A REPORT SUBMITTED IN FULFILLMENT OF REQUIREMENT OF
BACHELOR OF BUSINESS ADMINISTRATION
SUMMER PROJECT ON
“COMPARITIVE ANALYSIS APPLE AND SAMSUNG BUSSINESS MODELS”
SUBMITTED BY: FACULTY GUIDE:
VINAYAK MAMGAIN MRS. VIBHA KUSHWAHA MAM
BBA (2018-21) ASSISTANT PROFESSOR MARKETING
A30106418117
AMITY GLOBAL BUSINESS SCHOOL
NOIDA UTTAR PRADESH
CERTIFICATE
This is to certify that Mr. VINAYAK MAMGAIN, student of BBA (2018-21) (Enrollment no.-A30106418117 a student of Amity Global Business School, Noida has carried out the dissertation on “COMPARATIVE ANALYSIS OF APPLE AND SAMSUNG BUSINESS MODEL”
Ms. VIBHA KUSHWAHA
DECLARATION
I do hereby declare that I have completed the Dissertation titled “COMPARATIVE ANALYSIS A MARKETING STRATEGY OF APPLE INC. AND SAMSUNG ELECTRONICS”. The report submitted is my original work carried out under the supervision and guidance of Ms.Vibha Kushwaha in partial fulfilment and requirements of BBA Program at Amity global business school, Noida.
Date: VINAYAK MAMGAIN
(BBA 2018-21)
A30106418117
ACKNOWLEDGEMENT
The target was there and fixed, I was very excited to move towards it with high intensity and keen interest. There were also times when the task seemed to be proving quite difficult and unreachable, but I was keen on going and as the work progressed my determination and will to perform and complete the task grew stronger. I also take this opportunity to than my mentors who had helped me to reach this task and I am indebted to them in one way or another/
I specially express my regards and thanks to MS. Vibha Kushwaha who helped and guided me throughout the process.
And lastly I would like to thanks my family and friends who helped me to make this process smooth and this project a success.
VINAYAK MAMGAIN
TABLE OF CONTENTS
TOPIC NO. | TOPIC DISCUSSED |
1 | Introduction |
2 | Apple products |
3 | Samsung products |
4 | Major Shareholders |
5 | Marketing Strategues |
6 | SWOT analysis |
7 | Limitations of study |
8 | Conclusion |
INTRODUCTION
History of apple:
Apple is a fortune 500 company and one of the biggest companies in the world with its headquarters in Cupertino, California. It designs, develops and sells computer technologies, electronics, software. It is considered one of the biggest companies in the world.
The company sells hardware products which includes iPhone, iPad, iMacs, , portable media player IPods , smartwatches like apple watch, apple tv and apple air pods which are wireless earbuds.
Apple was founded in April 1976. Its founders were namely Steve Jobs, Steve Wozniac and Ronald Wayne. It became Apple INC in 1977 in the month of January
Apple grew tremendously within a year and Steve jobs and Woznick had hired a staff for it. Apple produced new computers with innovative designs in markets and their market advertising was critically acclaimed. But they had a limited market share due to high prices of products and internal power struggles.
Apple launched its 1st personal computer in 1984 which was called Macintosh. Apple gave a television advertisement of $1.5 million during super bowl 18. This event is marked as the masterstroke in world history for apple.
On October 23rd 2004 apple introduced a audio device to the world called IPod. IPod is a portable music player. Since then it has been updated several times and is the leading market player in portable music players.
In January 2007 the most anticipated iPhone was launched by Steve jobs. IPhone was the convergence of iPod and internet based smartphone
To date iPhone is the most profitable and possibly the greatest invention of Apple Inc. It was widely accepted by public despite being on the pricier side because of its user friendliness and unique design
Apple is one of the most highest revenue generating companies in the world which is mainly because of its huge sales of iPhone, iMacs, iPod around the world due to the most loyal customer base it has gained in the last 4 and a half decades of its existence.
History of Samsung:
The history of samsung starts when they were founded in 1938.
Lee Byung Chul was the founder of Samsung. For the first three decades of its existence Samsung was engaged in diversified areas including food processing, textiles, insurance, securities, and retail.
However, their electronics department has been started since 1969. The SGH-100 was the first mobile phone launched in Korea in 1988.
In 1988 Samsung entered europe with the launch of SGH-600 It was planed to be simple phone but was targeted towards “high-end customers” and it worked and samsung sold like hot cakes.
Samsung is world’s largest electronic maker and chipmaker 2017.
Samsung is so big that South Korea’s GDP’s 17% is equivalent to Samsung’s revenues .
Samsung’s most selling mobile phones are of samsung galaxy series.
IN 2010 march Samsung officially released Samsung Galaxy S in previous Samsung had launched its first phone which was powered by andriod.
Galaxy S was on the most sophisticated and powerful phones at that time , its processing powers was way ahead of its competitors and even apple that time. However, there were confusion in market over dozen of model launched by Samsung of Galaxy S
In hindsight, it seemed that Samsung’s decision to launch 2 dozens of variants of galaxy s was a failure, but in a long run it worked efficiently for Samsung as it doubled down on its sales for the upcoming Galaxy S2 in 2011.
Samsung overtook apple’s sales in 2011 by its smartphones huge success in markets mainly due to Samsung S2, and after that all eyes were on Samsung S3 which was to be launched in 2012, at that time no one knew that S3 would sell over 70 million units which made it the most selling smartphone at that time and second most selling andriod smartphone ever, only Samsung Galaxy S sold more smartphone units than it. When Galaxy S3 was launched Samsung started to shift its strategy of launching various version of its smartphones in the markets.
With the launch of Samsung S3 finally Samsung was in the race with apple. Although apple had a head start as first iPhone was launched in 2007 which helped it to gain the market of “premium mobile phones” initially but with the launch of Samsung Galaxy S3 the sales of Samsung roofed with that of iPhone5
APPLE PRODUCTS:
iPhone
IPhone is a smartphone which is designed by Apple INC. It is a touchscreen device which is also marketed and sold by Apple.
It is one of the most interesting inventions in the modern age of digitalization. IPhones operates on IOS operating systems. The first Apple IPhone ever to release was IPhone 1 which was released in 2007 June, many IPhones based on the same platform had been released since then
The user experience of iPhone revolves around the touch screen and a on screen keyboard in the device to type by touching on screen . The iPhone has Wi-Fi facility and it can connect to networks both celluar and cdma IPhone can be use to make calls ,emails, surf the internet browser , sending and receiving texted messages , perform both complex mathematical and scientific calculations etc. Shooting video with a phone also came with the iPhone 3. Other functions, such as video games, r, and social networking, was also enabled by downloading mobile apps through apple’s own online virtual store called Apple store . Apple’s app store is very diverse and boasts some unique and overwhelming variety, till 2017 it boasts of a more than 2.2 million apps .
Apple until now has released thirteen versions of IPhones which are powered by their respective versions of IOS softwares The first IPhone that was released was a general GSM phone. But it established design rules for Apple, as to where to put some buttons on a phone and a certain screen size. Then the IPhone introduced 3g services to its users via its phones. As the technology evolved higher definition cameras with higher resolutions and front fa cing camera were introduced in the IPhones .
iPad
IPad is a device which falls in the category of tablets. It has been designed by Apple INC. and it works on their in house IOS operating system. The first iPad got released on April 3, 2010 by Apple Inc., the most recent iPads are the seventh-generation iPad, which were released on September 25, 2019; the fifth-generation iPad mini, was released on March 18, 2019; and the third-generation iPad Air, has been released on March 18, 2019; and the second-generation 11-inch and fourth-generation 12.9-inch iPad Pro,were released on March 25, 2020.
As of May 2017, Apple has sold more than 360 million iPads,[6] although sales of iPads peaked in 2013. It is the still the most popular tablet by sales as of second quarter of 2018.
While the iPad has been mostly used by general consumers in large but, it also has been taken up by business users. Within 3 months or so of its release, the iPad managed to penetrate 50% of Fortune 100 companies. Some companies are adopting iPads in their offices by distributing it among its employees or making sure that it is available to employees. IPad is vastly used in workplaces like in medical fields where records can be accessed of patients, company managers keeping a tab of their employees progress .The iPad has many uses in the classroom too, and has been praised as one of the most valuable tools in homeschooling. Soon after the iPad was released, it was stated that 81% of the top book apps were for children. The iPad has also been a revolutionary tool to help children with autism to learn how to communicate and socialize more easily.
In the healthcare field, iPads and iPhones have been used to help hospitals to manage their well-oiled supply chains. For example, Novation, a healthcare contracting services company, developed VHA Price Lynx (based on the mobile application platform of business intelligence software vendor MicroStrategy), a business intelligence app to help health care organizations manage its purchasing procedures more efficiently and save money for hospitals
iPOD
The iPod is a assembly line of portable music and media players which can also be referred as pocket computers which are developed, designed and marketed by Apple Inc. The first version of the iPod was released on October 23, 2001, about 8 and a half months after the Macintosh version of iTunes was released. Now, until May 28, 2019, only the iPod Touch 7th generation remains in production.
Like other digital and portable music players, some versions of the iPod can serve as external data storage devices.
SAMSUNG PRODUCTS:
Samsung Galaxy
Samsung galaxy is aproduct line of mobile computers or mobile computing devices which is developed, designed, manufactured and marketed by Samsung Electronics. The product line includes the Samsung Galaxy series smartphones, the Samsung Galaxy Tab of tablets, the Samsung Galaxy Note series of tablets and tablets with the added functionality of a stylus called phablets, foldable Samsung Galaxy Z series, and smartwatches including the first of the version of Samsung Galaxy Gear, with later versions dropped the the Galaxy branding, until the release of the Samsung Galaxy Watch in 2018.
Samsung Galaxy devices are based and run on Android operating system produced by Google, which usually arrives with a custom user interface called OneUI. However, the Galaxy TabPro S is the first galaxy marketed Windows 10 device that was announced in CES 2016. The Galaxy watch is the one of the very first galaxy marketed hardware since the later release of smartwatches. In 2019 April Samsung announced that is will postpone the release of its folded smartphone called , the Samsung Galaxy Fold.
Samsung Watch
The Samsung galaxy watch is been developed and marketed by Samsung electronics; it is a smart watch. It was announced on 9 August 2018. The Galaxy Watch has been a huge hit since its launch and has been widely accepted among the various sections of markets. It can perform many of the phone like functions like, calling, picking up a call, listening music, messaging and OfCourse for viewing current time.
It uses mobile network to perform all these functions. Galaxy Watch Active2 is the latest model which is been release in two forms I.e. Bluetooth and LTE. With Lte a user can do all the things without a smartphone being in the vicinity
:
MAJOR SHAREHOLDERS IN APPLE INC.
1.Arthur Levinson, Chairman of the Board
The single largest shareholder in Apple INC is Arthur Levinson who also happens to be the chairman of the board of apple as of august the 3rd ,2018. In addition to sitting on Apple's board of directors since 2000, Levinson serves on the board of the Broad Institute, a biomedical research center affiliated with MIT and Harvard. Levinson's current work at Calico focuses on combating aging and related illnesses. Alphabet launched the company in 2013.
2. Tim Cook
He is the second largest shareholder in the apple INC. He is also the CEO of the company as of September 2020.
. Before joining Apple in 1998, Cook worked for computer distributor Compaq as the company's Vice President for Corporate Materials.
Cook holds a bachelor's degree from Auburn University and an MBA from Duke University.
3.Craig Federighi, Senior VP of Software Engineering
Craig Federighi is Apple's senior vice president of software engineering and the company's third-largest shareholder with 412,571 shares as of Aug. 9, 2018. In this capacity, Federighi oversees the development of iOS, OS X, and Apple's common operating system with a team of engineers. Federighi and his team of engineers are responsible for delivering the software that powers Apple's product line, from user interface to application programming. The senior vice president formerly worked under Steve Jobs at NeXT, where he 2
4.Jeffrey Williams, Chief Operating Officer
Jeff Williams is Apple's chief operating officer and fourth-largest individual shareholder with 108,085 shares of the company as of Oct. 3, 2018. Williams first joined Apple in 1998 as the company's head of worldwide procurement, and six years later he was named the vice president of operations. In 2007, Williams worked on the team that helped launch the iPhone into the global mobile phone market, and he has led worldwide operations for iPod and iPhone sales since that time.
Williams holds a bachelor's degree in mechanical engineering from North Carolina State University and an MBA from Duke University.
5.Bruce Sewell, Senior VP of Legal and Global Security
Bruce Sewell is Apple's former General Counsel, former Senior Vice President of Legal and Global Security, and current fourth-largest shareholder with 108,085 shares as of Oct. 3, 2018. At Apple, Sewell was responsible for overseeing global security and privacy, intellectual property, corporate governance, and other legal matters. Sewell joined Apple from Intel Corporation, where he led the company's legal, corporate affairs, corporate social responsibility programs. Sewell announced his retirement from Apple in October 2017 and joined the non-profit Village Enterprise in April 2018.
MAJOR SHAREHOLDERS IN SAMSUNG
Samsung electronics is not owned by hedge funds.
The largest shareholder in Samsung Electronics is National pension service with 9.9% shares. The second largest shareholder is Samsung life insurance Ltd. With 8.1%
and the 3rd largest shareholder is Blackrock, INC with 4.8%.
50% of total shares of Samsung are owned by top 25 shareholders of the company.
Where general public ownership is 37% and public company owns 14% shares.
MISSION AND VISION OF APPLE INC.
Apple's mission is to bring the best user experience for its users through innovative hardware, softwares and services.
Vision of Apple inc.
Focus on key projects
Excellence as the standard
Simplicity in place of complexity
Control the primary technologies behind Apple’s products
Making great products
Focusing on innovation
This vision of the company remains constant come what may so.
These are the principles by which company swear by and they never changes.
MISSION AND VISION OF SAMSUNG
Samsung's mission is to use their high tech technology and services to create products which in turn will uplift the society and contribute better to global society.
Samsung's main focused are on:
Human development and technological resources
Providing superior products and services
Contributing globally to advancement of societies.
Vision of samsung in 2020 is "inspire the world, Create the future "
Samsung works on its motto by providing top notch products and services in electronic markets semiconductor and computer technologies industries.
OBJECTIVES OF STUDY
1
To study the comparison between marketing strategies of Apple and Samsung electronics
2.
To iiidetermine iiithe iiistandard iiiof iiisales iii& iiiservices iii& iiipublic iiirelation
RESEARCH METHODOLOGY
The methodology used in conducting the research work on comparative analysis of marketing strategies between apple and samsung electronics analysis involved the following steps:
1.
Defining the problem and deciding research objectives
Comparative analysis of marketing strategies of two companies which results in the sales of the companies
2.
iii2.Develop iiithe iiiResearch iiiplane:
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The iiisources iiifrom iiiwhich iiisecondary iiidata iiiwas iiicollected:
SCOPE OF STUDY
Scope of study in this report is the market strategies used by companies which are rival to each other and how they counter or put forward their narratives for the sale of their products.
Despite the fierce competition faced by them in the market how they not only survive but also flourish by keeping their revenues and profits high and keep on upgrading their technologies and bringing in newer products into markets.
Through this project o would come to know that how rival companies survive in markets despite the cut throat competition
I would also get an idea of people's choices when choosing a product.
MARKETING STRATEGIES OF APPLE
Apple always know where to and how to advertise its products.
Apple relies on two strategies which are completely distinct.
Or celebrities, so that people could connect and see their products
Often.
2. BY AVOIDING PRICE WARS AND CREATING ITS OWN
PROPOSITION
Many businesses feel they have to compete on prices
But in fact it can be counter productive for your business
Because the mainstay of any marketing strategy should be you get what
You pay for. As it requires quality for content marketing and it will be
Difficult to sell get product at cheap rates .
Apple focuses on their UVP (unique value proposition), which is a great l design that works with smaller packaging. It’s a type of marketing stunt by apple which meets a lot of eyes through the social media which gives a huge advantage to apple .
3. KEEPING YOUR MARKETING AND PRODUCTS SIMPLE
Apple know this way better rha anyone that te technology
Gets people overwhelmed and overwhelm creates confusion
Apple eliminates that confusion by eliminating technical and
Industry terms and instead, they use simple and direct terms
For their customers which provide customers with high tech of
Systems without high tech terms. So apple keep it's simple
in their marketing and their customers reward them with their loyalties
They also do not try to overwhelm customers with overwhelming choices.
Apple products are focused towards making your life simple rather
Than giving you overwhelming choices and confusing you in the process.
They keep their products sleek and with minimal colour schemes.
4. APPLE KNOWS THIER TARGET AUDIENCE AND THEY
COMMUNICATE WITH THEM IN THEIR LANGUAGE
When you open a apple's website for buying your products it does not
Bombard you with technical terms like gigabytes or Hertz rather it
showcase detailed beautiful pictures and font telling customers about
the benefits of the products.
Apple has learned a art of communcating with its loyal customer base
So for example an ipod is simply not a storage device or music player
But it let's you "stir hours of music in your pockets".
5. DESIGN AND DEVELOP A BETTER CUSTOMER EXPERIENCE
The "unboxing" of electronics product was a initiative started by apple
and apple cust8mers often post this unboxing videos on social media
websites. We wonder why?
As now apple has managed to create an experience for its user that is just not limited to their experiences in retails.. They don't need now to be a part of their marketing as it is been done by their own target audience.
Their content marketing is being driven by Their loyal customer base.
And this loyalty is earned by the apple experience provide by the teach giant
It includes every aspects from purchasing the product, comparing the different products , trying out them in apple stores or actually buying it
And all these elements of experience are designed and created and they don not happen by chance.
Like apple products installation is very easy. It's so user friendly that apple buyers really have to do bare minimum and voila their product is ready to be used .
Apple spends thousands of hours and tons of money on designing and refining their products design .
Each step of customer's knowing about the product to buying it is carefully crafted and thinker upon backstage.
6. APPLE TRIES TO AIM AT THEIR CISTOMERS EMOTIONS.
Usually apple ads which showcases iPads and iphone doesn't
show its features whereas it shows people enjoying with their families and
friends while working. These emotional ads hits the bullseye where it
matters not in the pockets of customer but in their hearts.
Emotional connections are the key to successful marketing
A study by Dr jonah Berger's showed that content which aroused high
Emotions in people makes more sense to people as compared to rather unemotional content.
. Moreover positive content is more likely to fo viral
than negative content.
7. BUILD A COMMUNITY OF LOYAL CUSTOMERS
Over the years apple has created loyal fan base around the world.
Apple product launch are where fans of apple products queue up to
buy its product .
Apple has created a brand and culture which is cool, friendly and fun.
They have created a marketing strategy that involves customers wanting
to belong to the community.
Apple's think different campaign voice over narration was “Here’s to the crazy ones. The misfits. The rebels. The troublemakers.”
This is a very relatable text which we often relates to many times in our lifetime. Apple capitalizes on universality of self perception which makes it users believe that apple understands them and is like them.
MARKETING STRATEGIES OF SAMSUNG.
Samsung is recognized as one of the greatest smartphones manufactures
due to its reliable and innovative products.
The company manufactures phones according to our customers dynamic
Requirements. Its smartphones have become a symbol of quality.
When one thinks of buying an android smartphone samsung come to the
mind of most of the people.
Samsung is not only known for its products but also its customer services.
Samsung delivers in various field from smartphone to defence to home
Appliances. It also has tie ups with various small companies which benefit
from Samsung's popularity.
Marketing strategy of Samsung has different approaches so customers attract
towards the brand and buy it.
Samsung uses direct and indirect methods to advertise their products
Direct method for example samsung advertising their products through
Televisions, internet etc.
Indirect methods for example samsung ket consumer use their products
and let customers decide whether their product ia good.
Therefore the marketing strategy of company is strong.
Samsung has made Samsung galaxy product for its urban audience
Whereas Samsung guru product is based on the requirements on rural
India.
So, by doing this Samsung has something for everyone in the market.
Which has added different products for all buffet bracket resulting
Into making samsung the largest market player.
Samsung offers smartphones for the youth under the age group of 16-29
Middle class can afford to have a smartphone with latest features
The Samsung guru smartphone is being offered to the lower end section of society, who cannot afford pricey smartphones.
It features 3g network so that users can interact with world via internet.
Samsung also tie ups with local IT industry giants to provide enterprise phones to the corporate world like a S7 or S9 which can be afforded by them .The company offers strong security features so that the daya of
proffesionals is safe and available at all times
This shows that Samsung really cares for all section of its
Customers and offers mobile to its customers according to its
needs, requirement and most importantly budget
4 . PSYCHOLOGICAL
Samsung caters to those people as well who buy a smartphone
according to their lifestyles. The company offers smartphones in
pink colors especially for women buyers.
Samsung offer smartphones in the range of 10,000-15,000
It also have a mid range of of 20k to 30k
And it also offers high end range smartphones for potential buyers.
Customers have a liberty to choose a smartphone according to their
lifestyle and budget.
5. TARGETING
After segmenting the market on the basis of classes and budge
Now samsung starts to identify its targets and choose it.
Company targets various customers and some of them ten to be
young customers who adopt fashion and latest technology quickly,
Executives, business owners, students can also be the target audience.
Moreover company offers discounts through its promotions.
This customer targeting of Samsung nit only attracts more customers
but also creates a loyal customer base which strengthens the company's
position in the market.
6 POSITIONING
Positioning means the customer's awareness about the particular brand
and its uniqueness.
For example: Samsung's Galaxy series is a world renowned series of
Smartphones which can be associated with Samsung and has a uniqueness
which us unparalleled.
Samsung has adopted different strategies to position itself into smartphone
market:
provides quality products for its loyal customers.
SWOT ANALYSIS OF APPLE INC.
STRENGHTS:
WEAKNESSES:
OPPORTUNITIES:
THREATS
SWOT ANLYSIS OF SAMSUNG
It identifies all key strenghts, weaknesses , opportunities and threats that affects the company the most.
STRENGTHS
one if the strongest technology companies in the world.
Samsung operates 34 research centers around the world and has invested $14.8 billion for R&d in 2017 which is the second highest.
Samsung is know to be the one if the most innovative companies in the world and urs products designated are the top notch amongst most of the technological companies.
Weaknesses
THREATS
OPPORTUNITIES:
will increase market for consumer electronics.
REPORTING AND CONCLUSION
This is the most important part of work undertaken.
After collection and analysis of data, it was recorded in the form as prescribed.iii.The iimajor iipart iiof iithe iireport iiis iithe iifindings iialso iiinclude ii iicharts iiand iidiagrams ii iietc,and iithe iireport iialso iimentions iithe iilimitations iiof iithe iiproject iiundertaken ii. iiThe iiconclusions iihave iibeen iidrawn iiout iiof iithe iifinding iiand iivarious iirecommendation ii iihave iibeen iigiven iiin iithe iiend iiof iithe iireport
LIMITATIONS OF THE STUDY
CONCLUSION
I conclude that there is no love lost between apple and Samsung, they are in an all out battle which started in 2010 when samsung released a galaxy series smartphone that rivals the iphone.
If you ask me which company is bigger, As a whole company/group the two are not even comparable. However in term of consumer electronics, Apple is bigger.
Apple’s net income is more than that of Samsung Group, meaning Apple is earning more money each year than the whole Samsung Group. However Samsung has much more revenue than Apple. If Samsung has much more revenue than Apple, then why Apple’s net income is larger than that of Samsung Group?
Because Samsung spends more money to expend itself than Apple does. Samsung is trying to become leader in every possible branch of business. Of course it is far from accomplishing that, but in some branches they are considered one of the best companies (as you might be familiar with some of them).
But Samsung as a company is not only about smartphones or electronics samsung has many businesses like
Samsung electronics
Samsung semiconductor
Samsung engineering
Samsung life insurance
But if you compare the electronics market then yes apple is the bigger company tha samsung because or has way much worth and earns more profits than Samsung's does. This is basically due to their interactive yet simple marketing styles which are able to penetrate customer's pockets more often and easily than Samsung electronics.