There are also more concerns regarding the intrusion into different cultures around the world because most cultures tend to be exclusionary rather than inclusionary. Free access to premium services like Tuneln, Mubi and more. So they lay back.. c) Retail the trade partners sell through individual handpicked retailers who are authorized to sell Apple products. Most of Apples ads pop up during a product launch, where they show what the product does, and therefore the media keeps running the print very often on the distribution channels (television, social media, billboards, etc.) International Studies of Management & Organization, 28(4), 57-72. On the other hand, Samsung has a wide range of product models that are not high-end. The generalizability of the research information may also be limited to a specific component of the businesses in study. VARbusiness, 21(3), 3-6. The infighting saw Jobs focus on the Macintosh computers, which became one of Apples earliest successes. Samsungs brand value is now perceived to be in excess of $12.5 billion (Henny, 2003). Do not sell or share my personal information, 1. The slogan It does not take a genius was clearly referring to the Genius , experts of the Apple Store. 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. February 18, 2023. https://ivypanda.com/essays/comparative-study-of-business-strategy-for-apple-and-samsung/. In the second quarter of 2011, the competition between the two companies became stiffer as Apple registered a sales record of 20.34 million smart phones while Samsung posted a sales record of 19 million smart phones (within the same period) (Deagon, 2011, p. 1). It appears that you have an ad-blocker running. This explains why Apple now considers strategic outsourcing a fundamental principle of achieving efficiency. Business actions are always strategized because they are designed to achieve a specific goal (Chris, 2008). The advertisement called as Samsung Cares has been a hit in social media, with the YouTube video reaping more than 64 million views currently. Samsungs focus is to close-in on its competitors such as Sony, and Philips, which have consistently dominated the home appliance market. Observers associate Apples success to its ability to foster individuality and uphold employee success (Mallin, 2011). Internal and external analysis was conducted . The above statement was made in reference to the direction pursued by chief executive officers (CEOs) when pursuing different company strategies. The disruption of Apple itunes in the distribution of movies served a big lesson to existing companies, which were affected by apples itune launch. Usually, experts explain that an efficient and effective business strategy is the most appropriate type of business strategy for a company (Chris, 2008, p. 1). The two companies have found themselves engaged in legal battles. For years, Apple preferred vertical integration which limited its capability to collaborate with other business partners and achieve flexibility. The Apple television is one such product, which has caused a lot of stir in the technological world. 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 company perceived this strategy as a tool to breed the best human power possible within every company department. (2023) 'Apple vs. Samsung: Marketing Strategy & Business Strategy'. 1 Apple Park Way Cupertino, California, U.S. Computer hardware, Computer software, Apple and Samsungs marketing strategies are both fixed on the high-end market where their products are designed to sell at a premium, due to superior product quality. Therefore, Samsung is superior in terms of organizational design. Apples domestic and global environmental policy is evaluated using a Global Reporting Initiative (GRI) and Sustainability Reporting Guidelines (G3). For instance, some price strategies used by Samsung are Skimming price and Competitive price (Marketing91, 2019). IvyPanda, 18 Feb. 2023, ivypanda.com/essays/comparative-study-of-business-strategy-for-apple-and-samsung/. Like other multinational companies around the world, Apple has forged a close working relationship with China. 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). Currently Samsungs strategy focuses on producing high-end goods, which are designed to appeal to the high-end market segment. A positive brand image (characterized by improved quality and better pricing) works for the company and consumers alike because the company enjoys improved profitability while the consumers enjoy improved product quality. As a result, the unit sales grew to $119 billion by 2009, and with . Apple spends just 0.6%, and General Motors 3.5%. Apples success during this period was evident in its sudden rise of stock prices. Personally, I like apple products because they are easier to use and are less Executive Summary Apple is an American global innovation organization, headquartered in Cupertino, California, which designs, builds and markets mobile phones, hardware, computer programming, and online administration. However, many researchers attribute his input to Apples human resource pool as mainly being focused on developing and retaining the best human capital (Jason, 2011). Product is the main or a vital factor about Apple's marketing strategy. Henny (2003) explains that, Samsung, an official sponsor in wireless communication equipment presented the Wireless Olympic Works (WOW), a communications system to support and guarantee the smooth and efficient running of the event (p. 7). Create a community of customers 5. 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. Boston, MA: Cengage Learning. For example, Samsung has consistently stuck to the manufacturing industry, especially after the success of the microchip market segment. As another competitive strategy for its business, Samsung has also pursued collaboration. Because Apple Inc., has several products on sale I chose to talk about only 3 products (Mac, iPhone, and iPad) which are the best sold products of Apple. <>>> The strong brand loyalty among Apples consumers was however built naturally due to impressive product quality. The 90s period also marked an ear of alliances between Apple and other technological companies such as IBM and Motorola (Mallin, 2011). Samsung also likes to use many different varieties of prices and pricing for their products that they are selling and they also sell many different types of products with different types of prices while apple sells everything for a more expensive price. This approach is seen to be successful in the sponsorship of sporting events such as the world Olympics. Click here to review the details. 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. IvyPanda. Therefore, it will be easier for people to find a direct correlation between Apple and Samsungs business strategies and their overall corporate performance. Other hardware manufacturers have tried to adopt the same strategy to no avail. The external business environment is quickly changing (especially in todays fast-paced world) and therefore, it is important for businesses to go back to the drawing board and ask themselves important questions regarding how they intend to manage external pressures of operation. External financiers such as banks and other lending institutions often require such businesses to review their business strategies and develop new plans of action that will improve the companys performance. Rmon Elsten, Vice-President of the Swiss Contact Center Association, Watch DSIM Trainees Celebrating Last Day of Batch. According to Haslam et al. Activate your 30 day free trialto unlock unlimited reading. However, unlike his former boss, Tim Cook, the new company CEO, has never failed to discuss the future of Apples business strategy in recent times. You are free to use it for research and reference purposes in order to write your own paper; however, you The company uses anti-collusion and anti-corruption policies (Kim, 2007). This campaign itself became a Guinness World Book entry with the record of maximum number of artists working on a single art work. Publicity is considered an effective way of marketing because it is known to be highly effective. 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. For instance, it should be understood that whatever action taken by a business is done within the confines of a strategy. The market for NAND flash memory has grown over the past years, thereby increasing Samsungs profitability over the years. What industry is Apple and Samsung in? Here, the computation of the findings and the data analysis process will be done. Samsung has blown past Micron Technology (MU), Infineon Technologies (IFX), and Hynix Semiconductor in dynamic random-access memory (DRAM) chips used in all PCs and is gaining on Intel (INTC) in the market for flash memory, used in digital cameras, music players, and handsets (Jason, 2011, p. 13). Different aspects of Apples operations have been perceived to be responsible for Apples success. Price in the Marketing mix of Apple Inc. Retrieved from Marketing91: https://www.marketing91.com/marketing-mix-apple-inc/, Marketing91. 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. 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). As noted in earlier sections of this study, Samsungs sponsorship of the Olympic Games increased the companys brand awareness significantly. By whitelisting SlideShare on your ad-blocker, you are supporting our community of content creators. Nonetheless, it is established that Samsung and Apple command a huge market in the tablet and Smartphone markets. Consequently, Apples shares and stocks depreciated. The company encourages safe working environment. The marketing mix strategic of Apple and Samsung is very well-thought-out because they want to keep and attract as many as possible customers. About the same time as the launch of the icloud, Apple had already gained reputation as a very efficient company with a strong foothold on its supply chain. For instance, if Apple were to acquire a large financial firm, it would boost its business competence. Los Angeles: Investors Business Daily. PESTLE Analysis Impact of Political Factors on Apple Apple is one of several American technology companies that has gained a large amount of cash. This sales record was complimented by the reign of the technological company as the king of android phones. Acquiring new technological companies will be a strategic move to grow the companys revenues. Its a brand that, everyone may want, but not everyone can afford. However, Apples initial business practices have been lost with the successive changes of management and CEOs. Primary research would however not contain this bias. The strength of these companies cannot be underestimated if history is anything to go by. 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. Therefore, Samsung strives to provide all its employees with the right opportunities and resources to achieve their full potential. Some companies have simple business strategies while others have complex and multiple business strategies. With a wide range, Samsung devices are more attractive to techies attracted by open source, easy customization of mobile, innovative features and technical capabilities. There are differences between these two brands as they adopt several techniques to reach the audience in their market effectively. Apple's business strategies are different and depend on product models. In addition, Jason (2011) explains that, Besides dominating DRAM chips, Samsung leads in static random access memory and controls 55% of the $2 billion market for NAND flash memory, a technology mainly used in removable cards that store large music and color-image files (p. 4). Recently, the companys CEO stated that if the company exits the manufacturing industry, it is going to lose (Mallin, 2011, p. 5). For close to a decade, Samsung has maintained this position. Moreover, the market is still growing. The internal industrial design has a competent team and outsourced production. Apples plan to increase its production capacity to suit the growing global demand for its products highlights the existing production capacities in China. We made sure we used the high-end channels(Henny, 2003, p. 8). 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. Planning According to Theo Himamm, Planning Apple Inc. established in April 1976 by its founder Steve Jobs with an aim to produce and sell electronic devices (including computers, laptops, phones & tablets) they have extended their services to both consumers and companies. Through the meta-analysis, it is equally easy to derive the statistical testing for all the factors involved in the progress of the secondary researches (highlighted in the secondary research sources). Apples marketing sector is instrumental in finding a target market that refers high-end products. Comparative Analysis of Apple and Samsung. All rights reserved, Apple's Organizational Culture And Structure, Corporate Social Responsibility In Apple, Volkswagen And British Airways, Apple Company: Planning, Organizing, Leading And Controlling, Apple versus Samsung: Design Patent Litigation, Advantages And Disadvantages Of Apple Supply Chain, Apple: Supply Chain Management Issues And Approaches To Its Improvement. Apple is using publicity for free and yet powerful way to interact with customers. However, the company appoints a brand manager who heads the innovation and development of a product model. In an airport, iPhone users find themselves back to the walls, forced to connect their mobiles whose battery is emptying too quickly. Samsungs strength in the same market has also seen other companies lose a lot of money as Samsungs stamps its authority in this market. The database is updated daily, so anyone can easily find a relevant essay example. This paper focuses on the court battle between Samsung and Apple as one area of competition for the tablet market share. Apple has already warmed up to this new business phenomenon and it has made billions as a result. Will follow a series of pungent attacks still based on the comparison between the technical capabilities of Apple and Samsung products. The nature of the research topic is also too complex to be answered by a yes or no response and therefore the use of the qualitative research design will be able to expose the underlying dynamics of the research topic. 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. Apple v s Samsung leader of technology and marketing. Its consistent focus on the hardware market may prove to be disastrous in the long-term because it is a very risky gamble. The belief that Samsung will stand to remain competitive in the future is also expressed by Mallin (2011) who explains that, prior to Samsungs entry into the technological market, US, Europe and Japan had dominated this market. The product became actually popular among users, having large and multi-touch user interface. a) Elegant promotions Apple makes very simple promotions and most of their print and creative ads are done with a white and stylish background (Marketing91, 2019). Certain movie multinationals such as Warner Bros have insisted on using the high definition DVDs but it still remains to be established where other companies will fall. It is still not clear where Cooks strategy will land the company but there is no doubt that Apples labs are quickly playing by Cooks strategies. Long leader in the smartphone market since the iPhone, Apple has been dethroned by Samsung. 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