differentiation strategy of apple and samsung

More so, this situation is often experienced when businesses are performing poorly and they have to revamp their operations to project a positive performance outlook. 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. For instance, a company’s business strategy is the best indicator for determining a company’s financial health. The brand positioning of samsung has been such that it has something for everyone which wide array of products. Tim, P. (1991). It is however easy for a company’s’ management to ensure their companies’ competencies are effective to guarantee their competitive positions. In the same event, Samsung conducted several public relations sessions with other stakeholders to elevate the company’s position as a top-notch brand. 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. Though, Samsung and Apple alone assume 70 percent control of the market, and that should worry other players. In fact, most of the company business strategies are part of Steve Job’s ideals. Distribution in the Marketing strategy of Apple Apple has a very smart retailing setup. Furthermore, to overcome the challenges of a poorly performing global economy, Samsung intends to forge better and close relationships with its consumers. This paper also seeks to establish how Samsung and Apple use their value chain competences as part of their business strategies. You are free to use it for research and reference purposes in order to write your own paper; however, you must. The spot also acted as a recreational facility for all people, but more importantly, the visitors were given a chance to try out Samsung’s products at the venue. From this understanding, some researchers note that Samsung and Apple share similar business strategies while others note that the two companies have different business strategies. This educational qualification is a form of benchmark for Samsung’s managers and it acts as a sieve to attract the best human resource talent available in the marketplace (and eliminating all irrelevant human resource talents). The high level of brand awareness received by Samsung was part of a two-fold strategy designed by Samsung (as a motivator to sponsor the Olympic Games). This risk is further complicated by the fact that Korea has experienced several corporate governance scandals that are bound to cast doubt on the real accounting figures of the company. Though many observers term apple’s market focus as arrogant, the company has earned a reputation for producing minimal gadgets, which do not compromise on quality (Jason, 2011). "Comparative Study of Business Strategy for Apple and Samsung." Comparative advertising is complex to implement and can be dangerous for those who use it. This generic strategy focuses on key features that differentiate the company and its products from competitors. Therefore, Apple’s 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. Simply, Samsung does not adapt to conventional ways of implementing its competitive strategies. Samsung also needs to reevaluate its business strategies according to the current intrigues of the technological market. The company believes the Apple television is going to be a big project for the company because of several reasons. This analysis acts as an important pointer to the strengths and weaknesses of the different portfolios operated by both companies. (2002).Samsung continues its high-end strategy. A These competencies are perceived as those components of the companies’ business strategies that are vital to the realization of competitive advantages. The company does so by anticipating new changes in the business environment by establishing the needs and demands of the market so that the company’s success is sustainable in the long-term. Samsung believed that it had to display its products in this platform because of the belief that the best way it could adequately increase its brand awareness was through publicity. This diversity is likely to be realized from the inclusion of diverse information sources in the secondary research studies. To handle the competitive pressure, the organization can implement a mix of cost leadership, differentiation, and focus strategies. Nonetheless, Samsung’s 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. Instead of leading only on the basis of costs, it has used some elements of cost leadership alongside differentiation to reach a larger audience segment worldwide which has led to higher sales and revenue. Most of Samsung’s plants are located in third world economies, which do not have strong labor laws that protect their employees from unfair work practices. 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). However, there are impending problems associated with this strategy, but top among such strategies is regulatory problems. This differentiation strategy focused on producing high quality products at a low-cost to the consumer. Partly, the company’s struggle to post commendable sales was worsened by the poor performance of the global economy in the past few years coupled with a worsening local economy for South Korea. Need a custom Research Paper sample written from scratch by Peggy, A. This leads to improved productivity. (2011). Unlike Apple, Samsung is based in South Korea and has a sales network spanning over 60 countries across the globe (Henny, 2003). The appstore was also introduced during this period and consumers were given an opportunity to purchase different applications for their technological gadgets (iphone and ipad). When reviewing the history of Apple, it is evident that this attitude permeated the company during its peaks of success. Apple and Samsung’s distinct approaches to the mobile market underline their long-term visions for the mobile space Peter Newman 2019-08-01T13:16:25Z The … This is one strategy that Samsung ought to learn from Apple because it has been left to pick up the pieces behind Apple’s success (at least in the tablet market). Mallin (2011) observes that the success of Samsung can be attributed to its unique competitive strategies. Recent company events have seen Samsung adopt a more comprehensive market strategy that seeks to impose its presence on the global market. For instance, instead of adopting a vertical expansion strategy, the multinational could adopt a horizontal expansion strategy where it seeks partnership with other businesses, which do not engage in its core business. Similarly, the company’s net margins significantly improved from a mere 0.5% to about 13% (Peggy, 2002). Samsung’s business strategy has however been compounded by the growing convergence of different technologies in the market. Among the selected individuals were Samsung employees. Apple is one of the most elegant advertisers as can be seen from any of its print ads in newspapers. 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. As part of Samsung’s strategy to dominate the digital market, the South Korean company hopes to eliminate the bottleneck challenges and the lack of uniformity in its production strategy (as some of the main barriers preventing it from ascending to the top of the digital market). The suit was intended to stop Samsung from selling its galaxy tablets in the American market. 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. Apple and Samsung have achieved high levels of business success over the years. However, on a larger platform, Samsung’s resources are designed to strengthen its areas of key competence – television market and other hardware market segments. Apple recently shared its updated services strategy showcasing product enhancements, the launch of News+, and new Apple-exclusive content for the Apple TV. It represents one of the company’s key areas of competence because the company has achieved a high level of success on the memory chip market. 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. The generalizability of the research information may also be limited to a specific component of the businesses in study. In addition, unlike Apple, Samsung has forged many business partnerships with other companies within the same industry. In 2012, Apple is expected to achieve far greater growth figures because its retail presence is growing and the global economic situation is slowly improving. The first goal of improving the company’s brand awareness in the international platform was however intended to beat its rival, Sony, which also enjoyed positive global brand awareness. To emphasize this point, Mallin (2011) explains that Samsung decided to adopt business-to-business opportunities and existing enterprise space in the European market as part of an ambitious marketing plan to launch a series of exciting new products in the European market. Therefore, to improve its brand image, Samsung decided to focus on the high-end market. Netflix’s growth was therefore hampered as its competitors continued to gain a larger market share because of the environmental boundary changes that did not work in its favor (Jason, 2011). From the beginning, the brand stood out with relatively low prices for smartphones with capabilities equal to those of the other side. In the Korean market, Samsung is deemed the leader in innovation technology. Some time after the outbreak of hostilities, Samsung inaugurated its marketing strategy to highlight the main weaknesses of its California competitor. Apple television also intends to use motion sensor technology where the product will be able to follow the action in a room (through a video conferencing platform) and relay the same on the screen. Despite the above intrigues and questions, Deagon (2011) observes that, Samsung and Apple’s business strategies have been able to convey different ideas we hold of certain technological gadgets today. In addition to the screen of the iPhone voluntarily extinguished, its list of features was much shorter than that of the Galaxy S3. In 2007, the word “computer” dropped to reflect the company’s ongoing expansion into the consumer electronics market in addition to its … Its marketing strategies are mainly based on television and print advertisements. Apple has already warmed up to this new business phenomenon and it has made billions as a result. However, Apple seeks to engage an incremental product strategy for the developing world. 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 view is aimed to developing a connection between the performance of Samsung and Apple in the technological market. Both companies therefore strive to make innovative products the key driver to their production strategies. Some of these resources may be wholly owned by the companies but others may also be acquired through partnerships, joint ventures and similar arrangements. Maintaining Brand Reputation & Loyalty The need to continuously develop and implement new differentiation More importantly, it is easy to know how a company will perform, viz-a-viz its external business environment. This debate touches on different aspects of corporate cultures such as flat, tall, casual or formal organizational structures and corporate cultures. • For quite some time, PC fans enjoyed the work of buying their own parts and building their own tower systems. (2011). Challenges a) b) c) Is it possible to increase profit margins while maintaining product differentiation strategy ? Samsung does not have a high secrecy regarding its production strategies. It is observed that without the inclusion of these strategies, Samsung’s success in brand awareness could not have a rich meaning (Jason, 2011). 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. Apple is an American corporation that designs, manufactures and sells electronics, computer hardware and software, and personal computers. Technological Innovation as Part of the Product Strategy. Different factors are usually in play. Furthermore, Samsung’s move is unpopular because hardware tends to have a shorter lifecycle and they are equally easily commoditized. The new company strategy informed the company’s decision to discontinue the production of television sets, which were below the 26-inch specification (Mallin, 2011, p. 5). Television sets are estimated to fetch about 30% lower than their markup prices five years ago (Jason, 2011). We will write a custom Research Paper on Comparative Study of Business Strategy for Apple and Samsung specifically for you for only $16.05 $11/page. 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. The qualitative research design will be used as a precursor to quantitative research, which may form the basis for future studies on Apple and Samsung’s business strategies. Apple’s plan to increase its production capacity to suit the growing global demand for its products highlights the existing production capacities in China. While Apple is the leading firm in the smartphone market, Samsung is the closest competitor. Peggy (2002) reports that Samsung sold its mobile phones at $191 while Sony sold its mobile phones at $154 and Motorola sold its mobile phones for a mere $147. While Samsung's business-level strategy is cost leadership, differentiation is also remarkably evident. This recognition increased the company’s prominence in this regard. Jason (2011) observes that Apple and Samsung’s marketing strategies are similar because of their focus on the high-end market. It has very little influence over its distribution partners. Apple unveils Motorola alliance: New move in digital strategy will see music downloads to mobile handsets: Plan aims to keep iTunes ahead of its competitors. Tutorial questions – Week 5 TESCO PLC: A case study in COMPETITIVE BEHAVIOUR Read the Tesco mini-case (page 133) 1. (2019) 'Comparative Study of Business Strategy for Apple and Samsung'. The company’s most notable products include Macintosh computers, ipods, ipads and the Apple TV. Differentiation is what allows Apple to price its products at a premium and compel customers to compare Apple products with other Apple products, rather than with lower-priced products from other reputed marketers. As mentioned in earlier sections of this paper, this study will use secondary research sources as the main data collection tool. Apple and Samsung’s 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. Samsung has come from a period of financial doom to become one of the coolest brands in the technological market. (1999). This is IvyPanda's free database of academic paper samples. Samsung gear and other smart watches are rising competitors to Iwatch although Iwatch still holds a majority market share. The 90s period also marked an ear of alliances between Apple and other technological companies such as IBM and Motorola (Mallin, 2011). For instance, Samsung’s galaxy tablet has been compared with Apple’s ipad, and Samsung’s Galaxy S mobile phone has been compared with Apple’s iphone (Mallin, 2011). Unlike other companies, which have embraced partnership as a viable business model, Apple’s strategy has been to do business alone. Apple Inc.: Product Portfolio Analysis. For example, the company limits the number of vacations its employees can take within their working life. Another differentiation strategy that Apple has adopted relates to the distribution of its products, where it has established retail stores around the world. Similarly, the company has created an unrivaled brand loyalty among its most valued customers around the world. It’s an integral part of our company’s philosophy” (Henny, 2003, p. 5). Apple has remained a leader in its market segment and through its innovation; it has been able to produce superior and futuristic products. However, Samsung’s management believes that it is well on its way to becoming the most valuable electronic company in the world. The above strategies could be a useful strategy to leverage Apple’s technological prowess because it would help reduce the regulatory inhibitions of expanding in its traditional market segment. The decision to sponsor the Olympic Games was also part of Samsung’s acknowledgement that sports play a vital role in the betterment of the society. The methodology for this study is mainly based on the qualitative research design. This product was revolutionary because it marked Apple’s entry to the PDA market and consequently, its interest to develop the Apple ipad and iphone. Apple’s business strategy has proved successful over the recent past. The product is perceived to be next generation equipment, which sets it on the warpath with other established brands in this market such as Samsung and Sony. Therefore, any information that is shared in the public forum is done under the permission of the management. Apple's approach is product differentiation technique. Steve Jobs often took sick leaves but was present to officiate Apple’s launch of the icloud. Long leader in the smartphone market since the iPhone, Apple has been dethroned by Samsung. Jobs also introduced a new company philosophy where employees only have to work within specific areas of competence (Mallin, 2011). STP Process. Morrison (2004) observes that Apple and Samsung have had very different business strategies (based on their financial resources). Samsung on the other hand hopes to attract and retain the best human resource by providing the best working terms possible. The company’s vice-president affirmed that, “sports sponsorship is a strategy that fits well within our operations at Samsung. However, this trend has changed and many companies are now operating in multiple business segments. The concept of brand differentiation has allowed Apple to create a virtual split in the world of … 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. 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). 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 first strategy adopted by the company was using available resources in brand building. The main assumption underlying this study rests in the historical spread of business strategies adopted by Samsung and Apple. Apple’s human resource strategy traces its roots to Steve job’s business principles. Business actions are always strategized because they are designed to achieve a specific goal (Chris, 2008). The printer and notebook PC are only some of the products that have been launched in the European market using this strategy. Introduction Backgroung The Rivalry Going Forward Exhibits. A year after the Sydney 2000 Olympic games, the company’s sales increased by nearly 44% (Henny, 2003). 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. Samsung’s focus on the hardware market is however not random. Therefore, adding or omitting a small attribute to a company’s production strategy may determine the future sales of the business or its sustainability in the long-term. Apple’s comeback to profitability occurred in the 1998-2005 period when Apple developed new product lines such as imovie, and new operating systems for its Macintosh computers. This paper compares the business strategies of both companies and reveals that their production, human resource and marketing strategies are inherently similar. During the same event, Samsung also hosted an event dubbed “national days” that highlighted the national cultures of different countries that participated in the sports. Apple started business in 1976 and has since been in competition with other giant multinationals such as Microsoft and IBM (especially in the computing market). Apple designs are user centric and bridges the gaps that that are unseen or unaddressed by the competitors. Apple-Exclusive content for the business strategies adopted by Apple ’ s marketing strategies are part Samsung. Made a lot of stir among Apple ’ s main operating environment is South Korea while Apple ’ s planning. Played a big risk attached to it who may end up performing below par are therefore seen to a! 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