apple vs samsung marketing strategy pdf

By whitelisting SlideShare on your ad-blocker, you are supporting our community of content creators. Cowan, D. M., Dopart, P., Ferracini, T., Sahmel, J., Merryman, K., Gaffney, S., & Paustenbach, D. J. Samsung has mastered the subject by launching perpetual assaults against Apple. Price in the Marketing mix of Apple Inc. Retrieved from Marketing91: https://www.marketing91.com/marketing-mix-apple-inc/, Marketing91. 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. This view is aimed to developing a connection between the performance of Samsung and Apple in the technological market. Morrison (2004) observes that Apple and Samsung have had very different business strategies (based on their financial resources). 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. In fact, the company withdrew its products from specific low-end retail stores much as Wal-Mart and target to higher-end retail stores like best buy and Circuit city (Henny, 2003, p. 4). 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. The data analysis section will use four tools. Samsungs market strategy has traditionally been holistic in the sense that the company meets the needs of all market segments. On the other hand, Samsung has a wide range of product models that are not high-end. 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. However, Jason (2011) observes that Apple has the option of enlarging its infrastructural capability by seeking non-traditional technology that does not fall in its conventional Apple ecosystem. It is therefore a usual occurrence to find hundreds or thousands of people waiting outside different Apple retail stores to buy a new Apple product. The difference between the high definition DVDs and the blue ray technology is that high definition DVDs can be played on old DVDs while blue ray technology does not allow for this provision. This trend has quickly caught up with other technological companies around the world. Apple spends just 0.6%, and General Motors 3.5%. The focus on employee excellence is also another example of Steve Jobs ideals. There are a lot of companies out there producing great products. This is an uncontrollable aspect of the companys operations. One of the main reasons Apple is using the premium price policy is because of the technology they are using in their products. This paper was written and submitted to our database by a student to assist your with your own studies. If you use an assignment from StudyCorgi website, it should be referenced accordingly. As mentioned in earlier sections of this paper, this study will use secondary research sources as the main data collection tool. The launch of the appstore and the icloud applications are just some of the few evidences showing Apples commitment to producing new software. This (2023, February 18). Adverts mocking Apple fans, and heavy investment in product placement and in distribution channels have strengthened its Galaxy mobile brand. This strategy paid off. Samsungs business strategy has however been compounded by the growing convergence of different technologies in the market. Samsungs corporate philosophy is encrypted on the companys goal of using its resources to produce quality products, which will benefit the wider global society. It is almost impossible to point out that Apple has differentiated itself from its competitors by remaining unique. The overall direction of a business can only be charted through the proper understanding of its business strategy. Samsung uses skimming price for these products wherein it tries to get a high value from the start before competitors catch up. For close to a decade, Samsung has maintained this position. (2023, February 18). Through this strategy, Apple expects to retain highly motivated staff by eliminating weak staff. But fast forward a year, to Q4 2020, Apple did 79.9 million vs. Samsung's 62.1 million. 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. The companys products and services include Macintosh computers, iPhone, iPad, iPod, Apple TV, Xserve, a portfolio of consumer and professional software applications, peripherals and iOS operating systems, third-party digital content and applications through the iTunes Store and a variety of accessory, service and support offerings. From this assertion, Samsung believes that it contributes to the betterment of the society. Through this understanding, many people now believe that a Smartphone is an important accessory that can improve a persons productivity in todays fast-paced world. 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). Apple should therefore focus on meeting its surging demand and Samsung should reevaluate its entire business strategies. 2 Motorola (MOT) Inc. in handsets sold, it has just passed it in overall global revenues (Jason, 2011, p. 13). 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.. 2023. This provides employees with an opportunity to reflect and own the ideas of change. Mallin (2011) observes that the success of Samsung can be attributed to its unique competitive strategies. (2019, March 10). They are the leading mobile phone manufacturer in the world and generated sales of $ 229.234 billion in 2017. Promotion in the Marketing Mix of Apple Inc. Retrieved from Marketing91: https://www.marketing91.com/marketing-mix-apple-inc/, Marketing91. Chris (2008) explains that it is ordinarily difficult for companies to undertake both primary and secondary activities at the same time. This knowledge is useful in understanding the intricacies between the two companies. Some observers have termed this strategy as Crazy and illogical (VAR, 2005, p. 3). Apples human resource strategy traces its roots to Steve jobs business principles. To complete, this was the marketing mix of Samsung which shows that is a big threat to Apple Inc. Furthermore, the introduction of mobile VoIP on the Smartphone is considered another area of key competence, which was advanced by Samsung and Apple, thereby, allowing their customers to use features such as Skype and Vonage on their mobile phones (Deagon, 2011, p. 1). Thousands of athletes who took part in the Olympics sports graced Samsungs stands and made contact with people at home because the company established an online communication center for participants. Electronics Building, Since the company started business in the 70s, it has created a lot of buzz. Apples business strategies are different and depend on product models. Though other technological companies have entered the tablet market, Samsung is perceived to be the closest rival to Apple Inc. (in terms of design and capability) (Deagon, 2011, p. 1). Through this conviction, Samsungs management established that the sports-based strategy fit well with the companys values and philosophy. The company adopted the sports-centered market strategy after its management realized that it did not put enough effort to add value to its products. Register For FREE Digital Marketing Orientation Class. Apple Inc. has produced apple TVs (which infringes on Samsungs strong foothold on the sale of television equipment) while Samsung has been resilient in producing tablets (which infringe on Apples core business the sale of the Apple ipad). Samsung Group Report contains a full analysis of Samsung marketing mix (Samsung 7Ps of marketing) and Samsung marketing strategy in general. And, Apple is never hesitating to highlight the advantages of the products to the target audience. Some of their corporate actions have been unconventional while others have been outright aggressive. I will spend my last dying breath if I need to, and I will spend every penny of Apples $40 billion in the bank, to right this wrong. They wanted to make computers small so people could put them in their homes or offices. 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. 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). It appears that you have an ad-blocker running. The strength of these companies cannot be underestimated if history is anything to go by. Samsung uses differentiation versus a cost leadership business-level strategy (Hills & Jones, 2008). Apples Injunction Bid Vs. Samsung Seen Partly Denied. 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. Apple has not shied always from taking advantage of the improved customer loyalty. This approach is seen to be successful in the sponsorship of sporting events such as the world Olympics. Samsung does not witness the long queues that Apple witnesses during its product launches. 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). From this understanding, this paper also seeks to evaluate the performance of Samsung and Apple viz-a-viz their business strategies to understand how their changes in resources (historical analysis) have affected their performance and how these resources compare with other companies in the technological world. In addition, contrary to popular ideology and business practice, Samsung remains vertically integrated and increasingly diversified as opposed to focusing on some of its main competencies. Web. The first goal was to increase the level of brand awareness in the international market (which it successfully managed to do) and the second goal was to improve the level of positive brand perception in the international market. The increased brand awareness also led to a significant boost in the companys sales. This is IvyPanda's free database of academic paper samples. Word Count: 918. 2022 Jun 29 [cited 2023 Apr 14]. Because Samsung is a branded product, the retailers are bound to keep Samsung as an alternative or primary product for their customers. During this period, Samsung sold about 24 to 28 million Smart phones while Apple sold about 17 million smart phones. The first product of Apple was the Apple I (Deffree, 2019). This observation highlights the strong emphasis on educational qualifications as one of the key requirements for Samsungs employees. Strategic Management: An Integrated Approach: An Integrated Approach. 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. In this regard, Samsung has achieved crucial collaborations from other technological firms that act as suppliers and external designers of critical product components. For this reason, the best customers for. The South Korean consumer electronics giant now the number one Smartphone maker in Australia, according to IDC released two ads for its Galaxy S II Smartphone that launched thinly veiled attacks on Apple products and ridiculed the hordes who line up for days to buy them (Jason, 2011, p. 3). The company strategized to release few products that are highly anticipated in the market. 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. Different researchers have attributed the success of both companies to their human resource strategies. Apple and Samsung weren't the only ones with good years. By extension, a companys business strategy defines the best approach a companys management can take in securing the future of a business. 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). This managerial trait has paid off for Apple because its products have a keen attention to detail and many observers perceive them as well-though out products (Mallin, 2011, p. 5). Samsung made sure its product was front and center at the Oscars. New product designs were complemented by the introduction of new product designers to increase the scope of Samsungs product design to meet the standards of the highest level of product designs (Henny, 2003). The marketing sector understands customers specifications and relays the feedback to research and development sector for improvement. The company upholds high standards of social responsibility. The US consumer base seems to be an inflexible customer pool, which would be harder to penetrate. Digital Marketing Certification: Why It Matters for Your Career? This sentiment is expressed because it is seen that Samsungs business strategy is challenging new economic dogma (this is an unpopular precedent, which is shunned by most companies). In this regard, product models are viewed as efficient, exclusive and expensive. There are differences between these two brands as they adopt several techniques to reach the audience in their market effectively. Resources may amount to different competencies available to a company such as plant and machinery, finances, human resource, trademarks, patents and other tangible or intangible assets. In the Olympic Games of the year, 2000, Samsung displayed its products in this manner. For instance, HP and Apple source the chips from Samsung and as Samsung formulates its marketing strategy, it needs to respect this working relationship. This fear has been expressed despite the fact that the company has made immense profits in 2011, after it posted profit figures of about $4 billion in the last quarter of 2011 alone (Jason, 2011). Comparative advertising is complex to implement and can be dangerous for those who use it. Many Japanese, European and US companies learned the hard way that such business strategies do not work in the long-term but they also exposed the wisdom that companies, which insist on their traditional business models, need to invest a lot on research and development to come up with new product lines that are sustainable in the end (Jason, 2011). We hope this was an exciting and useful article for you. Millions of viewers see host Ellen DeGeneres taking selfies with guest stars using a Samsung phone. Apple, Samsung and Huawei always battle for the biggest and boldest advertising campaign to get all the attention and brand retention. The usefulness of the qualitative research design will therefore be limited to getting a comprehensive conceptualization of the differences and similarities between Samsun and Apples business strategies (based on the backdrop of organizational decisions made by the companies). Over a span of three decades, Apple Inc. has been able to establish itself as a force to reckon with in the electronics market. Staff by eliminating weak staff assist your with your own studies Samsung weren & x27... A high value from the start before competitors catch up Apple and Samsung have had very different business (! 62.1 million, a companys management can take in securing the future a! For these products wherein it tries to get all the attention and retention. And generated sales of $ 229.234 billion in 2017 samsungs employees primary and activities! Apples commitment to producing new software in their market effectively a big threat to Inc. 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