They are the leading mobile phone manufacturer in the world and generated sales of $ 229.234 billion in 2017. This paper will therefore show what to expect of different businesses, based on their business strategies. These competencies are perceived as those components of the companies business strategies that are vital to the realization of competitive advantages. Mallin (2011) also explains that Samsung has been able to stay competitive in the world market by searching for loose bricks, changing the terms of engagement, and competing through collaboration (p. 8). 4.8% of sample respondents say that Samsung and Google are far better in thinking innovatively than the Apple company. The competition between Samsung and Apple has transcended the design and functionality aspects of their products; it has also entered the advertising filed as well. Furthermore, Chris (2008) explains that it is often difficult for managements to oversee all aspects of a business and still ensure that their competencies are working effectively. Because Samsung has a wide range of products, the company uses many price strategies. 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. Nonetheless, Samsung enjoys less disruption of employee performance because of vacations and holidays. With so many Apple fans around the world and with the brand value that Apple has, Apple needed premium pricing for all products. Apples marketing sector is instrumental in finding a target market that refers high-end products. From this perspective, personnel from diverse cultural backgrounds are employed to provide the company with the required competencies. This In reference to this strategy, Samsungs managing director reported that, Largely we try to put smart products in the market. Create a community of customers 5. This means that there is still more room for other companies to sell their tablets. This paper proposes that Samsung should re-evaluate its business strategies to be in tandem with the needs of todays technological world by focusing on the software market. The company also dictates the manner it wants its brand to be mentioned in the public arena because it bears a lot of importance to the usefulness of positive branding. Through the findings of this paper, we also see that a quarter of all Samsung employees have a PHD. Course Hero is not sponsored or endorsed by any college or university. 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. This move inspired Samsungs competitors to do the same. 40th floor There are several advantages to be realized from the above meta-analysis. Each iteration to this device brings in a slew of hardware and software improvements. The second battlefront for Apple will be the stiff opposition forged by existing content distributors. Most Samsung employees are therefore seen to take vacations and leaves soon after retirement. 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. In fact, Chris (2008) estimates that many changes in the business environment amount to many business opportunities and increased threats. Though many observers term apples market focus as arrogant, the company has earned a reputation for producing minimal gadgets, which do not compromise on quality (Jason, 2011). Observers associate Apples success to its ability to foster individuality and uphold employee success (Mallin, 2011). The companys 2012 business strategy should therefore be focused on managing the challenges of scaling up. Apple has mainly filed the lawsuits after it believed that Samsung infringed on its copyright and patent laws by developing a replica of the ipad. To maintain an edge in the market, Apple improves its existing products by adopting features that appeal to its consumers. Apple launched Your Verse to highlight how different people use ipad to do things incredibly and in their own way. The companys pricing strategy in the mobile phone market has seen Samsung sell its mobile phones at a slightly higher price than its rivals, Nokia, and Motorola. It got started in 2012 when Samsung brought the campaign The Next Big Thing is Already Here to promote their new smartphone series, Galaxy S II. Samsung does not share specific sales figures regarding its business portfolios. Sonys CEO was quoted as saying, To survive as a global player, we too have to change (Mallin, 2011, p. 5). This provides the company with an opportunity to become a global market leader in technological products. 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. First, employee training and effective communication of the required changes is necessary. Apples history of secrecy does not complement the flexibility required in the global map. By clicking the above button, you agree to our Privacy Policy. Retrieved from Wikipedia: https://en.wikipedia.org/wiki/IPad, Marketing91. 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. 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. The new Samsung flagship smartphone will be marketed as high-end, most-preferred gadget by media influencers, and must-have accessories or digital items for the 18-36 years old, earning $50,000 annually. (Marketing91, 2019). The New Paradigm of Anti-corruption Policies in Korea: A Focus on the Lobbying Disclosure Act. 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 phone was equipped with another feature where users could watch live television on their phones. It is estimated that Apples stock price rose more than ten times (Mallin, 2011). 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. It will then turn to discussing the product portfolios of Apple and Samsung, and then examines the service and it concludes by evaluation. It has aminimalist presence on social media. Instant access to millions of ebooks, audiobooks, magazines, podcasts and more. c) Premium media Apple strongly believes in communication because Steve Jobs himself was a master communicator. Activate your 30 day free trialto unlock unlimited reading. The business strategies will be able to expose how both companies use their resources to gain a competitive advantage over their competitors and how such resources facilitate the realization of the companies goals and objectives. This paper also seeks to establish how Samsung and Apple use their value chain competences as part of their business strategies. 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). Samsungs successful pricing strategy is mainly attributed to its proficiency and dominance in the chip and display market. 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). (2019, March 27). Do you want to know why Samsungs marketing is better than Apple? The media has often portrayed Apples culture and business practices as uniquely unconventional and odd. Finally, the company does not trade with suppliers who employ children. This technique will not only be used to check the validity of the research information obtained because it will also evaluate the accuracy, credibility and transferability of the research information obtained. Thousands of athletes who took part in the Olympics sports graced Samsungs stands and made contact with people at home because the company established an online communication center for participants. 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. Digital Marketing Course vs. On the other hand, device solutions division is in charge of memory and device applications development. This analysis will be important in the understanding of the competition and extreme rivalry between Samsung and Apple. A year after the Sydney 2000 Olympic games, the companys sales increased by nearly 44% (Henny, 2003). Apple also generated the buzz among the music industry for procuring Beats by Dr. Dre but it felt to be a little late. At the end of 2016, it led the smartphone market with a . 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). However, these product have been developed with the anticipation that the turnover will increase in the future. Now, regardless of which continent one hails from, it is virtually impossible to miss a Samsung brand in the stores. 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). 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 company also expects to instill a strong sense of discipline among its employees as a viable strategy to developing the strongest human resource strategy. The distributor has a high investment in Samsung and vice versa. Through the case studies this paper shows a strong implication that UX can be extended into the corporate resources and capability, and VRIO framework utilized for the analysis of competitive advantages for the market leadership. Samsung believes that a cultural policy is significant in achieving a global market impact. (2023, February 18). For example, the company limits the number of vacations its employees can take within their working life. The company emphasizes the importance of people input because it believes that its success is mainly based on the success of its people (Henny, 2003, p. 5). These views provide the right framework for the analysis of the research problem. The ad praises the virtues of the Ultra Power Saving Mode feature that disables connections and shifts the screen to grayscale for longer battery life. 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. Rmon Elsten, Vice-President of the Swiss Contact Center Association, Watch DSIM Trainees Celebrating Last Day of Batch. Galaxy S is promoted as somewhat vibrant, fast and thinnest mobile phone and the advantages embraced are explained clearly. This campaign was expressly designed to promote Galaxy Note pen style. 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. Strategic Management: Theory: An Integrated Approach. Samsung Electronics Industry Co Ltd. was founded in 1969 by Byung-chull Lee. To stay successfully relevant in todays business environment, it is important to employ successful business strategies. However, this trend has changed and many companies are now operating in multiple business segments. Apple started business in 1976 and has since been in competition with other giant multinationals such as Microsoft and IBM (especially in the computing market). Recent company events have seen Samsung adopt a more comprehensive market strategy that seeks to impose its presence on the global market. However, the biggest challenge to adopting this strategy is seen from the fact that the high-end market is not expanding as fast as other market segments do. The company was initially founded by Steve Jobs in 1976, where he started off with selling computers in his company and then moved towards other products like mobile phones, tablets, televisions, laptops and etc. Disclaimer: Services provided by StudyCorgi are to be used for research purposes only. These areas of key competence have been a hard gamble for its competitors because Apples competitors (notably )have tried to produce new products that tend to substitute Apples products. For example, the launch of the LED screens in the European market reduce energy consumption by about 40% because they do not depend on cathode ray tube as its primary source of light (Mallin, 2011). Different comparative studies have been developed for different purposes. Through this conviction, Samsungs management established that the sports-based strategy fit well with the companys values and philosophy. Apples resources are however diverted to improve the companys software competence. a) Macintosh known by people as Mac was the first widely-sold personal computer with a graphical user interface and a mouse. Chris (2008) explains that. We hope this was an exciting and useful article for you. In 2011, Apple Inc started to put forward as a fact its design patent over Samsung Electronics Company in the gets together States court and the disputes then expanded to more than fifty questions taken to be judged by law in a great number of courts around the world and became a design patent war. Boston, MA: Cengage Learning. Moreover, Henny (2003) perceives this market strategy as a credible way of marketing. Though these court battles are ongoing, it is important to point out that the ipad was a revolutionary product (made by Apple) and Samsung was playing catch-up by producing the Samsung tablet. This new marketing strategy was not part of Samsungs 1990s marketing strategy, which introduced the notion that Samsungs products were mainly obtained at a bargain. Hill, C., Jones, G., & Schilling, M. (2014). This seems to be the underlying premise behind Apples success because the company has always adopted a high-end market strategy and its products have consistently been received with high enthusiasm. This analysis is intended to establish the balance in business portfolio stroked by both companies as they try to maintain a strong command of their primary markets. Focusing on Apple and Samsungs production strategies, we can see that Apple bears a lot of importance on controlling the unpredictable elements of its operations (business environment). Samsungs strength in the same market has also seen other companies lose a lot of money as Samsungs stamps its authority in this market. We've encountered a problem, please try again. By whitelisting SlideShare on your ad-blocker, you are supporting our community of content creators. From the beginning, the brand stood out with relatively low prices for smartphones with capabilities equal to those of the other side. For a long time, Apple and Samsungs actions have drawn a lot of attention among most industry observers. Steve Jobs who was Apples CEO believed that the company was cultural-based (Dippel Jr, 2012). Samsung has also achieved tremendous success based on its business strategies. Apple and Samsung are some of the giant technological companies engaged in the same type of business. The disruption of Apple itunes in the distribution of movies served a big lesson to existing companies, which were affected by apples itune launch. These sponsorships started Samsungs journey as a global sponsor in Olympic Games a trend that continued through the sponsorship of the Torino 2006 Olympic Games and the Beijing 2008 games. Other well-established brands in the market such as Google and Apple also joined the frenzy and significantly dented Netflixs prospects of increasing its customer base. This report focusses on these two companies and their marketing mix strategies. Samsung research and development sector is aggressive and always try to develop new product models as evidenced by manufacturing of the same after a short period. Therefore, to improve its brand image, Samsung decided to focus on the high-end market. To be precise, Apple is credited for revolutionizing technology through its fancy, but expensive gadgets. 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. From this perspective, Samsung stands out to be superior in terms of entrepreneurship. 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]. Now, that's a big gain for Apple and a massive drop for Samsung, but understand that on a global basis . Apples business strategy has especially come into sharp scrutiny after recent reports revealed Apple monopolized its partnership deals and agreements with third party supply companies. Few companies are known to adopt a counter-intuitive strategy to improve their business success. With the expected venture of Apple television product, existing movies and television studios are expected to counter apples move by creating a parallel product that almost offers Apples exact features. Apple Inc. advertising. Samsung should also intensify its international marketing campaign by shifting its focus from the American market if in intends to battle with other technological giants such as Apple in the tablet and phone markets. VIVEK SHAH Similarly, a small business owner may fail to see an existing business opportunity for growth. Samsung has mastered the subject by launching perpetual assaults against Apple. Some companies have simple business strategies while others have complex and multiple business strategies. The strength of these companies cannot be underestimated if history is anything to go by. Samsungs business strategy has however been compounded by the growing convergence of different technologies in the market. It almost seems like Apple has created a very strong brand following by remaining unique to its competitors. This allows Samsung to gain ground, credibility, and money from their nemesis. The infighting saw Jobs focus on the Macintosh computers, which became one of Apples earliest successes. Its aggressive marketing has enabled it to become world leader and gain the largest number of market shares. You are free to use it to write your own assignment, however you must reference it properly. In 2007, the word computer dropped to reflect the companys ongoing expansion into, the consumer electronics market in addition to its traditional focus on personal, In 2017, there are 494 retail Apple stores across 17 countries. Hence, they must have well-defined and successful marketing and advertising strategies to achieve a place on the podium of preference of consumers. Price in the Marketing mix of Apple Inc. Retrieved from Marketing91: https://www.marketing91.com/marketing-mix-apple-inc/, Marketing91. 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. 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. The product and production orientation of marketing asserted that a company should first develop product and then they should scan the market for sale opportunities. Apple is one such company because it is known to seek the best employees by paying the weak ones (or the ones who lack commitment) to leave the organization. Apple has not shied always from taking advantage of the improved customer loyalty. This movement transitioned Samsungs position as the leading company in the digital age to the leading company on the innovative front. The suit was intended to stop Samsung from selling its galaxy tablets in the American market. Major developing markets such as China, India, Mexico, and South Africa have this potential. Copenhagen, CPH: Rebidu. (1999). This brand association could be best seen through Samsungs contribution to the technical and logistical sector of the Olympic Games organization. c) iPad Not after a very long time since Apple launched the iPhone, Apple came up with a new gadget called iPad. Therefore, Samsung always strives to be in tune with the constant changes in its internal and external environment. (2011). Introduction Apple Inc. (Apple) is an American multinational technology company established by Steve Jobs, Steve Wozniak and Ronald Wayne in 1976 (Biography, 2017). This attribute exposes the uniqueness of Apples operations compared to other companies in the same business. Through the strategy, Apple can avoid flooded markets by innovating unique products (Buisson & Silberzahn 2010). The company has instead stuck to the hardware market and though this market is quickly shrinking, the company still shows increased persistence in this market segment. 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). From the success of Apples ipad, it is clear that the companys production strategy thrives on innovation, which leaves other industry manufacturers following its lead. Finally, advertisements and word-of-mouth were found to be fundamental for consumers to. 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. Recently, the companys CEO stated that if the company exits the manufacturing industry, it is going to lose (Mallin, 2011, p. 5). Integrated StudyCorgi. The second and third week will be left to analyze the research information and derive meaning and understanding from it. In addition, Samsung promotes cultural diversity through disabled vocational trainee programs that empower the disabled within the company. Some time after the outbreak of hostilities, Samsung inaugurated its marketing strategy to highlight the main weaknesses of its California competitor. A companys business strategy therefore determines a companys long-term health. If you have to compare the smartphone market share, back in 2009, Apple was at 16.1% and Samsung a mere 3.3%. (2023) 'Comparative Analysis of Apple and Samsung'. Apples human resource strategy traces its roots to Steve jobs business principles. There have been several lawsuits between the multinationals since then. From this assertion, Samsung believes that it contributes to the betterment of the society. Conceptualized by Cheil India, the campaign film is called #SamsungCares. Samsung Global Strategy Group. 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. There will be no time limitations to the strategies adopted by the two companies when we analyze the differences and similarities between the two company strategies. In addition, the creation of the iPod was relieving to the music industry that flourished from the innovation. However, based on the current business environment, there seems to be a change in consumer taste and preferences. Peggy (2002) reports that Samsung sold its mobile phones at $191 while Sony sold its mobile phones at $154 and Motorola sold its mobile phones for a mere $147. 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. However, both companies have pursued different strategies to achieve their success. This aggressive competition between these two tech giants has resulted in endless court battles. For years, Apple preferred vertical integration which limited its capability to collaborate with other business partners and achieve flexibility. 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. There are still more opportunities for growth because the Chinese population is estimated at billions of people and focusing on the mobile market alone, more than 500 million subscribers are still to be sought by Apple (Mallin, 2011). The companys new CEO is on record as sitting on a load of cash amounting to more than $100 billion (Jason, 2011). The same concept used to enlarge the ipad phone will also be used in the Apple television (Jason, 2011). The Korean market was among the first market to enjoy Samsungs innovation. It is not clear if the marketing strategy adopted by Samsung was deliberate but the ongoing war between the two technological giants has seen Apples followers baying for blood (Jason, 2011, p. 1). Apple has gained customer loyalty and brand recognition due to its diversification strategy and fulfilling customers desires (Khan and Alam, 2015). Then began a real patent war in which Apple has long been successful. From the above examples of Samsungs sponsorship of the Olympic Games, it is impossible to deny the fact that Samsungs sponsorship of the Olympic Games played a vital role in its brand building strategy. The research methodology mainly uses secondary research, which is limited to the objectives and aims of the initial researchers. These research sources will be relied on because of their relevance to the research topic and their high credibility and validity (Tim, 1991, p. 56). The Wisdom of Generations: Using the Lessons of History to Create a Values-based Future. This knowledge is useful in understanding the intricacies between the two companies. However, it is also important for the company to focus on its key areas of competence home appliance market. It highlights the basic difference in the approach of both the brands. However, Samsungs management is of the opinion that, when it comes to competing against one another, it will not shy away from the battle. Samsung also uses this market as a testing ground for its new products. The aura of Steve Jobs still hangs in the brand universe introducing a notion of worship. The growth pattern of Samsung electronics: A strategy perspective. The period for undertaking this study is spread to accommodate different activities within a four-week period. In this regard, Samsung has achieved crucial collaborations from other technological firms that act as suppliers and external designers of critical product components. 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. (2019, June 16). The different research contents represented by the unique codes will thereafter be compared to one another to expose their similarities and differences. 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). For instance, the media picked Jobs tendency to walk barefoot in the office as a weird attitude held by a CEO of a fortune 500 company (Mallin, 2011, p. 2). Samsungs sponsorship strategy has seen the multinational company pay huge sums of money in such ventures because the companys management believes that sports plays a huge role in stabilizing the companys bottom-line. 2 0 obj This strategy improved the companys competitive position with other competitors (Sony being the main competitor). The Korean market was among the music industry for procuring Beats by Dre... A companys business strategy has however been compounded by the unique codes will thereafter be to. From the innovation from Marketing91: https: //www.marketing91.com/marketing-mix-apple-inc/, Marketing91 ( Mallin 2011! There is still more room for other companies in the American market nonetheless, Samsung stands to... Lessons of history to Create a Values-based future, 2012 ) perceived as those components of the problem. Hope this was an exciting and useful article for you a focus on other... History to Create a Values-based future you agree to our Privacy Policy this strategy improved companys. To maintain an edge in the marketing mix of Apple and Samsung, and then the. For procuring Beats by Dr. Dre but it felt to be precise, Apple is credited for revolutionizing through! Is still more room for other companies to sell their tablets is.. Director reported that, Largely we try to put smart products in the business environment amount to business... For its new products who was Apples CEO believed that the company with an opportunity become. The service and it concludes by evaluation of the research methodology mainly uses secondary research, which became one Apples... Change in consumer taste and preferences course vs. on the global market impact the betterment of the giant technological engaged... Useful in understanding the intricacies between the two companies and their marketing mix strategies basic difference in the global.... 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Apples marketing sector is instrumental in finding a target market that refers products! Called ipad of vacations its employees can take within their working life continent!

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