Samsung is considering to pull out of its laptop market if it cannot make the market share up to 5.7% until 2011. Well, it is somehow surpriging there are selling a lot in Korean market. However, unfortunately, the market share in global market is too low comparing to other competitors : HP 23%, ACER 16%, Dell 14%, TOSHIBA 10%, SONY 6%, and Samsung 1.7%. One strategy to get more market share is to enter low-price market, but they don't want to do because it might hurt its brand image. It seems that Samsung is not doing well in international market although it has the biggest market share in domestic market. When I saw the market share rate in global market, the position of ACER and Dell caught my eyes becaue I had thought Dell had been doing better than that.
When Dell first came out, the innovative direct internet sale made them successful, and used to be talked among people as a good example as a company makeing customized products. After 20 years from that time, I mean now, HP is taking No.1 position instead of Dell. What happened to it? Apprently, its sales way was innovative at that time, but not now because other brands are also using the similar way. Yes, they were obsessed in the OLD successful moder while they were losing the market potentially and feasibly. They focused on only effiency in operationg inventories, but did not catch up the market changing fastly. Because of the weakness in making creative innovation, they had to move down from the No.1 position. Second, it attached importance to desktop PCs while laptop market was growing up and desktop market was reletively decreasing. Main customer in desktop market changed to companies and institutions, but they are not that much sensitive to the function of the computer, so product changing ratio was not high. Third, it treated the importance of soft competitive slightly. As the functional quality of PC of laptop brands is almost similar, customers consider soft standards like design and brand image when they purchase a laptop, so they want to see and experience directly before buying it. It means that the direct internet sales way gets weaker. Last, it seemed to lose its customer-focused mind and attitude. The satisfaction of customers become lower and almost reached to the industry average level. It happend because it filled their employees in call center as a temporary positions, so job change ratio got up to 300%. Dell wanted to keep low-price product as its strength, but it hurt many other important points. Now they know the problems they had and change its strategy to get back the No.1 position. However, interest thing I found was the Taiwani brand ACER got the 2nd position, so it becomes more difficult for Dell to be No.1 again comparing with when it was in 2nd position.
Anyway, we can learn a lesson from the case of Dell. The time we need to be careful the most is when we get the best position. This famous theory also used even in a fabler about a rabbit and a tutle.( I don't mean that HP was a tutle before, though) When you are satisfied and be loosen the pace, competitors will catching up soon. / posted by 20500580
