Introduction
One of the most fiercely competitive markets in the world, the smartphone market is characterized by rapid technological breakthroughs and evolving consumer tastes. An influential company in this market, Samsung, has prominently used the last-mover tactic. In this tactic, a business enters a market after a first-mover has built a strong foothold. As demonstrated by Samsung’s entry into the smartphone market, the late mover strategy is a valid approach to market competitiveness.
Learning from First-Mover’s Experiences
The most apparent benefit of the late mover is the ability to take lessons from the first mover’s positive and negative experiences. Samsung gauged how customers reacted to various features, looks, and functionalities of Apple’s iPhone. Market knowledge allowed Samsung to fine-tune its product offerings to match consumer expectations.
For example, Apple’s initial iPhones featured relatively smaller screens, which did not cater to the growing demand for larger displays. Samsung recognized this and started offering a range of devices with larger screens and more customization options, addressing consumer preferences that Apple had not yet fully met. Thanks to this strategy, Samsung was able to offer intense competition to Apple’s products (Häckel & Stirnweiss, 2019).
Entering the market at a later time, Samsung benefited from Apple’s innovative marketing strategies and the hype created by the smartphone concept. Apple essentially educated the world about the potential of these gadgets. Samsung’s global success relied on Apple’s market education efforts to increase the sales of its smartphones abroad.
Late-Mover Innovation
Samsung’s ability to innovate has been a critical factor in its sustained success within the smartphone sector. Although at first Samsung’s products resembled Apple’s, the business eventually moved past copying. One such innovation that appealed to a particular consumer group looking for smartphone productivity capabilities was the release of the Note series with its pen functionality. With mixed success, Samsung showed adaptability by implementing cutting-edge innovations like foldable screens and embracing trends like 5G connections. Samsung was able to attract an extensive customer base because of the variety of its product offerings.
Apple’s design ethos frequently favored a sleek and simple style. Samsung noted this and changed its business approach to provide customers with a broader range of design and function options, allowing them to select devices that matched their preferences (Park, 2021). Consumers who desired greater variety in their smartphone options found this strategy appealing. While effective, Apple’s closed ecosystem strategy had certain drawbacks. On the other hand, Samsung embraced a more open platform strategy, giving developers more latitude and freedom to produce and distribute applications. This openness distinguished Samsung from Apple’s more tightly controlled environment and drew a greater developer community and a wider variety of apps to the Android platform.
Economies of Scale
Finally, economies of scale maintain a significant impact on Samsung’s success. Although usually they are considered a first-mover advantage, Samsung could make smartphones at a lower cost than some of its rivals because it is a diversified corporation with prominent manufacturing capabilities (Thompson et al., 2023). Due to their cost-effectiveness, they catered to a broader range of customers by offering various products at various price points. Their market penetration and success were aided by their ability to offer high-end flagship products and affordable alternatives.
Conclusion
To conclude, Samsung’s continued success in the smartphone market can be partly attributed to its last-second-mover approach. Samsung learned from various aspects of Apple’s strategy and execution, addressing perceived shortcomings and unmet consumer needs. The company has succeeded in competing by adjusting to changing market dynamics, learning from Apple’s mistakes as a first-mover, and utilizing economies of scale. This approach to market entry has been integral to Samsung’s continued prominence in the smartphone industry.
References
Häckel, B., & Stirnweiss, D. (2019). Determining the optimal time to launch an emerging innovation in a market. International Journal of Innovation Management, 24(06). Web.
Park, C. (2021). Different determinants affecting first mover advantage and late mover advantage in a smartphone market: a comparative analysis of Apple iPhone and Samsung Galaxy. Technology Analysis & Strategic Management, 34(3), 274–289. Web.
Thompson, A. A, Peteraf, M. A., Gamble, J. E., & Strickland III, A. J. (2023). Crafting and executing strategy (23rd ed.). McGraw-Hill.