We can describe Apple’s strategy in terms of product differentiation [Pt 1] and strategic alliances [Pt 2]. 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. 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). This move was unpopular among the workers but it was initiated by a change of management. The concept of brand differentiation has allowed Apple to create a virtual split in the world of … This brand association could be best seen through Samsung’s contribution to the technical and logistical sector of the Olympic Games organization. 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. This shift was also informed by the fact that Samsung’s products were increasingly being perceived as a as cheap brands. … Despite Myths, Secondary Research Is Valuable Tool. The second reason Apple wants to venture into the television market is the existing platform expansion through form factor. Alternatively, they could go big and buy Mastercard ($50B market capitalization)” (Mallin, 2011, p. 4). The company’s growth into profitability was also characterized by the Intel transition that occurred in the 2005-2007 period when Apple merged its computer production with Intel (Mallin, 2011). Samsung’s international marketing strategy has therefore been focused on the US market. Their strategy for pricing and marketing is that of differentiation. For instance, they have been able to control their human resource strategy through the counter-intuitive strategy, which weans weak employees. The company consequently made many millionaires – a development that elevates it above many of its rivals who have also conducted IPOs in the past. Steve Jobs often took sick leaves but was present to officiate Apple’s launch of the icloud. For instance, it is observed that even though many people (and small companies) do not understand the exact workings of the Smartphone, Apple has been able to market the Smartphone (through the iphone) as an important component of modern lifestyle. 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. Most of these strategic competencies are designed to boost the company’s strategic planning. Apple expects to undergo the same court battles for some of its licensing and patent agreements regarding the use of the iphone in China. For instance, environmental pressures, internal weaknesses and opportunities always work towards boosting or derailing the success of a company. Business actions are always strategized because they are designed to achieve a specific goal (Chris, 2008). “Nike makes some of the best products in the world – products that you lust after, absolutely beautiful stunning products. For instance, IBM was known to be a very strong hardware manufacturer but after the business landscape changed to the software market, the hardware manufacturing giant was able to save itself from being obsolete to become one of the most competitive companies today. Different factors are usually in play. For instance, the launch of the itunes and icloud are just some of the few software innovations that Apple has ventured. 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. 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). 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. Recently, the company launched a new cell phone that allows its users up to 30 minutes of video time on the phones (Henny, 2003). The secondary research methodology will therefore be useful in gaining a proper understanding of the research problem. The interpretive technique is the first type of data analysis tool used in this study. The main assumption underlying this study rests in the historical spread of business strategies adopted by Samsung and Apple. Jobs stressed on cultivating employee excellence by starting a fellow program where outstanding employees were rewarded for their performance. As noted in previous sections of this study, this research goal is informed by the ongoing market, legal and corporate wars between the two technological giants. IvyPanda. Through this conviction, Samsung strives to ensure that all its operations are done fairly and respectfully to protect the interests of the company’s stakeholders. 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. The traditional business strategy of producing their main products in America is no longer a viable strategy because there is a high flexibility and diligence that is available in external markets. Mallin (2011) observes that the success of Samsung can be attributed to its unique competitive strategies. The Korean market was among the first market to enjoy Samsung’s innovation. “The South Korean consumer electronics giant – now the number one Smartphone maker in Australia, according to IDC – released two ads for its Galaxy S II Smartphone that launched thinly veiled attacks on Apple products and ridiculed the hordes who line up for days to buy them” (Jason, 2011, p. 3). Furthermore, to overcome the challenges of a poorly performing global economy, Samsung intends to forge better and close relationships with its consumers. For instance, the company has properly understood its Korean market and is taking advantage of the existing market opportunities in its primary market. Morrison (2004) observes that Apple and Samsung have had very different business strategies (based on their financial resources). Consequently, the company decided to develop online versions of its movies and retail them online. Therefore, to improve its brand image, Samsung decided to focus on the high-end market. However, as explained in earlier sections of this study, some of these companies have a working relationship with Samsung. In fact, most of the company business strategies are part of Steve Job’s ideals. Part 1: Product Differentiation. Apple’s ability to integrate useful components of its hardware and software components has been identified as a platform that the company uses to decrease its aggregate cost (Mallin, 2011). Just as salty snacks drive you to drink more soda, Apple TV will leverage device interoperability via iCloud” (Jason, 2011, p. 4). Specifically, the multinational technology company differentiates its products and services on the basis of simple, yet attractive design and advanced functionality. I would recommend 11 August 2014 FTDipBA19B Poh Jing Xuan Differentiation Strategy , because for example, apple must come up with new features or updates like IOS 8, it is rumored to be launch later this year. The 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). This analysis will be an important tool in benchmarking the performance of Samsung and Apple viz-a-viz their business strategies. The television line was among many new television designs using about 1.3 micro mirrors to increase the picture quality (Henny, 2003). The brand positioning of samsung has been such that it has something for everyone which wide array of products. Jason (2011) observes that the world market is obsessed with hi-tech technological gadgets such that it has been easy to overlook what a shortfall of these gadgets may mean for the consumers. Samsung’s management also believes that it holds most of the patents covering wireless communication and Apple should respect these patents. For example, the launch of the LED screens in the European market reduce energy consumption by about 40% because they do not depend on cathode ray tube as its primary source of light (Mallin, 2011). For instance, any move by apple to acquire another technological company (as part of its expansive and ambitious plan to strengthen its market base) would be viewed with extreme suspicion (Jason, 2011). As noted in previous sections of this paper, other technological giants like Samsung and Sony have had a strong foothold in this market and they are expected to counter Apple’s venture into the television market through their pocket-friendly pricing strategy. The Apple television was a pet project for former Apple founder, Steve jobs. Currently, other technological giants in the digital market (such as Sony) are becoming more worried about Samsung’s growing success because recent reports show that existing technological companies are always seeking to know what Samsung is doing. 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. The findings of this paper will not only be useful in understanding Samsung and Apple’s business strategies because from business strategies, smaller businesses can also learn new strategies and adopt new recommendations regarding how such businesses have been able to succeed in today’s competitive world. And we paid a lot of attention to our distribution channels. Later, Samsung also decided to sell about $2 billion worth of non-core business so that it could concentrate on its main businesses that account for the company’s main revenue stream. The research methodology mainly uses secondary research, which is limited to the objectives and aims of the initial researchers. This development was seen as the main reason why Samsung exited the lower-margin segment of the television market by stopping the manufacture of television sets, which were lower than 27 inches. To establish the validity of the research information obtained, the member check technique will be adopted. 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). Samsung’s presence is also seen on sporting equipment such as skating boards, sporting gears, billboards and other places. Currently Samsung’s strategy focuses on producing high-end goods, which are designed to appeal to the high-end market segment. 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. Therefore, the South Korean company does not perceive partnerships as a last resort but rather as a core area of its operations. Porter explains that a company’s activities can be easily grouped into two segments: primary activities that involve the utilization of a company’s resources to produce the company’s main products and services, and secondary activities that improve the effectiveness of a company’s primary activities (Chris, 2008). 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. Therefore, a company’s business strategy can be assumed to be the source for long-term profits because a company’s fight in the business world determines its market share and consequently its profitability. 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. Apple has remained a leader in its market segment and through its innovation; it has been able to produce superior and futuristic products. In early 2000s, the company’s management decided to downsize its workforce by about 24,000 employees (Mallin, 2011). Moreover, Henny (2003) perceives this market strategy as a credible way of marketing. However, Samsung has not shown any interest in joining the growing number of companies entering the software market. Apple’s pricing strategy is relatively expensive and charges a higher premium for their products. However, within these similarities, both companies have different corporate cultures, which differentiate the companies’ ideals. This strategy is supported by Samsung’s participation in the Salt Lake 2002 Olympic Games where the company offered millions of dollars in sponsorship through the provision of wireless equipment to facilitate the smooth running of the games (Jason, 2011). Indeed, “the Galaxy S2 looked too much like the iPhone 4” and the “Galaxy Tab was visually similar to the iPad”. The data analysis section will use four tools. Considering the belief that software is the future for technological companies, many observers say that Samsung is taking a huge gamble by sticking to its hardware market (Mallin, 2011, p. 5). Later, Samsung became … In this spot promoting the Galaxy S5, Samsung dwells on the lack of autonomy of iPhone 5S and openly disparages Apple users. 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. This closed-ended strategy has seen the company manage small attributes of the business environment that are often perceived to be “uncontrollable” by Apple’s competitors. 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. This was a workable business strategy because the company’s customer base grew by close to 1,800% (Jason, 2011). 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. 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. High definition DVDs differ from conventional DVDs because the latter has a lesser storage capacity. Apple should therefore focus on meeting its surging demand and Samsung should reevaluate its entire business strategies. Looking forward, Samsung expects to take advantage of increased internet penetration in most of its primary and prospective markets to introduce newer technology. During the 90s period, Apple tried to reinvent its products by launching new product lines such as Apple’s Newton which proved to be unsuccessful in the market. "Comparative Study of Business Strategy for Apple and Samsung." Seongjae (1999) made this statement to summarize the philosophy of Samsung’s human resource strategy. (2002).Samsung continues its high-end strategy. Samsung also has a unique work ethic, which guides the behaviors of its employees. VARbusiness, 21(3), 3-6. IvyPanda. Samsung’s desire to change the terms of engagement as part of its competitive strategy is also intended to come up with new and unexpected strategies for overcoming its competition. 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). Apple Company has utilized this strategy since it was founded and has retained its competitive advantage in the computer and consumer electronics industry. Cisco is one such entity. From the growing potential in these emerging markets, Apple perceives the establishment of a market access strategy to be more important than introducing innovative products. The site ran for about three months and about five million people visited it (Jason, 2011). Since Samsung and Apple have mainly competed on the Smartphone market segment, it is important to evaluate the sales of both companies on this front. When reviewing the history of Apple, it is evident that this attitude permeated the company during its peaks of success. Publicity is considered an effective way of marketing because it is known to be highly effective. This managerial trait has paid off for Apple because its products have a keen attention to detail and many observers perceive them as well-though out products (Mallin, 2011, p. 5). The difference between Samsung and Apple’s international marketing strategies therefore lie in their focus on developing and developed markets. There are many lessons that can be learned from the Neflix case. The closed-ended approach to Apple’s operations has seen the company significantly reduce the negative consequences of publicity. The caliber of celebrities that fans could interact with included musicians, sportsmen, and sportswomen. Therefore, the true “effect size” of the data collected from the secondary research sources will be estimated by the meta-analysis. Jason (2011) also questions the sustainability of the company’s strategy in the coming years. Samsung has also achieved tremendous success based on its business strategies. 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). 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). (2005). The company is well known for its innovative products such as Macintosh line computers, the iPod. 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). 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). Samsung is also known to have a remarkable sales record in LCD displays and LED screens which puts it at the first spot in the world (compared to other companies, which sell LED and LCD screens). 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. Samsung perceives the online communication channel as a unique way of communicating to its consumers because it is more interactive and involving. IvyPanda. Like Apple’s “Siri” platform, existing television pioneers such as Samsung are expected to scale Google’s android platform to create friendlier interface features that are expected to be revealed through the “siri” platform. The overall direction of a business can only be charted through the proper understanding of its business strategy. This phone was equipped with another feature where users could watch live television on their phones. For instance, a company’s business strategy is the best indicator for determining a company’s financial health. However, Samsung claimed that Apple’s arguments were unfounded. 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). 4. However, with the growing pressures of globalization and increased business competitiveness, it is important to evaluate the business strategies of different companies to evaluate how they compete against one another in today’s turbulent and competitive corporate environment. Through the same market strategy, Samsung also hoped to achieve a stronger customer brand loyalty. 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). The main advantages associated with this data collection tool are its easy availability and ability to remain current. 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. Apple’s Generic Strategy (Porter’s Model) & Objectives Apple’s generic strategy is broad differentiation. Strategy – The direction taken by a business. 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). Apple is one such company because it is known to seek the best employees by paying the weak ones (or the ones who lack commitment) to leave the organization. It has a minimalist presence on social media. iPhone and iPad hardware products (Christopher, 2010). The move to the digital market sparked most innovative projects by Samsung, although the company perceived this venture as a risky move at the time (Henny, 2003). The Apple television is one such product, which has caused a lot of stir in the technological world. Apple’s plan to increase its production capacity to suit the growing global demand for its products highlights the existing production capacities in China. Over a span of three decades, Apple Inc. has been able to establish itself as a force to reckon with in the electronics market. Some time after the outbreak of hostilities, Samsung inaugurated its marketing strategy to highlight the main weaknesses of its California competitor. In the midrange, they could look at Intuit ($17B market capitalization) though that might raise regulatory flags. “A quarter of all Samsung employees have PHDs”. VAR (2005) notes that there is probably no other company that has been able to implement this “crazy” and “illogical” strategy with much success. This money has been termed as more than what the company needs to use for an unforeseen eventuality and some observers note that it is increasingly difficult to ignore the potential that this money has for Apple. For example, VISA sought partnership with MSN because it had the strongest online presence as it tried to reach out to a young audience (Jason, 2011). 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). IvyPanda. However, emphasis will also be made to seek sources of data from reliable online sources such as company websites. Recently, Google was prompted to withdraw a voice software called “Siri” from its android system after it was claimed that the software resembled the ‘Siri” feature (which was available on iphone 4s) (Jason, 2011, p. 1). This knowledge is useful in understanding the intricacies between the two companies. Apple has pursued this strategy for a long time but Samsung has come on board recently. They also acknowledge that, “we go through far fewer layers of bureaucracy to win approval for new products, budgets, and marketing plans, speeding up our ability to seize opportunities” (Mallin, 2011, p. 5). The 90s period also marked an ear of alliances between Apple and other technological companies such as IBM and Motorola (Mallin, 2011). Product differentiation is a viable strategy, especially if the company exploits the conceptual distinctions for product differentiation. Samsung’s strategy is however focused on the hardware market. As mentioned in earlier sections of this paper, this study will use secondary research sources as the main data collection tool. ensure the integrity of our platform while keeping your private information safe. Morrison, S. (2004). Infighting between Steve jobs (the company’s founder) and Jef Raskins initially deterred Apple’s success. 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. The importance of including this analysis in this study is reinforced by Chris’s assertion that “The starting point for analyzing core competencies is recognizing that competition between businesses is as much a race for competence mastery as it is for market position and market power” (Chris, 2008, p. 10). This move has been informed by the unique characteristics of the web-based marketing strategy when compared to other conventional marketing strategies. 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. The study of business strategies therefore provides a big picture regarding how different aspects of a business’s operations work towards achieving the ultimate business goals. Distribution in the Marketing strategy of Apple Apple has a very smart retailing setup. From the above characteristics of Apple and Samsung’s business strategies, it is important to highlight the works of previous researchers who have expressed divergent views regarding Samsung and Apple’s business strategies. This aspect has already been highlighted in this paper as one area of Apple’s key competence areas. From this assertion, Samsung believes that it contributes to the betterment of the society. The competition between Samsung and Apple has transcended the design and functionality aspects of their products; it has also entered the advertising filed as well. By extension, a company’s business strategy defines the best approach a company’s management can take in securing the future of a business. For instance, recent years have seen a rapid decrease in the price of television sets and DVD players. VAR. Other well-established brands in the market such as Google and Apple also joined the frenzy and significantly dented Netflix’s prospects of increasing its customer base. For instance, it would be easy to establish the diversity of the researches obtained from the different types of information sources highlighted in the secondary research information. 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). Samsung also puts a lot of emphasis on ethics and integrity as the core drivers for its operations. Direct comparisons, ironic winks, subtle dedications or questioning of Apple’s brand image, Samsung has mastered the denigration of his rival and does not hesitate to abuse in each of its advertisements. It promotes through TVCs. In the 2011 period, there was increased speculation about the health of Apple’s CEO, Steve jobs and the effect of Job’s health on the company’s future. This scenario depicts a situation where there will be a strong connect between globalization and the comparative attributes for this research topic. Maintaining Brand Reputation & Loyalty The need to continuously develop and implement new differentiation The company’s 2012 business strategy should therefore be focused on managing the challenges of scaling up. Through this conviction, Samsung works towards adopting socially and environmentally right practices to characterize its operations. The company’s products failed to capture a strong market share among the consumers. While Samsung's business-level strategy is cost leadership, differentiation is also remarkably evident. However, based on the current business environment, there seems to be a change in consumer taste and preferences. In 2010 alone, the market for television equipments rose by close to 15% and similarly, experts project the potential market for the same to be close to 78 million units (Jason, 2011). 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