Strategic Management

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 Company Introduction Company Introduction
SAMSUNG SONY

Originating from South Korea, Samsung The corporation initiated in 1946, with the
Electronics is a multinational electronics and digital preliminary name of Tokyo Telecommunications
devices corporation, inaugurated in 1969. It is Engineering Corporation. It has developed and
widely acclaimed for its mobile phones, TV sets, launched a number of products, with some of its
and range of electronic devices. first-hand creations including portable stereo and
the Walkman.
 Segments, Market Position, Competition: SAMSUNG

Position: Samsung has occupied top position for its televisions since the
year 2006. It has categorised as the bigger smartphone seller in 2019,
followed by Huawei. It was also the second-largest tablet seller in the world,
competing against Apple iPad.

Segmentation: Users are between 13 to 60 years of age. Both males and females are ardent buyers.
Urban and rural populations of 80 countries are Samsung-buyers. Psychographic segmentation
relates to ambitious, trendy side of customers. Students and professionals are more loyal customers.
People from middle to upper class prefer Samsung phones.

Competitors: Intel, Apple, Sony, Huawei for mobile phones and electronic products.
 Segments, Market Position, Competition: SONY

Position: Sony is a market leader in the electronics sector. It enjoys

worldwide recognition in top market share for the year 2019. It has excellent
brand image in the eyes of customers. Positioning strategy is credible and
unique.

Segmentation: The target social class is the middle class and the upper
class. The company follows a non-demographic segmentation.
Geographically, it targets the urban regions rather than rural, ranging from
small cities to huge metropolitan areas.

Competitors: Intel, Apple, Sony, Huawei for mobile phones and electronic products.
Porter’s Generic Strategies: Cost Focus and Differentiation
Focus

The Case of Samsung

The primary competitive strategy for Samsung is the

differentiation strategy. The company focuses

on competing with groups in the market by offering a
plethora of differentiated products.

The secondary competitive strategy for Samsung is

cost focus, which is only used sometimes in the

business model to win over the international market
and bring more sales.
Porter’s Generic Strategies: Cost Focus and Differentiation
Focus

The Case of SONY

The primary competitive strategy for SONY is the cost focus.

It sustains its position in the market by carrying out adequate
value chain management. Cost focus targets the middle class
segment, improving the overall number of sales.

The secondary competitive strategy for SONY is

differentiation. It incorporates elements of uniqueness

in its variety of products. It continues to widen its product line to
distinct itself from competitors.
 Corporate Strategy Directions

The Case of Samsung

 Market penetration has been successfully achieved

through the strong brand image and brand equity

associated with Samsung.

 The corporation focuses on top-notch product

quality and increased reliability of services, making

it spread globally.
Corporate Strategy Directions

The Case of SONY

BCG Matrix: The Case of SAMSUNG
BCG Matrix: The Case of SONY
 Recommendations Recommendations
SAMSUNG SONY

should build on its strengths and diversify its

should aggressively pursue growing markets by
product range
introducing medical and wearable technology

should focus on rapid development and

should introduce more innovative and indigenous
technological advancement to face the growing
products to avoid infringement lawsuits
competition
 References

Chang, S.J., 2011. Sony vs Samsung: The Inside Story of the Electronics Giants' Battle For Global Supremacy. John

Wiley & Sons.

Viardot, E., 2004. Successful marketing strategy for high-tech firms. Artech House.

Ferrell, O.C. and Hartline, M., 2012. Marketing strategy, text and cases. Nelson Education.

Kabeyi, M.J.B., 2018. Michael porter’s five competitive forces and generetic strategies, market segmentation

strategy and case study of competition in global smartphone manufacturing industry. IJAR, 4(10), pp.39-45.

Costello, H., 2017. Global virtual reality market forecast 2020 by major players such as sony, microsoft, facebook,

htc, google, samsung electronics, gopro, etc.