Apple believes that it can attract and retain the best human resource strategy by providing a strong incentive to leave the company so that weak or demoralized employees can be motivated to leave the company. VAR (2005) notes that there is probably no other company that has been able to implement this “crazy” and “illogical” strategy with much success. Form the above analysis, we can see that Apple and Samsung differ in the manner they implement their production strategies. But with the Apple was able to build a brand image of exclusivity. In the Korean market, Samsung is deemed the leader in innovation technology. 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 level of brand awareness realized from becoming one of the leading sponsors in the Olympic Games (alone) tripled after the games. Apple has remained a leader in its market segment and through its innovation; it has been able to produce superior and futuristic products. The first goal of improving the company’s brand awareness in the international platform was however intended to beat its rival, Sony, which also enjoyed positive global brand awareness. The same scenario also applies to Apple Inc. because focus will only be given to its electronics segment and not other un-affiliated businesses. 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). Currently Samsung’s strategy focuses on producing high-end goods, which are designed to appeal to the high-end market segment. Despite Myths, Secondary Research Is Valuable Tool. This sales record was complimented by the reign of the technological company as the king of android phones. This paper compares the business strategies of both companies and reveals that their production, human resource and marketing strategies are inherently similar. Later, the company’s reputation was soiled by a poor response to its products and its failure to meet deadlines. 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. Los Angeles: Investor’s Business Daily. 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). What are the OS strategies of the leading smartphone companies/vendors?5. For instance, the company’s move to use the same girl in an advertising campaign intended to hit out at its closest rival in the tablet market – Apple has been highlighted in earlier sections of this paper as an aggressive strategy adopted by the Korean company on its competitors. The common business ideology in today’s technological world is that the development of new software and content is guaranteed to elevate a company’s position ahead of its competition. IvyPanda. Apple and Samsung have shown that they are very sleek in their operations. However, there are impending problems associated with this strategy, but top among such strategies is regulatory problems. Samsung and Apple however share the belief that the production of futuristic and innovative products is the key to future company survival. What do you think are Samsung’s capabilities that gave rise to its competitive advantage?4. This strategy was made by Jobs when comparing his company’s strategy with Nike. It was estimated that the appstore raked a million dollars every day for Apple and in the future, the platform was projected to be a multimillion-dollar industry (Mallin, 2011). Unlike most of its other ventures, such as ipad and iphones, the Apple television is expected to face stiff competition from incumbents in the television market. Jason (2011) also questions the sustainability of the company’s strategy in the coming years. The caliber of celebrities that fans could interact with included musicians, sportsmen, and sportswomen. Apple has pursued this strategy for a long time but Samsung has come on board recently. (2011). From Apple’s high-end market strategy, the company has earned a reputation for producing quality goods at high prices. Netflix (a movie distribution company) was also faced with the problems of an increasingly competitive and fast growing (movie distribution) business. Similarly, the company has created an unrivaled brand loyalty among its most valued customers around the world. This observation highlights the strong emphasis on educational qualifications as one of the key requirements for Samsung’s employees. The importance of learning a company’s business strategy is part of strategic management. The company’s strategic planning process is however developed by keeping a close eye on the competition and looking for unexpected ways to overshadow its competition. What is the first thing on your mind (or you use) as soon as you wake up in the morning – is it the washroom, wardrobe, TV remote control, smartphone, coffee or anything else? This case flyer, based on the article from The Economic Times ('6 Reasons Why Samsung Should Fear The iPhone 6', The Economic Times, September 6th 2014, page 6), 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 … However, they also make a lot of crap. So far, Samsung has been able to win several design awards and over the years, the company has been able to sneak its way to the top of brand awareness awards around the world (because more people are now aware of the company’s existence around the world) (Henny, 2003). Alternatively, they could go big and buy Mastercard ($50B market capitalization)” (Mallin, 2011, p. 4). However, Steve Job’s influence on the technological giant has been the most profound and widely talked about. 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). It is still not clear where Cook’s strategy will land the company but there is no doubt that Apple’s labs are quickly playing by Cook’s strategies. 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. 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. Apple and Samsung have achieved high levels of business success over the years. In addition, this paper proposes that Samsung should redirect its resources to focus on new and emerging markets as opposed to battling for the developed markets. 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. This aspect has already been highlighted in this paper as one area of Apple’s key competence areas. 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). Among the selected individuals were Samsung employees. 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. The market for NAND flash memory has grown over the past years, thereby increasing Samsung’s profitability over the years. The reduction of energy consumption has also been seen to comply with the European Union (EU) energy regulations. Other hardware manufacturers have tried to adopt the same strategy to no avail. La bataille juridique entre les deux géants du marché mobile a été le point de départ d’une querelle qui ne fait que s’accentuer au fil des années et des lancements de produits. New product designs were complemented by the introduction of new product designers to increase the scope of Samsung’s product design to meet the standards of the highest level of product designs (Henny, 2003). 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). 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. Samsung also strives to achieve this reputation, though their main motive is pursuing a pricing strategy that aims to sustain profit growth. All the major sectors of product management are studied. Please use Indian Currency Option (INR) when you are Making Payment within India. In fact, the Korean market is deemed Samsung’s launch pad for new products. In the midrange, they could look at Intuit ($17B market capitalization) though that might raise regulatory flags. 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). Inorganic Growth Management at Godrej Consume... Robert Bosch Engineering, India (RBEI) – An... ERP Selection Process: Getting it Right the F... Viva Automation’s Survival: Madan Mohan’s... Digital Green: Democratizing Best Practices b... 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Sports Roots: The Challenge of Transforming S... • Industry Analysis – How smartphone industry’s competitive dynamics are shaped up largely by two dominant players and with low entry barriers and easily accessible operating systems, etc., how the innovations, etc., have altered the smartphone industry’s landscape, • Firm’s Strategy – How a focused and clearly positioned strategy can create an unique position, • Strategy vs Structure – To debate on whether structure shapes the strategy or whether strategy can shape the structure, To understand the nature and business dynamics of smartphone industry and debate on the critical success factors, To examine the competitive strategy between Apple and Samsung in being the market leader and debate on the relevance of value and volume dynamics in the smartphone industry, To discuss and debate on the strategic insights from smartphone industry’s competitive dynamics, i.e., how structure gets shaped up by (a firm’s or firms’) strategy, and relevance of technology S-Curves, Industry Analysis – How smartphone industry’s competitive dynamics are shaped up largely by two dominant players and with low entry barriers and easily accessible operating systems, innovations, etc., have altered the smartphone industry’s landscape, Firm’s Strategy – How a focused and clearly positioned strategy can create an unique position, Strategy vs Structure – To debate on whether structure shapes the strategy or whether strategy can shape the structure. This analysis also exposes how these resources compare with first-class resources, which are expected of existing technological companies in today’s market. 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. Evaluating the performance of Samsung and Apple in different quarters of 2011, we see that Apple sold 18.65 million Smart phones in the first quarter of 2011 (alone) while Samsung sold slightly more than 12 million units (Deagon, 2011, p. 1). According to the company’s management, every day, every employee is supposed to abide by the above philosophy. 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. In 2010 alone, this market grew by close to 200%. The sales figure for 2010 show that the company’s sale of ipad, iphones and ipads transcends the company’s mac sales (122 million). Samsung relies on vertical integration as a chief competitive advantage. He notes that Samsung’s human resource is closely similar to Apple’s because both companies operate by seeking the most qualified personnel to run their operations. The Nokia 9000 Communicator was a combination of an HP-made PDA (Personal Digital Assistant) and a Nokia-made traditional phone. While value-driven Apple's market share (in terms of handsets shipped to the distributors) is lesser, the margins are industry-highest. If it is compared to other brands that are having equivalent specs such as Samsung, Asus, HTC, or Xiaomi, the price of Apple is pretty high. This paper focuses on the court battle between Samsung and Apple as one area of competition for the tablet market share. The participants/students should be conversant with the following concepts/business ideas that can help understand the underlying learning outcomes of this case flyer. The period for undertaking this study is spread to accommodate different activities within a four-week period. This means that there is still more room for other companies to sell their tablets. The following were the factors that influenced the students’/participants’ decision about the brand/model they brought: • Usage/performance of the phone to accomplish the needed tasks• The social status• Fear of loss (who brought the low-end/cheaper smartphones), Exhibit (TN)-II: Differences between Smartphone and Feature Phone, Exhibit (TN)-III: Competitive Dynamics of the Global Smartphone Industry, Exhibit (TN)-IV: Market Shares of Smartphone Vendors (in %), Exhibit (TN)-V: Apple’s Operating Margin 2013, Exhibit (TN)-VI: Apple Pay vs Android Pay/Samsung Pay. Therefore, the true “effect size” of the data collected from the secondary research sources will be estimated by the meta-analysis. Nonetheless, Samsung enjoys less disruption of employee performance because of vacations and holidays. Chris, H. (2008). Observers often note that brand building usually has a significant pay off to employees and customers alike (Henny, 2003). Interestingly, some observers identify the death of Apple’s founder, Steve Jobs, as another factor contributing to Apple’s growth. So far, the Apple brand has made many headlines in different markets around the world for their unrivaled product categories. 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. 2. Since the company started business in the 70s, it has created a lot of buzz. Apple Inc. is a successful American company, which has been in existence since 1976 (Mallin, 2011, p. 1). A positive brand image (characterized by improved quality and better pricing) works for the company and consumers alike because the company enjoys improved profitability while the consumers enjoy improved product quality. Among the most notable advantages, include the availability of current and rich information. Most of these strategic competencies are designed to boost the company’s strategic planning. This analysis will be focused on evaluating Apple and Samsung’s business strategies based on their global pursuits. What were the most important deciding factors to buy the particular brand/model? Despite the nature of the business environment (stable or not), it is always important for businesses to prepare themselves for unforeseen eventualities because competitors always have new strategies of outmaneuvering their rivals. The Volume-driven Samsung’s market share is highest (at 21% in Q2, 2015) while its margins are way below Apple’s. Samsung’s new phone will cost $960; Apple’s high-end iPhone X will cost $999, 45% more than the average selling price of an iPhone in 2016. However, the company’s CEO also revealed that the Smartphone market only accounted for about 9% of the total handset market (Mallin, 2011). 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). Germany, Netherlands, South Korea and Australia are just some of the countries that have played host to the battle of supremacy between Apple inc. and Samsung electronics (Deagon, 2011, p. 1). The company managed to develop a strong brand through simple product designs. 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. The current competitive strategy of each company On top of being bitter competitors in the Smartphone market, Apple and Samsung use different competitive strategies. For instance, environmental pressures, internal weaknesses and opportunities always work towards boosting or derailing the success of a company. However, Steve Jobs went against this norm and took his time to focus on the little attributes of the product development strategy. The latter may include the use of new technology, employment of competent and highly trained personnel (among others). “It is said that if you know your enemies and know yourself, you will not be imperiled in a hundred battles; if you do not know your enemies but do know yourself, you will win one and lose one; if you do not know your enemies nor yourself, you will be imperiled in every single battle” (Chris, 2008, p. 2). The company has strived to attain this goal by developing layers of advantages over its competitors. For instance, the company has a locked-down software platform, which is only known to close associates of the company (Mallin, 2011, p. 5). It is observed that without the inclusion of these strategies, Samsung’s success in brand awareness could not have a rich meaning (Jason, 2011). Unlike other companies, which have embraced partnership as a viable business model, Apple’s strategy has been to do business alone. However, within these similarities, both companies have different corporate cultures, which differentiate the companies’ ideals. Samsung has not risen to the top by copying its competitors or levering its resources; it has been a dominant player in the technological industry by adopting unique competitive strategies. The company has instead stuck to the hardware market and though this market is quickly shrinking, the company still shows increased persistence in this market segment. Many people argued that … 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). This brand association could be best seen through Samsung’s contribution to the technical and logistical sector of the Olympic Games organization. 1. Apple has expanded its products range and services. This gives them a steady source of supply, which Apple does not experience. 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. This paper compares the business strategies of both companies and reveals that their production, human resource and marketing strategies are inherently similar. However, the methodology applied by Apple’s management has been unpopular and uncommon (VAR, 2005). Samsung did not hesitate to use this social platform to display its products and new technology. When Apple Inc., unveiled its latest smartphones iPhone 6 and iPhone 6 Plus in September 2014, industry experts, opined that Apple might finally have the right ingredients to sap the advantages of Samsung’s Galaxy line of smartphones and reverse Samsung’s fortunes. The fellow program was however implemented in the personal computing field. Evidence is given of Samsung going into business partnerships with other technological companies such as Google, IBM and Toshiba. 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. Some of the strategies adopted by both companies are similar in composition but others have inherent differences. ensure the integrity of our platform while keeping your private information safe. Vakratunda Corporate Park, Vishweshwar Nagar, VINOD GUPTA SCHOOL OF MANAGEMENT, IIT KHARAGPUR, Syed Abdul Samad and Dr. Nagendra V. Chowdary, Not to be Used for Classroom Discussion/Trainings, ET CASES develops customized case studies for corporate organizations / government and non-government institutions. By sampling the case studies of Apple and Samsung’s business strategies, we see that both companies perceive the international market to be the new frontier for sustaining their business operations. However, it is also important for the company to focus on its key areas of competence –home appliance market. The above statement has been apple’s motto for its production strategy. Samsung managed to do so and it consequently made a lot of money as a result. Furthermore, the company’ strategy of venturing into new markets is complemented by the push to merge new technology with new markets. Tim, P. (1991). 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. 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). This conviction by Samsung’s management is considered an unpopular strategy but the company bets its billions that it can make the strategy work. The technology industry is very competitive, given the presence of many players operating in it. Some of these ways have been perceived to be unpopular but so far, Samsung does not show any apology for adopting some of these unpopular ways. Samsung has come from a period of financial doom to become one of the coolest brands in the technological market. This paper will therefore show what to expect of different businesses, based on their business strategies. These advantages have spanned different layers of the company’s operations but some of the most notable areas of improved performance have been improvements in production processes and increased investments in research and development to increase its competitive position. We made sure we used the high-end channels”(Henny, 2003, p. 8). Samsung's New Products Highlight How Its Strategy Differs from Apple's. 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). September 12, 2018 0 Comments. 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