The value chain analysis however exposes the distinction between primary and secondary activities and identifies which activities are complemented through the support of other companies. It has very little influence over its distribution partners. These views provide the right framework for the analysis of the research problem. The purpose of this report is to compare and analyse the marketing mix strategies of Apple and Samsung and also the final aim is to create recommendations of the companies. Though the memory chip business is prone to the challenges of its cyclical market, Samsungs presence in this market segment is unrivaled. There are differences between these two brands as they adopt several techniques to reach the audience in their market effectively. 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 Through this conviction, Samsungs management established that the sports-based strategy fit well with the companys values and philosophy. Publicity is considered an effective way of marketing because it is known to be highly effective. In the second case study we compared the UX strategies of Google and Naver in the global and local levels. This technique will not only be used to check the validity of the research information obtained because it will also evaluate the accuracy, credibility and transferability of the research information obtained. THE STUDY OF SMARTPHONE IN THE CITY OF MUMBAI According to Interbrand [4] and Forbes [5], the Apple brand is worth US$234.241 billion and US$205.5 billion, respectively. Apple employs the blue ocean strategy as a competitive plan to beat its rivals such as Samsung. The latter may include the use of new technology, employment of competent and highly trained personnel (among others). Jason (2011) observes that the world market is obsessed with hi-tech technological gadgets such that it has been easy to overlook what a shortfall of these gadgets may mean for the consumers. In fact, the company withdrew its products from specific low-end retail stores much as Wal-Mart and target to higher-end retail stores like best buy and Circuit city (Henny, 2003, p. 4). This suspicion exists despite the fact that Samsung is considered among the most transparent companies in the emerging market economies. This amounts to about half of all the stocks held by the company. Apple is superior to its competitors (Samsung, Huawei, LG), most of the Apple products have premium pricing. Apples business strategy has especially come into sharp scrutiny after recent reports revealed Apple monopolized its partnership deals and agreements with third party supply companies. Each level of organizational structure is led by a manager who reports to a senior authority. February 23, 2023. https://studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/. The period for undertaking this study is spread to accommodate different activities within a four-week period. Considering the belief that software is the future for technological companies, many observers say that Samsung is taking a huge gamble by sticking to its hardware market (Mallin, 2011, p. 5). However, both companies have pursued different strategies to achieve their success. For instance, Samsung plays a huge role in meeting the demand of about 20% of the Korean population who buy new handsets every six months (Henny, 2003). StudyCorgi. For instance, Google established an online platform where it distributed materials freely and hoped to leverage its business through increased business revenue. Jobs stressed on cultivating employee excellence by starting a fellow program where outstanding employees were rewarded for their performance. A companys business strategy represents the vision of the management, but more so, the vision of the leader. Nonetheless, Apples corporate culture revisits the age-old debate regarding which corporate structure is the most effective. However, based on the numerous volumes of research analyzed in this study, the reorganization of Samsungs organizational structure, which has seen a reduction in the levels of management, has also contributed to the companys increased performance. SUBMITTED BY: Apple and Samsung are the biggest smartphone companies operating worldwide. 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 essay is available online and was probably used by another student. 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. Samsung was founded by Lee Byung-chul in 1938 as a trading company. Chris, H. (2008). This is an uncontrollable aspect of the companys operations. Samsungs market strategy has traditionally been holistic in the sense that the company meets the needs of all market segments. Among the most notable advantages, include the availability of current and rich information. In this study, the research information will be compared to the existing pool of research sources and any distinctions checked to report on the accuracy or validity of the findings. smartphone industry is dominated by two giant companies: Apple and, Apple is a premium brand associated with a premium income level. This recognition increased the companys prominence in this regard. The Samsung galaxy tablet is one such example but still, the Korean giant has not been able to surpass Apples sales in this regard. 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). Employees with the most valuable work experience therefore form a majority of Samsungs human resource pool across all its production plants. 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. In 2013, Samsung started growth on building the biggest cell mobile phone manufacturer in the China providers Nguyen area of Vietnam. In fact, most of the company business strategies are part of Steve Jobs ideals. 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. But Apple's success isn't just a matter of making a lot of money, or selling a lot of products. Like other multinational companies around the world, Apple has forged a close working relationship with China. And we paid a lot of attention to our distribution channels. Millions of viewers see host Ellen DeGeneres taking selfies with guest stars using a Samsung phone. Seocho However, recently Apple has been losing out on sales, due to it's narrow product line, premium image, and focus on bringing out one product at a time. The strategy that the three employed is consistent creative design and concept. Recent smartphones and tablets of the brand are now positioned on the high end. Apple Inc., an American multinational corporation was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 197. There are several advantages to be realized from the above meta-analysis. Samsung electronics is also engaged in the same type of business as Apple because some of its main products have been compared to Apples. Apple is using its mission and vision statements to become a leading innovation company in technology. The final week of study will be dedicated to data presentation. 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. The move to the digital market sparked most innovative projects by Samsung, although the company perceived this venture as a risky move at the time (Henny, 2003). 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. iPad is a line of tablet computers designed, developed and marketed by Apple Inc., runs the iOS and iPadOS mobile operating systems (iPad, 2019). In addition, unlike Apple, Samsung does not dictate the terms for its distribution channels. In fact, the company prefers to keep its organization structure a secret from its competitors. The reduction of energy consumption has also been seen to comply with the European Union (EU) energy regulations. Web. Apple has launched online advertisement campaigns to reach the users. To show the difference between Apple and Samsungs business strategies, Mallin (2011) notes that Samsungs international strategy has mainly been focused on the US market. So far, Samsung has collaborated with other companies such as Toshiba, and Philips to better their business practices and fortunately, some of these collaborations have increased the companys market share (Mallin, 2011). This observation highlights the strong emphasis on educational qualifications as one of the key requirements for Samsungs employees. Apple is one such company because it is known to seek the best employees by paying the weak ones (or the ones who lack commitment) to leave the organization. This paper will therefore show what to expect of different businesses, based on their business strategies. 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, it is seen that similar companies can obtain the same hardware for a cheap price because they do not have to tie up their capital in the same venture. Rmon Elsten, Vice-President of the Swiss Contact Center Association, Watch DSIM Trainees Celebrating Last Day of Batch. Chris (2008) explains that a business strategy should show different aspects of a companys operations such as the scope of the companys operations, the current consumer trends in the market, the unique capabilities that are bound to give a company competitive advantage and what needs to be done to secure the future of the business. 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. In the US alone, it is difficult to miss Samsung gadgets such as high definition plasma televisions, mobile phones, digital cameras and other technological gadgets in any electronic shop across the country. 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. Concerning the quick response by Samsung, Henny (2003) explains that Samsung is good at producing easily marketable gadgets that can sell quickly. On the other hand, the production sector is complemented by competent engineers who deliver unique product models. Different researchers have attributed the success of both companies to their human resource strategies. To establish the validity of the research information obtained, the member check technique will be adopted. 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). This analysis only shows the distinction between Samsungs work ethics and western work ethics but it does not propose that Samsungs work ethics are wrong. Some of these resources may be wholly owned by the companies but others may also be acquired through partnerships, joint ventures and similar arrangements. Fabless silicon design. It is said that if you know your enemies and know yourself, you will not be imperiled in a hundred battles; if you do not know your enemies but do know yourself, you will win one and lose one; if you do not know your enemies nor yourself, you will be imperiled in every single battle (Chris, 2008, p. 2). For example, Samsung has been engaged in a long battle with Sony after the latter introduced the Blu-ray technology in its gaming gadgets. Macintosh. The second battlefront for Apple will be the stiff opposition forged by existing content distributors. The Samsung brand can be improved and it isnt loved by some like Apple, but I am impressed with the leadership team for seizing the opportunity to leapfrog all its other competitors, through investment and execution with conviction. However, Samsungs management is of the opinion that, when it comes to competing against one another, it will not shy away from the battle. The company aligns its business strategy to both marketing and production. Googles android operating system has been closely associated with Samsungs products because the two companies share a close working relationship that has seen most of Samsungs products use the android operating system. Marketing News, 25(18), 28 -56. Here, the computation of the findings and the data analysis process will be done. Apple has pursued this strategy for a long time and evidence shows that it is unapologetic for pursuing this market strategy. Some observers have termed this strategy as Crazy and illogical (VAR, 2005, p. 3). Marketing Strategy: Apple vs. Samsung At the origins of the conflict The legal battle between the two giants of the mobile market has been the starting point for a quarrel that has only. In addition, the company has a compliance program where all employees are subjected to as a standard procedure of training. In addition, the company derives strength from a large pool of competent engineers who get support from an aggressive research and design personnel. Conceptualized by Cheil India, the campaign film is called #SamsungCares. This risk is further complicated by the fact that Korea has experienced several corporate governance scandals that are bound to cast doubt on the real accounting figures of the company. Samsung also puts a lot of emphasis on ethics and integrity as the core drivers for its operations. Evidence is given of Sony, which was forced to almost depend on its play station market to sustain its hardware production because it stuck to the hardware market (Jason, 2011). This spat is between Apple and a Chinese company named Proview (Jason, 2011). Recently, the company launched a new cell phone that allows its users up to 30 minutes of video time on the phones (Henny, 2003). If you have to compare the smartphone market share, back in 2009, Apple was at 16.1% and Samsung a mere 3.3%. In fact, Chris (2008) estimates that many changes in the business environment amount to many business opportunities and increased threats. NOVEMBER 2014. The overall sale in the NAND flash memory market is estimated at $7 billion and Samsung reaps heavily from this market (Jason, 2011). Another key difference between Apple and Samsungs production strategies is the focus on the hardware and Software markets. On the other hand, pricing strategy is critical for Samsung. Through the same market strategy, Samsung also hoped to achieve a stronger customer brand loyalty. There is also the possibility of using Microsofts features in the same manner. Furthermore, the company focused on a high-market strategy aimed at developing highly engineered gadgets at a premium but consumers never responded to this strategy positively. Samsungs successful pricing strategy is mainly attributed to its proficiency and dominance in the chip and display market. The company emphasizes the importance of people input because it believes that its success is mainly based on the success of its people (Henny, 2003, p. 5). Netflixs growth was therefore hampered as its competitors continued to gain a larger market share because of the environmental boundary changes that did not work in its favor (Jason, 2011). While Apples epicenter lies around how people use its products to make a difference to their life, Samsung emphasizes and advertises its features. No longer do customers have a keen eye on price at the expense of quality. Therefore, Samsung has more experience in the home appliance market, which it can use to counter competitive pressures in the same market segment. Currently, Samsung has a market capitalisation of about $154 billion, barely a quarter of Apple's. But if you believe that a company should be measured by how much it sells then it's Apple that is following Samsung as the second-largest electronics multinational in the . This area of operation has boosted Apple because most companies do not have the grasp that Apple has over its distribution channels. By clicking the above button, you agree to our Privacy Policy. 4.8% of sample respondents say that Samsung and Google are far better in thinking innovatively than the Apple company. Enjoy access to millions of ebooks, audiobooks, magazines, and more from Scribd. This is the basis for Samsungs copyright infringement lawsuits against Apple. The SlideShare family just got bigger. However, due to the ongoing court battles between Apple and its rivals, the company is expected to spend a few million dollars settling these cases but in equal regard, observers do not see this move as having a significant impact on Apples financial books (Jason, 2011). 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. 4 0 obj It will therefore be more fruitful for Samsung to focus on other international markets such as Europe and Asia if it intends to counter Apples influence in the tablet and phone markets. Over a span of three decades, Apple Inc. has been able to establish itself as a force to reckon with in the electronics market. This downward push has been precipitated by lower wages and cheaper engineering technology from the Chinese market. In 2010 alone, this market grew by close to 200%. But speaking about the future I believe there will be only one winner. This change highlights the way the internet builds brands over time. The Content Marketing Showdown Apple vs Samsung. Observers often note that brand building usually has a significant pay off to employees and customers alike (Henny, 2003). Morrison, S. (2004). A STUDY ON PRICING STRATEGIES OF SAMSUNG AND APPLE We've encountered a problem, please try again. In this essay example, youll find everything you should know about Apple vs. Samsung marketing strategy and business strategy. VAR. Apple, Samsung and Huawei always battle for the biggest and boldest advertising campaign to get all the attention and brand retention. These dealers can open exclusive Samsung showrooms. The companys quest is the development of useful products that can benefit consumers (through innovative technology). PROJECT SUBMITTED TO: To support high employee talent, Apple came up with an effective fellow program, which rewarded employees for their outstanding performance. This campaign launched in 2014 became more of a story of people using ipad instead of the product itself. This diversity is likely to be realized from the inclusion of diverse information sources in the secondary research studies. The companys vice-president affirmed that, sports sponsorship is a strategy that fits well within our operations at Samsung. Samsung does not share specific sales figures regarding its business portfolios. There will be no time limitations to the strategies adopted by the two companies when we analyze the differences and similarities between the two company strategies. 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