Samsung success secrets: How can it rival Apple

Samsung Apple patent war of fighting seems to have gradually subsided. A lawsuit, took more than a year, front spread to a dozen countries 1*64 plc splitter around the world, dozens of lawsuits, to Apple’s victory ended for the time being.  Two major consumer electronics industry giants to battle to fight so long, front so long, explains one problem: Samsung has become can match competitors with Apple.  Korea people used to laugh at yourself there are three things in life cannot be avoided: death, taxes and Samsung. With “going” to describe a Samsung, it may not. According to Samsung in memory and the display field, the market share of world’s first television business also have dominated the world’s champion for 5 consecutive years, and Samsung’s mobile phone business is smooth from Nokia this year had seized the throne of the world’s first mobile phone manufacturers, but also beyond Apple to become the world’s first smart phone manufacturers.  View Samsung’s road to development in these few years, capable of delivering today’s performance was no accident, it can be said that Apple is technically gifted designers, businessmen and Samsung is a truer.  Brand transformation: the most critical step Samsung  Even if Samsung’s super fans won’t think that Samsung is the absolute leader of industry technology trends. In every technology, however, is definitely no shortage of Samsung’s shadow, and gained great success. From this angle we can see, Samsung has an extremely keen powers of observation of the market. On the implementation of specific dimensions, we see three year decisive and accurate judgement of the market with brands in transition.  Early as Samsung has been the industry of cheap products is a manufacturer of “shanzhai” companies, not recognized by consumers, their products and even became “stands the goods” synonymous. Because trying to imitate someone else’s technology, produces a lot of lack of innovation of cheap products and take excessive pursuit of large-scale mass production in pursuit of winning marketing price, Samsung is the object of ridicule in the international market.  But after Lee Kun-hee as Chairman of Samsung Group, in order to enhance Samsung’s brand image, he has made a “second”, “new campaign” and “digital inclusion strategy” concept. Especially under the 1997 Asian financial crisis swept through, industry of Samsung is a step by step down. World crisis, said Lee Kun-hee, with consumption down, rather than taking advantage of the Corporation’s emphasis from manufacturing to enhance the brand image, to shed the last kind of malignant mass-produced, cheap and sell the business model.  Is also in that time, Samsung is keenly aware of the dawning of the digital era is fundamentally changing the world, but also for the entire consumer electronics industry has brought a lot of opportunity to shuffle. So, Samsung has developed a new brand strategy, the original business core shift from large-scale manufacturing on own-brand production and digital technology as the breakthrough point, build their brands.  Based on so of strategy, Samsung made has “digital world” of brand core values, to brand injected “upscale, and high value, and fashion”, fresh element, makes brand connotation and March high-end digital products, and pursuit high profit of strategy phase adaptation, thoroughly change Samsung brand past in consumer minds in the stands cargo, and low-grade, and cheap of impression, makes Samsung show out high quality, and high value, and fashion trend of new image.  Samsung while trying to introduce a high-price products. For enterprises, high prices could bring two benefits of the product: profit increase and enhance the brand image. Because in the market, high prices often implies high quality. Samsung grabbed the consumer psychological characteristics, positioning the product prices at a relatively high level, opened with grades from other manufacturers, in order to create an upscale image, which in turn stimulate product sales.  This approach helps Samsung grabbed the Smartphone market broke out of a window. Just 5 years ago, when Apple has just launched the iPhone, no one will believe that the iPhone will get such a huge success, not everyone is able to clearly anticipate the future development of smart phone trends. At that time Nokia, the cell phone mogul in when you see the iPhone, to think iPhone nothing more was dismissive. But he had just overtaken Motorola, the mobile phone in the world’s second largest supplier of Samsung is determined to take the iPhone as a template, invested in the development and production of smart phones. Samsung Apple from the beginning of “wage earners”, LED screen on the Apple iPad, iPhone and the processor chip, Flash and components become Apple’s largest supplier. For Apple, “wage earners” in the course of Samsung’s own Galaxy series phones in the market gradually beyond the iPhone’s status became the overlord of smart phones.  The second quarter of this year, Samsung’s operating profit reached a record US $ 5.86 billion, of which Samsung cell phone operational net profit of us $ 3.65 billion, accounting for a total profit of 62.3% and 90% dominated the global smartphone market in conjunction with Apple’s profits. Visible, the mobile handset business, especially the Smartphone business, Samsung’s business system, play an increasingly important role.  Brand transformation and accurate judgement of the market, Samsung took the most critical step on the road of the rise.  Contrarian investing: Samsung to build industrial chain Empire  Samsung’s quick rise there is another important reason, it has many advantages that are not consumer electronics manufacturers: core parts design and production capacity.  According to statistics, the Apple iPhone 32% parts is provided by Samsung, which includes processor, DRAM flash memory as well as part of the display. Competitor’s accreditation, demonstrating Samsung’s strength in core components developed and produced, Samsung has built a vertically integrated industry chain Empire.  Samsung is this model really shows the power of the industry chain in the late 90 ‘s of the last century, Samsung’s own brand products on a global scale after the open, industry-wide supply chain with its own brand of mutual collaboration laid the foundation of Samsung’s rapid rise. Samsung behind the entire value chain, precision is Samsung’s strategic vision and resolute investment sense.  May semiconductor that Word sounds ancient and distant, which is closely related to the rise and fall of the consumer electronics manufacturers. Products are brands that consumers see the outside, while industrial chain layout determines the manufacturer’s costs, capacity, production cycle of the life of the country. Samsung is seeing this, so steadfastly build the entire value chain.  When Samsung first into the semiconductor industry, technology is relatively backward. Samsung from the accumulation of technology, learning to technology innovation, one, spent a dozen years in time. Samsung in technology acquisition process, the top salary to employ technicians, develop long-term weapons technician training plan, strategy, and the persistent efforts of competitors.  In order to improve the technology, Samsung hired the United States semiconductor company of Korea, and paid them 5 times times higher than the President’s salary. In addition, Samsung many times when a downturn in the industry, with great courage and incredible judgment conducted venture capital, was fully prepared for an industry recovery, beyond the competition.  Samsung has just invested DRAM memory, due to the market downturn, Samsung’s accumulated losses amounting to us $ 300 million, equity capital deficits entirely. In this context, Intel, United States companies to exit the area, Japan companies reduce investment scale and production capacity. But Samsung contrarian investment, continue to expand capacity, and develop a greater capacity for DRAM memory. When the turning point when the industry began to appear, United States Government launched against Japan semiconductor enterprises anti-dumping lawsuit, United States Government and Japan reached voluntary export restraint agreements, Japan enterprises in desperation has reduced to United States exports. Fast recovery in DRAM prices, Samsung come to infiltrate the United States market, starting in the area of DRAM profit.  In addition, when you invest in LCD Panel, Samsung is also not the common sense out. In 1996, the LCD panel industry recession, while Samsung has built in 1996 first 3rd generation technology of the LCD panel production line to catch the Japan the productive capacity of enterprises. After the outbreak of the 1997 Asian financial crisis, Samsung once again adopted a counter-cyclical investment laws, investment and expansion of LCD production line, and has comprehensive technology-leading Japan enterprises.  Proactively investing in semiconductor and LCD Panel, while other companies in pursuit of technology and brand, and Samsung has built a vertical industry integration and technology advantages beyond brand, which has prompted Samsung to at the beginning of the new century, relying on the advantages of vertical integration of the industry chain implementation strategies to build brand.  At present, reinforced by Samsung by perfecting industrial chain Layout Panel, such as memory, processor core electronic parts and components production advantages. Samsung home-made parts account for a Samsung phone shipment costs as high as 62%, its market share in the field of storage and Panel is the first in the world.  Analyst at isupply Gu Wenjun believes that Samsung has a fully independent Kingdom of vertical integration, many critical components, from the LCD Panel, to the CPU stream, then to the memory chip, it is self-sufficient, which makes the Samsung vertical integration have economies of scale and efficiency. To produce mobile phones, for example, mobile phone manufacturers in General if you want to make different sizes of panels required Panel plant planned in advance, not only long, but not dominant in terms of cost. But Samsung one his Panel has a number of stocks, willing to give mobile phone use, it can be put into production soon, Samsung’s response will be faster than the competitors such as Apple, Nokia, HTC, and lower costs.  Cut ever-can it be sorted out relationship with Apple, Samsung further hampered the ability of key parts and Apple. Because of Samsung’s overall layout, Apple is both a customer of Samsung and Samsung’s competitors. In such a competition, Samsung will find most beneficial to their competitive strategies. Samsung’s chip, and other such products must give priority to ensure the use of Samsung products, in desperation, Apple can do is find a new chip and Panel suppliers.  Advantages in the industry chain, in competition with rival Samsung, took the upper hand.  Samsung rules: like a paranoid sense of crisis  Since after contusion in a patent battle with Apple, Samsung Group to its enterprises such as Samsung Electronics, Samsung life and Samsung products ordered require staff time in advance to 6:30, hoping to let the staff know that Samsung is in crisis, enhancing staff’s sense of crisis.  Samsung Group Chairman Lee Kun-hee who has a strong sense of crisis. Lee Kun-hee, speaking in March 2010 regain command, Samsung not predictions of the future, within the next ten years, the most representative products of enterprises will be a thing of the past, therefore needs to be starting from zero. People who visit to Samsung, you’ll find, no matter where it goes, can feel that Samsung’s strong sense of crisis, and the indoctrination of Lee Kun-hee for a long time not unrelated.  It is this long-term instill a sense of crisis, helping Samsung continued to punch in areas such as chips, televisions and monitors, and eventually overtaking Japan’s companies, such as Sony, sharp and Panasonic, Nokia mobile phone industry for more than 10 years also ended the superpower status, or even surpass Apple in the Smartphone market.  Patent when the battle of the century, according to Samsung submitted to the United States courts of an internal memo, head of Samsung mobile Shen Zongjun February 2010 employee said: “this is a design crisis. “Was being designed by Samsung Galaxy handsets in the first paragraph, in response to the surging momentum of the iPhone.  Shen Zongjun, all along, the Samsung focus all attention on the Nokia, and all efforts were focused on the flip, bar and sliding elements. But Samsung’s user experience when not in comparison to Apple’s iPhone, there are worlds apart. According to a Samsung designers revealed that sense of crisis and urgency prompted Samsung’s designers and engineers to use the best concept of the iPhone look and feel, and promptly publish the Galaxy series phones and placing on the market, and iPhone has embarked on a vigorous battle for the Smartphone market.  In an increasingly competitive market, Samsung is known to respond quickly, and its mobile device development cycle is getting shorter and shorter, about launch of a new product every 6 months. At the Consumer Electronics Show in Berlin at the end of August this year, Samsung accidentally launch the WP8 smartphone based on Microsoft’s next-generation mobile operating system, even earlier than the Microsoft strategic partner of Nokia for a few days.  No matter what obstacles faced, Samsung will provide innovative and unique products, stand out in the industry, which is constantly strengthening the culture of crisis in effect.  While Samsung because of the sense of crisis has also brought about some negative effects, often let the competitors reprimanded “Cottage”, however, no matter how much you hate, discontent, “shanzhai” Samsung 1*64 plc splitter probably will, as always, “Cottage”. More frightening is that it never slacked off, and more hard work, 6:30 A.M. began to work every day. This, can you do it?

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