1. COMPANY BACKGROUND
The strategy that Apple has been using has been considered a non-cooperative strategy. Steve Jobs one of the principle founders of the Apple Inc never wanted to share the software he used in his company with other firms. He wanted a total exclusion of the company’s hardware and software tool. The strategy he used (differentiation business strategy) give many businesses a competitive advantage because their main focus is to satisfy their customers in a method that no other competitor can meet. It allows them to have higher prices for their products as compared to their competitors. Apple came up with a differentiation model that did not work for the company (Marketline, 2009). Richard Lynch argued that the company’s model of noncooperation was no a success in its initial launch because of the disagreements between Steve Jobs and the directors at Apple. The leaders wanted the company to apply the cost leadership model that Michael Dell the founder of the Dell personal computer used. Jobs did not want to design low-cost computers, and this made him be forced out of the company. “Promoting innovation is a huge gain for firms although the rate of failure of innovation new products is very high.” Economies of scale play a significant role in the top companies in the mobile industry. One principle cost advantage associated with this industry is patents which are very frequent in the mobile and smart-phone industry. All top companies have various patents continuing to invest more in intellectual property so as to remain competitive. Apple is a good example of a firm that cost advantages via patent holding. The company has filed lawsuits successfully against HTC for the infringement of twenty Apple patents that are similar to iPhone’s architecture, user interface and hardware (Dowling, 2010). Steve Jobs, the former CEO of Apple was once quoted saying “although competition is healthy, competitors should design their technology but not stealing Apple’s (Dowling, 2010). The issues of patents increase the barriers to joining the APPLE INC AND SAMSUNG 8 mobile industry and are the secret technologies behind mobile phone. It makes the business both attractive and profitable, but the hindrances to new entry are huge all over (Foxtrot, 2009). Hardware differentiation has been playing a negative role in the value of cell phones and towards the designation of smartphones. A lot of emphases have been put on the differentiation of applications, content services and Operating Systems. The application stores are very familiar with the Apple products. The primary strategy of this request is to compete for developers through making money from its popularity to achieve the competitive advantage in services and content (My News Desk, 2010). Producers have the mandate to their software packages and platforms, increasing the barrier for entry (Foxtrot, 2009). Recently, Apple Inc has started making processors for its devices branded as A4. The Apple’s processor boasts of a superfast speed of 1GHZ, 10 hours battery life and has already been featured in the latest iPhone 4 (Miller, 2010). The most valuable resources for Samsung are the determination of its top management and the high level of expertise of their employees. As we had earlier discussed, Samsung brags of its employees and their significant contribution to the company. The company’s well-trained and experienced employees make use of the assets and resources they are given effectively and efficiently, hence a positive ROA. The company has also established an educational system for the whole company that covers all aspects of the environment, facilities and products. The endless determination of the company’s management has been a critical factor behind the success of the enterprise. Collaboration, excellent, and creativity are the hallmarks of management and leadership at Samsung. The management has a key goal of attracting the world’s most talented individuals, and continuously maintaining the company’s culture of supporting them. The management practices all this with the idea of bringing innovative ideas and technology that APPLE INC AND SAMSUNG 9 advances the company’s strategy of developing the newest electronics that improves the lives of their customers. Samsung uses various integrated strategies to improve the quality of their product and customer satisfaction. One of the primary strategies used has been able to provide a cutting edge technology, great innovations, and excellent product designs. Samsung has always been focusing on the continuous improvements of smart phones. They are also striving to become the key smart-phone marketer, establishing, and maintaining a credible differentiation advantage over its competitors like Apple (Marketline, 2009). The company’s patent applications have been in the rise in the recent past (wireless communication networks). Samsung has filed more than 1,150 cases of the patent application in the field of wireless networks over the last ten years. The company’s semiconductor technology has been the primary business for the last 5years. Vertical integration determines the company controls and the end product as well as its parts. For instance, Apple Inc has championed a vertical strategy which features and integrated software and hardware approach. For example, the iPad and iPhone have their software and hardware designed by Apple, which also designed the processes for the same devices. This feature made Apple set the pace and controls the development of mobile computing. The feature or integration involves various software and hardware skill tests and competencies in departments as manufacturing, supply and procurement chains. Samsung a giant technological conglomerate has attracted a lot of customers by manufacturing all their products from LCD panels to processers, smartphones and televisions. Samsung has at least been making something for everyone, whereas Apple Inc has been focusing on the few products that they can do very well. APPLE INC AND SAMSUNG 10 Apple Inc has been able to find a way of balancing vertical integration with an outsourcing strategy. For example, the Apple Company has been focusing on the design and integration. It has deployed a hybrid strategy, where it has full control over its products and the supply chain management but uses subcontractors in many places. Currently, the corporate level models have been implemented by both Samsung and Apple companies for their overall success and achievement of competitive advantages in the market over their competitors. For instance, Apple, with the help of horizontal integration has been able to satisfy its employees adequately since this has helped them in providing autonomy and freedom. On the hand, the horizontal integration applied by Samsung has been the key to greater control over costs as a better economy of scale. With the aid of strategic outsourcing, costs like administrative, operational, and other expenses are significantly reduced for both firms. Due to this, a lot of strategic benefits are achieved by both companies especially in their internal markets. The innovation strategies are used by the two companies in their organizational processes as well as their products and services. For instance, the multi-sided business strategy is applied by both companies in an attempt to effectively achieve organizational goals (Segall, 2012) The two companies have worked on implementing several strategies and actions within their organizations in the attempt of avoiding unethical behaviors. They also apply them so as to send real images of themselves in the global market (Schneiders, 2010). Several strategies are used by the two companies in the attempt of discouraging unethical business behavior. A code of ethics describes all what is acceptable within the enterprise and the measures that may be taken if anyone violates them (Katie, 2013).
The group’s overall income climbed by 1.75 percent, in 2017-2018. However, income declined by 5.5 percent in 2018-2019. The explanation for this drop is a significant drop in smartphone sales. In 2018, Samsung’s profit dropped 56% year over year to $5.6 billion. The reason for this is the steep drop in memory chip prices in the first half of the year, as well as the saturation of the smartphone market. As a result, the company’s semiconductor division saw a 71% drop in profit from the same period last year, to $2.87 billion USD. The total revenue was $13.6 billion. In the second half of 2019, Samsung expects to continue to confront market volatility, according to the business. However, the group’s revenue rose
slightly in 2020, increasing by2.78 percent.
2. FINANCIAL ANALYSIS INCLUDING SPREADSHEET RATIOS
The average annual growth rate of total assets over the last three years was 5.10 percent. Samsung has made significant investments in the smartphone market, acquiring LG’s 5G patents, upgrading more panels with diverse designs, expanding the IT product customer base, and improving pricing competitiveness. With a larger customer base and more competitive products, the corporation improves revenue and usage. Samsung will, in particular, try to anticipate demand for future applications such as foldable devices and other IT products. Furthermore, the company invests substantially in televisions and household appliances because this is an electronic area with advantages and lower risk of competing with other companies. These are the factors that have pushed up the total worth of the company’s assets
In 2017-2109, the group’s total liabilities climbed by 47.49 billion won (42,53 million usd), or
5% (2017-2018), and declined by 1.639 billion won (1,4678 million usd), or -1.65% (2018-
2019) . Due to decreased memory chip costs, the group’s income and debt climbed to 12.916 billion (11,65 million usd) +13.2 percent by 2019-2020. Long-term obligations include long- term debt, taxes, and leases for the company. The group’s ability to meet short-term debt in
the long run is harmed by such big borrowing.
Samsung’s equity has expanded to 29.1 percent during the last four years, with a net profit of almost $19 billion. The group’s stock rose by 27%. Samsung’s stock price rose 2.41 percent despite a steep dip in earnings, outperforming the preceding stock index by 1.21
NET INCOME/NET LOSS
Samsung Electronics reported a global net income (attributable to the parent business) of roughly 22 trillion South Korean won (19,7 billion usd) in 2019, down from 44 trillion won (39,4 billion usd) the previous year. As the chip division improved, net income grew by 10% in 2020.
The chart shows the Cash From Operating Activities , Cash From Investing Activities, Cash From Financing Activities of the
corporation (billion KRW)
2017 2018 2019
Cash From Operating Activities Cash From Investing Activities Cash From Financing Activities
During the year 2018-2019, cash from operating activities fluctuated dramatically. Due to the huge decline in memory chip costs, it dropped 211.4 billion won ($18,9 million), as analyzed above. Furthermore, a significant portion of this cash flow is derived through depreciation cash flow (which has increased continuously in recent years). Cash flow from operating activities, on the other hand, has increased to184.7 billion won ($16,5 million) triennially in 2019-2020.
CASH FROM INVESTING ACTIVITIES
Cash flow from investing activities is negative, according to the company’s financial statement. Specifically, the cash from investment activities will be -22.64 percent in 2020. . Negative cash flow from investing activities, on the other hand,represents a considerable amount of money put in the company’s long-term operations,especially given Samsung’s heavy investment in research and development. In addition, the group is very focused on investing in upgrading technology products.
CASH FROM FINANCING ACTIVITIES
Additionally, the group’s financial operations have a poor cash flow. In 2020, this cash flow will be -3.52%.
It has expanded in compared to 2018-2019.
This number shows that the company is repurchasing stock and paying dividends. In addition, the company’s short- and long-term liabilities have a negative impact on cash flow.
202017 2018 2019 2020
Current ratio 2,19 2,53 2,84 2,62
Total asset turnover
0,79 0,72 0,65 0,63
Total debt ratio
0,31 0,29 0,28 0,29
Debt-to-equity 0,46 0,41 0,38 0,41
Return on asset
0,18 0,17 0,08 0,1
Return on equity
0,26 0,25 0,1 0,1
Year Current R Quick
working capital Net
profit % Price
% Debt to
turnover EPS %
2020 1.6 1.6 17,018 24 14.4 0.365 784 21 0.01
2019 2.0 2 20,956 21 20.2 0.434 914 16 0.01
2018 2.7 2.7 20,049 19 31.2 0.364 753 24 0.009
2017 2.5 2.4 20,598 16 15.8 0.670 482 26 0.008
2016 2.4 2.3 12,657 15 43.5 0.64 428 14 0.006
R Net working
earning% Debt to
turnover EPS %
2020 1.6 1.2 23,569,799 8.3 6.9 0.5 12,681,096.5 7.7 77.2
2019 1.5 1.1 18,840,871 10.4 5.0 0.5 10,143,672 8.9 93.1
2018 1.6 1.3 20,865,512 7.4 5.5 0.7 8,052,275 10.5 56.1
2017 1.5 1.1 13,334,515 4.9 7.9 0.7 6,945,668.5 10.3 29.9
2016 1.4 1.0 9,630,102 8.04 4.1 0.7 6,804,563.5 11.1 53
SHORT TERM SOLVENCY
CURENT RATIO AND QUICK RATIO
The current ratio measures a company’s capacity to pay short-term debt that matures within a year. Samsung invests in current assets, primarily electronic equipment. According to the report, due to the requirement to purchase more memory chip sets, the current asset index increased in 2018-2019 and decreased by 0.22 in 2019-2020.
Samsung’s ability to meet short-term debt obligations must be improved.
As overall fixed assets grow, the asset turnover ratio drop.
LONG TERM SOLVENCY
TOTAL DEBT RATIO AND DEBT-TO-EQUITY
The debt-to-equity ratio did not move appreciably overall. This ratio has been on the decline since
2017, falling from 0.46 in 2017 to 0.41 in 2018 before remaining steady. The total debt ratio for
2020 is 0.29, indicating that nearly 29% of assets come from outside sources. It can be observed that, despite being impacted by a number of competitors as well as the present covid epidemic,
Samsung has managed to maintain its equilibrium.
ROA AND ROE
Return on assets (ROA) and return on equity are two metrics used to assess a company’s profitability (ROE). From 2017 to 2020, Samsung’s ROA and ROE decreased precipitously, with the group’s ROA reaching just 0.08 in 2019. This illustrates the organization’s poor operational effectiveness. However, as was already mentioned, the company’s profitability in 2019 was significantly impacted by the falling price of memory chips. The indicator is anticipated to increase once more in 2020, signaling a modest recovery Group.
EPS AND PE
Earnings per share, or EPS, is a measure of a company’s profitability. Samsung’s earnings per share increased from 2017 to 2018, but then decreased from 2018 to 2019. This was mainly attributable to a drop in the group’s net earnings in 2018-2019. As EPS decreaseed, PE( price to earning ratio) was higher and in 2020 the group’s PE index is 19.64. Samsung’s stock price is rising rapidly in the current market, owing to the launch of a new generation of folding smartphone models with US semiconductor manufacturer Nvidia, which has caused analysts to predict that Samsung’s stock price will rise by 50% in the near future. As a result, investors might consider investing in the corporation’s stock, which is highly appealing. This also aids Samsung in increasing profits to some extent.
In addition to Apple, Dell is a rival.
That must not be disregarded. The headquarters of the multinational Japanese company Dell are in Knan, Minato, Tokyo. It is a well-known technological company and one of the biggest producers of consumer and professional electronic devices worldwide.Devices, as well as the biggest video gaming console manufacturer and publisher in the world.
Everyone thinks about Apple when they think of Samsung’s competitors. Apple is a multinational technology corporation based in the United States that specializes in consumer devices, computer software, and internet services. Apple is the world’s most profitable technology business (sales of $274.5 billion in 2020).
The data shown above are for the year 2020.
Samsung’s revenue is smaller than Apple’s, despite the fact that Samsung sells more electronic devices. As a result, Apple’s net income is higher than Samsung’s. Apple makes fewer investments in current assets, resulting in a lower current ratio and less liquidity than Samsung. Samsung, on the other hand, has a lower overall debt ratio than Apple, indicating that the company is less reliant on outside capital and is more likely to grow in the future.
Samsung’s revenue is substantially higher than Dell’s since Samsung’s stock price has risen dramatically in comparison to Dell’s. Samsung’s net income was also higher as a result of this. In truth, while comparing the phones of these two firms, Samsung has improved and evolved considerably stronger than Dell in terms of design and function. Dell also has a lower percentage of liquid assets than Samsung (similar to Apple). Dell has a greater overall debt ratio than Samsung.
Brand messaging is the value proposition that is conveyed to the customers. This is what makes the customers want to buy goods or services from a business due to the unique selling point conveyed by the brand messaging. Brand messaging is therefore key to any organisation as it is the first point of contact between the brand and the customer. This is what customers actively seek so as to make a purchase decision (McKay et al, 2016).
Apple inc anchors its messaging on the difference between its products and the competition and reinforces the fact that its products are premium for a niche customer segment. The messaging is curated to show how Apple inc is also a one stop shop that provides the hardware in terms of the IPhone, Ipad, Macbooks and the software support such as ICloud and the ITunes. The initial brand message by Apple in the 1980s was enabling the world to access computing power by letting the world communicate through the democratization of technology portraying apple as a symbol of free thinking, creative and rebellious attitude which is in line with what the customers want, innovation (Kahney, 2002).The Apple brand therefore show cases innovation by constantly producing new products and new versions to existing products in line with the market needs so as to enhance its market share while also making more sales. The primary message from the brand is therefore constant innovation so as to improve the lives of the users with the sole aim of acquiring the majority market share so as to get market leadership in the technology space.
3.MANAGERIAL ACTIONS RECOMMENDATIONS
Communication channels are the means through which businesses communicate with the customers. This is done through marketing strategies to reach the end user customer which are either below the line marketing activities, through the line marketing activities and above the line marketing activities or such as digital, mainstream media or print.
Apple uses various communication channels to reach its customers with the main one being the product launches and yearly keynote speeches that are broadcasted the world over (Titan Web, 2020).The other ways in which apple communicates to its clientele is through above the line strategies in which Apple inc actively advertises on mainstream media such as television so as to reach its target market. The company also employs digital strategies where it advertises its range of products on its official website (Apple Inc, 2020) as well as reviews from 3rd party technology blogs which help reinforce the brands place as a premium product that is differentiated from the competition. Given that the company operates in the technology space, it also pushes advertisements to its existing devices thereby notifying its customers of new updates or new products in the market place. The company also utilizes social media to communicate with its customers through their official handles and promoted content so as to keep its customers informed as well as driving traffic to its official website as a landing page to encourage sales online. Using other e commerce sites such as Amazon, the company is also able to communicate new products and services by displaying them on these sites so as to encourage purchases as well as create awareness and provide information on new updates or new versions of existing devices. The company also has its various official stores which are supported by distributorships that are located in prime places around the world. Given that they conspicuously display the company logo; the company is able to use these physical stores to communicate their brand message to the customers through personal selling by the sales people (Titan Web, 2020).
The costs involved for Apple will be in regard to the sales and marketing initiatives in which the advertising expenditure will be outlined in detail so as to provide an overview of the key communication channels that the brand will employ so as to reach its targeted audience. The budget will look at the main sources of the sales and marketing expenses which will be the cost centers. The communication channels will ultimately be the cost centres to be used to come up with a measure of their performance over time. Key considerations would be cost leadership where businesses would strive to keep costs down at any one point.
Communication Channel Costs
in $ million
Digital Promoted Tweets 0.5
Facebook Sponsored advertisements 0.5
Above the line communications Super bowl advertisement 10
Yearly Keynote Speech 1
Television advertisements 20
Opening of new Stores New physical stores globally 30
The overall costs will be 62,000,000 for the year with the bulk of expenditure going towards the opening of new physical stores globally. This is because new physical stores are brick and mortar which require sales staff and other supporting departments making this the biggest expenditure on the marketing budget. Digital strategies are the most affordable and most effective given the rates charged by social media sites. Television advertisements on mainstream media are more expensive than the digital strategy.
Key Performance Indicators to Assess Success
According to (Rade et al, 2011) key performance indicators are usually financial and also non-financial which businesses like Apple inc use to monitor and evaluate their success. The overall key performance indicator to assess success of any business entity from a marketing perspective would be the sales revenue to the amount spent on sales and marketing. The key performance indicator from the above marketing budget would be aligned to each and every cost centre and its expected deliverables. For the spend on digital advertisement, the key performance indicator would be the awareness created in the market place as well as the sales from digital platforms such as Amazon and the company’s official website. This is because the main aim of digital advertisements is to create awareness with the secondary aim of directing traffic from the digital advertisement to the company’s home page to enable customers to purchase. Above the line communications such as the Super bowl advertisements which have viewership of an average of 98.3 million viewers according to Forbes (Adgate, 2020).The key performance indicator for above the line advertisements would be the creation of awareness about Apple’s new products and services. The secondary key performance indicator would be the revenue from both offline and online sales that would emanate from the super bowl advert as well as advertising on television. The yearly key note speech by apple is held with an aim of presenting to the audience new products and services that Apple inc may be planning to launch or is launching (Titan Web, 2020).The key performance indicator for this event is the creation of awareness while reinforcing customer purchase decisions and reinforcing Apple as a premium brand. Sales may also result which would be a secondary key performance indicator for the yearly Keynote Speech. New physical stores are primarily established to generate sales through personal selling by the sales people on shop floors. The main key performance indicator for any physical store would be the offline sales revenue it generates with the secondary key performance indicator being brand visibility within the respective market that the store is located.
Projected Revenue and Rationale for Projection
The projection of revenue will be based on the various communication channels that the business has opened up. This will enable Apple inc accurately determine if the various communication channels are generating income and the profit that each cost Centre makes annually so as to determine which communication channel should be enhanced or closed down. Apple inc’s revenue growth year on year was an average of 8% from 2015 to 2019 (Finbox, 2020).From this we can deduce projections in revenue for next 3 years rising at 8% per annum using revenues for year ending June 30th 2020 as the basis which were $273.857 Given the upsurge in the usage of online stores because of Coronavirus (Evelyn, 2020), majority of sales will come from Digital avenues with minority coming from the physical stores.
Communication Channel Revenues
percentage share of revenues Year 1 Year 2 Year 3
Digital 75% 221.82 239.57 258.74
Above the line communications 15% 44.36 47.91 51.75
Opening of new Stores 10% 29.58 31.94 34.50
Total 295.77 319.43 344.98
The liquidity ratios are used to perform analysis of a company or organization to investigate its ability to pay off its current liabilities and long-term liabilities as they become current. This in other words means accessing the ability of that company to convert other available assets into cash that will aid in paying off the liabilities present. Liquidity does not necessarily estimate the amount of cash a certain business or company has but also a qualitative measure of the convenience of the company to raise enough money that would convert assets into cash. This kind of assets that can be converted into cash include the trading securities, inventories, and account receivables. This is relatively simple for most of the companies to turn them into cash and they are all taken to the liquidity calculation of a company.
For instance, where Dell has been having financial difficulties the company starts paying off the company payables at a considerably slow pace, and this will significantly allow it have increased opportunities for borrowing from the either the banks and this will raise the liabilities. Liquidity is estimated by dividing the current assets by the liability assets. The current ratio of Dell Inc. in 2015 was 1.18 while that of HP company was standing at 1.23 (50, 145/43,735)4. The results indicate that in that financial year, HP Company was able to have a higher current ratio compared to Dell. This implies that it can pay off its obligations compared to Dell Company. The higher the current ratio also indicates the higher liquid the company is, implying that HP is more liquid to Dell. It also means that HP would have a short-time financial standing for it to meet its debt obligations to Dell.
The activity ratio is also referred to as the turnover or the efficiency ratio, and it determines a company’s ability to utilize the assets. The assets are used in the generation of the revenues and profits in the company. The information available from the financial reports of the company can be used in the calculation of the activity ratio. The results can be interpreted where a high ratio implies that the company can competitively utilize its assets and vice versa. Dell’s activity ratio in the financial year 2015 was 9.8 while that of HP Company was 8.69 the same year5. Dell represented a higher receivable turnover ratio in the financial year indicating that the company was able to utilize its assets more compared to HP in the similar year. It also implies that the assets could be negatively affecting HP Company.
The debt ratio is used to compare a firm’s total debt to its assets which imply where the company uses its debt to elevate the company’s return on the equity generated when the company gains a lot from the assets. This debt ratio is crucial in the organizations since it provides a quick measure of the amount of debt the company could be standing at from the balance sheet when compared to its assets. The debt ratio id calculated as total liabilities / total assets of the company. It is a representative the performance of the company, it also represents where the company falls in investment since it highlights the total assets and liabilities of the company. In the financial year 2015, the debt ratio of Dell company was estimated to be at 1.04while that of HP lnc. was at 0.896. The data indicates that Dell Inc. had a higher debt ratio compared to HP meaning that the company uses more leverage compared to HP Inc7.
The profitability metrics assess the ability of a company to generate more income rather than accumulate more expenses that may be incurred during the performance. Profitability ratios may either be related to the sales being made o from the investments done in a period. Nevertheless, all these profitability ratios are a representative of a company’s investment. They include the returns on equity (ROE) or the returns on assets (ROA). The profitability ratio of Dell at 2015 was 19.9% which indicates a 3.1% fall from the previous financial year, 2014 from a profitability ratio of 23%. When compared to the HP Company, the profitability ratio at 2015
was at 20.66% representing both ROE and ROA meaning a decline of 3.01% from the 2014 profitability ratio that was 23.61% 8.
Market ratio refers to a ratio that relates an organization’s share price to its book value and income per every share. This is estimated by dividing the price-earnings ratio by the book ratio.provides an economic status of the company’s trading compared to the wider marketplace. This helped in understanding whether the company is overvalued or undervalued in afair way in the market. The market ratio of Dell Company in 2015 was estimated to be at $114.06 lower than that of HP company.
Summary and conclusion
Dell Company represents a company that has undergone numerous transformations to perform well in the competitive market. The financial information provided in this case illustrate various parameters used to evaluate its financial capabilities over the past years. This financial analysis aid in understanding the relationship of this company with other competitive companies and realize where they face challenges. The financial analysis has also contributed to understanding the weaknesses that Dell faces from other companies and also from giants in the similar field. Dell has been innovative since foundation, and this has contributed to its successful business operation and extreme growth over the years.
Despite Dell talking about the financial performance, it has been able to showcase its volume growth in potential areas such as the servers, pcs and storage. This made it gain a competitive advantage against its flow competing companies in this field of technology. The company also suffers numerous setbacks in its performance, and this has forced it out of the competitive market due to high operational costs and increased expenses which led to the closure of most of his centers. This forced Michael Dell to strike a deal that saw it become privatized after a leveraged buyout.
Samsung’s income as profit has changed in recent years, according to financial documents (2017-2020). Despite a severe loss in revenue and profit in 2018-2019 due to a drop in memory chip prices, the company has steadied in 2020 and beyond. While the COVID-19 pandemic continues to pose hurdles, Samsung’s revenue has increased significantly as a consequence of company-wide efforts to assure a consistent global supply of products and services. In summary, the Samsung Group is on its road to a stronger development of technology products, despite numerous challenges such as epidemics and competitors, but Samsung’s large age will help it adapt and responds rapidly.
Samsung, a South Korean conglomerate, is a global leader in electronics and telecommunications, with a presence on all seven continents as a supplier of products and services. It has dominated the market with smartphones in the field of mobile phones, but this is also the group’s issue when confronting very powerful competitors, particularly Apple. To compete with such strong opponents, Samsung needs strategies:
– The company should take advantage of identified opportunities, such as strategic collaborations, to increase its competitive position in the international consumer electronics market.
-Developing strategic communication: the existence of the brand demonstrates the company’s level of credibility.
– Because technology is continually evolving, Samsung must adapt in order to remain competitive in the consumer electronics sector. This is especially true for Samsung, which is currently up against some of the most fierce competition.
-Separate itself from such close competition with Apple and focus on lowering prices to compete more directly with other smartphones.
– Improve the corporation’s service quality
– Samsung should invest more in the TV market because TV is one of the areas where Samsung’s quality consistently shines
– In addition, a flexible operating strategy should be developed to quickly adapt to unexpected difficulties, such as Covid-19, which is currently occurring.
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