Question
Porter (2008) suggests that we look at competition too narrowly. He suggests that not only does a firm compete with its direct rivals, but it
Porter (2008) suggests that we look at competition too narrowly. He suggests that not only does a firm compete with its direct rivals, but it also competes with its customers, suppliers, substitutes and even potential entrants that may not yet exist. In contrast, Brandenburger & Nalebuff (1995) suggest that we think about competition too much and not enough about shared interests and potential collaboration. They suggest that analysing the interests of the different actors in the market can help us identify what shared interests we have with other actors, which helps us strategize better. Apple and Xiaomi are often seen as competitors to Samsung.
a. Discuss how Samsung competes with each of those two firms (i.e., Apple and Xiaomi).
b. Which one is the most direct competitor and why?
c. Discuss the nature of the competition between Samsung and each of those two firms.
d. Address the barriers for customers switching from Apple to Samsung and vice versa and the barriers for customers switching from Xiaomi to Samsung and vice versa.
e. Are they competing over things other than customers' money? If so, what? It is important to justify your response carefully.
Your text should focus on analysis and evaluation. A common mistake is to make extensive references to facts in the case, but not explain why the facts are important. It is the argument that is most important, facts should only be mentioned to support claims relevant to your argument. Please do not include any general information about Samsung or its background (e.g., when it was founded, by whom or general information from the case). Please, go straight to your argument.
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