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Samsung vs. Apple.docx#_msocom_1″>[sh1] Will the battle ever end between Samsung

Samsung vs. Apple.docx#_msocom_1″>[sh1] Will the battle ever
end between Samsung and Apple? No one really knows but we do know that these
two companies have been battling over the last 5 years for the top spot in the
wireless device industry. They are the two biggest companies in terms of market
share in our country when it comes to cell phones and they want to continue
their growth internationally as well. It becomes difficult to compete with
international companies in places like China because of their ability to offer
great android phones at a good price. Samsung and Apple have to adjust
strategically in order for them try to maintain competitive in the
international industry. When it comes to price, Samsung and Apple will never
win, however with their quality product they can win over international markets
if they approach it with the right strategy.
Samsung began producing
their first black-and-white television to sale in 1972 (Samsung, 2015). Since
this production, Samsung has developed and sold several items including washing
machines, refrigerators, microwave ovens, air conditioners, personal computers,
mobile phones, and several other technical appliances (Samsung, 2015s).
However, when it comes to its biggest products, it would have to fall in the
wireless industry where Samsung has made a significant impact by offering a
wide variety of devices on the android platform for customers. Although they
have been successful as of late, there was a time where they were struggling
and needed to revamp their strategy. Even though they were excelling well with
TV’s sells, and certain appliances, they were not making any movement in the
wireless industry and a change was needed. According to critic, Michal Lev-Ram,
“Samsung decided that its low-key approach wasn’t working especially in the
U.S., so president of Samsung’s U.S. mobile operations assembled his local
leadership team to figure out a way for Samsung to control its own destiny,
instead of relying on partners to tell its story to consumers” (3). So rather
than sitting around hoping for its product to make an impact, Samsung decided
to make the impact on its marketing team, revitalizing it until it met the
standards Samsung wanted. They knew that marketing their product was just as
important to selling the product as anything so they rebuilt the marketing team
from scratch. According to Lev-Ram’s article, “Samsung spent $349 million on
marketing in the U.S. in the first three quarters of 2012, compared to $191
million a year earlier” (4). Obviously Samsung is focusing on their marketing
aspect and improving it in order for its customer base to be more aware of its
product and brand in the U.S. industry. Ideally, Samsung wants Apple customers
to give them a shot and for them to prove their worth and show them they have a
better product than Apple. Samsung had to come up with the right advertisement
in order to entice customers to try them out and it has worked. When it comes
to their product offered in the U.S., Samsung targets customers who want to be
innovative with their technology while also giving them more ability for
customization on their device, something that Apple doesn’t offer with their
often constrained operating system. With that being said, Samsung still has a
lot of work to do if they want to eclipse the number one spot in the U.S. cell
phone wireless market. According to Digital Trends, Jason Hahn, “Apple claimed
43.6 percent of all smartphones in the U.S. in the three months ending in
September, according to comScore’s latest numbers, Samsung followed with 27.6
percent” (1). This statistic is crucial simply because Samsung revealed their
2015 models in August while Apple released their 2015 models in September. It
shows that Apple’s new releases had a greater impact than Samsung’s did this
year in a less amount of time. Samsung has a lot of work to do to get its
customers to stay loyal to their brand, while also convincing Apple users to
switch to Samsung. Hahn also stated that, “90 percent of Apple users said they
prefer Apple for their next smartphone, while 5 percent said they prefer
Samsung. Meanwhile, 84 percent of Samsung users said they prefer Samsung for
their next smartphone, while 10 percent said they prefer Apple” (1). As you can
see from the last quote, Apple seems to have a little more commitment from its
customers than Samsung does. A difference of 5% is a lot when it comes to the
amount of cell phones that are sold these days. Keep in mind that there are
four nationwide carriers that offer their phones and many different prepaid
stores that sell them as well. Furthermore, the latest quarter numbers show
that the latest devices available are in Apple’s favor something that Samsung
looks to turn around in the 4th quarter. Overall, Samsung needs to
do a better job in the U.S. industry when it comes to their latest devices and
getting customers to switch from Apple to Samsung, otherwise they will continue
to fall second to Apple and not make up any ground it is lacking.docx#_msocom_2″>[sh2].
Established in San
Francisco, California, Apple is known to already have a solid foundation in the
U.S. market, and their business strategy deserves a lot of credit for that.
Apple is known for their innovative strategy and tightly integrating their
products to work seamlessly together. It started with the apple computer now
apple has made their mark here in the U.S. by also producing outstanding
selling products like the Ipod, Iphone and Ipad. In addition, developing their
own proprietary features like ITunes, Icloud, Imessage and facetime have really
helped Apple separate themselves from other cell phone manufacturers who
operate off of either the Windows or Android operating system. According to
Apple’s website, “The Company’s
business strategy leverages its unique ability to design and develop its own
operating systems, hardware, application software and services to provide its
customers products and solutions with innovative design, superior ease-of-use
and seamless integration. As part of its strategy, the Company continues to
expand its platform for the discovery and delivery of third-party digital
content and applications through the iTunes Store” (Apple 2015). As you can see
from the quote above, Apple relies on their own innovation for their business
strategy. Apple ensures that its operating systems are up to par with its
hardware along with providing the customer with an array of different choices
when it comes to content on their device like the Itunes store, apple music,
apple pay and many other features. Along with all the features it offers within
its products, Apple’s business model in the U.S. is known to be consistent over
the last several years, especially when it comes to its products and release
dates. Over the last 6 years in the U.S., there has been a new model Iphone
released, with the last 4 years the model being released in September. Usually
during its model changes, Apple unveils its latest and greatest operating
system that usually includes something highly new and innovative for its
customers to be excited about. Something about Apple is just so structured and
organized, which I believe really helps them because their customers can almost
anticipate when something new will be out, and they will definitely want their
hands on it. Their strategy has been a success for Apple, especially around
their launch dates. This year definitely supports that evidence with the new
release of the Iphone 6s and 6s plus models. According to the Apple Press Info,
“Apple® today announced it has sold more than 13 million new
iPhone® 6s and iPhone 6s Plus models, a new record, just three days after
launch” (Apple 2015). I know that Apple’s expectation was to set a new record
in sales, however there were a lot of doubts since this generation was the “s”
version of the phone, which includes significant changes but the phones are the
same dimensions as last years’ models. Still even with those doubts in mind,
Apple still generated a successful launch, ignited by the special event they
launched on September 9th in which they revealed all the new
features and new IOS capabilities..docx#_msocom_3″>[sh3]As long as Apple continues to be innovative with its products
and maintains its persistent business model, I see them to continue to dominate
the U.S. market when it comes to cell phones and tablets. They currently have
too many loyal users and many potential users that are wanting to switch which
gives them the advantage over Samsung right now.
China
is another country that values its wireless technology. China, being one of the biggest
countries in technology development, is one of the main sources that phone
companies try to target for sales purposes. With a population over one billion
people, it is a smart technique that companies aim their sales toward that
country.
Samsung
has been a successful company in this country. “Some 355.2 million smartphones [were] shipped across the
globe in the third quarter, up 6.8% from a year ago” (Howell, 2015). This
successful company continues to grow and develop new phones for the public to
enjoy. However, top rivals in China have recently shown increases in sales
since, “top global makerSamsung hit a speed bump in high-end
smartphone sales in its quarterly report Thursday” (Howell, 2015). Nevertheless, this prosperous company hit
great stride for quarter three. “Samsungsaw sales rise 9% to
about $45 billion, as its mobile segment sales grew 10%, with an 82% profit
gain tied mostly to strong chip sales, as well as mobile sales. But it warned
about rivals” (Howell, 2015).
On the other hand, Apple has also
been around for some time in China. Their major competitor is Samsung. “Applesaid
as part of its estimate-beating September-quarter earnings that its revenue
from sales in Greater China nearly doubled to $12.5 billion, a
higher dollar amount than it logged in Europe and accounting for almost a
quarter of its total revenue of $51.5 billion” (Howell, 2015). As stated by
Cook on his conference call with analysts, “‘Revenue in Greater Chinanearly
doubled year over year, and we continue to focus and invest heavily there’”
(Howell, 2015). With the revenue being as high as it is, it would only make
sense to focus on consumer sales. Cook also mentioned that the Apple stores in
this country are among the busiest in the world. “Apple now has 25 and plans a
total of 40 by mid-2017 in Greater China, which includes mainland China, Hong Kong and Taiwan”
(Howell, 2015). This is a significant
strategy for this company in order to continue being such a successful
business. Apple has also increased in its market share from “11.8% a year
earlier to 13.5%, seeing a 22% boost in shipments” (Howell, 2015). Compared to
Samsung, the community in China leans toward Apple products. Actually, Apple
stated that “30% of the people who bought iPhones in [quarter three] to replace
a smartphone were switchers from Android — the largest percentage Applehas
ever seen” (Howell, 2015.docx#_msocom_4″>[sh4]).
Overall, both products are very well
off and have successful businesses of their own. Their strategy is to become
more prosperous than the other. They each have their own techniques and
strategies. But, there is no doubt that they each have a certain level of
uneasiness about another corporation becoming more successful and taking
customers away, just like Apple took android customers away. Both companies are
finding ways to continue to be the top cellphone retailer. In conclusion, “China
is becoming increasingly important for high-end smartphone makers, and it’s a
market where Apple iPhones are gaining traction” over Samsung
phones (Howell, 2015).
Since
their first production, Samsung has broadened their products to allow a person
to use only Samsung for their everyday electronic needs (Estrin, 2015). The
expansion of Samsung into other countries has lead Samsung to be a large part
of the South Koreans economy (Estrin, 2015). Samsung “is responsible for a
fifth of South Korea’s exports and about 17 percent of the annual gross
domestic product” (Estrin, 2015, p. 4). New York Times (2015) stated, “if
Samsung collapsed, the whole Korean economy would collapse” (p. 11). These
quotes show how much Samsung means to its hometown country of Korea and there
is no doubt, without them, Korea’s economy would not be as stable.
Samsung’s
success has been accompanied by the success of Apple Inc. Apple’s recent
release of their iPhone 6 and 6 plus created another wave of competition for
Samsung (Dilger, 2015). In attempt to lessen the effects of Apple’s release,
Samsung released their new Galaxy in rose pink gold around the same date
(Dilger, 2015). “Apple’s iPhone sales grew a healthy 26% annually crossing 20
million unit monthly sales mark for the first time ever in November 2014”
(Shan, 2015, p. 1). The rise of new Apple products that are deeming popular for
their size and capability have lead to a “higher than expected demand” in Korea
and other countries (Shan, 2015). “Apple’s iPhone market share soared and
reached record levels in Japan and Korea markets” (Shan, 2015, p. 3). The sales
of Apple iPhones in Korea accounted for one-third of the total number of
smartphones sold in November (Shan, 2015).
By
Samsung releasing their new Galaxy around the same date that Apple released
their iPhone 6 and 6 plus models, Samsung was planning to hopefully have an
edge on Apple by having a competing phone. However, Apple continues to globally
market their popular products. Apple has won the hearts of Koreans with their
large screens and innovative operating system and features. There are many ways
apple could go about making themselves better known, and a great way to
continue their global popularity is by finding a location to build a factory
that makes Apple products. Having a direct line to South Korea would be huge in
Apples’ growth moving forward and surely Samsung would not like it. Another
factor to consider before building a factory in South Korea is understanding
the details about the country’s market. This is a big issue moving to another
country where there are different rules and regulations that come with it.
Apple needs to do its thorough research before investing too soon and possibly
making a mistake. However, if Apple can successfully move a factory to South
Korea where they are known for technology, this would be huge for them in
several ways.
Both Apple and Samsung make very high
quality devices, there is no doubting that, however consumers still have their
preferences based on their phones’ functions, capabilities and particular
features provided through the phone. Both companies have had new releases of
their phones within the last few months and both companies are pushing their
own proprietary features to try to win customers over. Samsung released its
Galaxy s6 and s6 edge models in April, while releasing its Note 5 and Note Edge
+ models in August. Meanwhile, Apple had their prototypical release month of
September, in which they revealed the Iphone 6s and 6s plus models. Samsung had
the most significant change in their devices considering that all of their 2015
models do not have a removable battery nor expandable memory, something that
all previous Samsung models had before. It was a brave move by Samsung removing
two of the features Apple doesn’t have, but they didn’t have much choice if
they wanted to make their newer models much lighter and thinner for customer’s
to carry around rather than having a bulky, heavy battery in the back of the
phone. In addition to that, they also upgraded the software significantly with
their newer models along with huge camera improvements, ones that definitely
can be noticed when comparing older Samsung models. When it comes the Iphone,
many considered the changes miniscule simply because the newer phones are the
same dimensions as last years’ models. That is not the case however, since
there are some major upgrades to the Iphone like the camera increasing to 12
megapixels in the back while front camera is 5 megapixels including flash, the
new 3D touch feature is enticing as well as the latest IOS 9 operating system
released by Apple. Of course the newer phones are supposed to be better than
the older models, but the question is which device will consumers prefer more?
Critic Sasha Segan, of PC Magazine, discusses his preference about apple vs
android in his article saying, “When it comes to apps, especially games,
there’s still a gap. Many games aren’t available on Android, and the more
uniform nature of the IOS platform means a lot of small developers still turn
there first. That’s always been the case. It’s not just Apple’s excellent
hardware, but the strength of the overall IOS ecosystem that makes the Iphone
6s worthy of our Editor’s Choice Award” (6). It is hard to differentiate the
two companies’ phones because of the high quality hardware and features each
phone presents now, therefore we have to rely on comparing the operating
systems and their own proprietary features that they offer. It seems like right
now, that Apple has that slight advantage over Samsung based on its strong
development of its IOS and its continued innovation of integrating their
products to work seamlessly.
In
conclusion, Apple and Samsung are both very good at what they do, and they will
continue to produce better products every year. The challenge is, who will stay
at the top? Will Samsung ever dethrone Apple? Or will Apple continue its
dominance? Nobody will ever know, but we do know that both of these companies
produce high quality products, that market for different types of customers.
They have both been successful in different ways and will continue to do so as
long as they continue to be innovative and creative for their customers,
providing them with the best technology at the touch of their fingers.
General
comments:
1. I feel that you could write more
professionally and formally by adopting the frameworks and terminologies that
you have learning from our course or other courses you have taken;
2. You might make your writing more
structured and each paragraph or part serves one single purpose that would make
the whole paper an integrative and logic one.
3. Please be more focused on the
questions asked in the project instructions. In other words, please focus on
the two companies’ INTERNATIONAL strategies, and propose a new strategy for
Apple to maintain its competitive advantage in global market.
4.
Please
continue to revise and polish your work, as I may not point out all the places
that have room to improve.
5.
Please
make sure that your paper can pass the similarity check (by avoiding copying
other resources). You need to submit your final version through the link on
project folder for turnitin similarity check. A paper with 20% or higher
similarity rate is subject to a fail grade. Please turn your paper a few days
earlier than the deadline so that you have time to deal with possible high
similarity rate and resubmit again. The deadline for final submission is Dec
10. Once your team submitted the final paper, please fill out the peer
evaluation form located in “Quizzes” section. EVERYBODY should finish the peer
evaluation or your grade submission will be postponed.
.docx#_msoanchor_1″>[sh1]Please
read my general comments on your draft right before your reference list.
.docx#_msoanchor_2″>[sh2]Please
address the international market when you introduce Samsung and its position in
cellphone market.
.docx#_msoanchor_3″>[sh3]Please
be more focused to the key questions in the case project instructions.
You’d better to identify Apple’s strategy first, and
then give some evidence to support.
As suggested in the project instructions, please read
at least chapters 8 and 9 for some theory framework to be used in your
analysis.
.docx#_msoanchor_4″>[sh4]China
market is just a part of their battle field. EU, India, and possible other
markets should be considered too.

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