Friday, May 17, 2013

Innovation became Trendy and Tipsy!



Samsung is here and now; it’s dominant in TVs and sells a lot of washing machines, but its smart phones that made Samsung as a recognizable presence around the world. If Samsung isn’t yet a lustrous brand like apple, its finding success as the anti-apple-Galaxy Smart phones outsells iPhones. And Samsung probably the only other company that can throw a product introduction and have people lined up around a city block, as they did in the New York City on March 14 for the lunch of   Samsung Galaxy S4. 

Innovation or research show-off is the key (here, research show-off refers to “first mover win the race strategy”). Companies like Sony, Panasonic, and GE etc.Did what Samsung is doing. Except in the area of analog consumer electronics; they refined and miniaturized existing technology and took it to the max.How ever they didn’t lead the next wave of innovation-digital consumer electronics. In the brave new world, Samsung jumped in with both feet and exploited an industry with no entrenched leaders. 

Mr. Lee may have more depth than apple’s job and more long term thinking than perhaps any other US based MNC’s Ceo, despite the mafia like control and secrecy he espouses. Samsung now sells more and is worth more than any giants like Sony, Panasonic, etc. Combined. Think about that, if you have predicted that in the 90’s, you would have been laughed out of the room. 


The S4 is interesting because it potentially represents the juncture of innovation, or lack thereof. It is the S3 taken to the max (The galaxy S3 has been far and away the single most successful android phone for one undeniable reason.), but doesn’t represent “the next big thing” .Rather, it’s like every iPhone after the original-an evolutionary improvement, and not something that truly new and different (like the iPhone was compared to the former smart phones).





The marketing onslaught is helping Samsung widen the gap as market leader. Samsung is estimated to have held 28% of the global smart phone market share last year up from 20% a year earlier, according to IHS Isuppli. Apple Inc. share, meanwhile, isn’t rising as quickly, moving to 20.5% in 2012 from 19% a year earlier.(Although, apple’s market value is $ 413 bln is nearly double of Samsung’s market value of $217bln market cap)

The next time may see a new wave of innovation. Who leads up is in the air.

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