Primary research would however not contain this bias. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. To support the above assertion, Samsung explains that, The result is that all of our productsfrom memory chips that help businesses store vital knowledge to mobile phones that connect people across continents have the power to enrich lives (Henny, 2003, p. 5). Apple has been competing with Samsung for a while now. Apple also generated the buzz among the music industry for procuring Beats by Dr. Dre but it felt to be a little late. The belief that Samsung will stand to remain competitive in the future is also expressed by Mallin (2011) who explains that, prior to Samsungs entry into the technological market, US, Europe and Japan had dominated this market. And, Apple is never hesitating to highlight the advantages of the products to the target audience. Among the most notable advantages, include the availability of current and rich information. Samsung believes that it is easy to get different software from any manufacturer but it is not easy to obtain quality products from any manufacturer. Samsung and Apples rivalry has transcended the above Californian case because the two manufacturers have filed suits (and counter lawsuits) in about a dozen countries around the globe (Deagon, 2011, p. 1). The ability of Apple to meet the global demand for its products has been a common topic among the industrys observers because there have been fears that the companys ability to meet increased global demand may be limited. Marketin Strategy Samsung Samsung Electronics. Web. As noted in earlier sections of this study, Samsungs sponsorship of the Olympic Games increased the companys brand awareness significantly. However, this trend has changed and many companies are now operating in multiple business segments. NOVEMBER 2014. Several employees have benefitted from this program and generally, the program is seen to have a positive impact on the motivational levels of the employees (Mallin, 2011, p. 5). This essay sample was donated by a student to help the academic community. StudyCorgi, 23 Feb. 2023, studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/. The level of brand awareness realized from becoming one of the leading sponsors in the Olympic Games (alone) tripled after the games. Samsung accounted for 37% of smartphone sales and Apple 29% in May 2016. In this business case, the marketing mix is specific to the technological nature of Apple's business. Apple Inc. has produced apple TVs (which infringes on Samsungs strong foothold on the sale of television equipment) while Samsung has been resilient in producing tablets (which infringe on Apples core business the sale of the Apple ipad). 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. Other companies such as Samsung need to learn the same business strategy by coming up with new and innovative products of their own rather than developing replicas of superior products in the market. If there is one constant attribute in Apples business strategy is that they have successfully managed to control all the unpredictable elements concerning different components of their business strategy. New technologies on the Apple platform such as the Siri application will also be used to leverage the Apple television to improve its user interface. Samsungs success is therefore an all-rounded success that is shared by many people. (2019, March 10). Keep marketing and products simple 2. However, Apples initial business practices have been lost with the successive changes of management and CEOs. You can read the details below. Market Segmentation Of Apple 1346 Words6 Pages a. Samsungs focus is to close-in on its competitors such as Sony, and Philips, which have consistently dominated the home appliance market. However, experts observe that Apple will not suffer from a change of management because it will always continue to be paid for the value-added services it offers its customers (Mallin, 2011). Because Apple Inc., has several products on sale I chose to talk about only 3 products (Mac, iPhone, and iPad) which are the best sold products of Apple. This knowledge is useful in understanding the intricacies between the two companies. The ability for Apple to assimilate its activities in the global map is also another hindrance to the companys expansion plans because the company does not have a good record of assimilating its activities into others. Integrated marketing communication strategy to be pushed will include print, radio, television, in-store branding, and the web. Electronics Building, For instance, if Apple were to acquire a large financial firm, it would boost its business competence. The overall direction of a business can only be charted through the proper understanding of its business strategy. The purpose of this essay is to compare, contrast and evaluate the two major competitor companies: Apple and Samsung. Apple spends just 0.6%, and General Motors 3.5%. However, such a move is not considered a strategic action for the company because it does not add to its revenue growth. 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. Integrated Marketing communication is an approach to achieve the objectives of a marketing campaign through a well-coordinated use of different promotional methods that are intended to reinforce each other. Samsung gives many offers and discounts to its trade partners to motivate them to sell Samsung above the competition (Marketing91, 2019). For instance, the business association between Samsung and Apple (in the supply of hardware parts for Apples products) shows the acquisition of new resources for Apple in sustaining its business strategies. This scenario also requires that apple forge a workable working framework to integrate its activities and those of its suppliers in the most effective way. This relationship has seen the company sell its Apple iphone through its Chinese subsidiary (China Unicom) after Apples CEO visited the Asian country in 2011 (Mallin, 2011). Due to the unpredictable nature of the hardware market, Samsung has had to trade at a discount to keep its shareholders happy. Through this understanding, many people now believe that a Smartphone is an important accessory that can improve a persons productivity in todays fast-paced world. However, observers estimate that the South Korean company sold about 35 million Smart phones in 2011 (between October and December) (Deagon, 2011, p. 1). The focus on high employee talent was especially fostered by Jobs after he made a debut back to the company after being fired by the companys board in previous years. Other applications such as the appstore have been highlighted in this study as having raked millions of dollars for the American giant. Apple therefore seeks to exploit the potential existing in the growing middle class. On the other hand, Samsung uses a transparency policy to discourage unethical behaviors. By using this quote, in which the image also says Guess who surprised themselves and changed their minds. In the same event, Samsung conducted several public relations sessions with other stakeholders to elevate the companys position as a top-notch brand. This report focusses on these two companies and their marketing mix strategies. In 2012, Apple is expected to achieve far greater growth figures because its retail presence is growing and the global economic situation is slowly improving. However, Jason (2011) observes that Apple has the option of enlarging its infrastructural capability by seeking non-traditional technology that does not fall in its conventional Apple ecosystem. The positioning of apple once formed by Jobs, still reaps its fruits today. In this regard, Samsung face threats from low-cost competitors and technological giants such as Apple in its major markets. (2019, March 10). These changes indicate two things: Samsung has made a tremendous amount of progress in the smartphone market By sampling the case studies of Apple and Samsungs business strategies, we see that both companies perceive the international market to be the new frontier for sustaining their business operations. February 18, 2023. https://ivypanda.com/essays/comparative-study-of-business-strategy-for-apple-and-samsung/. The methodology for this study is mainly based on the qualitative research design. Samsung has not risen to the top by copying its competitors or levering its resources; it has been a dominant player in the technological industry by adopting unique competitive strategies. Samsung uses prompting strategies by lowering the prices, making it more affordable for customers. Obviously, there are some concerns over monopolistic tendencies because Apple is considered among the most valuable companies globally. StudyCorgi. VAR (2005) notes that there is probably no other company that has been able to implement this crazy and illogical strategy with much success. The companys growth into profitability was also characterized by the Intel transition that occurred in the 2005-2007 period when Apple merged its computer production with Intel (Mallin, 2011). Business strategies are known to be the path taken by different companies as they try to outdo their competition. To stay successfully relevant in todays business environment, it is important to employ successful business strategies. endobj The companys products failed to capture a strong market share among the consumers. In the Smartphone market, Samsung and Apple have gone head-to-head to dominate this market segment. After the company sponsored the games, Samsung was listed as constituting among the 21st most valuable brands in the world (after the companys brand value increased by 16%) (Henny, 2003). From this understanding, some researchers note that Samsung and Apple share similar business strategies while others note that the two companies have different business strategies. District, To investigate the differences and similarities between Apple and Samsungs business strategies, To establish the difference or similarities of different business portfolios between Samsung and Apple, To ascertain the key areas of competence between Samsung and Apple, To establish how Apple and Samsung use their corporate resources to implement their business strategies, To investigate Samsung and Apples value-chain processes, To evaluate Apple and Samsungs business performance viz-a-viz their business strategies, To evaluate how Apple and Samsungs changes in business resources affect their performance, To investigate how Apple and Samsungs business resources compare with the expected first class resources for technological companies in the digital world, Apple and Samsungs business resources are inherently similar, Samsung has a more diversified business portfolio than Apple, Samsungs key area of competence is in the television market while Apples key area of competence is the mobile phone and tablet markets, Samsung and Apple use their corporate resources to develop better and high quality products for their consumers, Samsung and Apples value chain processes are very different, Samsung and Apple have achieved high levels of success because of their effective business plans, The changes of business resources between Samsung and Apple have not affected their performance, Samsung and Apples business resources are at par with the business resources expected of first-class technological companies. E.g. Then began a real patent war in which Apple has long been successful. In this event, the company launched a series of futuristic products such as mobile phone watches, the PDA-phone, the digital camera cum mobile phone, the MP3 mobile phone and the its latest model of 3G mobile phone (Henny, 2003, p. 6). In the second quarter of 2011, the competition between the two companies became stiffer as Apple registered a sales record of 20.34 million smart phones while Samsung posted a sales record of 19 million smart phones (within the same period) (Deagon, 2011, p. 1). However, low-priced and unique products from companies like Samsung are a threat to Apple. With regards to this technological point of control, Jason (2011) admits that Assuming Apple pushes face time as a family video conferencing play, you can bet that competitors will counter with a similar feature based on Google Voice or Microsofts Skype and Kinect technology (p. 4). An analytical eye will also be included to sort pertinent issues regarding the research problem and eliminate any information that may not be of use when answering the research problem or meeting the objectives of the study. The Apple brand and logo are currently more recognized around the Western world, and in London and New York, you cannot walk down the street without seeing a sea of white headphones and people playing with their iPhones. Apple Inc. is an American company which was founded by Steven Paul Jobs, Steve Wozniak, and Ronald Gerald Wayne on April 1, 1976, and is headquartered in Cupertino, CA. 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. Apples business strategies are different and depend on product models. Copenhagen, CPH: Rebidu. Apples plan to increase its production capacity to suit the growing global demand for its products highlights the existing production capacities in China. Founded in 1969, Samsung Electronics Co., Ltd. with the headquartered in Suwon, South Korea. All rights reserved, Apple's Organizational Culture And Structure, Corporate Social Responsibility In Apple, Volkswagen And British Airways, Apple Company: Planning, Organizing, Leading And Controlling, Apple versus Samsung: Design Patent Litigation, Advantages And Disadvantages Of Apple Supply Chain, Apple: Supply Chain Management Issues And Approaches To Its Improvement. 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. However, the survey was based on experiences reported by 1,985 tablet owners in July 2012. Experts hold this belief despite the fact that Apples products are priced slightly higher than most of its competitors. Samsung Galaxy S7/S7 Edge accounting for 16% of sales and the iPhone 6s/6s Plus at 14.6%. Furthermore, Samsungs move is unpopular because hardware tends to have a shorter lifecycle and they are equally easily commoditized. Samsungs strengths mainly come from a few business competencies such as the success in the memory chip market, which accounts for nearly half of the companys profits (Jason, 2011). This makes the flow of information and decision-making simple. The constant attribute here is that people will always undertake business actions that they believe will draw them closer to achieving their business objectives. The brand positioning of samsung has been such that it has something for everyone which wide array of products. Apple Vs Samsung Marketing Mix Strategy fTable of Contents Introduction Macro-environmental Factors Industry Trends Product Price Place Distribution channels Legal issues encountered promotion fIntroduction Samsung and Apple represent two dominant technology based companies on the global scale. In addition, secondary information may contain bias (on the part of the researcher), thereby reducing the credibility of subsequent research information which may be obtained from the same. Kim, Y. J. More so, it is interesting to evaluate the business strategy of different companies engaged in the same type of business. Similarly, the companys net margins significantly improved from a mere 0.5% to about 13% (Peggy, 2002). The counter-intuitive strategy therefore acts as a sieve for non-performing employees. 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. A companys business strategy therefore determines a companys long-term health. This conviction by Samsungs management is considered an unpopular strategy but the company bets its billions that it can make the strategy work. Apples Injunction Bid Vs. Samsung Seen Partly Denied. Consumers and different specialists therefore acknowledge Samsungs unique input in the design aspect of its products. The company uses anti-collusion and anti-corruption policies (Kim, 2007). Some of these resources may be wholly owned by the companies but others may also be acquired through partnerships, joint ventures and similar arrangements. SEMESTER 5 This revelation came after Apple opened itself to other organizations such as ABC nightline to be part of the companys supply chain after the new company CEO adopted an open policy to the companys associations (Mallin, 2011). Apple doesnt use Twitter accounts, Facebook profiles, or indeed have a blog. Here, the computation of the findings and the data analysis process will be done. Bilan de la mise en oeuvre des plans de rponse- Mawuli AMEWUAME - Situation Rseau de prvention des crises alimentaires (RPCA), Evolution_Of_ERP_and_Role_in_Supply_Chain[1].pptx, Situation agropastorale_Traore_March.pptx, Applications of Multivariable differential Calculus.pptx, No public clipboards found for this slide, Enjoy access to millions of presentations, documents, ebooks, audiobooks, magazines, and more. Acquiring new technological companies will be a strategic move to grow the companys revenues. 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). Web. Apple continued on dominating the Smartphone market within the years; however Samsung introducing Samsung galaxy series in 2013 brought increased competition for it. Though taking a big leap in the companys expansion strategy may not solve some of the company inherent expansionary problems, there is no doubt that such a strategy would simplify Apples expansion strategy. Apples strategies are perceived to be largely successful. Indeed, Apple cemented its name as a technology leader in terms of innovations. This way brand positioning and personality is always coherent and bring easier brand retention. Apples history of secrecy does not complement the flexibility required in the global map. This essay wont pass a plagiarism check! However, Apples corporate culture has been associated with southwest airlines, and Microsoft (Mallin, 2011). For example, Samsung has been engaged in a long battle with Sony after the latter introduced the Blu-ray technology in its gaming gadgets. Most of these strategic competencies are designed to boost the companys strategic planning. Looks like youve clipped this slide to already. Apple Inc.'s organizational structure supports this growth strategy. But speaking about the future I believe there will be only one winner. Direct comparisons, ironic winks, subtle dedications or questioning of Apples brand image, Samsung has mastered the denigration of his rival and does not hesitate to abuse in each of its advertisements. Some of these ways have been perceived to be unpopular but so far, Samsung does not show any apology for adopting some of these unpopular ways. This paper was written and submitted to our database by a student to assist your with your own studies. From the new strategy, the company can optimize on diverse product models that serve the interest of large market share (Hills, Jones & Schilling, 2014). The political, technological or economic forces, which are prevalent in the operating environment, are just a few examples of some of the most prevalent forces businesses have to manage. There is a direct correlation between the nature of business strategies adopted by the two companies and the corporate actions undertaken by the same companies. In 2003, Samsung launched approximately 95 new products in the US alone as part of its business strategy to refresh its product lines every nine months (Henny, 2003). Apple is superior to its competitors (Samsung, Huawei, LG), most of the Apple products have premium pricing. 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. Apple does not have the same level of online presence as Samsung and neither does it have the type of sponsorships Samsung enjoys. The second data analysis tool to be used will be the coding technique. 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. The company has been unapologetic for pursuing this strategy and despite the fears of the global recession; the company has consistently maintained a high-end marketing approach. 1 0 obj The growth pattern of Samsung electronics: A strategy perspective. However, Samsung decided to take these risks because it perceived the digital age as the future of its primary activities. Apple is valued for its design, a core value of the company. From Apples high-end market strategy, the company has earned a reputation for producing quality goods at high prices. These alliances were aimed at developing a superior computer technology, which was going to incorporate Apples software and IBMs (and Motorolas) hardware competencies. There is also the possibility of using Microsofts features in the same manner. However, based on the numerous volumes of research analyzed in this study, the reorganization of Samsungs organizational structure, which has seen a reduction in the levels of management, has also contributed to the companys increased performance. These dealers can open exclusive Samsung showrooms. However, recent developments to integrate horizontally offer Apple with a chance of achieving flexibility and gaining new global markets through business collaborations (Hills, Jones & Schilling, 2014). Through the meta-analysis, it is equally easy to derive the statistical testing for all the factors involved in the progress of the secondary researches (highlighted in the secondary research sources). For instance, it is observed that even though many people (and small companies) do not understand the exact workings of the Smartphone, Apple has been able to market the Smartphone (through the iphone) as an important component of modern lifestyle. The companys brand awareness (globally) increased in significant proportions and its markets share significantly soared as well. Evidence is given of Samsung going into business partnerships with other technological companies such as Google, IBM and Toshiba. Samsungs innovation is not only present in the mobile market; the same commitment has also been witnessed in the television market. Samsung uses differentiation versus a cost leadership business-level strategy (Hills & Jones, 2008). Other proposals have been made by Mallin (2011) after he suggested that, Apple could buy a no-name bank and quietly use their existing financial infrastructure to leverage its 200 million iTunes customers and software expertise into an Apple iWallet. Apples ambassadors have also sprouted in the recent years but their input has been second to the near fanatically following that Apple enjoys. (2023, February 18). The inclusion of such data is supported by the qualitative research design. Well, we do. This spat is between Apple and a Chinese company named Proview (Jason, 2011). Nonetheless, Apple and Samsung both acknowledge that the key to sustaining their operations is developing a highly competent human resource pool. 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). Samsung has blown past Micron Technology (MU), Infineon Technologies (IFX), and Hynix Semiconductor in dynamic random-access memory (DRAM) chips used in all PCs and is gaining on Intel (INTC) in the market for flash memory, used in digital cameras, music players, and handsets (Jason, 2011, p. 13). London: Marketing Week. 2023. During the 2007-2011 period, Apples success was cemented with the growing popularity of its iphone, ipad and ipod products. The company discontinued the production of low-margin goods. Will follow a series of pungent attacks still based on the comparison between the technical capabilities of Apple and Samsung products. 1 Apple Park Way Cupertino, California, U.S. Computer hardware, Computer software, They switched their core competitive power from mass manufacture to its own brand which based on digital technology (Henny, 2003, p. 4). The marketing sector understands what the customers want in terms of the product price and ensures that low-priced models are available in the market. Unlike other companies, which have embraced partnership as a viable business model, Apples strategy has been to do business alone. Samsung aims to create a new future that positively impacts the entire global community (Samsung, 2019). Samsung is known to imitative its main competitor Apple in product in design, functionalities, as well, as marketing strategy. To support high employee talent, Apple came up with an effective fellow program, which rewarded employees for their outstanding performance. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. Samsung has not been so popularly in the past but have undertaken strategy in marketing to increase its popularity in the Smartphone 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). This strategy improved the companys competitive position with other competitors (Sony being the main competitor). Samsung, like its biggest competitor Apple, has a wide range of products such as Smartphones, Tablets, Laptops, TVs, etc. Samsung has mastered the subject by launching perpetual assaults against Apple. These views provide the right framework for the analysis of the research problem. For this reason, the best customers for. Apple came up with the Apple TV product as one of its new innovative products and Samsung came up with the Samsung galaxy product as one of its latest innovative brands. Established in Cupertino, California by Steve Jobs and Steve Wozniak in 1976. Observers associate Apples success to its ability to foster individuality and uphold employee success (Mallin, 2011). The findings of this study will therefore only be limited to the activities/strategies of Samsung electronics and not the entire Samsung group. Samsung makes use of all major social media channels, celebrity endorsements, and all other good & effective marketing strategies. Apple has pursued this strategy for a long time and evidence shows that it is unapologetic for pursuing this market strategy. And we paid a lot of attention to our distribution channels. For instance, HP and Apple source the chips from Samsung and as Samsung formulates its marketing strategy, it needs to respect this working relationship. Cowan, D. M., Dopart, P., Ferracini, T., Sahmel, J., Merryman, K., Gaffney, S., & Paustenbach, D. J. Strategic marketing concerns the choice of policies aiming at improving the competitive position of the firm, taking account of challenges and opportunities proposed by the competitive environment. One such reason is the market size for the television market and the potential for premium pricing as a result (VAR, 2005).