Samsung Mobile: Market Share and Profitability in Smartphones

In December 2015, South Korean technology giant Samsung announced a new head to its mobile division. The announcement came on the heels of a challenging year for Samsung. Two handset launches that year had received criticism in the press for the way they were handled. The appointment was interpreted by many in the industry as Samsung signalling a desire to further intensify innovation in an increasingly commoditized product area. This was a time of intense challenge but also great promise. Complex questions involving significant trade-offs had to be answered. Should the mobile division push for profitability or market share? Were those objectives mutually exclusive? What was the best strategy for obtaining the chosen objective? And, how could Samsung differentiate itself in an increasingly crowded, competitive, and commoditized market?