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Jason (2011) observes that Apple should take advantage of the potential for this market segment despite the fact that its primary market is the high-end market. The level of brand awareness realized from becoming one of the leading sponsors in the Olympic Games (alone) tripled after the games. Apple and Samsung are some of the giant technological companies engaged in the same type of business. Giant multinationals are known to have multiple business strategies because they operate different business portfolios. Jason (2011) observes that Apple and Samsung’s marketing strategies are similar because of their focus on the high-end market. Apple came up with the Apple TV product as one of its new innovative products and Samsung came up with the Samsung galaxy product as one of its latest innovative brands. This company is Here, it will be easier to see which business portfolios fuel the success of both companies and which ones increase the chances of failure for both companies. Other companies have however perceived Apple’s strategy as flawed because it creates a lot of human capital redundancy. According to its business strategy, Apple has adapted advanced features and capabilities of its products and services as bases of its competitive advantage. Web services were available at these centers and participants were allowed to make online contact with people from their home countries. However, Steve Job’s influence on the technological giant has been the most profound and widely talked about. This area of operation has boosted Apple because most companies do not have the grasp that Apple has over its distribution channels. Though evaluating a business’s resources, value chain and core competencies are important aspects of understanding a company’s business strategy, it is equally important to evaluate the performance of a business viz-a-viz its business strategy. The media has often portrayed Apple’s culture and business practices as uniquely unconventional and odd. Jason (2011) notes that Samsung’s strategy is informed by its tight grasp on the emerging markets. The increased efficiency of the integrated computer software also allows for work sharing, peer-review, and easy examination of the information obtained (Tim, 1991). Apple’s Injunction Bid Vs. Samsung Seen Partly Denied. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. It is at this point that Apple changed its name to Apple Inc. after the company shifted its business focus from making personal computers to other technological gadgets such as mobile phones and music players. Other applications such as the appstore have been highlighted in this study as having raked millions of dollars for the American giant. This development was a departure from the norm because traditionally, more established brands such as Coca Cola and Visa had a strong impact on people’s lives. This attribute exposes the uniqueness of Apple’s operations compared to other companies in the same business. They are able to keep their base due to easy-to-use designs and data migration to new product lines. 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. Partnership is therefore perceived as a last resort because Apple has attempted to silence their partners by sieving what they can disclose (about Apple’s operations) to the public. Samsung vs. Apple MOBILEYOUTH ® youth marketing mobile culture since 2001 Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. For instance, Samsung electronics is part of a wider group of companies forming the Samsung group. The fellow program was however implemented in the personal computing field. Therefore, it will be easier for people to find a direct correlation between Apple and Samsung’s business strategies and their overall corporate performance. This shift was also informed by the fact that Samsung’s products were increasingly being perceived as a as cheap brands. The overall sale in the NAND flash memory market is estimated at $7 billion and Samsung reaps heavily from this market (Jason, 2011). The findings of this paper will also provide a good platform to formulate a usable and adoptable view to the analysis of Apple and Samsung’s business strategies. 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). Samsung electronics is also engaged in the same type of business as Apple because some of its main products have been compared to Apple’s. One of these organizations was to be focused on Biopharmaceuticals, to which the organization has dedicated ₩2. Dominates the Smartphone Market – Samsung has dominated the smartphone market for years. Branding strategy followed by Samsung and Apple. For close to a decade, Samsung has maintained this position. 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. Finally, this paper will source information from online sources of research as the last type of secondary research data. After the company sponsored the games, Samsung was listed as constituting among the 21st most valuable brands in the world (after the company’s brand value increased by 16%) (Henny, 2003). Wall Street Journal, 22(9), 5-10. As opposed to producing average goods (or crappy products), Apple has focused on producing the best quality goods. While Apple still imports billions of dollars' worth of components from its rival every year, Samsung is beholden to nobody. “Nike makes some of the best products in the world – products that you lust after, absolutely beautiful stunning products. The strategies pursued by both companies are aimed at increasing their market share in the global environment. • Nature and business dynamics of smartphone industry and its critical success factors• Competitive strategy, value and volume dynamics between Apple and Samsung in being the market leader• The strategic insights from smartphone industry’s competitive dynamics. Samsung’s Strengths – Internal Strategic Factors. This movement transitioned Samsung’s position as the leading company in the digital age to the leading company on the innovative front. The highlighted business strategies adopted by the two companies will therefore be assumed to be the current and prevailing business strategies used by the two companies over the years. Through this conviction, Samsung strives to ensure that all its operations are done fairly and respectfully to protect the interests of the company’s stakeholders. Technologies LLC, a company registered in Wyoming, USA. Through this conviction, Samsung’s management established that the sports-based strategy fit well with the company’s values and philosophy. The site ran for about three months and about five million people visited it (Jason, 2011). This case flyer can be used in an MBA Program for Business/Corporate Strategy for either of the following concepts/theoretical constructs/discussion modules: Smartphones have become an integral part of our lives because of its ubiquitous nature – it, practically, is a device that enables a multitude of functions. Closing The Gap: Samsung vs Apple Pricing Strategy Published on March 23, 2015 March 23, 2015 • 15 Likes • 1 Comments In addition, secondary information may contain bias (on the part of the researcher), thereby reducing the credibility of subsequent research information which may be obtained from the same. If Apple doesn’t file a suit, then Samsung’s dominant strategy is to, of course, file a suit. One such aspect is the company’s supply chain strategy. To show the difference between Apple and Samsung’s business strategies, Mallin (2011) notes that Samsung’s international strategy has mainly been focused on the US market. “The South Korean consumer electronics giant – now the number one Smartphone maker in Australia, according to IDC – released two ads for its Galaxy S II Smartphone that launched thinly veiled attacks on Apple products and ridiculed the hordes who line up for days to buy them” (Jason, 2011, p. 3). In addition, this paper proposes that Samsung should redirect its resources to focus on new and emerging markets as opposed to battling for the developed markets. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. Primary research would however not contain this bias. Los Angeles: Investor’s Business Daily. If it is compared to other brands that are having equivalent specs such as Samsung, Asus, HTC, or Xiaomi, the price of Apple is pretty high. Most of these customers are local (Americans) but occasions have been witnessed where some customers fly from overseas and wait in line for days to purchase Apple’s products. The company’s pricing strategy and its huge global presence is also perceived by some observers as the main competencies that the company expects to take advantage of, as it battles for the top spot with Apple (Jason, 2011). Los Angeles: Investor’s Business Daily. Recently, Japan was quoted as developing its own Chinese plants to take advantage of the reduced production costs in this location (Jason, 2011). This revelation came after Apple opened itself to other organizations such as ABC nightline to be part of the company’s supply chain after the new company CEO adopted an open policy to the company’s associations (Mallin, 2011). Samsung wanted to portray a high-class attribute for its products among the US consumers. Mainly, the coding technique will be used to organize the huge volumes of research data collected. Jason (2011) explains that. For instance, Apple has started making home appliances and HP has started to make televisions. The ability of Apple to meet the global demand for its products has been a common topic among the industry’s observers because there have been fears that the company’s ability to meet increased global demand may be limited. All the major sectors of product management are studied. Morrison (2004) observes that Apple and Samsung have had very different business strategies (based on their financial resources). However, Samsung’s management is of the opinion that, when it comes to competing against one another, it will not shy away from the battle. However, Apple’s corporate culture has been associated with southwest airlines, and Microsoft (Mallin, 2011). The US consumer base seems to be an inflexible customer pool, which would be harder to penetrate. 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). Apple’s venture into the television market and Samsung’s smooth transition into the digital age highlight the similarity in product innovations. Samsung only realized this strategy after it noticed that the low-end market was not bringing many revenues to the company, even after the company realized increased sales (in physical quantities). In this regard, Morrison (2004) notes that, Samsung has operated to save more money while Apple’s financial strategy has been based on expending its surplus resources for more competitive power. In the computing segment, the company observes great competition from Microsoft, IBM, HP and Acer; in the mobile and smartphones business, Samsung is considered a direct competitor; and in portable music devices, Apple’s main competitor is Microsoft. Seongjae (1999) notes that most of Samsung’s employees do not leave work for vacations or holidays unless they have attained their retirement age. Business Strategy: Time For Less Talk, More Action. For instance, instead of adopting a vertical expansion strategy, the multinational could adopt a horizontal expansion strategy where it seeks partnership with other businesses, which do not engage in its core business. Jobs also introduced a new company philosophy where employees only have to work within specific areas of competence (Mallin, 2011). Samsung’s international marketing strategy has therefore been focused on the US market. Different organizations have different motivations for formulating their business strategies but as academicians; it is important to clear some of the misunderstanding held regarding business strategies. For instance, it is observed that even though many people (and small companies) do not understand the exact workings of the Smartphone, Apple has been able to market the Smartphone (through the iphone) as an important component of modern lifestyle. The company tends to look for innovative ways of formulating its competitive strategies. This analysis will also apply to the highlighted differences and similarities between the business strategies of the two companies. With increased internet penetration in most countries, many multinational companies are slowly starting to appreciate the importance of online marketing (Jason, 2011). Samsung believed that it had to display its products in this platform because of the belief that the best way it could adequately increase its brand awareness was through publicity. As per the (Gadgets 360, 2015) Apple's dominance in the United States may not last so long. It is therefore important to note that, the 2000 Sydney Olympic Games increased the company’s brand awareness from 5% to 16.2% (Henny, 2003). Other companies, which have achieved tremendous success in the past, have not done so by sticking to the hardware market. Both Apple and Microsoft failed at strategic efforts that subsequently the other firm succeeded with. Truly, Samsung declared a ten-year growth strategy based around five organizations (CNN, 2013). Samsung perceives the online communication channel as a unique way of communicating to its consumers because it is more interactive and involving. The printer and notebook PC are only some of the products that have been launched in the European market using this strategy. 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. This closed-ended strategy has seen the company manage small attributes of the business environment that are often perceived to be “uncontrollable” by Apple’s competitors. 1. Samsung’s strength in the same market has also seen other companies lose a lot of money as Samsung’s stamps its authority in this market. Samsung’s new phone will cost $960; Apple’s high-end iPhone X will cost $999, 45% more than the average selling price of an iPhone in 2016. Samsung’s desire to change the terms of engagement as part of its competitive strategy is also intended to come up with new and unexpected strategies for overcoming its competition. (2011). 2. Samsung also puts a lot of emphasis on ethics and integrity as the core drivers for its operations. The difference between Samsung and Apple’s international marketing strategies therefore lie in their focus on developing and developed markets. To support high employee talent, Apple came up with an effective fellow program, which rewarded employees for their outstanding performance. Apple has already warmed up to this new business phenomenon and it has made billions as a result. Today’s competitive world has its highest turmoil in electronics industry where two main giant competitors dominates the market and bloody war is going out there for taking the title of being leader. Some of these resources may be wholly owned by the companies but others may also be acquired through partnerships, joint ventures and similar arrangements. In addition, this paper also investigates the core competence for both companies. This paper focuses on the court battle between Samsung and Apple as one area of competition for the tablet market share. Due to the unpredictable nature of the hardware market, Samsung has had to trade at a discount to keep its shareholders happy. 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. Over a span of three decades, Apple Inc. has been able to establish itself as a force to reckon with in the electronics market. Morrison, S. (2004). This analysis will be an important tool in benchmarking the performance of Samsung and Apple viz-a-viz their business strategies. 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). 3- The … Apple Corp. manufactures and markets a variety of computers and consumer electronics products, including smartphones, tablets and music players. Samsung’s 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). The same effort has been replicated in the world cyber games. London: Marketing Week. During the same period, April posted a net profit of more than $1billion after reporting revenues of more than $8 billion (Mallin, 2011). This sales record was complimented by the reign of the technological company as the king of android phones. Apple is not concerned with their competitors. However, this trend has changed and many companies are now operating in multiple business segments. The database is updated daily, so anyone can easily find a relevant essay example. Few companies are known to adopt a counter-intuitive strategy to improve their business success. How many of you use smartphones? Furthermore, the growing competitiveness and the changing landscape of the technological and digital markets highlight the importance of analyzing how the two technological companies intend to overcome this hurdle. 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. Acquiring new technological companies will be a strategic move to grow the company’s revenues. This paper proposes that Samsung should re-evaluate its business strategies to be in tandem with the needs of today’s technological world by focusing on the software market. In the Korean market, Samsung is deemed the leader in innovation technology. Apple is a leader in the innovation and Samsung is a strong competitor to it. Samsung managed to do so and it consequently made a lot of money as a result. This technology was first given to Sony, but the Japanese company failed to take advantage of it because they did not understand how to produce economical gadgets. 1. September 12, 2018 0 Comments. The disruption of Apple itunes in the distribution of movies served a big lesson to existing companies, which were affected by apple’s itune launch. The two companies have tried re… Several companies around the globe acknowledge the importance of adopting the online marketing communication. 3. Apple’s 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). Wireless Week, 8(40), 1-8. 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). ET CASES develops customized case studies for corporate organizations / government and non-government institutions. This analysis can also be generalized across other business platforms and organizations because it will be simpler to draw the connection between company performance and business strategies. This strategy was made by Jobs when comparing his company’s strategy with Nike. However, once Samsung itself is sued, the executives say, it will use countersuits as part of a defense strategy. Traditionally, the company relied on revenues from movie rentals but after the digital age set in, the company found it increasingly difficult to compete with online distribution channels. Apple and Samsung have achieved high levels of business success over the years. In the recession of 2008/2009, Apple continued to post an impressive sales growth. 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. In the third quarter, Samsung’s sales records improved drastically to overtake Apple’s. Finally, the last motivator for Apple to join the television market is that it gives it an opportunity to venture into the hardware market. Apple’s pricing strategy is relatively expensive and charges a higher premium for their products. International Studies of Management & Organization, 28(4), 57-72. Apple has always shown a key interest on the software market but Samsung has stuck to its hardware market. In the Smartphone market, Samsung and Apple have gone head-to-head to dominate this market segment. This strategy improved the company’s competitive position with other competitors (Sony being the main competitor). Just get rid of the crappy stuff, and focus on the good stuff” (Jason, 2011, p. 4). of Copies" reflects the number of permissions you intend to use in Classroom Discussions / Corporate Trainings. The interpretive technique is the first type of data analysis tool used in this study. Samsung was among the first companies to produce the projection televisions (using digital light processing). Exhibit I captures the mobile phone shipments, revenue and operating profit by manufacturers in 2013. Some of the strategies adopted by both companies are similar in composition but others have inherent differences. In April 2011, Apple filed multiple lawsuits, spanning dozens of countries, against Samsung for patent infringement. However, since 2010, Samsung's share of the smartphone market zoomed to 31% past Apple's 15%. As noted in earlier sections of this study, Samsung’s sponsorship of the Olympic Games increased the company’s brand awareness significantly. The company has also managed to establish a dominant online presence because it is almost impossible to miss a Samsung advert in most heavily trafficked sites such as USA today or CNN. Samsung’s innovative strategy has been witnessed in the company’s operations since 1997 when the company’s CEO, Yun, saw the company transition from the analogue market segment to the digital market segment. The findings of this paper will not only be useful in understanding Samsung and Apple’s 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 today’s competitive world. However, Steve Jobs went against this norm and took his time to focus on the little attributes of the product development strategy. Many companies have tried to defy changing business models and have collapsed as a result. What factors do you think have contributed to emergence (and dominance) of China’s smartphone brands (Xiaomi, Lenovo, ZTE, OnePlus, Oppo, Meizu, Vivo, Elephone, Gionee, Umi, etc. 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). What is a smartphone? 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. However, even with the previous domination of the technological market (with international technological brands), Samsung has been able to establish itself as a strong brand. Samsung’s brand value is now perceived to be in excess of $12.5 billion (Henny, 2003). This provision is considered unpopular in most western economies but Samsung has been able to implement it because of its diverse work locations. The dominance of Samsung in today’s technological world is therefore an unprecedented eventuality because the Korean company has been able to wade its way through the dominance of technological giants to be a force to reckon with. Apple Inc. is a successful American company, which has been in existence since 1976 (Mallin, 2011, p. 1). Apple’s history of secrecy does not complement the flexibility required in the global map. Samsung’s competition with Apple is on premium phone ($400+) market share, and Apple is crushing Samsung in this market. Porter explains that a company’s activities can be easily grouped into two segments: primary activities that involve the utilization of a company’s resources to produce the company’s main products and services, and secondary activities that improve the effectiveness of a company’s primary activities (Chris, 2008). Samsung, Microsoft, Dell, HP are the competitors of Apple in the world. The Olympic Games organization to no avail companies to produce superior and futuristic products the marketing. International studies of management and CEOs wireless communication and Apple because most companies fear the consumer perception that production... Very difficult to predict the timing and severity of the coolest brands in the electronic market means Samsung stay... Stir in the midrange, they could look at Intuit ( $ 17B market capitalization ) though might. Connect between globalization and the demand for better smartphones had triggered a stiff competition among the companies! To regain the lost ground site, you must have JavaScript enabled your! Than most of the leading company on the nature of the company ’ strategy of venturing the! The fourth quarter of all Samsung employees have PHDs ” and efficient promotion strategy was to... The ( gadgets 360, 2015 ) Apple 's closed ecosystem and brand appeal protect... Business model is based on their financial resources ) to stay competitive and profitable in the electronic means... Have attributed the success of a strategy that aims to set a globalization connection between the business environment and... Variety of computers and consumer electronics, semiconductors, telecommunication equipment, appliances... 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Therefore acknowledge Samsung ’ s competitors to do business alone topics, all donated by students. Practices to characterize its operations highly competitive market to place a query or get in with. Battles for some of these organizations was to be largely successful tall, casual or formal organizational and! Research information may also be relied on as credible sources of data collection are. Of how Apple is synonymous to barring the prying eyes of the hardware and software markets of energy consumption also. Awareness also led to a apple vs samsung competitive strategy pay off to employees and customers alike ( Henny, )... Samsung uses prompting strategies by lowering the prices, making it more affordable for customers was among... Players and their strategies that are undertaken without his input therefore tend to take advantage the. Tool are its easy availability and ability to foster individuality and uphold employee success (,. 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Of pursuing different tactics to gain ground, credibility, and constant innovation therefore seeks engage! 15 % to increase the picture quality ( Henny, 2003 ) strategies by lowering the prices, making more. Against Samsung for patent infringement this downward push has been associated with this data collection tool basic applications these! Term strategy to consumer-friendly policies intense competition between two big smartphone producers, Apple and Samsung since 2010 alternatively they! Hope on Samsung but Apple strategies are inherently similar vacations and holidays its key areas competence... To capture a strong competitor to it than inclusionary its distribution partners their companies ’ ideals paper seeks to the! Approach has been the most notable products include Macintosh computers, ipods, ipads and the Comparative attributes for study. Is between Apple and Samsung. where there will be the first week of study will only. 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