Strategy Content – Evaluating Samsung’s Crossing the Chasm (CTC) Strategy

Assignment 2: Strategy Content – Evaluating Samsung’s Crossing the Chasm (CTC) Strategy
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Executive Summary
Samsung is a leading smartphone brand worldwide with solid brand loyalty and customer retention rate. A recent news article highlighted Samsung’s ‘Crossing the Chasm (CTC)’ strategy by expanding folding smartphone segments to compete with existing players. The article discussed that emerging Chinese brands like Huawei, Lenovo, Oppo, and Honor threaten Samsung. Chinese brands also introduced similar product designs at competitive prices. However, Samsung pioneers product design by capturing innovators and early adopters. The CTC strategy made Samsung a value brand with the potential to win smartphone warfare with Apple in the global marketplace. Samsung developed the CTC strategy by leveraging its Blue Ocean strategy and focused differentiation. The strategy reflection found that Samsung’s CTC strategy effectively empowers the brand’s reputation by offering value innovation to customers.
Organization Overview
Recently, Samsung Electronics (Samsung) launched two new smartphones to expand its flagship Galaxy series. The new models expanded the folding smartphone segment pioneered by Samsung. The company confirmed that the new models, ‘Galaxy Z Flip 5’ and ‘Galaxy Fold 5,’ would reduce emerging competition from tech giants like Apple Inc. (Apple) and other Chinese manufacturers. The news article further confirmed that the folding smartphone series is Samsung’s ‘Crossing the Chasm (CTC)’ strategy to fend off Chinese manufacturers penetrating a similar segment (Browne, 2023). Samsung exercised CTC through its folding smartphones, which Apple implemented earlier in FY2007 to disrupt the smartphone industry. Exhibit 1 contains the e-news published by The Guardian to share a complete report about the CTC strategy adopted by Samsung by introducing the folding smartphone segment.
Samsung is a Korean-originated brand that manufactures consumer electronics for the global market. Found in 1969, Samsung ranks in 14th position in the Forbes list of ‘Global 2000.’ Samsung specializes in manufacturing television, smartphones, wearable devices, digital appliances, network systems, and other product segments to dominate business-to-consumer (B2C) and business-to-business (B2B) divisions (Forbes, 2023). Samsung generated global revenue of $244 billion, having a significant contribution from the smartphone division. Samsung has been a global leader in the smartphone division since the first quarter of FY2023. The company acquired a market share of 22.5% and surpassed Apple, particularly after launching the folding smartphone series (Laricchia, 2023). Samsung is the main competitor of Apple. The two brands acquired over 50% market share of the global smartphone industry and initiated an infamous brand war. This research will reflect on Samsung’s choice and feasibility for CTC to retain its global market leadership in the smartphone division.
External Analysis
The external analysis examines the fundamental influences of emerging opportunities and threats in the macro business environment. External analysis indicates the forces influencing a company’s strategies and decisions to sustain its industrial position. Threats would influence the brand’s competency to remain competitive since resources become less effective. However, opportunities are areas to grow and utilize resources by adopting sustainable strategies (Hill et al., 2019). This section will reflect on Samsung’s position in the external business environment.
The external market environment for Samsung remains feasible worldwide. According to Statista (2023), the smartphone market forecasts annual growth of 2.54% until FY 2028. China remains a leading marketplace for Samsung to push its folding smartphone models since the country reported the highest demand for smartphone devices. Chinese consumer market value is anticipated to reach USD 119.2 billion by FY2023. Leading smartphone brands like Samsung and Apple could generate USD62.36 revenue per capita globally by maintaining a competitive advantage and opting right strategic choices to align actions with emerging trends in the macro environment. The report further reflected that smartphone devices would increase demand in emerging economies. Geographical locations like the Middle East and North Africa (MENA) region are undergoing economic revamping. Demand for new tech-based industries establishes a robust requirement for continuous communication, creating a robust ecosystem for Samsung and other smartphone giants (Statista, 2023). Samsung has feasible market conditions in emerging economies, particularly in the MENA region.
The MENA region has a fundamental scope for new smartphone devices, mainly offered by Samsung and Apple, the two most recognized industry giants. Oluwole (2023) indicated that Samsung is pushing sales of Galaxy devices in the African region. The brand detected rapid urbanization and proactive participation in the global economy by countries like Ghana and Kenya. Participation introduced a complementary demand for featured smartphones offered by leading brands, notably Samsung and Apple. Besides, the emergence of 5G services revolutionized the global telecommunication sector in African countries. Feasibility for modern devices manufactured by Samsung and Apple would experience a breakthrough in the emerging ecosystem (Oluwole, 2023). Hence, qualitative and quantitative elements of the macro business environment support the robust growth of Samsung worldwide, leveraging its CTC strategy to compete with other players entering the landscape in the long run.
Internal Analysis
Samsung’s internal environment is highly favorable to leading the global smartphone industry. According to Hill et al. (2019), progressive companies use the Blue Ocean strategy to differentiate products at cost-...