The Report is all about Apple Law suite on Samsung on infringing iPhone 4 Design. Also, iPad design to market its own products somewhat similar to Apple. The report is evaluate key lessons that can be drawn to learn. Report draws effective lessons regarding international marketing environment and evaluates how different forces impact company’s ability to operate. The report also evaluates the mistakes and recommends possible actions that can improve company’s position in future.
Key Lessons From The Case Study
The marketing decisions are strongly responsive to the composition of the marketing environment. Political and legal environment are key determinants in enabling any internationalization process. Ease of doing business and protection of intellectual assets are the outcome of the political and legal environment. Patents encourage companies to innovate and gain sufficient benefits against them from the market however, if legal environment is not strong enough provide enough protection than a company investing in research and development would be at loss as other companies would easily copy their innovation to utilise them for their benefits.
Apple pioneered smartphone and tablet design, it’s innovative designs are iconic which, consumers readily recognise. Samsung to a great degree adopted Apple’s design of IPhone 4. Hence, it sparked a legal battle as Apple claimed it lost the level playing field. The legal laws protects company interests and provide legal cover to protect intellectual property. Ensuring a level playing field, legal frameworks have facilitated companies to compete in a global marketing environment.
Protecting innovations provide much needed assurance to make R&D investments lucrative. When intellectual property is not protected, imitating a company is more lucrative than fresh innovation. Moreover, as far as political environment is concerned there is a dominant perception of country of origin bias. Some circles believe American Court’s verdict was tilted more towards Apple Inc. and Korean’s endeavoured to protect Samsung’s interest. Nevertheless, political visions are guided by legal laws hence, in international environment bias is reduced when law is effectively enforced.
Apple’s Motivation to Sue Samsung: Potential Benefits
The primary driver of Apple Inc. was to curtail growth of Samsung and protect their market-share within the core home market. In global scenario, USA is most potent market to accrue revenues to ensure future growth. Secondly, Apple had invested in R&D to develop a user-friendly iconic design of iPhone which consumers were associating with. Moreover, design has been a core decision making factor in consumer buying process. Hence, consumer when evaluate the value generated from the product is not reflected by price they feel dissatisfied. The value difference in price is huge but is negligible in design, alters consumer’s decision. The consumer for cosmetic reasons would choose Samsung as it looks alike Apple and is cheaper. Later, user may identify functionality differences but that would be too late to influence the purchase decision.
Thirdly, Apple wanted to use this as a robust marketing endeavor. Apple Inc. wanted to gain nationalistic loyalty of its local consumers. Moreover, Apple was sending subliminal messages to the world regarding the integrity of Samsung when conducting the business. At one moment Apple was gaining on loyalties and on other hand, was disrupting Samsung’s image. Apple tried to portray Samsung as morally weak within the society. This was a huge blow to Samsung’s Goodwill and brand value.
Primarily, the battle was to ensure intellectual superiority, Apple Inc. had to send a strong message that they are true in their innovations. Furthermore, Apple Inc. want to boost their employee confidence. Apple Inc. sent a clear message to employees that when Apple innovate they protect their right at any cost. This also communicated to employees that their efforts to innovate will always be protected. Apple Inc. values every ounce of effort of its employees made to achieve excellence.
Financial reasons also remain at core level which motivated Apple Inc. to sue Samsung. The law suite deterred Samsung to imitate Apple’s design. Hence, the lawsuit protected Apple Inc. future revenues and integrity in the hyper competitive environment. Apple achieved a strong brand value and prestige in consumer’s mind. The law suite proved as a successful marketing campaign and strengthened the overall competitive advantage.
Advise to Samsung Board of Directors
In my opinion, to reduce the impact of judgements Samsung has to continue its fight to prove they have not infringed Apple iPhone 4 design. Similarly, they have to deny infringing iPad’s design. The core here is to gain some relaxation on the verdicts in their favor. As a consultant, I would strategize by focusing on the primary factor. The key focus areas is not to win the patent lawsuit but to ensure it doesn’t render serious damages to the company image. Furthermore, Samsung has to effective use its Public Relations office to effectively network with key stakeholders. Currently according to the case Samsung lost all international lawsuits except of Korea to some extent. This raises serious concerns in Samsung’s ability to cultivate relations and critically understand country’s legal framework.
The law suite outcome highlighted some of Samsung’s weaknesses. One of the most critical weakness was weak networking with key stakeholders. Samsung never involved all key stakeholders in the process of designing a law suite. Hence, Samsung failed to effectively design lawsuits in light of country’s legal and political system.
Recommendation
Now, Samsung has to use digital boom to crowdsource ideas and dive into concepts of cocreation. These tools and techniques would provide enough ideas and novelity to Samsung’s designs that they can prove their ingenuity once again. Furthermore, Samsung will ensure they can innovate beyond current limitations. Becoming more user focused and highly networked Samsung can focus on sustainability. Apple is Samsung’s major consumer. As a consultant my advice to Samsung is that they have to innovate fast and become reliable. They have to do so in order to ensure they have an edge over Apple. Moreover, Samsung will have to exert pressure on Apple in order to sustain their competitive advantage.
