Smartphone Case

The macro-environment of smartphone sector is very complex and dynamic, especially in the technological aspect like the recent tablet invention. The aggressive competition between companies pushed them to adopt many kinds of actions and strategies to protect their position in the market and to anticipate any unexpected changes in the future. In fact, like military, companies take the position of attacker or defender.

One attack strategy which is called bypass technic is materialized by new ideas, concepts and a high hardware and software innovation. For example, with the sleek and beautiful design of Samsung and iPhone the longtime leader Nokia had been easily overtook. However, this basic strategy requires a huge investment in research and development and particularly in Android operating system including downloads, videos, photos, blogs, internet surfing, etc.

Moreover, companies can also attack directly their competitors with reducing prices and improving quality to satisfied customers and to enhance the brand image. This strategy was used by iPhone in 2007, by reducing the price from $599 to $399 - a 33% rebate - after only 3 months from the initial product launch. Nonetheless, this decision has been judged as a mistake for the reason that Apple most faithful costumers have rightfully felt being betrayed and exploited. They could have waited 6 more months before reducing the price of the iPhone, or they could have delayed the iPhone launch for 3 months, or they could have decided to price the iPhone at $399 since the initial launch.

and since July 2008, the iPhone 3G is sold at $199, 50% less than the September 2007 price, 66% less than the launch price of just one year earlier. Like those mistakes prove that direct attack strategies require a perfect policy prices.