The presence of the numerous electronic suppliers in the electronic industry is a big threat to the existence of Apple Inc. These suppliers exert their presence in the market by aggressively marketing or supplying the products of rival companies. Apple Inc. strategy to beating powerful suppliers borders on the characteristic of its business model (Noren 2013). The fits into the distribution channel as a wholesaler. In this model, the company sells its products or distributes its products to retailers.
Marketing plan Is important to the company because it is mainly focused on success, and that lack of a marketing plan will lose the company a lot of money Samsung is characterized by a variety of production areas where it applied its Samsung has pursued multiple ways of selling and marketing its electronic products because it aspires to excellence and development in technology and continues to sell according to customer taste. First, (Understanding the Market) Samsung went to the electronic field when it noticed that the market needed electronic devices. Secondly, I looked at (selling) Samsung realized what the market needs and the quality of its service to consumers. Now it has 25 production centers and 59 sales branches. Thirdly, (understanding the customer's need) which clarifies the meaning of "digital convergence", which is linked to important devices in human life, such as home appliances, smart phones and office equipment.
Political Political stability in North American countries especially helps the advanced mobile phone industry to prosper. The genuine test for Blackberry has been in nations like China, India and UAE where the nations have raised worries over the security include the blackberry gives to clients as it turns out to be difficult to screen for the administration powers (Bbc.co.uk, 2016). European countries want products that follows cleanliness and security principle but Blackberry products use lethal substance for manufacturing. (ZDNet, 2016) b. Economic Financial downturn has had an effect as individuals are not willing to spend on an item unless the cost is correct and it offers the guaranteed values.
The leaders of Samsung had been blindfolded by its benefits , the merger helped Samsung increase its power, share value on stock and more advantage compared to other competitors. Especially, the actions were supposed to serve mainly for the personal reason of Samsung vice president - Mr. Lee.
One of the most important caricaturists of Samsung products in my opinion is that the consumer can personalize the product in order to achieve their needs, in the other hand, Apple a competitor is “one-to-all product”. ALTERNATIVE STRATEGIES Samsung can have some strategic alliances with local partners in order to understand the regional tastes and after they have understand the know-how of the region, thy might be able to buy the regional company in order to take advantage of the EOS he can achieve by themselves. Samsung might be interested in have different agencies if the distance between cultures are big, and not e only with one agency, like he is doing now, this in order to achieve a more deep understanding of the market and develop products that fit the market. One of the most important products from Sony, the principal competitor, are the videogames and consoles, such as FIFA and Play station. Samsung is not investing or have a product in this category, it might be an important and interest invest they can do in order to compete and take a part of the share of ths product
Companies use this strategy has been to reduce the size, to focus on narrow market segments, and to clearly define all the resources and efforts, and have the benefit of a high degree of customer loyalty. For example, Lenovo smartphone is focused their customers’ target who wants to purchase cheaper smartphone. Porter also mentions that the company can only choose one of these company generic strategies for achieving a long-term success. Otherwise, we have tried everything achieved without, thereby creating a chaotic image and remaining “stuck in the middle”, and not to create a real competitive advantage. 2.4 Core
South Korean government will try providing subsidy to Samsung product to keep GDP. Apple and Samsung companies they are very competitive to each other, if one of the companies is in hard situation, it makes benefit to the anther company. This concept is called cross elasticity of demand. This term can be defined as “a calculation of the amount of demand for a product changes when there is change in price of another product”. .
Samsung Company is a conglomerate, a manufacturer, and the world’s largest chip-maker. It makes much more cost advantage components, its go into smartphones in term of it to produce and when. Besides that, it is Apple’s biggest parts supplier and its fiercest competitor in the smartphone maker. Although Apple declared war over intellectual property and won, Samsung won’t likely cut its supplier partnership with rival. However, Apple’s company also is the most powerful and drive loyalty through its unique ecosystem and proprietary operating software among customers.
Q1a. MARKET STRUCTURE OF APPLE INC Apple Inc. operates different types of market structure in terms of their different products. In the smart phone business, they happen to be one of the major players with their different models of the “iphone” which makes them operate in an oligopolistic market. Oligopoly arises when there is an imperfect competition in which there are just few firms producing similar products. As a result of high competition, monopolies, interdependence among firms there are just a few big players having the market power and making it very difficult for new firms to penetrate the market with their products.
Therefore, it is very difficult to new entries to reduce their production cost in order to complete what Samsung have exited before. However, it might be different in other countries’ market. Of course, if we focus in Korea market, whatever that Samsung has existed it products before, the lower chance of new competitors will emerge in the market. However, if we look closely into the global strategy, Samsung is still been hard to be either success or