The television line was among many new television designs using about 1.3 micro mirrors to increase the picture quality (Henny, 2003). Samsungs innovativeness is also centered on taking advantage of new opportunities in its primary and secondary markets. The two companies have found themselves engaged in legal battles. However, history shows that persistence in this business model (hardware) is not sustainable in the end. This scenario also requires that apple forge a workable working framework to integrate its activities and those of its suppliers in the most effective way. Currently, the world does not have a doubt regarding Apples ability to succeed. Price in the Marketing Mix of Samsung. Business Strategy: Time For Less Talk, More Action. In an article citing the use of the same child for Apple and Samsungs advertisements, (Jason, 2011, p. 1) explains that. This analysis will also apply to the highlighted differences and similarities between the business strategies of the two companies. Different explanations have been given to explain this observation but the most common notion is that most of Apples products are priced at a premium and therefore, they attract a sophisticated clientele. 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. Live Exercises: Google Trends & Google Analytics, Career Opportunities: Roles, Experience & Salaries. The main advantages associated with this data collection tool are its easy availability and ability to remain current. 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The overall direction of a business can only be charted through the proper understanding of its business strategy. VAR. That act helped Samsung to jump-start market share, and proved to become a viral video content powerhouse. This area of operation has boosted Apple because most companies do not have the grasp that Apple has over its distribution channels. 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. 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. Through this conviction, Samsung strives to ensure that all its operations are done fairly and respectfully to protect the interests of the companys stakeholders. Comparative advertising is complex to implement and can be dangerous for those who use it. This is also the main reason why there has been scanty information regarding the companys real sales figures (especially when the companys figures are compared with its competitors). This strategy paid off. From this perspective, the company customizes products based on a major design preferred in the market. Just get rid of the crappy stuff, and focus on the good stuff (Jason, 2011, p. 4). During the last years, Samsung performance was good which means that the company came up with many new, developed and smart products and because of this Samsung is a great competitor for Apple. 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. 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). As mentioned in earlier sections of this paper, this study will use secondary research sources as the main data collection tool. Samsung on the other hand hopes to attract and retain the best human resource by providing the best working terms possible. During the same period, April posted a net profit of more than $1billion after reporting revenues of more than $8 billion (Mallin, 2011). Evidence is given of Samsung going into business partnerships with other technological companies such as Google, IBM and Toshiba. All products of Samsung are sold to a single distributor who in turn will sell it forward to retailers (Marketing91, 2019). Moreover, the market is still growing. For instance, consumer tastes, preferences and needs may change to reflect a new set of wants that companies have to conform to. Apple launched Your Verse to highlight how different people use ipad to do things incredibly and in their own way. For instance, the company has a locked-down software platform, which is only known to close associates of the company (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. Click here to review the details. The companys quest is the development of useful products that can benefit consumers (through innovative technology). The advertisement called as Samsung Cares has been a hit in social media, with the YouTube video reaping more than 64 million views currently. However, within these similarities, both companies have different corporate cultures, which differentiate the companies ideals. However, a companys success through such marketing strategies not only depends on the success in the branding strategy but also on the supporting strategies. Henry (2003) explains that, Samsung took this challenge as an opportunity. Presently, Apple and Samsung are seen as the largest manufactures of Smartphones across the world. The reduction of energy consumption has also been seen to comply with the European Union (EU) energy regulations. Evidence is given of Sony, which was forced to almost depend on its play station market to sustain its hardware production because it stuck to the hardware market (Jason, 2011). (2023, February 18). A STUDY ON PRICING STRATEGIES OF SAMSUNG AND APPLE The New Paradigm of Anti-corruption Policies in Korea: A Focus on the Lobbying Disclosure Act. Samsung does not share specific sales figures regarding its business portfolios. The product became actually popular among users, having large and multi-touch user interface. This campaign itself became a Guinness World Book entry with the record of maximum number of artists working on a single art work. From this basis, this paper seeks to understand Samsung and Apples value chain processes with the aim of understanding how they complement the companies business strategies. Chris (2008) explains that it is ordinarily difficult for companies to undertake both primary and secondary activities at the same time. The external business environment is quickly changing (especially in todays fast-paced world) and therefore, it is important for businesses to go back to the drawing board and ask themselves important questions regarding how they intend to manage external pressures of operation. On the other hand, Samsung has a large pool of engineers who design products internally. Apple continued on dominating the Smartphone market within the years; however Samsung introducing Samsung galaxy series in 2013 brought increased competition for it. 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. Products in the Marketing Mix of Samsung. 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. Privacy Policy In the midrange, they could look at Intuit ($17B market capitalization) though that might raise regulatory flags. On the other hand, iPhone does not support such features compared to Samsung android gadgets. 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. All rights reserved Both developments infringe on Samsungs core market segment. 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). smartphone industry is dominated by two giant companies: Apple and, Apple is a premium brand associated with a premium income level. Samsung did not hesitate to use this social platform to display its products and new technology. In addition to the screen of the iPhone voluntarily extinguished, its list of features was much shorter than that of the Galaxy S3. This report focusses on these two companies and their marketing mix strategies. 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. The increased brand awareness also led to a significant boost in the companys sales. 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). Digital media is responsible for consumer electronics and mobile communications. 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. Apple spends just 0.6%, and General Motors 3.5%. February 18, 2023. https://ivypanda.com/essays/comparative-study-of-business-strategy-for-apple-and-samsung/. Through the findings of this study, we will be able to show clearly the connection, differences and similarities between the actions pursued by both companies and their business strategies. It works on the channel marketing concept wherein there are three segments: sales and service dealers, modern retail and distributors. Samsungs restructuring efforts have won massive approvals from within the company because some of Samsungs managers acknowledge that the companys operations are more efficient now. PROJECT SUBMITTED TO: Finally, this paper seeks to undertake a portfolio analysis of Samsung and Apple because both companies operate in more than one business portfolio. Samsungs focus on the hardware market is however not random. While Apples epicenter lies around how people use its products to make a difference to their life, Samsung emphasizes and advertises its features. Moreover, both companies are streamlining their operations according to the global operating environment. Jason (2011) also questions the sustainability of the companys strategy in the coming years. 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. <> Through the same market strategy, Samsung also hoped to achieve a stronger customer brand loyalty. So far, the company has received positive reviews for its software ventures such as itunes but the company believes that in the future, it needs to increase its revenues stream by also venturing to the hardware market. Collection tool are its easy availability and ability to succeed strategies of the crappy,! Became actually popular among users, having large and multi-touch user interface while Apples lies... Art work increased competition for it video content powerhouse centered on taking advantage of new opportunities its. Regarding its business strategy: Time for Less Talk, More Action 3.5 % highlight. 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