Invincibility lies in itself, the possibility of victory lies in the enemy
Sun Tzu "Art
After 2011, when Samsung overtookNokia (and then immediately Apple) in sales, its leadership position has never been threatened. Now Samsung is the only major handset maker that has survived the last decade. All other companies that produce Android-smartphones have grown over the past few years. They all come from China. All are extremely aggressive, ambitious and growing, biting off each other's market shares in all price segments, except for the most delicious and expensive. Samsung is in a different situation - it is enough for it to maintain its position in order to keep the leadership in the smartphone market. According to the classic of military strategy Karl von Clausewitz, the defensive form of war itself is stronger than offensive. The author of the famous textbook “Marketing Wars” Jack Trout agrees with him, saying directly that the market leader in a marketing war is always more likely (resources, room for maneuver, and so on) to win. The war for leadership in the smartphone market in 2019 will definitely enter future business textbooks due to the unprecedented intensity and pace of events. Additional piquancy gives it a new phase of the trade war between the United States and China, becoming yet another factor influencing the course of events, tipping the scales on one side and then the other. And intuition suggests that it is still early to put the last point in this story. What does Samsung do in turn to keep the lead? Let's figure it out together.
The outcome of the battle as a whole consists of the sum of the results of all private battles.
Karl von Clausewitz "On War"
Of course, I don’t have it before my eyesinternal documents of the company regulating the course of the war and strategic directions of strikes. But a lot can be learned from the obvious actions already taking place in the market. Samsung is changing its product lines under the influence of the market situation, the pressure of competitors, changing user preferences (who themselves don’t know what they don’t want to give them yet) and technological progress. What do we see in the Samsung product strategy?
Flagship S-series out of reach of competitors (strictly speaking,there is still Apple with its own separate universe and its own rules of the game in it), producing Android-smartphones more expensive segment (by the way, I predicted this at the beginning of the year). The Galaxy Note series went there even earlier (and this year we are waiting for the continuation of the story with the new Galaxy Note 10 - it is obvious that it will also be produced in the form of expensive versions for technology pioneers who are not used to refusing anything). Apparently, this strategy is bearing fruit: the company recently announced that in Ukraine the flagships of the Samsung Galaxy S10 overtook last year’s sales of the Galaxy S9
New M-series became a real answer to expansionnumerous cheap Chinese smartphones and is intended for sales in developing countries. Representatives of the Socket will not allow to lie - at the start of sales, the Samsung Galaxy M20 was in short supply. Here you have a battery with a capacity of 5 Ah, and NFC support that is in demand in our country (we are number 5 in the world in terms of the number of transactions in phones according to Mastercard and Google), and which is not the case with Chinese models. And a separate slot for a memory card (not counting 2 SIM-cards), and even a progressive USB-C, which can not be found in inexpensive phones. The entry of the Galaxy M10 to the market can improve the situation in an even cheaper segment. The ideology of the M-series is simple: all other things being equal, the buyer will choose a well-known brand, and not a new one. And if Samsung offers the best technologies (NFC, USB-C, high-capacity battery, then even more so). M-series smartphones are only sold online, which is also a response to competitors' aggressive marketing strategies.
For those who want to know more
Instructive to understand the positions of the leader onThe market is the history of the war for Tylenol leadership in the United States, described in the chapter "The Battle of the Migraine Mountain" in Jack Trout's book Marketing Wars. In June 1975, the Bristol-Myers company decided to market its analogue “the same, only cheaper.” It ended sadly for her (and for the leader - Johnson & Johnson - no).
Finally, Samsung’s main “victory weapon” becomes A-serieswhich will simultaneously hold and sharemarket, and an acceptable margin (and not just one, in the case of the S-series and the M-series). This year, the Galaxy A line of smartphones includes 8 models at once - from A10 to A80, capable of providing a choice for any wallet and taste. In this case, Samsung turned its budget J-series (although it is still on sale), giving it the function of the A-series, in which until this year there have never been budget models. And the key advantage in the market (which Samsung will definitely use for promotion) will be ... Super AMOLED screens available only to it. Add to this the confidence of buyers to the brand, celebrated recently its 50th anniversary and confidence in the future. Samsung is the only non-Chinese company in the list of the largest manufacturers of smartphones, so the consequences of the still-ongoing US-Chinese trade war cannot touch it. And she does not need to issue official statements that the partnership with Google is unshakable.
What are Super AMOLED screens
We first heard about such screens in the distant2010, the year when Samsung released the Samsung S8500 Wave smartphone. The main feature of this technology, which is the development of OLED-displays with active matrix (AMOLED) has become lack of air gap between the light emitting layer and the protective glass, thanks to which the display has become thinner and brighter than competitors. All this has a positive effect on improved energy efficiency. All these years, Samsung has been holding technology SuperAMOLED "only for yourself", using it at first only in expensive flagship models. But this year, thanks to all the same technological progress (production volumes are growing, it means the cost of screens is gradually decreasing) and increased competition, Super AMOLED screens are becoming more accessible and appear in the middle class models starting with the Galaxy A20. Of course, modern Super AMOLED displays are not only bright screens that allow you to see the picture in the bright sun, but also 180 degree viewing angles and low response speed of the touch screen, which you will never see at the know-manufacturers. It is worth recalling about one more feature available only on AMOLED screens: Always On features, allowing to see hours, charge levelbattery and notifications on the off screen. This is really extremely convenient, and not a single user, faced with this opportunity, will ever want to give it up, especially since it consumes only energy. And this possibility is in most models of the line, with the exception of the A20 and A40.
What is interesting line Galaxy A
The best defense strategy is the courage to attack oneself.
Jack Trout "Marketing Wars"
Look at how balanced the whole looks.A-series line of 2019. I am glad that the strategies of reducing the model range are winning on the market, which allows to simplify the choice for the consumer. A species diversity is achieved by choosing the color of the body and increased memory:
- Samsung Galaxy A20: the most affordable model on the market with a Super AMOLED screen (recommended retail price is 5,499 hryvnia). Frameless screen with a diagonal of 6.4 inches and a drop-shaped notch. Dual camera, 4000 mAh battery, support for NFC, 4G, USB-C and fast charging, unlocking on the user's face.
- Samsung Galaxy A30 (RRP from 6,499 hryvnia for version3/32 GB): optimal price-performance ratio - a mass model that will suit the overwhelming majority of buyers (its cost is very close to the average price of a smartphone on the Ukrainian market): 6.4-inch Super AMOLED screen with a resolution of 2340 × 1080, dual camera with elements artificial intelligence, recognizing up to 19 scenes.
- Samsung Galaxy A40 (RRC 7,499 hryvnia): An interesting model for those who do not like "shovels" and looking for something that in 2019 can be called a compact body. This model has a Super AMOLED screen with a diagonal of 5.9 inches, an increased amount of RAM up to 4 GB, and another 25 megapixel front camera is an excellent youth model for gamers and selfie lovers.
- Samsung Galaxy A50 (RRP from 8,499 hryvnia for version4/64 GB): model for those who are looking for something more interesting and more technological. In addition to the Super AMOLED screen, this smartphone has a fingerprint scanner built into the display (this year's tech trend) and a triple camera that allows you to both zoom in and out during shooting, switching between lenses with different focal lengths.
- Samsung Galaxy A70 (RRC 12,999 hryvnia): A real gift for active users of mobile applications is a large 6.7-inch Super AMOLED screen with a resolution of 2400x1080, a battery with the highest capacity in the range - 4500 mAh, a triple camera, a 32-megapixel front camera for selfies and fast 25-watt charging.
- Samsung Galaxy A80 (RRP 19,999 hryvnia): and this smartphone is interesting for its unusual engineering solution and will suit fans of all non-standard and experimental: this is a unique model on the market with a pivoting camera module that takes place when the user needs to switch to the front camera and back. This model with flagship features (and the same price): 6.7-inch Super AMOLED screen with 2400x1080 resolution, dual camera module with 48 and 8 megapixel matrices, 8 gigabytes of RAM and a 128-gigabyte drive suitable for storing video in 4K. A real gem for geeks (with whom we will soon acquaint you more closely).
I want to finish this story with one more quote.Jack Trout: “Companies do not create leaders - they are created by buyers. The true leader in the category is who they see as such. " Who will finish the year 2019, the leader in the smartphone market depends only on us, the buyers. Samsung made its move.
For those who want to know more
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- Overlooked war: QLED TVs are winning
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- The turning point: why the Huawei P30 is a landmark model for the market
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