(2019, June 16). They also acknowledge that, we go through far fewer layers of bureaucracy to win approval for new products, budgets, and marketing plans, speeding up our ability to seize opportunities (Mallin, 2011, p. 5). The companys entry to the developing market is however not a new phenomenon. However, even in setting its eyes on the goal, the company acknowledges that it operates in a dynamic and fast-paced world. It is well ahead of competition in this market. Jason (2011) observes that the world market is obsessed with hi-tech technological gadgets such that it has been easy to overlook what a shortfall of these gadgets may mean for the consumers. Finally, this aspect of business comparison highlights how the performances of both companies have changed over the years and how they fair with the performance of other technological giants in the same industry. From the new strategy, the company can optimize on diverse product models that serve the interest of large market share (Hills, Jones & Schilling, 2014). Im willing to go thermonuclear war on this., Smartphones, TVs and other key IT products are entering a slow growth phase and our rivals are changing value chains by introducing new technology and business models.. This is one example of how Apple is able to be a pacesetter in the technological market. However, even with the previous domination of the technological market (with international technological brands), Samsung has been able to establish itself as a strong brand. Though other technological companies have entered the tablet market, Samsung is perceived to be the closest rival to Apple Inc. (in terms of design and capability) (Deagon, 2011, p. 1). From this perspective, the company always has a ready market that prefers uniqueness in terms of product specifications and price (Hills & Jones, 2008). This essay begins by discussing the market value of the both companies. Other companies have had a good record of assimilating their activities in new markets and thereafter gained a lot of experience regarding the same ventures. Activate your 30 day free trialto continue reading. Samsung is of the opinion that it can overtake Apple in the sales of tablets because it believes that its competencies in hardware manufacturing, functions and operating systems surpass those of Apple. Retrieved from https://studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/, StudyCorgi. There is also a strong similarity between Apple human resource strategy and Samsungs human resource strategy. GovNet eJournal, 1(1). This level of brand awareness only came second to Coca Cola (Henny, 2003). These codes are usually words that show the link between the information obtained and the research objectives. Apples business strategies are different and depend on product models. This provision is considered unpopular in most western economies but Samsung has been able to implement it because of its diverse work locations. In this time Samsung just run domestic marketing in South Korea, but it started with mass production and exporting color televisions in 1977. The venture into these market segments was informed by a dwindling market share and reduced fortunes of the company (during the late eighties and early nineties) (Mallin, 2011, p. 1). Samsungs innovation is not only present in the mobile market; the same commitment has also been witnessed in the television market. Books will also be relied on as credible sources of research information because they contain published texts. This will be an expansion of the form factor. A big part of the answer lies in its sheer marketing muscle Samsung spends a bigger chunk of its annual revenue on advertising and promotion than any other of the world's top-20 companies by sales 5.4%, according to Thomson Reuters data. Los Angeles: Investors Business Daily. Unlike most of its other ventures, such as ipad and iphones, the Apple television is expected to face stiff competition from incumbents in the television market. A cross-sectional analysis of reported corporate environmental sustainability practices. The internal design team has been credited with innovations of modern mobile technologies. As noted in previous sections of this paper, other technological giants like Samsung and Sony have had a strong foothold in this market and they are expected to counter Apples venture into the television market through their pocket-friendly pricing strategy. Some observers note that Apples strategy of defeating its competition is by widening the competitive moat but at the same time, the company is good at preparing the grounds for future product launches. Samsungs success has also been attributed to the same factor although there is no single individual attributed to the overall company success. Samsung should therefore divert more resources to research and development so that it can come up with new and innovative products that can stake a claim to its dwindling market share. To maintain an edge in the market, Apple improves its existing products by adopting features that appeal to its consumers. On the other hand, Samsung has a wide range of product models that are not high-end. Apple is the market leader in the UK with 52.05% market share, and its major competitors are Samsung, Huawei, Motorola, Xiaomi, and Google. In comparison, Samsung is viewed as a follower for a long time. In contrast, Samsung is using Social Media such as Facebook to promote its products and all possible channels or marketing. Primary research would however not contain this bias. The latter may include the use of new technology, employment of competent and highly trained personnel (among others). During the last years, Samsung performance was good which means that the company came up with many new, developed and smart products and because of this Samsung is a great competitor for Apple. We made sure we used the high-end channels(Henny, 2003, p. 8). Consequently, the companys market position also improved significantly. According to Interbrand [4] and Forbes [5], the Apple brand is worth US$234.241 billion and US$205.5 billion, respectively. This paper focuses on the court battle between Samsung and Apple as one area of competition for the tablet market share. There is some kind of peculiarity between the Marketing Strategies of both the brands. Apple doesnt use Twitter accounts, Facebook profiles, or indeed have a blog. It was estimated that the appstore raked a million dollars every day for Apple and in the future, the platform was projected to be a multimillion-dollar industry (Mallin, 2011). Probably each of us has seen at least once an advertising campaign from Apple, where you can see how professional and with a lot of elegance these campaigns are made. Some of the threats, which are evident in the business environment, may not be motivated by the competition but by the consumers. The strategies used by Apple Inc. and Samsung Pages: 3 (815 words) The conflicts between Apple and Samsung Pages: 6 (1533 words) Apple and Samsung Pages: 4 (957 words) Apple vs Samsung devices Pages: 2 (477 words) Supplying Capability Apple vs Samsung Pages: 5 (1364 words) Samsung vs. Apple - The smartphone wars Pages: 6 (1605 words) During this period, Samsung sold about 24 to 28 million Smart phones while Apple sold about 17 million smart phones. These values are based on a few common principles such as people, excellence, change, integrity and co-prosperity. More so, this situation is often experienced when businesses are performing poorly and they have to revamp their operations to project a positive performance outlook. Therefore, Samsung undertakes its operations in the most transparent manner and through the right moral compass; the company hopes to entrench its operations on the right ethical foundation (Henny, 2003). Consequently, Apples shares and stocks depreciated. The companys new CEO is on record as sitting on a load of cash amounting to more than $100 billion (Jason, 2011). 74-gil, In addition, a comparative study of the business strategies pursued by Apple and Samsung (with regard to the recent developments of the technological industry) has not been properly researched. Both developments infringe on Samsungs core market segment. The Content Marketing Showdown Apple vs Samsung. Currently, the world does not have a doubt regarding Apples ability to succeed. The above research sources will provide the groundwork for a meta-analysis, which will combine the findings from the three sources of secondary data to form the framework for the research findings. Jason (2011) observes that Apple should take advantage of the potential for this market segment despite the fact that its primary market is the high-end market. Learning a companys business strategy is an important predictor of the companys performance in the business environment. However, Apples growth path has been hit by several setbacks such as its attempted launch of auxiliary technological gadgets such as digital cameras and other home appliances. Tim, P. (1991). However, as explained in earlier sections of this study, some of these companies have a working relationship with Samsung. To complete, this was the marketing mix of Samsung which shows that is a big threat to Apple Inc. Free revision, title page, and bibliography. On the other hand, Samsung has a renowned green management system that ensures the companys domestic and global facilities conform to local and international environment regulations. For instance, the company has a locked-down software platform, which is only known to close associates of the company (Mallin, 2011, p. 5). Samsung is a South Korean multinational conglomerate headquartered in Samsung Town, Seoul. StudyCorgi. b) iPhone Apple is the first company that introduced the phone without buttons focusing only on the multi-touch smartphone. Experts note that Samsungs business strategy is therefore unsustainable and it is going to suffer the consequences of sticking to the hardware market. Finally, change implementation requires support from other stakeholders. Different comparative studies have been developed for different purposes. Apple has always shown a key interest on the software market but Samsung has stuck to its hardware market. Furthermore, the company strategy of venturing into new markets is complemented by the push to merge new technology with new markets. Samsung has not been so popularly in the past but have undertaken strategy in marketing to increase its popularity in the Smartphone market. The two companies have tried repeatedly to reach an amicable agreement, to no avail. For example, Samsung has consistently stuck to the manufacturing industry, especially after the success of the microchip market segment. The sales figure for 2010 show that the companys sale of ipad, iphones and ipads transcends the companys mac sales (122 million). The above strategies could be a useful strategy to leverage Apples technological prowess because it would help reduce the regulatory inhibitions of expanding in its traditional market segment. Samsung perceives the online communication channel as a unique way of communicating to its consumers because it is more interactive and involving. It is also during this period that Apple introduced the itunes platform, which allowed consumers to purchase music and play them on other music players. Apple has a strange strategy when it comes to brand promotion. However, unlike his former boss, Tim Cook, the new company CEO, has never failed to discuss the future of Apples business strategy in recent times. However, the companys CEO also revealed that the Smartphone market only accounted for about 9% of the total handset market (Mallin, 2011). The sales and service dealers handle key accounts for Samsung and are involved in corporate sales. Here, the computation of the findings and the data analysis process will be done. We hope this was an exciting and useful article for you. The company encourages safe working environment. The company strategized to release few products that are highly anticipated in the market. Like other multinational companies around the world, Apple has forged a close working relationship with China. Apple Inc. has a global presence in 10 countries around the world and it runs 357 retail stores in these locations. BACHELOR OF MANAGEMENT STUDIES Apple is using publicity for free and yet powerful way to interact with customers. The first step that Apple is taking to improve its current competitive position is focusing more on improving the existing products compared to coming up with new ones (Gustin, 2012). This paper also seeks to establish how Samsung and Apple use their value chain competences as part of their business strategies. The company also expects to instill a strong sense of discipline among its employees as a viable strategy to developing the strongest human resource strategy. These partnerships have been part of Samsungs key areas of operations since its inception. Googles android operating system has been closely associated with Samsungs products because the two companies share a close working relationship that has seen most of Samsungs products use the android operating system. Jobs input in the companys operations has been invaluable because employees have often cited his input as facilitative (Mallin, 2011). Although, Samsung is constantly accused of duplicating Apples technology, the company is now one of the leading technology companies in the world. Samsung always comes up with innovative ways to mock apple, but this time, it elevated its concept to a different level. Some of the strategies adopted by both companies are similar in composition but others have inherent differences. But today I will be talking about two main competitors as of right now. For instance, the companys senior vice-president in the retail department had no authority to direct other activities within the companys retail chain, other than those described within his roles. You are free to use it to write your own assignment, however you must reference it properly. The research methodology for this study will be centered on identifying the differences and similarities between the business strategies for Apple and Samsung. Why today is the BEST time to learn Digital Marketing? Samsung now sells one in every three smartphones and has more than double Apple's market share. Apple and Samsung are very successful in selling their products all over the world and over the last years, they have experienced very high growth but also small decreases. Though Samsung has also focused on the high-end market in recent times, its pricing strategy cannot be compared to Apples. "Apple vs. Samsung: Marketing Strategy & Business Strategy." This development was a departure from the norm because traditionally, more established brands such as Coca Cola and Visa had a strong impact on peoples lives. The SlideShare family just got bigger. Towards the end of 2011, most observers perceived Samsungs sales numbers to be remarkable (Deagon, 2011, p. 1). The nature of the research topic is also too complex to be answered by a yes or no response and therefore the use of the qualitative research design will be able to expose the underlying dynamics of the research topic. Finally, this paper also proposes that Samsung should direct more company resources to the home appliance market, which is its area of key competence. Apple and Samsung have shown that they are very sleek in their operations. Observers note that this gimmick introduced a new twist to the growing market wars between the two technological giants, especially after some market observers hold the belief that the android operating system is nothing more than a cheap replica of Apples ipad and iphone (Jason, 2011, p. 1). This knowledge is useful in understanding the intricacies between the two companies. Apple can utilize a product differentiation strategy. In 2010 alone, the market for television equipments rose by close to 15% and similarly, experts project the potential market for the same to be close to 78 million units (Jason, 2011). These observers attribute Apples value addition services to its ability to integrate different attributes of their hardware and software for a seamless user-experience. By extension, a companys business strategy defines the best approach a companys management can take in securing the future of a business. A STUDY ON PRICING STRATEGIES OF SAMSUNG AND APPLE Its a brand that, everyone may want, but not everyone can afford. Nike makes some of the best products in the world products that you lust after, absolutely beautiful stunning products. This approach is seen to be successful in the sponsorship of sporting events such as the world Olympics. 3 0 obj VAR (2005) notes that there is probably no other company that has been able to implement this crazy and illogical strategy with much success. Through the same market strategy, Samsung also hoped to achieve a stronger customer brand loyalty. The data will be analyzed and segmented into different groups, which are identified by unique codes. The reputation of Apple as it is today is based on the desire strategy that it sets up at each product launch. Because Samsung has a wide range of products, the company uses many price strategies. Samsungs brand value is now perceived to be in excess of $12.5 billion (Henny, 2003). He notes that Samsungs human resource is closely similar to Apples because both companies operate by seeking the most qualified personnel to run their operations. Samsung believes that a cultural policy is significant in achieving a global market impact. Apples internal capability is complemented by an excellent industrial design. Samsung has also connected with major apps and platforms to target audience with social campaigns. Disclaimer: Services provided by StudyCorgi are to be used for research purposes only. However, the concept and importance of business strategy is ambiguous and vaguely understood (partly because of a clear misunderstanding of the concept and partly because of the extensive depth and multifaceted understandings that characterize business strategies). At the end of 2016, it led the smartphone market with a . Apple vs. Samsung: Marketing Strategy & Business Strategy. Apple v s Samsung leader of technology and marketing. The strength of these companies cannot be underestimated if history is anything to go by. Furthermore, the growing competitiveness and the changing landscape of the technological and digital markets highlight the importance of analyzing how the two technological companies intend to overcome this hurdle. Adverts mocking Apple fans, and heavy investment in product placement and in distribution channels have strengthened its Galaxy mobile brand. Business actions are always strategized because they are designed to achieve a specific goal (Chris, 2008). Los Angeles: Investors Business Daily. The new company strategy informed the companys decision to discontinue the production of television sets, which were below the 26-inch specification (Mallin, 2011, p. 5). With increased competition, the prices of hardware products have even decreased further, especially with the growing dominance of Chinese products in the global market. In addition, Jason (2011) explains that, Besides dominating DRAM chips, Samsung leads in static random access memory and controls 55% of the $2 billion market for NAND flash memory, a technology mainly used in removable cards that store large music and color-image files (p. 4). Apples strategies are perceived to be largely successful. Later, Samsung also decided to sell about $2 billion worth of non-core business so that it could concentrate on its main businesses that account for the companys main revenue stream. The companys offerings include home appliances such as TVs, monitors, printers, refrigerators, and washing machines as well as key mobile telecommunications products like smartphones and tablet PCs. Talk to the audience in their language 4. The future of the DVD format is at stake because Samsung has developed a high-definition sequel of the format war between Samsung, Sony and Toshiba. The relationship between Apple and its offshore suppliers has been a key issue for the company, as widespread media coverage is creating awareness of conditions throughout its supply chain. Word Count: 918. b) Trade partners one of their partners is Ingram micro, a company that is distributing Apple products in more than one country. In this business case, the marketing mix is specific to the technological nature of Apple's business. This research paper on Comparative Analysis of Apple and Samsung was written and submitted by your fellow Apple employs the blue ocean strategy as a competitive plan to beat its rivals such as Samsung. 2023 EduBirdie.com. If you dont know where you are going, you will likely end up somewhere else (Chris, 2008, p. 1). In the same event, visitors were allowed to experiment these new products and the company received a lot of feedback regarding these products as well. What industry is Apple and Samsung in? Another strong point observed from the researches sampled is the fact that Apple maintains a high-market strategy that bears little or no importance to the low-end market. The growth pattern of Samsung electronics: A strategy perspective. Samsung electronics is also engaged in the same type of business as Apple because some of its main products have been compared to Apples. Different explanations have been given to explain this observation but the most common notion is that most of Apples products are priced at a premium and therefore, they attract a sophisticated clientele. Jason (2011) also questions the sustainability of the companys strategy in the coming years. Different researchers have attributed the success of both companies to their human resource strategies. Most E-commerce portals have a separate page linked to the Apple home page where consumers can find the desired products, and they can buy from the companys official website (Marketing91, 2019). It works on the channel marketing concept wherein there are three segments: sales and service dealers, modern retail and distributors. THE STUDY OF SMARTPHONE IN THE CITY OF MUMBAI Comparative advertising is complex to implement and can be dangerous for those who use it. On the other hand, pricing strategy is critical for Samsung. There are also more concerns regarding the intrusion into different cultures around the world because most cultures tend to be exclusionary rather than inclusionary. Apple is the dominating brand in the US market and Samsung holds the lead globally. Though the memory chip business is prone to the challenges of its cyclical market, Samsungs presence in this market segment is unrivaled. The unrivaled success that Samsung has witnessed in the digital world has even scared most of its competitors but in the same breadth, the company has been able to wow its consumers by creating superior products. (2019, March 27). We've updated our privacy policy. The positioning of apple once formed by Jobs, still reaps its fruits today. The Apple television was a pet project for former Apple founder, Steve jobs. For instance, Samsungs galaxy tablet has been compared with Apples ipad, and Samsungs Galaxy S mobile phone has been compared with Apples iphone (Mallin, 2011). Copyright 2023 - IvyPanda is operated by, Comparative Analysis of Apple and Samsung, Competitor Analysis for Lounge in Hilton Hotel, An Analysis of Apple and Samsungs Symbiotic Relationship, Apple & Samsung Group Strategic Management, Diversification and Vertical Integration at Apple and Samsung, Marketing Communications Mix: Apple vs. Samsung, HP: Arguably the Best Computer Brand Today, Gulf Coast Oysters: Short-Run & Long-Run Companies, Overview of Business Environment in the Philippines. This closed-ended strategy has seen the company manage small attributes of the business environment that are often perceived to be uncontrollable by Apples competitors. Nonetheless, Apple and Samsung both acknowledge that the key to sustaining their operations is developing a highly competent human resource pool. Seongjae (1999) made this statement to summarize the philosophy of Samsungs human resource strategy. This paper therefore sheds light on the business practices adopted by the two companies to act as a pointer for small businesses wishing to achieve the same level of success in different market segments. The operations of Apples supply chain was strong enough to warrant speculations by observers that the companys grasp on the supply chain was enough to dictate the terms of other players in the chain (Mallin, 2011). This provides the company with an opportunity to become a global market leader in technological products. The importance of analyzing a companys business strategy can therefore not be underestimated because it touches on different aspects of a companys operations (which determine the long-term health of the company). Products in the Marketing Mix of Samsung. Im going to destroy Android, because its a stolen product. A comparative study between Apple and Samsung. The introduction of Samsung tablets and smartphones rivals Apples products in all manners. Thus, Samsung keeps competitive pricing in various categories to beat the competitor (Marketing91, 2019). Mallin (2011) points out that this strategy may be combined with creative cost and/or pricing strategies that subsidize purchasing much like Verizon and AT&T has for U.S. iPhone customers (p. 6). "Comparative Analysis of Apple and Samsung." The same scenario also applies to Apple Inc. because focus will only be given to its electronics segment and not other un-affiliated businesses. Apple's Apple II launched the personal computer revolution at 1970s, and the Macintosh continued to evolve at the 1980s. These statistics show that Samsungs branding strategy has been highly effective and efficient. This is one strategy that Samsung ought to learn from Apple because it has been left to pick up the pieces behind Apples success (at least in the tablet market). Moreover, the nature of the business environment has been changing continuously and both companies have had to adopt unique corporate strategies to stay relevant in todays fast-paced digital age. The study of business strategies therefore provides a big picture regarding how different aspects of a businesss operations work towards achieving the ultimate business goals. So they lay back.. However, observers note that this acquisition did not affect Apples financial books (Jason, 2011). 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