The internal industrial design has a competent team and outsourced production. Netflix (a movie distribution company) was also faced with the problems of an increasingly competitive and fast growing (movie distribution) business. Employees who may end up performing below par are therefore identified (earlier) in the recruitment process and relieved of their duties. Therefore, Samsung strives to provide all its employees with the right opportunities and resources to achieve their full potential. Other companies have had a good record of assimilating their activities in new markets and thereafter gained a lot of experience regarding the same ventures. Emphasis will be given to the business actions undertaken by the two companies outside their primary operating environments. Learning a companys business strategy is an important predictor of the companys performance in the business environment. For instance, the business association between Samsung and Apple (in the supply of hardware parts for Apples products) shows the acquisition of new resources for Apple in sustaining its business strategies. The generalizability of the research information may also be limited to a specific component of the businesses in study. Samsung was founded by Lee Byung-chul in 1938 as a trading company. The ad not only teased iPhone users with lines like Why dont you guys just get 4G phones? but also took the chance to feature their larger screens. VARbusiness, 21(3), 3-6. Finally, this paper will source information from online sources of research as the last type of secondary research data. With a wide range, Samsung devices are more attractive to techies attracted by open source, easy customization of mobile, innovative features and technical capabilities. Establishing a companys business strategy has a positive effect on realizing a companys strategic goals. % Started as a food exporter in Korea and shipped items like dried fish and flour to China. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter's Five Forces, Value Chain analysis and McKinsey 7S Model on Samsung. Apples pricing strategy is relatively expensive and charges a higher premium for their products. However, Apples growth path has been hit by several setbacks such as its attempted launch of auxiliary technological gadgets such as digital cameras and other home appliances. Tim, P. (1991). The site ran for about three months and about five million people visited it (Jason, 2011). StudyCorgi, 23 Feb. 2023, studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/. Nonetheless, for a long time, Samsung has been battling with Hewlett-Packard (HP) for the position of the best information technology (IT) manufacturing company in the world, and in 2009, Samsung won this coveted price (Jason, 2011, p. 13). (2019, March 27). The internal design team has been credited with innovations of modern mobile technologies. Long ago, Samsung was a supplier of Apple; however, it decided to challenge the latter. This managerial trait has paid off for Apple because its products have a keen attention to detail and many observers perceive them as well-though out products (Mallin, 2011, p. 5). Both companies therefore strive to make innovative products the key driver to their production strategies. Porter explains that a companys activities can be easily grouped into two segments: primary activities that involve the utilization of a companys resources to produce the companys main products and services, and secondary activities that improve the effectiveness of a companys primary activities (Chris, 2008). Terms of Use, A Comparative Analysis of Apple and Samsung Regarding their Marketing Mix Strategies., A Comparative Analysis of Apple and Samsung Regarding their Marketing Mix Strategies [Internet]. Live Exercises: Google Trends & Google Analytics, Career Opportunities: Roles, Experience & Salaries. New employees are recruited and given the adequate resources to undertake their activities (according to the companys philosophy). In addition, the creation of the iPod was relieving to the music industry that flourished from the innovation. The companys strategic planning process is however developed by keeping a close eye on the competition and looking for unexpected ways to overshadow its competition. Samsung is known for its service and customers knew that the company gives fast service for any of its products. Save my name, email, and website in this browser for the next time I comment. From the above background, it is important to acknowledge the importance of business strategies. The constant attribute here is that people will always undertake business actions that they believe will draw them closer to achieving their business objectives. In 2010 alone, this market grew by close to 200%. Founded in 1969, Samsung Electronics Co., Ltd. with the headquartered in Suwon, South Korea. Furthermore, since the recent developments of the tussle between Apple and Samsung have not been addressed, the use of secondary research data will provide a broader understanding of the research problem. 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. The strong brand following for Apples products has been highlighted in different media across the world. It is important to reckon that almost half of Samsung employees are foreigners and that the companys sales are generated from global markets. The dominance of Samsung in todays technological world is therefore an unprecedented eventuality because the Korean company has been able to wade its way through the dominance of technological giants to be a force to reckon with. Moreover, the media pays a lot of attention to Apple than it does Samsung. The headquarters of Apple is located in Cupertino, California and it designs, manufactures and sells consumer electronics, computer software as well as personal computers. Im willing to go thermonuclear war on this., Smartphones, TVs and other key IT products are entering a slow growth phase and our rivals are changing value chains by introducing new technology and business models.. Truly, Samsung declared a ten-year growth strategy based around five organizations 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). Samsungs marketing strategy has also been distinguished from Apples marketing strategy based on its resort to pursue a web-based marketing strategy. For a long time, Apple and Samsungs actions have drawn a lot of attention among most industry observers. 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. The influence of a companys business strategy spans across different sectors of a businesss competence areas such as customer retention and resource allocation. Furthermore, the company strategy of venturing into new markets is complemented by the push to merge new technology with new markets. Chris (2008) emphasizes that business owners have to take time to pinpoint their business strategies to guarantee their overall success. This paper will therefore show what to expect of different businesses, based on their business strategies. Alternatively, they could go big and buy Mastercard ($50B market capitalization) (Mallin, 2011, p. 4). However, low-priced and unique products from companies like Samsung are a threat to Apple. Samsung s marketing blitz vs Apple Effective but big. The first strategy adopted by the company was using available resources in brand building. Giant multinationals are known to have multiple business strategies because they operate different business portfolios. The company tends to look for innovative ways of formulating its competitive strategies. Comparative Analysis of Apple and Samsung. According to Haslam et al. For example, business people ought to think that Samsung Galaxy SIII has Google Drive, Gmail and Google Calendar as critical features of operations (Djurup, 2013). This approach is seen to be successful in the sponsorship of sporting events such as the world Olympics. Similar companies have also suffered the same fate because Motorola, Ericsson and Apple Inc. are also feeling the heat of sticking to the hardware market. The brand partnered with famous music icon JayZ for his Magna Carta Holy Grail album, and teamed up with Usher for product placements in his Looking for Myself music video. The venture into the television market is only set to expand Apples playing filed because this market is a wider platform compared to the mobile or ipad markets. Samsung believes that it is easy to get different software from any manufacturer but it is not easy to obtain quality products from any manufacturer. Some companies are also required to improve their overall business operations by coming up with a good plan of action as a requirement for business financing. Some time after the outbreak of hostilities, Samsung inaugurated its marketing strategy to highlight the main weaknesses of its California competitor. (2010). Samsung and Apple have become more aggressive in pursuing different tactics to gain an upper hand in the tablet and Smartphone markets. The above statement was made in reference to the direction pursued by chief executive officers (CEOs) when pursuing different company strategies. In the same event, visitors were allowed to experiment these new products and the company received a lot of feedback regarding these products as well. StudyCorgi. 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. Apple Computer introduced the Macintosh in an advertisement during Super Bowl XVIII, on January 22, 1984, and came on sale two days later (Rouse, 2009). 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). Experts note that Samsungs business strategy is therefore unsustainable and it is going to suffer the consequences of sticking to the hardware market. It has aminimalist presence on social media. Obviously, there are some concerns over monopolistic tendencies because Apple is considered among the most valuable companies globally. On the other hand, iPhone does not support such features compared to Samsung android gadgets. To maintain an edge in the market, Apple improves its existing products by adopting features that appeal to its consumers. This technology was first given to Sony, but the Japanese company failed to take advantage of it because they did not understand how to produce economical gadgets. The sales and service dealers handle key accounts for Samsung and are involved in corporate sales. c) Retail the trade partners sell through individual handpicked retailers who are authorized to sell Apple products. The same effort has been replicated in the world cyber games. The company designs, manufactures and markets personal computers and related personal computing, and mobile communication devices. However, based on the current business environment, there seems to be a change in consumer taste and preferences. It is not clear if the marketing strategy adopted by Samsung was deliberate but the ongoing war between the two technological giants has seen Apples followers baying for blood (Jason, 2011, p. 1). Samsung makes use of all major social media channels, celebrity endorsements, and all other good & effective marketing strategies. The number Apple Inc. is an American multinational company that designs and sells consumer electronics. Moreover, the new product designs improved Samsungs status as a young and fashionable brand with strong functions. The secondary research methodology will therefore be useful in gaining a proper understanding of the research problem. Apple Inc. implemented the blue ocean strategy; concurrent pursuit for uniqueness and low costs to open up a new market and demand (Kim, 2004).The company used the strategy to supply creative and innovative products that changed the field of art. The company does so by anticipating new changes in the business environment by establishing the needs and demands of the market so that the companys success is sustainable in the long-term. 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). But Apple's success isn't just a matter of making a lot of money, or selling a lot of products. February 23, 2023. https://studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/. 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. The Olympic rendezvous acted as an entertainment spot located on a 1024 square feet piece of land on Athens Olympic sports complex where fans and participants sat and enjoyed the games (Henny, 2003). (Marketing91, 2019). Well, we do. Retrieved from Wikipedia: https://en.wikipedia.org/wiki/Apple_Inc. 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. Finally, this paper seeks to undertake a portfolio analysis of Samsung and Apple because both companies operate in more than one business portfolio. Sometimes, this can only be achieved through encouragement, manipulation and coercion if the resistance towards change is inevitable. Samsung does not witness the long queues that Apple witnesses during its product launches. Experts hold this belief despite the fact that Apples products are priced slightly higher than most of its competitors. Strategic Management: Theory: An Integrated Approach. This explains why Apple now considers strategic outsourcing a fundamental principle of achieving efficiency. Acquiring new technological companies will be a strategic move to grow the companys revenues. These business processes will be explained in later sections of this study. (2023, February 23). This quick transition from analogue to digital production was considered a necessary move for Samsung because the companys management believes that a late venture in the digital market was going to be fatal for the company (Henny, 2003). Apple may win at innovation & publicity but when it comes to marketing, Samsung prioritize complete entertainment. In reference to this strategy, Samsungs managing director reported that, Largely we try to put smart products in the market. Apple also accused him of having copied a lot of features and navigation methods. Brand value is closely related to its recognition, meaning that Apple is also one of the world's most recognizable brands. And we paid a lot of attention to our distribution channels. It is famous for beautiful designs and new applications. Over the next three decades, the group diversified into areas including food processing, textiles, insurance, securities, and retail. For instance, the company has properly understood its Korean market and is taking advantage of the existing market opportunities in its primary market. Though the concept of generalizing findings is highlighted as a limitation for this study, the meta-analysis helps to generalize the findings of this research to different (but related) contexts. These amazing companies have made a lot of useful technology to make our life easier. Later, Samsung also decided to sell about $2 billion worth of non-core business so that it could concentrate on its main businesses that account for the companys main revenue stream. Conclusion Both strategies are effective in their own right. Resources may amount to different competencies available to a company such as plant and machinery, finances, human resource, trademarks, patents and other tangible or intangible assets. Some of these ways have been perceived to be unpopular but so far, Samsung does not show any apology for adopting some of these unpopular ways. On the other hand, device solutions division is in charge of memory and device applications development. Though Apple Inc. is considered the number one company in the sales of tablets, Samsung is considered the leader in the sale of televisions. Therefore, to improve its brand image, Samsung decided to focus on the high-end market. SUBMITTED BY: In addition, there was an attached emotional benefit to the games because Samsungs employees felt proud for being associated with the international sports event. It works on the channel marketing concept wherein there are three segments: sales and service dealers, modern retail and distributors. This observation highlights the strong emphasis on educational qualifications as one of the key requirements for Samsungs employees. Therefore, the launch of new products such as Apple television can be countered through the development of efficient marketing and production strategies that will diffuse the influence of the competition in this market. "Apple vs. Samsung: Marketing Strategy & Business Strategy." This spike in sales was attributed to changes in consumer preferences. In addition, the ability of Samsung and Apple to develop downloadable applications has provided a platform where different consumers can download applications that specifically appeal to their lives. This essay is available online and was probably used by another student. From this assertion, Samsung believes that it contributes to the betterment of the society. It will be interesting to see how Apple will be able to overcome the challenges of competing in a more competitive television market and if it will be able to outmaneuver its competitors the way it did with the launch of the itune. Apple is using its mission and vision statements to become a leading innovation company in technology. That act helped Samsung to jump-start market share, and proved to become a viral video content powerhouse. In the recession of 2008/2009, Apple continued to post an impressive sales growth. Bilan de la mise en oeuvre des plans de rponse- Mawuli AMEWUAME - Situation Rseau de prvention des crises alimentaires (RPCA), Evolution_Of_ERP_and_Role_in_Supply_Chain[1].pptx, Situation agropastorale_Traore_March.pptx, Applications of Multivariable differential Calculus.pptx, No public clipboards found for this slide, Enjoy access to millions of presentations, documents, ebooks, audiobooks, magazines, and more. 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. In addition, through the companys culture (introduced by Steve Jobs), Apple seems to be very keen on small aspects about its products. Though secondary research is mainly classified into internal and external sources, this study will mainly rely on internal sources of data because this paper focuses on specific organizations (Apple and Samsung). It is observed that executing a production strategy that meets the soaring demand in the global market for Apples products requires an efficient marketing and supply chain strategy. Partly, the companys struggle to post commendable sales was worsened by the poor performance of the global economy in the past few years coupled with a worsening local economy for South Korea. Samsung has improved and perfected Apples technology and made it reliable and cheap among users. 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. Many companies have tried to defy changing business models and have collapsed as a result. 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). As noted in earlier sections of this study, Samsungs sponsorship of the Olympic Games increased the companys brand awareness significantly. 2023 EduBirdie.com. This strategy paid off. If you dont know where you are going, you will likely end up somewhere else (Chris, 2008, p. 1). Apples business-level strategy is to utilize differentiation as an innovation mechanism. The level of brand awareness realized from becoming one of the leading sponsors in the Olympic Games (alone) tripled after the games. Facebook often face much scrutiny from the public and the media as they are often involved in scandals as mentioned earlier leaking peoples personal nformation to other companies. This educational qualification is a form of benchmark for Samsungs managers and it acts as a sieve to attract the best human resource talent available in the marketplace (and eliminating all irrelevant human resource talents). Quality seems to have surpassed the emphasis on price among todays consumers. 11, Seocho-daero Digital media is responsible for consumer electronics and mobile communications. 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. Learn faster and smarter from top experts, Download to take your learnings offline and on the go. This change highlights the way the internet builds brands over time. 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). From this perspective, the company understands the need to provoke creativity among staff members to achieve profitable innovations. 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. 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. Place in the Marketing Mix of Samsung. We are here 24/7 to write your paper in as fast as 3 hours. %PDF-1.5 The member check technique works by submitting the research findings to the sources or sample sources. 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. (2019, March 10). Apple users buy more brand products from the brand store, both physical and online, than Samsung users. 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