For close to a decade, Samsung has maintained this position. Retrieved from https://ivypanda.com/essays/comparative-study-of-business-strategy-for-apple-and-samsung/. The main assumption underlying this study rests in the historical spread of business strategies adopted by Samsung and Apple. Apple and Samsung are the biggest smartphone companies operating worldwide. However, the methodology applied by Apples management has been unpopular and uncommon (VAR, 2005). Apple approach to achieving innovation in the company is based on cultural diversity. This study will assume that there are no time variations between the business strategies adopted by the two companies. A STUDY ON PRICING STRATEGIES OF SAMSUNG AND APPLE With increased internet penetration in most countries, many multinational companies are slowly starting to appreciate the importance of online marketing (Jason, 2011). Samsung and Apple however share the belief that the production of futuristic and innovative products is the key to future company survival. In this regard, the company promotes diversity of cultures among the employees. A cross-sectional analysis of reported corporate environmental sustainability practices. The simplicity of undertaking the qualitative research design is also a huge attraction for this research because the heavy financial muscle that would allow for the inclusion of a complex research design is not required in this research. For instance, recent years have seen a rapid decrease in the price of television sets and DVD players. Samsung has also achieved tremendous success based on its business strategies. As mentioned in earlier sections of this paper, this study will use secondary research sources as the main data collection tool. From the beginning, the brand stood out with relatively low prices for smartphones with capabilities equal to those of the other side. Hence, they must have well-defined and successful marketing and advertising strategies to achieve a place on the podium of preference of consumers. From this understanding, this paper also seeks to evaluate the performance of Samsung and Apple viz-a-viz their business strategies to understand how their changes in resources (historical analysis) have affected their performance and how these resources compare with other companies in the technological world. Clipping is a handy way to collect important slides you want to go back to later. Apple has continuously invested resources in research and development to ensure that the iPhone remains as current and as innovative as possible. Apple vs Samsung Strategy - What is Strategy - Strategy Made Simple - 01 7,235 views May 6, 2020 133 Dislike Share Save TheAdvantage 152 subscribers Strategy made simple is a series. Only companies such as Coca Cola, IBM, and Visa have achieved this sort of brand recognition at a global level. Though evaluating a businesss resources, value chain and core competencies are important aspects of understanding a companys business strategy, it is equally important to evaluate the performance of a business viz-a-viz its business strategy. It is estimated that Apples stock price rose more than ten times (Mallin, 2011). The different research contents represented by the unique codes will thereafter be compared to one another to expose their similarities and differences. These competencies are perceived as those components of the companies business strategies that are vital to the realization of competitive advantages. Retrieved from Wikipedia: https://en.wikipedia.org/wiki/Apple_Inc._advertising#Think_Different, iPad. Furthermore, Samsungs move is unpopular because hardware tends to have a shorter lifecycle and they are equally easily commoditized. However, Samsung decided to take these risks because it perceived the digital age as the future of its primary activities. The inclusion of such data is supported by the qualitative research design. It promotes through TVCs. However, emphasis will also be made to seek sources of data from reliable online sources such as company websites. 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). IvyPanda. This strategy paid off. In this study, the research information will be compared to the existing pool of research sources and any distinctions checked to report on the accuracy or validity of the findings. In support of this compliance, Samsung states that, Our 2009 product lines represent a new generation of converged products that blend technology with the active lifestyles of European consumers (Mallin, 2011, p. 13). Digital Marketing Certification: Why It Matters for Your Career? Products in the Marketing Mix of Samsung. 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. Apples human resource strategy traces its roots to Steve jobs business principles. This aspect has already been highlighted in this paper as one area of Apples key competence areas. Promotion in the Marketing Mix of Apple Inc. Retrieved from Marketing91: https://www.marketing91.com/marketing-mix-apple-inc/, Marketing91. Do you want to know why Samsungs marketing is better than Apple? The strategies however did not yield much fruit. Samsung also believes that through a set of values, it can be the best company in the technological world. Incorporated in 1977, the company was called Apple computer. Consumers and different specialists therefore acknowledge Samsungs unique input in the design aspect of its products. Different aspects of Apples operations have been perceived to be responsible for Apples success. Samsung's income was similar to 17% of Southern Korea's $1,082 billion cash dollars cash money cash GDP (Samsung, 2012). % If Apple doesn't file a suit, then Samsung's dominant strategy is to, of course, file a suit. "Apple vs. Samsung: Marketing Strategy & Business Strategy." The companys entry to the developing market is however not a new phenomenon. In fact, the company withdrew its products from specific low-end retail stores much as Wal-Mart and target to higher-end retail stores like best buy and Circuit city (Henny, 2003, p. 4). The internal design team has been credited with innovations of modern mobile technologies. The strong brand loyalty among Apples consumers was however built naturally due to impressive product quality. Now days in the modern world the market have changes. This means that there is still more room for other companies to sell their tablets. Samsung also uses this market as a testing ground for its new products. Currently, other technological giants in the digital market (such as Sony) are becoming more worried about Samsungs growing success because recent reports show that existing technological companies are always seeking to know what Samsung is doing. This analysis acts as an important pointer to the strengths and weaknesses of the different portfolios operated by both companies. Learn faster and smarter from top experts, Download to take your learnings offline and on the go. The venture into the television market is only set to expand Apples playing filed because this market is a wider platform compared to the mobile or ipad markets. For instance, the recent Thailand flooding disrupted the companys operations because it distorted the supply chain of disk drive for close to half a year (Jason, 2011). Strategic Management: Theory: An Integrated Approach. It is not confirmed if Samsungs pricing strategy contributed to the companys decreased debt levels because the companys debt shrunk from an unsustainable $10.8 billion to a mere $1.4 billion. The owners of Galaxy S5 wander around them and are not at all embarrassed when the battery of their phone announces their weakness by notification. Samsung believed that it had to display its products in this platform because of the belief that the best way it could adequately increase its brand awareness was through publicity. The counter-intuitive strategy therefore acts as a sieve for non-performing employees. For example, VISA sought partnership with MSN because it had the strongest online presence as it tried to reach out to a young audience (Jason, 2011). No longer do customers have a keen eye on price at the expense of quality. This essay is available online and was probably used by another student. This report focusses on these two companies and their marketing mix strategies. Apple is superior to its competitors (Samsung, Huawei, LG), most of the Apple products have premium pricing. Brand value is closely related to its recognition, meaning that Apple is also one of the world's most recognizable brands. A couple of years ago, the global market was mainly dominated by Sony and Mitsubishi Corp. but over the years, Samsung has quickly come up to be a formidable force in the market. The main challenge of pursuing different strategies may be that some of the strategies may not be very good for the business. Sony was notably among the first companies to restructure its operations according to Samsungs new operations. The second reason Apple wants to venture into the television market is the existing platform expansion through form factor. Most of Apples products were initially produced in America but due to increased globalization and the proliferation of production opportunities elsewhere, Apples products are currently produced in other parts of the world. I will spend my last dying breath if I need to, and I will spend every penny of Apples $40 billion in the bank, to right this wrong. Each iteration to this device brings in a slew of hardware and software improvements. However, they also make a lot of crap. Nonetheless, most companies have a business strategy. In the new market for digital music players, Samsungs three-year-old Yepp is behind only the Rio of Japans D&M Holdings Inc. and Apple Computer (AAPL) Inc.s iPod. 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. StudyCorgi. Notably, Apple has organized different expos in the European and American markets where these loyal customers have met. Samsung Activate your 30 day free trialto continue reading. Observers note that Samsungs stocks are among the most widely held stocks in the international stock market because foreign investors hold about $41 billion in market capitalization (Morrison, 2004). At Samsung, qualifications are usually analyzed through educational excellence and work experience. 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. The company perceived this strategy as a tool to breed the best human power possible within every company department. This observation was made in reference to Apples strong business strategy. Both Apple and Samsung companies are in the electronics industry with specialty in mobile and computer technologies. 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). The increased efficiency of the integrated computer software also allows for work sharing, peer-review, and easy examination of the information obtained (Tim, 1991). The company has also managed to establish a dominant online presence because it is almost impossible to miss a Samsung advert in most heavily trafficked sites such as USA today or CNN. The coding technique shares many similarities with the other data analysis tools used in this study because it is mainly interpretive (Tim, 1991). According to (Interbrand2020), Apple is considered, in 2020, the best global brand with 38% growth and $322.999 m brand value under the tech- nology sector. The above statement has been apples motto for its production strategy. Currently, Samsung has a market capitalisation of about $154 billion, barely a quarter of Apple's. But if you believe that a company should be measured by how much it sells then it's Apple that is following Samsung as the second-largest electronics multinational in the . On the other hand, iPhone does not support such features compared to Samsung android gadgets. VAR. So far, the company has received positive reviews for its software ventures such as itunes but the company believes that in the future, it needs to increase its revenues stream by also venturing to the hardware market. <> Earlier, the mobile phone market was ruled by companies like Nokia and Motorola, Apple took over the market when it launched iPhone in 2007. This research paper on Comparative Analysis of Apple and Samsung was written and submitted by your fellow Recent smartphones and tablets of the brand are now positioned on the high end. However, such a move is not considered a strategic action for the company because it does not add to its revenue growth. Terms of Use, A Comparative Analysis of Apple and Samsung Regarding their Marketing Mix Strategies., A Comparative Analysis of Apple and Samsung Regarding their Marketing Mix Strategies [Internet]. Moreover, Henny (2003) perceives this market strategy as a credible way of marketing. This spike in sales was attributed to changes in consumer preferences. Samsungs innovation is not only present in the mobile market; the same commitment has also been witnessed in the television market. The scope of study will also not be limited to the type of business strategies adopted by the two companies. Apples comeback to profitability occurred in the 1998-2005 period when Apple developed new product lines such as imovie, and new operating systems for its Macintosh computers. In a recent press conference made at the Goldmans Sachs business platform, Cook revealed that only one out of four people do not buy Apples smart phones (Mallin, 2011). Retrieved from WhatIs: https://whatis.techtarget.com/definition/Macintosh, Samsung. Get your paper done in as fast as 3 hours, 24/7. A positive brand image (characterized by improved quality and better pricing) works for the company and consumers alike because the company enjoys improved profitability while the consumers enjoy improved product quality. These events paint a strong emphasis on Apples business strategies because they have been able to succeed in markets that have been previously dominated by other giant players such as Samsung (in the hardware market) and Microsoft (in the software market). Moreover, the market is still growing. However, after 1997, when a new management was set up, the companys market shifted to the high-end market. Usually, experts explain that an efficient and effective business strategy is the most appropriate type of business strategy for a company (Chris, 2008, p. 1). The slogan It does not take a genius was clearly referring to the Genius , experts of the Apple Store. Apple and Samsung have shown that they are very sleek in their operations. 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). Different factors are usually in play. However, with increased business opportunities comes more competition. <>>> Chris (2008) explains that. Evaluating the performance of Samsung and Apple in different quarters of 2011, we see that Apple sold 18.65 million Smart phones in the first quarter of 2011 (alone) while Samsung sold slightly more than 12 million units (Deagon, 2011, p. 1). Several companies around the globe acknowledge the importance of adopting the online marketing communication. PROJECT SUBMITTED TO: Over the next three decades, the group diversified into areas including food processing, textiles, insurance, securities, and retail. What industry is Apple and Samsung in? But fast forward a year, to Q4 2020, Apple did 79.9 million vs. Samsung's 62.1 million. The company has formed impressive consumer networks among its most trusted consumers such as the network of imac computers (Mallin, 2011). PESTLE Analysis Impact of Political Factors on Apple Apple is one of several American technology companies that has gained a large amount of cash. The final week of study will be dedicated to data presentation. Since Samsung and Apple have mainly competed on the Smartphone market segment, it is important to evaluate the sales of both companies on this front. Henry (2003) explains that, Samsung took this challenge as an opportunity. For instance, a small business owner may not account for competitor actions or the threats that may occur in the business environment. With the diversity of cultures, the same is replicated in terms of personalities, competencies and abilities. Apple was located in Cupertino, California. Have no time to work on your essay? IvyPanda. It is well ahead of competition in this market. However, experts observe that the launch of the ipad 4s jostled Apples sales in this market segment and though both companies have not been releasing the exact figures of their sales records, observers perceive the competition between the two countries to be very stiff (Deagon, 2011, p. 1). On the other hand, Samsung organization is well organized from the CEO, digital media and device solutions. Chris (2008) emphasizes that business owners have to take time to pinpoint their business strategies to guarantee their overall success. Samsungs strategy is however focused on the hardware market. 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