In Korea, domestic mobile phone brands take up almost 90% of market share. Such market
dominance was mainly driven by high customer loyalty to Korean brands and advanced technological prowess of Korean handset manufacturers.
However, upon its arrival, iPhone started to reshape the market landscape. Smartphones
became a new market trend. Hit by so called ‘iPhone shock’, Korean mobile phone makers
lost their market hegemony and ended up falling behind the trend.
Against this backdrop, this thesis aims to study why Samsung and LG Electronics lost ground to Apple, a newcomer in the mobile phone business, by analyzing the competitiveness of iPhone, the mobile phone industry before and after the launch of iPhone, and relevant
policies and the strategies of Samsung and LG.
It was the absence of ability to create new market that made them underperform in the
smartphone market at the beginning. They adhered to shortsighted policies and second-mover strategies under which they only focused on maintaining existing profits instead of creating new market.
I also found it interesting to see the gap in the market share between Samsung and LG
since the iPhone shock swept the Korean market. Samsung managed to manufacture new
products that rival Apple; whereas, LG saw its brand value falling. Behind this gap were their different positioning strategies. While Samsung strived to be the best, LG only tried to stay in
the top tier. This determined the pace and quality of response to the rapid change in market
environment, which ended up widening the gap in the market status.
The study on the smartphone strategies of Samsung and LG before and after the iPhone launch in Korea
[Seoul]:KDI School of Public Policy and Management
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < IT|
|Holding||KDI School of Public Policy and Management|