The weapon that helps maintain the throne in Samsung’s world smartphone market

Tram Ho

In 2008, Jeffrey Immelt, general manager of General Electric Corporation, a multinational company known for its energy, technology, infrastructure, finance and industrial consumption industries, chose Vijay Govindarajan, a spearhead. at Dartmouth University, advises the company on innovation. GE's view is that it prefers to be in the Top 1 position in any market and is always looking for new ways to do this.

To solve this problem, Govindarajan interviewed the thought leaders of some of the best brands in the world, including Pepsico, Logitech and P&G. Ultimately, what he learned is that technology is not the main obstacle to development and innovation, but rather issues related to thinking and organizational structure. His research shows that companies can earn similar or better return on investment, if they implement innovations in developing segments or regions instead of focusing solely on the segment. segment or development area. The strategy he later developed was called "Reverse innovation" or "Reverse innovation."

However, in order to be successful, businesses that choose to go in this direction need to have the financial and technological potential to overcome the three fears. It is the fear of low profits, the fear of being overwhelmed by brands and the loss of technological leadership. Only by escaping the obsession with innovation can companies transform ideas that seem to require a lot of capital investment into workable products and services.

GE has applied and had strong success in invading new markets such as India and China. Adidas sports shoes are also cleverly applying this strategy to rise before rival Nike. The company's products in the mid-range segment now launch faster, "geckos" more and constantly apply technological improvements. Mescedes is also a prime example, with continuous improvements, upgrades and changes in the E-Class segment.

Vũ khí giúp duy trì ngôi vương trên thị trường smartphone thế giới của Samsung - Ảnh 1.

In the smartphone market, each manufacturer pursues its own business strategy to boost sales and maximize profits. There are companies targeting high-end markets, selling both hardware devices and services like Apple; There are companies targeting mid-range and low-price markets like Xiaomi; There are companies that have clustered to dominate the domestic market like Huawei. But there is one company that has successfully applied this reverse innovation strategy and has always been the number one market leader for many years. It is Samsung.

In 2019, although there are rivals that have risen very fast like Oppo and Huawei, while the overall context of the smartphone market is gradually falling into saturation, the Korean technology giant can still Strongly increase market share, maintain its position. This is a testament to the efficiency and soundness of the business strategy that this company pursues.

Basically, when the smartphone market is still on the rise, Samsung will integrate advanced features into the mid-range product range to help users in all segments can touch and experience advances. the earliest technology. But as the smartphone market enters a saturated phase, mid-range smartphones receive technological breakthroughs before the premium segment, in order to boost sales.

Vũ khí giúp duy trì ngôi vương trên thị trường smartphone thế giới của Samsung - Ảnh 2.

Samsung has been leading the smartphone market for years thanks to "reverse innovation."

It should be remembered that following the trend of social development, with increasing disposable income, the middle class gradually becomes the largest and has a higher level of spending over time. But even though they can afford to pay extra for their additional needs and benefits, premium products are still out of reach, prices are too high or at an unacceptable level. However, if only reduced configuration and features in high-end products and brought down, they are no longer attractive.

Samsung has realized this. The company understands that it seems the phone market has begun to segment into two segments. High-end phones gradually transform themselves into a luxurious and expensive product, while the new high-end phones are where the manufacturers need and should apply their latest technological innovations.

Young people always want to experience the latest technology, but at a reasonable price. And in this pioneering segment, when it's ready to integrate new technologies and deliver the best user experience, both customers and manufacturers benefit. The results have been practically verified, through the success of the A7, A9 (2018) smartphones, when bringing the first three cameras and four cameras to the mid-range segment for the first time, creating a wave of complete change. of the market in 2019, when mid-range smartphones can fully have advanced features before the flagship.

This is the "reverse improvement". And come here, maybe you already understand what it is.

That is user-centered. This weapon has helped Samsung maintain its throne.

Vũ khí giúp duy trì ngôi vương trên thị trường smartphone thế giới của Samsung - Ảnh 3.

Closely examine consumer purchasing behavior, price sensitivity, product performance expectations and thereby develop individual products designed to fit the needs of young or middle-class customers through technical methods to save costs but still ensure high technology. With this method, Samsung was able to create products that suit the taste of each object and at the same time make it affordable for consumers.

Consumers have more choice of good products with reasonable prices. The manufacturer bravely invests to have a sustainable technology foundation to create conditions for the next advanced technologies. And each month, Samsung will be able to sell one or maybe two new products, applying new technology. The name Samsung will always be mentioned, always on the homepage, the banner of the dealer, crush the information of other brands.

And from a different perspective, these markets or segments also serve as a test to gauge how the market responds to the technologies or products that Samsung plans to include in the future. higher segments with the addition of features and experience.

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Source : Trí Thức Trẻ