Both companies have undertaken various steps to remain competitive in the market. For the last three to four years or so, Samsung has made sure to announce their new premium smartphones before Apple and has used mid-August for the fall Unpacked events. The company aligns its business strategy to both marketing and production. We have a whole blog on the strategies that have helped Apple become an icon in branding and building brand image. The greenery, pollution-free clear blue skies, and the solar panels are enough visual cues to tell you that this is an ad that talks about sustainability. Other mobile phone manufacturers have to purchase these chips from elsewhere, raising their operational costs considerably above the fee charged by Samsung. Youll find it right here. He approached the whiteboard and wrote: Samsung = ?, Who are we? he asked. It talks about Apple going towards a greener approach. There have been several lawsuits between the multinationals since then. Kimp is very quick to ensure that we get all of our marketing needs served on time, to the quality Samsung and Apple are two consumer electronics giants with global reach and loyal customer bases. It started, as before, with a line of apparent Apple lemmings waiting all night around a street corner for the release of the next big iThingpresumably an iPhone, though Apple was never mentioned by name. "Apple vs Samsung as Blue & Red Ocean Strategy Examples." There are two kinds of people in the smartphone era those that have an iPhone and those that have other smartphones (read: Samsung). February 21, 2023. https://studycorgi.com/apple-vs-samsung-companies-operational-strategies/. . Information from GSM arena shows than Samsung released 54 new phone models in 2014 , compared with 24 by HTC , 11 Motorola and 2 by Apple, leading to increased production costs and lack focus on a specific customer segments thereby losing some of its competitive advantage (GSM Arena , 2015 . But how exactly do you use it in marketing? Samsung adapts quickly to market changes, producing products even faster, an approach that has enabled the giant company to release a high supply of its products in the market while demand is still high. In the past days, Apple invested colossal sums of money in innovation aimed at creating new products. It remains to be seen if this third version can fit the needs of enterprise customers. The boxes have been getting slimmer. Samsung aims to arrest its slipping share in smartphone segment and especially premium smartphone segment against Apple's flagship duo iPhone 6 & iPhone 6 Plus which propelled Apple ahead of. The result is often that Samsung can compete regarding price by selling at a lower cost relative to its rivals (Chen & Ann 2016). . For one thing, Samsungs prices are high. This compensation may impact how and where listings appear. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Id give you my sister. And the response for the Galaxy: I dont know. One thing we admire about Apple and Samsung is that they never shy away from taking a dig at each other. 56, no. Apple is the epitome of a strong brand image. Through the strategy, Apple can avoid flooded markets by innovating unique products (Buisson & Silberzahn 2010). Samsung operates like many other Asian producers, such as NEC Corporation or Sony Corporation, with an emphasis on vertical integration and a flood of products. Crump had an idea to get that across: Hed send camera crews around Times Square, each carrying two duffel bags. Samsung Galaxy Z Fold3 5G foldable smartphone with S Pen stylus at the Samsung Unpacked product [+] launch event. Norman, R.: Service Management: Strategy and Leadership in the Service Business. Amusingly, the rapid nature of technological advancement often leaves the comparatively dinosaur-like legal system in the dust. Introduction. This situation arises from the fact that Samsung has been capitalising on the existing innovations in the market to devise better products under its name. Trucks carrying fresh apples started arriving at the Texas headquarters of Samsung. For Apple, its strategy is currently designed to regain the lost market leadership. Here was the response to the question when they thought the bag contained the new, unreleased iPhone: Id give you my brand new BMW. All is fair in love and marketing warfare! I would love to see Apple become more aggressive on their AirPods Pro pricing and Samsung's lower pricing on their earbuds could put pressure on Apple to perhaps bring the price of their earbuds down a bit this fall. This observation demonstrates the companys changing approach from being a follower to being a leading innovator. Apple has adapted to the situation. Lets look at the marketing strategies of Apple and Samsung. 1591-1610. They are both in leagues of their own. It was designed by Pendleton to get the South Korean executives to grasp the size of the problem. The company spends a fortune on research and development (R&D) and capital expenditures (CapEx). For example, it improved iMac, which led to the introduction of iTunes and iPod. On the other hand, Samsung has a very active social media presence. Need help aligning your branding and marketing designs with your brands personality? "Apple vs Samsung as Blue & Red Ocean Strategy Examples." I dont know. In focus groups and surveys, the marketers noticed, there was a growing divide between two camps: those who used Apples iPhones and those who used smartphones from HTC, Samsung, and Nokia, which ran Googles quickly growing open-source operating system, Android. An NDA or non-disclosure agreement is a binding contract between two or more parties that prevents sensitive information from being shared with others. At six oclock on day five, Dale Sohn stood up, put on his jacket, and got ready to go home, before leaving a word of advice on the silence from Seoul. As a complement to iTunes, Apple introduced the iTunes Music Store as an improvement to its internal processes. So, even if you have many product lines, customers will instantly recognize your brand on a crowded supermarket shelf. ! A good example of this is all those images we see floating on the internet about celebrities endorsing other brands and then posting the respective Tweets from an iPhone. For example, Apple won an initial ruling in 2012 that targeted more than a dozen Samsung phones, but the appeals and countersuit process dragged out until 2014 when virtually every single target model was out of production. This paper was written and submitted to our database by a student to assist your with your own studies. The new commercial was completed the next afternoon. Now it was a two-horse race. He had been tasked with turning things around in America, Samsungs toughest market, given the iPhones huge popularity. Samsung executives felt Apple was trying to create a monopoly with generic patents like the iPads black rounded rectangle shape, a patent so silly that a court threw it out. For instance, iPhone 5 was only a slight improvement of iPhone 4 (Travlos 2012). Retrieved from https://studycorgi.com/apple-vs-samsung-companies-operational-strategies/, StudyCorgi. Yektan, S, Nayebzadeh, S & Rabbani, M 2014, Investigating effective factors on Samsung brand loyaltyCase study: Samsungs consumer products, Tehran City, Iran. In one early version of a commercial, two characters waiting in line outside an Apple store had a conversation about the features and quality of their Apple and Samsung phones, followed by a cut to another scene of two characters talking about their phones. The costly legal lawsuit between Samsung and Apple went on for several years. Declining profit margins in 2014 and 2015, however, forced some introspective analysis within Samsung's executive team. A product differentiation strategy identifies your unique selling proposition (USP) and uses that as a wedge to pry customers away from your competitors. Samsung showed a clever set of sensor inventions built into the watch that they say has a 98% accuracy rate when using their new watch to take this BMI measurement. He shortened the time frame to two years, on orders from Samsung headquarters. The message? Samsung relies on vertical integration as a chief competitive advantage. On a conference call with 72andSunny, he laid out Samsungs goal, as handed down by Dale Sohn. For 2010 that revenue would have come to $250 million. If Todd pulled a maneuver too soon, swarms of customers might show up at AT&T storesAT&T was the exclusive carrier for the iPhone at the timeonly to have the advertising throughout the stores nudge them toward Apple. Samsung has been a global force longer and has its hands in more industries. In fact, the team had to split up focus groups that included both Apple and Android fans, as theyd get particularly raucous and unproductive. Flash memory was a much more lightweight and efficient storage device than the traditional hard disk. I advised against it then as I felt that this first model would underperform based on their needs. The last in-person launch event at Apple's Spaceship was in September of 2019. Entrepreneurs love using Kimp to design, launch and scale their unique brands. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Consider the almost unprecedented legal wars taking place between Samsung and Apple, which span four continents and billions of dollars in awarded damages. Samsung and Apple are the two worlds largest producers of Smartphones. Our experts can deliver a Apple Inc.: Business-Level and Corporate-Level Strategies essay tailored to your instructions Only then will your ad make an impact. 2- The two new advances in Samsung's Galaxy Watch 4, BMI measuring and blood pressure monitoring are really important. UX and Strategic Management: A Case Study of Smartphone (Apple vs. Samsung) and Search . Samsung took the burn so badly that after the above Tweet, the Samsung Mobile Nigeria account was deleted. 3, pp. The figures have changed over the years with Apple at 18% and Samsung at 23.4% in the first quarter of 2022. No longer was the smartphone war a battle between Apple and a tangle of obscure Android me-too phones. We help our clients design better and scale faster with a flexible, This is possible when you clearly define your brands personality and values and take measured steps toward conveying them to your customers. It has a minimalist presence on social media. Its a Samsung Galaxy, the pedestrian tells them. Kelton, D, Sadowski, R & Zupick, N 2014, Simulation with arena, McGraw-Hill, Pennsylvania, PA. Kushida, K 2015, The politics of commoditisation in global ICT industries: A political economy explanation of the rise of Apple, Google, and industry disruptors, Journal of Industry, Competition and Trade, vol. Apple does not race to be first; it lets other companies spend time on R&D and early market development before swooping in and improving everything. Often, a customer uses a blend of both measurable and subjective factors to decide on a . We love comparing such competitive brands because from such competition arise some of the most valuable marketing lessons. Geoffrey Cain is a foreign correspondent and author who has covered Asia and technology for The Economist, The Wall Street Journal, Time, The New Republic, and other publications. Fits in your pocket, yet gets the job done. The first step that Samsung is taking to improve its current competitive position is investing more money in research. Samsung relies on being a fast follower to compete effectively with rival companies. Well show you how. The challenge with this approach is that customers are often impatient and may be attracted to competitors who are fast in integrating new technology (Kelton, Sadowski & Zupick 2014). In April 2011, Apple filed multiple lawsuits, spanning dozens of countries, against Samsung for patent infringement. It is imperative to have all processes synchronised to achieve full benefits. From product announcements to building anticipation before product releases, the brand uses its social media pages in many ways. But Apple on the other hand sticks with targeted marketing and wins at it. Id give you ten thousand dollars. Big brands that have been head-to-head for the market-leader position are known to adopt this strategy now and then. Marketing Strategy: Apple vs. Samsung At the origins of the conflict The legal battle between the two giants of the mobile market has been the starting point for a quarrel that has only. Justin Sullivan/Getty Images (left); Simon Dawson/Bloomberg. Its a Galaxy S II. As a key concept of the blue ocean strategy, technology has revamped the whole customer experience by making life simple, easy, and successful. As you can imagine, Apple watches what competitors do closely and, has never taken Samsung's push for continual innovation for granted. He is a term member of the Council on Foreign Relations. And thats creativity at its best. This case is slightly contrasted from rival companies who are seen as cautious when investing in new technologies. Shai Agassi is an Israeli entrepreneur and founder of Better Place, a battery charging service for electric cars. In March 2014, someone leaked a Samsung strategy document from 2012 in which the Korean-based tech company blankly stated, "Beating Apple is #1 Priority (everything must be in the context of beating Apple)." Apple focuses on pricing and marketing to compete with its rivals. Check out the screen on this thingits huge., Its a Samsung, they repeat to each other. The clean layout and signature font instantly connects with the rest of the marketing designs that Apple uses. I have either been to, or watched all of Samsung's Unpacked events since they debuted, and marvel each time at the innovation they continue to bring to their devices. Tim Cook, as Apples supply chain expert, was wary of endangering the relationship with a supplier that Apple depended on. Truly, Samsung declared a ten-year growth strategy based around five organizations Privacy policy No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher. Since Apple was copying Samsungs patents, they argued, Apple had to pay Samsung. People quickly point out such follies only because Apple has fans while most other brands including Samsung have customers. Consider the iPod, the first breakthrough product during Jobs' second stint as CEO, which came out years after the Sony Walkman. Pendletons staff sent the commercial to South Korea for approval. It relies on continuous research to implement this approach. Rather than pitch consumers on why Samsung was great, marketing stories were framed around the telecom carrierstelling a story around their network and why their network is great., The South Korean headquarters, meanwhile, sent over goofy and culturally inappropriate commercials that incited rebellion among the Americans on staff. Kogan Page Publishers, London, UK. But since then Samsung has held their last three Unpacked events exclusively online due to the Covid-19 pandemic. This is one question that still has no real answer. Well that's one way of dealing with it ? These changes indicate two things: Samsung has made a tremendous amount of progress in the smartphone market Samsung employs the red ocean strategy, which involves observing the existing competitors, identifying their weaknesses, and building on the faults (Chandrakala & Devaru 2013). Web. There is a brilliant hierarchy in this design and overall it appears well-balanced. The main competitive strategy of Apple Inc is developing new and innovative products that blend technology and art. 227-249. This has only been possible because of marketing designs that accurately resonate with the brand values. Opinions expressed by Forbes Contributors are their own. Steve Jobs is the companys co-founder, which has its headquarters in California. 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Shai Agassi is an Israeli entrepreneur and founder of Better place, battery! And has its headquarters in California Samsung has a very active social media presence the most valuable lessons! Taken Samsung 's Galaxy Watch 4, BMI measuring and blood pressure monitoring are really important ( CapEx.... That appear in this table are from partnerships from which Investopedia receives compensation 2010.... Stint as CEO, which has its hands in more industries to the. All processes synchronised to achieve full benefits company spends a fortune on research and development ( &! Apples supply chain expert, was wary of endangering the relationship with a supplier that depended... With targeted marketing and wins at it or non-disclosure agreement is a binding contract between two or more parties prevents. In this table are from partnerships from which Investopedia receives compensation he is a term member of the valuable. 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