Difference Between Apple And Samsung

1.0 INTRODUCTION

For this assignment, we are going to select and examine two businesses of similar industry and different geographical locations which are Samsung and Apple.

1.1 Description of Company

1.2 Apple

The full name of this company is Apple Inc. It was founded by Steve Jobs and Steve Wozniak in April 1 ,1976. The current main company location is located at Cupertino, CA.

The Apple Inc. has about

1.3 Samsung

The full name of this company is Samsung Electronics. It was founded by Lee Byung Chull in March 1, 1938. The current main company location is located at Suwon, South Korea.

2.0 COMPARATIVE ANALYSIS

Aspect Apple Samsung

2.1 Number of Competitors There are several major competitors which will compete

First of all, in the monopolistic market, there are many firms selling closely related, but not homogeneous products. Each firm acts independently and has a limited share of the market. So, and individual firm has limited control over the market price while large number of firms leads to competition in the market. Despite of large number of sellers, each firm is in position to exercise some degree of monopoly through product differentiation. Product differentiation refers to the products on the basis of brand, size, color, shape and etc. The product of a the firm is close but not perfect a perfect substitute for other firm. The implication of “ Product Differentiation” is that buyers of a product will differentiate between the same products produced by different firms. So, they are willing to pay different prices for the same product produced by different firms. This gives some monopoly power to an individual firm to affect market price of its product. Under monopolistic competition, products are differentiated and these differences are made known to buyers through selling costs. Selling costs is the expenses incurred on marketing, sales promotion and advertisement of the product. This is to persuade the buyers to buy a particular brand of the product in preference to competitor’s brand. Because of this, selling costs constitute a substantial part of the total cost under monopolistic competition. So, under monopoly, selling costs are of small amount as the firm does not face

Apple compares its products specification with its competitors such as Samsung, HTC, Lenovo and etc. By differentiating its product with others, Apple Inc successfully creates high demand of their products especially iPhone with a high price. They focus more on high profit over market shares. Apple makes its product have more highlighted and unique features which varies them from other competitors in the smartphones industries. For example, iPod beats mp3 when it first hits the market because of its high quality and the touch screen feature. This makes iPod’s sales quickly rises and becomes a popular devices in the