Considering Samsung won the first round of the lawsuit (filed by Apple), experts observe that the companys market strategy has been increasingly confrontational and aggressive. Wall Street Journal, 22(9), 5-10. There are however more speculations regarding an ambitious expansion strategy for Apple if it is to adopt a stronger acquisition strategy. Samsung has not risen to the top by copying its competitors or levering its resources; it has been a dominant player in the technological industry by adopting unique competitive strategies. Then began a real patent war in which Apple has long been successful. StudyCorgi. The company's generic strategy agrees with this intensive growth strategy by focusing on technological innovation to increase competitive advantage and profits. Each level of organizational structure is led by a manager who reports to a senior authority. (2023, February 23). Samsungs brand value is now perceived to be in excess of $12.5 billion (Henny, 2003). Under the leadership of Steve Jobs, Apple was able to make a name for itself in the technological map. The product became actually popular among users, having large and multi-touch user interface. For instance, HP and Apple source the chips from Samsung and as Samsung formulates its marketing strategy, it needs to respect this working relationship. In the new market for digital music players, Samsungs three-year-old Yepp is behind only the Rio of Japans D&M Holdings Inc. and Apple Computer (AAPL) Inc.s iPod. 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. For instance, Apple has started making home appliances and HP has started to make televisions. Till now, Apple was mainly focusing on the development of personal computer and multimedia software such as Pages, iMove, etc. Apple believes that it can attract and retain the best human resource strategy by providing a strong incentive to leave the company so that weak or demoralized employees can be motivated to leave the company. Apple is a leader in the innovation and Samsung is a strong competitor to it. This makes the flow of information and decision-making simple. Advanced coding techniques use integrated computer software such as the Computer Assisted Qualitative Data Analysis Software which does little to supplement the interpretative nature of the exercise (but improves the efficiency of the process altogether). Samsung also likes to use many different varieties of prices and pricing for their products that they are selling and they also sell many different types of products with different types of prices while apple sells everything for a more expensive price. Different comparative studies have been developed for different purposes. This allows Samsung to gain ground, credibility, and money from their nemesis. The tablet market is expected to be dominated by Apple Inc. but so far, the American company has only reported sales figures of about 30 million. The main types of secondary research data to be used in this paper will be business journals and publications regarding the business strategies of Apple and Samsung. Finally, as part of Samsungs values, the company believes in the concept of prosperity because it believes it cannot succeed unless it also creates opportunities for other people to succeed. However, this decision was made with the acknowledgement that the company could lose its fortunes in a blink. In contrast, Samsung is using Social Media such as Facebook to promote its products and all possible channels or marketing. There are differences between these two brands as they adopt several techniques to reach the audience in their market effectively. Finally, this paper will source information from online sources of research as the last type of secondary research data. This strategy is further complimented by the focus on work experience as an important ingredient to Samsungs working plan. On the other hand, the production sector is complemented by competent engineers who deliver unique product models. They switched their core competitive power from mass manufacture to its own brand which based on digital technology (Henny, 2003, p. 4). Some companies have simple business strategies while others have complex and multiple business strategies. The second data analysis tool to be used will be the coding technique. Android Mobile Computing Using Samsung Tablets and Smartphones Running Android 2.3-Kindle version. These competencies are perceived as those components of the companies business strategies that are vital to the realization of competitive advantages. Apple can utilize a product differentiation strategy. Similar companies have also suffered the same fate because Motorola, Ericsson and Apple Inc. are also feeling the heat of sticking to the hardware market. Finally, the company does not trade with suppliers who employ children. In the second case study we compared the UX strategies of Google and Naver in the global and local levels. The US is one country that has ruled against Apple in its case for copyright infringement against Samsung but certain countries such as Germany have ruled in favor of Apple (in the same case). Mallin (2011) observes that the success of Samsung can be attributed to its unique competitive strategies. New employees are recruited and given the adequate resources to undertake their activities (according to the companys philosophy). Apple Inc. has produced apple TVs (which infringes on Samsungs strong foothold on the sale of television equipment) while Samsung has been resilient in producing tablets (which infringe on Apples core business the sale of the Apple ipad). To stay successfully relevant in todays business environment, it is important to employ successful business strategies. Personally, I like apple products because they are easier to use and are less Executive Summary Apple is an American global innovation organization, headquartered in Cupertino, California, which designs, builds and markets mobile phones, hardware, computer programming, and online administration. Business strategies are known to be the path taken by different companies as they try to outdo their competition. The company cultivates the secret and maintains the loyalty of its followers, always more numerous to queue up in front of the Apple Store. The first iPad was launched in the spring of 2010. a) Apple stores Apple has its own exclusive stores from where it sells its products (Marketing91, 2019). Definition of Marketing Mix. Free access to premium services like Tuneln, Mubi and more. With increased internet penetration in most countries, many multinational companies are slowly starting to appreciate the importance of online marketing (Jason, 2011). This explains why Samsung has always preferred horizontal integration by diversifying its product lines. February 23, 2023. https://studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/. Through the case studies this paper shows a strong implication that UX can be extended into the corporate resources and capability, and VRIO framework utilized for the analysis of competitive advantages for the market leadership. Other companies, which have achieved tremendous success in the past, have not done so by sticking to the hardware market. Apples marketing strategy has historically been focused on appealing to high-end customers. Apple is the market leader in the UK with 52.05% market share, and its major competitors are Samsung, Huawei, Motorola, Xiaomi, and Google. Now customize the name of a clipboard to store your clips. There is a direct correlation between the nature of business strategies adopted by the two companies and the corporate actions undertaken by the same companies. Samsung is known to imitative its main competitor Apple in product in design, functionalities, as well, as marketing strategy. (2023, February 18). The marketing sector understands customers specifications and relays the feedback to research and development sector for improvement. stream The fellow program was however implemented in the personal computing field. If you use an assignment from StudyCorgi website, it should be referenced accordingly. However, low-priced and unique products from companies like Samsung are a threat to Apple. 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). ensure the integrity of our platform while keeping your private information safe. DVD players also exhibit the same trend because Jason (2011) says that, currently DVD players sell for less than a quarter of their value (five years ago). Samsungs involvement in the Olympic Games was however not a one-off event; the company expressed its interest in sponsoring the games during the 1988 Seoul Olympic games, the Nagano 1998 Olympic Winter Games, Sydney 2000 Olympic Games, Salt Lake 2002 Olympic Winter Games and Athens 2004 Olympic Games (Henny, 2003, p. 6). However, the company appoints a brand manager who heads the innovation and development of a product model. Introducing changes that improve organizational performance and competitiveness at Apple and Samsung requires the following. Other companies have however perceived Apples strategy as flawed because it creates a lot of human capital redundancy. Emphasis will be given to the business actions undertaken by the two companies outside their primary operating environments. Apples ambassadors have also sprouted in the recent years but their input has been second to the near fanatically following that Apple enjoys. Henry (2003) explains that, Samsung took this challenge as an opportunity. 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. The companys sponsorship of the Olympic Games is part of the companys philosophy of producing better products and services for the betterment of humanity. 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. However, Samsung has not shown any interest in joining the growing number of companies entering the software market. Telephone services were also available at these centers. The site ran for about three months and about five million people visited it (Jason, 2011). 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. Due to the unpredictable nature of the hardware market, Samsung has had to trade at a discount to keep its shareholders happy. Despite Myths, Secondary Research Is Valuable Tool. The loss of market share to Samsung has forced the leaders at the company to come up with ways of improving its competitive strategy. The main challenge of pursuing different strategies may be that some of the strategies may not be very good for the business. Some time after the outbreak of hostilities, Samsung inaugurated its marketing strategy to highlight the main weaknesses of its California competitor. Talk to the audience in their language 4. %PDF-1.5 Apples venture into the television market and Samsungs smooth transition into the digital age highlight the similarity in product innovations. The company upholds high standards of social responsibility. To sum up, we discussed the positioning strategies of Samsung and Apple companies. The global value of Samsung's brand increased by more than 200% from 2003 to 2008, and it took over Sony as the most valuable consumer-electronics brand. This essay sample was donated by a student to help the academic community. Product strategy is central to the marketing strategy for iPhone. 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). As another competitive strategy for its business, Samsung has also pursued collaboration. Conceptualized by Cheil India, the campaign film is called #SamsungCares. The traditional business strategy of producing their main products in America is no longer a viable strategy because there is a high flexibility and diligence that is available in external markets. 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's business strategies are different and depend on product models. Activate your 30 day free trialto continue reading. Its consistent focus on the hardware market may prove to be disastrous in the long-term because it is a very risky gamble. This is one example of how Apple is able to be a pacesetter in the technological market. That's astounding. The sales and service dealers handle key accounts for Samsung and are involved in corporate sales. IvyPanda. d) Online a major sale point for Apple is E-commerce as well as its own portal from where it sells a lot of products. This analysis will be important in the understanding of the competition and extreme rivalry between Samsung and Apple. Targeting high-end customers poses as a weakness, as well as an opportunity from clients who want unique products. In support of this compliance, Samsung states that, Our 2009 product lines represent a new generation of converged products that blend technology with the active lifestyles of European consumers (Mallin, 2011, p. 13). "Comparative Analysis of Apple and Samsung." This legal fight is not inclined to close quickly. The ability of Apple to meet the global demand for its products has been a common topic among the industrys observers because there have been fears that the companys ability to meet increased global demand may be limited. MacBook, iPad, iPhone, iWatch are all premium products (Marketing91, 2019). Apple is the dominating brand in the US market and Samsung holds the lead globally. https://studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/. Several companies around the globe acknowledge the importance of adopting the online marketing communication. According to Interbrand [4] and Forbes [5], the Apple brand is worth US$234.241 billion and US$205.5 billion, respectively. This money has been termed as more than what the company needs to use for an unforeseen eventuality and some observers note that it is increasingly difficult to ignore the potential that this money has for Apple. Porter explains that a companys activities can be easily grouped into two segments: primary activities that involve the utilization of a companys resources to produce the companys main products and services, and secondary activities that improve the effectiveness of a companys primary activities (Chris, 2008). This research paper on Comparative Analysis of Apple and Samsung was written and submitted by your fellow Galaxy S is promoted as somewhat vibrant, fast and thinnest mobile phone and the advantages embraced are explained clearly. 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. However, with increased business opportunities comes more competition. Some companies are also required to improve their overall business operations by coming up with a good plan of action as a requirement for business financing. Another strong point observed from the researches sampled is the fact that Apple maintains a high-market strategy that bears little or no importance to the low-end market. It is therefore no surprise that Apple is making a lot of money (more than it can spend) while Samsungs defiance to venture into the software market only stands to limit its revenue stream (because it seems to mainly rely on its competence on the hardware market). (2019, June 16). Samsung aims to create a new future that positively impacts the entire global community (Samsung, 2019). Apple should therefore focus on meeting its surging demand and Samsung should reevaluate its entire business strategies. 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. Nonetheless, Samsungs main goal is to reap more profits in the wake of dwindling sales by focusing on a customer group that buys goods at a premium. With regards to this technological point of control, Jason (2011) admits that Assuming Apple pushes face time as a family video conferencing play, you can bet that competitors will counter with a similar feature based on Google Voice or Microsofts Skype and Kinect technology (p. 4). Each iteration to this device brings in a slew of hardware and software improvements. Though many observers term apples market focus as arrogant, the company has earned a reputation for producing minimal gadgets, which do not compromise on quality (Jason, 2011). Nonetheless, most companies have a business strategy. As opposed to producing average goods (or crappy products), Apple has focused on producing the best quality goods. Most of Samsungs plants are located in third world economies, which do not have strong labor laws that protect their employees from unfair work practices. The use of the qualitative research design is also supported by the fact that this research methodology is flexible and supports the inclusion of case study research information. This is also the main reason why there has been scanty information regarding the companys real sales figures (especially when the companys figures are compared with its competitors). For years, Apple preferred vertical integration which limited its capability to collaborate with other business partners and achieve flexibility. Alternatively, they could go big and buy Mastercard ($50B market capitalization) (Mallin, 2011, p. 4). The coding technique shares many similarities with the other data analysis tools used in this study because it is mainly interpretive (Tim, 1991). It represents one of the companys key areas of competence because the company has achieved a high level of success on the memory chip market. Primary research would however not contain this bias. Different researchers have attributed the success of both companies to their human resource strategies. This analysis also exposes how these resources compare with first-class resources, which are expected of existing technological companies in todays market. It is estimated that the cost of chips and displays accounts for about 90% of the cost of making new technological gadgets (Peggy, 2002). Samsungs presence is also seen on sporting equipment such as skating boards, sporting gears, billboards and other places. But today I will be talking about two main competitors as of right now. Price in the Marketing mix of Apple Inc. Retrieved from Marketing91: https://www.marketing91.com/marketing-mix-apple-inc/, Marketing91. 23 February. Apples 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). Therefore, Samsung surpassed Apple in terms of strategic capabilities. Integrated Marketing communication is an approach to achieve the objectives of a marketing campaign through a well-coordinated use of different promotional methods that are intended to reinforce each other. Apple employs the blue ocean strategy as a competitive plan to beat its rivals such as Samsung. For instance, IBM was known to be a very strong hardware manufacturer but after the business landscape changed to the software market, the hardware manufacturing giant was able to save itself from being obsolete to become one of the most competitive companies today. The companys success and main business competence has been its success in the ipod, iphone and ipad markets. 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. On the other hand, managerial marketing is focused on the implementation of specific targets.' For instance, Apple Inc. was among the first multinationals to have created a lot of capital in its initial public offer (IPO) after Ford Company (Mallin, 2011, p. 1). Samsung is banking on marketing when Apple plays all its cards on the design of its products. The first strategy adopted by the company was using available resources in brand building. Similarly, a small business owner may fail to see an existing business opportunity for growth. 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. Just as Frito-Lay thinks about the share of stomach it captures with drinks and snack foods, Apple seeks share of screens be it on Mac, iPod, iPhone or iPad. Apples ability to integrate useful components of its hardware and software components has been identified as a platform that the company uses to decrease its aggregate cost (Mallin, 2011). Samsung s marketing blitz vs Apple Effective but big. 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). It highlights the basic difference in the approach of both the brands. (2019, March 10). Apples domestic and global environmental policy is evaluated using a Global Reporting Initiative (GRI) and Sustainability Reporting Guidelines (G3). Therefore, Samsung has more experience in the home appliance market, which it can use to counter competitive pressures in the same market segment. 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