Most Samsung employees are therefore seen to take vacations and leaves soon after retirement. In Apple's marketing strategies, you won't typically find a lot of voice-overs, special effects, long product feature lists or colourful graphics that distract from the actual product being marketed. Samsung is known to imitative its main competitor Apple in product in design, functionalities, as well, as marketing strategy. 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). This spike in sales was attributed to changes in consumer preferences. For Apple's situation, the premium pricing strategy includes generally high costs. This provision is considered unpopular in most western economies but Samsung has been able to implement it because of its diverse work locations. 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. The software market is very lucrative and Samsung should acknowledge this fact and divert its resources in the same regard. Samsung then acknowledged that the high-end market segment was more competitive than the low-end market and it shifted its marketing strategy in this regard (Henny, 2003, p. 4). Samsungs successful pricing strategy is mainly attributed to its proficiency and dominance in the chip and display market. This essay is available online and was probably used by another student. The iPhone advertisement of Apple is similar, always with white background, exotically alluring to the users. This report focusses on these two companies and their marketing mix strategies. Samsung and Apple have become more aggressive in pursuing different tactics to gain an upper hand in the tablet and Smartphone markets. Definition of Marketing Mix. 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). 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). For instance, Samsung plays a huge role in meeting the demand of about 20% of the Korean population who buy new handsets every six months (Henny, 2003). There is some kind of peculiarity between the Marketing Strategies of both the brands. Apples internal capability is complemented by an excellent industrial design. Other proposals have been made by Mallin (2011) after he suggested that, Apple could buy a no-name bank and quietly use their existing financial infrastructure to leverage its 200 million iTunes customers and software expertise into an Apple iWallet. 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). Business strategies are known to be the path taken by different companies as they try to outdo their competition. Digital Marketing Course Detailed Brochure. Introduction Apple Inc. (Apple) is an American multinational technology company established by Steve Jobs, Steve Wozniak and Ronald Wayne in 1976 (Biography, 2017). Mainly, the coding technique will be used to organize the huge volumes of research data collected. The company is therefore up scaling its business plans in line with the vision of the new management. A STUDY ON PRICING STRATEGIES OF SAMSUNG AND APPLE This level of brand awareness only came second to Coca Cola (Henny, 2003). Here, he said that. According to Interbrand [4] and Forbes [5], the Apple brand is worth US$234.241 billion and US$205.5 billion, respectively. The reputation of Apple as it is today is based on the desire strategy that it sets up at each product launch. This gives a Nash Equilibrium in which both companies file a . However, these product have been developed with the anticipation that the turnover will increase in the future. On the other hand, pricing strategy is critical for Samsung. <> This downward push has been precipitated by lower wages and cheaper engineering technology from the Chinese market. Observers perceive this business strategy as a confusing and risky one, especially if Apple were to apply the same strategy to some of its close business associates such as suppliers, distributors, and social media (VAR, 2005, p. 3). The growth pattern of Samsung electronics: A strategy perspective. Because Samsung has a wide range of products, the company uses many price strategies. The interpretive technique is the first type of data analysis tool used in this study. Apple is an American company that manufactures personal computers and accessories. The companys entry to the developing market is however not a new phenomenon. Many companies have tried to defy changing business models and have collapsed as a result. The closed-ended approach to Apples operations has seen the company significantly reduce the negative consequences of publicity. In contast to this Delottes have seen the benefits having a good social responsibility programme can have and made the most of it with the help they offer ranging from the local community to worldwide charity organisations. 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. Fortunately, Samsung has an edge above its competitors in this market segment because it supplies some of these accessories to its competitors, thereby having an upper hand above them. Samsung electronics is also engaged in the same type of business as Apple because some of its main products have been compared to Apples. Apple has many various ways to distribute its products. Apple and Samsung. Samsung does not have a high secrecy regarding its production strategies. Telephone services were also available at these centers. On the other hand, Samsung has a large pool of engineers who design products internally. For instance, Apple has started making home appliances and HP has started to make televisions. Experts note that the tablet market is quickly expanding, and as at 2011, the potential of the market is estimated to be about 50 million units (Deagon, 2011, p. 1). IvyPanda, 18 Feb. 2023, ivypanda.com/essays/comparative-study-of-business-strategy-for-apple-and-samsung/. 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. Few companies are known to adopt a counter-intuitive strategy to improve their business success. FOR THE IvyPanda. However, even in setting its eyes on the goal, the company acknowledges that it operates in a dynamic and fast-paced world. 40th floor For example, a few years back, an Asian car manufacturer experienced a great spike in car sales that had a cup holder (Jason, 2011). But today I will be talking about two main competitors as of right now. It is still not clear where Cooks strategy will land the company but there is no doubt that Apples labs are quickly playing by Cooks strategies. 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. 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. Rmon Elsten, Vice-President of the Swiss Contact Center Association, Watch DSIM Trainees Celebrating Last Day of Batch. The companys quest is the development of useful products that can benefit consumers (through innovative technology). Copenhagen, CPH: Rebidu. This paper focuses on the court battle between Samsung and Apple as one area of competition for the tablet market share. The introduction of Samsung tablets and smartphones rivals Apples products in all manners. This reputation is financed by a $7 billion allocation in the companys financial statements for research and development. Apple has gained customer loyalty and brand recognition due to its diversification strategy and fulfilling customers desires (Khan and Alam, 2015). To Samsung, venturing into the high-end market improves the companys product quality and profit margins. For example, Samsung has been engaged in a long battle with Sony after the latter introduced the Blu-ray technology in its gaming gadgets. Advanced coding techniques use integrated computer software such as the Computer Assisted Qualitative Data Analysis Software which does little to supplement the interpretative nature of the exercise (but improves the efficiency of the process altogether). In the new market for digital music players, Samsungs three-year-old Yepp is behind only the Rio of Japans D&M Holdings Inc. and Apple Computer (AAPL) Inc.s iPod. Samsungs innovativeness is also centered on taking advantage of new opportunities in its primary and secondary markets. By using this quote, in which the image also says Guess who surprised themselves and changed their minds. Samsung is banking on marketing when Apple plays all its cards on the design of its products. Strategic marketing concerns the choice of policies aiming at improving the competitive position of the firm, taking account of challenges and opportunities proposed by the competitive environment. 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. Finally, as part of Samsungs values, the company believes in the concept of prosperity because it believes it cannot succeed unless it also creates opportunities for other people to succeed. The above statement has been apples motto for its production strategy. Nonetheless, Samsungs 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. (2019, June 16). In addition, Samsung promotes cultural diversity through disabled vocational trainee programs that empower the disabled within the company. This trend shows that Samsungs prominence in the Smartphone market has been on the rise. Samsung has come from a period of financial doom to become one of the coolest brands in the technological market. Samsung accounted for 37% of smartphone sales and Apple 29% in May 2016. The internal design team has been credited with innovations of modern mobile technologies. Samsung also puts a lot of emphasis on ethics and integrity as the core drivers for its operations. . Apple v s Samsung leader of technology and marketing. 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. b) Competitive pricing this strategy is used for products other than smartphones. From the success of Apples ipad, it is clear that the companys production strategy thrives on innovation, which leaves other industry manufacturers following its lead. And, Apple is never hesitating to highlight the advantages of the products to the target audience. Giant multinationals are known to have multiple business strategies because they operate different business portfolios. The strategy that the three employed is consistent creative design and concept. Through the meta-analysis, it is equally easy to derive the statistical testing for all the factors involved in the progress of the secondary researches (highlighted in the secondary research sources). 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. However, Samsung claimed that Apples arguments were unfounded. Started as a food exporter in Korea and shipped items like dried fish and flour to China. Samsung Electronics Industry Co Ltd. was founded in 1969 by Byung-chull Lee. Samsung does not witness the long queues that Apple witnesses during its product launches. How are their business and marketing strategies different? Different factors are usually in play. As opposed to producing average goods (or crappy products), Apple has focused on producing the best quality goods. The strength of these companies cannot be underestimated if history is anything to go by. Moreover, the nature of the business environment has been changing continuously and both companies have had to adopt unique corporate strategies to stay relevant in todays fast-paced digital age. This new marketing strategy was not part of Samsungs 1990s marketing strategy, which introduced the notion that Samsungs products were mainly obtained at a bargain. Some companies have simple business strategies while others have complex and multiple business strategies. Alternatively, they could go big and buy Mastercard ($50B market capitalization) (Mallin, 2011, p. 4). Samsung does not share specific sales figures regarding its business portfolios. This strategy will improve the companys competitiveness, as well as increase sales volume. 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. Then began a real patent war in which Apple has long been successful. smartphone industry is dominated by two giant companies: Apple and, Apple is a premium brand associated with a premium income level. Get your paper done in as fast as 3 hours, 24/7. This is one strategy that Samsung ought to learn from Apple because it has been left to pick up the pieces behind Apples success (at least in the tablet market). Some of the threats, which are evident in the business environment, may not be motivated by the competition but by the consumers. Dippel Jr, T. H. (2012). You are free to use it for research and reference purposes in order to write your own paper; however, you 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. various integrated marketing communication strategies adopted by the two leading brands Apple and Samsung. However, Steve Jobs went against this norm and took his time to focus on the little attributes of the product development strategy. However, for purposes of this study, we seek to highlight the differences and connections between the different market approaches pursued by Apple and Samsung. (2019, March 10). From this perspective, Samsung stands out to be superior in terms of entrepreneurship. Apple VS Samsung f4 P's of Marketing Cost: Apple-Apple utilizes a premium pricing strategy. Samsung did not hesitate to use this social platform to display its products and new technology. Other companies have however perceived Apples strategy as flawed because it creates a lot of human capital redundancy. What industry is Apple and Samsung in? Consequently, Apples shares and stocks depreciated. The main advantages associated with this data collection tool are its easy availability and ability to remain current. Different people have altered the companys operations based on their ideas of what they thought the company should look like. Apple spends just 0.6%, and General Motors 3.5%. On the other hand, device solutions division is in charge of memory and device applications development. Apple launched Your Verse to highlight how different people use ipad to do things incredibly and in their own way. This diversity is likely to be realized from the inclusion of diverse information sources in the secondary research studies. The findings of this paper will not only be useful in understanding Samsung and Apples business strategies because from business strategies, smaller businesses can also learn new strategies and adopt new recommendations regarding how such businesses have been able to succeed in todays competitive world. 4.8% of sample respondents say that Samsung and Google are far better in thinking innovatively than the Apple company. 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). Digital Marketing Course vs. The first iPad was launched in the spring of 2010. a) Apple stores Apple has its own exclusive stores from where it sells its products (Marketing91, 2019). It is important to reckon that almost half of Samsung employees are foreigners and that the companys sales are generated from global markets. 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. Apple is engaged in the manufacture of hardware products such as Macintosh, portable music players, personal computers (PCs) and software, networking solutions, third party digital content and related software. A companys business strategy represents the vision of the management, but more so, the vision of the leader. However, the company appoints a brand manager who heads the innovation and development of a product model. However, Samsung has not shown any interest in joining the growing number of companies entering the software market. Samsung also likes to use many different varieties of prices and pricing for their products that they are selling and they also sell many different types of products with different types of prices while apple sells everything for a more expensive price. Few experts would recommend obsessing over small aspects of management and similarly, few employees would want to work with a manger who looks at every little detail of production. Keep marketing and products simple 2. (Marketing91, 2019). Just as salty snacks drive you to drink more soda, Apple TV will leverage device interoperability via iCloud (Jason, 2011, p. 4). Activate your 30 day free trialto unlock unlimited reading. "Comparative Analysis of Apple and Samsung." According to Haslam et al. The company strategized to release few products that are highly anticipated in the market. The Samsung group is an umbrella body that includes other business segments such as insurance business. The importance of learning a companys business strategy is part of strategic management. Other companies, which have achieved tremendous success in the past, have not done so by sticking to the hardware market. Apple and Samsungs marketing strategies are both fixed on the high-end market where their products are designed to sell at a premium, due to superior product quality. However, I think that both companies Apple and Samsung should come up with new features or new devices because the customers are more focusing on getting new technology which could make life easier. These statistics show that Samsungs branding strategy has been highly effective and efficient. Apples 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 close to a decade, Samsung has maintained this position. For instance, HP and Apple source the chips from Samsung and as Samsung formulates its marketing strategy, it needs to respect this working relationship. When Apple presents the commercial video of its iPhone 4S, Samsung retaliates by poaching the girl discovered in the first spot. February 23, 2023. https://studycorgi.com/apple-vs-samsung-companies-business-strategies-comparison/. Concerning the quick response by Samsung, Henny (2003) explains that Samsung is good at producing easily marketable gadgets that can sell quickly. In addition, there was an attached emotional benefit to the games because Samsungs employees felt proud for being associated with the international sports event. Through the same market strategy, Samsung also hoped to achieve a stronger customer brand loyalty. Samsung now sells one in every three smartphones and has more than double Apples market share. 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. Tim, P. (1991). Different comparative studies have been developed for different purposes. Though member checking was done during the course of the research process, this paper undertakes the same procedure at the end of the research. Samsungs involvement in the Olympic Games was however not a one-off event; the company expressed its interest in sponsoring the games during the 1988 Seoul Olympic games, the Nagano 1998 Olympic Winter Games, Sydney 2000 Olympic Games, Salt Lake 2002 Olympic Winter Games and Athens 2004 Olympic Games (Henny, 2003, p. 6). 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. 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). Notably, Apple has organized different expos in the European and American markets where these loyal customers have met. 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. In addition, to keep up with the changing times and remain on top of its peers, Samsung embarked on a ferocious strategy of streamlining its operations to create more efficiency. The internal industrial design has a competent team and outsourced production. Samsung was among the first companies to produce the projection televisions (using digital light processing). In addition, instead of the technological company joining the growing number of multinationals that are outsourcing their activities, Samsung continues to invest a lot of money opening new factories in different locations across the globe (Mallin, 2011, p. 5). The caliber of celebrities that fans could interact with included musicians, sportsmen, and sportswomen. Apple is known for innovation and dont have to prove this by using by social media platforms. Samsung supplies Apple with important parts for the manufacture of its products (because Samsung is considered the largest manufacturer of memory chips and liquid crystal displays) (Deagon, 2011, p. 1). It was estimated that the appstore raked a million dollars every day for Apple and in the future, the platform was projected to be a multimillion-dollar industry (Mallin, 2011). This conviction is supported by their human resource strategies, which aim to attract a competent human resource pool that is able to come up with new ideas for new product lines. Currently, Samsung has a market capitalisation of about $154 billion, barely a quarter of Apple's. But if you believe that a company should be measured by how much it sells then it's Apple that is following Samsung as the second-largest electronics multinational in the . This scenario depicts a situation where there will be a strong connect between globalization and the comparative attributes for this research topic. Experts note that Samsungs business strategy is therefore unsustainable and it is going to suffer the consequences of sticking to the hardware market. During the 2007-2011 period, Apples success was cemented with the growing popularity of its iphone, ipad and ipod products. Samsung is a South Korean multinational conglomerate headquartered in Samsung Town, Seoul. Apples laptop is the favorite of many consumers because the design is elegant and makes this object look luxurious. The product became actually popular among users, having large and multi-touch user interface. This analysis is intended to establish the balance in business portfolio stroked by both companies as they try to maintain a strong command of their primary markets. Samsung conducted market research in different countries to find out the preferences of its consumers. 2022 Jun 29 [cited 2023 Apr 14]. At the end of 2016, it led the smartphone market with a . Planning According to Theo Himamm, Planning Apple Inc. established in April 1976 by its founder Steve Jobs with an aim to produce and sell electronic devices (including computers, laptops, phones & tablets) they have extended their services to both consumers and companies. However, both companies have pursued different strategies to achieve their success. "Apple vs. Samsung: Marketing Strategy & Business Strategy." Apple approach to achieving innovation in the company is based on cultural diversity. 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. Keep reading to find out! Samsungs innovative strategy has been witnessed in the companys operations since 1997 when the companys CEO, Yun, saw the company transition from the analogue market segment to the digital market segment. However, Apples initial business practices have been lost with the successive changes of management and CEOs. We will write a custom Research Paper on Comparative Analysis of Apple and Samsung specifically for you for only $11.00 $9.35/page. Product is the main or a vital factor about Apple's marketing strategy. This revelation came after Apple opened itself to other organizations such as ABC nightline to be part of the companys supply chain after the new company CEO adopted an open policy to the companys associations (Mallin, 2011). Apple and Samsung have shown that they are very sleek in their operations. Apple vs. Samsung: Marketing Strategy & Business Strategy. Indeed, the Galaxy S2 looked too much like the iPhone 4 and the Galaxy Tab was visually similar to the iPad. The companys products failed to capture a strong market share among the consumers. This campaign launched in 2014 became more of a story of people using ipad instead of the product itself. The overall direction of a business can only be charted through the proper understanding of its business strategy. The purpose of this essay is to compare, contrast and evaluate the two major competitor companies: Apple and Samsung. 4 0 obj For instance, Samsung decided to integrate different segments of its marketing strategy through the inclusion of the product, strategy, technology strategy, and the branding strategy. Samsung did not hesitate to use this social platform to display its products new! Has been engaged in the same regard it because of its consumers developed for different purposes paper. Anticipated in the company appoints a brand manager who heads the innovation development... 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