Evaluation of the Competitiveness of the Samsung and Apple - Case Study Example

Evaluation of the Competitiveness of the Samsung and Apple Introduction Almost all the people talks about Apple and very few people talk about Samsung. To play the game of the Apple which Samsung is trying to do is very hard. The two brands are locked up in a very big battle; as Apple holds the lead in the market share of the U.S. by a margin of about 42% to 29%, Samsung have a similar lead in the international markets. Apple has made its products a necessity for every person who would wish to remain relevant in the culture of today as they try to dominate the conversation about digital connectivity. The company of Samsung has also tried to battle it out against its major competitor for cultural relevance. Apple may win at innovation but when it comes to the marketing, Samsung invest most of its time on the entertainment (Yao, et al., 2008). This paper seeks to evaluate the competitiveness of the Samsung and the Apple companies in the marketplace. Samsung This is one of the largest smartphone producers in the whole world. In the past, the company had been paying more attention to the fashionable styles that contributed to some great extent in attracting the interests of young people. Both shipments and the market shares increased rapidly. During this period, it experienced a great improvement since before the market share, and even the shipment was relatively very low. The success of the Samsung Electronics mainly came from the swift and agility but due to lack of innovativeness may contribute to the loss of the probability (Yue, et al., 2011). Currently, Samsung pays attention on the production of more smartphones, for example, the Bada system. This system is a platform of the newly developed set of smartphones that the company came up with; the linking interface is more attractive and fashionable in the style and even in the colour. This appears as the cash cow of the Samsung products since the market growth rate is very low, but the market share is growing and is very high. The feature of which are the high level of the sale volume with the low rate of liability, it can help the company to get funds, but the investment of the products does not need improvement Almost all their operations are guided by the core mission of being the best and digital company. The company of Samsung came into the global corporation through directly facing the challenges. For a long period of time, the company of Samsung embraced many challenges until it came up with many innovative ideas to come up with new products and services that that led in the markets (Nair & Leng, 2012). The ingenuity for a long time will continue to chart the course of the Samsung Company as the one that is very profitable and a very responsible international corporation. The company of Samsung is guided by one vision that is to lead the digital convergence movements. They have believed that through technology, they can get the solution of the challenges that they face today. From technology, they got the company got the opportunity for their business to grow, for their citizens in the upcoming markets to prosper through tapping into the digital economy and for them to invest in new possibilities. It is the aim of the company to come up with the creative technologies and processes that are very efficient so as to create new markets and enrich the lives of the people and continue to make the company of Samsung a trusted leader in the marketplaces. As part of their vision, the company has mapped out plans for reaching about $400 billion in revenue collection and become of the top leaders in the market by the year 2020. The company is committed to being a very innovative leader in the in the upcoming and even existing markets. The main objective of the Samsung Company is to lead the digital convergence movement as they come up with new innovative technologies that will see to it that there are efficient processes that will continue to make the company be the trusted leader in the market. The company is also committed to exploring new territories like health, biotechnology and even medicine. Review of the Performance, Strategic and Financial Goals Samsung is one of the largest companies in South Korea that operates through a big network of subsidiaries world. The main interest of the company is more than 20 affiliates and gives a main focus on the electronics, service activities and even finance (Chacko, 2009). The company is one of the biggest manufacturers of the random-access memory chips in the whole world. One of the strengths of the Samsung Company is that the customers are very loyal, and they appreciates the brand. Through this, the company is enjoying very good position against its competitors in the marketplaces. Also, the company has a very good relationship with its suppliers and labourers following its stable and strong financial position. The processes of production and inventory management procedures are very consistent with the standards of the company. The company is committed to producing many devices that can be integrated with many of the soft wares operating systems (McCray, et al., 2011). This gives the products of Samsung edge over the products of the Apple that its main rival in the market particularly the androids. Apple is a very excellent in producing and engineering hardware parts and even consumer electronics. In terms of the market share, Apple is considered number one in television and the sale of smartphones and even some of the hardware parts like processors and memory chips. Apple Apple is known as the leading digital asset company that produces smartphone globally. It is the only company that generates and distribute both software and even hard-wares (Cruz & Camargo, 2011). It allows its customers to buy and share the contents of the Apple products like the music, movies and even applications through the devices of Apple such as the iPad, iPhone and many others. To gain insight of how the business potential of the Apple, direction of the business operation and to understand the market situation of the future, we shall use the PEST analysis. Political Factors A lot of problems cannot be controlled by the company managements, for example, geographical uncertainties, terrorism, health factors that can affect the sale of the products of the Apple globally. To reduce the various costs of operations, Apple has to outsource from very many countries like the Ireland, China, Korea and many others. Economic Factors The purchasing powers of the Apple Company depend on the economic conditions of the whole world. In the past few years, the rate of unemployment has been on the higher side in many countries and as a result it has greatly affected the sale of Apple products. Another reason for the rise in the price of the oil creating inflation in the economy of the world. Due to this rise the purchasing power of many people reduced drastically which negatively affected negatively the sale of Apple products as a result of their high prices. Social Factors The main factors that have been at the forefront of the products of the Apple Company throughout its history time are the designs and quality. Consumption of luxury product has gone up because the purchasing power of the consumers has gone up in most markets around the world. The growth of music industry has also gone up, and this is the largest social influence on the products of Apple industry since the store is iTunes (Yu, 2013). Technological Factors Apple has an advantage of the creativity of it labourers and high technological products. Apple has invested a lot of their time in research and development this the main reason Apple is at the top of the new innovative products. Analysis of Competitors Apple is one of the biggest industry, and it is moving so many products. The key major competitors of Apple are cell phone industries like HPQ, Sam sum, Nokia and many more. Analysis of Industry Competition In the any given industry competition is mainly defined the five forces of Michael porters. This model can help to evaluate the impact of the Apple and its ability to compete in the marketplaces. The five forces include: Intensity of Rivalry in the Industry The Apple Company have done a great job through the provision of the technical support that has helped in the creation of the customer loyalty for the products of the company. Apple Company has maintained its productivity for a long time without ever making down any of their products and, as a result, the gain a large market share with low prices of the products. Bargaining Powers of the Suppliers The powers to bargain by the Company suppliers can make the profit of the company to go down through indicating higher prices for the suppliers. This makes the company look for a new suppliers since there is no doubt that Apple Company is still experiencing growth. The company accepts new suppliers so that it can reduce the bargaining power of suppliers through registering online on the website of the Apple. The Bargaining Powers of the Buyers The Apple Company has tried to put measures that will help to meet the expectations of their customers so that they can achieve the majority of the market share through different segments that are based on the level of education, age and the income levels of the customers (Assatarakul, et al., 2012). Another factor that the company must also take care of is the fact that customers are more sensitive to changes in the prices and they can easily move to another retailer if the products of the company are not differentiated. Threats to New Entry into the Market When more companies enter the market, then it means that the market share for the Apple Company is reduced. The company can maintain its market shares and even generate more profits through establishing strong market strategies for example competitive advantage through differentiating its products and brands. It is difficult for the new companies to compete companies like Apple in the market since they have established a strong Image brand and even perceived good customer service and value. Conclusion Almost all their operations of the two companies should be guided by the core mission of being the best and digital company. The companies should learn to embrace many challenges until they come up with many innovative ideas and new products and services that may increase their market shares. References Assatarakul, K., Churey, J., C Manns, ,. & Worobo, R., 2012. Patulin Reduction in Apple Juice from Concentrate by UV Radiation and Comparison of Kinetic Degradation Models between Apple Juice and Apple Cider. Journal of food protection, Volume 75. Chacko, G., 2009. Wider context of internal boundaries for CONCOL negotiations, organizational & financial controls. Asia Pacific Journal of Marketing and Logistics, 11(2), pp. 123-146. Cruz, M. & Camargo, M., 2011. Relationship in the production chain of apple in the perspective of complexity theory. African Journal of Business Management, 5(3), pp. 1014-1019.. McCray, J., Gonzalez, J. & Darling, J., 2011. Crisis management in smart phones: the case of Nokia vs Apple. Newyork: European Business . Nair, P. & Leng, Q., 2012. 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