Strategy Analysis of Bangladesh Smartphone Industry in 2013-14

From the Perspective of Competitive Dynamics

Md. Nafis Bin Islam ZR-04Nabila Nazneen RK-34Imran Chowdhury ZR-47Saimon Imtiaz ZR-56

Md. Iftekharul AminAssistant Professor

Institute of Business Administration (IBA)University of Dhaka

Submitted To:

Prepared By:

Current Smartphone Industry OverviewMarket PlayersOverview & Strategy

Market Leader Challenger Follower Niche

Content Overview:

Industry Overview: Smartphone industry in Bangladesh is growing at an exponential rate- seeing around 140 percent growth every year

Currently there are 21 million smartphone users in the country

Over 20 home-grown and foreign brands in the market

No smartphone manufacturing plant in Bangladesh, lion share of handsets exported from China and re-branded here

Local companies gaining market share, foreign ones' declining

Reference: http://www.thefinancialexpress-bd.com/2014/05/31/36894

The major players in the smartphone industry are –

Symphony Samsung Walton Nokia

Market Players

As of May 31, 2014, the market shares of the companies are:

Reference: http://www.thefinancialexpress-bd.com/2014/05/31/36894

Market Players

55

13

12

8

44 4

Market share of smartphone manufacturers in Bangladesh

SymphonySamsungWaltonMaximusNokiaMicromaxOthers

With 55% market share, Symphony is the current Market Leader.

Samsung is at 2nd position with 13% market share & is the main Market Challenger for Symphony.

Presently, Walton is the Market follower with 12% market share

With a smaller, specified customer segment, we are considering Nokia as Market Niche with 4% market share.

Market Players

First Symphony smartphone was produced in 2008

First company to introduce dual SIM and QWERTY phone in Bangladesh

Pricing ranges between Tk 3,700 to Tk 26,000

Has own App and VAS stores

First Bangladeshi brand to be in a leadership position in local smartphone market

Reference: http://symphony-mobile.com/index.php?route=information/information&information_id=4

Company Overview: Symphony

Strategies like cost control through aggressive pricing strategy, product differentiation such as contemporary features and style are among the prime strategies of symphony to hold their market share.

Also, a country-wide distribution network and customer service center with ATL(above the line) help defend its market position.

Strategies of Market Leader [Symphony]

To become the market leader, Symphony did pro active marketing to capture and expand it’s market share. They did anticipative and responsive marketing.

They also employ defensive marketing strategies such as position defense, flank defense, counter offensive defense in response to attacks from market challenger.

Strategies of Market Leader [Symphony]

Pro Active Marketing: Responsive marketer finds a stated need and fills it & anticipative marketer looks ahead to future needs of customers. Two proactive skills that Symphony use are ---

Responsive Anticipation: Symphony observed the tendency of peoples’ using SIM cards of multiple operator in Bangladesh & was the first cell manufacturing company to bring mobile sets with dual SIM feature.

Creative anticipation: In response to the increasing demand of tablets (7 inch to 10.1 Inch) in the market, they have introduced a hybrid between smartphones and tablet “Phablets” in the market.

Strategies of Market Leader [Symphony]

Defensive Marketing Strategies: Position Defense: Through price leadership, symphony solidifies its

position in the consumer minds. Consumers view Symphony as a brand that provides latest technologies in minimal price. They have smartphones ranging from 5,000 taka to 30,000

Counter Offensive Defense: In response to Walton’s new Primo ZX and Samsung’s Galaxy Grand they have launched Xplorer Z IV which has better technology with lower price than the other competitors.

Flank Defense: They have different smartphone models that are similar to their flagship model which act as flanks. & defend against possible attacks.

Strategies of Market Leader [Symphony]

International brand, worldwide market leader with 24 percent market share

Focuses more on high-end devices at higher price

Product pricing ranges from Tk 7,500 to Tk 80,000

Refernce: http://gadgets.ndtv.com/mobiles/news/samsung-vows-changes-after-mobile-profit-plunges-613809

Company Overview: Samsung

Frontal Attack

Using its vast infrastructural and financial resources, Samsung it taking on Symphony by coming up with products that are equal in quality, and sometimes even better.

For example, Samsung S Duos model offers the same features as Symphony's RX2 or VX2 in a similar price range, while Samsung's model promises higher brand value and service.

Challenger Strategies of Samsung

Bypass attackSamsung have capitalized on the high-end range of smartphones

where Symphony or even Walton are absent. Its Galaxy line of smartphones is the highest selling high-end device in the country, thus creating a profitable bypass for Samsung.

Encirclement AttackWith a product line with varying quality and price range as low as

Tk 7,500 to Tk 80,000, Samsung is launching encirclement attacks on the market leader. The aim is to lure customers with cheaper promotional offers (combined with guerrilla attack tactics) and then steadily push them to upgrade.

Challenger Strategies of Samsung

•Started production in 2009

•Marketing mantra - “A Walton phone in every hand”

•Production line includes 22 different models of smartphones running Android operating system

•Pricing for smartphones range from Tk 3,990 to Tk 30,990

Reference: http://www.waltonbd.com/index.php?route=product/category&path=85

Company Overview: Walton

Walton uses imitator strategy & adaptor strategy to win some new customers and to hold current ones.

Imitator: As an imitator, it copies some features from some existing popular models, such as design but differentiates in packaging, pricing, location etc.

Follower Strategy of Walton

For example, Walton named one of it’s latest models as Primo S3 which is similar to Samsung’s Galaxy S3. But, the design is different.

Samsung Galaxy S3

Walton Primo S3

Samsung Galaxy S2 Walton Primo s2

Adaptor: Some of Walton’s available smartphones are improved versions of some other existing models of leading brands.

The design of their previous model Primo S2 was adapted from Galaxy S2 and the LG Nexus 5. It was not a counterfeit copy but front design was similar.

Follower Strategy of Walton

In Bangladeshi handset market since 1997

Was market leader with around 52 percent market share even in late 2005

Symbian operating system-based Nokia handsets saw sharp decline following Android's emergence starting from 2009

Reference: http://mushfiq009.wordpress.com/%E2%80%9Coverview-of-mobile-telecommunication-industry-in-bangladesh-%E2%80%9D/

Company Overview: Nokia

Nokia refused to join the Android platform, instead partnered with Microsoft to introduce Windows phones

Nokia's Windows-based Lumia line now holds 3.3 percent market share worldwide, and around 4% in Bangladesh

Nokia introduced three Android-based handsets in late 2013, but abandoned the initiative due to disappointing sales

Reference: http://blogs.strategyanalytics.com/WSS/post/2014/10/31/Android-Captures-84-Share-of-Global-Smartphone-Shipments-in-Q3-2014.aspx

Company Overview: Nokia

Market Niches offer high value achieve lower manufacturing cost & specialized in their targeted customer segment. Nokia shows the following niche characteristics:

Very selective people prefer windows to other smartphone OS. Nokia is popular in this customer segment with their innovative Lumia smartphones.

Nokia is also expanding their niches with the latest and most updated windows OS (Windows 8 mobile) which is more flexible to use with other devices run by Windows 8 operating system (laptops, tablets etc).

Nokia has improvised on their smartphone cameras & targeting the customers segment who are enthusiastic about mobile photography.

Strategy of Market Niche [Nokia]

Strategy of Market Niche [Nokia]

PHOTO LUMIA mobiles

Provides cross-platformWindows operating system support

Nokia Lumia 1020 has 41 megapixel camera,

unprecedented in the smartphone industry

References1. Abrar, M. (2005, December). Overview of telecom sector. Retrieved November 5, 2014, from Bangladesh Study: http://mushfiq009.wordpress.com/%E2%80%9Coverview-of-mobile-telecommunication-industry-in-bangladesh-%E2%80%9D/2. Android captures 84 perecent share. (2014, October 5). Retrieved November

5, 2014, from Strategy Analytics: http://blogs.strategyanalytics.com/WSS/post/2014/10/31/Android- Captures-84-Share-of-Global-Smartphone-Shipments-in-Q3-2014.aspx3. Company Overview. (2012). Retrieved November 5, 2014, from Walton Bangladesh: http://www.waltonbd.com/index.php?route=product/category&path=854. Samsung vows changes after profit plunge. (2014, October 15). Retrieved November 5, 2014, from NDTV: http://gadgets.ndtv.com/mobiles/news/samsung-vows-changes-after- mobile-profit-plunges-6138095. Smartphones soaring in Bangladesh. (2014, May 31). Retrieved November 5,

2014, from Financial Express: http://www.thefinancialexpress-bd.com/2014/05/31/36894

Thank You!!!