Overview of the smartphone and tablet computer market worldwide:

Apple and Samsung are the two world leaders in manufacturing smart phones and tablet computers. These two companies enjoys 50% of the whole global market share of smart phone and tablet computers which worth nearly $219 billion. This way both the companies are among the global giants in selling technology products and services.

Apple uses the self-made itunes stores for offering various kinds of applications to its customers. Samsung on the other hand uses the software market of Google called Android for supplying its customers with the latest applications. This way both the comapneis are offering to the public with latest variety smart phones and tablets with well equipped software and applications to meet the present day requirements of the people.

Apple in year 2012 sold nearly 66 million i-pad around the globe and therefore became the top seller in mobile selling market. The very next year Samsung took over the market and took 32.65 of the market share causing Apple a market loss from 25% to 17%. There started the rivalry between the two technological giants.

Apple Incorporation was established in year 1977. It is actually Californai based technological company. The company dealt with the manufacturing and sales of computer goods and other electronic devices. Samsung was established in year 1969 in South Korea. The company was earlier engaged in making electronics devices like LCDs, LEDs and others. However by year 2007, the company started making smartphones which proved to be huge success for the company. Both these companies are actually business partners. This is so because 25% of the Apple iPhone parts made by Samsung, and Apply contributes to 2.9% of the total Samsung revenue which is huge.

Implications of Apple’s lawsuit on the Smartphones and Computer Tablets:

The law suite was first filed by Apple on Samsung on 15^th April, 2011. The implications of the Apple’s law suite on the smart phone and computer tablet were as follows.

Apple Inc alleged Samsung for copying the core design aspects of the smart phones and computer tablets. This way the company claimed that all the mobile phones and tablets made by Samsung are actually copies of its smart phones.
Apple Inc claimed that the damage of US$2.5 billion is suffered by the company due to the activities of Samsung in the global arena. The charges of damage were based on the loss of business that the company had to suffer due to the sale of Samsung Smart phones instead of Apple Smart phones.
Apple inc wanted that the Samsung company should hold selling its galaxy tables and Smartphones in USA. Therefore the company wanted that Samsung should stop selling its smart phones in the United States so that the earlier effected sales of the company which fell from 25% market share to just 17% market share could be revived.

In the counter sue Samsung claimed that Apple Inc designs infringed their own patents. Also the company stated that Apple Inc was making unfair use of the standard patent to enable compatibility of the gadgets. This way Samsung made counteract by registering cases against Apple in 9 countries.

Identifying and dicusssing key lessons:::

The key lessons that were drawn from the case study about the impact of the political and legal environment in the international marketing include the followings.

Verdicts:

1. Germany barred Samsung from selling Galaxy Tab 10.1:

The verdict in Germany clearly stated that the Samsung was considered guilty of fringement case for Apple designs for smartphones and computer tablets. This shows that the company was unable to secure its rights and prove its innocence before the court of law in Germany.

2. UK overruled the Apple claims of infrigements of iPad design as they were more cool than Samsung.

The UK court overruled the claims of Apple for infringement of iPad thereby supporting the business of Samsung. However the basis of overrule was demotivating as the judge in the judgement stated the reason for non infringement to be less cool product of Samsung than Apple.

3. In Europe, Samsung claims of violation of wireless patent by Apple was rejected.

Samsung losts is case in Europe where the claims of violation of wireless patent by Appled was rejected by the court of law. This shows that the company was unable to secure justice and achieve faith in the European continent.

4. In Australia, Samsung won the case allowing the sale of Galaxy tablets.

Samsung won the case in Australia which allowed the sale of its Galaxy tablets phones. This way the company was able to administer legal and fair judgment in Australia.

Therefore after the law suite was first filed by Apple on Samsung on 15th April, 2011, there were series of more law suits filed in 9 countries. Apple Inc alleged Samsung for copying the core design aspects of the smart phones and computer tablets. This way the company claimed that all the mobile phones and tablets made by Samsung are actually copies of its smart phones. In return the company demanded the damage of US$2.5 billion is suffered by the company due to the activities of Samsung in the global arena. The charges of damage were based on the loss of business that the company had to suffer due to the sale of Samsung Smart phones instead of Apple Smart phones.

Scrutinizing verdicts of South Korea and U.S:

The brief scrutiny and critique of the outcome from the courts of Korea and United States through verdict could be analysed as per the following implications.

1. South Korea court gave dual justice:

In South Korea, the court ruled that Samsung did not apply any infringement on Apple Patents’ therefore the company should pay each other compensation. That is Apple was ordered to pay 40 mllions Korean won or US$30,000 for the loss to Samsung and Samsung was to pay 25 million Korean won or US $22,000.

Critically the court verdict in South Korea did not favored the national company which was bringing huge profits and gains. As a result the company had to suffer huge loss and pay big amount as compensation in the United States. Thus an unfair treatment by the court of law in South Korea, where the court did not took decision in the best of national interest as the Samsung company was indigenous born and had been paying huge taxes and support to the country and countrymen. However on the ground of fairness, the court of law gave the best decision possible. Therefore instead of falling in traps of other factors, the court of law in South Korea gave its decision on the facts presented to them.

2. Court ruled against Samsung In the United States:

In United States, Samsung was found guilty and asked to pay US $ 1billion. This was a big blow to the company which affected its sales and future earnings in the U.S. The result was the company was incapable of selling its mobile phones and tablets in U.S and even have to bear the fine amount.

Critics are of the view that the companies should have tried for out of court settlement. Out of court settlement should be tried through which a mutual consent and agreement is achieved for the coexistence of both the companies. Also efforts should be made to bring in latest software applciations, new innovations, latest product deisign and aggressive marketing so that the company products remain in demand. This way the interest of both the parties could be secured and achieved.

Suggesting the board:

On assuming that I have been appointed as a consultant to Samsung, I would advise the board for the various potential methods that the firm could deploy through strategies to mitigate the impact of various judgements around the world. These suggestion would include the followings.

To devise new design and products and getting them registered and patented to mitigate future chances of issues rising out it.
To bring in new software applications and features in the Samsung products so that the customers from around the globe including U.S. make demands for the company products.
The company should concentrate on the Non U.S markets where it has tight controls in the mobile and tablet markets. Therefore effort should be made to increase the company market share in these markets.
The most favorable markets for Samsung is China and India which has the 1/3^rd of the world’s population. These nations have well educated people with the ability to access smart phones. Therefore offering them Samsung quality devices will definitely attract more business for the company.
Out of court settlement should be tried through which a mutual consent and agreement is achieved for the coexistence of both the companies.
Efforts should be made to bring in latest software applciations, new innovations, latest product deisign and aggressive marketing so that the company products remain in demand.

Conclusion:

In conclusion we can say that the Samsung company has faced serious issues of law infrigments in the past decade. The company has faced huge losses due to the compensation payment and halt of sale of company products in U.S and other countries. However efforts should be made to decrease the impact of these issues. The company should reform its products and create new product genre which gets patented and could not be opposed by any other company in future. Also the aggressive advertisement should be followed so that the company products and services stay in demand. The addition of new factors, features and benefits will further tempt the customers of the company to make future purchase. The company needs to devise new design and products and getting them registered and patented to mitigate future chances of issues rising out it. Also the company needs to bring in new software applications and features in the Samsung products so that the customers from around the globe including U.S. make demands for the company products.

Another method of displacing the concentration of the business could work in this case. That is the company should concentrate on the Non U.S markets where it has tight controls in the mobile and tablet markets. Therefore effort should be made to increase the company market share in these markets. The concentration can be taken to China and India which has the 1/3rd of the world’s population. These nations have well educated people with the ability to access smart phones. Therefore offering them Samsung quality devices will definitely attract more business for the company.

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