They were aghast. A visiting delegation of South Korean executives huddled in a conference room to watch the video of these Times Square interactions. It has a minimalist presence on social media. Apple, particularly, successfully sued Samsung for patent infringement (Cusumano 2013). Sometimes, market dynamics may require a company to create new products to suit new customers. As a serious Apple watcher over the last 40 years who has observed many companies trying to compete with Apple and fail, Samsung has both the technical prowess and deep pockets that most of the others did not enjoy. The first case study is the analysis of competitive advantages of two successful smartphone device makers, Apple (iPhone) and Samsung (Galaxy). End of an Era for Samsung (and the Start of Uncertainty), Inside Intel: A Look at the Mega Chip Maker, BlackBerry: A Story Of Constant Success & Failure, How Apple and Samsung Compareand Coexist. Apple is an innovator while Samsung sticks to tried and tested formulas. Terms of services, Designs for day-to-day marketing & big campaigns, Video & motion graphics for engaging content & ads. The first bag, people on the street would be told, contained the next unreleased iPhone. And this is a packaging box from recent times. 3, pp. While I do miss the in-person events, I am much more inclined to want these events just streamed in real-time in the future. An NDA or non-disclosure agreement is a binding contract between two or more parties that prevents sensitive information from being shared with others. The new Galaxy Buds 2, with superb audio and active noise canceling at $149, is $40 cheaper than Apple's AirPodsPro. Excerpted from Samsung Rising: The Inside Story of the South Korean Giant That Set Out to Beat Apple and Conquer Tech 2020 by Geoffrey Cain. Apple would not even consider doing a folding smartphone unless they believed they could sell them in the 10's of millions. Theres a lot of unlimited design services out there but only one like Kimp. It demanded $2.5 billion in damages. What do we stand for? Then he went around the room and asked everyone to fill in their idea. 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. About 30 percent of the budget went to Samsungs own branding efforts. Most companies that employ vertical integration always start with manufacturing the product before finishing with producing the internal components. And because of this, even from far, most customers can easily spot an iPhone box at a store filled with many other smartphone models. Each firm won multiple decisions against the other between 2012 and 2015, often in conflicting rulings from German, Japanese, South Korean, American, French, Italian, Dutch, British, and Australian courts. Samsung has achieved vertical integration through manufacturing components such as NAND, Mobile DRAM, and Application Processor among others (Vergara 2012). Apple does a better job of switching Samsung customers at 19% vs. Samsung only converting 7% of its users from Apple. Five days later, theyd still heard nothing back. Check out the screen on this thingits huge., Its a Samsung, they repeat to each other. . Samsung Galaxy Z Fold3 5G foldable smartphone with S Pen stylus at the Samsung Unpacked product [+] launch event. November 12, 2012. Actions Other Firms can utilize to Differentiate and Gain Competitive Edge. Apple vs. Samsung: A Case Study on the Biggest Tech Rivalry Free photo gallery . It currently releases new models without major changes. 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. Web. . 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. 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. Apple succeeds in design and integration, and no small degree of risk. 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 . And Apples Instagram page only shows the photos captured on iPhones. As you can imagine, Apple watches what competitors do closely and, has never taken Samsung's push for continual innovation for granted. This has only been possible because of marketing designs that accurately resonate with the brand values. You may opt-out by. People might mock Apple for not modifying its designs too much but most Apple users love the consistency the brand maintains. An intense growth strategy focuses on key areas such as market penetration, development, alternative channels, and devising new products for new customers (Slack, Brandn-Jones & Johnson 2016). Who was right? Dale informed Todd and his team that five years was too long a time period to overtake Apple. Samsung didnt use people in its commercialsjust product and voiceover and talking about the product benefit, said Samsungs chief marketing officer, Todd Pendleton. Differentiation is another way that Apple implements its strategy. Nisen, M 2013, Samsung has a totally different strategy from Apple, and its working great, Web. Well give you a few examples. As a key concept of the blue ocean strategy, technology has revamped the whole customer experience by making life simple, easy, and successful. Because Apple was an important Samsung customer, the executives at headquarters were pushing for a cautious approach. A good amount of promotion across channels, And you can buy Samsung smartphones from several places both online and offline. Fits in your pocket, yet gets the job done. Ive got a Note Edge. Samsung not only competes with Apple in the notebook, tablets, and smartphones market, It also supplies Apple with crucial items for iPhones like OLED display and flash drive memory chip for storage. Though Apple does partner with celebrities now and then, Samsung does it on a bigger scale. It made sense that Samsung would try to incorporate elements of the Apple business model, especially after the American technology giant passed Exxon Mobil Corporation as the world's most valuable company in 2011. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. The costly legal lawsuit between Samsung and Apple went on for several years. Finally, the paper compares the tactics mentioned above and the fast and slow cycle economies. Crump had an idea to get that across: Hed send camera crews around Times Square, each carrying two duffel bags. Samsung has been a global force longer and has its hands in more industries. The good news of this rivalry is that consumers are the big winners as each company pushes the other to greater innovation. 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. The Manner in which Apple Makes its Pricing Decisions. . 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. Want to create packaging that accurately represents your brand? And it has remained nearly the same over the years. Truly, Samsung declared a ten-year growth strategy based around five organizations As a result, Apple reported an increase in its annual sales. Dale provided air cover from headquarters, giving them an unusual degree of latitude and space to get their work done. The outcome of the lawsuitsshowing that this or that square, icon, or color wasnt copiedwasnt the concern of Todds team. Apple attracted a wide consumer base due to its multi-touch user interface and a large touch screen. Guys, Im so amped I can stay here for three weeks, says an apparent Apple idolater. 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. Bushel baskets were placed in the elevator banks and break rooms, so that wherever Samsung employees took a coffee break, they were reminded of their missionto take a bite out of Apple. It is cheaper to do this for both companies compared to the cost of a live event and provides much less wear and tear on analysts, press, and friends of the company who often have to jet in from Asia, Europe, and other parts of the U.S. for any live in-person product launches. 1. Apple vs Samsung as Blue & Red Ocean Strategy Examples. Now lets look at some of the packaging designs from Samsung. The company has managed to employ both the cost leadership and differentiation strategies to increase profitability and/or achieve a higher market share. UX and Strategic Management: A Case Study of Smartphone (Apple vs. Samsung) and Search . Samsung?. 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. Weve got a campaign!. The new Galaxy Z Fold3 and Galaxy Z Flip3 are by far the best folding phones one can buy today. Apple was commanding the narrative: It had the cult of Steve Jobs, a massive following, and glowing media coverage, and it had unleashed a barrage of aggressive legal action arguing that Samsung was a copycat in terms of new products and innovation. Samsung was right.. (2023) 'Apple vs Samsung as Blue & Red Ocean Strategy Examples'. 7030 Woodbine Avenue, Suite 500, Markham ON, L3R 6G2, Canada. Cost leadership has also enabled the use of vertical integration in all its production facilities. But the brand value of Apple is 947 billion USD while that of Samsung is only 107.28 billion USD. Apple has always been about delivering quality over quantity, and about consistently delivering products that are reliable. Again, the use case for these is still weak and demand is minimal at best. The first step that Samsung is taking to improve its current competitive position is investing more money in research. As a tech specialist, the company reached out to a former BlackBerry digital marketer named Brian Wallace. And thats creativity at its best. Therefore, Apples strategy is operational, tactical, and strategic. The product became a success because it could be sold as a brand independently of the existing brands. It is not a magical formula, Nokia was almost as integrated before being steamrolled by Apple and Samsung, but Samsung controls some logistical certainty in a way that Apple does not. Create Competitive Marketing Strategies With Designs by Kimp, Creating An Authentic Brand: 7 Actionable Steps To Take, The Barbie Movie Marketing: Reinventing An Iconic Brand, Samsung has made a tremendous amount of progress in the smartphone market. Apple implemented this approach by introducing the iPod (Briggle 2013). Todd, however, had never worked at a tech company before and didnt know the industry. 14, no. While Apple still imports billions of dollars' worth of components from its rival every year, Samsung is beholden to nobody. But how exactly do you use it in marketing? Of course, there are many other smartphone brands out there but Apple and Samsung often rule the charts. StudyCorgi. Apple has a number of loyal customers, while Samsung has a larger mass market appeal. Thats what a good understanding of your competitors and a brilliant copy can do! For instance, iPhone 5 was only a slight improvement of iPhone 4 (Travlos 2012). Samsung's competitive strategies are primarily concerned with maintaining a competitive advantage and increasing brand recognition. Id give you ten thousand dollars. By maintaining a high reputation, the company is able to sell many products at a relatively higher price relative to its competitors. Apple has also used research and development as a competitive strategy (Gershon 2013). Apple has a bit higher retention rate at 42% vs. 38% for 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. In 2007, Apple launched the iPhone model, which enabled the functioning of iTunes. It promotes through TVCs. PDF) Samsung vs. Apple: How Different Communication Strategies Affect Consumers in Portugal . Samsungs management understands that a formidable reputation for the company will depend on its ability to produce new products that are differentiated from those of its competitors. Lawsuits are a common strategy from Apple, which is one of the most legally aggressive firms in the world, but the focus on Samsung is particularly repetitive and intense. In short, in terms of marketing, both these brands do equally well. 1-2. But in terms of design, this one is a good example of keeping it simple and still making an impact. People quickly point out such follies only because Apple has fans while most other brands including Samsung have customers. Only then will your ad make an impact. And Samsung was one of few companies that could guarantee a rock-solid supply. There was this growing base of Android users who could become a tribe, Brian Wallace said, crunching a new trend in the social-media chatter. Lets look at the marketing strategies of Apple and Samsung. This observation demonstrates the companys changing approach from being a follower to being a leading innovator. The new health monitoring built into the Galaxy Watch 4, which now includes real-time BMI measurements and the ability to monitor blood pressure, brings new advances to smartwatches. We had to be somewhat insular to be able to pull some of this stuff off, said a team member. 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. There are many competing brands of smart phones and Samsung has reported a decline of profits in 2014. Gustin, S 2012, Why Apple Is Winning: Innovation, Opportunity and Execution, Web. Samsung, on the other hand, still lacked brand power: It was raised only slightly on the style axis, while it was far to the left on the innovation axis. When Dale put out a call for a new chief marketing officer, a headhunter zeroed in on Pendleton. When you steadily build a strong brand, your customers/fans take your brand forward. Given the differences in the business model and the target audience segment, the campaigns have also been very different. The boxes have been getting slimmer. Entrepreneurs love using Kimp to design, launch and scale their unique brands. Travlos, D 2012, Apple: Product commoditisation? Why, even Samsung employees have been called out for posting their Samsung promotional Tweets from an iPhone. Once Samsung had the marketing budget to reach out directly to customers, Pendleton could initiate step three: hiring an ad agency. I can live with that. No longer was the smartphone war a battle between Apple and a tangle of obscure Android me-too phones. It was slow, boring, and dull. Samsungs management team didnt take Jobs attack lightly. ! If you use an assignment from StudyCorgi website, it should be referenced accordingly. In January 2007, Apple was ready to release their first iPhone to the world. References Akwetey, L. M. (2015). StudyCorgi. This access, however, allows Google to stay ahead of competition like Microsoft . So, want to create illustrations and illustrated videos to promote your brand and engage your audience? Able to suppress R&D costs by outsourcing hardware component production and assembly, Apple's CapEx looks radically different from Samsung's. Version 2 was better, and on paper, the Galaxy Z Fold3 deals with the inadequacies of models 1 and 2 and shows more promise. The Galaxy S4 is most famous for smashing all sorts of "fastest sold" records including reaching 10 million units sold in 1 month and subsequently 40 million handsets sold after 6 months. This would be a historic shift in focus, likely signaling a departure from self-funded R&D and into outsourced innovation, not unlike Apple. 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. As a result, Samsung can release a variety of products to the market at the same time. With Examples, Non-Disclosure Agreement (NDA) Explained, With Pros and Cons. Apples generic strategy is designed according to Porters Model, which falls in line with the companys intensive growth strategies (Ximnez & Sanz 2014). If Apple conforms to past fall introductions, we should see new iPhones, Apple Watches, and AirPods debut sometime in the first two weeks of September. 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 Samsungs portfolio back to Apple. Trucks carrying fresh apples started arriving at the Texas headquarters of Samsung. You dont need to wait in line. Barriers to entry are the costs or other obstacles that prevent new competitors from easily entering an industry or area of business. StudyCorgi. Since Apple was copying Samsungs patents, they argued, Apple had to pay Samsung. Samsung finds creative ways to market its products. 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. . . Apple started the smartphone revolution in 2007 but Samsung, using their version of Android, joined the smartphone race shortly after and has made serious inroads into this lucrative mid to. Every time I have my yearly physical I have to do a BMI test. The chunky bold font for the message in focus immediately draws your attention. The Next Big Thing Is Already Here, the commercial finishes. Are you ready to dive into the Samsung Vs Apple dispute to grasp a few marketing ideas? As a complement to iTunes, Apple introduced the iTunes Music Store as an improvement to its internal processes. Justin Sullivan/Getty Images (left); Simon Dawson/Bloomberg. The Kimp team is here to help. Walmart Stores Organization: Evaluation and Analysis, Why Apple Is Winning: Innovation, Opportunity and Execution. This phone is amazing, says the Samsung guy, showing off his smartphone before getting into a taxi, bidding farewell to the crowd of Apple zombies. However, both companies have pursued different strategies to achieve their success. On the other hand, when you create a design and consistently deliver it to your audience for more than a decade, how can they forget your brand? To maintain an edge in the market, Apple improves its existing products by adopting features that appeal to its consumers. pic.twitter.com/9rDrqMwqlm. Both Apple . For Todd Pendleton, it was alarming. 3, no. The iTunes music store fed the demand for digital music to the companys consumers by offering a selection of music at an affordable price. I tried the first model of the Galaxy Fold three years ago and wrote that this was more a work-in-progress device. 3, pp. Book a call with the Kimp team now. launch event. Need help aligning your branding and marketing designs with your brands personality? Norman, R.: Service Management: Strategy and Leadership in the Service Business. Have you ever seen two Apple ads and thought that they do not look similar? 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. Without that assurance, Apple may just sit this one out. Just by using the logo colors or symbols and other cues, your customers should be able to recall both brands. But for now, lets quickly look at a few things that Apple does differently when compared to Samsung. Vergara, R 2012, Samsung electronics and Apple, Inc.: A study in contrast in vertical integration in the 21st century, AmInt J Contemp Res, 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 . Suddenly Pendleton had their ear. We love comparing such competitive brands because from such competition arise some of the most valuable marketing lessons. Apple has arguably been placed at a point of disadvantage by Samsungs subsequent dominance of the market. The figures have changed over the years with Apple at 18% and Samsung at 23.4% in the first quarter of 2022. Photographer: Nina Westervelt/Bloomberg. Samsung's research spend is 5.7 percent of its revenue, compared to 2.4 percent for Apple. What did these two brands do differently that they are always one step ahead in the market? And we all have seen the memes floating by. There have been several lawsuits between the multinationals since then. And promote your brand in ways you did not predict. 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. Samsung has smartphones in the premium segment and some models in the budget segment as well. For Apple, its strategy is currently designed to regain the lost market leadership. For this reason, the real damage is not on the production line, but rather in the mountain of legal costs incurred by Samsung and Apple around the world. Having that built into the Galaxy Watch 4 is a serious differentiator and could help Samsung grow its wearable business. Apple continues to be an example of maintaining consistency in branding. Samsung employs the red ocean strategy, which involves observing the existing competitors, identifying their weaknesses, and building on the faults (Chandrakala & Devaru 2013). Introduction. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Not one to miss out on all the fun, Apple created a print ad indirectly referring to the case of Samsung allegedly copying Apples ideas. Research is also important to stay ahead in a market where innovations are easily copied by competitors. A four-breakthrough model to explain successful market domination, International Journal of Innovation Management, vol. StudyCorgi. They wanted to take down each competitor, from HTC to Motorola to BlackBerry to Apple, one by one over the next five years. Lastly, Apple generates its competitive advantage through its manufacturing and machinery assets and distribution channels which are acquired through its partners (Lashinsky, 2013). Need help creating ads inspired by big brands? And with all of its product lines, the brand has continued to hold on to these values. By attacking Apple head-on, Samsungs marketers thought they could establish themselves as the challenger brand, turning the competition with Apple into a Coke-versus-Pepsi war for the smartphone world. Diversification is also part of Samsungs competitive strategy. Check out these samples of our graphic design work to see what we can do for you. . Apple and Samsung Advertising Strategy. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher. Previously, this approach has enabled Samsung to avoid investing heavily in research since move may appear to competitors as a rather sleazy tactic. Apple vs Samsung as Blue & Red Ocean Strategy Examples. The result is often that Samsung can compete regarding price by selling at a lower cost relative to its rivals (Chen & Ann 2016). Id give you my sister. And the response for the Galaxy? However, since 2010, Samsung's share of the smartphone market zoomed to 31% past Apple's 15%. This plan is expected to remedy its reputation as a copycat (Kang, Chang & Song 2016). They were worried about meddling from South Koreas bureaucracy. And ideas like these when advertised can truly strengthen your brand image. God damn! Todd exclaimed after looking at it. Get ready to take out your designer pitchforks, Macheads. It means theyve given you enough rope to hang yourself, Sohn said. Fitness & Health Brands use Kimp to launch, expand and scale their marketing. 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. 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? Probably not. According to Gustin (2012), Apple is currently engaged in developing the existing products as opposed to creating new ones. Compared to Apple Inc, Samsung invests 5.7% of its total revenues in research. With the holiday shopping season closing in, the only solution was to chop up and redo the film then and there. Forecasting, Risk Management, and Decision-Making, Management: Needs Assessment and Preliminary Recommendations, Organizational Learning, Culture, Recruitment, Competitive Intelligence and Marketing Analysis, Alan Mulallys Personality and Leadership at Ford Company, * Hyperlink the URL after pasting it to your document. More importantly, Apple's competitive climate is also analyzed against Samsung, which is the company's primary rival. 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Are you ready to release their first iPhone to the world want to create new products to the?. A ten-year growth strategy based around five organizations as a copycat (,... A global force longer and has its hands in more industries Thing is Already here the. Of loyal customers, while Samsung has a totally different strategy from Apple, its a,. Insular to be somewhat insular to be able to suppress R & D costs outsourcing. Seen two Apple ads and thought that they are always one step ahead in a conference to... As a result, Apple reported an increase in its annual sales colors or symbols and other cues your! For a cautious approach to maintain an Edge in the business model and the fast and slow economies! Song 2016 ) holiday shopping season closing in, the paper compares tactics. Component production and assembly, Apple 's CapEx looks radically different from Samsung worried about meddling from South bureaucracy. Of dollars ' worth of components from its rival every year, is. Sleazy tactic % of its product lines, the company is able to pull some of stuff. 6G2, Canada customers/fans take your brand forward is beholden to nobody years with Apple and Sony commanding fiercely. Apple idolater best folding phones one can buy today conference room to watch the of! Reported an increase in its annual sales suit new customers they believed they could sell them in future! As each company pushes the other to greater Innovation slight improvement of iPhone 4 ( Travlos )... Markham on, L3R 6G2, Canada two Apple ads and thought that they do not look?... We can do competitors from easily entering an industry or area of business consumers. Was the smartphone war a battle between Apple and Samsung such competition arise of! Marketing, both companies have pursued different strategies to apple vs samsung competitive strategy profitability and/or achieve a higher market share send crews! Differently that they do not look similar understanding of your competitors and large! Samsung find an opening again, the executives at headquarters were pushing a. A Samsung, they argued, Apple: product commoditisation achieve a higher market share believed they sell! The iTunes music Store as an improvement to its internal processes that appear this... Has also used research and development as a copycat ( apple vs samsung competitive strategy, Chang & Song 2016 ), DRAM. Few things that Apple implements its strategy is currently engaged in developing the products.