Apple also accused him of having copied a lot of features and navigation methods. These commonalities are evident in their marketing, human resource strategy and production strategies. District, To investigate the differences and similarities between Apple and Samsungs business strategies, To establish the difference or similarities of different business portfolios between Samsung and Apple, To ascertain the key areas of competence between Samsung and Apple, To establish how Apple and Samsung use their corporate resources to implement their business strategies, To investigate Samsung and Apples value-chain processes, To evaluate Apple and Samsungs business performance viz-a-viz their business strategies, To evaluate how Apple and Samsungs changes in business resources affect their performance, To investigate how Apple and Samsungs business resources compare with the expected first class resources for technological companies in the digital world, Apple and Samsungs business resources are inherently similar, Samsung has a more diversified business portfolio than Apple, Samsungs key area of competence is in the television market while Apples key area of competence is the mobile phone and tablet markets, Samsung and Apple use their corporate resources to develop better and high quality products for their consumers, Samsung and Apples value chain processes are very different, Samsung and Apple have achieved high levels of success because of their effective business plans, The changes of business resources between Samsung and Apple have not affected their performance, Samsung and Apples business resources are at par with the business resources expected of first-class technological companies. February 18, 2023. https://ivypanda.com/essays/comparative-study-of-business-strategy-for-apple-and-samsung/. 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. The companys quest is the development of useful products that can benefit consumers (through innovative technology). The Wisdom of Generations: Using the Lessons of History to Create a Values-based Future. Free access to premium services like Tuneln, Mubi and more. 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. Im willing to go thermonuclear war on this., Smartphones, TVs and other key IT products are entering a slow growth phase and our rivals are changing value chains by introducing new technology and business models.. 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. As evidenced in this paper, information from case studies (such as court cases) are highly relied on to develop a framework for the understanding of the research problem. Im going to destroy Android, because its a stolen product. Therefore, adding or omitting a small attribute to a companys production strategy may determine the future sales of the business or its sustainability in the long-term. FOR THE Djurup, R. (2013). Businesses therefore have to devise new ways of creating value to their consumers so that they stay relevant in the wake of such unpredictable operating environments. Acquiring new technological companies will be a strategic move to grow the companys revenues. This was one pet project for Jobs. Through this conviction, Samsungs management established that the sports-based strategy fit well with the companys values and philosophy. (2023, February 23). 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. Retrieved from https://studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/, StudyCorgi. The companys entry to the developing market is however not a new phenomenon. Apples resources are however diverted to improve the companys software competence. Indeed, Apple will make good money from the launch of the Apple television but the big question will be if the companys product will be sustainable in the end. Instant access to millions of ebooks, audiobooks, magazines, podcasts and more. Clipping is a handy way to collect important slides you want to go back to later. Apple v s Samsung leader of technology and marketing. In fact, collectively, the two companies are said to stake claim to about 95% of the profits in the Smartphone market (Deagon, 2011, p. 1). For instance, the companys senior vice-president in the retail department had no authority to direct other activities within the companys retail chain, other than those described within his roles. Apple discourages unethical behavior through strict penalties for such practices. Behemoth organizations Samsung and Apple are the pioneers in this segment and one of the most famous rivals in the world. 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). Apples venture into the television market and Samsungs smooth transition into the digital age highlight the similarity in product innovations. Samsung s marketing blitz vs Apple Effective but big. (2019, March 27). The strategies however did not yield much fruit. Moreover, the new product designs improved Samsungs status as a young and fashionable brand with strong functions. Though this feature has been prominent in other phones (in the recent past), Samsung was a pioneer in accommodating this feature on their gadgets. b) Trade partners one of their partners is Ingram micro, a company that is distributing Apple products in more than one country. However, Cooks business strategies are in sharp contrast to Steve Jobs business ideals, which mainly centered on instincts. This trend shows that Samsungs prominence in the Smartphone market has been on the rise. In addition, the company could adopt an advertising strategy through its itune software where it could market different aspects of its software and hardware manufacturing features. Samsung on the other hand hopes to attract and retain the best human resource by providing the best working terms possible. Samsungs willingness to trade at a discount however shows the inclination of the companys corporate governance strategy to consumer-friendly policies. Therefore, Samsung has more experience in the home appliance market, which it can use to counter competitive pressures in the same market segment. StudyCorgi. This development was a departure from the norm because traditionally, more established brands such as Coca Cola and Visa had a strong impact on peoples lives. "Comparative Analysis of Apple and Samsung." The companys risk of sticking to the hardware market is expected to play a huge role in determining the fate of the companys future DVD format. Consequently, Apples shares and stocks depreciated. Samsung is known for its service and customers knew that the company gives fast service for any of its products. This is the basis for Samsungs copyright infringement lawsuits against Apple. Evaluating the performance of Samsung and Apple in different quarters of 2011, we see that Apple sold 18.65 million Smart phones in the first quarter of 2011 (alone) while Samsung sold slightly more than 12 million units (Deagon, 2011, p. 1). To show the extent of Samsungs 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. Samsungs marketing strategy has also been distinguished from Apples marketing strategy based on its resort to pursue a web-based marketing strategy. Furthermore, Samsungs move is unpopular because hardware tends to have a shorter lifecycle and they are equally easily commoditized. On the other hand, Samsung has a large pool of engineers who design products internally. Business strategies are known to be the path taken by different companies as they try to outdo their competition. Apple is superior to its competitors (Samsung, Huawei, LG), most of the Apple products have premium pricing. One such reason is the market size for the television market and the potential for premium pricing as a result (VAR, 2005). Till now, Apple was mainly focusing on the development of personal computer and multimedia software such as Pages, iMove, etc. From the above sentiments, many researchers peg a lot of hope on Samsung but Apple strategies are perceived to be far more effective. In this event, the company launched a series of futuristic products such as mobile phone watches, the PDA-phone, the digital camera cum mobile phone, the MP3 mobile phone and the its latest model of 3G mobile phone (Henny, 2003, p. 6). These dealers can open exclusive Samsung showrooms. Like Samsung, Apple bets its future success to innovative products. Product strategy is central to the marketing strategy for iPhone. The importance of this study is however limited to the fact that it is often difficult to replicate or pass-on a certain business strategy to another. Apple still outspends Samsung by a high margin in marketing, but the quality and creativity in Samsung's marketing campaigns for their new products have been exceptional. The Apple brand and logo are currently more recognized around the Western world, and in London and New York, you cannot walk down the street without seeing a sea of white headphones and people playing with their iPhones. Retrieved from Wikipedia: https://en.wikipedia.org/wiki/Apple_Inc. In the same event, visitors were allowed to experiment these new products and the company received a lot of feedback regarding these products as well. Definition of Marketing Mix. Recently, Google was prompted to withdraw a voice software called Siri from its android system after it was claimed that the software resembled the Siri feature (which was available on iphone 4s) (Jason, 2011, p. 1). Marketing Communication Mix Apple versus Samsung. In the recession of 2008/2009, Apple continued to post an impressive sales growth. Top 10 Digital Marketing Jobs in Delhi That Pay the Highest Salaries, The Essential Components of a Digital Marketing Syllabus | 2023, 10 Mistakes to Avoid When Choosing a Digital Marketing Course in Delhi, How to Choose the Right Digital Marketing Course for Your Career Goals. % GovNet eJournal, 1(1). Apple is known for innovation and dont have to prove this by using by social media platforms. stream After weighing the findings of this paper, it is important to point out that Apple and Samsung have many commonalities among their business strategies. The spot also acted as a recreational facility for all people, but more importantly, the visitors were given a chance to try out Samsungs products at the venue. In addition, through the companys culture (introduced by Steve Jobs), Apple seems to be very keen on small aspects about its products. Web. The structure's product-based divisions enable strategic management specific to product development. The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. Samsungs strategy is however focused on the hardware market. Steve Jobs has seen Apple transcend to a very profitable company. 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). These values are based on a few common principles such as people, excellence, change, integrity and co-prosperity. 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). Unlike other companies, Apple does not see partnership as an opportunity to grow but as a barrier to growth. The companys most notable products include Macintosh computers, ipods, ipads and the Apple TV. The interpretive technique will be adopted within the framework of observer impression because the secondary data collected will be analyzed from an analytical and professional view to come up with a structured impression of the studys findings. Unlike most of its other ventures, such as ipad and iphones, the Apple television is expected to face stiff competition from incumbents in the television market. The company has been unapologetic for pursuing this strategy and despite the fears of the global recession; the company has consistently maintained a high-end marketing approach. (2019, March 10). Apple Wins One Patent Battle, But Legal War Just Heating Up Legal Landscape Still Muddy Android OS/Samsung vs. Apple is top smartphone fight in courts, and market. Just as salty snacks drive you to drink more soda, Apple TV will leverage device interoperability via iCloud (Jason, 2011, p. 4). Other companies, which have achieved tremendous success in the past, have not done so by sticking to the hardware market. In comparison with the only Apple and Samsung, as this research, customer prefer Apple's tablet more than Samsung's tablet. (2019, March 27). 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. The revamped competitive strategy and marketing programs that Samsung designed and implemented have been a huge success. This observation is true because of the leading status of the US market on the international front. Cultural competency is a leadership initiative at Samsung, and its role is to understand customers requirement from a broader perspective (Dippel Jr, 2012). 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 statement shows a keen conviction among Samsungs management that its markets have unique needs and therefore, the products to be sold to these markets have to resonate with the unique needs and preferences of the market. Through the establishment of the Olympics rendezvous, Samsungs customers also benefited from the companys sponsorship of the Olympic Games. The secondary research methodology will therefore be useful in gaining a proper understanding of the research problem. The online marketing strategy has therefore been perceived to be very efficient and Samsung has adopted this strategy as part of its core marketing strategies. This study will assume that there are no time variations between the business strategies adopted by the two companies. However, Samsung joined the smartphone market by using the red ocean strategy; gaining a competitive advantage by venturing into an existing market . 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. Samsungs management also believes that it holds most of the patents covering wireless communication and Apple should respect these patents. 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). The second data analysis tool to be used will be the coding technique. 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. Since Apple introduced the iPhone, the company has been very successful on the market and since then, millions of smartphones are sold by Apple every year. Apple and Samsung. (n.d.). This attribute exposes the uniqueness of Apples operations compared to other companies in the same business. It is observed that the companys success in the American market dictates its success in the international market as well. The focus of the marketing mix is on the 4P variables, namely, product, place, promotion, and price. The strong brand loyalty among Apples consumers was however built naturally due to impressive product quality. Your privacy is extremely important to us. smartphone industry is dominated by two giant companies: Apple and, Apple is a premium brand associated with a premium income level. This is one example of how Apple is able to be a pacesetter in the technological market. For instance, the company has a locked-down software platform, which is only known to close associates of the company (Mallin, 2011, p. 5). With their strategy, they were able to lower the cost of their smartphones making them more affordable than Apple. However, this decision was made with the acknowledgement that the company could lose its fortunes in a blink. 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. Retrieved from Marketing91: https://www.marketing91.com/marketing-mix-of-samsung/, Marketing91. In the episode in this competition is another dig at Apple; Samsungs Grad Pool Party ad was released in May 2013 to promote their latest smartphone, Galaxy S4. 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. 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). In fact, the company uses its chips to develop its products. Self-Taught: Which is the Better Option? Keep marketing and products simple 2. Recently, the companys CEO stated that if the company exits the manufacturing industry, it is going to lose (Mallin, 2011, p. 5). Its product facilitate in gaining market share, brand awareness and brand loyalty. Introducing changes that improve organizational performance and competitiveness at Apple and Samsung requires the following. This fear has been expressed despite the fact that the company has made immense profits in 2011, after it posted profit figures of about $4 billion in the last quarter of 2011 alone (Jason, 2011). The findings of this paper will not only be useful in understanding Samsung and Apples business strategies because from business strategies, smaller businesses can also learn new strategies and adopt new recommendations regarding how such businesses have been able to succeed in todays competitive world. 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). For instance, it would be easy to establish the diversity of the researches obtained from the different types of information sources highlighted in the secondary research information. Apple takes pride in the entrepreneurship of its founders. The internal design team has been credited with innovations of modern mobile technologies. The company adopted the sports-centered market strategy after its management realized that it did not put enough effort to add value to its products. According to the companys management, every day, every employee is supposed to abide by the above philosophy. This campaign launched in 2014 became more of a story of people using ipad instead of the product itself. The iPhone advertisement of Apple is similar, always with white background, exotically alluring to the users. Conclusion Both strategies are effective in their own right. This means that there is still more room for other companies to sell their tablets. This trend has quickly caught up with other technological companies around the world. Xiaomi is the bronze medalist, picking up 190 million sales as a whole in 2021 despite not even being sold in the U.S. It sells its products worldwide through its retail stores, online stores, and direct sales force and third-party cellular network carriers, wholesalers, retailers, and value-added resellers to the consumer, small and mid-sized businesses, education, enterprise, government and creative markets (Apple Inc., 2019). Learn how to market a business online just like experts & agencies do it. It promotes through TVCs. This move has been informed by the unique characteristics of the web-based marketing strategy when compared to other conventional marketing strategies. Among the selected individuals were Samsung employees. StudyCorgi. Apple & Samsung Marketing Strategy Ravildjan 51.9k views Pramotional strategy of samsung Vipul Pal 47.9k views Power bank presentation Felix Vong 22.4k views Marketing mix Jugnoo Raja 17.2k views The 4 P'S of Marketing- Advertisement-Samsung-Company- Business-Emre Sarcan Emre Sarcan Web. Therefore, Samsung undertakes its operations in the most transparent manner and through the right moral compass; the company hopes to entrench its operations on the right ethical foundation (Henny, 2003). Therefore, most of Samsungs marketing strategies have been designed to appeal to the high-end 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. Both Apple and Samsung companies are in the electronics industry with specialty in mobile and computer technologies. Peggy, A. Different comparative studies have been developed for different purposes. Samsung and Apples rivalry has transcended the above Californian case because the two manufacturers have filed suits (and counter lawsuits) in about a dozen countries around the globe (Deagon, 2011, p. 1). It works on the channel marketing concept wherein there are three segments: sales and service dealers, modern retail and distributors. The efficiency of its business strategy has given Apple an edge in reduced supply chain costs of up to a half of the normal costs incurred by other hardware companies (Mallin, 2011). International Studies of Management & Organization, 28(4), 57-72. There is some kind of peculiarity between the Marketing Strategies of both the brands. Retrieved from WhatIs: https://whatis.techtarget.com/definition/Macintosh, Samsung. Seocho 2022 Jun 29 [cited 2023 Apr 14]. Samsung is a South Korean multinational conglomerate headquartered in Samsung Town, Seoul. Samsung is of the opinion that it can overtake Apple in the sales of tablets because it believes that its competencies in hardware manufacturing, functions and operating systems surpass those of Apple. In the midrange, they could look at Intuit ($17B market capitalization) though that might raise regulatory flags. All rights reserved, Apple's Organizational Culture And Structure, Corporate Social Responsibility In Apple, Volkswagen And British Airways, Apple Company: Planning, Organizing, Leading And Controlling, Apple versus Samsung: Design Patent Litigation, Advantages And Disadvantages Of Apple Supply Chain, Apple: Supply Chain Management Issues And Approaches To Its Improvement. The Brand Finance Global 500 2013 puts Apple and Samsung right at the very top of the best brands in the world, ahead of Coca-Cola and Google. Similarly, a small business owner may fail to see an existing business opportunity for growth. 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