Well, we do. 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. (2007). 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 is an uncontrollable aspect of the companys operations. This development was seen as the main reason why Samsung exited the lower-margin segment of the television market by stopping the manufacture of television sets, which were lower than 27 inches. These partnerships have been part of Samsungs key areas of operations since its inception. For example, the company's 4Ps encompass multinational operations in the consumer electronics market and the Internet services market . To emphasize this point, Mallin (2011) explains that Samsung decided to adopt business-to-business opportunities and existing enterprise space in the European market as part of an ambitious marketing plan to launch a series of exciting new products in the European market. Moon Ji-hun, head of brand consultant Interbrand's Korean operation, adds: When your brand doesn't have a clear identity, as is the case with Samsung, to keep spending is probably the best strategy. Obviously, there are some concerns over monopolistic tendencies because Apple is considered among the most valuable companies globally. This strategy was also complemented by further modifications to its product design so that the company was no longer perceived as an imitator to other companies designs. During the same event, Samsung also hosted an event dubbed national days that highlighted the national cultures of different countries that participated in the sports. With the launch of the ipad in 2010, Apples popularity soared and the companys stock price hit an all-time high of about $300 (Mallin, 2011). Targeting high-end customers poses as a weakness, as well as an opportunity from clients who want unique products. The company has formed impressive consumer networks among its most trusted consumers such as the network of imac computers (Mallin, 2011). Jobs stressed on cultivating employee excellence by starting a fellow program where outstanding employees were rewarded for their performance. To complete, this was the marketing mix of Samsung which shows that is a big threat to Apple Inc. High definition DVDs differ from conventional DVDs because the latter has a lesser storage capacity. The figures have changed over the years with Apple at 18% and Samsung at 23.4% in the first quarter of 2022. Apples human resource strategy is based on employee excellence as one of its core elements of business success. It is however easy for a companys management to ensure their companies competencies are effective to guarantee their competitive positions. Many Japanese, European and US companies learned the hard way that such business strategies do not work in the long-term but they also exposed the wisdom that companies, which insist on their traditional business models, need to invest a lot on research and development to come up with new product lines that are sustainable in the end (Jason, 2011). Samsung has increased its video efforts by over 360% in the past 5 years; on the contrary, Apple has only leveraged it by 5.8% campaigns a year, within the recent 5 years. This business strategy has been seen to cause a lot of stir among Apples competitors because it is a source of frustration. Some observers have termed this strategy as Crazy and illogical (VAR, 2005, p. 3). Introduction My personal smartphone My motives for choosing Apple Apple lowering price on iPhone 5c Assessing the pricing decision Comparing its sales to other Apple products Examining data related to the 5c Apple's new breakthrough products Examining the past breakthrough products Looking ahead to Apple's new, breakthrough products Samsung's global marketing strategy Ability to gain . 23 February. Samsung on the other hand hopes to attract and retain the best human resource by providing the best working terms possible. Observers perceive this business strategy as a confusing and risky one, especially if Apple were to apply the same strategy to some of its close business associates such as suppliers, distributors, and social media (VAR, 2005, p. 3). Through the above analysis, it will also be easier to develop a deeper understanding of business strategies and more so, it will be easier to develop a deeper understanding of how Apple and Samsung work. The printer and notebook PC are only some of the products that have been launched in the European market using this strategy. Sony was notably among the first companies to restructure its operations according to Samsungs new operations. products. The decision to sponsor the Olympic Games was also part of Samsungs acknowledgement that sports play a vital role in the betterment of the society. This aggressive competition between these two tech giants has resulted in endless court battles. Nonetheless, most companies have a business strategy. However, I think that both companies Apple and Samsung should come up with new features or new devices because the customers are more focusing on getting new technology which could make life easier. Strategic Management: An Integrated Approach: An Integrated Approach. Sony is estimated to have lost about $940 million to Samsung while Micron, Infineon, and Hynix are estimated to have lost collectively about $2 billion of its profits in the memory chip market to Samsung (Jason, 2011). Steve Jobs often took sick leaves but was present to officiate Apples launch of the icloud. The focus on the US market is considered important because a brands success in the US is considered the first step towards attaining a global brand status. Over a span of three decades, Apple Inc. has been able to establish itself as a force to reckon with in the electronics market. Samsungs innovativeness is also centered on taking advantage of new opportunities in its primary and secondary markets. (2019, March 10). Apple is using its mission and vision statements to become a leading innovation company in technology. However, with increased business opportunities comes more competition. Since the company started business in the 70s, it has created a lot of buzz. Thus, Samsung keeps competitive pricing in various categories to beat the competitor (Marketing91, 2019). Hill, C. W., & Jones, G. R. (2008). Jobs also introduced a new company philosophy where employees only have to work within specific areas of competence (Mallin, 2011). We've encountered a problem, please try again. 2022 Jun 29 [cited 2023 Apr 14]. One area of the analysis seeks to understand how both companies use their resources to support their business strategies while another section seeks to understand the differences and similarities between their business strategies. Samsung then acknowledged that the high-end market segment was more competitive than the low-end market and it shifted its marketing strategy in this regard (Henny, 2003, p. 4). This competitive pricing is used for products like televisions, air conditioners, refrigerators, like other competitors Panasonic or LG which sells similar products as Samsung. Apple spends just 0.6%, and General Motors 3.5%. However, after 1997, when a new management was set up, the companys market shifted to the high-end market. The two companies have found themselves engaged in legal battles. The strategies pursued by both companies are aimed at increasing their market share in the global environment. Apple has launched online advertisement campaigns to reach the users. b) Talking to the point as we see in their promotions, Apple is to the point, that means one ad, one message and one target (Marketing91, 2019). However, Steve Jobs went against this norm and took his time to focus on the little attributes of the product development strategy. During the 2007-2011 period, Apples success was cemented with the growing popularity of its iphone, ipad and ipod products. Furthermore, the introduction of mobile VoIP on the Smartphone is considered another area of key competence, which was advanced by Samsung and Apple, thereby, allowing their customers to use features such as Skype and Vonage on their mobile phones (Deagon, 2011, p. 1). Chris (2008) emphasizes that business owners have to take time to pinpoint their business strategies to guarantee their overall success. 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 use of the qualitative research design is also supported by the fact that this research methodology is flexible and supports the inclusion of case study research information. Samsung uses prompting strategies by lowering the prices, making it more affordable for customers. From this perspective, the company customizes products based on a major design preferred in the market. Though Apple Inc. is considered the number one company in the sales of tablets, Samsung is considered the leader in the sale of televisions. Market Segmentation Of Apple 1346 Words6 Pages a. The database is updated daily, so anyone can easily find a relevant essay example. 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. In case of Apple, when more and more people are seen having and iPhone, other individuals get compelled to have the one; this is known as halo effect. Samsungs management also believes that it holds most of the patents covering wireless communication and Apple should respect these patents. The companys new CEO is on record as sitting on a load of cash amounting to more than $100 billion (Jason, 2011). Certain movie multinationals such as Warner Bros have insisted on using the high definition DVDs but it still remains to be established where other companies will fall. Samsungs international marketing strategy has therefore been focused on the US market. Keep reading to find out! The headquarters of Apple is located in Cupertino, California and it designs, manufactures and sells consumer electronics, computer software as well as personal computers. Therefore, most of Samsungs marketing strategies have been designed to appeal to the high-end market. In 2010 alone, this market grew by close to 200%. Emphasis will be given to the business actions undertaken by the two companies outside their primary operating environments. Disclaimer: Services provided by StudyCorgi are to be used for research purposes only. From this perspective, the company always has a ready market that prefers uniqueness in terms of product specifications and price (Hills & Jones, 2008). Other companies engaged in the same business like, Microsoft, Cisco, and IBM does not realize the same profits as the Korean company does. This paper compares the business strategies of both companies and reveals that their production, human resource and marketing strategies are inherently similar. Among all these videos, we have selected those whose mockery is subtle, or almost . Apple expects to undergo the same court battles for some of its licensing and patent agreements regarding the use of the iphone in China. Apple v s Samsung leader of technology and marketing. The companys products and services include Macintosh computers, iPhone, iPad, iPod, Apple TV, Xserve, a portfolio of consumer and professional software applications, peripherals and iOS operating systems, third-party digital content and applications through the iTunes Store and a variety of accessory, service and support offerings. It is estimated that Apples stock price rose more than ten times (Mallin, 2011). The Samsung group is an umbrella body that includes other business segments such as insurance business. 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). This strategy is perceived as a close-ended approach to Apples operations because VAR (2005) warns that it may be toxic to the companys ecosystem. This case study here is looking at the competitive marketing strategies used by each of these names and what they need to step ahead from their rivalry position in future. The Olympic rendezvous acted as an entertainment spot located on a 1024 square feet piece of land on Athens Olympic sports complex where fans and participants sat and enjoyed the games (Henny, 2003). Apple has become largest company in the USA and one of the top companies in the world. More details about their targeting, marketing, and message strategies helped the giants become successful and famous. The company consequently made many millionaires a development that elevates it above many of its rivals who have also conducted IPOs in the past. Through this analysis, we will also be able to establish that a companys business strategy has a big role in determining a companys business actions. <> The research methodology mainly uses secondary research, which is limited to the objectives and aims of the initial researchers. Apple Inc. is a successful American company, which has been in existence since 1976 (Mallin, 2011, p. 1). We live in a highly visual world. Apple Marketing Mix: Place Apple implements an aggressive approach in reaching out to premium target markets. Apple has been competing with Samsung for a while now. Some of their corporate actions have been unconventional while others have been outright aggressive. It is famous for beautiful designs and new applications. Price in the Marketing Mix of Samsung. International Studies of Management & Organization, 28(4), 57-72. There are a lot of companies out there producing great products. x\Y~% uuYUA:fly!claWwC{=qAHjxv#UWd_Dfqu/7\~y7\~tO_Wwogo>|quUgn^P:O5]Sv?/.|qx\\X'TP X@vSx(-YK_v>l>0$K=7_ ? 3?V?/ Rl?|mOdt[yQU[9U^(E] qa-y:'qD. This makes the flow of information and decision-making simple. However, Samsung has not shown any interest in joining the growing number of companies entering the software market. Need a custom Research Paper sample written from scratch by Cisco is one such entity. The legal battle between the two giants of the mobile market has been the starting point for a quarrel that has only increased over the years and product launches. The findings of this paper will also provide a good platform to formulate a usable and adoptable view to the analysis of Apple and Samsungs business strategies. However, Samsung claimed that Apples arguments were unfounded. Xiaomi is the bronze medalist, picking up 190 million sales as a whole in 2021 despite not even being sold in the U.S. Through this strategy, Apple expects to retain highly motivated staff by eliminating weak staff. 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). 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. Different aspects of Apples operations have been perceived to be responsible for Apples success. The importance of learning a companys business strategy is part of strategic management. Integrated marketing communication strategy to be pushed will include print, radio, television, in-store branding, and the web. This debate touches on different aspects of corporate cultures such as flat, tall, casual or formal organizational structures and corporate cultures. The company discontinued the production of low-margin goods. These dealers can open exclusive Samsung showrooms. (2002).Samsung continues its high-end strategy. The companys sponsorship of the Olympic Games is part of the companys philosophy of producing better products and services for the betterment of humanity. However, on a larger platform, Samsungs resources are designed to strengthen its areas of key competence television market and other hardware market segments. February 23, 2023. https://studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/. 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. Apple may win at innovation & publicity but when it comes to marketing, Samsung prioritize complete entertainment. Jason, A. Different comparative studies have been developed for different purposes. These values are based on a few common principles such as people, excellence, change, integrity and co-prosperity. a) Elegant promotions Apple makes very simple promotions and most of their print and creative ads are done with a white and stylish background (Marketing91, 2019). 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. This essay sample was donated by a student to help the academic community. It is observed that executing a production strategy that meets the soaring demand in the global market for Apples products requires an efficient marketing and supply chain strategy. Though secondary research is mainly classified into internal and external sources, this study will mainly rely on internal sources of data because this paper focuses on specific organizations (Apple and Samsung). Apple is valued for its design, a core value of the company. UNIVERSITY OF MUMBAI The launch of the appstore and the icloud applications are just some of the few evidences showing Apples commitment to producing new software. IvyPanda. For instance, Samsung plays a huge role in meeting the demand of about 20% of the Korean population who buy new handsets every six months (Henny, 2003). Apple is one of those brands for me. Apple Inc. implemented the blue ocean strategy; concurrent pursuit for uniqueness and low costs to open up a new market and demand (Kim, 2004).The company used the strategy to supply creative and innovative products that changed the field of art. Apple is a leader in the innovation and Samsung is a strong competitor to it. Prevent price wars by highlighting your special value proposition 6. For close to a decade, Samsung has maintained this position. Through this conviction, Samsungs management established that the sports-based strategy fit well with the companys values and philosophy. Apples Injunction Bid Vs. Samsung Seen Partly Denied. Like Apples Siri platform, existing television pioneers such as Samsung are expected to scale Googles android platform to create friendlier interface features that are expected to be revealed through the siri platform. On the other hand, Samsung banks its internal capabilities to mass manufacturing. 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). Organize sales and marketing by customers, not products 7. This spat is between Apple and a Chinese company named Proview (Jason, 2011). FOR THE a) Skimming price Samsungs smartphones are like Apples, one of the best in the market, and they are the market leader in terms of the features and USPs that they provide. Jason (2011) also explains that Apple intends to incorporate an ecosystem lock-in in the Apple television through an assertion that. Apple and Samsung are the biggest smartphone companies operating worldwide. This work intends to understand how the communication strategies of Apple and Samsung affect the decisions of consumers in Portugal to buy electronic devices. Samsung also equipped the participants, staff and volunteers with wireless communication devices to facilitate the smooth running of the event. All products of Samsung are sold to a single distributor who in turn will sell it forward to retailers (Marketing91, 2019). Samsung is a South Korean multinational conglomerate headquartered in Samsung Town, Seoul. Apple has gained customer loyalty and brand recognition due to its diversification strategy and fulfilling customers desires (Khan and Alam, 2015). From the beginning, the brand stood out with relatively low prices for smartphones with capabilities equal to those of the other side. 4 0 obj However, based on the current business environment, there seems to be a change in consumer taste and preferences. By whitelisting SlideShare on your ad-blocker, you are supporting our community of content creators. Recent years have seen dwindling sales in the companys hardware segment but Samsung has had to reduce the prices of its commodities to sustain its demand.