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  • Posts Tagged ‘Huawei’

    China’s ‘Smart’ Smartphone Strategy: Being ‘Global’ and ‘Globalized’

    July 24th, 2013  by  Asia-Pacific Global Research Group - Jasper Kim

    As I mentioned in a 2011 BBC News article, while Samsung and Apple have locked legal horns over a global and costly patent dispute, Samsung (and Apple) should now be pivoted towards the rise of a new generation of Chinese challengers.
     
    Chinese smartphone firms that are not entirely household names today in South Korea, the U.S., and Europe, inevitably will be in the future. This may not happen today or tomorrow, but rising Chinese challengers—Huawei, Lenovo, Coolpad, and ZTE—just to name a few, have the potential to be true dominant global players. This results in two main challenges facing both South Korean and Californian tech firms going forward, especially as it relates to the largest growing smartphone market, mainland China.
     
    The first challenge for such firms is that China’s “Big 4” smartphone players are already localised, while others are less so. As a result, China’s smartphone firms will instinctively and strategically know how to compete with foreign competitors like Samsung on their own home turf (where China has recently displaced the U.S. as the world’s largest smartphone market). This will be critical since Chinese consumers are known to be fickle fast movers, switching to new smartphone models about every six months (compared to every two years in the U.S. market). Thus, such Chinese firms will be best positioned to be where future demand will be, while foreign firms will still be sorting through market research from an outsider’s perspective. Already, one of the Chinese Big 4, Huawei, has introduced the world’s thinnest smartphone with the introduction of its Ascend P6. China’s Big 3 also will be more sensitive to the need for competitive low pricing in a country where the average person earns a mere fraction of those in South Korea and North America.
     
    Second, while the likes of huge firms have focused on being global, such firms may not necessarily be globalised. To be a sustainable dominant player in the current ever-evolving environment, a company needs to be both global and globalised. While South Korean and California-based tech titans are certainly global (in terms of overseas revenue, market share, and branches), they have yet to be fully globalized (in terms of strategic decisions made by a diversified group of senior leaders from around the world based on global standards).
     
    Firms like Lenovo have a senior executive board that boasts a global group of diversified talent who have true decision-making authority for the betterment of the firm. In the case of South Korea’s largest smartphone producers, most or all of the senior management are entirely domestic. Although having an entirely domestic board does not in itself signal not being globalised, it is nonetheless an important and revealing indicator for outside investors. And while having a homogenous board may lead to a higher chance of seamless execution, its downside may be the relative inability to see or do things differently. 
      
     
     
     
     

    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.