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  • Samsung Electronic’s future growth strategy: what to do when screens can’t get any bigger?

    June 21st, 2013  by  Asia-Pacific Global Research Group - Jasper Kim

    Jasper Kim of Asia-Pacific Global Research Group is featured in this BBC tech report today as 1 of 4 expert commentators on Samsung’s future growth strategy (below is a short excerpt of the full article found HERE):
     
    In 2011 (in an earlier BBC tech report), I warned the rise of China’s emerging electronics companies was a tangible threat to the world’s bestselling smartphone maker.
     
    As we have seen, emerging tech titans from the mainland, such as Huawei and ZTE, have since made gains. It should serve as a wake-up call to the South Korean firm.
     
    Samsung’s recent string of smartphone successes have largely, but not entirely, been linked to the relatively straightforward formula of offering consumers larger screen sizes with an American-based operating system – certainly evolutionary but not exactly revolutionary on Samsung’s part.
     
    But assuming that we are now at the limits of how big one-hand display screen sizes can get, the focus will shift more towards price points and brand familiarity than a “bigger is better” mentality.
     
    Samsung’s ultra-aggressive and expensive marketing strategy was a key factor in its brand awareness outside of South Korea.
     
    But to capture the billion-plus mainland Chinese market, homegrown firms, such as Huawei and ZTE won’t need to expend the same amount of marketing resources to gain brand familiarity and consumer trust.
     
    Chinese firms will also be naturally positioned to know exactly what its domestic consumer base wants before any other foreign tech firm, including the likes of Samsung and Apple.
     
    Samsung should not rest on its laurels. This week’s introduction of Huawei’s Ascend P6 – the world’s “slimmest” smartphone – is just the beginning of future innovative products to follow.
     
    If Samsung fails to pay heed, the rise of such Chinese tech firms could be tied to the decline of Samsung’s market share in China and beyond.
          
     

     

     

     

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