The paper "Apple Inc. and Samsung Electronics Co. Face off in Court" describes that Apple Inc. filed a suit against Samsung Electronics Co. after finding details that its patented software for rubber banding is allegedly copied in 21 Samsung smartphones. …
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Apple asserted that Samsung made their devices so identical that customers could perceive those products, produced by Samsung, as made by Apple. A Research carried to this effect, based on witnesses’ testimonies indicated to the court that a substantial number of consumers has confused Samsung tablet computers and smartphones as Apple products.
In response to the accusations, Samsung Electronics Co. Countered the claims, arguing that the technology applied on their Galaxy phones and Tablet computers require two fingers in scrolling as opposed to one finger technology applied by Apple Inc. In addition, Samsung claimed that their products do not bounce at the end, to signal users that it has reached the edged.
This case presents allegations of a higher gravity, owing to the nature of the products involved, the investments and technologies applied and the large firms. It is a case that could impact greatly on either company once a determination is given. However, the case is still being pursued and Samsung is yet to present its witnesses and testimonies to refute the allegations made by Apple Inc. It is understood that registering products for patent or for intellectual property rights, is a part of the many strategies in business leveraging and in ensuring that their innovations and privacy will not be breached by other companies engaged in similar businesses. In the light of this, Apple its products with an aim of presenting distinction and excellence, and to realize what it is known for, dictating what the customer needs.
If details of the invention and innovation are permitted to be copied, the company which originally made the product will lose their profit margin. This could adversely impact on its internal financial management, marketing strategies and operational budgets. This illustrates how the breach of patents could impact the marketing and production of their products. Business is competitive leveraging to satisfy consumer’s wants and achieve company’s target. It is about earning the return on investment. It is an intellectual right. It is justified therefore to bring to court those who pirate products.
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However, Samsung has outlets all over the world and its presence continues to grow into emerging economies around the world. Samsung is involved in the manufacture, distribution and sale of consumer electronic products and devices all over the world (Bloomberg, 2012).
There were two sectors in the development of the Korean electronics: labour-intensive consumer products and integrated circuit (IC) assembly. One of the top players in the manufacturing and exporting of electronics products in Korea was Samsung (Steinberg, 2010).
With gross revenue crossing $117 billion, it is well on its way of becoming the largest electronics group in the world. The Samsung Company manages more than 65 networks and branches across the globe, having as many as 157000 employees. Currently, Samsung electronics manufacture and sell a wide range of home appliances and electronic devices including personal computers, display systems, refrigerators, washing machines, microwave Owens, mobile phones and so on.
and Samsung Electronics are some of the major players with subsidiaries across the globe owing to their huge customer base. Apple Inc. mainly manufactures computers, mp3 players, and smartphones while Samsung Electronics is involves in the manufacture, distribution, and sale of a wide range of products including televisions, digital cameras, smartphones, audio and kitchen appliances.
In this condition Samsung and all the other companies in this industry try to protect their position either by product differentiation or by cost reduction. If we look at the five competitive porter forces, we can say that the threat potential new entrants Is very low because a lot of capital expenditure is required in order to setup a firm in this industry and also because many of these firms are protect by patents.
Among a large number of competitors certain companies and products are only able to create and sustain strong and powerful brands in the electronic market. Samsung is one of the successful brands in the electronics industry. The company has been building its brand image through product investments, consumer research and advertising and product promotions.
Their ability to decipher and create business opportunities and exploit market conditions became their major asset in making inroad in areas where big players line Samsung, Sony, Matsushita, IBM, Motorola etc. were already well established with huge financial resources,
Samsung experienced changes both externally and internally. While market leaders like Sony, Nokia and Motorola were offering new consumer products, Samsung had a limited range of cheap products.The person advocating changes must be able to convince his team of the need for change and show results quickly.
Products are of very premium categories. Samsung believes in filling the market with their products. They offer products ranging from premium to middle targeting customers from all categories. Samsung always maintains good mixture of different products. From
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