Apples business strategy has proved successful over the recent past. A companys business strategy therefore determines a companys long-term health. Other hardware manufacturers have tried to adopt the same strategy to no avail. Samsung perceives the online communication channel as a unique way of communicating to its consumers because it is more interactive and involving. This vision is shared by Samsung whose mission is to be a global leader in electronic manufacturing and digital media. Save my name, email, and website in this browser for the next time I comment. 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). VISA sought the services of MSN to create more brand awareness about a new promotional campaign aimed at reaching out to young people aged 18-29 through a website, which was custom designed to accommodate the campaign titled Happen (Jason, 2011). For instance, the companys move to use the same girl in an advertising campaign intended to hit out at its closest rival in the tablet market Apple has been highlighted in earlier sections of this paper as an aggressive strategy adopted by the Korean company on its competitors. 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. Samsungs previous brand strategy was changed because the company realized that setting low prices for its products was just one way of competing in the lower-end market segment, but it did not provide the opportunity to compete in the high-end market segment. 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. This essay sample was donated by a student to help the academic community. How are their business and marketing strategies different? 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. (2019, March 27). Similarly, Samsung is giving importance on advertisement of Galaxy S. It promotes mobile phones- bringing a dark blue interface in contrast to the white background brought by Apple. Once a product is getting old, not in trend or any competitor has launched a similar product, Samsung immediately drops the price to attract customers. The company aligns its business strategy to both marketing and production. Consequently, the company decided to develop online versions of its movies and retail them online. This makes the flow of information and decision-making simple. This legal fight is not inclined to close quickly. This feature allowed many people to shift from the conventional GSM payment mechanisms to paid VoIP services. This means that it uses several sales channels for visibility and accessibility of selling its products to a global market. Have no time to work on your essay? The number Apple Inc. is an American multinational company that designs and sells consumer electronics. Apple and Samsung have achieved high levels of business success over the years. For instance, some price strategies used by Samsung are Skimming price and Competitive price (Marketing91, 2019). The study of business strategies therefore provides a big picture regarding how different aspects of a businesss operations work towards achieving the ultimate business goals. However, on a larger platform, Samsungs resources are designed to strengthen its areas of key competence television market and other hardware market segments. The company managed to develop a strong brand through simple product designs. Comprehensively, we will be able to come up with a systematic review of the research problem by eliminating the less-precise effects size of the research information collected from the secondary research sources. This provision is considered unpopular in most western economies but Samsung has been able to implement it because of its diverse work locations. Prevent price wars by highlighting your special value proposition 6. The Modern retail segment includes large retailers as Croma, Hypercity, Vijay sales, Viveks and any others who are present in the modern electronic retail chain. The first product of Apple was the Apple I (Deffree, 2019). In this regard, Samsung face threats from low-cost competitors and technological giants such as Apple in its major markets. However, after 1997, when a new management was set up, the companys market shifted to the high-end market. 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. This trend shows that Samsungs prominence in the Smartphone market has been on the rise. (2019, March 10). Knowing the rivalry of the two companies, the choice of this actress is certainly not a coincidence. Currently Samsungs strategy focuses on producing high-end goods, which are designed to appeal to the high-end market segment. Learn how to market a business online just like experts & agencies do it. According to the companys management, every day, every employee is supposed to abide by the above philosophy. 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. The usefulness of the qualitative research design will therefore be limited to getting a comprehensive conceptualization of the differences and similarities between Samsun and Apples business strategies (based on the backdrop of organizational decisions made by the companies). The media has often portrayed Apples culture and business practices as uniquely unconventional and odd. It will be very difficult to predict the timing and severity of the competition. The increased efficiency of the integrated computer software also allows for work sharing, peer-review, and easy examination of the information obtained (Tim, 1991). By extension, this data analysis tool will include the input of experts and professionals in analyzing the data collected. 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. This is the basis for Samsungs copyright infringement lawsuits against Apple. A quarter of all Samsung employees have PHDs. This phone was equipped with another feature where users could watch live television on their phones. These advantages have spanned different layers of the companys operations but some of the most notable areas of improved performance have been improvements in production processes and increased investments in research and development to increase its competitive position. And we paid a lot of attention to our distribution channels. Certain Samsung products such as mobile image sensors currently have low turnover. Steve Jobs innovations of changing the computers to small gadgets like the iPad were extraordinary. This is one strategy that Samsung ought to learn from Apple because it has been left to pick up the pieces behind Apples success (at least in the tablet market). Mallin (2011) observes that the success of Samsung can be attributed to its unique competitive strategies. Apple organization design was previously in disarray. Jason (2011) explains that. The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. Therefore, emphasis will be given to explaining the motivations behind the business strategies for Samsung and Apple so that smaller businesses can be able to understand how to develop a successful business strategy. Moreover, Henny (2003) perceives this market strategy as a credible way of marketing. Obviously, issuing dividends to the companys stakeholders is a sure way of sharing the companys success with the people that matter (Jason, 2011). This gives a Nash Equilibrium in which both companies file a . Price in the Marketing Mix of Apple Inc. Retrieved from Marketing91: https://www.marketing91.com/marketing-mix-apple-inc/, Marketing91. Apple apple vs samsung Samsung Security US government warns Royal ransomware is targeting critical infrastructure Carly Page 8:00 AM PST March 3, 2023 The U.S. government is sounding. Therefore, to improve its brand image, Samsung decided to focus on the high-end market. Morrison (2004) notes that, Samsung is operating under a risky corporate governance strategy because most of its investors stand to lose if the company does not boost its sales in the coming years. 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. Experts note that Samsungs business strategy is therefore unsustainable and it is going to suffer the consequences of sticking to the hardware market. The data analysis section will use four tools. The final week of study will be dedicated to data presentation. The qualitative research design will be used as a precursor to quantitative research, which may form the basis for future studies on Apple and Samsungs business strategies. Founded in 1969, Samsung Electronics Co., Ltd. with the headquartered in Suwon, South Korea. Samsung Global Strategy Group. To stay successfully relevant in todays business environment, it is important to employ successful business strategies. The New Paradigm of Anti-corruption Policies in Korea: A Focus on the Lobbying Disclosure Act. Apples venture into the television market and Samsungs smooth transition into the digital age highlight the similarity in product innovations. Apple television also intends to use motion sensor technology where the product will be able to follow the action in a room (through a video conferencing platform) and relay the same on the screen. Google was also involved in a similar brawl with its competitors (such as Motorola) and it also settled some of its cases using its financial reserves. This observation was made in reference to Apples strong business strategy. There is also a strong similarity between Apple human resource strategy and Samsungs human resource strategy. The focus of the marketing mix is on the 4P variables, namely, product, place, promotion, and price. Henry (2003) explains that, Samsung took this challenge as an opportunity. In the last quarter of 2011, Samsung is estimated to have sold between 32 and 35 million smart phones but Apple has not released its official figures yet (Deagon, 2011, p. 1). For instance, they have been able to control their human resource strategy through the counter-intuitive strategy, which weans weak employees. Long ago, Samsung was a supplier of Apple; however, it decided to challenge the latter. One of the main reasons Apple is using the premium price policy is because of the technology they are using in their products. As opposed to producing average goods (or crappy products), Apple has focused on producing the best quality goods. The same approach has been applied in its distribution, marketing and product development strategies. This leads to improved productivity. 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. Consumer electronics, Cloud computing, Digital distribution, Apples human resource strategy is based on employee excellence as one of its core elements of business success. There are many lessons that can be learned from the Neflix case. Apple unveils Motorola alliance: New move in digital strategy will see music downloads to mobile handsets: Plan aims to keep iTunes ahead of its competitors. On the other hand, managerial marketing is focused on the implementation of specific targets.' Seongjae (1999) notes that most of Samsungs employees do not leave work for vacations or holidays unless they have attained their retirement age. These partnerships have been part of Samsungs key areas of operations since its inception. Apple is engaged in the manufacture of hardware products such as Macintosh, portable music players, personal computers (PCs) and software, networking solutions, third party digital content and related software. Now, regardless of which continent one hails from, it is virtually impossible to miss a Samsung brand in the stores. The company does so by anticipating new changes in the business environment by establishing the needs and demands of the market so that the companys success is sustainable in the long-term. Over a span of three decades, Apple Inc. has been able to establish itself as a force to reckon with in the electronics market. 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. Hill, C., Jones, G., & Schilling, M. (2014). The positioning of apple once formed by Jobs, still reaps its fruits today. Available from: https://edubirdie.com/examples/a-comparative-analysis-of-apple-and-samsung-regarding-their-marketing-mix-strategies/. Your privacy is extremely important to us. We live in a highly visual world. The same effort has been replicated in the world cyber games. They switched their core competitive power from mass manufacture to its own brand which based on digital technology (Henny, 2003, p. 4). There are also more concerns regarding the intrusion into different cultures around the world because most cultures tend to be exclusionary rather than inclusionary. The overall sale in the NAND flash memory market is estimated at $7 billion and Samsung reaps heavily from this market (Jason, 2011). Its marketing strategies are mainly based on television and print advertisements. Though the memory chip business is prone to the challenges of its cyclical market, Samsungs presence in this market segment is unrivaled. This was one pet project for Jobs. The findings of this study will therefore only be limited to the activities/strategies of Samsung electronics and not the entire Samsung group. 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. It has changed the usage of computers around the world. However, a companys success through such marketing strategies not only depends on the success in the branding strategy but also on the supporting strategies. (2019, March 27). On the other hand, Samsung has a wide range of product models that are not high-end. Alternatively, they could go big and buy Mastercard ($50B market capitalization) (Mallin, 2011, p. 4). products. It is famous for beautiful designs and new applications. Apple has always shown a key interest on the software market but Samsung has stuck to its hardware market. Form the above analysis, we can see that Apple and Samsung differ in the manner they implement their production strategies. The company believes the Apple television is going to be a big project for the company because of several reasons. Apple is superior to its competitors (Samsung, Huawei, LG), most of the Apple products have premium pricing. This is because everything was controlled by the CEO. Click here to review the details. 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). In the recession of 2008/2009, Apple continued to post an impressive sales growth. This paper therefore sheds light on the business practices adopted by the two companies to act as a pointer for small businesses wishing to achieve the same level of success in different market segments. Moreover, the market is still growing. On the other hand, Samsung has a wide range of product models that are not high-end. Galaxy S is promoted as somewhat vibrant, fast and thinnest mobile phone and the advantages embraced are explained clearly. Concerning the quick response by Samsung, Henny (2003) explains that Samsung is good at producing easily marketable gadgets that can sell quickly. For instance, it should be understood that whatever action taken by a business is done within the confines of a strategy. This technology was first given to Sony, but the Japanese company failed to take advantage of it because they did not understand how to produce economical gadgets. IvyPanda. From this perceptive, the company has to establish a global mindset and relevant world cultures. 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). Apples financial strategy is characterized by many speculations regarding its yearly cash flows and the existing uncertainties that characterize its mobile phone lawsuits between the company and Samsung (among other technological companies). Truly, Samsung declared a ten-year growth strategy based around five organizations Privacy Policy BACHELOR OF MANAGEMENT STUDIES Samsungs presence is also seen on sporting equipment such as skating boards, sporting gears, billboards and other places. The companys vice-president affirmed that, sports sponsorship is a strategy that fits well within our operations at Samsung. Recently, Japan was quoted as developing its own Chinese plants to take advantage of the reduced production costs in this location (Jason, 2011). Apple is a leader in the innovation and Samsung is a strong competitor to it. However, history shows that persistence in this business model (hardware) is not sustainable in the end. Since the company started business in the 70s, it has created a lot of buzz. VAR (2005) explains that Apple and Samsung share a common business strategy, which is based on producing innovative products. GovNet eJournal, 1(1). 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. However, Apple seeks to engage an incremental product strategy for the developing world. Here, the computation of the findings and the data analysis process will be done. Though the concept of generalizing findings is highlighted as a limitation for this study, the meta-analysis helps to generalize the findings of this research to different (but related) contexts. "Comparative Analysis of Apple and Samsung." Their level of reliability and validity are also assumed to match to journals and business publications. The second data analysis tool to be used will be the coding technique. Introducing changes that improve organizational performance and competitiveness at Apple and Samsung requires the following. From the growing potential in these emerging markets, Apple perceives the establishment of a market access strategy to be more important than introducing innovative products. 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. Keep marketing and products simple 2. This is considered strength, as well as an opportunity for the company. Only companies such as Coca Cola, IBM, and Visa have achieved this sort of brand recognition at a global level. To sum up, we discussed the positioning strategies of Samsung and Apple companies. Samsung also has a unique work ethic, which guides the behaviors of its employees. 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. This sales record was complimented by the reign of the technological company as the king of android phones. In an article citing the use of the same child for Apple and Samsungs advertisements, (Jason, 2011, p. 1) explains that. Samsung has also connected with major apps and platforms to target audience with social campaigns. Learning a companys business strategy is an important predictor of the companys performance in the business environment. No longer do customers have a keen eye on price at the expense of quality. It is estimated that Apples stock price rose more than ten times (Mallin, 2011). Apple has launched online advertisement campaigns to reach the users. Giant multinationals are known to have multiple business strategies because they operate different business portfolios. This attribute exposes the uniqueness of Apples operations compared to other companies in the same business. Both GRI and G3 evaluates the environmental performance of Apple products in terms of energy consumption, pollution and waste generation (Cowan, Dopart, Ferracini, Sahmel, Merryman, Gaffney & Paustenbach, 2010). In addition, to keep up with the changing times and remain on top of its peers, Samsung embarked on a ferocious strategy of streamlining its operations to create more efficiency. This will be an expansion of the form factor. 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). Apples business-level strategy is to utilize differentiation as an innovation mechanism. While Apples epicenter lies around how people use its products to make a difference to their life, Samsung emphasizes and advertises its features. Apple spends just 0.6%, and General Motors 3.5%. Samsung adopts a more liberal strategy over its engagement with its partners and unlike Apple, it does not limit the kind of information that its partners may release to the public. In the 2011 period, there was increased speculation about the health of Apples CEO, Steve jobs and the effect of Jobs health on the companys future. In the Korean market, Samsung is deemed the leader in innovation technology. This scenario depicts a situation where there will be a strong connect between globalization and the comparative attributes for this research topic. In addition, through the companys culture (introduced by Steve Jobs), Apple seems to be very keen on small aspects about its products. On the other hand, Samsung has a large pool of engineers who design products internally. Different organizations have different motivations for formulating their business strategies but as academicians; it is important to clear some of the misunderstanding held regarding business strategies. However, when considering thier corporate social responsibility programmes they couldnt be much different. This report focusses on these two companies and their marketing mix strategies. In 2013, nearly $ 14 billion was spent on marketing and advertising, enough to put your eyes on it. Apples history of secrecy does not complement the flexibility required in the global map. In addition, this study aims to set a globalization connection between the business strategies adopted by Apple and Samsung. Though Samsung and Apple specialize in different aspects of hardware and software manufacturing, there has been a strong competition between the two technological companies. stream The secondary research methodology will therefore be useful in gaining a proper understanding of the research problem. In addition, unlike Apple, Samsung does not dictate the terms for its distribution channels. Apple Inc. has a global presence in 10 countries around the world and it runs 357 retail stores in these locations. This suspicion exists despite the fact that Samsung is considered among the most transparent companies in the emerging market economies. Jason (2011) notes that Samsungs strategy is informed by its tight grasp on the emerging markets. This essay begins by discussing the market value of the both companies. Facebook often face much scrutiny from the public and the media as they are often involved in scandals as mentioned earlier leaking peoples personal nformation to other companies. This mission statement supports Samsungs long-term goal of delivering high-tech and reliable products to many people across the globe irrespective of their socio-economic status. 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). Samsung is present through various channels in the market. The companys strategic planning process is however developed by keeping a close eye on the competition and looking for unexpected ways to overshadow its competition. 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. 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. This help us the know more about the customer awareness about the product and how to increase customer loyalty to the company so as to gain more competitive advantage. https://ivypanda.com/essays/comparative-study-of-business-strategy-for-apple-and-samsung/, IvyPanda. For two days in late May 2012, Apple CEO Tim Cook and Samsung CEO Gee-Sung Choi met with a judge in the U.S. District Court of Northern California in an attempt to reach a settlement in a high-profile U.S. patent case, a sobering example of negotiation in business. b) iPhone Apple is the first company that introduced the phone without buttons focusing only on the multi-touch smartphone. Apple spends just 0.6%, and General Motors 3.5%. Build an experience ecosystem 3. Later, Samsung also decided to sell about $2 billion worth of non-core business so that it could concentrate on its main businesses that account for the companys main revenue stream. The market for NAND flash memory has grown over the past years, thereby increasing Samsungs profitability over the years. These sales channels are as follows: Apple stores. Most E-commerce portals have a separate page linked to the Apple home page where consumers can find the desired products, and they can buy from the companys official website (Marketing91, 2019). The new company strategy informed the companys decision to discontinue the production of television sets, which were below the 26-inch specification (Mallin, 2011, p. 5). , we discussed the positioning strategies of Samsung can be attributed to its (! 2011, p. 4 ) the digital age highlight the similarity in product innovations against Apple by Apple Samsung. Two companies and their marketing mix strategies they are using in their products portrayed Apples and... The world and it runs 357 retail stores in apple vs samsung marketing strategy pdf locations stuck to its (. 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