Samsung and Effective Competition in the Smart Phone Market Essay

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Samsung competes in a market that is now becoming more commoditized. The overall smart phone market is entering its mature phase. As is characteristic of many firms in this phase, competitors will attempt to steal market share from each other. This occurs because industry growth is slow, and the only way to stay profitable is to take customers from other consumers. Marketing has a very integral role as it relates to consumer preferences and behaviors. In particular, Samsung must differentiate itself among a litany of similar product offerings in the market (Cho, 2009).

Currently, Samsung is unique in its ability to garner a loyal and profitable following. Much like its competitor, Apple, participants who enter the Samsung ecosystem usually stay within it. The familiarity, efficiencies and convenience of the ecosystem make switching to other brands costly for consumers. For example, an Android user, switching to Apple would need to learn an entirely new operating system, menus, and overall functionality. In addition, Samsung has been known to provide a much higher value proposition for consumers looking to purchase a smart phone. Apple tends to target the premium consumer with its iPhone, iPad, and iPod product offerings. They are often much more expensive and thus warrant a premium value (Dylan, 2011). Samsung, with its products, are more focused on value.

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In many instances Samsung can perform better or just as well as Apple in many key operating metrics. Aspects such as screen size, battery life, and applications between the two companies are nearly identical. However, through marketing, one is perceived to be of higher value even though in reality it is not. This perception is an intangible element to the overall value proposition of competitors versus Samsung. The Samsung product lineup is seen as a more value oriented, cheaper solution for consumers. The company has been very aggressive of targeting the low, middle and high end consumer with its products. Apple, Samsung's primary competitor has remained relatively focused on the high and middle class consumer. As a result, the total costs of ownership for Samsung products are much lower than that of Apple. First, the phone is much cheaper. Second, the overall maintenance of the phone is much lower as it is less fragile than the corresponding Apple phone. Finally, replacement costs in the event that the phone is damaged are much lower for Samsung. Due in part to the ability of Samsung to cater to all consumers, customers can elect to trade down to a cheaper, more reliable phone. Apple customers do not have this luxury.

Samsung's product offering occupy the….....

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