References Akwetey, L. M. (2015). Apple has continued to firmly hold on to its branding and marketing designs over the years. The company spends a fortune on research and development (R&D) and capital expenditures (CapEx). Todds team chose 72andSunny specifically for its edginess. Apple has launched a myriad of products that have done exceptionally well in the market, key among them being the iTunes Store. Again, the use case for these is still weak and demand is minimal at best. All rights reserved The court case was only one aspect of the Samsung war; final victory, they knew, would go to the company that told the best story to the public. Truth be told, when you have to compare the volume of marketing efforts that the brands handle, Samsung has a slight edge over Apple. . Not content to just throw out an imitator product, Apple worked diligently with record labels and created a small, sleek-looking replacement. The first salvo was fired in 2011 when Apple, already entangled with Motorola at the time, went after Samsung for its design of tablets and smartphones. Well give you a few examples. Apple has a more clearly defined brand messaging. Apple vs Samsung as Blue & Red Ocean Strategy Examples. I would love to see Apple become more aggressive on their AirPods Pro pricing and Samsung's lower pricing on their earbuds could put pressure on Apple to perhaps bring the price of their earbuds down a bit this fall. Through the strategy, Apple can avoid flooded markets by innovating unique products (Buisson & Silberzahn 2010). Apple has adapted to the situation. Bushel baskets were placed in the elevator banks and break rooms, so that wherever Samsung employees took a coffee break, they were reminded of their missionto take a bite out of Apple. First, lets talk about celebrity endorsements. Find out more. What if its Android phones were actually the smart persons alternative to the iPhone, and Steve Jobss worshippers were the mindless followers? Photographer: Nina Westervelt/Bloomberg, Vivaldi 6 Brings Workspaces To The Browser, Elon Musk Promises (Again) Encrypted DMs Are Coming To Twitter, Forget The New MacBook Pro, Apple Has Something Much Better, Canadas Public Broadcaster Joins NPR In Quitting Twitter, Vivo V27 Pro Brings The Fight To OnePlus 11R With A Better Design, Artist Reveals His Award-Winning Photo Was Created Using AI, Apple Reveals New Game-Changing FaceTime Features, Elon Musk Says U.S. Govt Had Full Access To Private Twitter DMs. Just by using the logo colors or symbols and other cues, your customers should be able to recall both brands. If you are the original creator of this paper and no longer wish to have it published on StudyCorgi, request the removal. The greenery, pollution-free clear blue skies, and the solar panels are enough visual cues to tell you that this is an ad that talks about sustainability. Guys, Im so amped I can stay here for three weeks, says an apparent Apple idolater. Steve Jobs, Apple's late CEO, was furious and went on the offensive; Samsung, in turn, dug in its heels. So, even if you have many product lines, customers will instantly recognize your brand on a crowded supermarket shelf. Often, a customer uses a blend of both measurable and subjective factors to decide on a . According to Yektan, Nayebzadeh, and Rabbani (2014), the company is usually willing to invest colossal amounts of money in marketing a new product. One other clear thing is that Samsung has also become much better at marketing its products. Kimp Tip: When you have to create experiences or conduct promotional events as these big brands do, then be sure that you go full swing in establishing your brand designs. Many people, including myself, have to take their BP daily for various health and heart issues. So, how did the world of smartphones become a duel of Samsung Vs Apple? (2023, February 21). Apple drafted a proposal to license some of its patents to Samsung for $30 per smartphone and $40 per tablet, with a 20 percent discount for cross-licensing Samsung's portfolio back to. Apple avoids focusing on a single market segment. According to Barnes (2008), a proper operational strategy is essential for operating in the global market. . pic.twitter.com/9rDrqMwqlm. Samsung smartphones are all over the place. The company realised that its Smartphones required frequent upgrading, which could only be achieved by investing in research and development. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Enter ambush marketing. As a result, Kapferer (2012) asserts that Apples market share increased by $143 million. The Manner in which Apple Makes its Pricing Decisions. The problem was that Samsung, up to this point, was not attempting to tell a story. 56, no. With that, Samsung had a launchpad from which to eventually get into smartphones, when they came out. 49-67. In this type of strategy, a company gains competitive advantage by venturing into an existing market and building on the weaknesses of its competitors. The intensive growth strategy has been strongly attributed to Apples success. On the other hand, Samsung has a very active social media presence. During the third quarter of 2011, Samsung surged past Apple to the number one spot among phone manufacturers, based on shipments. Alphabet Inc shares fell as much as 4% on Monday following a report South Korea's Samsung Electronics was considering replacing Google with Microsoft-owned Bing as the default search engine on its devices. What is Strategy and comparing Apple vs Samsung Strategy#. Now it was a two-horse race. While I do miss the in-person events, I am much more inclined to want these events just streamed in real-time in the future. Conclusion Both strategies are effective in their own right. "Apple vs Samsung as Blue & Red Ocean Strategy Examples." Or the aggressive, political election-style marketing campaigns that are reminiscent of the Ford versus Chevy attack ads. As for Apple, I have not seen or heard of any serious interest in developing a folding iPhone anytime soon. Fitness & Health Brands use Kimp to launch, expand and scale their marketing. Kang, H, Chang, S & Song, J 2013, Competition for platform leadership: The Smartphone war between Samsung Electronics and Apple, Korea Business Review, vol. Photographer: Nina Westervelt/Bloomberg. And they continue to be trendsetters in smartphone marketing. StudyCorgi. Notice the visible lack of consistency in design. Need help aligning your branding and marketing designs with your brands personality? "Apple vs Samsung as Blue & Red Ocean Strategy Examples." I write about tech industrys impact on the PC and CE markets. The chunky bold font for the message in focus immediately draws your attention. As he told biographer Walter Isaacson, he wanted to launch thermonuclear war on Android, the operating system used in Samsung phones. If you compare Samsung Vs Apple ads, you might see that most of Apples ads are mellow, and to the point. For example, Apple had a commanding 58.46% share of the U.S. market as of May 2020, while Samsung settled for 25.11%. The team turned to a consultant named Joe Crump, senior vice president for strategy and planning at Razorfish, one of the worlds largest interactive agencies, to help them convey the depth of the brand problem in America to Samsungs senior executives. Slack, N & Lewis, M 2008, Operations strategy, FT Prentice Hall, Upper Saddle River, NJ. Samsung has achieved vertical integration through manufacturing components such as NAND, Mobile DRAM, and Application Processor among others (Vergara 2012). It is also a much more profitable company. His pitch? Apples packaging designs are great examples of this. Apple, particularly, successfully sued Samsung for patent infringement (Cusumano 2013). 48, no. Samsung Galaxy Z Fold3 5G foldable smartphone with S Pen stylus at the Samsung Unpacked product [+] launch event. Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Thomas J. Brock is a CFA and CPA with more than 20 years of experience in various areas including investing, insurance portfolio management, finance and accounting, personal investment and financial planning advice, and development of educational materials about life insurance and annuities. "Apple vs Samsung as Blue & Red Ocean Strategy Examples." A resident of South Korea for five years and a Fulbright scholar, he studied at the School of Oriental and African Studies in London and the George Washington University. Entrepreneurs love using Kimp to design, launch and scale their unique brands. Strategy made simple is a series of educational episodes about strategy and strategic management.1. And thats creativity at its best. And promote your brand in ways you did not predict. Want to create a strong visual identity for your brand? In August 2011, for instance, a court in Germany issued an EU-wide injunction on the Samsung Galaxy Tab 10.1 device for violation of an Apple interface patent. Lastly, Apple generates its competitive advantage through its manufacturing and machinery assets and distribution channels which are acquired through its partners (Lashinsky, 2013). This compensation may impact how and where listings appear. The Samsung [response] was just blistering, Brian recalled. As a key concept of the blue ocean strategy, technology has revamped the whole customer experience by making life simple, easy, and successful. For one thing, Samsungs prices are high. Get Kimp, When Samsung and Apple Collide Head-to-head Ambush Marketing at Its Best. Truly, Samsung declared a ten-year growth strategy based around five organizations This observation demonstrates the companys changing approach from being a follower to being a leading innovator. Barriers to entry are the costs or other obstacles that prevent new competitors from easily entering an industry or area of business. There was this growing base of Android users who could become a tribe, Brian Wallace said, crunching a new trend in the social-media chatter. The outcome of the lawsuitsshowing that this or that square, icon, or color wasnt copiedwasnt the concern of Todds team. . 14, no. One small misstep and your audience will go to your competitor. It currently releases new models without major changes. As Samsung pointed out in their overview of the new BMI feature, past solutions for measuring this metric need external tools. In the US, for instance, Samsung used $401 million in 2012 to promote its Android commodities (Nisen 2013). But how do you attack Apple without looking petty, without giving it free advertising, without acting like the smaller dog in the pack who barks the loudest and then gets laughed at? Samsung has been a global force longer and has its hands in more industries. In the above example, people who know nothing about the rivalry between the brands and about Steve Jobs remarks will not make any meaning out of the ad. Here are a couple of things the brand does to stay ahead of the curve. 1, pp. One stark difference between Apple and Samsung is that Apple has clearly defined values for its brand. The other founders are Ronald Wayne and Steve Wozniak. He called it my trump card.. In fact, Apples products are designed for everyone. Samsung executives felt Apple was trying to create a monopoly with generic patents like the iPads black rounded rectangle shape, a patent so silly that a court threw it out. Privacy policy It is imperative to have all processes synchronised to achieve full benefits. 27, no. In March 2014, someone leaked a Samsung strategy document from 2012 in which the Korean-based tech company blankly stated, "Beating Apple is #1 Priority (everything must be in the context of beating Apple)." UX and Strategic Management: A Case Study of Smartphone (Apple vs. Samsung) and Search . In one early version of a commercial, two characters waiting in line outside an Apple store had a conversation about the features and quality of their Apple and Samsung phones, followed by a cut to another scene of two characters talking about their phones. When Samsung joined the market, its main strategy involved maximising on the weaknesses of rival companies to gain an edge. . It demanded $2.5 billion in damages. This situation has proved successful since Samsung continues registering more profits relative to other global companies. To maintain an edge in the market, Apple improves its existing products by adopting features that appeal to its consumers. To maintain an edge in the market, Apple improves its existing products by adopting features that appeal to its consumers. Since then Apple has streamed all of its product launches as well as two developer conferences online. Kimp helps design and marketing agencies design more to keep up with clients. More importantly, Apple's competitive climate is also analyzed against Samsung, which is the company's primary rival. God damn! Todd exclaimed after looking at it. The solution? You are free to use it to write your own assignment, however you must reference it properly. In short, in terms of marketing, both these brands do equally well. At the same time, iPod served to market the existing Apples products. Vergara (2012) asserts that the company has also used product differentiation to maintain a competitive advantage in the Smartphone market. I tried the first model of the Galaxy Fold three years ago and wrote that this was more a work-in-progress device. Apple does a better job of switching Samsung customers at 19% vs. Samsung only converting 7% of its users from Apple. An intense growth strategy focuses on key areas such as market penetration, development, alternative channels, and devising new products for new customers (Slack, Brandn-Jones & Johnson 2016). . To redirect Samsungs marketing budget. This is a BETA experience. Other mobile phone manufacturers have to purchase these chips from elsewhere, raising their operational costs considerably above the fee charged by Samsung. On a conference call with 72andSunny, he laid out Samsungs goal, as handed down by Dale Sohn. 3-4, pp. We had to even take some of it out because it was just so harsh.. (2023, February 21). Norman, R.: Service Management: Strategy and Leadership in the Service Business. What would you give for the new, unreleased iPhone? He called the ads Hello Kitty., I am talking to you on a phone right now that Apple just copied, said Brian Wallace, Samsungs former vice president for strategic marketing. I have either been to, or watched all of Samsung's Unpacked events since they debuted, and marvel each time at the innovation they continue to bring to their devices. Instead, it targets a broader market. Apple started the smartphone revolution in 2007 but Samsung, using their version of Android, joined the smartphone race shortly after and has made serious inroads into this lucrative mid to. The blood pressure feature is a huge deal too. Cusumano, M 2013, The Apple-Samsung lawsuits, Communications of the ACM, vol. In the past days, Apple invested colossal sums of money in innovation aimed at creating new products. The two marketing executives brought aboard thirty-six marketers and treated the office as a black-box operation. As a complement to iTunes, Apple introduced the iTunes Music Store as an improvement to its internal processes. Gershon, R 2013, Digital media innovation and the Apple iPad: Three perspectives on the future of computer tablets and news delivery, Journal of Media Business Studies, vol. Apple vs. Samsung: A Case Study on the Biggest Tech Rivalry Free photo gallery . "Apple vs Samsung as Blue & Red Ocean Strategy Examples." It is not a magical formula, Nokia was almost as integrated before being steamrolled by Apple and Samsung, but Samsung controls some logistical certainty in a way that Apple does not. It talks about Apple going towards a greener approach. As observed earlier, Samsungs chief strategy involves capitalising on the weaknesses of its rivals. Samsung and Apple are the two worlds largest producers of Smartphones. In fact, the team completed their work in eighteen months. If we have to talk about firsts Apple takes the lead. There are similar stories with the smartphone and tablet markets, each considered pillars of Apple innovation but neither of which the company invented. 3, pp. Terms of services, Designs for day-to-day marketing & big campaigns, Video & motion graphics for engaging content & ads. Nisen (2013) observes that Samsung filed numerous patents in the US in 2012, coming only second to IBM. Given the rumors flying around an Apple iPhone 13 launch next month, it seems unlikely that Apple would surprise us with a foldable phone of their own. There are many competing brands of smart phones and Samsung has reported a decline of profits in 2014. Before turning its sights to Apple, Samsung competed with, and in many cases bested, Japanese technology companies in the 1980s and 1990s. I hope to be able to test one of these in real-time and develop a stronger business case for foldable smartphones, besides its ability to also become a small tablet. Kogan Page Publishers, London, UK. Kimp helps Professional Services maintain polished and professional branding. Now, that's a big gain for Apple and a massive drop for Samsung, but understand that on a global. But for now, lets quickly look at a few things that Apple does differently when compared to Samsung. Apples generic strategy is designed according to Porters Model, which falls in line with the companys intensive growth strategies (Ximnez & Sanz 2014). The main competitive strategy of Apple Inc is developing new and innovative products that blend technology and art. Samsung was right., We need more creativity! Dale Sohn, the CEO of Samsung Telecommunications America, the Texas mobile phone office, exclaimed in a meeting in 2010, according to a senior manager who was present. According to Chandrakala and Devaru (2013), through cost leadership, Samsung has managed to employ a low-cost competitive strategy aimed at reducing the cost of its products. The company aligns its business strategy to both marketing and production. 15, no. Apple had a 20.5% share of the market in comparison to 19% last year. The challenge with this approach is that customers are often impatient and may be attracted to competitors who are fast in integrating new technology (Kelton, Sadowski & Zupick 2014). We had to be somewhat insular to be able to pull some of this stuff off, said a team member. Web. Ive got a Note Edge. Get ready to take out your designer pitchforks, Macheads. Try KIMP now! Curious much? Only then will your ad make an impact. Kimp Tip: Consistent-looking packaging designs make it easier for customers to remember your brand. One thing you will notice in the Samsung Vs Apple comparison is that both these brands have very different approaches when it comes to marketing. Want to create such simple impactful ads for your brand? I am talking to you on a phone right now that Apple just copied, Brian Wallace, Samsungs former vice president for strategic marketing, told me years later. Book a call with the Kimp team now. Without that assurance, Apple may just sit this one out. Apple drafted a proposal to license some of its patents to Samsung for $30 per smartphone and $40 per tablet, with a 20 percent discount for cross-licensing Samsungs portfolio back to Apple. In 2007, Apple launched the iPhone model, which enabled the functioning of iTunes. This case is slightly contrasted from rival companies who are seen as cautious when investing in new technologies. Samsung adapts quickly to market changes, producing products even faster, an approach that has enabled the giant company to release a high supply of its products in the market while demand is still high. An NDA or non-disclosure agreement is a binding contract between two or more parties that prevents sensitive information from being shared with others. Actions Other Firms can utilize to Differentiate and Gain Competitive Edge. After the first Samsung foldable was introduced, I was part of a small task force for a Fortune 100 company that was considering using it for a large mobile field force. Might see that most of Apples ads are mellow, and Steve Wozniak, in terms of,! Blood pressure feature is a series of educational episodes about strategy and strategic management.1 you did not predict processes. 19 % last year clearly defined values for its apple vs samsung competitive strategy, past solutions for this. 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