Apple accused the South Korean company of plagiarism. Evidence is given of Samsung going into business partnerships with other technological companies such as Google, IBM and Toshiba. This paper proposes that Samsung should re-evaluate its business strategies to be in tandem with the needs of today’s technological world by focusing on the software market. New product designs were complemented by the introduction of new product designers to increase the scope of Samsung’s product design to meet the standards of the highest level of product designs (Henny, 2003). This strategy allows an company to create a specific USP that separates itself from other businesses in the industry. During the same period, April posted a net profit of more than $1billion after reporting revenues of more than $8 billion (Mallin, 2011). For instance, the business association between Samsung and Apple (in the supply of hardware parts for Apple’s products) shows the acquisition of new resources for Apple in sustaining its business strategies. IvyPanda. The traditional business strategy of producing their main products in America is no longer a viable strategy because there is a high flexibility and diligence that is available in external markets. However, the company’s CEO also revealed that the Smartphone market only accounted for about 9% of the total handset market (Mallin, 2011). Alternatively, they could go big and buy Mastercard ($50B market capitalization)” (Mallin, 2011, p. 4). For example, Samsung has consistently stuck to the manufacturing industry, especially after the success of the microchip market segment. However, Apple’s 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. This move was unpopular among the workers but it was initiated by a change of management. Based on the contents of the “discussion” section of this report, it is important to point out that Samsung should direct more company resources to develop new and innovative products as opposed to playing second fiddle to its competitors. Other companies, which have achieved tremendous success in the past, have not done so by sticking to the hardware market. Apple’s marketing strategy has historically been focused on appealing to high-end customers. 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. Through the above analysis, it will also be easier to develop a deeper understanding of business strategies and more so, it will be easier to develop a deeper understanding of how Apple and Samsung work. In this event, the company launched a series of futuristic products such as “mobile phone watches, the PDA-phone, the digital camera cum mobile phone, the MP3 mobile phone and the its latest model of 3G mobile phone” (Henny, 2003, p. 6). 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. In an era of growing competition, these companies have adopted unique corporate strategies to realize their corporate vision and objectives. Because Samsung has a focus on both differentiation and cost leadership, there can be concluded that the company has a combined cost leadership and differentiation strategy, that focuses on delivering a product which offers unique benefits over products manufactured by its competitors, at a lower price than for example Apple. These events paint a strong emphasis on Apple’s business strategies because they have been able to succeed in markets that have been previously dominated by other giant players such as Samsung (in the hardware market) and Microsoft (in the software 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. For example, VISA sought partnership with MSN because it had the strongest online presence as it tried to reach out to a young audience (Jason, 2011). 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. Samsung and Apple are two consumer electronics giants with global reach and loyal customer bases. Quality seems to have surpassed the emphasis on price among today’s consumers. However, many researchers attribute his input to Apple’s human resource pool as mainly being focused on developing and retaining the best human capital (Jason, 2011). The company’s vice-president affirmed that, “sports sponsorship is a strategy that fits well within our operations at Samsung. However, Steve Job’s influence on the technological giant has been the most profound and widely talked about. This analysis will also apply to the highlighted differences and similarities between the business strategies of the two companies. Therefore, the South Korean company does not perceive partnerships as a last resort but rather as a core area of its operations. Peggy, A. Though the memory chip business is prone to the challenges of its cyclical market, Samsung’s presence in this market segment is unrivaled. The generalizability of the research information may also be limited to a specific component of the businesses in study. 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. IvyPanda, 28 May 2019, ivypanda.com/essays/comparative-study-of-business-strategy-for-apple-and-samsung/. Apple should therefore focus on meeting its surging demand and Samsung should reevaluate its entire business strategies. 28 May. Unlike other companies, Apple does not see partnership as an opportunity to grow but as a barrier to growth. The 90s period also marked an ear of alliances between Apple and other technological companies such as IBM and Motorola (Mallin, 2011). Recently, the company launched a new cell phone that allows its users up to 30 minutes of video time on the phones (Henny, 2003). Apple and Samsung are some of the giant technological companies engaged in the same type of business. Apple’s business strategy has proved successful over the recent past. From the success of Apple’s ipad, it is clear that the company’s production strategy thrives on innovation, which leaves other industry manufacturers following its lead. This seems to be the underlying premise behind Apple’s success because the company has always adopted a high-end market strategy and its products have consistently been received with high enthusiasm. Distribution in the Marketing strategy of Apple Apple has a very smart retailing setup. For instance, Samsung electronics is part of a wider group of companies forming the Samsung group. Therefore, Samsung always strives to be in tune with the constant changes in its internal and external environment. 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. With the expected venture of Apple television product, existing movies and television studios are expected to counter apple’s move by creating a parallel product that almost offers Apple’s exact features. The inclusion of such data is supported by the qualitative research design. Only companies such as Coca Cola, IBM, and Visa have achieved this sort of brand recognition at a global level. Like Apple’s “Siri” platform, existing television pioneers such as Samsung are expected to scale Google’s android platform to create friendlier interface features that are expected to be revealed through the “siri” platform. Seongjae, Y. The strategies however did not yield much fruit. The influence of a company’s business strategy spans across different sectors of a business’s competence areas such as customer retention and resource allocation. Some of the threats, which are evident in the business environment, may not be motivated by the competition but by the consumers. Read more about the marketing mix of Samsung and its importance. Different comparative studies have been developed for different purposes. Apple focuses on the main features that differentiate the products of the company from those of the rival companies (He 2012, 48). Identify the competitive behaviour responses of Tesco to build … Samsung also equipped the participants, staff and volunteers with wireless communication devices to facilitate the smooth running of the event. software other than iOS of Apple. Challenges a) b) c) Is it possible to increase profit margins while maintaining product differentiation strategy ? Less than a decade ago, Samsung’s brands were perceived to be cheap and low quality, with some critics perceiving its products as “me too” products. Apple has already warmed up to this new business phenomenon and it has made billions as a result. From the above examples of Samsung’s sponsorship of the Olympic Games, it is impossible to deny the fact that Samsung’s sponsorship of the Olympic Games played a vital role in its brand building strategy. After the company sponsored the games, Samsung was listed as constituting among the 21st most valuable brands in the world (after the company’s brand value increased by 16%) (Henny, 2003). For instance, a company’s business strategy is the best indicator for determining a company’s financial health. It is also during this period that Apple introduced the itunes platform, which allowed consumers to purchase music and play them on other music players. The different research contents represented by the unique codes will thereafter be compared to one another to expose their similarities and differences. The dominance of Samsung in today’s technological world is therefore an unprecedented eventuality because the Korean company has been able to wade its way through the dominance of technological giants to be a force to reckon with. International Studies of Management & Organization, 28(4), 57-72. The brand positioning of samsung has been such that it has something for everyone which wide array of products. In their strategy some of the things Apple wanted to do include: Eliminate: hardware features; Raise: ease of viewing, ease of use, portability and non-PC functions Reduce: technical specs, and functions; Create: style, fun, hardware add-ons, and customization through their App store. Samsung is banking on marketing when Apple plays all its cards on the design of its products. Consequently, the company decided to develop online versions of its movies and retail them online. With increased internet penetration in most countries, many multinational companies are slowly starting to appreciate the importance of online marketing (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). Experts hold this belief despite the fact that Apple’s products are priced slightly higher than most of its competitors. Though the concept of generalizing findings is highlighted as a limitation for this study, the meta-analysis helps to generalize the findings of this research to different (but related) contexts. Similarly, a small business owner may fail to see an existing business opportunity for growth. STP Process. This paper proposes that Samsung should re-evalu… Samsung’s participation in the Olympic Games is perceived to be among the main reasons for the ascension of the Samsung brand to the top of the electronics market. It is not confirmed if Samsung’s pricing strategy contributed to the company’s decreased debt levels because the company’s debt shrunk from an unsustainable $10.8 billion to a mere $1.4 billion. However, within these similarities, both companies have different corporate cultures, which differentiate the companies’ ideals. For instance, if Apple were to acquire a large financial firm, it would boost its business competence. Apple’s resources are however diverted to improve the company’s software competence. 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. To support the above assertion, Samsung explains that, “The result is that all of our products—from 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). As noted in earlier sections of this study, Samsung’s marketing strategy paid off. Samsung’s innovation is not only present in the mobile market; the same commitment has also been witnessed in the television market. Apple’s Currently Samsung’s strategy focuses on producing high-end goods, which are designed to appeal to the high-end market segment. For example, Samsung has been engaged in a long battle with Sony after the latter introduced the Blu-ray technology in its gaming gadgets. Jason (2011) observes that Apple should take advantage of the potential for this market segment despite the fact that its primary market is the high-end market. Samsung’s previous brand strategy was changed because the company realized that setting low prices for its products was just one way of competing in the lower-end market segment, but it did not provide the opportunity to compete in the high-end market segment. To handle the competitive pressure, the organization can implement a mix of cost leadership, differentiation, and focus strategies. Moreover, the company’s service delivery is unique and more superior, as its boasts of a state-of-the-art bar for technical support, continuous and dedicated customer service and allows customers to first sample their products … 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). Samsung’s success has also been attributed to the same factor although there is no single individual attributed to the overall company success. It will therefore be more fruitful for Samsung to focus on other international markets such as Europe and Asia if it intends to counter Apple’s influence in the tablet and phone markets. IvyPanda. The main challenge of pursuing different strategies may be that some of the strategies may not be very good for the business. However, Cook’s business strategies are in sharp contrast to Steve Job’s business ideals, which mainly centered on instincts. Apple’s plan to increase its production capacity to suit the growing global demand for its products highlights the existing production capacities in China. The sales figure for 2010 show that the company’s sale of ipad, iphones and ipads transcends the company’s mac sales (122 million). 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. Apple has mainly filed the lawsuits after it believed that Samsung infringed on its copyright and patent laws by developing a replica of the ipad. As part of Samsung’s sponsorship strategy, the Korean company also adopted an associated marketing strategy where the company sought different brand associations with other companies. This phone was equipped with another feature where users could watch live television on their phones. 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. More importantly, it is easy to know how a company will perform, viz-a-viz its external business environment. It has very little influence over its distribution partners. Designing an advertisement in which one directly tackles the competitor is double-edged because the message conveyed can be misinterpreted. For instance, the company’s senior vice-president in the retail department had no authority to direct other activities within the company’s retail chain, other than those described within his roles. Jason (2011) notes that Samsung’s strategy is informed by its tight grasp on the emerging markets. Finally, this paper will source information from online sources of research as the last type of secondary research data. From Apple’s high-end market strategy, the company has earned a reputation for producing quality goods at high prices. Furthermore, since the recent developments of the tussle between Apple and Samsung have not been addressed, the use of secondary research data will provide a broader understanding of the research problem. It is therefore no surprise that Apple is making a lot of money (more than it can spend) while Samsung’s defiance to venture into the software market only stands to limit its revenue stream (because it seems to mainly rely on its competence on the hardware market). World Business (A Special Report); Back From the Brink: Samsung Electronics got into trouble by being like many Asian firms; It survived by being different. This analysis will be an important tool in benchmarking the performance of Samsung and Apple viz-a-viz their business strategies. Apple uses a multifaceted differentiation strategy in which they are innovators, capitalize in its brand and seeks to offer excellent customer services. 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. For instance, they have been able to control their human resource strategy through the counter-intuitive strategy, which weans weak employees. However, observers estimate that the South Korean company sold about 35 million Smart phones in 2011 (between October and December) (Deagon, 2011, p. 1). Samsung’s strengths mainly come from a few business competencies such as the success in the memory chip market, which accounts for nearly half of the company’s profits (Jason, 2011). 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. Moreover, different people were offered a platform where they could interact with international stars in a laser-light event. Therefore, any information that is shared in the public forum is done under the permission of the management. However, both companies have pursued different strategies to achieve their success. 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). For close to a decade, Samsung has maintained this position. Apple which is one of the leading competitors of Samsung in the smartphone segment also employs this strategy very well and keeps making improvements to its iPhone model in order to grow sales and customer loyalty. Chris (2008) explains that it is ordinarily difficult for companies to undertake both primary and secondary activities at the same time. For instance, the company has properly understood its Korean market and is taking advantage of the existing market opportunities in its primary market. This new marketing strategy was not part of Samsung’s 1990s marketing strategy, which introduced the notion that Samsung’s products were mainly obtained at a bargain. It has a minimalist presence on social media. This move inspired Samsung’s competitors to do the same. However, such a move is not considered a strategic action for the company because it does not add to its revenue growth. Some of the most notable changes on Apple’s business strategy has been the focus on new and emerging markets, the development of new products (such as Apple televisions), development of Apple’s icash and boosting the company’s operations to meet the increased global demand for Apple’s products. Offering their customers a low-cost alternative to Samsung and Apple helped them to carve out a position in the mind of their audience and establish themselves in the industry. Television sets are estimated to fetch about 30% lower than their markup prices five years ago (Jason, 2011). The strong brand following for Apple’s products has been highlighted in different media across the world. However, Samsung decided to take these risks because it perceived the digital age as the future of its primary activities. Most of these customers are local (Americans) but occasions have been witnessed where some customers fly from overseas and wait in line for days to purchase Apple’s products. Samsung’s successful pricing strategy is mainly attributed to its proficiency and dominance in the chip and display market. Comparative Study of Business Strategy for Apple and Samsung, Competitor Analysis for Lounge in Hilton Hotel, Strategies Being Pursued by McDonalds in 2010, Apple & Samsung Group Strategic Management, Marketing Plan for the Samsung Galaxy Tablet, HP: Arguably the Best Computer Brand Today, Business Environment: Case Study, the Philippines, To investigate the differences and similarities between Apple and Samsung’s business strategies, To establish the difference or similarities of different business portfolios between Samsung and Apple, To ascertain the key areas of competence between Samsung and Apple, To establish how Apple and Samsung use their corporate resources to implement their business strategies, To investigate Samsung and Apple’s value-chain processes, To evaluate Apple and Samsung’s business performance viz-a-viz their business strategies, To evaluate how Apple and Samsung’s changes in business resources affect their performance, To investigate how Apple and Samsung’s business resources compare with the expected first class resources for technological companies in the digital world, Apple and Samsung’s business resources are inherently similar, Samsung has a more diversified business portfolio than Apple, Samsung’s key area of competence is in the television market while Apple’s key area of competence is the mobile phone and tablet markets, Samsung and Apple use their corporate resources to develop better and high quality products for their consumers, Samsung and Apple’s value chain processes are very different, Samsung and Apple have achieved high levels of success because of their effective business plans, The changes of business resources between Samsung and Apple have not affected their performance, Samsung and Apple’s business resources are at par with the business resources expected of first-class technological companies. Apple’s business strategy has especially come into sharp scrutiny after recent reports revealed Apple monopolized its partnership deals and agreements with third party supply companies. Your privacy is extremely important to us. Apple has a strange strategy when it comes to brand promotion. Apple Inc. is a successful American company, which has been in existence since 1976 (Mallin, 2011, p. 1). Apple has pursued this strategy for a long time but Samsung has come on board recently. For instance, the launch of the itunes and icloud are just some of the few software innovations that Apple has ventured. Samsung’s success is therefore an all-rounded success that is shared by many people. The main types of secondary research data to be used in this paper will be business journals and publications regarding the business strategies of Apple and Samsung. Comparative Study of Business Strategy for Apple and Samsung. The common business ideology in today’s technological world is that the development of new software and content is guaranteed to elevate a company’s position ahead of its competition. 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). The company has formed impressive consumer networks among its most trusted consumers such as the network of imac computers (Mallin, 2011). Retrieved from https://ivypanda.com/essays/comparative-study-of-business-strategy-for-apple-and-samsung/. To establish the validity of the research information obtained, the member check technique will be adopted. Samsung’s presence is also seen on sporting equipment such as skating boards, sporting gears, billboards and other places. Apple business strategy can be classified as product differentiation. However, experts observe that Apple will not suffer from a change of management because it will always continue to be paid for the value-added services it offers its customers (Mallin, 2011). 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. The second battlefront for Apple will be the stiff opposition forged by existing content distributors. With increased competition, the prices of hardware products have even decreased further, especially with the growing dominance of Chinese products in the global market. The importance of including this analysis in this study is reinforced by Chris’s assertion that “The starting point for analyzing core competencies is recognizing that competition between businesses is as much a race for competence mastery as it is for market position and market power” (Chris, 2008, p. 10). For instance, consumer tastes, preferences and needs may change to reflect a new set of wants that companies have to conform to. Different researchers have attributed the success of both companies to their human resource strategies. The company’s 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). This research paper on Comparative Study of Business Strategy for Apple and Samsung was written and submitted by your fellow student. 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. I would recommend 11 August 2014 FTDipBA19B Poh Jing Xuan Differentiation Strategy , because for example, apple must come up with new features or updates like IOS 8, it is rumored to be launch later this year. The usefulness of the qualitative research design will therefore be limited to getting a comprehensive conceptualization of the differences and similarities between Samsun and Apple’s business strategies (based on the backdrop of organizational decisions made by the companies). Samsung and Apple however share the belief that the production of futuristic and innovative products is the key to future company survival. These partnerships have been part of Samsung’s key areas of operations since its inception. Samsung’s marketing strategy has also been distinguished from Apple’s marketing strategy based on its resort to pursue a web-based marketing strategy. IvyPanda. Tutorial questions – Week 4 Examine the Apple vs Samsung mini-case (p123) and evaluate the business strategy used by each. Therefore, emphasis will be given to explaining the motivations behind the business strategies for Samsung and Apple so that smaller businesses can be able to understand how to develop a successful business strategy. Discuss how Samsung differentiates its product from its competitors Discuss the impact of new competition on Samsung's financial performance Identity any new marketing strategies that Samsung should consider in reaction to new. Looking forward, Samsung expects to take advantage of increased internet penetration in most of its primary and prospective markets to introduce newer technology. 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. 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