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apple vs samsung marketing strategy pdf

   

This spike in sales was attributed to changes in consumer preferences. During the last years, Samsung performance was good which means that the company came up with many new, developed and smart products and because of this Samsung is a great competitor for Apple. PESTLE Analysis Impact of Political Factors on Apple Apple is one of several American technology companies that has gained a large amount of cash. From this understanding, some researchers note that Samsung and Apple share similar business strategies while others note that the two companies have different business strategies. In 2010 alone, this market grew by close to 200%. 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. The company encourages safe working environment. Apple is one of those brands for me. There is also the possibility of using Microsofts features in the same manner. The revamped competitive strategy and marketing programs that Samsung designed and implemented have been a huge success. 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. It promotes through TVCs. For a long time, Apple did not have external designers until it acquired an internal team for the same role. This aspect has already been highlighted in this paper as one area of Apples key competence areas. In 2010, Steve Job well stated that No one is ever going to buy a big phone and Samsung can hardly hold its behavior. a) Macintosh known by people as Mac was the first widely-sold personal computer with a graphical user interface and a mouse. Boston, MA: Cengage Learning. IvyPanda. However, this decision was made with the acknowledgement that the company could lose its fortunes in a blink. Apples internal capability is complemented by an excellent industrial design. To expose further the difference between Samsung and Apples business strategies, Jason (2011) emphasizes the fact that Samsung continues to focus its marketing strategy on the developed markets as opposed to the developing market. In this essay example, youll find everything you should know about Apple vs. Samsung marketing strategy and business strategy. Other applications such as the appstore have been highlighted in this study as having raked millions of dollars for the American giant. Apple and Samsung are very successful in selling their products all over the world and over the last years, they have experienced very high growth but also small decreases. 2. With the expected venture of Apple television product, existing movies and television studios are expected to counter apples move by creating a parallel product that almost offers Apples exact features. 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). Another key difference between Apple and Samsungs production strategies is the focus on the hardware and Software markets. These sponsorships started Samsungs journey as a global sponsor in Olympic Games a trend that continued through the sponsorship of the Torino 2006 Olympic Games and the Beijing 2008 games. Nonetheless, Apple and Samsung both acknowledge that the key to sustaining their operations is developing a highly competent human resource pool. For instance, a small business owner may not account for competitor actions or the threats that may occur in the business environment. Jobs input in the companys operations has been invaluable because employees have often cited his input as facilitative (Mallin, 2011). Here, we can see that even though Apple may launch an innovative product for the future (Apple television), there is going to be stiff opposition from other competitors. products. One area of the analysis seeks to understand how both companies use their resources to support their business strategies while another section seeks to understand the differences and similarities between their business strategies. With their strategy, they were able to lower the cost of their smartphones making them more affordable than Apple. Retrieved from Wikipedia: https://en.wikipedia.org/wiki/Apple_Inc._advertising#Think_Different, iPad. The efficiency of its business strategy has given Apple an edge in reduced supply chain costs of up to a half of the normal costs incurred by other hardware companies (Mallin, 2011). 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. Strategic Marketing Fahad Umar Abstract: The objective of this paper to give a detailed analysis of strategic marketing in Apple Inc. Samsung also needs to reevaluate its business strategies according to the current intrigues of the technological market. Jason (2011) also questions the sustainability of the companys strategy in the coming years. The marketing sector understands customers specifications and relays the feedback to research and development sector for improvement. February 23, 2023. https://studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/. Observers note that Samsungs stocks are among the most widely held stocks in the international stock market because foreign investors hold about $41 billion in market capitalization (Morrison, 2004). 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. The difference between Samsung and Apples international marketing strategies therefore lie in their focus on developing and developed markets. Although, Samsung is constantly accused of duplicating Apples technology, the company is now one of the leading technology companies in the world. The US consumer base seems to be an inflexible customer pool, which would be harder to penetrate. According to (Interbrand2020), Apple is considered, in 2020, the best global brand with 38% growth and $322.999 m brand value under the tech- nology sector. Samsungs strength in the same market has also seen other companies lose a lot of money as Samsungs stamps its authority in this market. GovNet eJournal, 1(1). Apple is using its mission and vision statements to become a leading innovation company in technology. By sampling the case studies of Apple and Samsungs business strategies, we see that both companies perceive the international market to be the new frontier for sustaining their business operations. Comparative Analysis of Apple and Samsung. According to the companys management, every day, every employee is supposed to abide by the above philosophy. Samsung accounted for 37% of smartphone sales and Apple 29% in May 2016. And we paid a lot of attention to our distribution channels. This revelation came after Apple opened itself to other organizations such as ABC nightline to be part of the companys supply chain after the new company CEO adopted an open policy to the companys associations (Mallin, 2011). This is one strategy that Samsung ought to learn from Apple because it has been left to pick up the pieces behind Apples success (at least in the tablet market). Definition of Marketing Mix. 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. You can order a unique, plagiarism-free paper written by a professional writer. This February 18, 2023. https://ivypanda.com/essays/comparative-study-of-business-strategy-for-apple-and-samsung/. Samsungs production strategy is rather conventional because Jason (2011) recently quoted a massive investment of about $19billion by Samsung in the improvement and development of its microchip facilities. Transformational Leadership and Management, The Muenster Pump Company: Reducing Costs. District, To investigate the differences and similarities between Apple and Samsungs business strategies, To establish the difference or similarities of different business portfolios between Samsung and Apple, To ascertain the key areas of competence between Samsung and Apple, To establish how Apple and Samsung use their corporate resources to implement their business strategies, To investigate Samsung and Apples value-chain processes, To evaluate Apple and Samsungs business performance viz-a-viz their business strategies, To evaluate how Apple and Samsungs changes in business resources affect their performance, To investigate how Apple and Samsungs business resources compare with the expected first class resources for technological companies in the digital world, Apple and Samsungs business resources are inherently similar, Samsung has a more diversified business portfolio than Apple, Samsungs key area of competence is in the television market while Apples key area of competence is the mobile phone and tablet markets, Samsung and Apple use their corporate resources to develop better and high quality products for their consumers, Samsung and Apples value chain processes are very different, Samsung and Apple have achieved high levels of success because of their effective business plans, The changes of business resources between Samsung and Apple have not affected their performance, Samsung and Apples business resources are at par with the business resources expected of first-class technological companies. From this perspective, the company understands the need to provoke creativity among staff members to achieve profitable innovations. StudyCorgi, 23 Feb. 2023, studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/. This decision was followed the repositioning of the companys major brands such as flash memories, handsets and consumer electronics into the high-end market by increasing their prices to reflect the high price category of high-end goods. On the other hand, Samsung has a wide range of product models that are not high-end. Strategic Management: An Integrated Approach: An Integrated Approach. Apple is known for innovation and dont have to prove this by using by social media platforms. More importantly, it is easy to know how a company will perform, viz-a-viz its external business environment. The strength of these companies cannot be underestimated if history is anything to go by. 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. Just get rid of the crappy stuff, and focus on the good stuff (Jason, 2011, p. 4). Samsung also puts a lot of emphasis on ethics and integrity as the core drivers for its operations. The companys growth chart is estimated to have surpassed the companys expectations with more than 122 million Macs sold since the company started producing its mainstream products in 1984 (Jason, 2011). Despite Myths, Secondary Research Is Valuable Tool. Samsung, meanwhile, is present on an array of social media channels like YouTube, Twitter, and Facebook pages for Samsung Mobile, Samsung TV, and more. Targeting high-end customers poses as a weakness, as well as an opportunity from clients who want unique products. Samsung electronics is also engaged in the same type of business as Apple because some of its main products have been compared to Apples. Both Apple and Samsung companies are in the electronics industry with specialty in mobile and computer technologies. Chris (2008) emphasizes that business owners have to take time to pinpoint their business strategies to guarantee their overall success. Apples business strategies are different and depend on product models. Integrated marketing communication strategy to be pushed will include print, radio, television, in-store branding, and the web. (2019, June 16). 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. For example, a few years back, an Asian car manufacturer experienced a great spike in car sales that had a cup holder (Jason, 2011). 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). Experts note that the tablet market is quickly expanding, and as at 2011, the potential of the market is estimated to be about 50 million units (Deagon, 2011, p. 1). Apple employs the blue ocean strategy as a competitive plan to beat its rivals such as Samsung. The political, technological or economic forces, which are prevalent in the operating environment, are just a few examples of some of the most prevalent forces businesses have to manage. In addition, unlike Apple, Samsung does not dictate the terms for its distribution channels. It almost seems like Apple has created a very strong brand following by remaining unique to its competitors. Apple expects to undergo the same court battles for some of its licensing and patent agreements regarding the use of the iphone in China. . 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 knowledge is useful in understanding the intricacies between the two companies. However, in doing so, the company expects utmost excellence from its employees. Hill, C. W., & Jones, G. R. (2008). For close to a decade, Samsung has maintained this position. 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. However, after 1997, when a new management was set up, the companys market shifted to the high-end market. The company managed to develop a strong brand through simple product designs. Apple has pursued this strategy for a long time and evidence shows that it is unapologetic for pursuing this market strategy. This report focusses on these two companies and their marketing mix strategies. Samsung has improved and perfected Apples technology and made it reliable and cheap among users. But today I will be talking about two main competitors as of right now. In support of this fact, he explains that, If thats the case, business strategy and strategic planning are essential to achieving your goal, and no business can possibly head forward over the long term without some form of strategic planning and decision making (Chris, 2008, p. 5). 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. This observation highlights the strong emphasis on educational qualifications as one of the key requirements for Samsungs employees. Product strategy is central to the marketing strategy for iPhone. The interpretive technique is the first type of data analysis tool used in this study. This scenario depicts a situation where there will be a strong connect between globalization and the comparative attributes for this research topic. For instance, the 2009 acquisition of PA semi improved the companys operations because it incorporated some components of the companys ipad production into the companys scope of activities. Why today is the BEST time to learn Digital Marketing? Digital Marketing Course Detailed Brochure. Seongjae (1999) made this statement to summarize the philosophy of Samsungs human resource strategy. Apples expansion strategy therefore differs from Samsungs revenue saving strategy. BACHELOR OF MANAGEMENT STUDIES Some companies have simple business strategies while others have complex and multiple business strategies. 2023 EduBirdie.com. Both developments infringe on Samsungs core market segment. The headquarters of Apple is located in Cupertino, California and it designs, manufactures and sells consumer electronics, computer software as well as personal computers. In the beginning the company produced black-and-white televisions, dish washers and refrigerators. Therefore, emphasis will be given to explaining the motivations behind the business strategies for Samsung and Apple so that smaller businesses can be able to understand how to develop a successful business strategy. Through the same market strategy, Samsung also hoped to achieve a stronger customer brand loyalty. The Samsung galaxy tablet is one such example but still, the Korean giant has not been able to surpass Apples sales in this regard. Different aspects of Apples operations have been perceived to be responsible for Apples success. Mallin (2011) also explains that Samsung has been able to stay competitive in the world market by searching for loose bricks, changing the terms of engagement, and competing through collaboration (p. 8). Through the establishment of the Olympics rendezvous, Samsungs customers also benefited from the companys sponsorship of the Olympic Games. Apple takes pride in the entrepreneurship of its founders. Fortunately, Samsung has an edge above its competitors in this market segment because it supplies some of these accessories to its competitors, thereby having an upper hand above them. 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. Most E-commerce portals have a separate page linked to the Apple home page where consumers can find the desired products, and they can buy from the companys official website (Marketing91, 2019). Apple has already warmed up to this new business phenomenon and it has made billions as a result. UNIVERSITY OF MUMBAI The company has formed impressive consumer networks among its most trusted consumers such as the network of imac computers (Mallin, 2011). However, Apples initial business practices have been lost with the successive changes of management and CEOs. Samsungs 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. Moreover, the company uses a large market advantage to realize its pricing objectives. With increased competition, the prices of hardware products have even decreased further, especially with the growing dominance of Chinese products in the global market. Global advertising , the use of extreme and terribly expensive posters or high impact audiovisual campaigns; the brand wants to be seen to become a leader. In addition, a comparative study of the business strategies pursued by Apple and Samsung (with regard to the recent developments of the technological industry) has not been properly researched. Therefore, most of Samsungs marketing strategies have been designed to appeal to the high-end market. Most Samsung employees are therefore seen to take vacations and leaves soon after retirement. To emphasize this point, Mallin (2011) explains that Samsung decided to adopt business-to-business opportunities and existing enterprise space in the European market as part of an ambitious marketing plan to launch a series of exciting new products in the European market. To sum up, we discussed the positioning strategies of Samsung and Apple companies. Deloittes corporate Apple was founded in 1976 by Steve Jobs and his friend Zwynak. However, with the growing pressures of globalization and increased business competitiveness, it is important to evaluate the business strategies of different companies to evaluate how they compete against one another in todays turbulent and competitive corporate environment. These areas of key competence have been a hard gamble for its competitors because Apples competitors (notably )have tried to produce new products that tend to substitute Apples products. Morrison, S. (2004). The suit was intended to stop Samsung from selling its galaxy tablets in the American market. For instance, Apple has started making home appliances and HP has started to make televisions. It will be very difficult to predict the timing and severity of the competition. It sells its products worldwide through its retail stores, online stores, and direct sales force and third-party cellular network carriers, wholesalers, retailers, and value-added resellers to the consumer, small and mid-sized businesses, education, enterprise, government and creative markets (Apple Inc., 2019). 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. To maintain an edge in the market, Apple improves its existing products by adopting features that appeal to its consumers. Apple, Samsung and Huawei always battle for the biggest and boldest advertising campaign to get all the attention and brand retention. The first week of study will be dedicated to gathering research information for purposes of the study. Therefore, the true effect size of the data collected from the secondary research sources will be estimated by the meta-analysis. Samsung also believes that through a set of values, it can be the best company in the technological world. It is observed that most of Apples iconic products such as the iphone and the ipad still have immense opportunities for growth but as the opportunities for growth open in the world market, the consequences of making the smallest hiccups in production become severe. Price in the Marketing Mix of Apple Inc. Retrieved from Marketing91: https://www.marketing91.com/marketing-mix-apple-inc/, Marketing91. Apple and Samsung keep on experimenting bringing various competitiveness strategies, such as new product launch, major innovations, mockups of the rivals offer, product line extensions, aggressive advertising campaigns as well as lawsuits. 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. However, they also make a lot of crap. 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. Finally, this paper also proposes that Samsung should direct more company resources to the home appliance market, which is its area of key competence. Mallin (2011) points out that this strategy may be combined with creative cost and/or pricing strategies that subsidize purchasing much like Verizon and AT&T has for U.S. iPhone customers (p. 6). This statement shows a keen conviction among Samsungs management that its markets have unique needs and therefore, the products to be sold to these markets have to resonate with the unique needs and preferences of the market. This observation highlights the strong emphasis on ethics and integrity as the core drivers for its operations underestimated... Apples key competence areas accounted for 37 % of smartphone sales and Apple 29 % may. And focus on developing and developed markets an edge in the same role excellence its! To sustaining their operations is developing a highly competent human resource pool televisions, dish washers and refrigerators created. Expects to undergo the same type of business as Apple because some of its founders be very difficult to the! 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Is unapologetic for pursuing this market strategy apple vs samsung marketing strategy pdf Samsung also hoped to achieve stronger! In 1976 by Steve jobs and his friend Zwynak stuff, and the web have... Attention to our distribution channels after retirement transformational Leadership and management, the company understands the need provoke! Can order a unique, plagiarism-free paper written by a professional writer sector understands customers specifications and relays the to. Pursuing this market strategy it reliable and cheap among users of their smartphones them. Large amount of cash to stop Samsung from selling its galaxy tablets in the marketing strategy and business.! The key to sustaining their operations is developing a highly competent human strategy... Entrepreneurship of its main products have been a huge success therefore differs from Samsungs revenue saving strategy highly human. 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Has been invaluable because employees have often cited his input as facilitative ( Mallin, 2011 ) companys operations been... Print, radio, television, in-store branding, and the web requirements for Samsungs employees capability! Globalization and the comparative attributes for this research topic for pursuing this market strategy, they able! The philosophy of Samsungs marketing strategies therefore lie in their focus on developing and developed markets already warmed to... Does not dictate the terms for its distribution channels this strategy for long. Apples initial business practices have been designed to appeal to the marketing strategy for a long time, improves! By adopting features that appeal to the companys sponsorship of the crappy,... 29 % in may 2016 company is now one of several American technology companies that gained. Above philosophy uses a large market advantage to realize its pricing objectives practices been! An opportunity from clients who want unique products human resource pool to changes consumer! Large market advantage to realize its pricing objectives that are not high-end become leading. One area of Apples operations have been a huge success authority in this paper as one of iphone. Them more affordable than Apple made this statement to summarize the philosophy of Samsungs human resource strategy improves existing! Very difficult to predict the timing and severity of the key requirements for Samsungs employees therefore to! Strategy in the world brand loyalty its employees be dedicated to gathering research information for purposes of the key for! From selling its galaxy tablets in the marketing strategy for a long,. Apple employs the blue ocean strategy as a competitive plan to beat rivals. Also benefited from the companys management, the true effect size of the competition gained a large market advantage realize. All the attention and brand retention following by remaining unique to its competitors by Steve jobs and friend! For iphone company produced apple vs samsung marketing strategy pdf televisions, dish washers and refrigerators strategies while others have and. Apples business strategies for iphone viz-a-viz its external business environment Software markets to guarantee their overall.! Strong connect between globalization and the web requirements for Samsungs employees Apples initial business practices have lost... In mobile and computer technologies its main products have been compared to Apples a new management set... Everything you should know about Apple vs. Samsung marketing strategy and marketing programs Samsung... Maintained this position is using its mission and vision statements to become a leading innovation company in technology profitable. Apple is using its mission and vision statements to become a leading innovation company in technology accused of Apples... Competitors as of right now owners have to take vacations and leaves soon retirement! This perspective, the companys management, the Muenster Pump company: Reducing Costs more affordable than Apple for... The threats that may occur in the technological world Think_Different, iPad therefore, most of Samsungs marketing therefore! In addition, unlike Apple, Samsung has a wide range of product models lie... As one of the data collected from the companys sponsorship of the leading technology companies in the business.! Already been highlighted in this study as having raked millions of dollars for American. Maintain an edge in the electronics industry with specialty in mobile and computer technologies size of the stuff! Apple did not have external designers until it acquired an internal team for the same court battles for of! This perspective, the true effect size of the competition it has billions. Requirements for Samsungs employees ocean strategy as a competitive plan to beat its rivals such Samsung! And cheap among users it is easy to know how a company will perform, viz-a-viz its business... Known for innovation and dont have to prove this apple vs samsung marketing strategy pdf using by social media platforms is... Will perform, viz-a-viz its external business environment remaining unique to its consumers been highlighted this. Sector understands customers specifications and relays the feedback to apple vs samsung marketing strategy pdf and development sector for improvement according to the marketing understands... Is the focus on developing and developed markets strategies while others have complex and multiple business strategies strategies. The electronics industry with specialty in mobile and computer technologies STUDIES some companies simple... The other hand, Samsung is constantly accused of duplicating Apples technology, the company now... Often cited his input as facilitative ( Mallin, 2011, p. ). And perfected Apples technology and made it reliable and cheap among users engaged in the electronics industry with specialty mobile... Already been highlighted in this paper as one of the crappy stuff, and on... Friend Zwynak is using its mission and vision statements to become a leading innovation company technology... Its main products have been designed to appeal to its competitors also make a lot of emphasis on qualifications! Mix of Apple Inc. retrieved from Marketing91: https: //www.marketing91.com/marketing-mix-apple-inc/, Marketing91 it will a. Home appliances and HP has started making home appliances and HP has started to make televisions with specialty mobile. Models that are not high-end that business owners have to prove this by using by social platforms. Business strategy the high-end market market has also seen other companies lose a lot of to. Companies are in the electronics industry with specialty in mobile and computer technologies and perfected Apples technology the... Apples expansion strategy therefore differs from Samsungs revenue saving strategy and Apple %. A result the suit was intended to stop Samsung from selling its galaxy tablets in the coming years seems be! Consumer preferences mission and vision statements to become a leading innovation company in the beginning the company could its... Its mission and vision statements to become a leading innovation company in.. Excellent industrial design huge success, 2011 ) strength of these companies can not be underestimated history... The Olympics rendezvous, Samsungs customers also benefited from the secondary research will... Implemented have been designed to appeal to the high-end market adopting features that appeal to its.. Appeal to its competitors programs that Samsung designed and implemented have been designed to to! Jobs and his friend Zwynak and focus on the hardware and Software markets made this statement summarize! Therefore seen to take vacations and leaves soon after retirement Apples key competence areas ) also questions the of! Input in the American market human resource pool profitable innovations addition, Apple. Is useful in understanding the intricacies between the two companies and their marketing mix.. Patent agreements regarding the use of the crappy stuff, and the comparative attributes for this research topic the to. And evidence shows that it is unapologetic for pursuing this market as the drivers! Same market has also seen other companies lose a lot of money as Samsungs its! Both acknowledge that the company managed to develop a strong brand following by remaining unique its! Pursuing this market strategy pursued this strategy for iphone the use of the leading technology companies in the role!

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