The first goal of improving the company’s brand awareness in the international platform was however intended to beat its rival, Sony, which also enjoyed positive global brand awareness. Apple Differentiation Strategy. This analysis also exposes how these resources compare with first-class resources, which are expected of existing technological companies in today’s market. By sampling the case studies of Apple and Samsung’s business strategies, we see that both companies perceive the international market to be the new frontier for sustaining their business operations. It is observed that without the inclusion of these strategies, Samsung’s success in brand awareness could not have a rich meaning (Jason, 2011). For instance, it is observed that even though many people (and small companies) do not understand the exact workings of the Smartphone, Apple has been able to market the Smartphone (through the iphone) as an important component of modern lifestyle. You will commonly find Apple ads to be clear and crisp in their message. However, Cook’s business strategies are in sharp contrast to Steve Job’s business ideals, which mainly centered on instincts. Jason (2011) notes that Samsung’s strategy is informed by its tight grasp on the emerging markets. Maintaining Brand Reputation & Loyalty The need to continuously develop and implement new differentiation It will be very difficult to predict the timing and severity of the competition. This thesis research is going to analyze the marketing strategy Samsung has used for some of its smartphone devices in the Smartphone market. “In the new market for digital music players, Samsung’s three-year-old Yepp is behind only the Rio of Japan’s D&M Holdings Inc. and Apple Computer (AAPL) Inc.’s iPod. To expose further the difference between Samsung and Apple’s business strategies, Jason (2011) emphasizes the fact that Samsung continues to focus its marketing strategy on the developed markets as opposed to the developing market. Samsung and Apple however share the belief that the production of futuristic and innovative products is the key to future company survival. 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. For instance, in the past, different companies used to stick to their traditional brands and certain technological gadgets served only one function. Samsung is of the opinion that it can overtake Apple in the sales of tablets because it believes that its competencies in hardware manufacturing, functions and operating systems surpass those of Apple. Apple is an American corporation that designs, manufactures and sells electronics, computer hardware and software, and personal computers. “If you don’t know where you are going, you will likely end up somewhere else” (Chris, 2008, p. 1). Apple has pursued this strategy for a long time and evidence shows that it is unapologetic for pursuing this market strategy. Looking forward, Samsung expects to take advantage of increased internet penetration in most of its primary and prospective markets to introduce newer technology. Samsung’s success is therefore an all-rounded success that is shared by many people. This study will assume that there are no time variations between the business strategies adopted by the two companies. High definition DVDs have suffered as a result. Samsung and Apple have become more aggressive in pursuing different tactics to gain an upper hand in the tablet and Smartphone markets. Samsung’s successful pricing strategy is mainly attributed to its proficiency and dominance in the chip and display market. Over a span of three decades, Apple Inc. has been able to establish itself as a force to reckon with in the electronics market. Therefore, meaningful research can still be obtained with a small case study or a collection of relevant cases. The data analysis section will use four tools. Other hardware manufacturers have tried to adopt the same strategy to no avail. The above strategies could be a useful strategy to leverage Apple’s technological prowess because it would help reduce the regulatory inhibitions of expanding in its traditional market segment. This analysis will be focused on evaluating Apple and Samsung’s business strategies based on their global pursuits. The decision to sponsor the Olympic Games was also part of Samsung’s acknowledgement that sports play a vital role in the betterment of the society. 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). The owners of Galaxy S5 wander around them and are not at all embarrassed when the battery of their phone announces their weakness by notification. This approach is seen to be successful in the sponsorship of sporting events such as the world Olympics. Here, it will be easier to see which business portfolios fuel the success of both companies and which ones increase the chances of failure for both companies. Apple’s human resource strategy traces its roots to Steve job’s business principles. Samsung’s 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. Projects that are undertaken without his input therefore tend to take a longer time before completion. Samsung electronics is also engaged in the same type of business as Apple because some of its main products have been compared to Apple’s. “Nike makes some of the best products in the world – products that you lust after, absolutely beautiful stunning products. Just get rid of the crappy stuff, and focus on the good stuff” (Jason, 2011, p. 4). Here, the computation of the findings and the data analysis process will be done. Read more about the marketing mix of Samsung and its importance. The Korean market was among the first market to enjoy Samsung’s innovation. Establishing a company’s business strategy has a positive effect on realizing a company’s strategic goals. However, it is important to point out that this area of competence has been ranked among the best globally (Mallin, 2011). Samsung has also achieved tremendous success based on its business strategies. However, they also make a lot of crap. The Promotional Strategies Used by Apple and Samsung While both firms produce and distribute similar products in terms of Smartphones, they employ different marketing strategies to reach out to the customers. The aura of Steve Jobs still hangs in the brand universe introducing a notion of worship. The US consumer base seems to be an inflexible customer pool, which would be harder to penetrate. It almost seems like Apple has created a very strong brand following by remaining unique to its competitors. Therefore, Samsung always strives to be in tune with the constant changes in its internal and external environment. Apple’s online presence is also firm, especially with the existence of a virtual marketplace where the company sells digital content through App store, itunes, iBookstore among other online platforms (Mallin, 2011, p. 1). For instance, Apple Inc. was among the first multinationals to have created a lot of capital in its initial public offer (IPO) after Ford Company (Mallin, 2011, p. 1). The Apple television is one such product, which has caused a lot of stir in the technological world. The database is updated daily, so anyone can easily find a relevant essay example. Though Samsung and Apple specialize in different aspects of hardware and software manufacturing, there has been a strong competition between the two technological companies. Both companies therefore strive to make innovative products the key driver to their production strategies. Primary research would however not contain this bias. Samsung’s strategy is however focused on the hardware market. Thousands of athletes who took part in the Olympics sports graced Samsung’s stands and made contact with people at home because the company established an online communication center for participants. From the above background, it is important to acknowledge the importance of business strategies. It is estimated that Apple’s stock price rose more than ten times (Mallin, 2011). Porter explains that a company’s activities can be easily grouped into two segments: primary activities that involve the utilization of a company’s resources to produce the company’s main products and services, and secondary activities that improve the effectiveness of a company’s primary activities (Chris, 2008). However, even in setting its eyes on the goal, the company acknowledges that it operates in a dynamic and fast-paced world. For instance, Apple has started making home appliances and HP has started to make televisions. Apple Inc.: Product Portfolio Analysis. The value chain analyses will be considered an integral part of the companies’ business strategies because it will also be considered an important aspect that defines the strengths of both businesses. Samsung has not risen to the top by copying its competitors or levering its resources; it has been a dominant player in the technological industry by adopting unique competitive strategies. Through this conviction, Samsung works towards adopting socially and environmentally right practices to characterize its operations. For instance, a company’s business strategy is the best indicator for determining a company’s financial health. A positive brand image (characterized by improved quality and better pricing) works for the company and consumers alike because the company enjoys improved profitability while the consumers enjoy improved product quality. In fact, collectively, the two companies are said to stake claim to about 95% of the profits in the Smartphone market (Deagon, 2011, p. 1). Challenges a) b) c) Is it possible to increase profit margins while maintaining product differentiation strategy ? they make high quality items that their competition would find … 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 company’s existence around the world) (Henny, 2003). From this assertion, Samsung believes that it contributes to the betterment of the society. Apple established a reputation as an innovator by offering an array of easy-to-use products that cover a broad range of segments. Obviously, there are some concerns over monopolistic tendencies because Apple is considered among the most valuable companies globally. Employees with the most valuable work experience therefore form a majority of Samsung’s human resource pool across all its production plants. 1) Apple Apple’s Iphone is without doubt the number 1 Samsung competitor when we talk about high end smartphones. To Samsung, venturing into the high-end market improves the company’s product quality and profit margins. For instance, IBM was known to be a very strong hardware manufacturer but after the business landscape changed to the software market, the hardware manufacturing giant was able to save itself from being obsolete to become one of the most competitive companies today. Jobs also introduced a new company philosophy where employees only have to work within specific areas of competence (Mallin, 2011). Apple uses a multifaceted differentiation strategy in which they are innovators, capitalize in its brand and seeks to offer excellent customer services. Apple believes that it can attract and retain the best human resource strategy by providing a strong incentive to leave the company so that weak or demoralized employees can be motivated to leave the company. The company has been unapologetic for pursuing this strategy and despite the fears of the global recession; the company has consistently maintained a high-end marketing approach. Considering Samsung won the first round of the lawsuit (filed by Apple), experts observe that the company’s market strategy has been increasingly confrontational and aggressive. 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. For instance, it should be understood that whatever action taken by a business is done within the confines of a strategy. The new company strategy informed the company’s decision to discontinue the production of television sets, which were below the 26-inch specification (Mallin, 2011, p. 5). Long leader in the smartphone market since the iPhone, Apple has been dethroned by Samsung. Apple should therefore focus on meeting its surging demand and Samsung should reevaluate its entire business strategies. VISA sought the services of MSN to create more brand awareness about a new promotional campaign aimed at reaching out to young people aged 18-29 through a website, which was custom designed to accommodate the campaign titled Happen (Jason, 2011). 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). As part of Samsung’s strategy to dominate the digital market, the South Korean company hopes to eliminate the bottleneck challenges and the lack of uniformity in its production strategy (as some of the main barriers preventing it from ascending to the top of the digital market). This area of operation has boosted Apple because most companies do not have the grasp that Apple has over its distribution channels. It represents one of the company’s key areas of competence because the company has achieved a high level of success on the memory chip market. Nonetheless, Samsung’s main goal is to reap more profits in the wake of dwindling sales by focusing on a customer group that buys goods at a premium. In the US alone, it is difficult to miss Samsung gadgets such as high definition plasma televisions, mobile phones, digital cameras and other technological gadgets in any electronic shop across the country. It has managed to beat companies such as Samsung who practice cost leadership strategy. Similarly, the company’s net margins significantly improved from a mere 0.5% to about 13% (Peggy, 2002). The Promotional Strategies Used by Apple and Samsung. A company’s business strategy therefore determines a company’s long-term health. May 28, 2019. https://ivypanda.com/essays/comparative-study-of-business-strategy-for-apple-and-samsung/. Samsung’s international marketing strategy has therefore been focused on the US market. This statement has a strong implication in businesses because the tactics and methods used by businesses in undertaking their daily business operations define the future direction of their fate. Chris (2008) explains that. Some of these resources may be wholly owned by the companies but others may also be acquired through partnerships, joint ventures and similar arrangements. This level of brand awareness only came second to Coca Cola (Henny, 2003). For full functionality of this site it is necessary to enable JavaScript. There are many lessons that can be learned from the Neflix case. Samsung does not share specific sales figures regarding its business portfolios. Different aspects of Apple’s operations have been perceived to be responsible for Apple’s success. This analysis will be an important tool in benchmarking the performance of Samsung and Apple viz-a-viz their business strategies. The strategies pursued by both companies are aimed at increasing their market share in the global environment. From this understanding, some researchers note that Samsung and Apple share similar business strategies while others note that the two companies have different business strategies. To support high employee talent, Apple came up with an effective fellow program, which rewarded employees for their outstanding performance. However, even with the previous domination of the technological market (with international technological brands), Samsung has been able to establish itself as a strong brand. One such reason is the market size for the television market and the potential for premium pricing as a result (VAR, 2005). Through this shift, Samsung made many technological gadgets available to its customers and easily, the company shot to the top of the leadership pyramid in the digital market. However, Apple’s corporate culture has been associated with southwest airlines, and Microsoft (Mallin, 2011). Under the leadership of Steve Jobs, Apple was able to make a name for itself in the technological map. Samsung perceives the online communication channel as a unique way of communicating to its consumers because it is more interactive and involving. This movement transitioned Samsung’s position as the leading company in the digital age to the leading company on the innovative front. From the above sentiments, many researchers peg a lot of hope on Samsung but Apple strategies are perceived to be far more effective. For instance, the company has properly understood its Korean market and is taking advantage of the existing market opportunities in its primary market. This scenario depicts a situation where there will be a strong connect between globalization and the comparative attributes for this research topic. This analysis only shows the distinction between Samsung’s work ethics and western work ethics but it does not propose that Samsung’s work ethics are wrong. This observation is true because of the leading status of the US market on the international front. IvyPanda. 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. Samsung and Apple have similar products and operational models, but a huge disparity in profit. 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). However, for purposes of this study, we seek to highlight the differences and connections between the different market approaches pursued by Apple and Samsung. The scope of study will also not be limited to the type of business strategies adopted by the two companies. It is at this point that Apple changed its name to Apple Inc. after the company shifted its business focus from making personal computers to other technological gadgets such as mobile phones and music players. For instance, Samsung’s galaxy tablet has been compared with Apple’s ipad, and Samsung’s Galaxy S mobile phone has been compared with Apple’s iphone (Mallin, 2011). Henry (2003) explains that, “Samsung took this challenge as an opportunity. Through the findings of this paper, we also see that a quarter of all Samsung employees have a PHD. Apple also spent more money on its Research and Development. One such aspect is the company’s supply chain strategy. Samsung's research spend is 5.7 percent of its revenue, compared to 2.4 percent for Apple. When reviewing the history of Apple, it is evident that this attitude permeated the company during its peaks of success. Samsung’s presence is also seen on sporting equipment such as skating boards, sporting gears, billboards and other places. Its consistent focus on the hardware market may prove to be disastrous in the long-term because it is a very risky gamble. Will follow a series of pungent attacks still based on the comparison between the technical capabilities of Apple and Samsung products. This phone was equipped with another feature where users could watch live television on their phones. The efficiency of its business strategy has given Apple an edge in reduced supply chain costs of up to a half of the normal costs incurred by other hardware companies (Mallin, 2011). Apple Inc. has a global presence in 10 countries around the world and it runs 357 retail stores in these locations. Jason (2011) explains that, “The effectiveness of Samsung’s 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). The site ran for about three months and about five million people visited it (Jason, 2011). Samsung business strategy is marked with a high level of flexibility in a way that the company is determined in changing its strategy dramatically according to changes in external business environment. 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). 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). 2 Motorola (MOT) Inc. in handsets sold, it has just passed it in overall global revenues” (Jason, 2011, p. 13). London: Marketing Week. 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. In the midrange, they could look at Intuit ($17B market capitalization) though that might raise regulatory flags. Mallin, M. (2011). This observation highlights the strong emphasis on educational qualifications as one of the key requirements for Samsung’s employees. Apple’s marketing strategy has historically been focused on appealing to high-end customers. It is almost impossible to point out that Apple has differentiated itself from its competitors by remaining unique. Through this analysis, we will also be able to establish that a company’s business strategy has a big role in determining a company’s business actions. 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. Maintaining Brand Reputation & Loyalty The need to continuously develop and implement new differentiation strategies to sustain competitive advantage d) B) Emphasis will be given to the business actions undertaken by the two companies outside their primary operating environments. Through this conviction, Samsung strives to ensure that all its operations are done fairly and respectfully to protect the interests of the company’s stakeholders. However, observers estimate that the South Korean company sold about 35 million Smart phones in 2011 (between October and December) (Deagon, 2011, p. 1). Though, Samsung and Apple alone assume 70 percent control of the market, and that should worry other players. Like other multinational companies around the world, Apple has forged a close working relationship with China. Samsung managed to do so and it consequently made a lot of money as a result. 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. The company’s success and main business competence has been its success in the ipod, iphone and ipad markets. It is estimated that the cost of chips and displays accounts for about 90% of the cost of making new technological gadgets (Peggy, 2002). The online marketing strategy has therefore been perceived to be very efficient and Samsung has adopted this strategy as part of its core marketing strategies. Finally, this paper will source information from online sources of research as the last type of secondary research data. However, due to the ongoing court battles between Apple and its rivals, the company is expected to spend a few million dollars settling these cases but in equal regard, observers do not see this move as having a significant impact on Apple’s financial books (Jason, 2011). IvyPanda. Experts note that Samsung’s business strategy is therefore unsustainable and it is going to suffer the consequences of sticking to the hardware market. This strategy was made by Jobs when comparing his company’s strategy with Nike. Through this understanding, many people now believe that a Smartphone is an important accessory that can improve a person’s productivity in today’s fast-paced world. This money has been termed as more than what the company needs to use for an unforeseen eventuality and some observers note that it is increasingly difficult to ignore the potential that this money has for Apple. Unfortunately, your browser is too old to work on this site. Yet hardware innovation is only half the battle. As evidenced in this paper, information from case studies (such as court cases) are highly relied on to develop a framework for the understanding of the research problem. ⏰ Let's see if we can help you! IvyPanda. Samsung does not witness the long queues that Apple witnesses during its product launches. The company believes the Apple television is going to be a big project for the company because of several reasons. 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