Some time after the outbreak of hostilities, Samsung inaugurated its marketing strategy to highlight the main weaknesses of its California competitor. 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. 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. Nonetheless, Samsung enjoys less disruption of employee performance because of vacations and holidays. Samsung’s success has also been attributed to the same factor although there is no single individual attributed to the overall company success. This reputation is financed by a $7 billion allocation in the company’s financial statements for research and development. The US is one country that has ruled against Apple in its case for copyright infringement against Samsung but certain countries such as Germany have ruled in favor of Apple (in the same case). The research methodology mainly uses secondary research, which is limited to the objectives and aims of the initial researchers. This paper focuses on the court battle between Samsung and Apple as one area of competition for the tablet market share. “Just as Frito-Lay thinks about the share of stomach it captures with drinks and snack foods, Apple seeks share of screens be it on Mac, iPod, iPhone or iPad. Finally, this paper also proposes that Samsung should direct more company resources to the home appliance market, which is its area of key competence. The Samsung galaxy tablet is one such example but still, the Korean giant has not been able to surpass Apple’s sales in this regard. IvyPanda. Apple accused the South Korean company of plagiarism. 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. This area of operation has boosted Apple because most companies do not have the grasp that Apple has over its distribution channels. Like Samsung, Apple bets its future success to innovative products. In 2003, Samsung launched approximately 95 new products in the US alone as part of its business strategy to refresh its product lines every nine months (Henny, 2003). However, experts observe that the launch of the ipad 4s jostled Apple’s sales in this market segment and though both companies have not been releasing the exact figures of their sales records, observers perceive the competition between the two countries to be very stiff (Deagon, 2011, p. 1). Though Samsung and Apple specialize in different aspects of hardware and software manufacturing, there has been a strong competition between the two technological companies. Observers note that Samsung’s sponsorship of the Olympic Games elevated the company’s profile to an international level. Every company has chosen different business strategies and models within the marketplace. 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. By innovation, a product becomes the first entrant in the market making the company a market leader. The company’s vice-president affirmed that, “sports sponsorship is a strategy that fits well within our operations at Samsung. Apple focuses on the main features that differentiate the products of the company from those of the rival companies (He 2012, 48). 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. This paper compares the business strategies of both companies and reveals that their production, human resource and marketing strategies are inherently similar. In fact, the company uses its chips to develop its products. The focus on employee excellence is also another example of Steve Job’s ideals. Over a span of three decades, Apple Inc. has been able to establish itself as a force to reckon with in the electronics market. Apple’s success during this period was evident in its sudden rise of stock prices. However, history shows that persistence in this business model (hardware) is not sustainable in the end. Mallin (2011) points out that this strategy “may be combined with creative cost and/or pricing strategies that subsidize purchasing much like Verizon and AT&T has for U.S. iPhone customers” (p. 6). Considering Samsung won the first round of the lawsuit (filed by Apple), experts observe that the company’s market strategy has been increasingly confrontational and aggressive. Therefore, the launch of new products such as Apple television can be countered through the development of efficient marketing and production strategies that will diffuse the influence of the competition in this market. Wall Street Journal, 22(9), 5-10. Apple business strategy can be classified as product differentiation. 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 feature allowed many people to shift from the conventional GSM payment mechanisms to paid VoIP services. The company has received a lot of admiration (both locally and globally) after it was ranked by Fortune magazine as the most admirable company in America (in 2008), and the most admirable company globally (since 2009) (Mallin, 2011, p. 1). This phone was equipped with another feature where users could watch live television on their phones. Apple Inc. has produced apple TVs (which infringes on Samsung’s strong foothold on the sale of television equipment) while Samsung has been resilient in producing tablets (which infringe on Apple’s core business – the sale of the Apple ipad). Though member checking was done during the course of the research process, this paper undertakes the same procedure at the end of the research. 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. 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. This recognition increased the company’s prominence in this regard. Currently Samsung’s strategy focuses on producing high-end goods, which are designed to appeal to the high-end market segment. This business strategy has been seen to cause a lot of stir among Apple’s competitors because it is a source of frustration. Apple has always shown a key interest on the software market but Samsung has stuck to its hardware market. From the beginning, the brand stood out with relatively low prices for smartphones with capabilities equal to those of the other side. Samsung’s focus is to close-in on its competitors such as Sony, and Philips, which have consistently dominated the home appliance market. Samsung, meanwhile, is present on an array of social media channels like YouTube, Twitter, and Facebook pages for … Another constant attribute of Apple’s strategy is that they have been able to maintain a closed-ended business strategy where the public does not know different aspects of the company’s operations. Recently, Apple sued Samsung for copyright and patent infringement after it accused the South Korean technological giant of copying Apple’s ipad and iphone features (Deagon, 2011, p. 1). 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. Establishing a company’s business strategy has a positive effect on realizing a company’s strategic goals. For instance, the company has properly understood its Korean market and is taking advantage of the existing market opportunities in its primary market. The above statement was made in reference to the direction pursued by chief executive officers (CEOs) when pursuing different company strategies. 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. The data analysis section will use four tools. This strategy is further complimented by the focus on work experience as an important ingredient to Samsung’s working plan. 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. 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. The company’s quest is the development of useful products that can benefit consumers (through innovative technology). Then began a real patent warin which Apple has long been successful. Concerning the quick response by Samsung, Henny (2003) explains that Samsung is good at producing easily marketable gadgets that can sell quickly. Under the leadership of Steve Jobs, Apple was able to make a name for itself in the technological map. In addition, Jason (2011) explains that, “Besides dominating DRAM chips, Samsung leads in static random access memory and controls 55% of the $2 billion market for NAND flash memory, a technology mainly used in removable cards that store large music and color-image files” (p. 4). Other companies such as Samsung need to learn the same business strategy by coming up with new and innovative products of their own rather than developing replicas of superior products in the market. To show the difference between Apple and Samsung’s business strategies, Mallin (2011) notes that Samsung’s international strategy has mainly been focused on the US market. Unlike Apple, Samsung is based in South Korea and has a sales network spanning over 60 countries across the globe (Henny, 2003). The interpretive technique will be adopted within the framework of observer impression because the secondary data collected will be analyzed from an analytical and professional view to come up with a structured impression of the study’s findings. In addition, secondary information may contain bias (on the part of the researcher), thereby reducing the credibility of subsequent research information which may be obtained from the same. Some of their corporate actions have been unconventional while others have been outright aggressive. 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. These business processes will be explained in later sections of this study. Samsung’s success is therefore an all-rounded success that is shared by many people. 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). Though Apple Inc. is considered the number one company in the sales of tablets, Samsung is considered the leader in the sale of televisions. Define and explain the business level strategy of Apple and Samsung The approach at the company level used by Apple is a technique for differentiation and cost control by Samsung. Therefore, the South Korean company does not perceive partnerships as a last resort but rather as a core area of its operations. The software market is very lucrative and Samsung should acknowledge this fact and divert its resources in the same regard. The level of brand awareness realized from becoming one of the leading sponsors in the Olympic Games (alone) tripled after the games. It consists … Journal Of The International Academy For Case Studies, 17(7), 1-15. Mallin (2011) explains that Samsung’s strategic intent is to “to become a major global competitor with a premium brand position in the global market” (p. 5). The US consumer base seems to be an inflexible customer pool, which would be harder to penetrate. This move was unpopular among the workers but it was initiated by a change of management. In the recession of 2008/2009, Apple continued to post an impressive sales growth. However, Samsung’s management believes that it is well on its way to becoming the most valuable electronic company in the world. 4. The efficiency of its business strategy has given Apple an edge in reduced supply chain costs of up to a half of the normal costs incurred by other hardware companies (Mallin, 2011). 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). Incorporated in 1977, the company was called “ Apple computer”. Apple has a huge cash pile, but Samsung seems to be more willing and able to put their money to use. Management of Apple Inc. and Samsung Group Analyze Apple and Samsung domestic and global environments, industry, internal capabilities, mission and vision. For example, a few years back, an Asian car manufacturer experienced a great spike in car sales that had a cup holder (Jason, 2011). The company’s sponsorship of the Olympic Games is part of the company’s philosophy of producing better products and services for the betterment of humanity. “In the new market for digital music players, Samsung’s three-year-old Yepp is behind only the Rio of Japan’s D&M Holdings Inc. and Apple Computer (AAPL) Inc.’s iPod. Most of these strategic competencies are designed to boost the company’s strategic planning. 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. 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. The focus on the US market is considered important because a brand’s success in the US is considered the first step towards attaining a global brand status. 1) Apple Apple’s Iphone is without doubt the number 1 Samsung competitor when we talk about high end smartphones. 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. Among all these videos, we have selected those whose mockery is subtle, or almost …. The scope of study will also not be limited to the type of business strategies adopted by the two companies. Similarly, the company’s net margins significantly improved from a mere 0.5% to about 13% (Peggy, 2002). 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). It has a minimalist presence on social media. These competencies are perceived as those components of the companies’ business strategies that are vital to the realization of competitive advantages. 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. Moreover, the market is still growing. 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. 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). Moreover, the new product designs improved Samsung’s status as a young and fashionable brand with strong functions. High definition DVDs differ from conventional DVDs because the latter has a lesser storage capacity. Samsung’s innovation is not only present in the mobile market; the same commitment has also been witnessed in the television market. IvyPanda. 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. In addition, through the company’s culture (introduced by Steve Jobs), Apple seems to be very keen on small aspects about its products. Apple’s marketing strategy has historically been focused on appealing to high-end customers. The investment analyst firm Market Realist identified brand strength, innovation, supply chain management and premium pricing strategy as key factors in the company’s competitive advantage. It is not clear if the marketing strategy adopted by Samsung was deliberate but the ongoing war between the two technological giants has seen Apple’s followers baying for blood (Jason, 2011, p. 1). Therefore, most of Samsung’s marketing strategies have been designed to appeal to the high-end 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. Apple’s corporate-level strategies include the close-related diversification of its products at moderate and high levels, including home computers, personal computers, mobile phones, music stores, and software. Recent smartphones and tablets of the brand are now positioned on the high end. ⏰ Let's see if we can help you! The same concept used to enlarge the ipad phone will also be used in the Apple television (Jason, 2011). The future of the DVD format is at stake because Samsung has developed a high-definition sequel of the format war between Samsung, Sony and Toshiba. Samsung also believes that through a set of values, it can be the best company in the technological world. The company is well known for its innovative products such as Macintosh line computers, the iPod. In an airport, iPhone users find themselves back to the walls, forced to connect their mobiles whose battery is emptying too quickly. This has started tot become evident as Apple’s chief competitor, Samsung has a majority market share in the smartphone industry. However, such a move is not considered a strategic action for the company because it does not add to its revenue growth. The unrivaled success that Samsung has witnessed in the digital world has even scared most of its competitors but in the same breadth, the company has been able to “wow” its consumers by creating superior products. Finally, this aspect of business comparison highlights how the performances of both companies have changed over the years and how they fair with the performance of other technological giants in the same industry. "Comparative Study of Business Strategy for Apple and Samsung." Television sets are estimated to fetch about 30% lower than their markup prices five years ago (Jason, 2011). 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). These codes are usually words that show the link between the information obtained and the research objectives. Henny, S. (2003). Google’s android operating system has been closely associated with Samsung’s products because the two companies share a close working relationship that has seen most of Samsung’s products use the android operating system. Apple does not have the same level of online presence as Samsung and neither does it have the type of sponsorships Samsung enjoys. 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. Samsung’s market strategy has traditionally been holistic in the sense that the company meets the needs of all market segments. 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. In 2007, the word “computer” dropped to reflect the company’s ongoing expansion into the consumer electronics market in addition to its … However, observers note that this acquisition did not affect Apple’s financial books (Jason, 2011). There will be no time limitations to the strategies adopted by the two companies when we analyze the differences and similarities between the two company strategies. Here, he said that. Technologies LLC, a company registered in Wyoming, USA. 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. In 2010 alone, this market grew by close to 200%. 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). However, the concept and importance of business strategy is ambiguous and vaguely understood (partly because of a clear misunderstanding of the concept and partly because of the extensive depth and multifaceted understandings that characterize business strategies). This was a workable business strategy because the company’s customer base grew by close to 1,800% (Jason, 2011). Finally, as part of Samsung’s values, the company believes in the concept of prosperity because it believes it cannot succeed unless it also creates opportunities for other people to succeed. The same approach has been applied in its distribution, marketing and product development strategies. Apple has a strange strategy when it comes to brand promotion. Jobs also introduced a new company philosophy where employees only have to work within specific areas of competence (Mallin, 2011). In reference to this strategy, Samsung’s managing director reported that, “Largely we try to put smart products in the market. Samsung’s management also believes that it holds most of the patents covering wireless communication and Apple should respect these patents. This technique will not only be used to check the validity of the research information obtained because it will also evaluate the accuracy, credibility and transferability of the research information obtained. David Bui CEO and Founder of Saleschase.com made a valid point here as he said, “The most potent weapon in Apple’s pricing strategy is differentiation. In support of this compliance, Samsung states that, “Our 2009 product lines represent a new generation of converged products that blend technology with the active lifestyles of European consumers” (Mallin, 2011, p. 13). Apple: - Innovation or invention is the best way to implement differentiation strategy. Through this conviction, Samsung’s management established that the sports-based strategy fit well with the company’s values and philosophy. While both firms produce and distribute similar products in terms of Smartphones, they employ different marketing strategies to reach out to the customers. London: Marketing Week. 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. Only companies such as Coca Cola, IBM, and Visa have achieved this sort of brand recognition at a global level. Observers note that this gimmick introduced a new twist to the growing market wars between the two technological giants, especially after some market observers hold the belief that the android operating system is nothing more than a cheap replica of Apple’s ipad and iphone (Jason, 2011, p. 1). Chris (2008) explains that. For instance, Samsung electronics is part of a wider group of companies forming the Samsung group. Consumer perception that their brand is ordinary quality goods also assumed to match to journals and business as. 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