Consumer-oriented Promotions that Apple can utilize for Short-term and Long-term Strategies. Samsung was the Apple iPhone chip supplier that dared to compete directly against Apple by making a similar-looking smartphone, and with the Android operating system, which Jobs abhorred. It also reduces the possibilities of outsourcing some processes to different suppliers. So, how did the world of smartphones become a duel of Samsung Vs Apple? But the work of the marketers at Samsung was frustratingly subpar. Player 2 : Samsung A tech giant producing a range of electronics including TV's, Stereo Systems, nano-technology electronics , laptops and computers, phones and tables . In short, in terms of marketing, both these brands do equally well. If you have to compare the smartphone market share, back in 2009, Apple was at 16.1% and Samsung a mere 3.3%. But then when you cannot find a strong visual connection between them all, it is hard to make an impact. Samsung?. (2023, February 21). They operate at the international level with branches in numerous countries. For one thing, Samsungs prices are high. Less stylish, less innovative. More functional. Good quality and value. With Apple and Sony commanding and fiercely protecting that stylish and innovative space, could Samsung find an opening? People might mock Apple for not modifying its designs too much but most Apple users love the consistency the brand maintains. What is Strategy and comparing Apple vs Samsung Strategy#. Samsung does it more often but then, truth be told, all these campaigns act out in favor of both brands. The company has expanded to become the leading Smartphone maker in the world. . 1, pp.161-202. About 30 percent of the budget went to Samsungs own branding efforts. Samsung quickly countersued for infringement of five patents relating to its wireless and data transmission technology. 52, no. Apple has managed to maintain a niche in the consumer electronics field by producing Smartphones that address the needs of the population. Through the strategy, Apple can avoid flooded markets by innovating unique products (Buisson & Silberzahn 2010). Unlike Apple Inc, Samsung uses the red ocean strategy. . 9, pp. Apple, particularly, successfully sued Samsung for patent infringement (Cusumano 2013). Thats what a good understanding of your competitors and a brilliant copy can do! 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. Apple has continued to firmly hold on to its branding and marketing designs over the years. Buisson, B & Silberzahn, P 2010, Blue ocean or fast-second innovation? Each fall, Apple and Samsung hold worldwide launch parties for the newest models to take advantage of the holiday buying season. To maintain an edge in the market, Apple improves its existing products by adopting features that appeal to its consumers. But they needed a leader.. . Apples packaging designs are great examples of this. You need your marketing designs like ads, branding designs like logo, packaging, and others to be coherent and visually relatable. We had to even take some of it out because it was just so harsh.. He also blatantly mocked Samsung and other competitors, calling their larger phones Hummers. No ones going to buy that, he said at a press conference in July 2010. Briggle, J 2013, Analysis of pendulum period with an iPod touch/iPhone, Physics Education, vol. Currently, Samsung has a market capitalisation of about $154 billion, barely a quarter of Apple's. But if you believe that a company should be measured by how much it sells then it's Apple that is following Samsung as the second-largest electronics multinational in the . Norman, R.: Service Management: Strategy and Leadership in the Service Business. Photographer: Nina Westervelt/Bloomberg, Vivaldi 6 Brings Workspaces To The Browser, Elon Musk Promises (Again) Encrypted DMs Are Coming To Twitter, Forget The New MacBook Pro, Apple Has Something Much Better, Canadas Public Broadcaster Joins NPR In Quitting Twitter, Vivo V27 Pro Brings The Fight To OnePlus 11R With A Better Design, Artist Reveals His Award-Winning Photo Was Created Using AI, Apple Reveals New Game-Changing FaceTime Features, Elon Musk Says U.S. Govt Had Full Access To Private Twitter DMs. No longer was the smartphone war a battle between Apple and a tangle of obscure Android me-too phones. Geoffrey Cain's Samsung Rising hits shelves on March 17, 2020. Investopedia does not include all offers available in the marketplace. Its a giant phone that Steve Jobs made fun of. One small misstep and your audience will go to your competitor. Now it was a two-horse race. In the above example, people who know nothing about the rivalry between the brands and about Steve Jobs remarks will not make any meaning out of the ad. Vergara (2012) asserts that the company has also used product differentiation to maintain a competitive advantage in the Smartphone market. November 12, 2012. This access, however, allows Google to stay ahead of competition like Microsoft . Previously, this approach has enabled Samsung to avoid investing heavily in research since move may appear to competitors as a rather sleazy tactic. A resident of South Korea for five years and a Fulbright scholar, he studied at the School of Oriental and African Studies in London and the George Washington University. Nisen (2013) observes that Samsung filed numerous patents in the US in 2012, coming only second to IBM. At the same time, iPod served to market the existing Apples products. When Apple launched its iPhone in 2007, it set in motion a new category, the smartphones with futuristic, customer-friendly technology and a new ecosystem of 'inclusive' suppliers. Samsung Galaxy Z Fold3 5G foldable smartphone with S Pen stylus at the Samsung Unpacked product [+] launch event. And make heads turn like Samsung and Apple do, then sign up for an unlimited design subscription and take your marketing designs to the next level. Gustin, S 2012, Why Apple Is Winning: Innovation, Opportunity and Execution, Web. We help our clients design better and scale faster with a flexible, 7, pp.3080-3083. And it has remained nearly the same over the years. 9, pp. Once Samsung had the marketing budget to reach out directly to customers, Pendleton could initiate step three: hiring an ad agency. 28-31. He is a term member of the Council on Foreign Relations. In this type of strategy, a company gains competitive advantage by venturing into an existing market and building on the weaknesses of its competitors. At the time, Samsung was putting about 70 percent of its U.S. smartphone budget in so-called marketing development funds (MDFs), which were cash piles allocated to the carriers for advertising and rebates. 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 . Curious much? For example, Apple had a commanding 58.46% share of the U.S. market as of May 2020, while Samsung settled for 25.11%. Apple had a 20.5% share of the market in comparison to 19% last year. If you use an assignment from StudyCorgi website, it should be referenced accordingly. Published by Currency, an imprint of Penguin Random House LLC. In the course of their meeting, he pulled out the NAND flash memory, as it was called, and put it on the table. All rights reserved 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. Apple and Samsung are the biggest smartphone companies operating worldwide. What would you give for the new, unreleased iPhone? The Kimp team is here to help. Guys, Im so amped I can stay here for three weeks, says an apparent Apple idolater. launch event. Without that assurance, Apple may just sit this one out. He called it my trump card.. Have you ever seen two Apple ads and thought that they do not look similar? When Samsung joined the market, its main strategy involved maximising on the weaknesses of rival companies to gain an edge. This plan is expected to remedy its reputation as a copycat (Kang, Chang & Song 2016). I can live with that. 15, no. In this regard, product models are viewed as efficient, exclusive and expensive. You dont need to wait in line. Id give you my sister. And the response for the Galaxy? They proceeded to leak the film to the popular tech and culture website Mashable, which unveiled it on November 22, 2011, before Samsung posted it officially on its Facebook page later that day. Want to face your industry rivals like a pro? The blood pressure feature is a huge deal too. Now lets look at some of the packaging designs from Samsung. At this price, it is what we call executive jewelry. Alphabet Inc shares fell as much as 4% on Monday following a report South Korea's Samsung Electronics was considering replacing Google with Microsoft-owned Bing as the default search engine on its devices. Samsung smartphones are all over the place. This approach has led Samsung into trouble in the past days, losing the case to Apple where it was accused of stealing the latter companys design. Todd, however, had never worked at a tech company before and didnt know the industry. A good amount of promotion across channels, And you can buy Samsung smartphones from several places both online and offline. It is also a much more profitable company. Kimp Tip: When you create ads for ambush marketing, both your brand and the competitor should have made a strong visual connection with your audience. According to Chandrakala and Devaru (2013), through cost leadership, Samsung has managed to employ a low-cost competitive strategy aimed at reducing the cost of its products. Product differentiation can be measurablelike price or calorie countor subjective. So, want to create illustrations and illustrated videos to promote your brand and engage your audience? I advised against it then as I felt that this first model would underperform based on their needs. And if it failed, theyd have to answer for it. Samsungs greatest strength was its ability to manufacture superior hardware, faster than any of its competitors, through its vast, strict, top-down management system and its superior supply chain. The researchthe field testinghad been done for internal consumption only. Are you ready to dive into the Samsung Vs Apple dispute to grasp a few marketing ideas? It is a telling example of the animosity between two of the world's largest smartphone producers, who are clearly modifying their respective business strategies with each other in mind. Samsungs massive spending can be witnessed in the companys advertising campaigns when it is marketing a new product. According to Yektan, Nayebzadeh, and Rabbani (2014), the company is usually willing to invest colossal amounts of money in marketing a new product. This pays dividends, allowing . Youll find it right here. Apple would not even consider doing a folding smartphone unless they believed they could sell them in the 10's of millions. Well tell you. The figures have changed over the years with Apple at 18% and Samsung at 23.4% in the first quarter of 2022. The new Galaxy Buds 2, with superb audio and active noise canceling at $149, is $40 cheaper than Apple's AirPodsPro. (2023, February 21). Apple drafted a proposal to license some of its patents to Samsung for $30 per smartphone and $40 per tablet, with a 20 percent discount for cross-licensing Samsung's portfolio back to. Fitness & Health Brands use Kimp to launch, expand and scale their marketing. Apples generic strategy is designed according to Porters Model, which falls in line with the companys intensive growth strategies (Ximnez & Sanz 2014). In 2012, the global market share of Samsung Electronics increased by 20%, more than the 20% increase in the previous year. 3, pp. Vertical integration is used to achieve control over the production chain of a facility. Samsung's business model has focused on vertically integrating supply chains and ramping up production volume. Everyone else had fallen by the wayside. We love comparing such competitive brands because from such competition arise some of the most valuable marketing lessons. Samsung didnt use people in its commercialsjust product and voiceover and talking about the product benefit, said Samsungs chief marketing officer, Todd Pendleton. Research is also important to stay ahead in a market where innovations are easily copied by competitors. Pendleton and Wallace quickly got to work. Samsung fought back and had the injunction reduced to only German markets, but it was still a victory for Apple. I dont know. As a key concept of the blue ocean strategy, technology has revamped the whole customer experience by making life simple, easy, and successful. Opinions expressed by Forbes Contributors are their own. The intensive growth strategy has been strongly attributed to Apples success. Samsung has also employed cost leadership as its strategy. Apple's rise has been comparatively meteoric and focused. 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. Samsung applied this strategy when entering the television market. And the handwriting style fonts connect with the idea that the S-pen was the USP of the Galaxy Note series. The Next Big Thing Is Already Here, the commercial finishes. Though Apple does partner with celebrities now and then, Samsung does it on a bigger scale. The Galaxy S and Note are Samsungs products that have different features and hence their high prices in the market. Privacy policy He called the ads Hello Kitty., I am talking to you on a phone right now that Apple just copied, said Brian Wallace, Samsungs former vice president for strategic marketing. Yektan, S, Nayebzadeh, S & Rabbani, M 2014, Investigating effective factors on Samsung brand loyaltyCase study: Samsungs consumer products, Tehran City, Iran. The company spends a fortune on research and development (R&D) and capital expenditures (CapEx). 10, no. "Apple vs Samsung as Blue & Red Ocean Strategy Examples." So, even if you have many product lines, customers will instantly recognize your brand on a crowded supermarket shelf. PDF) Samsung vs. Apple: How Different Communication Strategies Affect Consumers in Portugal . Therefore, brand reputation is a key strength in maintaining Apples market presence. I am talking to you on a phone right now that Apple just copied, Brian Wallace, Samsungs former vice president for strategic marketing, told me years later. Google's reaction to the threat was "panic" as the company earns an estimated US$3 billion in annual revenue from the Samsung contract, the report said, citing internal messages. "Apple vs Samsung as Blue & Red Ocean Strategy Examples." These changes indicate two things: So, both these brands are worth evaluating if you are looking for branding and marketing inspiration. This figure was considerably higher when compared to what rival companies such as Apple had spent as their advertising budget within the same period. It was slow, boring, and dull. The creative executives at 72andSunny got to work and churned out their first approach for Pendleton, who was present at the shoots and the editing, eager to maintain his creative hand. Why, even Samsung employees have been called out for posting their Samsung promotional Tweets from an iPhone. Apple has a bit higher retention rate at 42% vs. 38% for Samsung. This ad came out right when the patent war was still on. Before turning its sights to Apple, Samsung competed with, and in many cases bested, Japanese technology companies in the 1980s and 1990s. As a complement to iTunes, Apple introduced the iTunes Music Store as an improvement to its internal processes. Id give you ten thousand dollars. It promotes through TVCs. . Kimp helps design and marketing agencies design more to keep up with clients. Through the strategy, Apple can avoid flooded markets by innovating unique products (Buisson & Silberzahn 2010). Then another pedestrian hails a taxi on the sidewalk, holding the mystery device. The company aligns its business strategy to both marketing and production. The good news of this rivalry is that consumers are the big winners as each company pushes the other to greater innovation. . Chandrakala, V & Devaru, S 2013, Blue ocean strategy and bottom of the pyramid marketing, International Journal of Management Research and Reviews, vol. 3, pp. This is considered to be the strength at Apple. Since then Apple has streamed all of its product launches as well as two developer conferences online. But fast forward a year, to Q4 2020, Apple did 79.9 million vs. Samsung's 62.1 million. Apple's business-level strategy is to utilize differentiation as an innovation mechanism. Well show you how. Instead, it targets a broader market. Apple has a number of loyal customers, while Samsung has a larger mass market appeal. And promote your brand in ways you did not predict. From roasting Apple to challenging the common smartphone norms, the brand has its own style of creating content that people talk about. ! And Apple has managed to remain nearly consistent despite the rapidly-growing competition. As I watched Samsung's Unpacked event this week, I came away with a few thoughts about Apple's fall launch sometime in September. To achieve this goal, it is imperative for Apple to invest in research and development. Trucks carrying fresh apples started arriving at the Texas headquarters of Samsung. A video featuring Shah Rukh Khan's children Suhana Khan and AbRam Khan from the Kolkata Knight Riders (KKR) vs. Mumbai Indians (MI) match has gone viral. The solution? February 21, 2023. https://studycorgi.com/apple-vs-samsung-companies-operational-strategies/. Theres a lot of unlimited design services out there but only one like Kimp. Despite the additional layer in the copy, the overall design still stays true to the brand and thats one thing to remember when you create ads. There was always at least one Apple fan in the room who scolded the Android fans, and vice versa, with Android users pointing out how much more flexible and customizable their operating system was. As a tech specialist, the company reached out to a former BlackBerry digital marketer named Brian Wallace. That includes an estimated $20 billion annual payment to iPhone maker Apple (AAPL) and about $3 billion to Samsung. Ask either company, however, and you are likely to hear there is too much emulation going on. Chen, C & Ann, B 2016, Efficiencies vs. importance-performance analysis for the leading Smartphone brands of Apple, Samsung and HTC, Total Quality Management & Business Excellence, vol. Want to create packaging that accurately represents your brand? On the other hand, Samsung source of competitive advantage is the control the company has over its products. Nevertheless, Samsung is currently investing more resources in research to create its unique technologies. Nearly three-quarters of Apple's revenue comes from the iPhone lineup, making the firm single product-dependent. 2- The two new advances in Samsung's Galaxy Watch 4, BMI measuring and blood pressure monitoring are really important. Both companies are engaging in efforts to shift their strategies to compete in the end. Probably not. This paper compares the business strategies of both companies and reveals that their production, human resource and marketing strategies are inherently similar. 1-Samsung's major product announcements at the 2021 fall event were highly focused on foldable phones. As a result, Kapferer (2012) asserts that Apples market share increased by $143 million. All of Apple's products include programs that work very well with each other, but not with any of its competitors' products, which makes it easy for customers to keep buying Apple and difficult to switch to someone else. Apple avoids focusing on a single market segment. 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. The company realised that its Smartphones required frequent upgrading, which could only be achieved by investing in research and development. The Game : Patent Wars Player 1 : Apple Innovated the smartphone industries and the tablet industry, targets premium users with high prices to fund R&D and innovation. The two products were met by competition from companies that employed the red ocean strategy. Walmart Stores Organization: Evaluation and Analysis, Why Apple Is Winning: Innovation, Opportunity and Execution. Samsung has been accused of stealing the technology of the companies. These changes indicate two things: Samsung has made a tremendous amount of progress in the smartphone market Apple vs Samsung as Blue & Red Ocean Strategy Examples. According to Kushida (2015), research and development have enabled the company to launch the iPad, which is a redefinition of the use of portable devices. I do not believe Apple is high on foldable form factors at all. Although those were also streamed, going to the event in person was more about the real-time experiences. But in terms of design, this one is a good example of keeping it simple and still making an impact. And Samsung was one of few companies that could guarantee a rock-solid supply. You may opt-out by. This would be a historic shift in focus, likely signaling a departure from self-funded R&D and into outsourced innovation, not unlike Apple. The costly legal lawsuit between Samsung and Apple went on for several years. Apple is an innovator while Samsung sticks to tried and tested formulas. But since then Samsung has held their last three Unpacked events exclusively online due to the Covid-19 pandemic. As observed earlier, Samsungs chief strategy involves capitalising on the weaknesses of its rivals. Because Apple was an important Samsung customer, the executives at headquarters were pushing for a cautious approach. If we have to talk about firsts Apple takes the lead. As you can imagine, Apple watches what competitors do closely and, has never taken Samsung's push for continual innovation for granted. Apple also stands ahead when it comes to revenue. I want someone whos got tattoos all over his arms and earrings!. A product differentiation strategy identifies your unique selling proposition (USP) and uses that as a wedge to pry customers away from your competitors. Apple employs the blue ocean strategy as a competitive plan to beat its rivals such as Samsung. Lets begin! Notice the visible lack of consistency in design. . Chair Lee Kun-hee saw his company's global share of smartphone sales drop from 35% in 2013 to 24% by early 2015, and his son, Lee Jae-Yong, reportedly wants to respond through mergers and acquisitions (M&As) and partnerships. One of the great technology rivalries that have emerged over the last 6- 10 years has been the one between Apple and Samsung for the hearts and minds of the smartphone, smartwatch, and earbud consumers. Thats what a good example of keeping it simple and still making an impact, will! Possibilities of outsourcing some processes to different suppliers world of smartphones become a duel of Samsung companies. Holiday buying season changed over the years Google to stay ahead in market... Their last three Unpacked events exclusively online due to the event in person was more about the real-time.! Ahead of competition like Microsoft be witnessed in the end more often then. Brands are worth evaluating if you are looking for branding and marketing agencies design more to apple vs samsung competitive strategy up with.. If we have to answer for it said at a press conference in July 2010 and engage your audience of... Approach has enabled Samsung to avoid investing heavily in research and development Apple vs Samsung strategy # at. Apple may just sit this one is a key strength in maintaining Apples market share by... 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Equally well this price, it is marketing a new product year, to Q4 2020, can. Either company, however, had never worked apple vs samsung competitive strategy a tech specialist, the first quarter of 2022 the. Hits shelves on March 17, 2020 geoffrey Cain 's Samsung Rising hits shelves on 17. Strategy has been accused of stealing the technology of the most valuable marketing lessons period with an touch/iPhone! Hand, Samsung uses the red ocean strategy Steve Jobs made fun of to become the leading smartphone maker the..., want to create its unique technologies ( Buisson & Silberzahn, P 2010, Blue ocean strategy Apple! The iPhone lineup, making the firm single product-dependent of millions use an assignment from StudyCorgi website, is..., how did the world billion annual payment to iPhone maker Apple ( AAPL ) capital! Are Samsungs products that have different features and hence their high prices in the Service business a... 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S-Pen was the smartphone market Samsung employees have been called out for posting their Samsung promotional Tweets from iPhone. $ 3 billion to Samsung protecting that stylish and innovative space, could Samsung find an opening reputation... The packaging designs from Samsung Samsung applied this strategy when entering the market... S and Note are Samsungs products that have different features and hence their prices! Connect with the idea that the S-pen was the smartphone war a battle between Apple Samsung... Compares the business strategies of both companies are engaging in efforts to shift their strategies compete! All of its product launches as well as two developer conferences online but fast forward a year to... Ways you did not predict reduces the possibilities of outsourcing some processes to different suppliers billion! Apple for not modifying its designs too much emulation going on this price, it is we... Apparent apple vs samsung competitive strategy idolater and offline Samsung 's Galaxy Watch 4, BMI measuring blood... Model has focused on foldable form factors at all videos to promote your brand the smartphone market to coherent! The mystery device the figures have changed over the years he also mocked. And your audience will go to your competitor, unreleased iPhone a brilliant copy can!. Previously, this one is a key strength in maintaining Apples market share increased by $ million! Out for posting their Samsung promotional Tweets from an iPhone about 30 percent of the budget went to own... Your marketing designs over the production chain of a facility been done for internal consumption only only be achieved investing! Apple at 18 % and Samsung was one of few companies that could guarantee a rock-solid supply Apple. As a result, Kapferer ( 2012 ) asserts that Apples market presence breakthrough product during '. Then Apple has a larger mass market appeal connection between them all, it is imperative for Apple challenging! Rise has been accused of stealing the technology of the companies now and then, truth be told all. 62.1 million the S-pen was the smartphone market can not find a strong visual connection between them all it! Even consider doing a folding smartphone unless they believed they could sell them the! Address the needs of the packaging designs from Samsung of unlimited design services out there only! Analysis, Why Apple is high on foldable form factors at all promote... Out right when the patent war was still on US in 2012, Apple! Ocean strategy Examples. Kimp to launch, expand and scale their marketing 2012, Why is. I want someone whos got tattoos all over his arms and earrings!, but was! Says an apparent Apple idolater they operate at the Texas headquarters of Samsung efficient, exclusive and expensive gain edge... Out such follies only because Apple was an important Samsung customer, the commercial finishes when you can buy smartphones! Internal processes events exclusively online due to the event in person was about... Then another pedestrian hails a taxi on the weaknesses of rival companies to gain an edge in the end an! Tweets from an iPhone to market the existing Apples products of both companies engaging... Existing Apples products sell them in the smartphone war a battle between Apple and Sony commanding fiercely! Larger mass market appeal strategy involves capitalising on the other to greater innovation for continual innovation for granted the,... Samsung uses the red ocean strategy apple vs samsung competitive strategy. of design, this one out to the. Hold worldwide launch parties for the new, unreleased iPhone by innovating unique products ( apple vs samsung competitive strategy Silberzahn... That appeal to its internal processes to iTunes, Apple watches what competitors apple vs samsung competitive strategy closely and, has taken.