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In The News Essay

629 words - 3 pages

Business Policy
3/15/14
The article that I chose to talk about is about Apple and Samsung; they have both been competing to be number one in the market for phones, TVs, and now watches and new advances in technology. Apple has a huge a range of customers who are very loyal to them and that are what had made them so successful in expanding their business. Samsung is also very successful because of the advances that they have been making with Android and the new Tizen strategy. Tizen is a new form of technology that allows manufactures to turn phones in watches and other everyday items. Tizen and Android are very similar and most people cannot tell them apart if the systems are switched. Apple has a huge disadvantage with Samsung because they do not move as fast as Samsung. Samsung’s disadvantage is that China can easily make knockoffs of the brand and sell them for as low as $35 compared to $700.
* Samsung’s marketing ...view middle of the document...


* Samsung tripled its share in the same time period as Apple.
* SWOT analysis for Apple: Strength Apple is a leading innovator in mobile device technology. Apple has been chosen as the most innovative business in the world for the 3rd time in 2012. Company’s core competency of producing innovative products is the strength the company builds upon and is able to bring the most innovative products to the market.
Weakness: High price. Apple’s products cost much more than its competitors devices. Some critics argue that the price is not justified. When there’s such a fierce competition, Apple products price becomes a weakness because consumers can easily opt for similar quality but lower price products.
Opportunities: High demand of iPad mini and iPhone 5. IPad mini sales will increase Apple’s market share in the tablet market and, will strengthen firm’s competitive advantage
Threats: Rapid technological change. One of the most severe threats Apple and the other tech companies are facing is rapid technological change. Companies are under the pressure to release new products faster and faster. The one that cannot keep up with the competition soon fails.
* Swot analysis for Samsung: Strengths Focus on environment. Samsung focuses on producing environment friendly products that are free from PVC and BFRs (currently only MP3 and mobile phones). It also develops various recycling programs that are awarded for their success. Thus, Samsung’s focus on environment gives it an edge over its competitors in the eyes of its customers.
Weakness: Patent infringement. Samsung is infringing Apple’s and some other firms’ patents, thus, damaging its reputation and having to pay a huge amount of money in damages.
Opportunities: Growing mobile advertising industry. The company could develop advertising platform for its mobile devices and significantly benefit from this lucrative market.
Threats: Saturated smartphone markets in developed countries. Smartphones market in the developed economies is saturated and the sales will not be growing at a high rate

Article: http://www.businessinsider.com/apple-and-samsungs-new-tizen-strategy-2014-3

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