Therefore, meaningful research can still be obtained with a small case study or a collection of relevant cases. Apple has a strange strategy when it comes to brand promotion. (2019, March 27). products. Here, Samsung branded most of the sporting equipments used in the games and facilitated the use of all communication equipments in the 2002 Olympic games (Henny, 2003). 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. Clipping is a handy way to collect important slides you want to go back to later. For instance, it should be understood that whatever action taken by a business is done within the confines of a strategy. Considering the belief that software is the future for technological companies, many observers say that Samsung is taking a huge gamble by sticking to its hardware market (Mallin, 2011, p. 5). Apples comeback to profitability occurred in the 1998-2005 period when Apple developed new product lines such as imovie, and new operating systems for its Macintosh computers. In addition, the company derives strength from a large pool of competent engineers who get support from an aggressive research and design personnel. If there is one constant attribute in Apples business strategy is that they have successfully managed to control all the unpredictable elements concerning different components of their business strategy. Finally, this aspect of business comparison highlights how the performances of both companies have changed over the years and how they fair with the performance of other technological giants in the same industry. This In early 2000s, the companys management decided to downsize its workforce by about 24,000 employees (Mallin, 2011). Apple Marketing Strategy: 8 Precious Lessons to Learn 1. The overall sale in the NAND flash memory market is estimated at $7 billion and Samsung reaps heavily from this market (Jason, 2011). The global value of Samsung's brand increased by more than 200% from 2003 to 2008, and it took over Sony as the most valuable consumer-electronics brand. In 2010 alone, this market grew by close to 200%. To ensure that cultural diversity is appreciated, Samsung management ensures that female workers account for at least 35% (Dippel Jr, 2012). Both companies therefore strive to make innovative products the key driver to their production strategies. The strong brand following for Apples products has been highlighted in different media across the world. Here, the computation of the findings and the data analysis process will be done. Apple does not have the same level of online presence as Samsung and neither does it have the type of sponsorships Samsung enjoys. 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. 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. In fact, the Korean market is deemed Samsungs launch pad for new products. Other companies, which have achieved tremendous success in the past, have not done so by sticking to the hardware market. Only companies such as Coca Cola, IBM, and Visa have achieved this sort of brand recognition at a global level. A year after the Sydney 2000 Olympic games, the companys sales increased by nearly 44% (Henny, 2003). Apples resources are however diverted to improve the companys software competence. (Marketing91, 2019). Market Segmentation Of Apple 1346 Words6 Pages a. The strong brand loyalty among Apples consumers was however built naturally due to impressive product quality. However, observers note that this acquisition did not affect Apples financial books (Jason, 2011). Samsungs participation in the Olympic Games is perceived to be among the main reasons for the ascension of the Samsung brand to the top of the electronics market. It promotes through TVCs. Register For FREE Digital Marketing Orientation Class. Started as a food exporter in Korea and shipped items like dried fish and flour to China. Seongjae (1999) notes that most of Samsungs employees do not leave work for vacations or holidays unless they have attained their retirement age. The coding technique shares many similarities with the other data analysis tools used in this study because it is mainly interpretive (Tim, 1991). This essay wont pass a plagiarism check! This trend has quickly caught up with other technological companies around the world. Strategic Management: An Integrated Approach: An Integrated Approach. This is an uncontrollable aspect of the companys operations. Apples strategies are perceived to be largely successful. These views provide the right framework for the analysis of the research problem. The research methodology for this study will be centered on identifying the differences and similarities between the business strategies for Apple and Samsung. There are still more opportunities for growth because the Chinese population is estimated at billions of people and focusing on the mobile market alone, more than 500 million subscribers are still to be sought by Apple (Mallin, 2011). Though Samsung and Apple specialize in different aspects of hardware and software manufacturing, there has been a strong competition between the two technological companies. As noted in earlier sections of this study, Samsungs sponsorship of the Olympic Games increased the companys brand awareness significantly. The companys 2012 business strategy should therefore be focused on managing the challenges of scaling up. The findings of this study will therefore only be limited to the activities/strategies of Samsung electronics and not the entire Samsung group. Macintosh. Samsung is a South Korean multinational conglomerate headquartered in Samsung Town, Seoul. Chris (2008) explains that. This explains why Apple now considers strategic outsourcing a fundamental principle of achieving efficiency. Adverts mocking Apple fans, and heavy investment in product placement and in distribution channels have strengthened its Galaxy mobile brand. (2002).Samsung continues its high-end strategy. In the same vein: a garden party necessarily gives users of the Galaxy S5 the opportunity to praise the technical capabilities and incredible features of their phone. Samsungs marketing strategy has also been distinguished from Apples marketing strategy based on its resort to pursue a web-based marketing strategy. The venture into these market segments was informed by a dwindling market share and reduced fortunes of the company (during the late eighties and early nineties) (Mallin, 2011, p. 1). The same scenario also applies to Apple Inc. because focus will only be given to its electronics segment and not other un-affiliated businesses. Apple's Apple II launched the personal computer revolution at 1970s, and the Macintosh continued to evolve at the 1980s. This essay begins by discussing the market value of the both companies. 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). Apple may win at innovation & publicity but when it comes to marketing, Samsung prioritize complete entertainment. Among the selected individuals were Samsung employees. The fellow program was however implemented in the personal computing field. 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). Finally, this paper will source information from online sources of research as the last type of secondary research data. This strategy paid off. Other hardware manufacturers have tried to adopt the same strategy to no avail. Samsung believes in its value and adores the power of a celebrity. Apple is one such company because it is known to seek the best employees by paying the weak ones (or the ones who lack commitment) to leave the organization. However, Steve Jobs went against this norm and took his time to focus on the little attributes of the product development strategy. Through the findings of this study, we will be able to show clearly the connection, differences and similarities between the actions pursued by both companies and their business strategies. This new marketing strategy was not part of Samsungs 1990s marketing strategy, which introduced the notion that Samsungs products were mainly obtained at a bargain. Anticipatory positioning. Different factors are usually in play. FOR THE Self-Taught: Which is the Better Option? The second battlefront for Apple will be the stiff opposition forged by existing content distributors. The benefit that Samsung has with its products is that there is confidence in all Samsung products due to the way the products are developed. It is observed that the companys success in the American market dictates its success in the international market as well. The secondary research methodology will therefore be useful in gaining a proper understanding of the research problem. In addition, instead of the technological company joining the growing number of multinationals that are outsourcing their activities, Samsung continues to invest a lot of money opening new factories in different locations across the globe (Mallin, 2011, p. 5). In addition to the screen of the iPhone voluntarily extinguished, its list of features was much shorter than that of the Galaxy S3. Apple started out as a developer and marketer of personal computers, but by 2014 it was designing, developing and selling consumer electronics, computer software, online services, and personal computers. (2019, March 27). This legal fight is not inclined to close quickly. From the beginning, the brand stood out with relatively low prices for smartphones with capabilities equal to those of the other side. Click here to review the details. It is observed that without the inclusion of these strategies, Samsungs success in brand awareness could not have a rich meaning (Jason, 2011). Apples marketing sector is instrumental in finding a target market that refers high-end products. Certain Samsung products such as mobile image sensors currently have low turnover. Apple television also intends to use motion sensor technology where the product will be able to follow the action in a room (through a video conferencing platform) and relay the same on the screen. The company discontinued the production of low-margin goods. Apple launched Your Verse to highlight how different people use ipad to do things incredibly and in their own way. The decision to sponsor the Olympic Games was also part of Samsungs acknowledgement that sports play a vital role in the betterment of the society. There is a direct correlation between the nature of business strategies adopted by the two companies and the corporate actions undertaken by the same companies. Therefore, firms such as General Electric have pursued an all-rounded strategy where different employees are trained to undertake different tasks (Mallin, 2011, p. 6). However, it is also important for the company to focus on its key areas of competence home appliance market. 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). Apple and Samsung: Marketing performance Launched on June 29 2007, the first IPhone with biggest screen, hidden keyboard and especially touching screen, Apple has been a pioneer in providing customers a very unique product that customers want at the initial time when customers did not have much concept of the smartphone. However, there are impending problems associated with this strategy, but top among such strategies is regulatory problems. Steve Jobs who was Apples CEO believed that the company was cultural-based (Dippel Jr, 2012). To complete, this was the marketing mix of Apple Inc. which is showing how great brand Apple is. He notes that Samsungs human resource is closely similar to Apples because both companies operate by seeking the most qualified personnel to run their operations. The interpretive technique will be adopted within the framework of observer impression because the secondary data collected will be analyzed from an analytical and professional view to come up with a structured impression of the studys findings. 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). Samsungs strengths mainly come from a few business competencies such as the success in the memory chip market, which accounts for nearly half of the companys profits (Jason, 2011). In comparison, Samsung is viewed as a follower for a long time. Apple accused the South Korean company of plagiarism. Samsung is doing a lot of things to prove they are innovative and therefore, can experiment and learn from their experiences. Apple vs. Samsung: Marketing Strategy & Business Strategy. A cross-sectional analysis of reported corporate environmental sustainability practices. The strategy that the three employed is consistent creative design and concept. 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. This move was unpopular among the workers but it was initiated by a change of management. Apples business strategy has proved successful over the recent past. The company has received a lot of admiration (both locally and globally) after it was ranked by Fortune magazine as the most admirable company in America (in 2008), and the most admirable company globally (since 2009) (Mallin, 2011, p. 1). More so, many researchers identify that both companies aim to establish a strong foothold on the American market as a launch pad for future product launches. Apple is the market leader in the UK with 52.05% market share, and its major competitors are Samsung, Huawei, Motorola, Xiaomi, and Google. Therefore, Samsung undertakes its operations in the most transparent manner and through the right moral compass; the company hopes to entrench its operations on the right ethical foundation (Henny, 2003). Apple has not shied always from taking advantage of the improved customer loyalty. In the beginning the company produced black-and-white televisions, dish washers and refrigerators. The relationship between Apple and its offshore suppliers has been a key issue for the company, as widespread media coverage is creating awareness of conditions throughout its supply chain. It has changed the usage of computers around the world. But maintaining marketing spend at that level in the longer term wouldn't bring much more benefit. Apple has mainly filed the lawsuits after it believed that Samsung infringed on its copyright and patent laws by developing a replica of the ipad. Though other technological companies have entered the tablet market, Samsung is perceived to be the closest rival to Apple Inc. (in terms of design and capability) (Deagon, 2011, p. 1). This help us the know more about the customer awareness about the product and how to increase customer loyalty to the company so as to gain more competitive advantage. This is because everything was controlled by the CEO. 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. Integrated Marketing communication is an approach to achieve the objectives of a marketing campaign through a well-coordinated use of different promotional methods that are intended to reinforce each other. Thus, in the marketing mix of Samsung, the product portfolio is one of the strongest points from the company (Marketing91, 2019). Apple has gained customer loyalty and brand recognition due to its diversification strategy and fulfilling customers desires (Khan and Alam, 2015). Keep reading to find out! However, the methodology applied by Apples management has been unpopular and uncommon (VAR, 2005). Samsung also has a unique work ethic, which guides the behaviors of its employees. The focus on high employee talent was especially fostered by Jobs after he made a debut back to the company after being fired by the companys board in previous years. Do not sell or share my personal information, 1. These events paint a strong emphasis on Apples business strategies because they have been able to succeed in markets that have been previously dominated by other giant players such as Samsung (in the hardware market) and Microsoft (in the software market). 1. In the fourth quarter (of 2011), Samsung reported profits of $4.5 billion after the company sold more than 300 million units of mobile phones (Deagon, 2011, p. 1). As you can. In case of Apple, when more and more people are seen having and iPhone, other individuals get compelled to have the one; this is known as halo effect. 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). Samsung also equipped the participants, staff and volunteers with wireless communication devices to facilitate the smooth running of the event. Several observers such as Donald Rumsfeld have identified that Apple does not fail to surprise its competitors by producing future-oriented applications (Jason, 2011). However, both companies have pursued different strategies to achieve their success. During this period, Samsung sold about 24 to 28 million Smart phones while Apple sold about 17 million smart phones. The slogan It does not take a genius was clearly referring to the Genius , experts of the Apple Store. 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. The Samsung brand can be improved and it isnt loved by some like Apple, but I am impressed with the leadership team for seizing the opportunity to leapfrog all its other competitors, through investment and execution with conviction. In addition, their marketing strategies by sponsoring different events gave them a good image around the world. It is not confirmed if Samsungs pricing strategy contributed to the companys decreased debt levels because the companys debt shrunk from an unsustainable $10.8 billion to a mere $1.4 billion. The difference between the high definition DVDs and the blue ray technology is that high definition DVDs can be played on old DVDs while blue ray technology does not allow for this provision. Wall Street Journal, 22(9), 5-10. I will spend my last dying breath if I need to, and I will spend every penny of Apples $40 billion in the bank, to right this wrong. If you dont know where you are going, you will likely end up somewhere else (Chris, 2008, p. 1). (2023) 'Apple vs. Samsung: Marketing Strategy & Business Strategy'. Introduction My personal smartphone My motives for choosing Apple Apple lowering price on iPhone 5c Assessing the pricing decision Comparing its sales to other Apple products Examining data related to the 5c Apple's new breakthrough products Examining the past breakthrough products Looking ahead to Apple's new, breakthrough products Samsung's global marketing strategy Ability to gain . The company has strived to attain this goal by developing layers of advantages over its competitors. As noted in previous sections of this paper, other technological giants like Samsung and Sony have had a strong foothold in this market and they are expected to counter Apples venture into the television market through their pocket-friendly pricing strategy. The operations of Apples supply chain was strong enough to warrant speculations by observers that the companys grasp on the supply chain was enough to dictate the terms of other players in the chain (Mallin, 2011). In comparison, Samsungs marketing strategy is tough and powerful. This analysis also exposes how these resources compare with first-class resources, which are expected of existing technological companies in todays market. MacBook, iPad, iPhone, iWatch are all premium products (Marketing91, 2019). The research methodology mainly uses secondary research, which is limited to the objectives and aims of the initial researchers. The company's generic strategy agrees with this intensive growth strategy by focusing on technological innovation to increase competitive advantage and profits. THE STUDY OF SMARTPHONE IN THE CITY OF MUMBAI 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 started business in 1976 and has since been in competition with other giant multinationals such as Microsoft and IBM (especially in the computing market). Similarly, the company has created an unrivaled brand loyalty among its most valued customers around the world. The companys brand awareness (globally) increased in significant proportions and its markets share significantly soared as well. They are the leading mobile phone manufacturer in the world and generated sales of $ 229.234 billion in 2017. This strategy is supported by Samsungs participation in the Salt Lake 2002 Olympic Games where the company offered millions of dollars in sponsorship through the provision of wireless equipment to facilitate the smooth running of the games (Jason, 2011). With regards to this technological point of control, Jason (2011) admits that Assuming Apple pushes face time as a family video conferencing play, you can bet that competitors will counter with a similar feature based on Google Voice or Microsofts Skype and Kinect technology (p. 4). These observers attribute Apples value addition services to its ability to integrate different attributes of their hardware and software for a seamless user-experience. Most of Samsungs plants are located in third world economies, which do not have strong labor laws that protect their employees from unfair work practices. Manufacturing low-priced products can be necessary for Samsung to survive in a market that is now flooded with similar and cheap products. This strategy is further complimented by the focus on work experience as an important ingredient to Samsungs working plan. Our writers will provide you with an essay sample written from scratch: any topic, any deadline, any instructions. During the 2007-2011 period, Apples success was cemented with the growing popularity of its iphone, ipad and ipod products. In addition, this paper also investigates the core competence for both companies. The Apple television is one such product, which has caused a lot of stir in the technological world. 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. During the same event, Samsung also hosted an event dubbed national days that highlighted the national cultures of different countries that participated in the sports. Apple spends just 0.6%, and General Motors 3.5%. The US consumer base seems to be an inflexible customer pool, which would be harder to penetrate. Samsung uses prompting strategies by lowering the prices, making it more affordable for customers. Electronics Building, Therefore, Samsung surpassed Apple in terms of strategic capabilities. Now customize the name of a clipboard to store your clips. Djurup, R. (2013). Samsung on the other hand hopes to attract and retain the best human resource by providing the best working terms possible. These sales channels are as follows: Apple stores. The main assumption underlying this study rests in the historical spread of business strategies adopted by Samsung and Apple. 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). Under the leadership of Steve Jobs, Apple was able to make a name for itself in the technological map. Apples business strategy has especially come into sharp scrutiny after recent reports revealed Apple monopolized its partnership deals and agreements with third party supply companies. For instance, Samsung expects to introduce a new touchpad that is able to operate multiple home appliances from one gadget (Henny, 2003). From this assertion, Samsung believes that it contributes to the betterment of the society. For instance, the launch of the itunes and icloud are just some of the few software innovations that Apple has ventured. Therefore, understanding a companys business strategy is like knowing the terrain of the battlefield and predicting (or knowing the actions) of the enemies. The Samsung group is an umbrella body that includes other business segments such as insurance business. Through horizontal integration, there are chances that the diversification of products will render the company competitive among other industrial rivals (Hills, Jones & Schilling, 2014). Obviously, issuing dividends to the companys stakeholders is a sure way of sharing the companys success with the people that matter (Jason, 2011). 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. endobj
This observation highlights the strong emphasis on educational qualifications as one of the key requirements for Samsungs employees. Promotion in the Marketing Mix of Samsung. 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. Samsungs strength in the same market has also seen other companies lose a lot of money as Samsungs stamps its authority in this market. Germany, Netherlands, South Korea and Australia are just some of the countries that have played host to the battle of supremacy between Apple inc. and Samsung electronics (Deagon, 2011, p. 1). The marketing sector understands what the customers want in terms of the product price and ensures that low-priced models are available in the market. With their strategy, they were able to lower the cost of their smartphones making them more affordable than Apple. This business strategy has been seen to cause a lot of stir among Apples competitors because it is a source of frustration. SEMESTER 5 Samsung uses skimming price for these products wherein it tries to get a high value from the start before competitors catch up. There is also the possibility of using Microsofts features in the same manner. Asia Pacific University of Technology and Innovation, MKTG522_IMC Course Project Topic Week 4 Draft, Bismuth Data for granites and shales are from Preuss 1940 Reed Kigoshi and Turke, 9.24.T - Lesson_ Phase Changes Assessment_ Chemistry _ Mr. John T Zavoli _ Academy 2019-2020.pdf, AdimulamSaiManasa_ProjectSubmission_Leadership.docx, 124 Further improving the suitability of the company as a nexus of all the, 20191600009 Balampanidis D Patatouka E Siatitsa D 2013 The right to housing, 60840 were healthy and tested negative true negatives Sensitivity Diseased that, Assisted Care - FAQs - Palm Lake Care Redland Bay.pdf. From this perspective, Samsung stands out to be superior in terms of entrepreneurship. The SlideShare family just got bigger. One such reason is the market size for the television market and the potential for premium pricing as a result (VAR, 2005). Samsung and Apple share a love-hate relationship because some observers note that both companies also share a working relationship (though they have sued one another for patents and copyright infringement). Moreover, the market is still growing. The New Paradigm of Anti-corruption Policies in Korea: A Focus on the Lobbying Disclosure Act. . That act helped Samsung to jump-start market share, and proved to become a viral video content powerhouse. Through the findings of this paper, we also see that a quarter of all Samsung employees have a PHD. In fact, the company prefers to keep its organization structure a secret from its competitors. Word Count: 918. Because Samsung has a wide range of products, the company uses many price strategies. 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