Strategy

Samsung currently has a significant advantage over its competitors since it manufacturers many of the smartphone components in-house. They are also one of the largest suppliers of central processing units (CPU) and memory for smartphones ( Tofel, 2011). They exploit this advantage as part of their current strategy by releasing the newest hardware components into their devices before supplying them to other manufacturers ,who ironically are also their competitors. It allows them to generate revenue from sales made by its competitors. By having the latest bleeding edge hardware on the market sooner than most of their competitors, they are able to capture a larger share of power users and innovators. Samsung also owns a portfolio of licenses to modify and improve chips designed by smaller manufacturers ( Tofel, 2011). This allows them to modify and improve a large number of hardware components that they do not own patents for.
 * Smartphone hardware components manufacturing advantage **

ref 1: http://gigaom.com/mobile/why-samsung-is-about-to-become-the-smartphone-king/

North America, like most societies experiences social stratification. Part of Samsung’s current strategy seems to involve catering to most of the social classes. They do this by offering a wide spectrum of models ranging from low-end to high-end handsets. Samsung aims to have an affortable smartphone for the less wealthy, as well as high performance models for those who can afford to spend a large sum on a device. By targeting various social classes, Samsung is able to capture a larger market share.
 * Social stratification **

Current target age demographics (13-17, 55+)


 * Patent issues **

I don't have any citations in the patent section. Not sure if any are required since it's not bringing any new info from what you stated earlier... When discussing the political environment it was made evident that patent issues play a major role in the industry. This is extremely relevant for Samsung today due to the infringement claims made by Apple. The results of this case will be known in the future, but Samsung has already potentially lost time in its development of the next generation Galaxy phones. This could lead to a loss in competitive advantage in the near future. Making countermeasures to ensure such events will not happen again is a strategy Samsung needs to formulate if it has not already done so. Fighting off the current lawsuit from Apple will be good practice for creating arguments against similar claims in the future, and Samsung will be able to use its results as precedence in potential future lawsuits. With the high level of competition and low diversification in the field, the likelihood of future lawsuits is high. To minimize time in the courtroom and downtime in the development process of models that are affected by such cases is a big strategic challenge. It will be an ongoing process as more cases pop up across the industry and Samsung needs to be prepared should another one affect it.


 * Google Nexus future uncertain due to Google’s aquisition of Motorola Mobility **

While Samsung may not be currently affected by Google’s recent acquisition of Motorola (August 2011), it’s clear that Google plans to use Motorola as its own way of streamlining the Android market and enhancing competition in mobile computing. While Google will be running Motorola Mobility as a separate business, there are repercussions that Samsung will feel in it relationship with Google (Wauters, 2011). The Google branded “Nexus” phone is made by Samsung and is currently the flagship phone for the Android operating system. This kind of collaboration between Samsung and Google might not be possible again in the future, and Samsung will need to respond accordingly should that be the case. For now, the official response from J.K. Shin, PresidentSamsung, Mobile Communications Division is a humble  “We welcome today’s news, which demonstrates Google’s deep commitment to defending Android, its partners, and the ecosystem.” (Hardawar, 2011)

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 14.6667px; text-decoration: none; vertical-align: baseline;">Refs: Wauters, Robin. "Google Buys Motorola Mobility For $12.5B, Says “Android Will Stay Open”." //TechCrunch//. 15 Aug. 2011. Web. 8 Oct. 2011. <http://techcrunch.com/2011/08/15/breaking-google-buys-motorola-for-12-5-billion/>.

Hardawar, Devindra. "Android Partners “welcome” Google’s Motorola Mobility Buy." Venturebeat.com. Venture Beat, 15 Aug. 2011. Web. 8 Oct. 2011. <http://venturebeat.com/2011/08/15/android-manufacturers-motorola/>.