Samsung was, for several years, the leader in smartphone sales. However, recently two new companies, Xiaomi and Micromax, have overtaken them in the world’s two largest countries, India and China. Samsung’s sales have fallen 20%, earnings 60%. These are huge numbers that have been taking their toll on the company, and it’s stock price. What interested me is how two fairly new companies could outcompete the world’s biggest. What was the answer? Strategy. China and India are both countries with significant wealth, and poverty. Both Xiaomi and Micromax implemented a lost cost focus strategy in China and India respectfully, which has seemed to pay off.

Pictured above is one of Micromax’s smartphones. Not very often does a company outdo one of the world’s biggest, but this is proof that a well implemented strategy can reap rewards. In my mind, what these two companies have done is brilliant. Take the worlds biggest country, give them a cheaper alternative to a modern day necessity, and watch your company grow. I think this is a great lesson in strategy and how important it can be.

Other Sources:

http://www.businessweek.com/articles/2014-10-08/trouble-for-samsung-after-stock-swoon-is-the-worst-over#r=hpt-ls

http://www.businessweek.com/articles/2014-08-06/its-not-just-china-dot-samsung-is-falling-behind-in-india-too

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