For instance, it would be easy to establish the diversity of the researches obtained from the different types of information sources highlighted in the secondary research information. 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). In contrast, Samsung is using Social Media such as Facebook to promote its products and all possible channels or marketing. However, with increased business opportunities comes more competition. If you use an assignment from StudyCorgi website, it should be referenced accordingly. 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. smartphone industry is dominated by two giant companies: Apple and, Apple is a premium brand associated with a premium income level. Currently, the world does not have a doubt regarding Apples ability to succeed. Deloittes corporate Apple was founded in 1976 by Steve Jobs and his friend Zwynak. But today I will be talking about two main competitors as of right now. 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. 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. It is established that Apples consumers are twice as educated as other consumers in the PC market are (Mallin, 2011). Despite the above intrigues and questions, Deagon (2011) observes that, Samsung and Apples business strategies have been able to convey different ideas we hold of certain technological gadgets today. 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. Now, regardless of which continent one hails from, it is virtually impossible to miss a Samsung brand in the stores. 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. Apples plan to increase its production capacity to suit the growing global demand for its products highlights the existing production capacities in China. 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. Samsung should therefore divert more resources to research and development so that it can come up with new and innovative products that can stake a claim to its dwindling market share. Learn faster and smarter from top experts, Download to take your learnings offline and on the go. 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. Books will also be relied on as credible sources of research information because they contain published texts. In this event, the company launched a series of futuristic products such as mobile phone watches, the PDA-phone, the digital camera cum mobile phone, the MP3 mobile phone and the its latest model of 3G mobile phone (Henny, 2003, p. 6). This area of operation has boosted Apple because most companies do not have the grasp that Apple has over its distribution channels. Apple Inc. (2019, June 19). February 23, 2023. https://studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/. However, recently Apple has been losing out on sales, due to it's narrow product line, premium image, and focus on bringing out one product at a time. In addition, Samsung promotes cultural diversity through disabled vocational trainee programs that empower the disabled within the company. Apples human resource strategy is based on employee excellence as one of its core elements of business success. Apples ability to integrate useful components of its hardware and software components has been identified as a platform that the company uses to decrease its aggregate cost (Mallin, 2011). For instance, the company has properly understood its Korean market and is taking advantage of the existing market opportunities in its primary market. It was the first company, a successful personal computer company, and began expanding and developing it to include manufacturing phones Portable, Bluetooth headsets, and many other products from Apple. If you are the original creator of this paper and no longer wish to have it published on StudyCorgi, request the removal. 4 0 obj This suspicion exists despite the fact that Samsung is considered among the most transparent companies in the emerging market economies. Establishing a companys business strategy has a positive effect on realizing a companys strategic goals. 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. The marketing mix strategic of Apple and Samsung is very well-thought-out because they want to keep and attract as many as possible customers. For instance, the companys senior vice-president in the retail department had no authority to direct other activities within the companys retail chain, other than those described within his roles. Apple still outspends Samsung by a high margin in marketing, but the quality and creativity in Samsung's marketing campaigns for their new products have been exceptional. Therefore, Samsung always strives to be in tune with the constant changes in its internal and external environment. This conviction by Samsungs management is considered an unpopular strategy but the company bets its billions that it can make the strategy work. Currently, other technological giants in the digital market (such as Sony) are becoming more worried about Samsungs growing success because recent reports show that existing technological companies are always seeking to know what Samsung is doing. However, Cooks business strategies are in sharp contrast to Steve Jobs business ideals, which mainly centered on instincts. A quarter of all Samsung employees have PHDs. 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. Second, allowing employee participation in decision-making allows employee to become part of the process. Other hardware manufacturers have tried to adopt the same strategy to no avail. The company strategized to release few products that are highly anticipated in the market. Despite the belief, that Samsungs business strategies are weaker than Apples, there is a common agreement by most researchers that the strengths of the company are equally immense and Samsung may wade through its sustainability challenges. Moreover, the new product designs improved Samsungs status as a young and fashionable brand with strong functions. IvyPanda, 18 Feb. 2023, ivypanda.com/essays/comparative-study-of-business-strategy-for-apple-and-samsung/. Only companies such as Coca Cola, IBM, and Visa have achieved this sort of brand recognition at a global level. Apple has very innovative products which delights (Marketing91, 2019) their customers. With increased internet penetration in most countries, many multinational companies are slowly starting to appreciate the importance of online marketing (Jason, 2011). Apple is the dominating brand in the US market and Samsung holds the lead globally. 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). Apple continued on dominating the Smartphone market within the years; however Samsung introducing Samsung galaxy series in 2013 brought increased competition for it. Samsungs brand value is now perceived to be in excess of $12.5 billion (Henny, 2003). February 23, 2023. https://studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/. However, within these similarities, both companies have different corporate cultures, which differentiate the companies ideals. 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. Apples history of secrecy does not complement the flexibility required in the global map. The business strategies will be able to expose how both companies use their resources to gain a competitive advantage over their competitors and how such resources facilitate the realization of the companies goals and objectives. 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. IvyPanda. The company has formed impressive consumer networks among its most trusted consumers such as the network of imac computers (Mallin, 2011). . About the same time as the launch of the icloud, Apple had already gained reputation as a very efficient company with a strong foothold on its supply chain. This knowledge is useful in understanding the intricacies between the two companies. Samsung does not have a high secrecy regarding its production strategies. Chris (2008) explains that the utilization of a companys resources is important in the fulfillment of a companys stakeholder expectations and market needs. The internal design team has been credited with innovations of modern mobile technologies. The above strategies could be a useful strategy to leverage Apples technological prowess because it would help reduce the regulatory inhibitions of expanding in its traditional market segment. In the third quarter, Samsungs sales records improved drastically to overtake Apples. (2023, February 23). The number Apple Inc. is an American multinational company that designs and sells consumer electronics. Another constant attribute of Apples strategy is that they have been able to maintain a closed-ended business strategy where the public does not know different aspects of the companys operations. To support high employee talent, Apple came up with an effective fellow program, which rewarded employees for their outstanding performance. Steve Jobs often took sick leaves but was present to officiate Apples launch of the icloud. 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). Therefore, Samsung is superior in terms of organizational design. Samsung smartphones are broadly comparable, feature-for-feature, with competitors like HTC, Sony, LG and now Nokia, so why has it become so dominant? External financiers such as banks and other lending institutions often require such businesses to review their business strategies and develop new plans of action that will improve the companys performance. Mainly, the coding technique will be used to organize the huge volumes of research data collected. Apple is valued for its design, a core value of the company. (2019, March 27). High definition DVDs have suffered as a result. Indeed, the Galaxy S2 looked too much like the iPhone 4 and the Galaxy Tab was visually similar to the iPad. The level of brand awareness realized from becoming one of the leading sponsors in the Olympic Games (alone) tripled after the games. Jason (2011) explains that, The effectiveness of Samsungs sponsorship was shown at the ATHENS 2004 Olympic Games which had a positive impact on brand awareness, with an increase from 57% to 62% (p. 6). Employees with the most valuable work experience therefore form a majority of Samsungs human resource pool across all its production plants. VAR (2005) explains that Apple and Samsung share a common business strategy, which is based on producing innovative products. Samsung has improved and perfected Apples technology and made it reliable and cheap among users. It appears that you have an ad-blocker running. In 2012, Apple is expected to achieve far greater growth figures because its retail presence is growing and the global economic situation is slowly improving. This strategy was made by Jobs when comparing his companys strategy with Nike. Probably each of us has seen at least once an advertising campaign from Apple, where you can see how professional and with a lot of elegance these campaigns are made. Do you want to know why Samsungs marketing is better than Apple? Samsung has also connected with major apps and platforms to target audience with social campaigns. So far, Samsung has collaborated with other companies such as Toshiba, and Philips to better their business practices and fortunately, some of these collaborations have increased the companys market share (Mallin, 2011). Keep reading to find out! 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. This development was seen as the main reason why Samsung exited the lower-margin segment of the television market by stopping the manufacture of television sets, which were lower than 27 inches. Samsung also strives to achieve this reputation, though their main motive is pursuing a pricing strategy that aims to sustain profit growth. As mentioned in earlier sections of this paper, this study will use secondary research sources as the main data collection tool. While Apples epicenter lies around how people use its products to make a difference to their life, Samsung emphasizes and advertises its features. This feature allowed many people to shift from the conventional GSM payment mechanisms to paid VoIP services. 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.. A recent observation on one of Samsungs advertisements shows that the South Korean company used the same advertising gimmick to market the Samsung galaxy tablet (Jason, 2011, p. 1). Almost everything the company puts out succeeds. (n.d.). Boston, MA: Cengage Learning. And we paid a lot of attention to our distribution channels. Finally, this paper will source information from online sources of research as the last type of secondary research data. There are also more concerns regarding the intrusion into different cultures around the world because most cultures tend to be exclusionary rather than inclusionary. The company cultivates the secret and maintains the loyalty of its followers, always more numerous to queue up in front of the Apple Store. Samsungs willingness to trade at a discount however shows the inclination of the companys corporate governance strategy to consumer-friendly policies. Some observers have termed this strategy as Crazy and illogical (VAR, 2005, p. 3). Samsung has also achieved tremendous success based on its business strategies. Sonys CEO was quoted as saying, To survive as a global player, we too have to change (Mallin, 2011, p. 5). Tim, P. (1991). Apple unveils Motorola alliance: New move in digital strategy will see music downloads to mobile handsets: Plan aims to keep iTunes ahead of its competitors. Apple Inc. is a successful American company, which has been in existence since 1976 (Mallin, 2011, p. 1). The main advantages associated with this data collection tool are its easy availability and ability to remain current. DSIM Blog is created to help you to know all aspects of Digital Marketing ranging from basics of Digital Marketing to Advance Level Topics, Read our posts and feel free to reach our team for any queries. So far, the Apple brand has made many headlines in different markets around the world for their unrivaled product categories. According to (Interbrand2020), Apple is considered, in 2020, the best global brand with 38% growth and $322.999 m brand value under the tech- nology sector. Apples business-level strategy is to utilize differentiation as an innovation mechanism. 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. Notably, Apple has organized different expos in the European and American markets where these loyal customers have met. 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. Need a custom Research Paper sample written from scratch by Its consistent focus on the hardware market may prove to be disastrous in the long-term because it is a very risky gamble. Samsung is known as a great brand but it is not greater than LG for home appliances. The second battlefront for Apple will be the stiff opposition forged by existing content distributors. This was a workable business strategy because the companys customer base grew by close to 1,800% (Jason, 2011). Apple's business strategies are different and depend on product models. The first goal of improving the companys brand awareness in the international platform was however intended to beat its rival, Sony, which also enjoyed positive global brand awareness. This provides the company with an opportunity to become a global market leader in technological products. To sum up, we discussed the positioning strategies of Samsung and Apple companies. The scope of this study includes the business strategies adopted by Samsung and Apple since their inception. In the recession of 2008/2009, Apple continued to post an impressive sales growth. Indeed, Apple cemented its name as a technology leader in terms of innovations. 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. Samsung also uses this market as a testing ground for its new products. Apple rocked out Samsung by selling 74.8 million iPhones, leaving behind Samsungs 73 million Smartphones sales in 2015. 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. Finally, change implementation requires support from other stakeholders. iPad is a line of tablet computers designed, developed and marketed by Apple Inc., runs the iOS and iPadOS mobile operating systems (iPad, 2019). The findings of this study will therefore only be limited to the activities/strategies of Samsung electronics and not the entire Samsung group. However, there are more strategic exclusive partners of Apple who take care of its distribution (Marketing91, 2019). Considering this scenario, it is interesting to know what components of Apple and Samsungs business strategies have contributed to this command in the tablet and Smartphone markets. professional specifically for you? Apples success during this period was evident in its sudden rise of stock prices. 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