Being a “fast follower” and investing in research and development has historically helped Samsung creep up on and capture some of Apple’s market share. To continue enjoying profitability in the consumer electronics market, Samsung has rolled out a new and highly visible marketing strategy, with emphasis on the smartphone market. By subverting Apple’s cool factor in its most visible marketing campaign, it’s making their products appealing to the market segment where a large portion of buying power resides- teens and 20-somethings. Their basis of their competitive advantage lies in their value proposition, responsiveness to trends, and ability to work with complementary companies to provide products that the consumer truly wants. Samsung’s current strategy seems to be effective, as it is profitable and seen increasingly as a true competitor to Apple, but that isn’t to say that there isn’t room for improvement.

The consumer mobile phone market is incredibly competitive, with only two companies (Samsung, Apple) successfully turning a profit. Apple is the largest portion of this market and has a strong foothold on consumer behavior and trends, and has been such an influential market leader for such an extended period of time that they have become the standard by which all smartphones (and tablets) are measured, and the standard that myriad competing companies have failed to meet.

Enter Samsung, a long-time producer of consumer electronics. In a market where a consumer had either an iPhone (Apple), or an “Android phone,” (all other competitors), Samsung has started to become a relevant and recognizable solution provider, with a product that many liken to Apple. Specifically regarding the business-to-consumer, and largely homogeneous mobile phone market, Samsung’s primary challenge is communicating two largely opposing ideals: value and style. The United States consumer market for smartphones is large and unrestrained to a particular demographic: middle class children in their pre-teens want smartphones to keep in touch with friends just as much as businesspeople staying on top of their work. Apple has perfected the approach to these varied demographics by offering a controlled and intuitive experience, where Samsung’s products, and therefore the user experience, are at the mercy of the maturity of the operating system it is running. What Samsung offers that Apple doesn’t is flexibility; Samsung offers products at different price points, with different carriers, and complemented by varying carrier service options.

Among the factors influencing the consumer electronics market is the whisper that Apple may have run out of steam- that their monopoly of most of the high-end consumer electronics market may be ending. Is the recently announced Apple Watch the new tide, or the nail in the coffin? How does it stay relevant, as competitors are able to offer increasingly similar yet more value-driven products? Apple’s primary draw is still that it is such an exceptionally loved product- millions of iPhone allegiant consumers will simply not try another brand of smartphone. Apple’s cloud interoperability and cooperative features between Apple products (watch, phone, computer, home entertainment) keep the family of products- the brand- relevant and useful, even as competitors surpass Apple hardware capabilities.

Since the market for most consumer electronics is elastic, Samsung must be able to offer its product at a price competitive with companies looking to undercut Samsung. In the mobile phone market, where prices are largely inelastic for both phones and carrier service, Samsung must convey style and value over Apple’s product offering.

Strategy: Stay Profitable, Visible, and Relevant

Truly, part of Samsung’s success can be attributed to its diverse product offering. Capitalizing on this, and capitalizing on its ability to work collaboratively with complementary companies and industries, Samsung should continue to look for collaborative opportunities. Samsung’s largest competitor in the consumer electronics market is infamous for being inflexible. Capitalizing on this, Samsung can venture into markets that require cooperation, such as social media, consumer electronics, and advertising to find synergy and develop new and envelope-pushing products and services. Even within its own products, Samsung should look to develop and market a family/suite of consumer electronics and lifestyle solutions. For example, developing software that allows a consumer’s Samsung smartphone to interact seamlessly with the consumer’s Samsung television, computer, and washing machine to make the user’s life simpler and allow them wireless access to all of the things important to them.

While Samsung is successfully maintaining a foothold in the mobile phone market, neglecting its other product offerings would be a misstep, especially because the mobile phone market is so competitive and so successfully controlled by Apple. In this market, Samsung needs to continue to develop brand recognition. Apple has shown that the mobile phone market is not just a game of “bigger, badder, better,” it is a game of style and finesse paired with reliably intuitive products. To continue gaining market share, appealing to the opinion leader is essential; Samsung is establishing itself as a differentiator with value and appeal. While the current marketing strategy is helping them hold their ground, Samsung should take the focus away from subverting competitors, and move towards demonstrating their value to consumers.