Samsung vs Apple: The supply chain holds the key

Largely invisible to customers, your supply chain is a vital element in marketing. Do you have the right suppliers, the right materials and the right inventory levels to deliver enough products to meet demand?

Samsung is currently experiencing a supply chain problem that's delaying its intro of the Galaxy S4 smartphone in some markets. Why? Because global demand is unexpectedly high and Samsung's suppliers simply can't keep up.

Unfortunately, other elements of Samsung's marketing plan have already been implemented--including glitzy product launch parties, ads, and other activities. Customers are therefore seeing promotional messages and getting interested in the S4, only to learn that they can't buy one yet.

And that's a problem because Samsung is a major challenger to Apple in the smartphone market. In fact, Samsung sells more Galaxy mobiles than Apple sells iPhones. But if the supply chain can't keep up with demand, Samsung's customers (and distributors) will have to wait. Delays could change the way customers view Samsung and affect their ultimate buying decision.

Meanwhile, Samsung's profits have reached record-high levels. And, interestingly, Samsung is an important supplier in rival Apple's supply chain, making special microprocessor chips for iPhones. Both firms are clearly profiting from the continued increase in demand for smartphones.