Business Insights from the SAMSUNG – JAY Z Deal

Last month, June 2013, Samsung Electronics – the world’s largest technology company (it displaced Apple Inc. in 2011), announced it would be giving 1 million free copies of the yet-to-be released album of the world famous music act, Jay Z, to fans. The Magna Carta Holy Grail album was available for download from July 4, three days before the official July 7 release date. A mobile app, JAY Z Magna Carta, available exclusively on certain Samsung mobile devices was the conduit through which this album will be downloaded. Samsung paid $5 for each album.

Reviews are still very much on regarding the content of the album and not a few would be curious to know the content of a MAGNTA CARTA HOLY GRAIL album coming from a controversial rapper who has been associated with the famous Illuminati fraternity. This is, however, a topic for another day. Nevertheless, many will agree that the business of business is business. And regardless of the players involved, success in business is a function of the application of universal principles. For business-oriented minds, such a high profile synergy between these two big brands will, no doubt, be a subject of interest. Here are two business insights that could be gleaned from this partnership.

BIG BOYS HANG OUT WITH BIG BOYS.

This is a universal fact: Market leaders and global brands have a culture of fraternizing with each other. But truth is, regardless of your current level in life and business your future trajectory is a direct proportion of your association. You are who you attract. Two poor men cannot help each other. Each of you must have something unique that’s been brought to the table. Sentimental associations do not have long-term prospects. The ability to objectively identify each other’s strengths coupled with the willingness to work on each other’s weaknesses is a significant pointer to the direction you’re headed. Big brands don’t just stumble on each other. They have track records of success, coupled with a conscious effort to keep leveraging on the influence and competitive advantage of complementary brands.

Samsung Group, founded in 1938, in South Korea, is one of the largest conglomerates in the world with flourishing business enterprises ranging from Electronics to Ship Building, Construction, Telecommunications, Insurance, Advertising, Entertainment, Medical services, among others. The group’s revenue in 2011 was in excess of US $247 billion. Meanwhile, Jay Z (Shawn Corey Carter), 43, is reputed to be one of the most financially successful music acts in the world. With interests in sports, apparel and record-labels, Forbes estimated his wealth at nearly $500 million in 2012. And for the U.S president to have once named you as his favourite rapper, then you are indeed a big fish.

BIG BOYS DON’T GIVE UP ON THE COMPETITION. THEY’LL ALWAYS FIND A WAY. 

According to The UK Guardian, this Samsung – Jay Z deal is arguably more about Samsung consolidating their ‘victory’ over the iPhone and iPad in the smartphone and tablet markets – and using music to do that – just as Apple did with the iPod in 2001 and the iTunes store in 2003. Moreover, it appears non-Samsung-owning fans are being penalized for not having the right device as well. The message is clear: if you don’t have a Samsung tab or S series, you aint in-vogue. Many also see this as a daring move to atone for the fact that Samsung’s own Music Hub music service has failed to capture the public’s imagination.

Indeed, the Samsung example is a classic model of resilience in the face of stiff competition. In business, regardless of the level you are or have attained, you’ve got to keep digging, keep searching and keep thinking until 'light' comes. You mustn’t give in to the ‘enemy’. His plan is to edge you out of the competition. You’ve got to stay in the game. Remember, quitters never win. And winners never quit.

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Sam Adel'

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