #i**erent people1 it has an a#!antage

    o!er competitors aroun#$

    THR8ATS

    Nokia has man, threat to tackle to maintain its position as market lea#er$ The threats

    like emerging o* other mo"ile companies in the market$ The companies like

    Motorola1 Son, 8riksson1 alcatel etc$ these companies ha!e come into the stan#ar#

    on its o n an# stan# o* tough competition ith Nokia in the *iel# o* Mo"ile carriers$

    Threats can "e like cheap phones1 ne *eatures1 ne st,le an# t,pe1 goo# a*ter

    sales ser!ice etc$ Nokia has to keep in min# the gro ing competition aroun#$ Nokia

    has to make strategies to tackle pro"lems in the present an# the near *uture1 The

    gro ing #eman# o* high-spee# net ork can cause #rop in sales *or Nokia1 as Nokia

    pro!i#e man, less C

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    ualit, o* the pro#uct is not up to the mark hen compare# to its

    competitors$ Customer ser!ice is one o* the "iggest eaknesses1 man, complaints

    registere# sa,ing that e/ecuti!es #oesnBt react a*ter the saleJ$ Opportunities

    Ne !entures1 "usiness partners an# alliances can increase the #ealings o*

    Motorola$ Intro#ucing ne pro#uct categories into market can make Motorola more

    competiti!e$

    T reats All other competitors like Nokia1 Samsung are pro!i#ing high Lualit, pro#ucts

    at lo prices$ Net ork eLuipments 9semi-con#uctor: "usiness is gra#uall, #ecreasing *rom

    past *e ,ears$

    =$%$3 RIM +.AC0+8RRY S2OT ANA.YSIS

    %$ Hig !( secure p ones. The primar, RIMBs competiti!e a#!antage is its !er,

    secure mo"ile phones$ The compan, release# its phones ith secure

    encr,pte# net ork that allo e# sen#ing emails "et een phones ithout

    possi"ilit, o* stealing the in*ormation$ This "ecame the USP 9uniLue selling

    proposition: o* +lack"erries an# as a !er, attracti!e *eature *or corporates

    an# go!ernments that other phones #i#nBt ha!e$ As a result1 +lack+err,

    "ecame no$% choice *or enterprises an# go!ernments$

    =$ Strong focus on narro customer segment. Unlike other mo"ile phones

    an# smartphones companies1 +lack+err, tries to appeal *or a narro

    customer segment E go!ernments an# corporates$ The result is a more

    *ocuse# approach to satis*,ing the nee#s o* this narro segment1 something

    that other "usinesses rarel, #o$

    2eaknesses

    %$ Ina"i!it( to market t e "rand. +lack+err,Bs "ran# as kno n *or the market

    long "e*ore AppleBs iPhone launch or SamsungBs Gala/, success$ 2hen the

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    iPhone as launche#1 RIM ha# a "etter Lualit, +lack+err, phone in the

    market1 en o,e# larger sales an# greater "ran# reputation "ut as una"le to

    "uil# on that #ue to poor marketing e**orts$ It spent an# continues to spen#

    signi*icantl, lo er amounts 9F %$' million: on marketing1 a"out %6 times lo er

    than Apple 9F 66 million: an# ( times lo er than Samsung 9F'' million: in

    =6%=1 accor#ing to CN8T$ 8!en ith "etter Lualit, pro#ucts1 the compan,

    oul# "e una"le to sellJ them to consumers as it oul# "e o!ersha#o e# ",

    SamsungBs an# AppleBs marketing spen#ing$

    Ina"ilit, to market the "ran# also resulte# in #eclining "ran# reputation an#

    lo customer lo,alt,$ Accor#ing to Inter"ran#1 +lack+err,Bs "ran# as one o*

    the top #eclining "ran#s in =6%= out o* the top %66 "est glo"al "ran#s$ It as

    !alue# lo er than AppleBs1 SamsungBs or NokiaBs "ran#s$

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    compete ith Apple or Samsung ho en o, signi*icant income an# pro*it

    gro th #ue to the ta"let sales$

    Opportunities

    %$ *ro t of ta"!et and smartp one markets. Ta"let market is e/pecte# to

    gro ", 36> annuall, *rom =6%% to =6%3$ Accor#ing to estimates1 it ill "e

    orth F%66 "illion ", the en# o* =6%3$ +lack+err, has a great opportunit, to

    strengthen its position in this *ast gro ing market an# capture larger market

    share$

    =$ Strong gro t of mo"i!e ad%ertising market. The gro th o* mo"ile

    a#!ertising market is an opportunit,1 hich coul# "e e/ploite# ", +lack+err,

    on its smartphones an# ta"lets$

    '$ Increasing demand of c!oud "ased ser%ices. Clou#-"ase# ser!ices market

    is e/pecte# to gro signi*icantl, until =6=6 an# reach F= 6 "illion orth$

    +lack+err, has an opportunit, to e/pan# its clou#-"ase# ser!ices an# "ene*it

    *rom the gro ing #eman#$

    $ O"taining patents t roug ac8uisitions. The ke, competiti!e a#!antage in

    technolog, sector is strong patent port*olio$ Patents can "e #isco!ere# ",

    engaging in costl, RD< or through acLuisitions o* other *irms1 hich is the

    "est option a!aila"le *or +lack+err, no $

    Threats

    %$ ,apid tec no!ogica! c ange. One o* the most se!ere threats +lack+err,

    an# the other tech companies are *acing is rapi# technological change$

    Companies are un#er the pressure to release ne pro#ucts *aster an# *aster$

    The one that cannot keep up ith the competition soon *ails$ This is especiall,

    har# hen a compan, ants to intro#uce something ne 1 inno!ati!e an#

    success*ul$ RIM has "een su" ect to this threat a *e times hen it coul#nBtrelease its ne +lack+err, OS on time an# hen it rushe# its Pla,+ook ta"let

    to the market$

    =$ Saturated smartp one markets in de%e!oped countries. Smartphones

    market in the #e!elope# economies is saturate# an# e/perience slo gro th

    rate$ This a**ects +lack+err,Bs a"ilit, to e/pan# its market share in US an#

    Cana#a$

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    '$ Increased competition for go%ernment contracts. Go!ernment rene s its

    contracts ith suppliers e!er, *e ,ears an# +lack+err, has to compete ith

    such *ormi#a"le pla,ers as Samsung an# Apple *or contract rene al$

    Although +lack+err, has an a#!antage o!er competitors in pro!i#ing highl,

    secure mo"ile #e!ices1 it has to compete on other phone *eatures 9at hich

    the compan, competes poorl,: as ell$ +lack+err, has alrea#, "een

    outcompete# ", Samsung on rene ing some o* US go!ernment contracts

    last

    =$=Samsung Competitors Competiti%e ad%antages

    =$=$%Ip one

    2hen anal,sts an# tech in#ustr, e/perts tr, to gauge the lasting strength o* Apple)s

    "urgeoning smartphone #ominance1 the, usuall, take the o"!ious route1 comparing

    suspecte# a#!ancements ith the iPhone against competitors inclu#ing An#roi# an#

    +lack"err,$

    The compare smartphone to smartphone1 tr,ing to pick the inner$

    +ut the, are missing Apple)s secret eapon in comparing Apples to Apples1 so to

    speak$ The comparison o* smartphone to smartphone is onl, one reason Apple is

    pulling a a, in the smartphone market1 ith roughl, %=6 million units sol# since the

    iPhone *irst ent on sale in =665$

    The iPhone is o"!iousl, popular on its o n merits1 a touch-screen1 app-"ase#

    pro#uct that clearl, has a#!antages o!er the clunkier1 more #ate# +lack"err, ma#e

    ", Research in Motion$ +ut so man, e/perts suggesting that Apple)s competiti!e

    a#!antage ma, ane in the near *uture in the *ace o* ne smartphones *rom+lack"err, an# others like Google)s An#roi# miss the point$

    Apple recentl, reache# thir# place in personal computer sales in the U$S$1 selling

    more Macs the past *e Luarters than anal,sts e/pecte#$ Also1 Apple is the lea#er in

    the ta"let space ith its popular iPa#$ In its most recent Luarter1 *or e/ample1 Apple

    sol# &$3= million iPa#s1 an# the pro#uct has onl, "een a!aila"le *or roughl, a ,ear$

    Man, iPa# "u,ers are *irst-time Apple customers$ ust as man, o* the nearl, *our

    million "u,ers ho purchase# Mac computers in the most recent Luarter are *irst

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    time Apple customers$ The reason *or Apple)s compoun#ing1 gro ing success is a

    simple multiplier *actor in!ol!ing customers$ Once the, "u, one pro#uct1 like an iPa#1

    Apple)s other pro#ucts like the iPhone or a laptop computer "ecome a natural$

    +ecause the compan, has *ocuse# o!er the ,ears on seamlessl, t,ings its har# are

    an# applications together ith an integrate# operating s,stem1 one orks !er, much

    like the other$ An# man, apps run on one pro#uct ust as the, run on the other$

    To #ate1 no compan, has as e**ecti!el, corrale# customers to other seemingl,

    #i**erent pro#ucts ", getting them to purchase ust one$ +e*ore Apple1 mo"ile

    communication #e!ices ere ma#e ", one compan, an# laptop computers ere

    ma#e ", another compan,$ The pro#ucts ha# !er, little in common$

    +ut no 1 Apple customers can "arel, tell the #i**erence e/cept *or the si;e o* the

    pro#uct$ The laptop is "ig1 the ta"let is smaller an# the smartphone is e!en smaller$

    Other ise1 ho the pro#ucts operate1 an# ho the, share *unctionalit, an#

    in*ormation seamlessl, through connecti!it,1 continuousl, up#ating customer)s li!es

    through simple plug-in1 is !er, much the same$

    That)s h, the +lack"err, an# manu*acturer Research in Motion ha!e a #eci#e#

    #isa#!antage going *or ar#$ The compan, talks a"out ho it ill up#ate pro#uct1

    ith ne e/citing o**erings in the near *uture1 "ut unless it orks ith Apple to make

    it happen1 success ma, "e har# to *in#$

    ust t o ,ears ago that asn)t the case$ Apple ha# Mac customers$ Apple ha# iPo#

    customers$ Apple ha# iPhone customers$ +ut no 1 ith each a#!ance1 particularl, in

    regar# to the iPhone)s e!olution an# the iPa#)s launch1 Apple mo!es closer to market

    #omination across all three spaces like e)!e ne!er seen *rom one compan, "e*ore$

    The unilateral strengh is the #i**erence-maker1 an# some anal,sts #on)t ,et seem to

    kno ho to *actor that in$

    Sure1 it oul#n)t happen i* customers #i# not like the iPhone on its o n merits$ Itoul# not happen i* customers #i# not like the iPa# *or its o n merits$ An#1 it oul#

    not happen i* customers #i# not like the Mac computer *or its o n merits$

    +ut put the three together1 as millions o* more consumers are #oing ith e!er,

    passing Luarter1 an# Apple has a#!antage that ma, "e har# *or competitors to touch

    an,time soon$

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    =$=$=Nokia

    Nokia is searching *or #i!ersi*ication o* re!enue streams an# map #ata is one o* their

    most signi*icant assets E a*ter all the,B!e acLuire# Na!teL 9one o* the orl# "iggest

    mapping #ata an# solutions pro!i#er: *or F($% "ln "ack in =665 $ Competition is not

    #oing so ell in the area o* in#oor mapping an# Nokia is possi"l, "uil#ing its

    competiti!e a#!antage as one the orl#Bs largest mapping compan,$ 4rom the other

    han# Nokia is also orking on a##ing in#oor positioning to their H8R8 plat*orm an#

    ith com"ine# o**er on in#oor API an# large num"er o* "uil#ing maps the, might

    attract #e!elopers to "uil# in#oor location-"ase# apps *or 2in#o s Phone (

    ecos,stem an# gain competiti!e a#!antage in that area$

    An, a, it seems to "e smart strateg, as Xin#oorB has a huge potential on

    moneti;ation o* location-"ase# ser!ices especiall, in the *iel# o* location-"ase#

    marketing$ 2hile Xthe out#oorB .+S is alrea#, prett, straight *or ar# an# mature Xthe

    in#oorB is still in its in*anc, 9ma,"e alrea#, a kin#ergarten?: an# it generall, lacks o*

    common stan#ar#s o* positioning technologies1 APIs1 routing solutions an# openl,

    a!aila"le "uil#ing maps$ Although there are initiati!es like In-location Alliance ho

    succee#s *irst1 that one ill "uil# a signi*icant competiti!e a#!antage o!er the

    competition an# Nokia is a are o* that$

    =$=$' MOTO,O6A

    It is important *or Motorola to "e strategicall, a#apta"le to the *orces an# tren#s

    happening in the in#ustr,$ Motorolais strateg, in regar# to 2iMa/ has "een to get in

    earl, on the research an# #e!elopment o* communications eLuipment to *acilitatethe technolog,$

    Motorola is not onl, a manu*acturer o* the 2iMa/ chip the compan, also

    manu*acture cell phone an# other pro#ucts that ill "e use# ith 2iMa/$ Motorola

    ill continue to in!est in research an# #e!elopment1 an# retain a #i!erse technolog,

    port*olio$

    4!

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    Motorola is current not *acing an, "arriers to entr, ith the current technological

    a#!ances$ Motorola has a chip that the compan, manu*acturers an# is *orming

    alliances ith Sprint Ne/tel an# other ser!ice pro!i#ers in an e**ort to use the 2iMa/

    technolog, an# create competiti!e a#!antage$

    The intensit, o* ri!alr, ill not a**ect Motorola in the in#ustr,$ Although the compan,

    sa a #ecline in re!enue ith the sell o* cell phones1 the compan, can make up *or

    this ", re-!amping its pro#uct mi/ an# o**erings$

    Motorola has historicall, "een a strong competitor ith man, *irsts in the in#ustr,$

    Motorola ill stick ith #e!eloping strategic plans "ase# on the remote1 in#ustr,1 an#

    operating en!ironments$ Continue# in!estments in technological a#!ances ill keep

    Motorola a glo"al lea#er *or pro!i#ing an# inno!ating communications eLuipment$

    =$=$ ,IM 9!ack9err( Competiti%e ad%antages

    +lack+err, comman#s a % $(> share o* orl# i#e smartphone sales1 making it the

    *ourth most popular plat*orm a*ter Nokia)s S,m"ian OS1 Google)s An#roi#1 an#

    Apple)s iOS$Z=[ The consumer +lack+err, Internet Ser!ice is a!aila"le in &%

    countries orl# i#e on o!er 366 mo"ile ser!ice operators using !arious mo"ile

    technologies

    Presentl, in Nigeria1 there is a "lack"err, 9++: cra;e here ha!ing a "lack"err, is

    seen as a signi*icant impro!ement to ,our status Luo

    The compan, as *ocuse# on ho to gi!e "usiness an# go!ernment clients a *ast

    an# secure means o* sen#ing an# recei!ing sensiti!e in*ormation$ As the smart-phone market E once populate# almost entirel, ", RIM)s "usiness

    customers E shi*ts to a consumer *ocus1 RIM)s strateg, is starting to look goo# again

    *or an entirel, #i**erent reason$ At a time hen ireless carriers are "eginning to *ret

    a"out all the "an# i#th that #e!ices such as Apple Inc$)s iPhones an# the upcoming

    iPa# ill eat up1 RIM)s phones gi!e them *e er hea#aches$

    The compan,)s ne technolog, *ocuses on installing a pro/, ser!er on in#i!i#ual

    #e!ices$ The ser!er oul# sen# an# recei!e compresse# #ata$

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    Such a mo!e oul# gi!e RIM phones the a"ilit, to loa# 2e" pages an# other

    ireless #ata much *aster E 2e" "ro sing is an area here the compan, ten#s to

    lag "ehin# its competitors E an# oul# also #ecrease the o!erall amount o* ireless

    tra**ic1 hich is appealing to ireless companies$

    RIM)s multiple securit, *eatures E hich are perhaps more comprehensi!e than on

    an, other smart phone E make it an i#eal tool *or sen#ing sensiti!e e-mails$ +ut as

    consumers look *or phones that o**er a i#e selection o* applications1 some

    #e!elopers ha!e complaine# that stringent securit, makes it #i**icult to #e!elop

    so*t are *or +lack"err,$

    2.3 SAMS)N*7S COM-ETITO,S ST,ATE*IC -6ANS 5O, INC,EASE MA,FET

    SHA,E

    =$'$% Apple iPhone Strategic Plans

    Apple C8O Tim Cook hea#line# a recent three-hour strateg, meeting in hich he

    outline# plans to "ring a higher percentage o* iPhone sales to the compan,)s retail

    stores $ At the present time1 onl, a"out =6 percent o* all iPhones are sol# through

    Apple Stores1 ith the remaining (6 percent o* sales coming *rom online purchases1

    other retailers 92almart an# +est +u,1 *or e/ample: an# cellular carriers$

    2hile the ma orit, o* customers are purchasing their iPhones !ia other outlets1 the,

    rel, on Apple Stores *or trou"leshooting1 repair or replacement$ Cook apparentl, lai#

    out the a#!antages o* more in-store purchases to top retail managers *rom aroun#

    the orl#1 inclu#ing the nee# to e/pose customers to other Apple technolog, ithin

    the stores an# to keep potential customers *rom "eing steere# a a, *rom the iPhone", "iase# an# "ri"e# emplo,ees at other outlets ho ma, recei!e incenti!es *or

    selling competing phones$

    To lure customers to the stores1 Cook reporte#l, hinte# at a series o* incenti!es$ The

    recentl, announce# +ack to School program that pro!i#es a USF36 gi*t car# to

    stu#ents ho purchase an iPhone at an Apple Store is apparentl, part o* the plan1

    an# it)s e/pecte# that more i#eas ill "e *loate# at a ul, =(th sales meeting$ I#eas

    such as an iPhone tra#e-in plan -- here customers can tra#e in an ol# or #amage#

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    phones to meet customer #eman#s$ 2ith the #e!elopment an# stan#ar#i;ation o*

    GSM1 Nokia can ha!e more in*luence on the gro th o* the in#ustr, an# continue to

    hol# the lea# position$

    In North America1 "ecause o* se!eral stan#ar#s *loating aroun# the market1 Nokia

    nee#s to create a partnership ith se!eral large companies to sell its pro#ucts$ 2ith

    a #i**erent stan#ar#1 customers are more concerne# a"out hich ser!ice plan a

    compan, can pro!i#e1 along ith its clarit, an# its price$ There*ore1 Nokia shoul#

    push *or the stan#ar#i;ation o* net orks so that their core competencies in #esign

    an# manu*acturing can "e ma/imi;e#$

    =$'$' MOTO,O6A Strategic -!an

    To#a,1 Motorola is harnessing the po er o* ireless1 "roa#"an# an# the Internet to

    #eli!er em"e##e# chip s,stem le!el an# en#-to-en# net ork communication

    solutions *or in#i!i#uals1 ork teams1 !ehicles an# homes$ Our goal is to make

    "usiness an# li*e simpler1 smarter1 s,nchroni;e# an# sa*er ", creating lea#ership

    pro#ucts an# ser!ices that put intelligence e!er, here$ Our Lualit, program has

    e!ol!e# to support this goal an# is no a program o* Per*ormance 8/cellence1 "ase#

    on the +al#rige mo#el$ This mo#el #eman#s a commitment to Lualit, across the

    "oar#--through !isionar, lea#ership1 organi;ational learning1 compan, agilit,1

    emplo,ee engagement1 shre # management an# a *ocus on results$ 2hile Si/

    Sigma remains at the heart o* our internal processes1 our !ision has i#ene# to

    ensure that e/cellence is permeate# through e!er, aspect o* our "usiness$

    +e*ore Si/ Sigma1 Lualit, le!els ere measure# in percentages1 or parts per

    hun#re#$ Ho e!er1 as mo#ern technolog, gre more comple/1 it "ecame clear thatol#er stan#ar#s o* Lualit, no longer applie#$ Motorola in!ente# Si/ Sigma to raise

    the "ar an# *ocus the Lualit, #e"ate on parts per million1 an# in some cases1 parts

    per "illion$ To#a,1 through Si/ Sigma1 our Lualit, target is &&$&&&77>1 or '$ #e*ects

    per million opportunities$ In other or#s1 e stri!e to optimi;e our pro#uction

    processes ", ensuring that there are si/ or less stan#ar# #e!iations ithin the

    speci*ications o* an, gi!en process$

    53

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    Total Customer Satis*action$ +ecause Lualit, is #ri!en *rom the outsi#e ", the !oice

    o* the customer1 e regularl, measure customer satis*action an# ask *or customer

    input in #e!eloping action plans an# implementing proce#ures that ill #eli!er a

    superior e/perience to customers$

    This commitment has pai# o**1 an# our stu#ies sho that customer satis*action rates

    remain high$ Currentl,1 5&> o* our customers sa, the, oul# continue to purchase

    Motorola pro#ucts an# ser!ices in the *uture1 an# 53> sa, the, oul# recommen#

    Motorola to colleagues$ 4urther1 7'> report that the, are !er, satis*ie# ith the ease

    o* #oing "usiness ith Motorola$ +, anticipating customer nee#s1 #emonstrating

    inno!ation an# gaining customer lo,alt,1 Motorola is continuousl, stri!ing to "uil#

    relationships ith customers that are "uilt on a soli# *oun#ation o* trust$

    5ocused on t e future

    As technolog, continues to a#!ance an# the economic lan#scape "ecomes more

    challenging1 Motorola ill continue to *ocus on pro!i#ing customers ith pro#ucts

    that make their li!es smarter1 simpler1 s,nchroni;e# an# sa*er$ 2e "elie!e the "est

    a, to accomplish this is through the success*ul implementation o* the Per*ormance

    8/cellence +usiness S,stem$ The program changes the a, e manage our

    organi;ation ", "ecoming e!en more *ocuse# on the customer an# ", placing

    rene e# emphasis on #eli!ering "usiness results$ The !ision o* Per*ormance

    8/cellence is reali;e# through se!en ke, areas

    .ea#ership$ A commitment to Lualit, at the top o* the organi;ation is crucial to

    our success$

    Strategic Planning$ ualit, is a ke, *actor in #e!eloping Motorola)s "usiness

    strateg,$

    Customer an# Market 4ocus$ Our customers an# the Lualit, the, #eman# are

    at the heart o* an, strategic plan Motorola #e!elops$

    4act-+ase#

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    Human Resources$ Attracting an# retaining goo# emplo,ees an# creating a

    ork en!ironment that emphasi;es commitment to customers is !ital to

    maintaining high le!els o* Lualit,$ Process Management$ Through Si/ Sigma1 e maintain our *ocus on

    continuous impro!ement o* all o* our internal processes$

    +usiness Results$

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    =$'$ RIM- +lack+err, Strategic Plan

    Research in Motion)s *uture gro s i**ier each Luarter as it signs on *e er ne

    customers an# has ha# to #iscount large num"ers o* +lack+err, smartphones an#

    Pla,+ook ta"lets to clear in!entor,$ The compan, re!eale# to#a, that its re!enue

    #roppe# =3 percent in the last *iscal Luarter !ersus a ,ear earlier1 a #ecrease o* F3$7

    "illion1 ith the #ecline in re!enues accelerating a*ter it launche# its +lack+err, 5

    smartphones in *all =6%% an# ha# to #eepl, #iscount the poorl, selling Pla,+ook

    ta"let in the same perio#$

    Ne C8O Thorsten Heins sai# he oul# re!eal a ma or reorgani;ation o* RIM

    tomorro an# sai# the compan, oul# a"an#on most consumer markets an#

    re*ocus on its historic area o* strength the "usiness market it has largel, trie# to

    escape *rom through a series o* unsuccess*ul e**ortst o trans*orm the +lack+err, into

    a gaming or social #e!ice *or ,oung a#ults$

    Z Get e/pert a#!ice a"out planning an# implementing ,our +YO< strateg, ith

    In*o2orl#)s =&-page Mo"ile an# +YO<

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    2hate!er it #oes #i**erentl, in terms o* getting re!enues *rom its +lack+err,

    technolog,1 the compan, inten#s to continue to make an# sell +lack+err, #e!ices$ It

    oul# "e a "ig mistake *or RIM to shut #o n the #e!ices "usiness1 hich #ri!es the

    !ast ma orit, o* re!enues to#a,1

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    As RIMBs share o* the smartphone market ero#e#1 #e!elopers turne# their "acks on

    the compan, in *a!our o* Apple an# An#roi#1 to the point here +lack+err, "ecame

    something o* an a*terthought *or man, application creators$

    RIM *ell "ehin# its ri!als in the app race as #e!elopers *locke# to iOS an# An#roi#$

    To#a,1 there are more than 5531666 apps a!aila"le in AppleBs App Store an# Google

    Inc$Bs marketplace *or its An#roi# apps Google Pla, hit the 7531666 mark last

    Septem"er$

    Mean hile1 RIMBs +lack+err, App 2orl# "oaste# a meagre &61666 applications at

    the en# o* the thir# Luarter o* =6%=1 accor#ing to #ata *rom Strateg, Anal,tics1 ith

    man, #e!elopers a"an#oning the plat*orm as RIMBs sales in the U$S$ #ecline# an#

    its share o* the smartphone market # in#le#$

    As RIM o**icials #re up their strateg, *or +lack+err, %61 it "ecame clear that *or the

    plat*orm to ha!e an, chance o* success1 RIM oul# nee# to con!ince thir#-part,

    #e!elopers that +lack+err, %6 as orth supporting an# coul# pro!i#e a !ia"le thir#

    plat*orm "ehin# iOS an# An#roi#$

    ThatBs here Alec Saun#ers1 RIMBs hea# o* #e!eloper relations came in$

    O!er the past %( months1 Mr$ Saun#ers an# his team ha!e "een on a mission to

    reach out to as man, #e!elopers as possi"le aroun# the orl# in an attempt to *oster

    the #e!eloper communit, that as lacking ith RIMBs legac, so*t are plat*orm$

    2hen I *irst starte#1 there as a lot o* skepticism a"out +lack+err, an# a lot o*

    skepticism *rom #e!elopers1J Mr$ Saun#ers sai# in an inter!ie $

    At the time1 e ere reall, preaching to the *aith*ul$ +ut eB!e gotten out in *ront o*

    #e!elopers1 an# IBm a *irm "elie!er that the a, ,ou ork ith this communit, is ,ou

    go out there an# ,ou meet them An ecos,stem1 a communit, o* #e!elopers1 is

    something that nee#s to "e nurture#$J

    To help "ring #e!elopers on "oar#1 RIM stage# #o;ens o* +lack+err, amJ#e!eloper con*erences in cities ranging *rom Toronto an# Ne York to Cape To n

    an# +angalore$

    No 1 ith the launch o* +lack+err, %6 ust aroun# the corner1 RIM e/pects to ha!e

    at least 561666 applications in its application store no kno n as +lack+err,

    2orl# at launch1 inclu#ing man, o* the most popular applications *rom companies

    like 4ace"ook Inc$1 T itter Inc$ an# .inke#In Corp$

    5!

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    2hat change# Mr$ RomanBs min# a"out making a Song;a app *or ++%6 as not ust

    the si;e o* RIMBs user "ase 95& million1 accor#ing to its last Luarterl, report1 ith

    man, e/pecte# to upgra#e to the ne #e!ices: or the Lualit, o* the plat*orm$

    R8448R8NC8S

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