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Competitive Strategy of Samsung Company

Samsung is a South Korean company ranking among the biggest producers of electronic devices in the world. The company specializes in the production of a variety of electronic products such as electrical appliances, digital media devices, integrated systems, memory chips, and semi-conductors. Samsung has grown to become one of the most recognized companies in technology. It contributes approximately a fifth of the total exports in South Korea. Over the years, Samsung has developed electronic appliances of different types such as fridge, air conditioners, ventilators, TV screens, and home theatres. The company has also been developing various kinds of phones including the most recent Samsung s20 Ultra which has since been sold to multiple countries around the world.

The Samsung s20 Ultra was released on March 6th 2020. It was the flagship or first Smartphone for the Samsung s20 phone series. Weighing about 22g, the phone’s dimensions are 166.9 by 76 by 8.8 mm with a front camera of 40 megapixels and a rear camera of 108 megapixels making it a wonderful gadget for taking pictures (Dempsey, 2020). The phone operates on an Android 10 version (which can be upgraded to 11) with an internal storage capacity of 128 GB, Random Access Memory (RAM) of 12 GB, and a battery capacity of 5000 mAh (Dempsey, 2020). It is 5G and fingerprint enabled and comes in three colors: Cosmic Grey, Cosmic Black and Cosmic White. It has an excellent loudspeaker, FM radio support and USB Type C 3.2 and USB On-The-Go (OTG).

Some of the competitive stances applied by the Samsung s20 Ultra include having an extra-large screen size, a large battery capacity and a large battery capacity. These are among the most appealing features about the phone to their customers. In addition, the phone also has a powerful camera that takes beautiful photos. However, the phone faced the challenge of the current flagship feature with ultra-high megapixel counts. The phone was given the name Samsung Galaxy s20 Ultra to tell the world that it was the best for this new generation.

The phone’s screen is so big that it can give its users a 6.9 inch view which is quite an impressive feature for its customers. Unlike other phone companies, Samsung does not dynamically change the rate of refreshing the phone based on the type of the screen. For Samsung, refreshing the phone does not offer a solution but only compromises with the phone’s battery life.

The opening and extension of Samsung shops around the world has increased the company’s popularity and sales. Due to various internal and external factors, the Samsung Galaxy s20 Ultra was not well marketed. Several other phone companies including Apple, Nokia and Huawei have continued to improve and market their phone specifications and made them more user-friendly (Adomako, Agyei & Kinadu, 2019). The prevailing COVID-19 pandemic has proved that Samsung had not planned on how to adapt well in the development of competitive strategies. Samsung should extend its warranty period to help their customers get enough help in case of software issues on the gadgets.

Despite most of the phone features being similar to those of other phones, Samsung phones seem to be extremely expensive. If the company is not going to lower the prices of their gadgets, then it is most likely to lose market in just the next few years to come.

Competitive rivalry from other phone manufacturers such as Apple, Huawei, Nokia, Tecno and Infinix is posing a significant threat to Samsung (Gurbaxani & Dunkle, 2019). Most of its previous customers have shifted to buy the Huawei P40 Pro as a substitute to Samsung’s products. A threat of substitution by the Samsung s20 with the Samsung s20 Plus whose features are relatively the same and comparatively less cheap also faces the company. Following the current rapid manufacturing of multiple phone types, there is a possible threat of a new phone product that is cost friendly, more superior and with better performance.

The supplying power for Samsung s20 is gradually decreasing day by day. Other phone companies such as Huawei and Oppo are now manufacturing phones with similar features but at a lower price. That is why the supplying powers for these companies have been immense in the last few years compared to Samsung. In order to ensure authenticity and security of the phone, Samsung incurs extremely high production costs making it almost impossible to lower down the prices of their products to the market level (Chen &Zhan, 2019).

In order to maintain the reputation that it has taken them multiple of years to create, Samsung should consider consolidating their Samsung Galaxy s20. This is because the phone has similar features with several other phones in the market which go at a lower price. Irrespective of multiple competitors in the market, selling of phones with almost similar features should not be a major threat to a giant company like Samsung. The company should strive to consolidate on this product by increasing the user experience and improving its efficiency such as increasing the internal storage and battery capacity. In addition, the company should try to improve on the phone’s durability and safety features as this will attract more customers despite the high prices of the gadgets.

Samsung’s main concern should be the diversification of its products. Samsung has already established dominance in the market and has significantly penetrated through it. Recent research has indicated that 90% of its phone users are aware of other Samsung products making market penetration a less problem to the company (Adomako, Agyei & Kinadu, 2019). Samsung should also introduce now mobile phone products that would easily blend with the rapidly changing world of technology. Furthermore, Samsung should come up with other phone series to help it compete favorably with new phone trends that are being manufactured by other companies.

The current competitive stance of Samsung Galaxy s20 should be maintained. It has taken Samsung many years to create the company’s reputation and popularity. The company should maintain its competitive stance and focus on product diversification.


Danso, A., Adomako, S., Amankwah‐Amoah, J., Owusu‐Agyei, S., & Konadu, R. (2019). Environmental sustainability orientation, competitive strategy and financial performance. Business Strategy and the Environment28(5), 885-895.

Dempsey, P. (2020). The teardown samsung galaxy ultra S20: Is Samsung’s new camera-led flagship more than a beta?. Engineering & Technology15(4), 84-85.

Gurbaxani, V., & Dunkle, D. (2019). Gearing Up For Successful Digital Transformation. MIS Quarterly Executive18(3).

Pan, W., Chen, L., & Zhan, W. (2019). PESTEL analysis of construction productivity enhancement strategies: A case study of three economies. Journal of Management in Engineering35(1), 05018013.


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