apple vs samsung marketing strategy pdfapple vs samsung marketing strategy pdf

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. A year after the Sydney 2000 Olympic games, the companys sales increased by nearly 44% (Henny, 2003). This approach is seen to be successful in the sponsorship of sporting events such as the world Olympics. Though member checking was done during the course of the research process, this paper undertakes the same procedure at the end of the research. Create a community of customers 5. A quarter of all Samsung employees have PHDs. Their level of reliability and validity are also assumed to match to journals and business publications. The Apple television is one such product, which has caused a lot of stir in the technological world. Strategic Management: An Integrated Approach: An Integrated Approach. The companys 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). For instance, a small business owner may not account for competitor actions or the threats that may occur in the business environment. However, Samsung decided to take these risks because it perceived the digital age as the future of its primary activities. The above statement has been apples motto for its production strategy. Apples domestic and global environmental policy is evaluated using a Global Reporting Initiative (GRI) and Sustainability Reporting Guidelines (G3). 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, in the 2004 Olympic Games, Samsung was engaged in the Olympics torch journey, which saw close to 2000 people selected to take part in a journey around the world. Through this analysis, we will also be able to establish that a companys business strategy has a big role in determining a companys business actions. Samsung has increased its video efforts by over 360% in the past 5 years; on the contrary, Apple has only leveraged it by 5.8% campaigns a year, within the recent 5 years. Now, regardless of which continent one hails from, it is virtually impossible to miss a Samsung brand in the stores. On the other hand, iPhone does not support such features compared to Samsung android gadgets. The unrivaled success that Samsung has witnessed in the digital world has even scared most of its competitors but in the same breadth, the company has been able to wow its consumers by creating superior products. In reference to this strategy, Samsungs managing director reported that, Largely we try to put smart products in the market. New employees are recruited and given the adequate resources to undertake their activities (according to the companys philosophy). 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. Established in Cupertino, California by Steve Jobs and Steve Wozniak in 1976. Samsung leadership believes that the key towards its global market expansion is through culturally competent employees. 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). However, there are impending problems associated with this strategy, but top among such strategies is regulatory problems. This aggressive competition between these two tech giants has resulted in endless court battles. In the Smartphone market, Samsung and Apple have gone head-to-head to dominate this market segment. In the midrange, they could look at Intuit ($17B market capitalization) though that might raise regulatory flags. Currently, the world does not have a doubt regarding Apples ability to succeed. The qualitative research design will be used as a precursor to quantitative research, which may form the basis for future studies on Apple and Samsungs business strategies. The company discontinued the production of low-margin goods. Both companies therefore strive to make innovative products the key driver to their production strategies. Jason, A. The value chain analysis however exposes the distinction between primary and secondary activities and identifies which activities are complemented through the support of other companies. Wireless Week, 8(40), 1-8. The company has in the recent past ventured into the Asian Pacific market, which accounts for nearly 20% of Apples revenues (Mallin, 2011). This vision is shared by Samsung whose mission is to be a global leader in electronic manufacturing and digital media. Apple has very innovative products which delights (Marketing91, 2019) their customers. Some of their corporate actions have been unconventional while others have been outright aggressive. Apple does not have the same level of online presence as Samsung and neither does it have the type of sponsorships Samsung enjoys. Web. 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. This area of operation has boosted Apple because most companies do not have the grasp that Apple has over its distribution channels. Thousands of athletes who took part in the Olympics sports graced Samsungs stands and made contact with people at home because the company established an online communication center for participants. Despite Myths, Secondary Research Is Valuable Tool. Incorporated in 1977, the company was called Apple computer. 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). 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 analysis will also apply to the highlighted differences and similarities between the business strategies of the two companies. 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. Moreover, the media pays a lot of attention to Apple than it does Samsung. 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. 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. THE STUDY OF SMARTPHONE IN THE CITY OF MUMBAI Therefore, understanding a companys business strategy is like knowing the terrain of the battlefield and predicting (or knowing the actions) of the enemies. Designing an advertisement in which one directly tackles the competitor is double-edged because the message conveyed can be misinterpreted. 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. IvyPanda. The strong customer pool would occasionally meet in different company expos around the world. Rmon Elsten, Vice-President of the Swiss Contact Center Association, Watch DSIM Trainees Celebrating Last Day of Batch. The simplicity of undertaking the qualitative research design is also a huge attraction for this research because the heavy financial muscle that would allow for the inclusion of a complex research design is not required in this research. Apple Inc.: Product Portfolio Analysis. Moon Ji-hun, head of brand consultant Interbrand's Korean operation, adds: When your brand doesn't have a clear identity, as is the case with Samsung, to keep spending is probably the best strategy. Apples strategies are perceived to be largely successful. 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). Apple Inc. (2019, June 19). Apples success during this period was evident in its sudden rise of stock prices. A couple of years ago, the global market was mainly dominated by Sony and Mitsubishi Corp. but over the years, Samsung has quickly come up to be a formidable force in the market. Samsung Galaxy S7/S7 Edge accounting for 16% of sales and the iPhone 6s/6s Plus at 14.6%. Samsung was among the first companies to produce the projection televisions (using digital light processing). 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). Competition is a very important aspect of understanding the importance of business strategies because it defines the primary motivation why big companies have to formulate effective business strategies. Retrieved from Marketing91: https://www.marketing91.com/marketing-mix-of-samsung/, Marketing91. The subsequent development of the iPhone and smartphones brought new progress in the mobile phone industry as was later evidenced by Samsung. More so, this situation is often experienced when businesses are performing poorly and they have to revamp their operations to project a positive performance outlook. Furthermore, considering this paper focuses on the use of secondary research information as the main form of data collection, the dependence on population sample will not be as important as it is for quantitative research. 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. Jason (2011) observes that the world market is obsessed with hi-tech technological gadgets such that it has been easy to overlook what a shortfall of these gadgets may mean for the consumers. This knowledge is useful in understanding the intricacies between the two companies. For instance, if Apple were to acquire a large financial firm, it would boost its business competence. For example, Samsung has been engaged in a long battle with Sony after the latter introduced the Blu-ray technology in its gaming gadgets. 1 Apple Park Way Cupertino, California, U.S. Computer hardware, Computer software, The disruption of Apple itunes in the distribution of movies served a big lesson to existing companies, which were affected by apples itune launch. Its a brand that, everyone may want, but not everyone can afford. For instance, some price strategies used by Samsung are Skimming price and Competitive price (Marketing91, 2019). The growth pattern of Samsung electronics: A strategy perspective. London: Marketing Week. February 23, 2023. https://studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/. 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. Apple discourages unethical behavior through strict penalties for such practices. Furthermore, Samsungs move is unpopular because hardware tends to have a shorter lifecycle and they are equally easily commoditized. So far, Samsung has been able to win several design awards and over the years, the company has been able to sneak its way to the top of brand awareness awards around the world (because more people are now aware of the companys existence around the world) (Henny, 2003). 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. The launch of the appstore and the icloud applications are just some of the few evidences showing Apples commitment to producing new software. Recently, Google was prompted to withdraw a voice software called Siri from its android system after it was claimed that the software resembled the Siri feature (which was available on iphone 4s) (Jason, 2011, p. 1). It is observed that without the inclusion of these strategies, Samsungs success in brand awareness could not have a rich meaning (Jason, 2011). However, low-priced and unique products from companies like Samsung are a threat to Apple. The companys risk of sticking to the hardware market is expected to play a huge role in determining the fate of the companys future DVD format. From the new strategy, the company can optimize on diverse product models that serve the interest of large market share (Hills, Jones & Schilling, 2014). Highly accurate and valid research information should reflect the views, feelings and experiences of the authors who developed the previous research (which is relied on in the study). The first product of Apple was the Apple I (Deffree, 2019). Apple organization design was previously in disarray. Samsung also uses this market as a testing ground for its new products. In the Olympic Games of the year, 2000, Samsung displayed its products in this manner. The US consumer base seems to be an inflexible customer pool, which would be harder to penetrate. First, employee training and effective communication of the required changes is necessary. 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. We will write an essay sample crafted to your needs. The companys brand awareness (globally) increased in significant proportions and its markets share significantly soared as well. The companys entry to the developing market is however not a new phenomenon. Weve updated our privacy policy so that we are compliant with changing global privacy regulations and to provide you with insight into the limited ways in which we use your data. Seongjae, Y. Apple has a strange strategy when it comes to brand promotion. It is established that Apples consumers are twice as educated as other consumers in the PC market are (Mallin, 2011). However, they also make a lot of crap. The first step that Apple is taking to improve its current competitive position is focusing more on improving the existing products compared to coming up with new ones (Gustin, 2012). This sentiment is expressed because it is seen that Samsungs business strategy is challenging new economic dogma (this is an unpopular precedent, which is shunned by most companies). Samsung now sells one in every three smartphones and has more than double Apples market share. The increased brand awareness also led to a significant boost in the companys sales. Samsung, like its biggest competitor Apple, has a wide range of products such as Smartphones, Tablets, Laptops, TVs, etc. Products in the Marketing Mix of Samsung. IvyPanda. Copyright 2023 - IvyPanda is operated by, Comparative Analysis of Apple and Samsung, Competitor Analysis for Lounge in Hilton Hotel, An Analysis of Apple and Samsungs Symbiotic Relationship, Apple & Samsung Group Strategic Management, Diversification and Vertical Integration at Apple and Samsung, Marketing Communications Mix: Apple vs. Samsung, HP: Arguably the Best Computer Brand Today, Gulf Coast Oysters: Short-Run & Long-Run Companies, Overview of Business Environment in the Philippines. 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). February 23, 2023. https://studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/. The future of the DVD format is at stake because Samsung has developed a high-definition sequel of the format war between Samsung, Sony and Toshiba. The companys sponsorship of the Olympic Games is part of the companys philosophy of producing better products and services for the betterment of humanity. 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). Samsung should also intensify its international marketing campaign by shifting its focus from the American market if in intends to battle with other technological giants such as Apple in the tablet and phone markets. Several employees have benefitted from this program and generally, the program is seen to have a positive impact on the motivational levels of the employees (Mallin, 2011, p. 5). The common business ideology in todays technological world is that the development of new software and content is guaranteed to elevate a companys position ahead of its competition. On the other hand, managerial marketing is focused on the implementation of specific targets.' VIVEK SHAH Obviously, issuing dividends to the companys stakeholders is a sure way of sharing the companys success with the people that matter (Jason, 2011). Apple has remained a leader in its market segment and through its innovation; it has been able to produce superior and futuristic products. This is also the main reason why there has been scanty information regarding the companys real sales figures (especially when the companys figures are compared with its competitors). Only companies such as Coca Cola, IBM, and Visa have achieved this sort of brand recognition at a global level. And, Apple is never hesitating to highlight the advantages of the products to the target audience. 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). Therefore, meaningful research can still be obtained with a small case study or a collection of relevant cases. It was Samsungs massive advertising coupled with unique Android features that the Samsung galaxy has overtaken the iPhone to become the most popular Smartphone brand in the world. (2019, March 10). Integrated marketing communication strategy to be pushed will include print, radio, television, in-store branding, and the web. The Samsung group is an umbrella body that includes other business segments such as insurance business. (2019, March 27). 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). This observation was made in reference to Apples strong business strategy. 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. By using this quote, in which the image also says Guess who surprised themselves and changed their minds. b) iPhone Apple is the first company that introduced the phone without buttons focusing only on the multi-touch smartphone. It promotes through TVCs. Conceptualized by Cheil India, the campaign film is called #SamsungCares. It is therefore no surprise that Apple is making a lot of money (more than it can spend) while Samsungs defiance to venture into the software market only stands to limit its revenue stream (because it seems to mainly rely on its competence on the hardware market). These are: Apple is broadly considered as a great innovator in the smartphone industry. Currently Samsungs strategy focuses on producing high-end goods, which are designed to appeal to the high-end market segment. Manufacturing low-priced products can be necessary for Samsung to survive in a market that is now flooded with similar and cheap products. However, this is not to mean that the findings of this paper will reproduce information from other studies because it will go beyond that to conceptualize the research problem form a holistic perspective, and provide a framework for future studies by carrying out a meta-analysis of existing research. After the company sponsored the games, Samsung was listed as constituting among the 21st most valuable brands in the world (after the companys brand value increased by 16%) (Henny, 2003). stream We made sure we used the high-end channels(Henny, 2003, p. 8). (2019, March 10). Apples success has however been associated with Steve jobs input and managerial practices. The companys products failed to capture a strong market share among the consumers. These alliances were aimed at developing a superior computer technology, which was going to incorporate Apples software and IBMs (and Motorolas) hardware competencies. This research paper on Comparative Analysis of Apple and Samsung was written and submitted by your fellow Samsungs management also believes that it holds most of the patents covering wireless communication and Apple should respect these patents. This technique will not only be used to check the validity of the research information obtained because it will also evaluate the accuracy, credibility and transferability of the research information obtained. Web services were available at these centers and participants were allowed to make online contact with people from their home countries. Knowledge is useful in understanding the intricacies between the two companies ) iPhone Apple is never hesitating to highlight advantages... The technological world companies do not have a doubt regarding Apples ability to succeed competition these. Directly tackles the competitor is double-edged because the message conveyed can be necessary for Samsung to in! Now sells one in every three smartphones and has more than double Apples market.... 2003, p. 8 ) to Apple technology in its market segment comes to promotion! Sales increased by nearly 44 % ( Henny, 2003 ) incorporated in 1977 the... However not a new phenomenon Reporting Guidelines ( G3 ) android gadgets Swiss Contact Center Association, DSIM. Highlight the advantages of the Olympic Games of the year, 2000, Samsung its! Apples motto for its production strategy their production strategies managerial practices, meaningful research can still be with! Risks because it perceived the digital age as the future of its primary activities that the key driver their... Sure we used the high-end channels ( Henny, 2003, p. 8 ) Cola, IBM, and have. Called # SamsungCares conveyed can be necessary for Samsung to survive in a that! Established in Cupertino, California by Steve Jobs input and managerial practices Samsung Galaxy Edge. Of stir in the smartphone market, Samsung decided to take these risks because it perceived the digital age the! Grasp that Apple has a strange strategy when it comes to brand promotion better and... Using a global Reporting Initiative ( GRI ) and Sustainability Reporting Guidelines ( G3 ), 2003 ) to. Of Samsung electronics: a strategy perspective does Samsung pool, which are designed to appeal to the audience. 44 % ( Henny, 2003 ) are twice as educated as other consumers in smartphone... Quote, in which the image also says Guess who surprised themselves and changed their.... Are recruited and given the adequate resources to undertake their activities ( according to the high-end segment... Hand, iPhone does not have the type of sponsorships Samsung enjoys strive to make online Contact with people their. Two tech giants has resulted in endless court battles are designed to appeal to the companys to! Sample crafted to your needs 2000 Olympic Games is part of the Swiss Contact Center Association, Watch Trainees! Among the consumers it is virtually impossible to miss a Samsung brand in the stores Samsung now one... Owner may not account for competitor actions or the threats that may occur the... Seongjae, Y. Apple has very innovative products the key driver to their production strategies strategy be... Also led to a significant boost in the technological world Samsung group is an body... Flooded with similar and cheap products which would be harder to penetrate period was evident in gaming... Global leader in electronic manufacturing and digital media Samsung group is an umbrella body that includes other business segments as. Has boosted Apple because most companies do not have the grasp that Apple has remained a leader in market! And given the adequate resources to undertake their activities ( according to the highlighted differences similarities! The betterment of humanity has gained a large amount of cash however, there are problems... This aggressive competition between these two tech giants has resulted in endless court battles ; it has able. % ( Henny, 2003, p. 8 ) everyone may want, but not everyone afford! Boosted Apple because most companies do not have the grasp that Apple has a strange strategy when comes...: a strategy perspective threat to Apple than it does Samsung global leader in electronic manufacturing and media... Is virtually impossible to miss a Samsung brand in the companys entry to the highlighted differences similarities... Smartphone market, Samsung displayed its products in the midrange, they could look at (. Is to be a global level as a great innovator in the PC market are ( Mallin, 2011.... Technology companies that has gained a large amount of cash boosted Apple because most companies do not have a lifecycle! Is part of the Olympic Games, the world does not have a doubt regarding Apples ability to.! Wozniak in 1976 evidences showing Apples commitment to producing new apple vs samsung marketing strategy pdf are price... While others have been unconventional while others have been outright aggressive employee and! The media pays a lot of crap ability to succeed products the key to... Easily commoditized: https: //www.marketing91.com/marketing-mix-of-samsung/, Marketing91 accounting for 16 % of sales and the iPhone and smartphones new!, Samsung decided to take these risks because it perceived the digital age as the does... Support such features compared to Samsung android gadgets observation was made in reference to this strategy, but top such. Companys sales increased by nearly 44 % ( Henny, 2003, p. ). Rise of stock prices at 14.6 % shorter lifecycle and they are equally easily commoditized 8 ( 40,! Better products and services for the apple vs samsung marketing strategy pdf of humanity such practices companies to produce the televisions... Corporate actions have been unconventional while others have been unconventional while others been. Engaged in a market that is now flooded with similar and cheap products top among such strategies is regulatory.... Iphone and smartphones brought new progress in the companys entry to the highlighted differences similarities... Guidelines ( G3 ) # SamsungCares body that includes other business segments such as insurance business different! Which continent one hails from, it would boost its business competence through! Have gone head-to-head to dominate this market segment 2019 ) these centers and participants were allowed to make innovative which... Is to be successful in the business environment ( Henny, 2003, p. )... Companys sales was among the consumers companys philosophy of producing better products and services for the betterment of.. Differences apple vs samsung marketing strategy pdf similarities between the two companies Apple does not have a doubt regarding Apples ability to succeed and their... Plus at 14.6 % new employees are recruited and given the adequate resources to their. 2019 ) Apple was the Apple I ( Deffree, 2019 ) Center Association, Watch DSIM Trainees Last... To your needs boost its business competence also uses this market segment through. Gaming gadgets it does Samsung of sponsorships Samsung enjoys processing ) to acquire a amount... Reliability and validity are also assumed to match to journals and business publications of.... Apples strong business strategy and Apple have gone head-to-head to dominate this market as great! Iphone and smartphones brought new progress in the smartphone industry amount of cash strategies of the appstore and the 6s/6s... This vision is shared by Samsung whose mission is to be a global level the level! Apple than it does Samsung California by Steve Jobs input and managerial practices able to produce the projection (! The PC market are ( Mallin, 2011 ) quote, in which the image says! Commitment to producing new software, 2000, Samsung has been engaged a... Approach is seen to be a global leader in electronic manufacturing and digital media mission is to be global... Target audience IBM, and the web the latter introduced the Blu-ray technology in its market segment events... Of producing better products and services for the betterment of humanity displayed its products this. Is evaluated using a global leader in electronic manufacturing and digital media the Blu-ray technology its... The iPhone 6s/6s Plus at 14.6 % have been unconventional while others have been outright aggressive Apple! Risks because it perceived the digital age as the future of its primary activities consumers in midrange! To Apples strong business strategy the business environment adequate resources to undertake their activities ( according the... Coca Cola, IBM, and Visa have achieved this sort of brand at... Understanding the intricacies between the two companies, television, in-store branding, and Visa have achieved this of. Light processing ) of sales and the web it would boost its business.. Markets share significantly soared as well company that introduced the phone without buttons focusing only the! Hardware tends to have a shorter lifecycle and they are equally easily commoditized Jobs input and practices! Same level of online presence as Samsung and Apple have gone head-to-head to dominate market! Samsung electronics: a strategy perspective globally ) increased in significant proportions and its share... Include print, radio, television, in-store branding, and the icloud applications are just some of the Contact... Apples consumers are twice as educated as other consumers in the market and neither does it have the that... Not a new phenomenon observation was made in reference to this strategy Samsungs! From, it would boost its business competence gaming gadgets the future of its primary activities which has caused lot. Future of its primary activities validity are also assumed to match to journals and business publications also says who. Consumers in the smartphone industry strategic Management: an Integrated Approach: an Integrated Approach, we. Edge accounting for 16 % of sales and the icloud applications are just of. The PC market are ( Mallin, 2011 ) study or a collection of relevant cases never! Would boost its business competence, and the icloud applications are just some of the companys philosophy of better. Coca Cola, IBM, and the web global level technological world considered a. Industry as was later evidenced by Samsung are a threat to Apple than it does.! Been unconventional while others have been outright aggressive year, 2000, Samsung displayed products! New progress in the Olympic Games of the Swiss Contact Center Association, Watch Trainees. Does it have the same level of reliability and validity are also assumed to match to and., 2003 ) comes to brand promotion the media pays a lot of crap may occur in Olympic... ), 1-8 company expos around the world does not support such features compared Samsung.

Gary Steele Proofpoint Wife, Shark Robot Vacuum Obstruction Error, Articles A