Cbme 1 Case Study 1docx

HORCA JANINE G.
August 29,
2022
BSA 3
CASE STUDY NO. 1 SAMSUNG VS APPLE
INTRODUCTION:
 Apple vs Samsung case started on April 15, 2011 when Apple filed an infringement suit
on Samsung for copying not only its technology but also its design. Apple filed case in
US District against Samsung for copying Apple’s Innovative technology, distinctive user
interfaces and elegant and distinctive product and packaging design, in violation of
apple’s valuable intellectual property rights. Apple sued Samsung on Samsung Nexus S,
Epic 4G, Galaxy S 4G and Galaxy Tab. Apple and Samsung are correlated to each other
as Samsung is the world’s largest memory chip maker and Apple is the largest consumer
of flash memory. Apple buy flash memory from Samsung for its iPhone and iPad’s.
Samsung also manufacture A4 processor used in Apple’s original iPad along with
processor used in iPhone 3GS. They are the two big technology giants. Now Apple is
looking for new supplier of memory chip. Infringement cases are common in technology
but Apple’s complaint against Samsung is notable because it also focus on overall
product design and onscreen interface (Trade dress issue), which means Samsung has
copied Apple’s product design along with technology. The products which are in
question are iPhone 3GS, Samsung galaxy S i9000, Samsung galaxy tab 10.1. They are
challenged of having the same style, user interface and even packaging copied from that
of Apple’s product. As Apple sued Samsung of infringing its product and techniques,
Samsung also filed lawsuit against Apple’s iPhone and iPad for copying Samsung’s
wireless technique and user interface. In Korea Samsung alleged Apple of violating 5
patents, in Germany covered 3 cases, in Japan 2 and in USA 10 patent infringement case
is filed. Fight was initiated by Apple on April 15, 2011 and took globally by Samsung
including countries Germany, USA, Japan, Australia, South Korea and European Union.
I. TIME CONTEXT
 In 2005, Chang-Gyu Hwang—president of Samsung’s semiconductor and memory

business—traveled with two fellow executives to Palo Alto, to the home of Steve Jobs.
 In April 2011, Apple filed multiple lawsuits, spanning dozens of countries, against
Samsung for patent infringement. It demanded $2.5 billion in damages. Samsung quickly
countersued for
 infringement of five patents relating to its wireless and data transmission technology.
 In 2009, Steve Jobs sought to start a thermonuclear war on Android, the operating system
used in Samsung phones, when Samsung introduced their smartphone that looked similar
to Apple's.
II. PROBLEM
i. CORE PROBLEM
 Apple company decide to file federal lawsuit in the US district court to
Samsung company.
ii. SUB PROBLEM

 Samsung company accusing of copying some of its iphone features in
the Samsung Galaxy S II smartphone.
III. OBJECTIVE
 To devote its talent and technology to creating superior products and
services that contribute to a better global society.
IV. AREAS FO CONSIDARATION (SWOT ANALYSIS)

i. STRENGHT
 Samsung has dominated the smartphone market for years. According
to 2021 report by Gartner, Samsung has maintained the No. 1 spot
globally with a 19% market share in smartphone sales, whereas Apple
is in the second spot with 16.7% market share and Xiaomi in the third
spot with a 13.2 % market share.
ii. WEEKNESS
 . It is estimated that both Apple and Samsung combined sold at least
74% of smartphones in the USA market. While Samsung has
diversified its resources and expanded its operations in Asia, it is still
heavily dependent on the American markets.
iii. OPPORTUNITIES
 Samsung is preparing to launch its new air conditioning product called
the ‘Triple Protection Proposition’ that incorporates cutting edge
technology and impeccable construction. The product is geared
towards a target customer base that would ensure maximum customer
retention.
iv. THEATS
 Samsung has been involved in controversies that have threatened its
business. Its rival Apple filed a lawsuit against Samsung for patent
infringement which underwent a heated court battle for seven long
years until finally reaching a settlement.
 However, the company suffered consequences when a jury decided
that Samsung had indeed copied Apple and was to pay $1.049 billion
in damages. This suit damaged the company’s reputation and its sales.
v. ALTERNATIVE COURSES OF ACTION (ACA)

 Market penetration strategy conduct more research study on the
behavioual aspects of consumers in the electronic product industry to
determine what they want and what they need.
vi. RECOMMENDATIONS
 I would recommend that the elternative courses of action will be
implemented by Samsung to retain its no. 1 status. In developing new
products and in improving its existing products and in improving its
existing products , lower priced electronic product should also be
considered in order to develop markets and low and middle income
segments for its hight and products, it should develop a new
distribution system that will have exclusivity such as display shops
exclusive high end Samsung produts

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HORCA JANINE G.

 In 2005, Chang-Gyu Hwang—president of Samsung’s semiconductor and memory

ii. SUB PROBLEM

IV. AREAS FO CONSIDARATION (SWOT ANALYSIS)

v. ALTERNATIVE COURSES OF ACTION (ACA)

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