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. Samsungs business strategy has however been compounded by the growing convergence of different technologies in the market. Apple and Samsung have achieved high levels of business success over the years. For instance, a small business owner may not account for competitor actions or the threats that may occur in the business environment. https://studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/. 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). It is also during this period that Apple introduced the itunes platform, which allowed consumers to purchase music and play them on other music players. Samsung accounted for 37% of smartphone sales and Apple 29% in May 2016. 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Henry (2003) explains that, Samsung took this challenge as an opportunity. 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). Some time after the outbreak of hostilities, Samsung inaugurated its marketing strategy to highlight the main weaknesses of its California competitor. Since business strategies span different sectors of a companys operations, this paper seeks to understand the business strategies of Samsung and Apple by identifying how the strategies of the two companies compare to one another. However, the survey was based on experiences reported by 1,985 tablet owners in July 2012. Fabless silicon design. Therefore, the true effect size of the data collected from the secondary research sources will be estimated by the meta-analysis. (2019, March 27). Observers associate Apples success to its ability to foster individuality and uphold employee success (Mallin, 2011). These sales channels are as follows: Apple stores. Samsung has not been so popularly in the past but have undertaken strategy in marketing to increase its popularity in the Smartphone market. From the above characteristics of Apple and Samsungs business strategies, it is important to highlight the works of previous researchers who have expressed divergent views regarding Samsung and Apples business strategies. Apples 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 increased brand awareness also led to a significant boost in the companys sales. During the same period, April posted a net profit of more than $1billion after reporting revenues of more than $8 billion (Mallin, 2011). The company has enjoyed almost unparalleled revenue growth from 2004 to 2020 $8 billion to $2,274 billion. This report focusses on these two companies and their marketing mix strategies. However, both companies have pursued different strategies to achieve their success. The media has often portrayed Apples culture and business practices as uniquely unconventional and odd. This essay wont pass a plagiarism check! Samsungs international marketing strategy has therefore been focused on the US market. Samsung also needs to reevaluate its business strategies according to the current intrigues of the technological market. The focus on the US market is considered important because a brands success in the US is considered the first step towards attaining a global brand status. Later, the companys reputation was soiled by a poor response to its products and its failure to meet deadlines. The market for NAND flash memory has grown over the past years, thereby increasing Samsungs profitability over the years. You can read the details below. Simply, Samsung does not adapt to conventional ways of implementing its competitive strategies. However, for purposes of this study, we seek to highlight the differences and connections between the different market approaches pursued by Apple and Samsung. 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 legal battle between the two giants of the mobile market has been the starting point for a quarrel that has only increased over the years and product launches. Apples first conviction when faced with an operational problem is how the company will be able to solve the problem through internal mechanisms. Its a brand that, everyone may want, but not everyone can afford. Jason (2011) notes that Samsungs strategy is informed by its tight grasp on the emerging markets. The US consumer base seems to be an inflexible customer pool, which would be harder to penetrate. Through this initiative, Samsung won an American award in product design (the most prestigious award in product design) (Henny, 2003). Apple has gained customer loyalty and brand recognition due to its diversification strategy and fulfilling customers desires (Khan and Alam, 2015). In addition, unlike Apple, Samsung has forged many business partnerships with other companies within the same industry. Retrieved from Marketing91: https://www.marketing91.com/marketing-mix-of-samsung/, Marketing91. Integrated However, the methodology applied by Apples management has been unpopular and uncommon (VAR, 2005). Obviously, there are some concerns over monopolistic tendencies because Apple is considered among the most valuable companies globally. The iPhone advertisement of Apple is similar, always with white background, exotically alluring to the users. Regulatory Toxicology and Pharmacology, 58(3), 524-538. Web. We've encountered a problem, please try again. Obviously, issuing dividends to the companys stakeholders is a sure way of sharing the companys success with the people that matter (Jason, 2011). However, this marketing strategy has a big risk attached to it because most companies fear the consumer perception that their brand is ordinary. 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). This conviction is supported by their human resource strategies, which aim to attract a competent human resource pool that is able to come up with new ideas for new product lines. The question of whether Apple should take equal accountability for corporate social responsibility (CSR) as it currently does for its financial performance continues to be heavily EduBirdie considers academic integrity to be the essential part of the learning process and does not support any violation of the academic standards. The Wisdom of Generations: Using the Lessons of History to Create a Values-based Future. How are their business and marketing strategies different? It is estimated that Apples stock price rose more than ten times (Mallin, 2011). Deloittes corporate Apple was founded in 1976 by Steve Jobs and his friend Zwynak. 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. Indeed, Apple cemented its name as a technology leader in terms of innovations. On the other hand, Samsung has a large pool of engineers who design products internally. This downward push has been precipitated by lower wages and cheaper engineering technology from the Chinese market. In this regard, Samsung face threats from low-cost competitors and technological giants such as Apple in its major markets. In this regard, product models are viewed as efficient, exclusive and expensive. Cultural competency is a leadership initiative at Samsung, and its role is to understand customers requirement from a broader perspective (Dippel Jr, 2012). The increased efficiency of the integrated computer software also allows for work sharing, peer-review, and easy examination of the information obtained (Tim, 1991). These mergers were aimed at countering Microsofts influence in the software market. In 2010 alone, the market for television equipments rose by close to 15% and similarly, experts project the potential market for the same to be close to 78 million units (Jason, 2011). Observers often note that brand building usually has a significant pay off to employees and customers alike (Henny, 2003). For years, Apple preferred vertical integration which limited its capability to collaborate with other business partners and achieve flexibility. The value chain analyses will be considered an integral part of the companies business strategies because it will also be considered an important aspect that defines the strengths of both businesses. For instance, Google established an online platform where it distributed materials freely and hoped to leverage its business through increased business revenue. To stay successfully relevant in todays business environment, it is important to employ successful business strategies. Presently, Apple and Samsung are seen as the largest manufactures of Smartphones across the world. 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. Jobs input in the companys operations has been invaluable because employees have often cited his input as facilitative (Mallin, 2011). The companys growth into profitability was also characterized by the Intel transition that occurred in the 2005-2007 period when Apple merged its computer production with Intel (Mallin, 2011). In a recent press conference made at the Goldmans Sachs business platform, Cook revealed that only one out of four people do not buy Apples smart phones (Mallin, 2011). Apple Inc. has a global presence in 10 countries around the world and it runs 357 retail stores in these locations. This educational qualification is a form of benchmark for Samsungs managers and it acts as a sieve to attract the best human resource talent available in the marketplace (and eliminating all irrelevant human resource talents). Sonys CEO was quoted as saying, To survive as a global player, we too have to change (Mallin, 2011, p. 5). On the other hand, Samsung has a wide range of product models that are not high-end. The Korean market was among the first market to enjoy Samsungs innovation. This closed-ended strategy has seen the company manage small attributes of the business environment that are often perceived to be uncontrollable by Apples competitors. The strong customer pool would occasionally meet in different company expos around the world. Sony is estimated to have lost about $940 million to Samsung while Micron, Infineon, and Hynix are estimated to have lost collectively about $2 billion of its profits in the memory chip market to Samsung (Jason, 2011). 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). 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. Price in the Marketing mix of Apple Inc. Retrieved from Marketing91: https://www.marketing91.com/marketing-mix-apple-inc/, Marketing91. However, this trend has changed and many companies are now operating in multiple business segments. The product is perceived to be next generation equipment, which sets it on the warpath with other established brands in this market such as Samsung and Sony. However, Samsung has not shown any interest in joining the growing number of companies entering the software market. Samsung has also achieved tremendous success based on its business strategies. We live in a highly visual world. Samsung was founded by Lee Byung-chul in 1938 as a trading company. The overall sale in the NAND flash memory market is estimated at $7 billion and Samsung reaps heavily from this market (Jason, 2011). Deagon, B. endobj Conceptualized by Cheil India, the campaign film is called #SamsungCares. Here, the computation of the findings and the data analysis process will be done. For instance, Samsung electronics is part of a wider group of companies forming the Samsung group. 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 types of business strategies adopted by the two companies may therefore include different aspects of the business strategies including (but not limited to) marketing strategy, financial strategy, competitive strategy, financial strategy, production strategy and human resource strategy. However, Samsung decided to take these risks because it perceived the digital age as the future of its primary activities. Recently, Apple sued Samsung for copyright and patent infringement after it accused the South Korean technological giant of copying Apples ipad and iphone features (Deagon, 2011, p. 1). This analysis will be an important tool in benchmarking the performance of Samsung and Apple viz-a-viz their business strategies. However, on a larger platform, Samsungs resources are designed to strengthen its areas of key competence television market and other hardware market segments. It has changed the usage of computers around the world. The slogan It does not take a genius was clearly referring to the Genius , experts of the Apple Store. This essay sample was donated by a student to help the academic community. A big part of the answer lies in its sheer marketing muscle Samsung spends a bigger chunk of its annual revenue on advertising and promotion than any other of the world's top-20 companies by sales 5.4%, according to Thomson Reuters data. Books will also be relied on as credible sources of research information because they contain published texts. We've updated our privacy policy. Apples strategies are perceived to be largely successful. Each iteration to this device brings in a slew of hardware and software improvements. Marketin Strategy Samsung Samsung Electronics. Marketing News, 25(18), 28 -56. The final week of study will be dedicated to data presentation. Some of these resources may be wholly owned by the companies but others may also be acquired through partnerships, joint ventures and similar arrangements. IvyPanda. Chris (2008) explains that the utilization of a companys resources is important in the fulfillment of a companys stakeholder expectations and market needs. Apple doesnt use Twitter accounts, Facebook profiles, or indeed have a blog. This quick transition from analogue to digital production was considered a necessary move for Samsung because the companys management believes that a late venture in the digital market was going to be fatal for the company (Henny, 2003). Samsung, like its biggest competitor Apple, has a wide range of products such as Smartphones, Tablets, Laptops, TVs, etc. As you can. Experts note that Samsungs business strategy is therefore unsustainable and it is going to suffer the consequences of sticking to the hardware market. Unlike Apple, Samsung is based in South Korea and has a sales network spanning over 60 countries across the globe (Henny, 2003). This paper focuses on the court battle between Samsung and Apple as one area of competition for the tablet market share. The sales and service dealers handle key accounts for Samsung and are involved in corporate sales. Promotion in the Marketing Mix of Samsung. 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 research and development sector is aggressive and always try to develop new product models as evidenced by manufacturing of the same after a short period. With a wide range, Samsung devices are more attractive to techies attracted by open source, easy customization of mobile, innovative features and technical capabilities. Apple Inc. implemented the blue ocean strategy; concurrent pursuit for uniqueness and low costs to open up a new market and demand (Kim, 2004).The company used the strategy to supply creative and innovative products that changed the field of art. Samsung Global Strategy Group. Employees with the most valuable work experience therefore form a majority of Samsungs human resource pool across all its production plants. 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. 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). Only companies such as Coca Cola, IBM, and Visa have achieved this sort of brand recognition at a global level. Live Exercises: Google Trends & Google Analytics, Career Opportunities: Roles, Experience & Salaries. However, observers estimate that the South Korean company sold about 35 million Smart phones in 2011 (between October and December) (Deagon, 2011, p. 1). This emphasis is explained by the importance of the American market as a test platform for the launch of new products in the international market. Samsung is present through various channels in the market. (2023) 'Comparative Analysis of Apple and Samsung'. Finally, the last motivator for Apple to join the television market is that it gives it an opportunity to venture into the hardware market. Some of the most notable changes on Apples business strategy has been the focus on new and emerging markets, the development of new products (such as Apple televisions), development of Apples icash and boosting the companys operations to meet the increased global demand for Apples products. Furthermore, the introduction of mobile VoIP on the Smartphone is considered another area of key competence, which was advanced by Samsung and Apple, thereby, allowing their customers to use features such as Skype and Vonage on their mobile phones (Deagon, 2011, p. 1). 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. Apple also generated the buzz among the music industry for procuring Beats by Dr. Dre but it felt to be a little late. Samsungs marketing strategy has also been distinguished from Apples marketing strategy based on its resort to pursue a web-based marketing strategy. This will be an expansion of the form factor. Why today is the BEST time to learn Digital Marketing? Chris, H. (2008). 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. On the other hand, Samsung has a renowned green management system that ensures the companys domestic and global facilities conform to local and international environment regulations. 2023 EduBirdie.com. (2011). Wall Street Journal, 22(9), 5-10. It is almost impossible to point out that Apple has differentiated itself from its competitors by remaining unique. For instance, any move by apple to acquire another technological company (as part of its expansive and ambitious plan to strengthen its market base) would be viewed with extreme suspicion (Jason, 2011). Apple vs Samsung Strategy - What is Strategy - Strategy Made Simple - 01 7,235 views May 6, 2020 133 Dislike Share Save TheAdvantage 152 subscribers Strategy made simple is a series. Because Samsung has a wide range of products, the company uses many price strategies. It is therefore a usual occurrence to find hundreds or thousands of people waiting outside different Apple retail stores to buy a new Apple product. Earlier, the mobile phone market was ruled by companies like Nokia and Motorola, Apple took over the market when it launched iPhone in 2007. Apple is not expected to have it smooth in the television market. 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. 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. The aura of Steve Jobs still hangs in the brand universe introducing a notion of worship. Furthermore, the reliance on business journals and related studies will strive to ensure the findings of the study remain within the confines of the business field (because the research problem is equally corporate). 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. Apples resources are however diverted to improve the companys software competence. This development was seen as the main reason why Samsung exited the lower-margin segment of the television market by stopping the manufacture of television sets, which were lower than 27 inches. Henny, S. (2003). 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. However, Apples initial business practices have been lost with the successive changes of management and CEOs. Sometimes, this can only be achieved through encouragement, manipulation and coercion if the resistance towards change is inevitable. The company also dictates the manner it wants its brand to be mentioned in the public arena because it bears a lot of importance to the usefulness of positive branding. However, Samsungs management is of the opinion that, when it comes to competing against one another, it will not shy away from the battle. In addition, contrary to popular ideology and business practice, Samsung remains vertically integrated and increasingly diversified as opposed to focusing on some of its main competencies. The data will be analyzed and segmented into different groups, which are identified by unique codes. In this regard, Morrison (2004) notes that, Samsung has operated to save more money while Apples financial strategy has been based on expending its surplus resources for more competitive power. 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. (2011). Get your paper done in as fast as 3 hours, 24/7. Web services were available at these centers and participants were allowed to make online contact with people from their home countries. However, low-priced and unique products from companies like Samsung are a threat to Apple. The fellow program was however implemented in the personal computing field. 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 . (2019, March 10). The strategy that the three employed is consistent creative design and concept. For instance, the business association between Samsung and Apple (in the supply of hardware parts for Apples products) shows the acquisition of new resources for Apple in sustaining its business strategies. The company tends to look for innovative ways of formulating its competitive strategies. In the same event, Samsung conducted several public relations sessions with other stakeholders to elevate the companys position as a top-notch brand. Different factors are usually in play. The above research sources will provide the groundwork for a meta-analysis, which will combine the findings from the three sources of secondary data to form the framework for the research findings. Less than a decade ago, Samsungs brands were perceived to be cheap and low quality, with some critics perceiving its products as me too products. For close to a decade, Samsung has maintained this position. 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