Their strategy for pricing and marketing is that of differentiation. Furthermore, Chris (2008) explains that it is often difficult for managements to oversee all aspects of a business and still ensure that their competencies are working effectively. Apple and Samsung are some of the giant technological companies engaged in the same type of business. 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. 1. These codes are usually words that show the link between the information obtained and the research objectives. The Promotional Strategies Used by Apple and Samsung. 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. About the same time as the launch of the icloud, Apple had already gained reputation as a very efficient company with a strong foothold on its supply chain. Other companies, which have achieved tremendous success in the past, have not done so by sticking to the hardware market. At the same time, Apple’s rivals created cheaper products such as Microsoft windows, which slowly gained a good reputation in the market (Mallin, 2011, p. 1). Through the same platform, China has been able to reach a wider customer base of 196 million subscribers. This means that there is still more room for other companies to sell their tablets. However, this is not to mean that the findings of this paper will reproduce information from other studies because it will go beyond that to conceptualize the research problem form a holistic perspective, and provide a framework for future studies by carrying out a meta-analysis of existing research. Samsung wanted to portray a high-class attribute for its products among the US consumers. 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. 2 Motorola (MOT) Inc. in handsets sold, it has just passed it in overall global revenues” (Jason, 2011, p. 13). However, on a larger platform, Samsung’s resources are designed to strengthen its areas of key competence – television market and other hardware market segments. 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. Concerning the quick response by Samsung, Henny (2003) explains that Samsung is good at producing easily marketable gadgets that can sell quickly. To establish the validity of the research information obtained, the member check technique will be adopted. Though the memory chip business is prone to the challenges of its cyclical market, Samsung’s presence in this market segment is unrivaled. 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. It consists … You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. The data analysis section will use four tools. 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. 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. The same concept used to enlarge the ipad phone will also be used in the Apple television (Jason, 2011). Through this initiative, Samsung won an American award in product design (the most prestigious award in product design) (Henny, 2003). This business strategy has been seen to cause a lot of stir among Apple’s competitors because it is a source of frustration. 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. Moreover, different people were offered a platform where they could interact with international stars in a laser-light event. Several employees have benefitted from this program and generally, the program is seen to have a positive impact on the motivational levels of the employees (Mallin, 2011, p. 5). The scope of study will also not be limited to the type of business strategies adopted by the two companies. Tech giants Apple have been selling their line of products such as the Iphone, the Ipad and the Ipod for about a decade now. Part 1: Product Differentiation. The thesis will look into products introduced within the last two years. Bowman’s Strategic Clock (1997) is the other method used regularly to evaluate strategic options. The online marketing strategy has therefore been perceived to be very efficient and Samsung has adopted this strategy as part of its core marketing strategies. This was one pet project for Jobs. The importance of learning a company’s business strategy is part of strategic management. 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). Partnership is therefore perceived as a last resort because Apple has attempted to silence their partners by sieving what they can disclose (about Apple’s operations) to the public. Another strong point observed from the researches sampled is the fact that Apple maintains a high-market strategy that bears little or no importance to the low-end market. The strong customer pool would occasionally meet in different company expos around the world. 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. Learning a company’s business strategy is an important predictor of the company’s performance in the business environment. The legal battle between the two giants of the mobile market has been the starting point for a quarrel that has only increased over the years and product launches. Other applications such as the appstore have been highlighted in this study as having raked millions of dollars for the American giant. Projects that are undertaken without his input therefore tend to take a longer time before completion. 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. 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. Samsung's business model has focused … 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. Employees who may end up performing below par are therefore identified (earlier) in the recruitment process and relieved of their duties. However, it is important to point out that this area of competence has been ranked among the best globally (Mallin, 2011). Samsung’s innovation is not only present in the mobile market; the same commitment has also been witnessed in the television market. The first strategy adopted by the company was using available resources in brand building. Through the meta-analysis, it is equally easy to derive the statistical testing for all the factors involved in the progress of the secondary researches (highlighted in the secondary research sources). Observers perceive this business strategy as a confusing and risky one, especially if Apple were to apply the same strategy to some of its close business associates such as suppliers, distributors, and social media (VAR, 2005, p. 3). Business strategies are known to be the path taken by different companies as they try to outdo their competition. Apple uses a multifaceted differentiation strategy in which they are innovators, capitalize in its brand and seeks to offer excellent customer services. The company’s growth chart is estimated to have surpassed the company’s expectations with more than 122 million Macs sold since the company started producing its mainstream products in 1984 (Jason, 2011). However, this trend has changed and many companies are now operating in multiple business segments. Here, the computation of the findings and the data analysis process will be done. These research sources will be relied on because of their relevance to the research topic and their high credibility and validity (Tim, 1991, p. 56). 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. Apple has pursued this strategy for a long time and evidence shows that it is unapologetic for pursuing this market strategy. However, Apple seeks to engage an incremental product strategy for the developing world. 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). 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). Samsung also strives to achieve this reputation, though their main motive is pursuing a pricing strategy that aims to sustain profit growth. 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. May 28, 2019. https://ivypanda.com/essays/comparative-study-of-business-strategy-for-apple-and-samsung/. The constant attribute here is that people will always undertake business actions that they believe will draw them closer to achieving their business objectives. Apple has always shown a key interest on the software market but Samsung has stuck to its hardware market. 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. 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. Furthermore, to overcome the challenges of a poorly performing global economy, Samsung intends to forge better and close relationships with its consumers. (2005). Web services were available at these centers and participants were allowed to make online contact with people from their home countries. Apple’s business strategy has proved successful over the recent past. Both strategies aim to develop the best human resource by sourcing for the best talent available in the market. When reviewing the history of Apple, it is evident that this attitude permeated the company during its peaks of success. Both developments infringe on Samsung’s core market segment. The difference between the high definition DVDs and the blue ray technology is that high definition DVDs can be played on old DVDs while blue ray technology does not allow for this provision. Through the broad differentiation generic strategy, Apple stands out in the market. This approach is seen to be successful in the sponsorship of sporting events such as the world Olympics. In this regard, Morrison (2004) notes that, Samsung has operated to save more money while Apple’s financial strategy has been based on expending its surplus resources for more competitive power. The latter may include the use of new technology, employment of competent and highly trained personnel (among others). Mallin (2011) observes that Samsung’s marketing strategies are far more distinct than Apple’s. Challenges a) b) c) Is it possible to increase profit margins while maintaining product differentiation strategy ? Apple and Samsung have achieved high levels of business success over the years. The level of brand awareness realized from becoming one of the leading sponsors in the Olympic Games (alone) tripled after the games. 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. Tim, P. (1991). 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. 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). Some of the threats, which are evident in the business environment, may not be motivated by the competition but by the consumers. May 28, 2019. https://ivypanda.com/essays/comparative-study-of-business-strategy-for-apple-and-samsung/. 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). For instance, the recent Thailand flooding disrupted the company’s operations because it distorted the supply chain of disk drive for close to half a year (Jason, 2011). Seongjae, Y. 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. Under the leadership of Steve Jobs, Apple was able to make a name for itself in the technological map. Samsung’s brand value is now perceived to be in excess of $12.5 billion (Henny, 2003). This is also the main reason why there has been scanty information regarding the company’s real sales figures (especially when the company’s figures are compared with its competitors). Though member checking was done during the course of the research process, this paper undertakes the same procedure at the end of the research. However, both firms utilize various media channels to … 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. In 2007, the word “computer” dropped to reflect the company’s ongoing expansion into the consumer electronics market in addition to its … We can describe Apple’s strategy in terms of product differentiation [Pt 1] and strategic alliances [Pt 2]. 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. ensure the integrity of our platform while keeping your private information safe. However, they also make a lot of crap. However, within these similarities, both companies have different corporate cultures, which differentiate the companies’ ideals. Apple prides itself on its innovation. The company believes the Apple television is going to be a big project for the company because of several reasons. Samsung is an innovative brand and has used a mix of cost leadership and differentiation cleverly to grow market share and achieve stronger financial results. Recently, the company’s CEO stated that if the company exits the manufacturing industry, it is going to lose (Mallin, 2011, p. 5). Some of the strategies adopted by both companies are similar in composition but others have inherent differences. This conviction is supported by their human resource strategies, which aim to attract a competent human resource pool that is able to come up with new ideas for new product lines. Samsung’s strength in the same market has also seen other companies lose a lot of money as Samsung’s stamps its authority in this market. Samsung’s market strategy has traditionally been holistic in the sense that the company meets the needs of all market segments. High definition DVDs differ from conventional DVDs because the latter has a lesser storage capacity. This reputation is financed by a $7 billion allocation in the company’s financial statements for research and development. More importantly, it is easy to know how a company will perform, viz-a-viz its external business environment. In the recession of 2008/2009, Apple continued to post an impressive sales growth. VISA sought the services of MSN to create more brand awareness about a new promotional campaign aimed at reaching out to young people aged 18-29 through a website, which was custom designed to accommodate the campaign titled Happen (Jason, 2011). For instance, in the past, different companies used to stick to their traditional brands and certain technological gadgets served only one function. 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). 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. Chris (2008) explains that. Apple uses such innovation strategy. 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. The tablet market is expected to be dominated by Apple Inc. but so far, the American company has only reported sales figures of about 30 million. 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. 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). b)Differentiation strategy The meaning of differentiation policy: In command to attain competitive advantage compared to the opponents, businesses execute the plan to make a distinction themselves from the opponents in features of item for consumption, service, appearance, and other (Singer, 2007). Since the company started business in the 70s, it has created a lot of buzz. During this period, Samsung sold about 24 to 28 million Smart phones while Apple sold about 17 million smart phones. The company’s new CEO is on record as sitting on a load of cash amounting to more than $100 billion (Jason, 2011). 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. For example, Samsung has consistently stuck to the manufacturing industry, especially after the success of the microchip market segment. Then began a real patent warin which Apple has long been successful. 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. It is therefore important to note that, the 2000 Sydney Olympic Games increased the company’s brand awareness from 5% to 16.2% (Henny, 2003). However, due to the ongoing court battles between Apple and its rivals, the company is expected to spend a few million dollars settling these cases but in equal regard, observers do not see this move as having a significant impact on Apple’s financial books (Jason, 2011). The strong brand loyalty among Apple’s consumers was however built naturally due to impressive product quality. Highly accurate and valid research information should reflect the views, feelings and experiences of the authors who developed the previous research (which is relied on in the study). Here, Samsung branded most of the sporting equipments used in the games and facilitated the use of all communication equipments in the 2002 Olympic games (Henny, 2003). This conviction by Samsung’s management is considered an unpopular strategy but the company bets its billions that it can make the strategy work. However, such a move is not considered a strategic action for the company because it does not add to its revenue growth. We can describe Apple’s strategy in terms of product differentiation and strategic alliances Product Differentiation. Samsung does not witness the long queues that Apple witnesses during its product launches. 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). Samsung believes that it is easy to get different software from any manufacturer but it is not easy to obtain quality products from any manufacturer. 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. Jason (2011) also questions the sustainability of the company’s strategy in the coming years. 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