Place in the Marketing Mix of Samsung. For example, the company limits the number of vacations its employees can take within their working life. However, unlike his former boss, Tim Cook, the new company CEO, has never failed to discuss the future of Apples business strategy in recent times. Apple has gained customer loyalty and brand recognition due to its diversification strategy and fulfilling customers desires (Khan and Alam, 2015). 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. During the 90s period, Apple tried to reinvent its products by launching new product lines such as Apples Newton which proved to be unsuccessful in the market. In addition, there was an attached emotional benefit to the games because Samsungs employees felt proud for being associated with the international sports event. This approach is seen to be successful in the sponsorship of sporting events such as the world Olympics. Samsungs success has also been attributed to the same factor although there is no single individual attributed to the overall company success. 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). 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. Each level of organizational structure is led by a manager who reports to a senior authority. Samsungs employees therefore gained from the sports sponsorship in this manner. 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. Furthermore, Chris (2008) explains that it is often difficult for managements to oversee all aspects of a business and still ensure that their competencies are working effectively. With increased competition, the prices of hardware products have even decreased further, especially with the growing dominance of Chinese products in the global market. Samsung is also known to have a remarkable sales record in LCD displays and LED screens which puts it at the first spot in the world (compared to other companies, which sell LED and LCD screens). Moreover, the new product designs improved Samsungs status as a young and fashionable brand with strong functions. Samsung always comes up with innovative ways to mock apple, but this time, it elevated its concept to a different level. Therefore, Samsung strives to provide all its employees with the right opportunities and resources to achieve their full potential. To support high employee talent, Apple came up with an effective fellow program, which rewarded employees for their outstanding performance. Long leader in the smartphone market since the iPhone, Apple has been dethroned by Samsung. 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. These competencies are perceived as those components of the companies business strategies that are vital to the realization of competitive advantages. Strategic Marketing Fahad Umar Abstract: The objective of this paper to give a detailed analysis of strategic marketing in Apple Inc. Samsung does not share specific sales figures regarding its business portfolios. This paper was written and submitted to our database by a student to assist your with your own studies. 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. Keep marketing and products simple 2. Self-Taught: Which is the Better Option? 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). This level of brand awareness only came second to Coca Cola (Henny, 2003). To sum up, we discussed the positioning strategies of Samsung and Apple companies. 23 February. The number Apple Inc. is an American multinational company that designs and sells consumer electronics. In fact, the company uses its chips to develop its products. (2019, March 27). 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. The first strategy adopted by the company was using available resources in brand building. On the other hand, iPhone does not support such features compared to Samsung android gadgets. It promotes through TVCs. This vision is shared by Samsung whose mission is to be a global leader in electronic manufacturing and digital media. Though the memory chip business is prone to the challenges of its cyclical market, Samsungs presence in this market segment is unrivaled. How to outmaneuver this competition is the most difficult challenge for the American company and it has to go back to the drawing board to identify how it will manage this challenge. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. 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. Other well-established brands in the market such as Google and Apple also joined the frenzy and significantly dented Netflixs prospects of increasing its customer base. Market Segmentation Of Apple 1346 Words6 Pages a. Apple can utilize a product differentiation strategy. This move was unpopular among the workers but it was initiated by a change of management. The political, technological or economic forces, which are prevalent in the operating environment, are just a few examples of some of the most prevalent forces businesses have to manage. If Apple doesn't file a suit, then Samsung's dominant strategy is to, of course, file a suit. These business processes will be explained in later sections of this study. This view is aimed to developing a connection between the performance of Samsung and Apple in the technological market. This strategy was made by Jobs when comparing his companys strategy with Nike. The purpose of this report is to compare and analyse the marketing mix strategies of Apple and Samsung and also the final aim is to create recommendations of the companies. For instance, recent years have seen a rapid decrease in the price of television sets and DVD players. 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). Learning a companys business strategy is an important predictor of the companys performance in the business environment. For example, Samsung has consistently stuck to the manufacturing industry, especially after the success of the microchip market segment. 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 the recession of 2008/2009, Apple continued to post an impressive sales growth. 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. To support the above assertion, Samsung explains that, The result is that all of our productsfrom memory chips that help businesses store vital knowledge to mobile phones that connect people across continents have the power to enrich lives (Henny, 2003, p. 5). Founded in 1938 by Byung-Chull Lee in Taegu, Korea. What industry is Apple and Samsung in? Finally, change implementation requires support from other stakeholders. The slogan It does not take a genius was clearly referring to the Genius , experts of the Apple Store. Observers note that this gimmick introduced a new twist to the growing market wars between the two technological giants, especially after some market observers hold the belief that the android operating system is nothing more than a cheap replica of Apples ipad and iphone (Jason, 2011, p. 1). However, even in setting its eyes on the goal, the company acknowledges that it operates in a dynamic and fast-paced world. In fact, Chris (2008) estimates that many changes in the business environment amount to many business opportunities and increased threats. Web. Apple Marketing Strategy: 8 Precious Lessons to Learn 1. Some observers note that Apples strategy of defeating its competition is by widening the competitive moat but at the same time, the company is good at preparing the grounds for future product launches. Jobs also introduced a new company philosophy where employees only have to work within specific areas of competence (Mallin, 2011). From the new strategy, the company can optimize on diverse product models that serve the interest of large market share (Hills, Jones & Schilling, 2014). The company has formed impressive consumer networks among its most trusted consumers such as the network of imac computers (Mallin, 2011). Retrieved from Marketing91: https://www.marketing91.com/marketing-mix-of-samsung/, Marketing91. The biggest limitation to this study rests on the nature of the research methodology. It is estimated that Apples stock price rose more than ten times (Mallin, 2011). 1 0 obj Morrison, S. (2004). Apple has made a business strategy of focusing on design and user experience while outsourcing elements such as manufacturing. Should you have any questions regarding our The companys growth into profitability was also characterized by the Intel transition that occurred in the 2005-2007 period when Apple merged its computer production with Intel (Mallin, 2011). Retrieved from Wikipedia: https://en.wikipedia.org/wiki/Samsung, The Economic Times. Samsung is a South Korean multinational conglomerate headquartered in Samsung Town, Seoul. Promotion in the Marketing Mix of Samsung. 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. (2010). The scope of this study includes the business strategies adopted by Samsung and Apple since their inception. Its an integral part of our companys philosophy (Henny, 2003, p. 5). Apple approach to achieving innovation in the company is based on cultural diversity. Retrieved from The Economic Times: https://economictimes.indiatimes.com/definition/marketing-mix, Get original paper written according to your instructions. The site ran for about three months and about five million people visited it (Jason, 2011). The constant attribute here is that people will always undertake business actions that they believe will draw them closer to achieving their business objectives. If you dont know where you are going, you will likely end up somewhere else (Chris, 2008, p. 1). The introduction of Samsung tablets and smartphones rivals Apples products in all manners. Samsung, like its biggest competitor Apple, has a wide range of products such as Smartphones, Tablets, Laptops, TVs, etc. There is some kind of peculiarity between the Marketing Strategies of both the brands. Xiaomi is the bronze medalist, picking up 190 million sales as a whole in 2021 despite not even being sold in the U.S. Traditionally, the company relied on revenues from movie rentals but after the digital age set in, the company found it increasingly difficult to compete with online distribution channels. By extension, a companys business strategy defines the best approach a companys management can take in securing the future of a business. Though the home appliance market is still dominated by the traditional Japanese and American companies, Samsung is increasingly gaining the reputation as an innovator in this market segment. But Apple's success isn't just a matter of making a lot of money, or selling a lot of products. Apples business-level strategy is to utilize differentiation as an innovation mechanism. However, these product have been developed with the anticipation that the turnover will increase in the future. Some of the strategies adopted by both companies are similar in composition but others have inherent differences. If you use an assignment from StudyCorgi website, it should be referenced accordingly. Several observers such as Donald Rumsfeld have identified that Apple does not fail to surprise its competitors by producing future-oriented applications (Jason, 2011). The study of business strategies therefore provides a big picture regarding how different aspects of a businesss operations work towards achieving the ultimate business goals. 2023 EduBirdie.com. Enjoy access to millions of ebooks, audiobooks, magazines, and more from Scribd. Obviously, there are some concerns over monopolistic tendencies because Apple is considered among the most valuable companies globally. Texas, TX: Texas Peacemaker Publications Llc. For instance, any move by apple to acquire another technological company (as part of its expansive and ambitious plan to strengthen its market base) would be viewed with extreme suspicion (Jason, 2011). The ad praises the virtues of the Ultra Power Saving Mode feature that disables connections and shifts the screen to grayscale for longer battery life. 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 nature of the research topic is also too complex to be answered by a yes or no response and therefore the use of the qualitative research design will be able to expose the underlying dynamics of the research topic. 40th floor This mission statement supports Samsungs long-term goal of delivering high-tech and reliable products to many people across the globe irrespective of their socio-economic status. (2002).Samsung continues its high-end strategy. Instant access to millions of ebooks, audiobooks, magazines, podcasts and more. The new Samsung flagship smartphone will be marketed as high-end, most-preferred gadget by media influencers, and must-have accessories or digital items for the 18-36 years old, earning $50,000 annually. On the other hand, Samsung has a renowned green management system that ensures the companys domestic and global facilities conform to local and international environment regulations. Among the most notable advantages, include the availability of current and rich information. Second, allowing employee participation in decision-making allows employee to become part of the process. Samsungs strength in the same market has also seen other companies lose a lot of money as Samsungs stamps its authority in this market. StudyCorgi, 23 Feb. 2023, studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/. Keep reading to find out! Direct comparisons, ironic winks, subtle dedications or questioning of Apples brand image, Samsung has mastered the denigration of his rival and does not hesitate to abuse in each of its advertisements. Therefore, Apples supply chain strategy involves a well-researched and efficient manufacturing; logistics and procurement strategy that has liberated the company from incurring excess costs associated with maintaining large inventories and distributing high product volumes. 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). Samsung makes use of all major social media channels, celebrity endorsements, and all other good & effective marketing strategies. StudyCorgi. Currently Samsungs strategy focuses on producing high-end goods, which are designed to appeal to the high-end market segment. Samsungs willingness to trade at a discount however shows the inclination of the companys corporate governance strategy to consumer-friendly policies. To complete, this was the marketing mix of Samsung which shows that is a big threat to Apple Inc. Samsungs success is therefore an all-rounded success that is shared by many people. However, the biggest challenge to adopting this strategy is seen from the fact that the high-end market is not expanding as fast as other market segments do. 2. The first product of Apple was the Apple I (Deffree, 2019). It appears that you have an ad-blocker running. For example, the company's 4Ps encompass multinational operations in the consumer electronics market and the Internet services market . High definition DVDs have suffered as a result. Samsungs strengths mainly come from a few business competencies such as the success in the memory chip market, which accounts for nearly half of the companys profits (Jason, 2011). The Apple television is one such product, which has caused a lot of stir in the technological world. Morrison (2004) notes that, Samsung is operating under a risky corporate governance strategy because most of its investors stand to lose if the company does not boost its sales in the coming years. Samsung is known as a great brand but it is not greater than LG for home appliances. The structure's product-based divisions enable strategic management specific to product development. (2005). Through this conviction, Samsungs management established that the sports-based strategy fit well with the companys values and philosophy. The company also dictates the manner it wants its brand to be mentioned in the public arena because it bears a lot of importance to the usefulness of positive branding. 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. Similarly, Samsung is giving importance on advertisement of Galaxy S. It promotes mobile phones- bringing a dark blue interface in contrast to the white background brought by Apple. (2023, February 18). This shift was also informed by the fact that Samsungs products were increasingly being perceived as a as cheap brands. This emphasis is explained by the importance of the American market as a test platform for the launch of new products in the international market. Tim, P. (1991). Samsung is doing a lot of things to prove they are innovative and therefore, can experiment and learn from their experiences. The first week of study will be dedicated to gathering research information for purposes of the study. Apple employs the blue ocean strategy as a competitive plan to beat its rivals such as Samsung. Samsung is banking on marketing when Apple plays all its cards on the design of its products. Notably, Apple has organized different expos in the European and American markets where these loyal customers have met. Jason (2011) observes that Apple and Samsungs marketing strategies are similar because of their focus on the high-end market. The US consumer base seems to be an inflexible customer pool, which would be harder to penetrate. 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). The ability for Apple to assimilate its activities in the global map is also another hindrance to the companys expansion plans because the company does not have a good record of assimilating its activities into others. Samsungs sponsorship strategy has seen the multinational company pay huge sums of money in such ventures because the companys management believes that sports plays a huge role in stabilizing the companys bottom-line. The strength of these companies cannot be underestimated if history is anything to go by. Looking forward, Samsung expects to take advantage of increased internet penetration in most of its primary and prospective markets to introduce newer technology. One such aspect is the companys supply chain strategy. Have no time to work on your essay? The company tends to look for innovative ways of formulating its competitive strategies. Almost everything the company puts out succeeds. 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. Digital media is responsible for consumer electronics and mobile communications. PESTLE Analysis Impact of Political Factors on Apple Apple is one of several American technology companies that has gained a large amount of cash. The internal design team has been credited with innovations of modern mobile technologies. 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