The US consumer base seems to be an inflexible customer pool, which would be harder to penetrate. Jason (2011) observes that Apple should take advantage of the potential for this market segment despite the fact that its primary market is the high-end market. For instance, the recent Thailand flooding disrupted the companys operations because it distorted the supply chain of disk drive for close to half a year (Jason, 2011). The data will be analyzed and segmented into different groups, which are identified by unique codes. This is critical in reducing the cost of production. Similarly, the company has created an unrivaled brand loyalty among its most valued customers around the world. On the other hand, Samsung banks its internal capabilities to mass manufacturing. 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 vs. Samsung: Marketing Strategy & Business Strategy." For instance, a small business owner may not account for competitor actions or the threats that may occur in the business environment. To show the difference between Apple and Samsungs business strategies, Mallin (2011) notes that Samsungs international strategy has mainly been focused on the US market. This move inspired Samsungs competitors to do the same. For example, VISA sought partnership with MSN because it had the strongest online presence as it tried to reach out to a young audience (Jason, 2011). "Apple vs. Samsung: Marketing Strategy & Business Strategy." Apple doesnt use Twitter accounts, Facebook profiles, or indeed have a blog. This analysis only shows the distinction between Samsungs work ethics and western work ethics but it does not propose that Samsungs work ethics are wrong. In early 2000s, the companys management decided to downsize its workforce by about 24,000 employees (Mallin, 2011). Enjoy access to millions of ebooks, audiobooks, magazines, and more from Scribd. In 2011, Apple Inc started to put forward as a fact its design patent over Samsung Electronics Company in the gets together States court and the disputes then expanded to more than fifty questions taken to be judged by law in a great number of courts around the world and became a design patent war. In addition, contrary to popular ideology and business practice, Samsung remains vertically integrated and increasingly diversified as opposed to focusing on some of its main competencies. 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). From this understanding, this paper also seeks to evaluate the performance of Samsung and Apple viz-a-viz their business strategies to understand how their changes in resources (historical analysis) have affected their performance and how these resources compare with other companies in the technological world. 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. "Apple vs. Samsung: Marketing Strategy & Business Strategy." Chris, H. (2008). Samsung's income was similar to 17% of Southern Korea's $1,082 billion cash dollars cash money cash GDP (Samsung, 2012). Apple and Samsung are some of the giant technological companies engaged in the same type of business. A big part of the answer lies in its sheer marketing muscle Samsung spends a bigger chunk of its annual revenue on advertising and promotion than any other of the world's top-20 companies by sales 5.4%, according to Thomson Reuters data. Edubirdie. 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. (2019, May 12). This paper also seeks to establish how Samsung and Apple use their value chain competences as part of their business strategies. However, when considering thier corporate social responsibility programmes they couldnt be much different. Netflix (a movie distribution company) was also faced with the problems of an increasingly competitive and fast growing (movie distribution) business. UNIVERSITY OF MUMBAI Creating Customer Engagement: Marketing Strategies, The Nestle Companys Sales Stagnation in China, Bridgeport Drones Companys Services and Products, Fast-Food Industrys Market Place and Environment, Containerization, Its Pros & Cons, and Future, * Hyperlink the URL after pasting it to your document. 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. 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. Page 1 In this regard, the company promotes diversity of cultures among the employees. Moreover, the media pays a lot of attention to Apple than it does Samsung. The company was initially founded by Steve Jobs in 1976, where he started off with selling computers in his company and then moved towards other products like mobile phones, tablets, televisions, laptops and etc. In a recent press conference made at the Goldmans Sachs business platform, Cook revealed that only one out of four people do not buy Apples smart phones (Mallin, 2011). Samsung perceives the online communication channel as a unique way of communicating to its consumers because it is more interactive and involving. On the other hand, Samsung organization is well organized from the CEO, digital media and device solutions. The influence of a companys business strategy spans across different sectors of a businesss competence areas such as customer retention and resource allocation. However, it is important to point out that this area of competence has been ranked among the best globally (Mallin, 2011). Macintosh. Apple rocked out Samsung by selling 74.8 million iPhones, leaving behind Samsungs 73 million Smartphones sales in 2015. Some of these resources may be wholly owned by the companies but others may also be acquired through partnerships, joint ventures and similar arrangements. Consequently, the company decided to develop online versions of its movies and retail them online. . We will write a custom Research Paper on Comparative Analysis of Apple and Samsung specifically for you for only $11.00 $9.35/page. To complete, this was the marketing mix of Samsung which shows that is a big threat to Apple Inc. Seongjae (1999) notes that most of Samsungs employees do not leave work for vacations or holidays unless they have attained their retirement age. In the episode in this competition is another dig at Apple; Samsungs Grad Pool Party ad was released in May 2013 to promote their latest smartphone, Galaxy S4. However, a companys success through such marketing strategies not only depends on the success in the branding strategy but also on the supporting strategies. For instance, Apple has started making home appliances and HP has started to make televisions. Apple therefore seeks to exploit the potential existing in the growing middle class. You can order a unique, plagiarism-free paper written by a professional writer. If you dont know where you are going, you will likely end up somewhere else (Chris, 2008, p. 1). "Comparative Analysis of Apple and Samsung." Apple is one of those brands for me. In addition, the company derives strength from a large pool of competent engineers who get support from an aggressive research and design personnel. Samsungs focus is to close-in on its competitors such as Sony, and Philips, which have consistently dominated the home appliance market. Apple vs Samsung Strategy - What is Strategy - Strategy Made Simple - 01 7,235 views May 6, 2020 133 Dislike Share Save TheAdvantage 152 subscribers Strategy made simple is a series. The overall direction of a business can only be charted through the proper understanding of its business strategy. 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. Well, we do. Samsung also strives to achieve this reputation, though their main motive is pursuing a pricing strategy that aims to sustain profit growth. The move to the digital market sparked most innovative projects by Samsung, although the company perceived this venture as a risky move at the time (Henny, 2003). b) Talking to the point as we see in their promotions, Apple is to the point, that means one ad, one message and one target (Marketing91, 2019). There is also the possibility of using Microsofts features in the same manner. However, for purposes of this study, we seek to highlight the differences and connections between the different market approaches pursued by Apple and Samsung. Comparative advertising is complex to implement and can be dangerous for those who use it. Promotion in the Marketing Mix of Samsung. 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. Place in the Marketing Mix of Apple Inc. Retrieved from Marketing91: https://www.marketing91.com/marketing-mix-apple-inc/, Marketing91. 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. The iPhone website has clean, clear and witty interface. Its marketing strategies are mainly based on television and print advertisements. Do not sell or share my personal information, 1. Create a community of customers 5. This feature allowed many people to shift from the conventional GSM payment mechanisms to paid VoIP services. The software market is very lucrative and Samsung should acknowledge this fact and divert its resources in the same regard. Samsungs reign as a digital manufacturer has not only been witnessed in the manufacture of televisions and other digital equipments, it has also been witnessed in the microchip market. Fabless silicon design. 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. This statement shows a keen conviction among Samsungs management that its markets have unique needs and therefore, the products to be sold to these markets have to resonate with the unique needs and preferences of the market. 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. Almost everything the company puts out succeeds. Therefore, the true effect size of the data collected from the secondary research sources will be estimated by the meta-analysis. Texas, TX: Texas Peacemaker Publications Llc. In contrast, Samsung is using Social Media such as Facebook to promote its products and all possible channels or marketing. 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 strong brand loyalty among Apples consumers has prompted different researchers to probe the profile of Apples consumers. Disclaimer: Services provided by StudyCorgi are to be used for research purposes only. Apple has a strange strategy when it comes to brand promotion. 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. For instance, the launch of the itunes and icloud are just some of the few software innovations that Apple has ventured. With the diversity of cultures, the same is replicated in terms of personalities, competencies and abilities. Seongjae (1999) made this statement to summarize the philosophy of Samsungs human resource strategy. Apple drafted a proposal to license some of its patents to Samsung for $30 per smartphone and $40 per tablet, with a 20 percent discount for cross-licensing Samsung's portfolio back to Apple . 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). 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