Recommendation on competitive strategies for samsung electonics for mobile handset business in the emerging 3G scenario

Abstract

Mobile telephony allowed us to talk on the move. The Internet turned raw data into helpful services that people found easy to use. Now, these two technologies are converging to create third generation mobile services. In the near future, mobility won't be an add-on, it will become a fundamental aspect of many services. Consumers can expect high-speed access to entertainment, information and electronic commerce (ecommerce) services wherever they are - not just at their desktop computers, home PCs or television sets. In simple words third generation (3G) services will combine high-speed mobile access with Internet Protocol (IP)-based services and provide an invaluable mobile dimension to services that are already becoming an integral part of modern business life- Internet and Intranet access, video-conferencing, and interactive application sharing. In this ever-changing environment, we propose competitive strategies for Samsung, which is already, a world leader in CDMA market, to lead the global 3G handset market. The report unfolds with gaining an understanding of the existing mobile handset market and the different players. Interactions between the different players are mapped through the value chain and interrelationships explained using the same. Certain factors affecting Samsung's position in the market was understood through this exercise. Then, through secondary research and talking to different industry experts we arrived at a core set of variables that influence Samsung's game play in this 3G space. Using these core variables, possible emerging scenarios were drawn and analyzed in a great detail. We recommend competitive strategies for Samsung in the most likely scenario of 3G mobile market. We arrived at Value Dilemma scenario as the most likely scenario after an in depth analysis of the critical factors that will influence the future of 3G market. The benefits that this new technology brings to the market are unknown to the end user. There are political, social, economical, behavioral and technical factors coming into play today and we felt Samsung need to tread the 3G path a little carefully, ideally a preparewait- and-watch strategy. It should take on an Adopter posture and deploy the Option strategic move. We then tried to derive some common properties from the scenarios and evaluated them against the Indian market. Primary research was conducted in 4 major areas - Medical, Insurance, Retail and the Software Development Industry itself and certain results confirmed. Today, the Indian market is ready to accept the device at a higher price but no one knows, how and who would provide these different promised mobile services. It's been an interesting study for the authors, as it has provided deeper insights into the 3G markets and provided exposure to some technology marketing and Analysis frameworks throughout the study. We touched the users in our primary research and were able to feel their pulse for a product that hopefully will become a quintessential tool of their day-to-day life.