Following the decision of Japan’s Sony in selling their PC division to Japan Industrial Partners, ceasing the design and development of any PC products, including their Vaio computers, Samsung has announced the end of their sales of laptop computers in Europe, reiterating many of the business model and strategic concepts discussed in class.
Due to the “drastic changes in the global PC industry”, Sony has decided to concentrate on the smartphone and tablet lines whislt splitting their TV division into a wholly-owned subsidiary. As seen on the Business Canvas Model under revenue streams, Samsung’s Chromebook outsold many rivals due to its low cost; however, there were slim margins of profit, signalling Samsung to adapt to the market needs and demands. They have recognized value propositions in “phablets” (phone-tablets), thus shifting their focus from laptops, where according to technology consultant Windsor Holden from Juniper research, “from a consumer’s perspective, where the strength of [Samsung] lies”. In renewing their focus on mobile devices, there are more opportunities of re-positioning.
According to Ries and Trout, a crucial component of product positioning is getting into the mind of consumers through an unique position. Samsung is set to establish themselves in an unoccupied position, with its soon-to-be-released Galaxy Note 4 smartphone with an add-on virtual reality headset. I think that Samsung’s incorporation of virtual reality technology may be the value proposition that solidifies their unique position in the fierce technology market full of strong players like Apple and Lenovo.
Samsung’s wireless headset, the Samsung Gear VR Innovator Edition launched with the Galaxy Note 4, Wednesday, Sept. 3, 2014 (AP Photo/Markus Schreiber)| Associated Press,
Works Cited
Kelion, Leo. “Samsung ends laptop sales in Europe.” BBC News. BBC, 24 Sept. 2014. Web. 27 Sept. 2014. <http://www.bbc.com/news/technology-29350022>.
Masill, Ben. “Samsung Gear VR is better than Oculus Rift.” PC & Tech Authority. NextMedia, 24 Sept. 2014. Web. 29 Sept. 2014. <http://www.pcauthority.com.au/News/392428,samsung-gear-vr-is-better-than-oculus-rift.aspx>.
“Product Positioning.” QuickMBA Knowledge to Power Your Business. QuickMBA.com, n.d. Web. 29 Sept. 2014. <http://www.quickmba.com/marketing/ries-trout/positioning/>.
Schiesser, Tim. “Sony sells off Vaio computer division, restructures TV business.” TechSpot. TechSpot Inc, 16 Feb. 2014. Web. 27 Sept. 2014. <http://www.techspot.com/news/55581-sony-sells-off-vaio-computer-division-restructures-tv-business.html>.
“Wholly Owned Subsidiary Definition | Investopedia.” Investopedia. Investopedia, A Division of US MAC, n.d. Web. 27 Sept. 2014. <http://www.investopedia.com/terms/w/whollyownedsubsidiary.asp>.