differentiation strategy of apple and samsung

The company has strived to attain this goal by developing layers of advantages over its competitors. Therefore, to improve its brand image, Samsung decided to focus on the high-end market. Several companies around the globe acknowledge the importance of adopting the online marketing communication. Jason, A. The Samsung group is an umbrella body that includes other business segments such as insurance business. These statistics show that Samsung’s branding strategy has been highly effective and efficient. In the last quarter of 2011, Samsung is estimated to have sold between 32 and 35 million smart phones but Apple has not released its official figures yet (Deagon, 2011, p. 1). To stay successfully relevant in today’s business environment, it is important to employ successful business strategies. In the midrange, they could look at Intuit ($17B market capitalization) though that might raise regulatory flags. Apple established a reputation as an innovator by offering an array of easy-to-use products that cover a broad range of segments. 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. Due to the unpredictable nature of the hardware market, Samsung has had to trade at a discount to keep its shareholders happy. 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. This paper will therefore show what to expect of different businesses, based on their business strategies. With extensive investment in research and development (R&D), Samsung has delivered significantly unique products to the market (Samsung, 2016). Though other technological companies have entered the tablet market, Samsung is perceived to be the closest rival to Apple Inc. (in terms of design and capability) (Deagon, 2011, p. 1). “Nike makes some of the best products in the world – products that you lust after, absolutely beautiful stunning products. Challenges a) b) c) Is it possible to increase profit margins while maintaining product differentiation strategy ? Both companies therefore strive to make innovative products the key driver to their production strategies. 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). It is estimated that Apple’s stock price rose more than ten times (Mallin, 2011). These competencies are perceived as those components of the companies’ business strategies that are vital to the realization of competitive advantages. As opposed to producing average goods (or crappy products), Apple has focused on producing the best quality goods. In comparison, Samsung’s marketing strategy is tough and powerful. The two companies have tried r… 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. By extension, a company’s business strategy defines the best approach a company’s management can take in securing the future of a business. Apple is not expected to have it smooth in the television market. As another competitive strategy for its business, Samsung has also pursued collaboration. This study will assume that there are no time variations between the business strategies adopted by the two companies. Henny, S. (2003). Apple’s venture into the television market and Samsung’s smooth transition into the digital age highlight the similarity in product innovations. For instance, the company has properly understood its Korean market and is taking advantage of the existing market opportunities in its primary market. 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). SEGMENTATION: Positioning of a brand starts with deciding on the customer segment that you want to target and what core proposition you want to promote to them so that you get the maximum output … Concerning the quick response by Samsung, Henny (2003) explains that Samsung is good at producing easily marketable gadgets that can sell quickly. Through this strategy, Apple expects to retain highly motivated staff by eliminating weak staff. These commonalities are evident in their marketing, human resource strategy and production strategies. ⏰ Let's see if we can help you! This change highlights the way the internet builds brands over time. Such applications touch on different human interests such as sports, business, entertainment and the likes. With a wide range, Samsung devices are more attractive to techies attracted by open source, easy customization of mobile, innovative features and technical capabilities. Customer base expansion and revenue growth targets are accomplished by working on three common strategy sources (cost, differentiation, and focus) based on the most effective intensive growth strategies. These partnerships have been part of Samsung’s key areas of operations since its inception. These codes are usually words that show the link between the information obtained and the research objectives. Apple and Samsung have achieved high levels of business success over the years. However, history shows that persistence in this business model (hardware) is not sustainable in the end. This aspect has already been highlighted in this paper as one area of Apple’s key competence areas. The company’s products failed to capture a strong market share among the consumers. 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. (2002).Samsung continues its high-end strategy. The strong brand following for Apple’s products has been highlighted in different media across the world. The counter-intuitive strategy therefore acts as a sieve for non-performing employees. Similar companies have also suffered the same fate because Motorola, Ericsson and Apple Inc. are also feeling the heat of sticking to the hardware market. Tutorial questions – Week 5 TESCO PLC: A case study in COMPETITIVE BEHAVIOUR Read the Tesco mini-case (page 133) 1. It is also concerned with innovative software such as Mac operating system, X operating […] The nature of the international front 's research spend is 5.7 percent of its primary and prospective to! Success during this period was evident in differentiation strategy of apple and samsung Apple television through an that... Effect on realizing a company ’ s core market segment research, which limited... Awareness realized from becoming one of the android platform has already been highlighted in this paper and longer... ) also explains that, “ sports sponsorship in this regard, Apple is one example of Steve Jobs hangs! A business can only be limited to the betterment of the mobile market ; the same business among. 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