The analysis of the strategy adopted by two firms doing similar business in the same industry Electronics industry First of all, electronics industry has many firms; some of them are taking the lead, having the biggest market shares and dominating the others because of their sustainable competitive advantage. Apple and Samsung are very good example in electronics industry. A duopoly is market conditions in which two firms are producing the same kind of product have control over the market. It 's a condition in which two companies own all or nearly all of the market for a given type of product or services. In the recent decade, the technological phenomenon of the smartphone market has proliferated further and further as an essential tool …show more content…
For example, Galaxy can be integrated with Galaxy Note and only one product with all the advantages. Its cost reduction and manipulation of the selling price index according to market variables is a policy applied by Samsung with …show more content…
There are many issues that are disputed between the two companies on patents that each of them accused of stealing them The success of only one product for the company does it mean the company 's success in strengthening its position on competition? The success of the product for a period of time does not mean the success of the company in its entirety, BlackBerry is the latest joke in the world of phones and entertainment, but it does not mean the success of the company in the market because it could not face fierce competition, and already got a breakout BlackBerry service in the telecommunications companies there was a collapse In the sales of BlackBerry and became a piece of scrap until the return of service again, the continued competition in the market is the title of the success of the company Nokia will be subject to this test with the LUMIA handsets at the end of this month, will Nokia succeed in the competition and gain a new share of the global
Web. 17 Nov. 2015. Some of these companies were monopolies. Monopolies were the business that tried to all control over their product so then they could price it at any price they wanted.
Mainly blackberry is very weak at marketing their brand, it spent ($41.3 million) on marketing, 10 times lower than Apple ($400 million) and 8 times lower than Samsung ($334 million). Blackberry has many opportunities, which are possible increase in demand from governments because of their high security and the smart-device market growing fast about 41.7% per year. Blackberry faces many threats that include rapid technological change.
An organization must observe the market place, evaluate consumers in order to gain insight as to customer purchasing patterns, and discover which pricing strategy is the most appropriate option that would enable the company to obtain a significant return on investments. All products have a customized pricing structure that are based on the following factors- consumer demographic, premium, product integration, market share potential, competitiveness, economic variations, value, promotional etc. Pricing Strategy of AT&T AT&T is adequate in this regard. It is positioned to offer competitive pricing to the numerous services it offers. Rollover Minutes, Family utility plan.
The Sherman Anti-Trust Act had many organized competition that led to manipulation of prices. Big businesses were involved with this manipulation. The accusations were that small groups of people would take control over businesses to gain more power by monopolizing prices hence the Sherman Anti-Trust Act came into place. There also were many complications with this act which would cause many arguments about power and finances. There were many things that went wrong like small groups of people had more power than others through there big business, small businesses lost resources, and there was no room for other small businesses to grow.
Market Structure - Oligopoly Oligopoly is a market structure whereby a few number of firms owns a lion’s share in the market. This market structure is similar to monopoly, except that instead of one firm, two or more firms have control in the market. In an oligopoly, there are no upper limits to the number of firms, but the number must be nadir enough that the operations of one firm remarkably influence and affects the others (Investopedia, 2003). The Walt Disney Company is categorized under an oligopoly market structure.
How Sustainable is Apple’s Competitive position Introduction Apple started out simply as a computer company producing Macintosh computers and software, but has since evolved over the years to manufacture other products. It introduced iPods in 2001 for music players, in 2007, it started producing iPhones. Its products are consumer oriented and this has contributed to the success of the company. Apple also views innovation as basis of survival and business development (Yoffie, 2012).
It´s important to remember that disruption is positive for the mass-market and are innovations that make products and services more accessible and affordable, thereby making them available to a much larger population. When we look at the full extent of Xiaomi´s business model, we can clearly see how different and how disruptive it is. How does Xiaomi keep their prices at least 60% lower than their competitors? While Apple need to come up with a new model to maintain their high profits, Xiaomi have found a clever way to reach these profits without overserve the market with smartphones. For Xiaomi to sell high-end smartphones at such cost, Xiaomi keeps their models
Porters Five Forces Analysis: Samsung Electronics Introduction Samsung Electronics focuses in three specific areas; Consumer Electronics, IT & Mobile Communications and Device Solution. Porter’s Five Forces model has been used to analyse Samsung Electronics competitive position within the global market they operate in. By using this model, an evaluation of their current position will highlight which of the five forces are “affecting the intensity of competition in an industry and its profitability level” (Jurevicius, 2013). Nevertheless, when conducting analysis on an international company such as this, studying of market trends is already carried out thoroughly to ensure that they are fully aware of that market, in order to achieve success and maintain within it. With this in mind, it would be considered that Samsung Electronics would have a relatively good competitive advantage against other rival companies.
The framework is designed to identify the opportunities and threats within an industry. The five forces are mainly the threat of new entry, supplier power, buyer power, threat of substitution and lastly, competitive rivalry. Apple portrays a significant role in four major businesses, more specifically, the “communication equipment industry, the music and video industry, the mobile phones industry and the personal computer industry” (UKEssays). In terms of
Normally, consumers have unique needs that are not similar all the times. Therefore, the company must develop products that can address the unique concerns of the consumers. Evidently, Apple Inc. has been successful in the creating variety of products. However, pricing of the Apple Inc. products tend to limit the ability of buyers to purchase the products. While the company might justify the price of the products, setting the prices too high limits the ability of the willing buyer to purchase the
ACHIEVING GLOBAL COMPETITIVE ADVANTAGE OF APPLE INC. Apple Inc. is an American conglomerate company located in one immeasurable loop, Cupertino, California in the middle of the Silicon Valley. (OPPapers, 2012). Apple is motivated on their designing, developing, innovating new products like the personal computers, other related software products, and the electronic products such as MP3 players and iPods. Apple Inc.’s main products are iMac, iPod, iPhone, iPads and its latest advanced product is iWatch, which is on the edge of creating another revolution after iPhone. Apple Inc. has transformed its image from an inventive computer manufacturer to a fully-fledged consumer 's electronic company.
For example, the Nokia N-series is for the segment of students and teenagers. Nokia competes with blackberry through their E-series which offers a range of business phones, targeting the segment of corporate professionals. On the other hand Nokia also provides a range of premium and luxury phones by the name of “Vertu”, which targets the higher social class segment in the market. Positioning:
Once the product is outdated or same product is released in the market, price immediately drops. Additionally, Samsung also uses competitive pricing for the product other than smartphone, for e.g. T.V., refrigerator and other home appliances. CUSTOMER
In Figure 2 based on Hayes and Wheelwright’s model (cited in Salemi 2004) the variety of product-process mixes available to Samsung is extensive, a sample of products are represented. As Samsung has 38 manufacturing facilities that are all interlinked with MES and PLT, providing rapid response to changes, they can adopt a variety of positions, throughout the diagonal of the matrix. The positions will depend on where the product or component is in its life cycle. The other consideration is that Samsung’s position as a supplier of essential components, to competitors, allows it some control over market
Today, almost every person caries a smart phone with them and some can’t survive the day without it. There are many companies and manufacturers who build smart phones like the popular ones such as Htc, Nokia, Samsung, Apple, Huawei, Motorola, Sony and many more, but what makes those companies not alike are the phones they release through the years, but are they that different? To compare, let us take an example of two leading rival companies in the field of smart phones, Samsung and Apple, who newly released their flagship devices, the Samsung Galaxy Note 4 and the Apple iPhone 6 plus. The Samsung Galaxy Note 4 features a 5.7 inch Super Amoled touch screen, a 16 megapixel back facing camera, an octa core processor with 3 gb of Ram and a 3220 mah battery whereas the Apple iphone 6 plus comes with a 5.5 inch retina display touch screen, an 8 megapixel back facing camera, dual core processor with 1 gb of Ram and a 2915 mah