IvyPanda. For instance, a company’s business strategy is the best indicator for determining a company’s financial health. The company’s pricing strategy in the mobile phone market has seen Samsung sell its mobile phones at a slightly higher price than its rivals, Nokia, and Motorola. Apple therefore seeks to exploit the potential existing in the growing middle class. Why did you choose to buy the particular brand/model? Sony is estimated to have lost about $940 million to Samsung while Micron, Infineon, and Hynix are estimated to have lost collectively about $2 billion of its profits in the memory chip market to Samsung (Jason, 2011). Certain movie multinationals such as Warner Bros have insisted on using the high definition DVDs but it still remains to be established where other companies will fall. This analysis can also be generalized across other business platforms and organizations because it will be simpler to draw the connection between company performance and business strategies. However, this decision was made with the acknowledgement that the company could lose its fortunes in a blink. This decision was followed the repositioning of the company’s major brands such as flash memories, handsets and consumer electronics into the high-end market by increasing their prices to reflect the high price category of high-end goods. Samsung relies on vertical integration as a chief competitive advantage. The importance of analyzing a company’s business strategy can therefore not be underestimated because it touches on different aspects of a company’s operations (which determine the long-term health of the company). 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). A recent observation on one of Samsung’s advertisements shows that the South Korean company used the same advertising gimmick to market the Samsung galaxy tablet (Jason, 2011, p. 1). This development was a departure from the norm because traditionally, more established brands such as Coca Cola and Visa had a strong impact on people’s lives. In the same event, visitors were allowed to experiment these new products and the company received a lot of feedback regarding these products as well. Samsung does not have a high secrecy regarding its production strategies. Obviously, issuing dividends to the company’s stakeholders is a sure way of sharing the company’s success with the people that matter (Jason, 2011). Samsung’s brand value is now perceived to be in excess of $12.5 billion (Henny, 2003). In an article citing the use of the same child for Apple and Samsung’s advertisements, (Jason, 2011, p. 1) explains that. Samsung Galaxy, LG, Lenovo, Microsoft Lumia, Micromax, Sony Experia and Motorola were the most-used smartphone brands and models. Samsung is founded in 1938 by Lee Byung-Chill and currently … An analytical eye will also be included to sort pertinent issues regarding the research problem and eliminate any information that may not be of use when answering the research problem or meeting the objectives of the study. It is reported that Apple’s innovative strategy has played a big role in revolutionizing the technological market for the developed world. This shift was also informed by the fact that Samsung’s products were increasingly being perceived as a as cheap brands. Apple’s success has however been associated with Steve job’s input and managerial practices. Often referred to as 'two-horse race' about the competition between Apple and Samsung, the ';duopoly' has rewritten the rules of competition in smartphone industry. 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). It is observed that without the inclusion of these strategies, Samsung’s success in brand awareness could not have a rich meaning (Jason, 2011). This study will assume that there are no time variations between the business strategies adopted by the two companies. The research methodology for this study will be centered on identifying the differences and similarities between the business strategies for Apple and Samsung. This paper focuses on the court battle between Samsung and Apple as one area of competition for the tablet market share. These strategies are called the generic strategies and can be used to build competitive advantage. It is estimated that the cost of chips and displays accounts for about 90% of the cost of making new technological gadgets (Peggy, 2002). Unfortunately, your browser is too old to work on this site. 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. As noted in earlier sections of this study, Samsung’s sponsorship of the Olympic Games increased the company’s brand awareness significantly. Please use Indian Currency Option (INR) when you are Making Payment within India. In the midrange, they could look at Intuit ($17B market capitalization) though that might raise regulatory flags. This area of operation has boosted Apple because most companies do not have the grasp that Apple has over its distribution channels. 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. Deagon, B. Samsung’s marketing department has also not established if the aggressive marketing strategy adopted by the company was a sheer coincidence or there was malice involved. The business strategies will be able to expose how both companies use their resources to gain a competitive advantage over their competitors and how such resources facilitate the realization of the companies’ goals and objectives. Samsung, in the last eight decades, has witnessed many competitive businesses dying due to disruption. Samsung only realized this strategy after it noticed that the low-end market was not bringing many revenues to the company, even after the company realized increased sales (in physical quantities). This is IvyPanda's free database of academic paper samples. The ability of Apple to meet the global demand for its products has been a common topic among the industry’s observers because there have been fears that the company’s ability to meet increased global demand may be limited. 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. 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. The Olympic rendezvous acted as an entertainment spot located on a 1024 square feet piece of land on Athens Olympic sports complex where fans and participants sat and enjoyed the games (Henny, 2003). Samsung’s production strategy is rather conventional because Jason (2011) recently quoted a massive investment of about $19billion by Samsung in the improvement and development of its microchip facilities. Chris, H. (2008). If you continue browsing the site, you agree to the use of cookies on this website. Apple also accused him of having copied a lot of features and navigation methods. According to Gartner, in Q1 of 2020, Samsung has maintained the No. Samsung’s management also believes that it holds most of the patents covering wireless communication and Apple should respect these patents. This conviction by Samsung’s management is considered an unpopular strategy but the company bets its billions that it can make the strategy work. 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. 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. This aspect has already been highlighted in this paper as one area of Apple’s key competence areas. Apple vs Samsung: The Smartphone Share War. To establish the validity of the research information obtained, the member check technique will be adopted. 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). “Apple iPhone shipped 38.0 million units to capture 11 percent global smartphone marketshare in Q2 2019, dipping from 12 percent marketshare a year ago,” said Strategy Analytics director Woody Oh. 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. This paper proposes that Samsung should re-evalua… What were the most important deciding factors to buy the particular brand/model?5. Branding strategy followed by Samsung and Apple. In support of this fact, he explains that, “If that’s the case, business strategy and strategic planning are essential to achieving your goal, and no business can possibly head forward over the long term without some form of strategic planning and decision making” (Chris, 2008, p. 5). Currently, the world does not have a doubt regarding Apple’s ability to succeed. Nonetheless, Samsung enjoys less disruption of employee performance because of vacations and holidays. • Nature and business dynamics of smartphone industry and its critical success factors• Competitive strategy, value and volume dynamics between Apple and Samsung in being the market leader• The strategic insights from smartphone industry’s competitive dynamics. ensure the integrity of our platform while keeping your private information safe. 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 vs Samsung: Battle of the Technology Giants”, The Telegraph, 25th August, 2012. The disruption of Apple itunes in the distribution of movies served a big lesson to existing companies, which were affected by apple’s itune launch. Finally, this paper will source information from online sources of research as the last type of secondary research data. Samsung wanted to portray a high-class attribute for its products among the US consumers. This means that there is still more room for other companies to sell their tablets. Now, regardless of which continent one hails from, it is virtually impossible to miss a Samsung brand in the stores. Few companies are known to adopt a counter-intuitive strategy to improve their business success. The second battlefront for Apple will be the stiff opposition forged by existing content distributors. Therefore, to improve its brand image, Samsung decided to focus on the high-end market. However, both companies have pursued different strategies to achieve their success. Major developing markets such as China, India, Mexico, and South Africa have this potential. This case flyer, based on the article1 from The Economic Times, can be used to understand how a competitive strategy is played out between two of the biggest players in an industry - the smartphone industry - and how the industry's competitive dynamics are shaped with several disruptions from other players. Both strategies aim to develop the best human resource by sourcing for the best talent available in the market. 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. Some companies have simple business strategies while others have complex and multiple business strategies. These mergers were aimed at countering Microsoft’s influence in the software market. 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. ET CASES develops customized case studies for corporate organizations / government and non-government institutions. Nonetheless, Apple’s corporate culture revisits the age-old debate regarding which corporate structure is the most effective. The main advantages associated with this data collection tool are its easy availability and ability to remain current. 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. What is your analysis of the volume vs value proportion of Samsung and Apple respectively? The case flyer questions try to analyze the competitive strategies of these two players and their strategies that have shaped the industry dynamics. Research and find out how their advertising and promotion strategy was changed to achieve these objectives. Through this analysis, we will also be able to establish that a company’s business strategy has a big role in determining a company’s business actions. Only companies such as Coca Cola, IBM, and Visa have achieved this sort of brand recognition at a global level. Similarly, the company’s net margins significantly improved from a mere 0.5% to about 13% (Peggy, 2002). Furthermore, the company’ strategy of venturing into new markets is complemented by the push to merge new technology with new markets. The focus on high employee talent was especially fostered by Jobs after he made a debut back to the company after being fired by the company’s board in previous years. 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). IV. 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). Apple’s success during this period was evident in its sudden rise of stock prices. The company has been unapologetic for pursuing this strategy and despite the fears of the global recession; the company has consistently maintained a high-end marketing approach. Through the same platform, China has been able to reach a wider customer base of 196 million subscribers. However, Steve Jobs went against this norm and took his time to focus on the little attributes of the product development strategy. Apple’s financial strategy is characterized by many speculations regarding its yearly cash flows and the existing uncertainties that characterize its mobile phone lawsuits between the company and Samsung (among other technological companies). The venture into the television market is only set to expand Apple’s playing filed because this market is a wider platform compared to the mobile or ipad markets. Apple’s marketing strategy has historically been focused on appealing to high-end customers. Unlike other companies, Apple does not see partnership as an opportunity to grow but as a barrier to growth. Samsung, … 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. 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. Case Positioning and Setting This case flyer can be used in an MBA Program for Business/Corporate Strategy for either of the following concepts/theoretical constructs/discussion modules: “6 Reasons Why Samsung Should Fear The iPhone 6”, The Economic Times, September 6th 2014, page 6. This strategy improved the company’s competitive position with other competitors (Sony being the main competitor). This means that Samsung is diversified with a … Apple has already warmed up to this new business phenomenon and it has made billions as a result. The company’s success and main business competence has been its success in the ipod, iphone and ipad markets. 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). Closing The Gap: Samsung vs Apple Pricing Strategy Published on March 23, 2015 March 23, 2015 • 15 Likes • 1 Comments While Value-driven Apple’s market share (in terms of handsets sold) is lesser, the margins are industry-highest. Can iPhone 6 reverse the market share trend in favor of Apple? Therefore, Samsung undertakes its operations in the most transparent manner and through the right moral compass; the company hopes to entrench its operations on the right ethical foundation (Henny, 2003). Despite the belief, that Samsung’s business strategies are weaker than Apple’s, 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. 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). DVD players also exhibit the same trend because Jason (2011) says that, currently DVD players sell for less than a quarter of their value (five years ago). Nonetheless, it is established that Samsung and Apple command a huge market in the tablet and Smartphone markets. However, based on the numerous volumes of research analyzed in this study, the reorganization of Samsung’s organizational structure, which has seen a reduction in the levels of management, has also contributed to the company’s increased performance. To expose further the difference between Samsung and Apple’s business strategies, Jason (2011) emphasizes the fact that Samsung continues to focus its marketing strategy on the developed markets as opposed to the developing market. Amazon vs. Apple: Competing Ecosystem Strategies The most viable rival to Apple’s iPad isn’t produced by a traditional hardware firm. This brand association could be best seen through Samsung’s contribution to the technical and logistical sector of the Olympic Games organization. Samsung’s innovative strategy has been witnessed in the company’s operations since 1997 when the company’s CEO, Yun, saw the company transition from the analogue market segment to the digital market segment. In this study, the research information will be compared to the existing pool of research sources and any distinctions checked to report on the accuracy or validity of the findings. Apple has pursued this strategy for a long time and evidence shows that it is unapologetic for pursuing this market strategy. Sony was notably among the first companies to restructure its operations according to Samsung’s new operations. These alliances were aimed at developing a superior computer technology, which was going to incorporate Apple’s software and IBM’s (and Motorola’s) hardware competencies. iPhone has used the augmented reality feature and this has helped to revolutionize the customer experience. 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 electronics is also engaged in the same type of business as Apple because some of its main products have been compared to Apple’s. This paper will therefore show what to expect of different businesses, based on their business strategies. In fact, collectively, the two companies are said to stake claim to about 95% of the profits in the Smartphone market (Deagon, 2011, p. 1). To support high employee talent, Apple came up with an effective fellow program, which rewarded employees for their outstanding performance. Samsung saw volumes drop 8.1% in 1Q19 with shipments of 71.9 million. Samsung’s strategy is however focused on the hardware market. (2005). Some companies are also required to improve their overall business operations by coming up with a good plan of action as a requirement for business financing. Many people argued that … This move has been informed by the unique characteristics of the web-based marketing strategy when compared to other conventional marketing strategies. Samsung’s 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). These sponsorships started Samsung’s journey as a global sponsor in Olympic Games – a trend that continued through the sponsorship of the Torino 2006 Olympic Games and the Beijing 2008 games. Seongjae (1999) made this statement to summarize the philosophy of Samsung’s human resource strategy. However, Steve Job’s influence on the technological giant has been the most profound and widely talked about. The company discontinued the production of low-margin goods. The scope of study will also not be limited to the type of business strategies adopted by the two companies. Wall Street Journal, 22(9), 5-10. All in all, cost leadership is the most widely used strategy to gain competitive advantage in the market while at the same time operating profitably. 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). Samsung se encuentra en la segunda posición en cuanto a beneficios se refiere en el mercado de la telefonía móvil, teniendo en cuenta que se ha inspirado en Apple sin olvidar sus méritos propios. There are also more concerns regarding the intrusion into different cultures around the world because most cultures tend to be exclusionary rather than inclusionary. The site ran for about three months and about five million people visited it (Jason, 2011). 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. By extension, this data analysis tool will include the input of experts and professionals in analyzing the data collected. The classroom discussion was carried out as presented in Exhibit (TN)-I.............. Before taking up analysis of CSF’s of the smartphone industry, the industry dynamics, and the competitive strategies of Apple and Samsung, the students/participants, thorough this section, could be sensitized to the perspectives and preferences of the smartphone users. Did a firm’s or firms’ strategy shape the structure or did the structure shape the firm’s/firms’ strategy?2. This strategy was made by Jobs when comparing his company’s strategy with Nike. On the other hand, Igor Ansoff’s Matrix of growth strategies presents ways … Apple’s 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). Currently, Samsung is the world’s largest mobile and smartphones producer. The increased brand awareness also led to a significant boost in the company’s sales. The Apple television was a pet project for former Apple founder, Steve jobs. 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. Furthermore, the company focused on a high-market strategy aimed at developing highly engineered gadgets at a premium but consumers never responded to this strategy positively. The current competitive strategy of each company On top of being bitter competitors in the Smartphone market, Apple and Samsung use different competitive strategies. 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). 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