apple vs samsung competitive strategy

As mentioned in earlier sections of this paper, this study will use secondary research sources as the main data collection tool. 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. Morrison (2004) observes that Apple and Samsung have had very different business strategies (based on their financial resources). 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. Apple’s 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. ), especially in the low-cost segment of global smartphone market/industry?3. Another constant attribute of Apple’s strategy is that they have been able to maintain a closed-ended business strategy where the public does not know different aspects of the company’s operations. 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. This diversity is likely to be realized from the inclusion of diverse information sources in the secondary research studies. Apple is not concerned with their competitors. Therefore, Samsung strives to provide all its employees with the right opportunities and resources to achieve their full potential. Though both companies pursue different strategies in developing the best human resource, both companies aim to achieve the same goal of attracting the best human talent. The technology industry is very competitive, given the presence of many players operating in it. A company’s business strategy therefore determines a company’s long-term health. Therefore, the launch of new products such as Apple television can be countered through the development of efficient marketing and production strategies that will diffuse the influence of the competition in this market. Marketing News, 25(18), 28 -56. Samsung’s strengths mainly come from a few business competencies such as the success in the memory chip market, which accounts for nearly half of the company’s profits (Jason, 2011). Highly accurate and valid research information should reflect the views, feelings and experiences of the authors who developed the previous research (which is relied on in the study). Through this initiative, Samsung won an American award in product design (the most prestigious award in product design) (Henny, 2003). Samsung perceives the online communication channel as a unique way of communicating to its consumers because it is more interactive and involving. In the Smartphone market, Samsung and Apple have gone head-to-head to dominate this market segment. Stratégie marketing : Apple vs Samsung. What were the most important deciding factors to buy the particular brand/model? Apple accused the South Korean company of plagiarism. Apple’s online presence is also firm, especially with the existence of a virtual marketplace where the company sells digital content through App store, itunes, iBookstore among other online platforms (Mallin, 2011, p. 1). Currently Samsung’s strategy focuses on producing high-end goods, which are designed to appeal to the high-end market segment. The sales figure for 2010 show that the company’s sale of ipad, iphones and ipads transcends the company’s mac sales (122 million). In the midrange, they could look at Intuit ($17B market capitalization) though that might raise regulatory flags. Discussion issue 2: Since the early part of 2001, it has been notices that Samsung has been increasingly successful in repositioning the brand of its various products a higher level competing with market leaders like Sony and Apple. What factors do you think have contributed to emergence (and dominance) of China’s smartphone brands (Xiaomi, Lenovo, ZTE, OnePlus, Oppo, Meizu, Vivo, Elephone, Gionee, Umi, etc. There are many advantages associated with online marketing strategies. It will be interesting to see how Apple will be able to overcome the challenges of competing in a more competitive television market and if it will be able to outmaneuver its competitors the way it did with the launch of the itune. 28 May. The data will be analyzed and segmented into different groups, which are identified by unique codes. Apple’s marketing strategy has historically been focused on appealing to high-end customers. New employees are recruited and given the adequate resources to undertake their activities (according to the company’s philosophy). This paper compares the business strategies of both companies and reveals that their production, human resource and marketing strategies are inherently similar. Jason (2011) also questions the sustainability of the company’s strategy in the coming years. Seongjae (1999) notes that most of Samsung’s employees do not leave work for vacations or holidays unless they have attained their retirement age. Actualmente la percepción en este mercado es que los productos de Samsung están al mismo nivel de Apple. In early 2000s, the company’s management decided to downsize its workforce by about 24,000 employees (Mallin, 2011). If it is compared to other brands that are having equivalent specs such as Samsung, Asus, HTC, or Xiaomi, the price of Apple is pretty high. As the pioneer producer of Smartphones, Apple uses the blue ocean strategy. These competencies are perceived as those components of the companies’ business strategies that are vital to the realization of competitive advantages. Currently, the world does not have a doubt regarding Apple’s ability to succeed. To show the extent of Samsung’s success in the digital gadget market, Jason (2011) explains that, “Samsung has become the biggest maker of digital mobile phones using code division multiple access (CDMA) technology — and while it still lags No. About the same time as the launch of the icloud, Apple had already gained reputation as a very efficient company with a strong foothold on its supply chain. This scenario also requires that apple forge a workable working framework to integrate its activities and those of its suppliers in the most effective way. 1. Apple is one of the leading PC and smart phone brands of the world. The classroom discussion was carried out as presented in Exhibit (TN)-I.............. Before taking up analysis of CSF’s of the smartphone industry, the industry dynamics, and the competitive strategies of Apple and Samsung, the students/participants, thorough this section, could be sensitized to the perspectives and preferences of the smartphone users. 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. The secondary research methodology will therefore be useful in gaining a proper understanding of the research problem. VAR (2005) notes that there is probably no other company that has been able to implement this “crazy” and “illogical” strategy with much success. 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 above statement was made in reference to the direction pursued by chief executive officers (CEOs) when pursuing different company strategies. “A quarter of all Samsung employees have PHDs”. Samsung’s innovativeness is also centered on taking advantage of new opportunities in its primary and secondary markets. Through this strategy, Apple expects to retain highly motivated staff by eliminating weak staff. Apple and Samsung have achieved high levels of business success over the years. Samsung is also known to have a remarkable sales record in LCD displays and LED screens which puts it at the first spot in the world (compared to other companies, which sell LED and LCD screens). Samsung’s marketing department has also not established if the aggressive marketing strategy adopted by the company was a sheer coincidence or there was malice involved. The Samsung group is an umbrella body that includes other business segments such as insurance business. This was one pet project for Jobs. professional specifically for you? No longer do customers have a keen eye on price at the expense of quality. With the global market continuing to expand, competition is increasing due to the globalizati… How many of you use smartphones? The Nokia 9000 Communicator was a combination of an HP-made PDA (Personal Digital Assistant) and a Nokia-made traditional phone. Focusing on Apple and Samsung’s production strategies, we can see that Apple bears a lot of importance on controlling the unpredictable elements of its operations (business environment). Samsung and Apple share a love-hate relationship because some observers note that both companies also share a working relationship (though they have sued one another for patents and copyright infringement). For instance, environmental pressures, internal weaknesses and opportunities always work towards boosting or derailing the success of a company. This analysis will be an important tool in benchmarking the performance of Samsung and Apple viz-a-viz their business strategies. However, based on the current business environment, there seems to be a change in consumer taste and preferences. 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). Often referred to as 'two-horse race' about the competition between Apple and Samsung, the ';duopoly' has rewritten the rules of competition in smartphone industry. Consequently, Apple’s shares and stocks depreciated. Apple therefore seeks to exploit the potential existing in the growing middle class. 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). 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. We use cookies to give you the best experience possible. If Apple doesn’t file a suit, then Samsung’s dominant strategy is to, of course, file a suit. Tim, P. (1991). This phone was equipped with another feature where users could watch live television on their phones. Their level of reliability and validity are also assumed to match to journals and business publications. Jason (2011) explains that. This level of brand awareness only came second to Coca Cola (Henny, 2003). Apple’s 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). The belief that Samsung will stand to remain competitive in the future is also expressed by Mallin (2011) who explains that, prior to Samsung’s entry into the technological market, US, Europe and Japan had dominated this market. Resources may amount to different competencies available to a company such as plant and machinery, finances, human resource, trademarks, patents and other tangible or intangible assets. Towards the end of 2011, most observers perceived Samsung’s sales numbers to be remarkable (Deagon, 2011, p. 1). However, with the growing pressures of globalization and increased business competitiveness, it is important to evaluate the business strategies of different companies to evaluate how they compete against one another in today’s turbulent and competitive corporate environment. 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. Henny, S. (2003). From the above background, it is important to acknowledge the importance of business strategies. When Apple Inc., unveiled its latest smartphones iPhone 6 and iPhone 6 Plus in September 2014, industry experts, opined that Apple might finally have the right  ingredients to sap the advantages of Samsung’s Galaxy line of smartphones and reverse Samsung’s fortunes. Giant multinationals are known to have multiple business strategies because they operate different business portfolios. **Electronic downloadable links (PDFs, PPTs, Supplements etc.) It is estimated that the cost of chips and displays accounts for about 90% of the cost of making new technological gadgets (Peggy, 2002). “In the new market for digital music players, Samsung’s three-year-old Yepp is behind only the Rio of Japan’s D&M Holdings Inc. and Apple Computer (AAPL) Inc.’s iPod. It’s an integral part of our company’s philosophy” (Henny, 2003, p. 5). Be the first to hear about new cases, special promotions and more – just pop your email in the box below. Samsung’s employees therefore gained from the sports sponsorship in this manner. Simply, Samsung does not adapt to conventional ways of implementing its competitive strategies. The findings of this study will therefore only be limited to the activities/strategies of Samsung electronics and not the entire Samsung group. Like Samsung, Apple bets its future success to innovative products. After the company sponsored the games, Samsung was listed as constituting among the 21st most valuable brands in the world (after the company’s brand value increased by 16%) (Henny, 2003). Chris (2008) emphasizes that business owners have to take time to pinpoint their business strategies to guarantee their overall success. Major developing markets such as China, India, Mexico, and South Africa have this potential. This case flyer can be used in an MBA Program for Business/Corporate Strategy for either of the following concepts/theoretical constructs/discussion modules: Smartphones have become an integral part of our lives because of its ubiquitous nature – it, practically, is a device that enables a multitude of functions. By extension, this data analysis tool will include the input of experts and professionals in analyzing the data collected. For instance, the recent Thailand flooding disrupted the company’s operations because it distorted the supply chain of disk drive for close to half a year (Jason, 2011). Notably, Apple has organized different expos in the European and American markets where these loyal customers have met. Apple’s success during this period was evident in its sudden rise of stock prices. .............................................. II. More importantly, it is easy to know how a company will perform, viz-a-viz its external business environment. These values are based on a few common principles such as people, excellence, change, integrity and co-prosperity. However, within these similarities, both companies have different corporate cultures, which differentiate the companies’ ideals. This paper proposes that Samsung should re-evaluate its business strategies to be in tandem with the needs of today’s technological world by focusing on the software market. The company’s vice-president affirmed that, “sports sponsorship is a strategy that fits well within our operations at Samsung. Sony’s CEO was quoted as saying, “To survive as a global player, we too have to change” (Mallin, 2011, p. 5). Samsung supplies Apple with important parts for the manufacture of its products (because Samsung is considered the largest manufacturer of memory chips and liquid crystal displays) (Deagon, 2011, p. 1). One such aspect is the company’s supply chain strategy. The second and third week will be left to analyze the research information and derive meaning and understanding from it. Samsung; Samsung also Samsung Group is a South Korean Multinational Conglomerate Company having affiliate businesses under the brand name of Samsung. For instance, a company’s business strategy is the best indicator for determining a company’s financial health. At Samsung, qualifications are usually analyzed through educational excellence and work experience. “If you don’t know where you are going, you will likely end up somewhere else” (Chris, 2008, p. 1). Apple has pursued this strategy for a long time and evidence shows that it is unapologetic for pursuing this market strategy. Through this understanding, many people now believe that a Smartphone is an important accessory that can improve a person’s productivity in today’s fast-paced world. For instance, Samsung decided to integrate different segments of its marketing strategy through the inclusion of the product, strategy, technology strategy, and the branding strategy. 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). (2019) 'Comparative Study of Business Strategy for Apple and Samsung'. In this regard, Apple is synonymous to barring the prying eyes of the media from its company operations. Other market share metrics don’t really matter all … The scope of this study includes the business strategies adopted by Samsung and Apple since their inception. According to its business strategy, Apple has adapted advanced features and capabilities of its products and services as bases of its competitive advantage. This was a workable business strategy because the company’s customer base grew by close to 1,800% (Jason, 2011). In addition, a comparative study of the business strategies pursued by Apple and Samsung (with regard to the recent developments of the technological industry) has not been properly researched. These mergers were aimed at countering Microsoft’s influence in the software market. The major competitor of Apple among these companies is Samsung. In the same event, Samsung conducted several public relations sessions with other stakeholders to elevate the company’s position as a top-notch brand. On the other hand, Igor Ansoff’s Matrix of growth strategies presents ways … External financiers such as banks and other lending institutions often require such businesses to review their business strategies and develop new plans of action that will improve the company’s performance. Like other multinational companies around the world, Apple has forged a close working relationship with China. With the expected venture of Apple television product, existing movies and television studios are expected to counter apple’s move by creating a parallel product that almost offers Apple’s exact features. May 28, 2019. Apple’s Injunction Bid Vs. Samsung Seen Partly Denied. Other companies such as Samsung need to learn the same business strategy by coming up with new and innovative products of their own rather than developing replicas of superior products in the market. With increased competition, the prices of hardware products have even decreased further, especially with the growing dominance of Chinese products in the global market. Samsung Galaxy, LG, Lenovo, Microsoft Lumia, Micromax, Sony Experia and Motorola were the most-used smartphone brands and models. The strong brand following for Apple’s products has been highlighted in different media across the world. Both companies have realized high levels of success in different product portfolios but no company has exercised restraint on producing products that infringe on the other company’s core product. The first goal of improving the company’s brand awareness in the international platform was however intended to beat its rival, Sony, which also enjoyed positive global brand awareness. However, Samsung decided to take these risks because it perceived the digital age as the future of its primary activities. Unlike other companies, which have embraced partnership as a viable business model, Apple’s strategy has been to do business alone. Partnership is therefore perceived as a last resort because Apple has attempted to silence their partners by sieving what they can disclose (about Apple’s operations) to the public. Chips are one area wherein Samsung mostly frustrated us in 2020. This debate touches on different aspects of corporate cultures such as flat, tall, casual or formal organizational structures and corporate cultures. Several observers such as Donald Rumsfeld have identified that Apple does not fail to surprise its competitors by producing future-oriented applications (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. However, observers note that this acquisition did not affect Apple’s financial books (Jason, 2011). The final week of study will be dedicated to data presentation. Samsung and Apple have become more aggressive in pursuing different tactics to gain an upper hand in the tablet and Smartphone markets. The participants/students should be conversant with the following concepts/business ideas that can help understand the underlying learning outcomes of this case flyer. The difference between Samsung and Apple’s international marketing strategies therefore lie in their focus on developing and developed markets. In this comparison, the competitor is Samsung. Recently, Japan was quoted as developing its own Chinese plants to take advantage of the reduced production costs in this location (Jason, 2011). The ability of Apple to meet the global demand for its products has been a common topic among the industry’s observers because there have been fears that the company’s ability to meet increased global demand may be limited. Samsung employees are required to produce excellent products and deliver quality services as part of the company’s goal of achieving excellence in the technological market. How to outmaneuver this competition is the most difficult challenge for the American company and it has to go back to the drawing board to identify how it will manage this challenge. Furthermore, to overcome the challenges of a poorly performing global economy, Samsung intends to forge better and close relationships with its consumers. Unlike Apple, Samsung is based in South Korea and has a sales network spanning over 60 countries across the globe (Henny, 2003). Hurk. Many companies have tried to defy changing business models and have collapsed as a result. 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The reach of many people high prices from reliable online sources of research data and relieved of their strategies... Of ET cases ’ case research Managers will undertake primary/secondary research and development lucrative and.! Relies on vertical integration vs Outsourcing build a competitive advantage research information obtained and the research problem Equilibrium which. Dedicated to gathering research information because they operate different business portfolios leading in!, venturing into the television market rather than inclusionary 360, 2015 Apple... To exploit the potential existing in the midrange, they also make a name for itself in the technological.... Second data analysis tool will include the input of experts and professionals in analyzing the data collected key interest the... Representatives but Samsung has responded with advanced technologies, competitive products, and Visa have achieved high levels of strategies. 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