Group Report

Comparative Analysis between Brands of Apple & Samsung

Prepared for

Mr. Mustaque Ahmed

Course Instructor Brand Strategy (M602)

Prepared by

GROUP 4: THE PURPLE MARKETIERS

EMBA
NAME ID
BATCH
MD ASHIF HOSSAIN SHUVO ZR1703001
TONMOY GHOSH ZR1703003
NURUL AFSAR CHOWDHURY ZR1703012
29
UDOY KISHOR SAHA ZR1703013
MOHAMMED AKHTAB UL HUDA ZR1703016
EKRAM AHMED BHUYAN ZR1703035
MAKSUM-UL-HOSSAIN ZR1603010
TANJINA SHARMEEN RQ1603020 26
FAISAL IBNE SHAHJAT ZR1603036
TAZREEN TAMANNA RQ1602005
25
NAZNIN NAHAR RQ1602024

Institute of Business Administration, University of Dhaka

January 11, 2019

Comparative Brand Study and Analysis between Two Global Tech Giants:
APPLE INC VERSUS SAMSUNG

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EXECUTIVE SUMMARY

The purpose of the report is to evaluate the brand creation, building, sustainability of two
global tech giants Apple INC and Samsung that led the companies in the position of top 10
global brand as per inter brand global ranking 2018. We have conducted the study based on
secondary data available on the internet.

We have conducted the comparative study on brand promises, brand positioning, wow
factors, core identity of two companies Apple Inc. and Samsung; their brand building strategy
through integrated marketing communication and holistic selling proposition, their brand
sustainability, renewal strategy to determine which company is leading in terms of brand
equity, brand strategy and execution.

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Table of Contents
1. Introduction ................................................... 1
1.1 Origin of the Report: ........................................ 1
1.2 Background of the Report:....................................... 1
1.3 Objective of the Study ......................................... 1
1.4 Scope of the Study ............................................ 1
1.5 Methodology of the Study ....................................... 1
1.6 Limitations of the Study ........................................ 1
2 Company Overview .............................................. 2
2.1 Company Overview and Brief History of Apple Inc. ...................... 2
2.2 Mission of Apple Inc. .......................................... 3
2.3 Vision of Apple Inc. ........................................... 3
2.4 Company Overview and Brief History of Samsung ...................... 4
2.5 Mission of Samsung Inc. ........................................ 4
2.6 Vision of Samsung Inc. ......................................... 5
3.0 Brand Promises and Wow Factors of Two Brands: Apple versus Samsung ......... 5
3.1 The Brand Promise to “Think Different” ............................. 5
3.2 Apple: Wowing Customers with Innovation and Superior Experience .......... 6
3.3 Brand Promise of Samsung: ...................................... 7
3.4 The Wow factor of Samsung ..................................... 8
3.5 Comparison of Samsung and Apple on Delivering Wow Factors .............. 9
4.0 Positioning of the Two Brands Globally: Apple versus Samsung .............. 11
4.1 Blue Ocean Strategy of Apple: ................................... 11
4.1.1 Product Strategy of Apple: ................................................................................................... 11
4.1.2 Pricing Strategy of Apple:.................................................................................................... 13
4.2 Unique Selling Proposition of Apple: .............................. 13
4.3 Blue Ocean Strategy of Samsung: ................................. 13
4.3.1 Product Strategy of Samsung: .............................................................................................. 15
4.3.2 Pricing Strategy of Samsung: ............................................................................................... 15
4.4 Unique Selling Proposition of Samsung ............................. 15
4.5 Comparison of Apple and Samsung on Positioning Strategy and Unique selling
Proposition: .................................................. 16
5.0 Core Identity of the Two Brands Globally: Apple versus Samsung ............. 17
5.1 Multiple Brand Identity: ....................................... 17
5.2 Brand Personality: ........................................... 18

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 5.3 Brand Self Image: ........................................... 19
5.4 Brand Physique: ............................................ 20
5.5 Brand Logo: ............................................... 21
5.5 Brand Slogan: .............................................. 21
5.6 Packaging as an Element of Differentiation between Brands: ............... 22
6.0 Positioning of the Two Brands Globally: Apple versus Samsung .............. 22
6. 1 Integrated Marketing Communication of Apple: ....................... 22
6. 2 Integrated Marketing Communication of Samsung: ..................... 25
6.3 Comparison of Apple & Samsung’s IMC Based on Related Factors: .......... 26
7.0 Survival and Sustainability of the Two Brands: Apple versus Samsung .......... 28
7.1 Factors leading to Apple’s Success so far: ........................... 28
7.2 Challenges for Apple’s Sustainability: ............................ 29
7.3 Apple’s Way Forward to Sustainability: ........................... 30
7.4 Success Reason of Samsung in Last Decade: ........................ 31
7.5 Challenges for Apple’s Sustainability: ............................ 31
7.6 Samsung’s Way Forward to Sustainability: ......................... 32
8.0 Who is Winning the War: Apple versus Samsung ........................ 32

List of Tables

Table 1: Year wise Research & Development Expenditure ..................... 10

Table 2: Number of Utility Patents .................................... 10

List of Figures

Figure 1: Blue Ocean of Apple ....................................... 11

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 1. Introduction

1.1 Origin of the Report:

Under the EMBA program of IBA, University of Dhaka this report is prepared for Professor
Mustaque Ahmed as a course requirement for Brand Strategy.

1.2 Background of the Report:

1.3 Objective of the Study

The primary objective of the qualitative, comparative study is to find out some in depth
perspective of the factors and strategy undertaken by the two tech giants Apple Inc. and
Samsung to become and remain in the top 10 global brands.

1.4 Scope of the Study

The scope of the study is the comparative analysis of the brand strategy of the two companies
Apple Inc. and Samsung as well as infers some conclusive statements based on facts and
qualitative study.

1.5 Methodology of the Study

Data Collection
The main source of the data was from secondary sources found on the internet.

1.6 Limitations of the Study

The collected data are mainly found from the secondary sources

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2 Company Overview

2.1 Company Overview and Brief History of Apple Inc.

Apple Inc. is an American multinational technology company headquartered in Cupertino,

California, that designs, develops, and sells consumer electronics, computer software, and
online services. Apple Inc. is considered as one of the big four tech companies around the
globe and has successfully built a brand that offers a brand equity value of $ 214,480 million
and has grown at 16% in 2018, thus becoming the number 1 global brand.

Apple Inc. was cofounded on April 1, 1976, by Steve Jobs and Steve Wozniak in Los Altos,
California. There was a third cofounder, too, named Ronald Wayne. Jobs brought Wayne on
board to provide business guidance for the two young cofounders, but he ended up leaving the
company before it was even officially incorporated. Wayne took an $800 check for his shares in
the company. Here is a short snapshot of 35 years of Apple history till 2010.

The company has always been in a path of tremendous growth through perpertual innovation
after Steve Jobs return and the momentum somehow slowed after his death on 2011. The
company has turned to a new leader in the form of current CEO Tim Cook. Apple has

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expanded its horizons through other means. The company has launched several charitable
ventures that arguably might not have occurred under Jobs’ reign. Apple’s products
throughout this decade have since primarily undergone upgrades rather than the introduction
of any new product designs.

2.2 Mission of Apple Inc.

Apple is commited to bringing the best personal computing experience to students, educators,
creative professionals and consumers around the world through its innovative hardware,
software and internet offerings.

The mission statement is as follows: “Apple designs Macs, the best personal computers in the
world, along with OS X, iLife, iWork and professional software. Apple leads the digital
music revolution with its iPods and iTunes online store. Apple has reinvented the mobile
phone with its revolutionary iPhone and App store, and is defining the future of mobile media
and computing devices with iPad.”

2.3 Vision of Apple Inc.

Apple Inc.’s corporate vision influences strategic management in terms of the decisions that
the company’s managers make to reach a future of leadership in the various industries where
the business operates. Apple introduced a new vision statement under the leadership of Tim
Cook, who stated the following:

We believe that we are on the face of the earth to make great products and that’s not
changing. We are constantly focusing on innovating. We believe in the simple not the
complex. We believe that we need to own and control the primary technologies behind the
products that we make, and participate only in markets where we can make a significant
contribution. We believe in saying no to thousands of projects, so that we can really focus on
the few that are truly important and meaningful to us. We believe in deep collaboration and
cross-pollination of our groups, which allow us to innovate in a way that others cannot. And
frankly, we don’t settle for anything less than excellence in every group in the company, and
we have the self-honesty to admit when we’re wrong and the courage to change. And I think
regardless of who is in what job those values are so embedded in this company that Apple

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will do extremely well.

2.4 Company Overview and Brief History of Samsung

Samsung is a South Korean multinational conglomerate headquartered in Samsung Town,

Seoul. It comprises numerous affiliated businesses; most of them united under the Samsung
brand, and is the largest South Korean business conglomerate .Samsung was founded by Lee
Byung-chul in 1938 as a trading company. Over the next three decades, the group diversified
into areas including food processing, textiles, insurance, securities, and retail. Samsung
entered the electronics industry in the late 1960s and the construction and shipbuilding
industries in the mid-1970s; these areas would drive its subsequent growth. Following Lee's
death in 1987, Samsung was separated into four business groups – Samsung Group,
Shinsegae Group, CJ Group and Hansol Group. Since 1990, Samsung has increasingly
globalised its activities and electronics; in particular, its mobile phones and semiconductors
have become its most important source of income. As of 2018, Samsung has the 6th highest
global brand value totalling $ 59,890 million and 6% growth.

2.5 Mission of Samsung Inc.

Inspire the world with our innovative technologies, products and design that enrich people's
lives and contribute to social prosperity by creating a new future.

Mission statement: “At Samsung, we follow a simple business philosophy: to devote our

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talent and technology to creating superior products and services that contribute to a better
global society.”

2.6 Vision of Samsung Inc.

Inspire the World, create the future.

The Vision 2020 is at the core of our commitment to create a better world full of richer digital
experiences, through innovative technology and products. The goal of the vision is to become
a beloved brand, an innovative company, and an admired company. For this, we dedicate our
efforts to creativity and innovation, shared value with our partners, and our great people. We
have delivered world best products and services through passion for innovation and optimal
operation. We look forward to exploring new business areas such as healthcare and
automotive electronics, and continue our journey through history of innovation. Samsung
Electronics will welcome new challenges and opportunities with joy.

3.0 Brand Promises and Wow Factors of Two Brands: Apple versus Samsung

3.1 The Brand Promise to “Think Different”

Apple’s iconic branding strategy is centered on emotions; it focused on building a community

of dedicated fans rather than just making sales. The secrecy around its new launches, the
much hyped reveal presentation by the CEO, the conversations and buzzes around each
release; makes it different. The customer does not think of buying Apple iPhone because they
merely need a phone with great specs, they want to buy the Apple iPhone. From the creation
of hype, to focus on aesthetics and experience to association with exclusivity and luxury, all
led by innovation which brings something different to the market always; makes the promise
“Think Different” effective. It thinks in a different way than other players and inspires its
customers to think differently as well with its new innovations and experience which are like
no other.

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 3.2 Apple: Wowing Customers with Innovation and Superior Experience

(a) Innovation

Since the beginning of its journey, Apple walked a different path. Innovation is in the brand’s
DNA which helped it bring in the WOW factor. Apple markets its product based on what it
can do, not on raw specifications. They always strive to bring in something different which
the world did not even think of yet or only dreamt of till now. The journey began in 1977
with Apple II. It was the first PC to support color graphics and have a floppy drive which was
much more affordable than competition’s product. It also launched the world’s first electronic
spreadsheet, VisiCalc. Apply continued its journey of firsts and innovation through licensing
graphical user interface (GUI) in 1983, introducing “the Macintosh”, supercomputers such as
Power Mac G4, OS X and the iPod, iPhone, iPad, MacBook Air etc. Each was an event that
caused much media hype among the tech lovers and presses alike. The incredibly charismatic
leader Steve jobs’ forward thinking and presentations set Apple truly apart from competition.
They brought in devices which gave user a different experience; something they had not
encountered before. Therefore, innovation has been on the forefront of Apple’s journey to
become one of the most revered global brands in present day.

(b) Delightful customer experience

Apple practices empathy as one of its three pillars of business philosophy. Apple’s
understanding of its core customer base is light years ahead of its competitors like Samsung,
Huawei, or even Google. The competition may understand what it takes but may not invest in
the same manner as Apple does. One does not have to go farther than its retail stores. From
its speckless layout of store designs to uniform dress codes to exemplary services, the people
orientation aspect of Apple is clear. The same cannot be said for companies such as Huawei,
Samsung etc. who competes more on product feature, technology, product portfolio etc. It
takes decade long analysis; investments to become a people focused company such as Apple.
They do not see their products as mere devices but as individual pieces in the much larger
pattern of customers’ and their close one’s life and work. Apple has a story which is still
lacking in powerhouses such as Samsung. The iOS is unremarkably similar in every
generation and every device. The same experience carries through its entire product lineup
from iPods, iPads, Macintosh to iPhone and to Apple TV and watches. From purchasing to

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 post sales, the entire experience is consistent. Apple also built an ecosystem encompassing
iTunes store, iMessage, Facetime, iCloud etc. which makes sure customer and their friends
and family stay close together.

(c) Ease of use and exclusivity:

Simplicity and ease of use has been an essential factor for Apple. It’s easier to use for a wide
range of people such as older generation, busy business people, non-techy, teens, people who
prefer easy purchase and excellent customer service. This comes at a price though, the iPhone
X is priced at upwards of $1200. However, the experience that Apple offers along with its
strong eco system, customer focus and exclusivity make it worthwhile for its customer base
which is gradually expanding. As of 2016, over 700m used iPhones and there are over 1
Billion active users of Apple devices in the world. It has a premiumness attached to the brand
and keeps its customer base hooked with its unique experience and products. To a lot of
people, it is an aspirational brand, owning an iPhone is a matter of prestige and sign of
affluence. Therefore, despite practicing minimalism in marketing efforts, they have been able
to create that pull among consumers.

3.3 Brand Promise of Samsung:

Samsung is committed to complying with local laws and regulations as well as applying a
strict global code of conduct to all employees. It believes that ethical management is not only
a tool for responding to the rapid changes in the global business environment, but also a
vehicle for building trust with its various stakeholders including customers, shareholders,
employees, business partners and local communities. With an aim to become one of the most
ethical companies in the world, Samsung continues to train its employees and operate
monitoring systems, while practicing fair and transparent corporate management.

The brand promise of Samsung is people first; create the future; greener future together.

The values that define Samsung’s spirit

Samsung believes that living by strong values is the key to good business. That’s why these
core values, along with a rigorous code of conduct, are at the heart of every decision the

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company makes.

People

Quite simply, a company is its people. Ay Samsung, we're dedicated to giving our people a
wealth of opportunities to reach their full potential.

Excellence

Everything we do at Samsung is driven by an unyielding passion for excellence and an

unfaltering commitment to develop the best products and services on the market.

Change

As we have done since our foundation, we set our sights on the future, anticipating market
needs and demands so we can steer our company toward long-term success.

Integrity

Operating in an ethical way is the foundation of our business. Everything we do is guided by

a moral compass that ensures fairness, respect for all stakeholders and complete transparency.

Co-prosperity

Samsung is committed to becoming a socially and environmentally responsible corporate

citizen in all of its communities worldwide.

3.4 The Wow factor of Samsung

Innovation and lead, every year, Samsung invests heavily on Research and Development
(R&D) globally. In 2014, Samsung spent $13.4 billion, over $14 billion in 2015, and $13
billion in 2016.

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Samsung offers the wide range of options for the consumers according to their choices. If
anyone wants a cheap phone, then Samsung has cheaper phones. If one wants a midrange
phone, Samsung has that too. If one wants a top of the range, Samsung has that too. If one
wants to be able to write with a pen on the phone, as well as draw, then Samsung has the note
series. If one just wants a fast, durable phone, Samsung S series is very good. Now, if anyone
were to not receive more updates, can install a custom ROM (basically another version of
Android) which means anyone can install Android X on a phone that could only get Android
P.

3.5 Comparison of Samsung and Apple on Delivering Wow Factors

The target audiences of Apple are professionals, managers, executives and students that are
high earners and belong to upper class and upper middle class who are aspirer, explorer and
succeder. Apple appeals to its customers and potential customer by taking the lead. The
Mantra “Customer is always right” is not a priority to Apple. To customers, Apple is always
right. Apple dictates the lead. Customers don’t always know what they want, they want to be
directed. So Apple upgrades with innovation that wows the market and hence deliver its
brand promise of “Think Different” by delivering novelty value through perpetual innovation
and perpetual marketing consistently.
.
The target customer of Samsung, on the other hand, can be broken down in two segments.
The primary target segments are: upper middle class Professionals and large businesses;
whereas secondary target market includes Young trendy people, high school & college
graduates, Common Cellphone users, Institutional sales for colleges, Services to public
safety, government, utility and manufacturing enterprises. Samsung has a brand promise of
being an ethical company to all of its stakeholders but its main wow factor is Innovate and
Lead. So Samsung also focuses on perpetual innovation and marketing.

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 Table 1: Year wise Research & Development Expenditure
Company (Billion $ ) Chang As a % of (Billion Change from 2014 As a % of
2014 e from revenues (2014) $) revenues(2015)
2013 2015
Samsung 13.4 28% 6.4% 14.1 5% 7.2%
Electronics
Apple 6 32% 2.6% 8.1 35% 3.4%
Microsoft 10.4 6% 13.4% 11.4 9% 13.1%
Intel 10.6 5% 20.1% 11.5 9% 20.6%
Amazon.com - - - 9.3 41% 10.4%
LG Electronics 2.3 9% 3.9% 2.1 -1% 3.8%
Sony 4.5 -10% 6.9% 3.9 0% 6%

From the table 1 above, it is seen that Samsung has invested a lot in research and
development over the years compared to Apple. Also Samsung has higher patents from 2013
to 2015 compared to Apple as shown in table 2 on next page.

Table 2: Number of Utility Patents

Company 2013 2014 2015

Samsung Electronics 4652 4936 5059

Apple 1775 2003 1937

Microsoft 2659 2829 2408

Intel 1454 1573 2046

Amazon.com 530 741 1136

LG Electronics 1945 2119 2241

Sony 3073 3214 2448

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 4.0 Positioning of the Two Brands Globally: Apple versus Samsung

4.1 Blue Ocean Strategy of Apple:

Apple has successfully created Blue Ocean with its value innovation and perpetual innovation
on continuous basis by attracting and targeting customers that are missed by the traditional
MP3 player industry, mobile phone industry music industry on individual basis. The figure
below can give a broad and visual understanding of the blue ocean created by Apple.

Figure 1: Blue Ocean of Apple

4.1.1 Product Strategy of Apple:

The Apple product strategy is a combination of value innovation. The products are simple,
sleek, elegant, innovative but easy to use. Apple has successfully used the 4 Actions
Framework for each of its product and also has focused on the 7 parameters: performance,
features, conformance quality, durability, serviceability, reliability and style and design.

(a) iTunes

Strategic thinking: Apple saw untapped demand for legal channels of digital music with wide
selection at a price that appeals to the mass of potential buyers.

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 Eliminate Raise
 Piracy concern  Music quality
 Complex pricing method  Music selection
 Simplicity & ease of use

Reduce
 Restricting in using purchased music
Create
 Pay per song
 30 seconds free sampling
 Automatic sync with iTunes (Easy file
management & transfer to a mp3 player)

Result: By 2010, Apple has sold more than 297 million iPods & maintained over 70% Global
market share

(b) iPhone

Strategic thinking: PC like phones

Eliminate Raise
 Variety of Models  Mobile internet
 Style & Entertainment
 Ease of use & Simplicity

Reduce Create
 Number of physical buttons  Freedom to customize through App store
 Embedded business applications (from 2008)
 PC-like performance (through higher
operating system)

(c) iPad
Strategic thinking: a new product that provides breakthroughs in value for PC users

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 Eliminate Raise
 Hardware features  Ease of viewing
 Ease of use, intuitive navigation,
portability
 Non PC function such as hand held gaming
and e-book reading

Reduce Create
 
Technical specs (storage capacity, speed, Style and fun
etc.)  Hardware add on
 Functions (embedded 
software Customization through app
applications)

4.1.2 Pricing Strategy of Apple:

Apple provides all these innovations to its target audience at a premium price compared to
other products of competitors in the market. High priced products give image of quality
and durability but how Apple continues to work with customers after purchase is what
justifies price for most consumers. So Apple believes it focuses on value based pricing
for its target audience.

4.2 Unique Selling Proposition of Apple:

Apple has focused on creating a lifestyle for its customer instead of focusing on product
attributes as compared to other functional brands. “We provide a lifestyle with our products”
is the unique selling proposition.

4.3 Blue Ocean Strategy of Samsung:

Value innovation is at the heart of blue ocean strategy. Value Innovation, first component of
Blue Ocean Strategy is Samsung’s primary tool for product development. Samsung has
adopted successfully Blue Ocean Strategy and company has profited through this strategy in
the past few years. Samsung has invested heavily in Research & Development that helps the
company to innovate and create new products that helped the company to grow into a Global
powerhouse. Samsung’s team of researchers and engineers include over 50,000 employees
across 42 global research facilities—each one collaborating on strategic technologies to forge
new market trends and set new standards of excellence. Blue Ocean Strategy visions the

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creation of uncontested markets with no competition through new product innovation leading
to creation of new demand.

Value Innovation Program center was started in 1998 and by 2004 the center was playing a
very key role in rapid growth of Samsung to become the world’s top consumer electronics
company. Samsung BOS strategy has also helped it to maintain top position in TV market
(since 2006-2010), Global; LCD panel market since 2002. BOS is still at the core of the
Samsung product strategy and company has been able to make the necessary adaptations
according to the business environment and changing consumer preferences.

The Four Action Framework used is as below:

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4.3.1 Product Strategy of Samsung:

Samsung product strategy focuses on technological leadership, Customer focused design,

value added first to market products.

4.3.2 Pricing Strategy of Samsung:

The Samsung’s pricing strategy undertakes two components with the first being the
skimming price and the second the competitive pricing.
For instance, when Samsung launches new products with different variants of storage
capacity, it prices the product higher. But when other competitors launch a smartphone with
identical features, Samsung lowers the price and easily prevents the reduction of its market
share due to the launch of the competitor.

Samsung uses competitive pricing for different products and product categories where it tries
to compete with the competitors on the basis of the price of the product.

4.4 Unique Selling Proposition of Samsung

For Samsung, they have a wide range of products and price points, which is a USP in and of

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itself. The unique selling proposition is as below:

“We can deliver an exceptionally high quality product for less money than the competition”.

4.5 Comparison of Apple and Samsung on Positioning Strategy and Unique selling
Proposition:

Apple’s tagline has been “Think different.” This position statement appeals to the changing
trends in technology and consumer tastes. Once the iPod and iPhone took off, that tagline
took on a life of its own. The Apple brand makes a strong promise about its products. Their
customers are extremely loyal because Apple backs up their brand promise with great
products. The product strategy, pricing strategy, packaging and promotional activities all are
aligned and integrated to ensure that Apple keep its brand promise and maintain its
positioning of being different.

Samsung, on the other hand, positioned itself to deliver an exceptionally high quality product
for less money than the competition Samsung has initially started off as a follower but soon
became a major competitor after its launch of Samsung Galaxy series in premium segment
using the widely accepted android app. However things have not gone in Samsung’s favor
after launch of its flagship product Samsung Galaxy Note 7 and faulty battery of the device.
After the case of battery explosion in Samsung Galaxy Note 7, Samsung came up with a
campaign “Commitment to Quality” in which it shows how Samsung has taken actions and
commitment to check why the issue occurred. They uploaded a video on social media to
show what steps they have taken for ensuring the safety and security of the customers. They
showcase that they constantly try to introduce new products and innovative technologies so
that customers get something new every time. The brand regularly promotes its products for
gaining popularity and to gain loyalty from the customers (Spence, 2016). Samsung has
remarkably positioned itself through “Commitment to Quality” and sustainable as global
brand.

It can also be represented through a perceptual map which shows how target customers view
the competing alternatives in the market in a visual format (Yumusak, Yilmaz & Gungordu,
2016).

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Figure 1: Perceptual map for Samsung

The perceptual map above show that Samsung is an innovation led brand which always
provides exciting and trendy features to its customers. It believes in providing something new
always which keeps it on the top position in the eyes of the customers (Yumusak, Yilmaz &
Gungordu, 2016).

5.0 Core Identity of the Two Brands Globally: Apple versus Samsung

5.1 Multiple Brand Identity:

Apple is a corporate brand and it is rarely that anybody states that he or she bought an Apple,
it is always an iPhone, iPod or iPad that is mentioned, similarly a customer purchasing a
Samsung smart phone will not refer to the purchase as a Samsung, but instead would say I
bought a Samsung Galaxy S8 or Samsung Galaxy Note-7.

Apple has been successful over Samsung in earning superior profits by embarking on

17
multiple brand identities. Samsung’s multiple brand strategy would be short termed, sighting
that Samsung is profitable due to the space it enjoys as No. 2 brand to iPhone which is more
profitable than Samsung. Despite these views both brands continue to enjoy the attention of
the consumer through their respective brand identities backed by consistent innovation in
terms of functional capabilities and technological advancements.

Apple has been successful in retaining its core identity and creating multiple brand identities
such as iPhone, iPod and iPad. Even within these brands Apple has created sub brands such
as Safari, iTunes, iBooks etc., thereby enabling it to successfully differentiate from Samsung
and other competitors.

5.2 Brand Personality:

Brand personality defined as “the set of human characteristics associated with a brand” by
David Aaker could be viewed through strong affiliations a brand may have to a single
person such as the founder or brand ambassador, as in case of Apple whose corporate brand
personality was defined by its founder, Steve Job’s personal characteristics such as vitality,
imagination and passion was associated with Apple and whenever Jobs was present at a
product launch there was tremendous hype and anticipation and when his health deteriorated
and took him away from leading Apple, the companies’ stocks plummeted . Samsung is
protected from exposure towards fallibilities associated to a single personality, as; although
Samsung was founded by a Korean by the name of Lee Byung- Chul in 1938 his association
with the Samsung brand is little known

Apple has successfully built a sense of genuineness and feelings of energy to the personality
of their brand, whereas Samsung has an edge over it sense of ruggedness through its
functional dimensions. With functionalities such as replaceable batteries and free mobile
apps the brands Samsung is more appealing to a certain segment of consumers who are risk
takers and do not believe in paying for software. As such the Samsung brand is to a
compelling functional benefit whenever possible and generates deep consumer insight in the
construct of their brand

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5.3 Brand Self Image:

Brand self-image is also an internalized facet of the brand identity prism. According to
Kapferer, Brand self-image has been found as the target’s own internal mirror when s/he
interacts with the brand. It has said that consumers wish to acquire the characteristics of a
brand by using them, for e.g. User of an iPhone is associated to eliteness although actually he
may not belong to the elite class ( Ponnam, 2007) , and the same image cannot be drawn by
Samsung as it is not perceived to be identified in that position. The strength of the iPhone’s
self- image is illustrated by a study conducted where it was revealed that “Apple's iPhone
remains the smartphone with the greatest appeal for shoppers in North America”

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5.4 Brand Physique:

The physical appearance of the iPhone has contributed immensely towards establishing its
brand personality in comparison to Samsung, the software (iOS 8) of the iPhone 6 has been
optimized to enhance the physical design iOS swipe gestures have been designed to flow
seamlessly making it easy to navigate with one hand thus linking traits of human
characteristics to physical design.

Apple targeted towards the high end customers although it was widely expected that Apple
would introduce a cheaper lower-end product with the 5C model to capture the emerging
markets, the pricing did not reflect this expectation and iPhones remains to be identified and
reflected with the affluent class. This view is illustrated by Reis (2014) who is of the opinion
that “Getting an iPhone, for instance, is a symbol of moving up in the world, a status symbol.
In many countries, including the U.S, an iPhone is a symbol of wealth.

Conversely, Samsung’s Galaxy range has targeted their brand to the mass market with a
phone to fit any customer’s budget. iPhones are sold mainly through their branded stores or
authorized resellers, in 2003 Apple spent $293 million to open 73 retail stores to create
excitement for the brand , the logic behind this investment is to allow more customers to
touch and feel the Apple product. Comparatively Samsung is distributed freely and is
available readily in most markets. In essence, iPhone is reflected to be identified with the

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 affluent and limited in availability thus earning superior profits which no doubt enhances
brand equity , the way Samsung is positioned and reflected it is a revenue driver and is
associated with affordability , and value for money but includes high-end product options as
well. When it comes to “understanding competitors” both Apple and Samsung have been
equally successful, Apples success though is limited to a niche high-end market, whilst
Samsung has a deep understanding of the mass market.

5.5 Brand Logo:

5.5 Brand Slogan:

 Mac Mini: “It’s Mini in a massive way

 Mac Book: “The note book you love”
 iTunes: “You have never been so easily entertained”
 iPhones: “Bigger than Better” “Progress is a beautiful thing.”
 iPad: “What will your verse be?”
 Mac OS X: “Every bit as powerful as it looks”
 App Store: “There’s an app for that”
 Apple TV: “ All Things entertaining”
 Apple Watch: “ Our most personal device yet”
 Apple Pay: “Your Wallet. Without the wallet”
 iTunes Radio: “Hear where your music takes you.”
 iPod Touch: “Engineered for maximum funness”

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 iPod Shuffle: “Small but big on Music”
 iPod Nano: “Tap play. Then go play.”

5.6 Packaging as an Element of Differentiation between Brands:

Apple’s packaging strategy is based on simplicity that features the product and easy use of
products

6.0 Positioning of the Two Brands Globally: Apple versus Samsung

6. 1 Integrated Marketing Communication of Apple:

Apple uses a Minimalist approach to its design in products and puts forth this brand image
when communicating its strategy i.e. simple, but eye popping commercials with clear
message to its target audience i.e. professionals, managers, executives and students that are
high earners and belong to upper class and upper middle class who are aspirer, explorer and
succeder. Close attention to detail by Apple includes typeface, colors, constantly improving
and updating products by simplifying rather than making use more complicated. As
mentioned before, Apple's close attention to detail is how it thrives in marketing
communications. This is especially evident in consumer experience at every touch point:
products, shopping in Apple stores, and online. This is done by using small teams and shifts
Brand Focus. The medium used by Apple are as below:

 Trade Shows: In earlier days, Apple used to perform trade shows.

Apple uses Television and Online marketing as a medium for its marketing communications.

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 Advertisements with Celebrity Endorsements: Over the years, Apple has relied heavily on
catchy TV commercials and viral marketing campaigns. They often use songs that are trendy,
catchy and hip hop. Apple has solidified its position with simplistic yet powerful ads in
collaboration with numerous celebrities alike. Celebrity endorsements help to communicate
their brand position. Some of the award winning commercials are mentioned below:

 “1984 Super Bowl Commercial”: The 1984 Super Bowl commercial was Apple’s
introduction of Macintosh personal computer based off the eponymous dystopian George
Orwell novel. It was successful in introducing the philosophy of empowerment and today is
considered as the most well-known advertising in history. Apple advertising and marketing
campaigns have continued to be successful and won many awards.

 “Think Different”: When Steve Jobs left Apple Inc. for a short period of time the company
was not successful in keeping their brand image, they focused more on price and features of
the product. Jobs rejoined the company and in 1997 launched ‘Think different” campaign,
which again helped the company restore its brand image in the customer’s mind. This
campaign was a major turning point of company’s history. The commercials featured many
greats who have made a change in the world including martin Luther king Jr., Albert
Einstein, John Lennon, Thomas Edison, Muhammad Ali and Pablo Picasso.

 “Switch”: Apple is in fact a company that does think different, for their campaigns. Apple
did not advertise in the regular computer magazines, instead chose popular magazines and
magazines related to fashion. Something that other company never thought of doing before.
In 2002, Apple launched a new campaign ‘Switch’ in which it featured “real people” who had
switched from Microsoft Windows platform to a Mac. Again this campaign featured famous
personalities such as Tony Hawks and Will Ferrell.

 “Get a Mac”: The “Get a Mac” campaign was launched in 2006 which was a form of
negative advertisement where the company talks bad about the competitors. The purpose of
the campaign was to target users of the competitors rather than concentrating on the hardware
superiority. The campaign featured a cool young guy who personified the Mac is for young
and trendy whereas PC is history. The positive point of the campaign was that Apple took
advantage of the problems faced by the operating system launched by Microsoft during that

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 time and it pointed out the weakness and failures through these ads. In 2007 ‘Get a Mac’
campaign won the most successful Marketing Campaign by Effie Awards.

 Product Placement: Apple tries to place their products into movies and TV Shows such as
Transformer 4 and Captain America: The Winter Soldier. Apple uses their logo in product
placement. Another example is use of logo in product placement limiting music/ media to be
available by iTunes purchases.

 Press Conferences: Apple often calls for press releases and introductory meeting to
announce their new product and show them off to the world. This creates anticipation and
excitement among customers and potential customers.

 Buzz Marketing: Apple uses this technique a lot in marketing their products. They heavily
relied on buzz marketing when they promoted their “siri” product and they used celebrity like
Zooey Deschanel and Samuel L Jackson to do it.

 Online Marketing via Apple Website: Apple make sure that traffic is driven to their
website via search engine marketing. When customers visit the websites, they find it is simple
and easy to navigate. The iPhone website has clean, clear and witty interface. The iPhone
advertisement is similar to white background of website that is alluring to customer. The
website gives the consumer information on all the Apple products, so that customer can make
informed decisions before they purchase the Apple products. Apple can spread information
about their products before they put it on TV.

 Infomercials (Direct Marketing): When a consumer installs a new app from App Store or
update, Apple sometimes slips in infomercials that show the consumers how to use the new
updates or new products. This promotes the image of simplicity while providing information
to the customers. Apple promotes by limiting music/media to be available by iTunes
purchases only to attract customers.

 Integration tools:

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(i) Apple iD- requiring registered information to download apps/media, use products and update
apps /iOS are a way for Apple to understand who is using their products and what uses they
are using them for.

(ii) Software updates and App Stores allow Apple to have an idea of who is still using the
products and who utilizes the importance of simplifying and fixing bugs.

(iii) The iCloud is a tool for consumers to simply use multiple apple products, but also gives
Apple an idea of who is loyal to the brand, and what different products are being used.

6. 2 Integrated Marketing Communication of Samsung:

Samsung’s launch of Galaxy series has led Samsung to be a major competitor of Apple in the
mind of customer. The integrated marketing strategy that supported the product during its
launch focuses on the following key points:

 Brand Statement: “Your Gateway to Ultimate Experience”

 Unique Selling Proposition: Flexibility & Durability
 Marketing techniques: Comparison, endorsement, buzz creation and different medium of
integrated marketing communication.

Days before its release dancers with boxes written “Letters from The World” and the
Samsung Logo paraded across Barcelona-Spain to promote the new Galaxy phone. That also
created Buzz within the city about the launch. By using the World Mobile Convention 2011,
in Barcelona-Spain, to launch the phone, they earned lots of Public Relations from the media
about the Galaxy SII and favoring the new trends showed on the Convention. On its release
TV Advertisements, Billboards, Radio, Magazine Ads, Website, Micro-Sites, Kiosks, In-store
Banners, Sponsorships, YouTube Videos all worked together to promote Samsung’s message
across different media platforms all showcasing the new Samsung’s product. Going deeper
and unveiling Samsung’s IMC strategy we can identity Major Communication Elements
present on this campaign. Mass Communication with Mass Media Advertisement (TV,
Magazine, Radio), Target Communication especially in the Sporting Market with the
Sponsorship of the London Olympic Games 2012, In-Store Communication with banner ads,
and sales force using branded t-shirts, One-to-One Communication with Kiosks’ and Micro-

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websites promoting the ”Letters from..” concept that interacted with customers. On this
Promotional Mix we could see: Advertising, Direct Marketing, PR, Sponsorship, Sales
promotion and e-Marketing. Based on the campaign published by Samsung, the Sender,
initially the intent was to create Awareness about the product to inform consumers about the
Galaxy SII. As the campaign progressed the customer, the Receiver, got the message the
campaign aimed to move down the Buying-Readiness States to last stage, the Purchase state.

6.3 Comparison of Apple & Samsung’s IMC Based on Related Factors:

Factors Apple Samsung Winner

Innovation & Leading Innovator Follower for a long time. Became Apple
Technology major competitor after launch of
Galaxy S4
Social Media Minimalist presence on Visible on social media channels Samsung
Presence Social Media like YouTube, Twitter, Facebook,
connected with major apps and
platforms and launched digital
campaign #SamsungCares
Advertising Focuses on online Samsung is giving importance on Apple &
advertisement advertisement of Galaxy S. It Samsung
campaigns. The website promotes mobile phones- bringing a
is designed to appeal dark blue interface in contrast to the
and portray the classy white background brought by Apple.
lifestyle of Apple brand. Galaxy S is promoted as somewhat
vibrant, fast and thinnest mobile
phone and the advantages embraced
are explained clearly.
Customer Apple launched ‘Your Apple &
Samsung launched its own
Engagement Verse’ campaign to Samsung
campaign, ‘Incredible Art Piece’ to
highlight how different promote Galaxy Note pen style. This
people use ipad to do campaign itself became a Guinness
things incredibly and in World Book entry with the record of
their own way in 2014. maximum number of artists working
on a single art work.

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 (Lifestyle brand) (Functional brand)
Public Apple is using publicity Samsung uses Social Media such as Apple
Relations & for free and yet Facebook to market its product and
Publicity powerful way to interact has less visibility on public relations
with customers. More compared to Apple
users are buying Apple
due to halo effect.
Viral Video In 2012, Samsung launched Samsung
Making campaign, “The Next Big Thing is
Already Here” to promote new
smart phone series Galaxy SII
teasing Apple with taglines ““Why
don’t you guys just get 4G
phones?” and similar campaign
Samsung’s Grad Pool Party ad on
May 2013 to promote Galaxy S4
Entertainment Apple also generated the Samsung believes in its value and Samsung
buzz among the music adores the power of a celebrity.
industry for Samsung made sure its product was
procuring ‘Beats’ by Dr. front and center at the Oscars.
Dre but it felt to be a The brand partnered with famous
little late music icon JayZ for his ‘Magna
Carta Holy Grail’ album, and
teamed up with Usher for product
placements in his ‘Looking for
Myself’ music video.
Brand Equity Apple

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 7.0 Survival and Sustainability of the Two Brands: Apple versus Samsung

7.1 Factors leading to Apple’s Success so far:

Apple’s major competitive advantage is its technological advancement & visionary thinking
which made it most desirable brand in the world. Telling someone you own an Android
doesn’t have the same effect as telling someone you own an iPhone. It’s the name which
makes the difference.

Apple understood that their products are of high price so it will only be possible for
youngsters with hefty income or backed by rich parents to purchase their product while
middle class who forms the majority of the world population will not be able to purchase the
same so they tied up with telecom service provider in various developed/developing nations
to sell it on EMI basis with 2-3 years of unlimited calling /data usage. These strategies of
Apple have been successful so far in various nations.

Vertical integration has given Apple competitive advantage, as it owns chip manufacturers,
controls manufacturing, follows extremely strict software standards, and operates in a nearly
closed ecosystem of proprietary 400+ worldwide retail stores. With these advantages, the
company has more control of its value chain and, more importantly, its component costs.

The following factors has helped Apple Inc. to survive so far and maintaining these factors
will allow Apple to continue to sustain.

(a) Brand Equity – Apple is one of the top most companies of the world for its brand equity.
From the days of McIntosh computers, Apple is known to be a brand with promise.

(b) Tag of innovation – Besides the brand equity, the tag of innovation has always been applied
to Apple. From Ipod to Iphone and Ipad, Apple has been responsible for many tech
revolutions. Apple has always been known for its innovation & out of box ideas like “SIRI”,
a personal assistant having features of speech control and interactivity, user-friendly software
platform.

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(c) Consumer loyalty – An Apple loyal customer will proudly proclaim in front of the whole
world that he is an APPLE guy. The brand loyalty of Apple iphone can be compared with the
Harley Davidson brand loyalists. Just like the HOGS are known to be furious Harley
enthusiasts, so are the iphone owners.

(d) Amazing software and OS – The IOS which is the operating system of Apple iphone is a
respected mobile platform because of its flexibility and speed. The user interface is fantastic,
and one you use an iPhone, you get addicted to its ease of use.

(e) Wide developer support / control in the hands of users –Google play came long after the
Apple developer network. Before Google play, or android even started, Apple had millions of
applications and games made through its developer network. And the Apple developer
community is one of the strongest online communities till date.

(f) Design consistency – iphone has delivered hit after hit due to its design consistency. Apple
Iphone is very much similar in looks, and design wise there are not many changes. But it is
what is present inside the machine that Apple Iphone sells.

7.2 Challenges for Apple’s Sustainability:

High price – With such brand equity, you are bound to target the A grade segment itself. But
even then, the Apple Iphone is costlier as compared to Samsung phones which offer similar
features.

Restrictions on the phone – There are unnecessary restrictions on the Apple Iphone out of
the box. There is no Bluetooth, expandable memory is absent, and battery is non-removable
battery. With such a high priced phone you expect more features from the phone.

No variety – Apple Iphone design is very consistent which a plus point is. But at the same
time, there is a large population which continuously changes phones. They don’t get the
variety that they expect from Apple Iphone. This can be a reason that customers switch to
other brands. The variety and features offered are very high in a brand like Samsung, Huawei,
MI etc.

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No Steve jobs anymore – Many of Apple followers were staunch Steve jobs fan. And with
no Steve jobs anymore, Apple has lost some of its charisma.

Lack of Innovation on Artificial Intelligence and for Market place: Mobile phone market
is now completely going based on the market place and their applications. IOS is not opening
not many spaces for the open source application which causing trouble for its users. Apple is
telling they are investing on artificial intelligence but truth is for last 3 years no one can see
that much up gradation to their new apple product and phone as well. This industry is
changing rapidly and statistics is showing new innovations are coming within 6-8 months but
apple is not adopting those rapidly which is a big concern for sustainability and those who are
apple haters, competitors they are getting a tool to say negative word of mouth for apple.

7.3 Apple’s Way Forward to Sustainability:

Market potential of smart phones – Smart phones are the rage now a days and the market is
not going to get smaller. Thus the large market of potential customers is there for the taking
for a brand like Apple.

Continued technological advancement – Apple has delivered hits every decade or even
every 5 years. People expect more unique products from a company like Apple. And products
which are technologically advanced can take the company to even higher levels.

More dependency on digitization – People are becoming more and more addicted to
internet and apps. So much so that nowadays hardly anyone is seen without a smart phone.
As people become more digitalized, and as spending power increases amongst consumers,
smart phones like Iphone Will see a boom in the industry.

Strategy for Market Place & Artificial Intelligence: One of the main competitive
advantages of android operated phone like Samsung is its market place which is known as
Google play store. Google is a huge back up for android for market place and we can see that
the market place is the present and future of mobile phone. Though IOS has a market place
which competing with Google play store but still android based phone are winning due to its
easy going nature. SO apple has to make serious strategy for it otherwise they will not
continue as a market leader and it will count as threat for sustainability. And regarding the

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artificial intelligence they have already developed ‘SIRI’ but it has no match with Google AI.
So if they want to give something better to its users then they have to think seriously.

7.4 Success Reason of Samsung in Last Decade:

Samsung reads the markets: Samsung figures out where the world is heading in terms of
mass-market consumer electronics products, sees what is selling well and what is growing
and moves into that space with a better product than the original offering.”

Samsung is the classic fast follower: they’re attuned to what competitors are doing and what
other people are bringing to market first. They watch like a hawk as others gain traction and
then very rapidly come up with their own version. This emphasis on speed usually pays off,
but it can also backfire – as the problems with the Galaxy Note 7 highlight.

Lessons from the world’s best-known fast-follower: Samsung

Samsung didn’t invent the mobile phone – that honor goes to Motorola – but it took a
transformative new technology and ran with it. Even when Samsung is in the news for the
wrong reasons – the company has recalled the Galaxy Note 7 smart phones on safety grounds
after some of the devices caught fire – its fortunes are expected to recover.

Using innovation technologies:

Fast-follower approach to innovation still requires enormous creativity and skill. Samsung
invests heavily in training its engineers to systematically innovate. Samsung is a company
with a vast amount of technological expertise. They make about 50% of the world’s
microprocessors in some sections of the market. They’re one of Apple’s biggest suppliers,
providing memory chips, touch screen glass and other components. The reason they’re able
to move so fast is because they already have so many other general-purpose technologies that
underlie consumer electronics. So moving quickly is about bundling together new and
existing technologies.

7.5 Challenges for Apple’s Sustainability:

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 High Price: Compare to other android phones Samsung is selling their product in a higher
price which is now considered as disadvantage for Samsung.

Dependency on Google android: Though Samsung has been successful for years by using
Google android but they need to focus on their own OS and application processors for
differentiating from other.

Need of New Technology: The market is in need of a new technology to disruptive the
current situation. With 5G, Samsung is currently in the lead among companies which can be
game changer and market leaders to a new wave of technological innovation. In order to
become the market leader in the emerging 5G technology, Samsung needs to take a more
proactive view which can propel the company to be the “first entrant” into the new market
and get competitiveness.

7.6 Samsung’s Way Forward to Sustainability:

1. Develop their own OS, application processors

2. Decrease dependency on Google android
3. Keeping brand loyalty in high end products
4. File patent more aggressively on 5G technology on 2020.
5. Align R&D plans of SISA, DTL, SERI, and BST centers to support 5G development
6. Invest to hire and train related researchers for the centers
7. Participate with OS providers and third-party companies to develop applications

In this sector it is hard to say who is going to survive for next 10 years. Nokia was once the
market leader of this sector. One has to make right decision and right research and
development regarding user’s demand otherwise in it is difficult to sustain in this sector.
From this point of view Apple has risk issue regarding sustainability comparing to Samsung.

8.0 Who is Winning the War: Apple versus Samsung

The world of top smartphones has polarized in the past few years into two distinct
factions: Apple or Samsung. They have been going head-to-head for years to take the title of
best smartphone manufacturer. They went through a series of lawsuits regarding the design

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of smartphones and tablets. Apple began litigating against Samsung in patent infringement
suits. Apple has filed in multiple countries spanning from US to Germany. So, there’s no end
in sight to the war between Apple and Samsung. However, in all likelihood, competition
between the two will be healthier every year. Though the future is inherently unpredictable,
but in following discussion some a holistic view towards their journey ahead will be drawn.

8.1 Higher Profit Margin for Premium Category

Although premium smart phones make up a minority of global smartphone sales by

volume, they provide the bulk of the profit. That’s why it’s so significant that Apple is
widening the gap on Samsung with premium smartphones. For the past five years, Samsung
has been the only other smartphone company to give Apple real competition in the premium
smartphone market. Other Android manufacturers have made great flagships, but they
haven’t sold well. The only thing that separates Samsung Electronics from the laundry list of
failed smartphone companies is the premium devices. Their respective shares of premium
smartphone sales are a “zero-sum game;” when one company loses its share of the profitable
smartphone sales, the other gains. Innovation plays vital role in this segment. This segmen
will dictate the future of these two companys.

8.2 Capturing Market Share

Though Apple significantly increased its lead over Samsung in the premium smart
phone market ($400+) since the launch of the iPhone 7. Apple has been focusing on the high
profitable upper end of the smartphone market, introducing ever more sophisticated and more
expensive smartphones. Meanwhile, Samsung and Chinese smartphone makers have been
focusing on the low-end of the smartphone market, trying to mine the “fortune at the bottom
of the pyramid,” as C.K. Prahalad described the strategy more than a decade ago. The overall
market share in Quarter 3 of 2018 shows apple in th third position.
Position Smart Phone Companys Global Market Share
1 Samsung 20.3%
2 Huwawei 14.6%
3 Apple 13.2%
4 Xiaomi 9.7%
5 Oppo 8.4%
6 Others 33.8%

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 Table 1: Global Market Share Q3 2018
Apple has been the world’s top-selling phone maker for years, switching places with Apple
only for rare occasions. Going forward, Samsung might have to face even tougher times.
Huawei just surpassed Apple to become the second largest smartphone vendor in the world
after Samsung (for the second quarter), but the Chinese giant aims to become the world’s top-
selling handset maker as soon as the fourth quarter of 2019. That means it’ll have to
displace Samsung in the process. On the other hand, Huawei is the undisputed top
smartphone seller in China, where Apple is present in the top five, but Samsung doesn’t
really compete.

8.3 Recent Declination of Apple Share

Just three short months ago, Apple was on a high as the most valuable company in the
world. Apple's stock has been in free fall since its record high in October, and unexpected
sales warning from CEO Tim Cook on 2 January has sped up the decline. The drop in
valuation means Apple has lost its position as the world's most-valuable company to
Alphabet, the parent company of Google. The iPhone maker's share price fell by 9.96% on 03
January following a shock readjustment of its revenue forecast.

8.4 Brand Loyalty

Apple has a bit higher retention rate at 42% vs. 38% for Samsung. Apple does a better
job of switching Samsung customers at 19% vs. Samsung only converting 7% of its users
from Apple. Both Apple, at 79%, and Samsung, at 75%, users tend to keep their phones

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between one and three years with Apple turning them over slightly sooner than Samsung
owners.

8.5 Ecosystem

The innovation ecosystem contains both competitive and cooperative relations

between actors, and both complementary and substitute relations between technologies,
patents, components, applications, and systems. Apple could be in a better position since it
seems to be retaining a higher percentage of its users and doing a better job of getting
Android users to convert to iOS. Like few years back Samsung was lagging in terms of
developing own eco system. However, the situation has improved. But to be at the leading
edge of functionality Samsung has to innovate and further develop its own ecosystem.
Apple's hardware and software sing together, often leading to performance that's difficult to
match, making day-to-day use slick and fast. Software updates will be more predictable,
while you're enjoying an ecosystem that's huge. Android has its own ecosystem as does
Samsung and you find some crossover and duplication in the offering of both these systems.
It's a rich experience, but has the potential to confuse with so many avenues and options.

8.6 Value Proposition

While mapping out the digital media landscape, it is noticed that Apple has yet to
truly capture one area, the living room. Samsung on the other hand not only resides in the
living room, but, they have captured the kitchen and even the laundry room. Combine this
with wireless tablets and phones enabled to run multi-media apps, games, music and movies
and Samsung is positioned to be the single most dominant factor in the industry. With WiFi
connections between these devices, housewives can get a notification on their TV from the
dryer telling them the clothes are dry or operating your microwave from your phone so dinner
is ready by the time you get home. If Samsung were to make some strategic acquisitions and
key partners in the content distribution space they could very well become a more compelling
consumer value proposition down the road. I know there is a love affair with Apple but a
solid consumer proposition that extends across multiple areas of your life can be cause for
divorce from even the likes of Apple. If Apple delivers a 52 inch Ipad into living rooms in
the near future, you will see this battle heat up even more.
6.7 Strategy
This culture and strategy difference is manifested in the innovation happening within
the brand’s sales and marketing departments. It starts with customer data. You can’t use the

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iPhone without having an account with Apple, which means that Apple knows a lot about
you. In Samsung’s case, it has yielded the customer data benefit to Google, though the
benefits of that decision probably outweigh the detriments. The operating system excuse
doesn’t let Samsung off the hook. Apple is continuously improving its internal sales and
marketing capabilities because it has a straightforward management structure. Therefore, it
can experiment as rapidly here as it does with its products (and probably faster). Apple is
applying AI and other novel concepts in its operations. Apple was the first among the two to
experiment with proximity in its sales operations, and its CRM system is state-of-the-art.
8.8 Concluding Thoughts
Based on all this comparison we can say Apple and Samsung, each company is
advantageous in different aspects. Though apple is leading the market now but as the
technology, innovation etc is changing and all the competitors are making progress it is hard
to say who is winning as winning is the word of future itself. Market trend always shows the
path for market leader.

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