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Title: Why Samsung and Apple are dominant and that nothing else comes close in the competition of their technologies and the electronic device industry
Introduction
Technology has developed with the evolutions and changes in civilizations of mankind. The latest technologies and innovations have emerged and transformed the world towards a completely new era, and these technologies have become an important part of our daily lives. The mobile industry is contributing to technology and has changed the patterns of communication between people and organizations (Çiçek). The mobile industry has emerged in these last two decades and the trends in the technology sector have changed with innovations like mobile phone manufacturers, operating system companies and carriers. The competition among the mobile industries has increased gradually and the competitors are customer and market-oriented, and the competitor tries to provide quality services to the customers to compete with each other.
The mobile industry in specific to mobile phones or smartphones needs some innovative technology to attract the customers in the market (Nagpal). In these past years, smartphones like Samsung and Apple have developed a market image by providing customers with quality services. Both are developed and incorporated with the latest software and technologies that attract the customers, and this is the reason for the existing market competition. Apple and Samsung have been competing with each other and among the other competitors in the market because they have developed new options in their software and both have been providing quality services in the market. The customers of both brands are increasing day by day and they prefer the quality services and their unique styles in software being offered by these companies.
Apple and market
We are living in the digital revolution because the innovations have changed the telecommunication and information patterns. Apple Inc. is the world’s most valuable company, which has traded the most by capitalizing the market, estimated at US$530 billion, and it is the second-largest mobile manufacturer. This company is American, based in Cupertino, and they only focus on manufacturing and sales of consumer electronics, software, and online available services. The products provided by Apple are not only limited to cell phones and software but they also provide products like tablets, applications for computers, media players and operating systems. The new technologies of Apple products are the attraction to the customers and they are increasing but not every customer can afford the prices for the products available in the market.
During 2001, Apple introduced Mac, user-friendly firmware, and graphics with quality used in the interface. For the direct customers' attractions and relations, Apple announced to build retail stores and the objectives included the customer services and marketing of the products by Apple. In 2007, Apple introduced an iPhone with a unique style with unique styles (touch screen and no keyboard) which were a major attraction for the customers. The targets were those customers who prefer to use lightweight devices and prefer larger screens rather than using computers for their tasks. The aims and objectives of Apple are to provide maximum quality services and branding of the company, and the company has successfully developed a unique reputation in the market of electronics and technology (Riegel).
Apple is producing such products, which are affordable to a few customers, and not all customers in the market can afford the market prices of Apple products. Customers in the market will shift towards cheaper products by other competitors in the market and it will affect their market and customers. While there are threats for the Apple products and there are some issues with the products like Apple phone (battery). The other competitors like Samsung and Google are a threat to Apple as they are offering cheaper prices to the customers and their targets are the larger public who can pay them. Apple has to extend its market to a larger scale, as it has to target that segment of customers, and people who could afford the product prices and the company can earn profit from these customers.
Samsung and Market
On a larger scale of business, Samsung has been in a leading position in the international market. Samsung is supplying services like supplying, manufacturing and other services. The product and the market prices of Samsung influence the customers and it has developed an image in the mobile industry (Simonin 3). Samsung is the main competitor of Apple and it has relocated operating systems of both Apple and Google, which has made its mobile phones popular in the market. Samsung is producing the largest number of memory chips, mobile phones, and Samsung Electronics. The new market strategies of the company are focusing on the expansion of its services and the market to reach a maximum number of customers and earn a revenue, although it is expanding its services to customers and competing for the other brands already (Lee 5).
It is important to consider that Samsung has strong global ties to consumer electronics, which is a result of its impressive supply chain in the major portion of the world. Its expertise in the manufacturing of semiconductors and electronics has placed it in the world's major leading brands. Its stable sales channels for products are a result of its long-standing relationship with the merchants of the US. Samsung is constantly using its competitive advantage to excel in the electronics market. Notably, high research and development (R&D) expenditure are enabling it to compete among technology companies. Design capabilities along with product innovation enable Samsung to produce environmentally friendly products. Samsung is one of the first electronic companies that set up its manufacturing plant in the Asian market due to its growing economy. Setting up manufacturing plants in the Asian market has significantly reduced its supply chain costs.
Market share of Apple and Samsung
Apple defeated Coca-Cola and it has become the world's top brand, and Apple has built stores to make a direct relationship with the customers. Now Apple is the largest company in the world, which has 72,800 employees who are on a full-time job, and 3,300 are temporary workers in the company. Samsung has sold 34 million phones while Apple sold 35.5 million iPhones in the market becoming the top smartphone maker. The marketing and selling strategy of Apple Company, is based on a smaller number of customers who can afford their prices and spend more money on the products of Apple Company. Apple manipulated consumers and influenced them to sign contracts to pay a monthly fee. This resulted in more payments by the customers and consumers and made them pay for their brands, which they provide (Sin and Yazdanifard 2).
Samsung became the second largest company to sell phones in the United States in 2008 and it was competing Motorola. In 2011, Samsung shipped 95 million phones in the market; the increase in the sale of their smartphones is the cheaper prices and latest operating systems and features in their smartphone products. In the same year, Samsung was the company to share 20 percent in the global market and it became the lead among other competitors. While in 2012, sold 40 million phones of Samsung Galaxy S3 (Sin and Yazdanifard 3). Samsung is increasing its consumers and customers in the market, which is a source to earn profit and buy more shares from the consumers to increase their market and compete with other brands like Apple.
The dominance of Apple and Samsung
The mobile phone industry has revolutionized the trends in the ICT sector and among a variety of cell phones, the standard configurations are smartphones. The hardware and software by smartphones have helped the brands to compete in the market and this has helped to dominate among the other competitors (Cecere et al.). To compete in the market, mobile industries have to make and bring changes in their software and their application with online options so that their services attract customers.
To survive and to keep dominance, companies like Apple and Samsung have to be flexible towards the rapid changes in the business environment. If companies do not show flexibility, they would not be able to keep the dominance in the market and their positions may be threatened, which will lose a larger number of customers. There have been many huge changes in the mobile industry; Apple launched iPhone and competed with Nokia's phone and Samsung and later it became a leading company and Samsung adopted the dynamic capabilities because it was the leading company in the mobile industry (Holsapple and Oh 2). With the changes in the business environments, companies have to adapt the trends and bring the latest services to the customers because customers are the targets and they are the sources of profit.
The key factor that helps to gain a thorough understanding of smartphones is the operating systems. Apple and Google’s android is providing the foremost the operating systems and Apple had 20% and Google Android has 60% of share in the smartphone industry. Samsung had multiple handsets and multiple strategies, while Apple has focused on one model. The old samples of Apple had not that many sales in the market and did not attract the customers in the market while cheaper prices for phones were offered to the customers. However, the applications of the iPhone are difficult to relate with varieties and scales in the stores; hence, this is an attraction to quality developers towards the Apple app store.
The smartphones are growing and they are attracting the customers. The shares of Samsung were 21.6 percent, Apple 6.9 percent and Nokia had 199.9 percent in the market. The older leader is the Nokia, which took over the Motorola to reach a top position in the mobile industry during the year of 1998. However, later in 2012, Samsung took the top poll because of the weak financial performances of the Nokia Company that resulted in losses. Samsung took the lead in the mobile industry and became the first leading company and Apple was on the second number. The sale of phones by Apple was lesser during 2012, while Samsung won the patent case in Japan.
Apple and Samsung: A Legal Battle
Apple failed to keep the market balance in comparison with other brands of phones. Apple filed a case in the District Court of the United States, alleging that Samsung has copied the intellectual property of Apple and Samsung copied its seven patents used to interact with the users. Apple also accused Samsung of violating design patents and the District Council of the United States, held Samsung responsible for violating the patents of Apple, which caused one billion loss to the Apple. The legal cases between Apple and Samsung in the United States, South Korea, and the European Union are still pending.
Apple is one of the giant networks, which has attracted the largest number of customers, and it has shown the fastest growth among other industrial brands (Bjelland et al. 4). Apple offered Samsung to get a license for their patens for 30 dollars per smartphone, and this news by revealed by Apple during the case trials. While Android phones can generate a bigger revenue and profit for Apple disclosed. Apple appreciated this but this would have given a temporary advantage. Although Apple has a stronger position in the market and higher revenues, Apple has to answer the questions: the leadership of the company after the death of Steve Jobs. Steve Jobs changed the company to a world-changing company but the expectations from the company are related to technology in the marketplace (Gupta and Prinzinger 219). Apple has to reach new and more customers in the market and it has to train its employees to give timely responses to legal and issues. Apple has to create a market, which is customer-friendly so that it could attract more customers in the market.
While Samsung has to keep gaining the trust of its customers and consumers because it has a larger number of customers and consumers, otherwise they will shift to other brands which provide the quality services in the mobile industry. Losing customers can cause losses in the revenues and profit, and the international market of the brands declines.
Recommendations
Apple and Samsung have been competing with each other in the mobile industry and both compete with other mobile brands and services in the market. However, there have been issues of copying patents by Samsung. Apple has some concerns about the replication of its technologies, designs, and patens, which Samsung has to clear because few courts have charged Samsung as responsible for replicating the services of Apple. Both companies have been leading roles in the market as compared to the other brands like Nokia and Motorola. There are still some areas, which need a focus and both of the companies have to work on them and make strategies accordingly. Apple and Samsung have to make such marketing strategies, which attract more customers in the market, and they offer the customers and consumers a cheaper price. Cheaper prices and innovation in the services attract both customers and customers in the market.
Both companies have to provide secure and reliable services because no customer would like their data to be hacked. Safe services also attract the market segments to avail of the services and use the products, which they offer. However, it not ethical to replicate the services so both companies have to stop replicating each other’s services. As far as accusations are concerned, it is important to be prepared for the external and internal threats and both mobile industries have to be flexible to handle the threats coming from the external market.
Conclusion
Apple and Samsung are the top competitors in the market among other companies and brands. Both have effectively developed the software and new designs to attract people in the market and both companies are managed to control the financial loses on a larger scale. Other companies are in the line of competition, which is adopting new trends and technologies in their services. Nevertheless, Apple and Samsung are in dominance because of their quality services and a larger customer base and other segments in the market utilize their latest products. Other companies are not able to be in a leading role because of their traditional services offered to the market and lack of effectiveness. They have failed to please the customers and they have been following the same styles and technological services. To keep the top leads, both companies have to offer maximum quality services at affordable prices to gain market value and market share.
Works Cited
ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Bjelland, Johannes, et al. “A Social Network Study of the Apple vs. Android Smartphone Battle.” 2012 IEEE/ACM International Conference on Advances in Social Networks Analysis and Mining, IEEE, 2012, pp. 983–87.
Cecere, Grazia, et al. “Innovation and Competition in the Smartphone Industry: Is There a Dominant Design?” Telecommunications Policy, vol. 39, no. 3–4, 2015, pp. 162–75.
Çiçek, MESUT. “Wearable Technologies and Its Future Applications.” International Journal of Electrical, Electronics and Data Communication, vol. 3, no. 4, 2015, pp. 45–50.
Gupta, Atul, and Joe Prinzinger. “Apple, Inc.: Where Is It Going From Here?” Journal of Business Case Studies (Online), vol. 9, no. 3, 2013, p. 215.
Holsapple, Clyde W., and Jae-Young Oh. “Reactive and Proactive Dynamic Capabilities: Using the Knowledge Chain Theory of Competitiveness.” Knowledge Management and Competitive Advantage: Issues and Potential Solutions, IGI Global, 2014, pp. 1–19.
Lee, Sang M. “Samsung CEO Ki Tae Lee on Expanding the Global Market.” Academy of Management Perspectives, vol. 17, no. 2, 2003, pp. 27–29.
Nagpal, Pankaj. "KEY ACTORS IN THE MOBILE PHONE INDUSTRY: THE SMARTPHONE WARS." Academy of Information & Management Sciences Journal, vol. 17, no. 1, 2014.
Riegel, Viviane. “Apple.” The Wiley Blackwell Encyclopedia of Consumption and Consumer Studies, 2015, pp. 1–2.
Simonin, Dimitri. International Strategy: The Strategy of Samsung Group. Working Paper, University of Geneva, 2014.
Sin, Kong Ping, and Rashad Yazdanifard. The Comparison between Two Main Leaders of Cell Phone Industries (Apple and Samsung) versus Blackberry and Nokia, in Terms of Pricing Strategies and Market Demands. 2013.
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