Executive Summary
There are notable impacts of globalization on the performance of companies. Evidently, there is need for adoption of more strategic measures. These are applicable within all business operations. Marketing, organizational leadership and collaborations are important.
These factors are eminent within this report. Apple and Samsung companies face these challenges. The companies are associated with the contemporary Samsung galaxy s3 and iPhone 4s.The companies have remarkable performance and development history (Murray-Webster & Williams, 2010).
They also have wide range of trade networks and product portfolio. They produce electronic gadgets that have diverse functional capacities. The report analyses the macro and micro-environmental forces that influence performance of these companies. There are vital lessons drawn from the analysis of these two companies.
Introduction
This paper analyzes the Apple and Samsung companies. They are renowned global electronic producing corporations. In particular, Samsung Corporation manufactures TVs and mobile phones. Presently, it produces the modern Samsung galaxy s3. On the other hand, Apple Company produces the iPhone 4s. These corporations are notable global competitors.
Their products are highly popular and acceptable within various global destinations. Indicatively, the two companies depict a high level of innovative technology (Palmer, 2004). This is notable from the period of their inception. The report examines various business factors influencing competition and success in these two companies. Various strategic tools of analysis are applicable in the process.
These include the PESTEL and SWOT methodologies. Consequently, there is an analysis of the market strategies pertinent to each of these companies. The report also provides important recommendations.
Industry Background
Electronic industry has shown tremendous growth. This is due to the increased global demand for electronic products. Particularly, this applies for the smart phones and contemporary personal computers. Evidently, the increased demand for electronic items is surpassing supply. That is, there is low supply due to the diminishing supply of raw materials.
These materials are crucial in the production of electronic items. This causes acute imbalances in supply of electronic gadgets and demand (Hitt, Ireland & Hoskisson, 2011). As noted by researchers, electronic equipments play a fundamental role in transforming individuals’ lifestyle.
This is because the items facilitate communication and execution of complex tasks. These require technological support. These items also enhance the development of social engagement between individuals. There is need to initiate effective communication and social engagement programmes.
Programmes should be set with an aim of facilitating social integration and monetary growth. The basic aim is to enhance individuals’ welfare. Indeed, there is untapped potential in the electronic industry. This is evident from the present imbalance between supply of effective electronic gadgets and demand.
Aspiring investors must consider this gap. Currently, the renowned companies that operate in this field undergo a lot of strain (Murray-Webster & Williams, 2010). These include the Samsung and Apple electronic corporations. They strive to serve the global populace with requisite electronic items of great functional capacity and quality. They have adopted conventional and viable marketing techniques.
These initiatives aim at ensuring that the locals acquire the essential electronic items. Such items include the Samsung galaxy s3 and iPhone 4s. These products have transformed basic global technological applications. This paper analyses the Apple and Samsung corporations. These are globally admired electronic manufacturing companies.
Company Background
Apple Company became operational in 1976. During this time, the core mission was to become the global “super” consumer product and be the leading distributor of electronic items. The company has immensely grown over the years since its inception in the US.
Currently, it has several subsidiaries and business units. These are set to aid its product distribution to satisfy consumer needs (Apple, 2012). The company manufactures and supplies consumer electronic designs. These include computer software’s as well as the personal computers. The products are critical in improving communication and management in institutions.
The company’s production processes follow strict guidelines. There is an evident application of conventional techniques. These facilitate the quality aspect of the products. It is imperative to note that the company has risen from a small in-house business outsourcing institution to a renowned supplier of electronic items.
This was achievable through its noble and development oriented strategies. The strategies have been instrumental in its growth through several ways. For instance, they provide the relevant operating framework with performance ideals (Apple, 2012). The company enjoys a wide market share and plans to expand further to new market segments.
Samsung is a high-rank global business organization that produces electronic items. It produces Samsung galaxy s3 that conform to consumer specifications. In addition, this product contributes immensely to people’s advancement. This occurs both socially and economically. The company has had a record of good performance over the years. Particularly, it became the largest IT producer globally in 2009.
This has facilitated its strong customer base. It has several assembly plants and sales subsidiaries that are in more than 61 countries. These provide it with a competitive advantage. The company’s growth is due to continuous implementation of transformational development plans (Samsung, 2012). Other products of Samsung are the laptops, electronic enhancers and phones.
Product Overview
Apple Corporation has a wide product range. These undergo processing and distribution for usage by consumers. The institution’s products are of great quality. They are suitable for use by various personalities. The products such as computer software, the iPhone 4s, as well as personal computers are presently common in the market.
This explains their relevance in enhancing individuals’ communication and commercial dealings. Currently, the company has launched new products. These are more popular and acceptable in the market (Apple, 2012).
The iPhone 4s products increase the company’s merchandise portfolio. The electronics are suitable for use by individuals of diverse age groups. The products offer the company a promising business environment.
Samsung enjoys a wider market share due to its quality products. The products are relevant and appealing to consumers. Samsung enjoys a considerable level of customer loyalty within most global destinations.
The company has market dominance where it supplies TVs, computers and the most recent Samsung galaxy s3. Apart from its native products, the company has rolled out new LCD systems. These also include efficient smart phones. This is due to high customer demand for high value electronic products (Samsung, 2012).
Strategic Marketing
Strategic marketing is a systematic product awareness creation. In this process, corporations adopt different strategies for its competitors. The objective is to enable an optimal exploitation of strengths and market opportunities (Palmer, 2004).
The process assists in the identification of viable competitive undertakings. Samsung and Apple companies should integrate their strategic marketing systems to advance their performance. The strategy would boost customer awareness and effective distribution of products.
Macro-Environmental Forces
Macro-environmental forces are external factors that influence organizational performance. The forces influence decision-making. They are not controllable by the institutions. These forces include political, economic, social, technological, ecological and legal (PESTEL) factors (Palmer, 2004). Principally, political activities influence the stability and formulation of trade policies.
Political instability destroys business operations and cause redundancies. Economic issues revolve around monetary complications. Finance is essential in driving business operations and leveraging price tags. Poor economic standards may hinder potential business growth.
Social, technological, ecological and legal factors are also significant. The continuous technological changes affect institutional growth. These companies must develop evaluation techniques for the environmental factors.
Micro-Environmental Forces
Micro environmental forces are institutional or internal factors. They have direct influences on the institutions. Poor planning, resource misallocation, communication and marketing strategies can affect internal operations. Other forces include inferior market segmentation and technological support.
These factors may delimit institutional growth (Hitt, Ireland & Hoskisson, 2011). It is the responsibility of administrators in the diverse institutional setting to formulate viable operating policies.
SWOT Analysis
SWOT analysis is an assessment technique that is applicable in institutions. It facilitates the identification of the operating strengths and the evident gaps that may hinder exemplary performance. The main aim of executing SWOT analysis is to strengthen the institutional strengths. It also aims to design amicable solutions to the evident gaps within operations.
The two companies have major strengths that have steered them to greater heights (Palmer, 2004). Apple Corporation has strong product brands and qualified personnel. Apart from these, it has effective distribution channels, good infrastructural set up and expansive market share. Its weaknesses and threats include possibility of new entrance, limited network and diminishing raw materials.
Samsung’s operating strengths include strong brand name, diversified revenue base, and ability to customize products to the locals (Techunicorn, 2012). Additionally, other strengths include research; focus on emerging economies and booming of the use of smart phones.
These opportunities and strengths present the company with lucrative prospect. Its weaknesses and threats include compliance issues, macro-economic factors and the allegations of unethical business. The analysis enables an institution to understand its current position and design viable strategies for improvement and sustainability.
Market Segmentation
Market segmentation is the process of dividing the market into various categories. This enables marketers to understand the specific needs of individuals in the diverse categories. Marketers are under obligation to identify the needs of various individuals. Parameters that drive market segmentation include age group, income levels, fashion and product identity (Hitt, Ireland & Hoskisson, 2011).
The parameters are critical since the needs of individuals in terms of product specification vary. Products used by the youth or children may not be appealing to the elderly. Market segmentation variables include geographical, gender, social and economic.
The variables also influence institutional marketing activities. These companies have well defined market segments. The companies produce products that conform to the specific needs of the customers in various segments. Both companies segment their customers by age, economic capacity, geography, fashion and gender.
Target Markets
These are potential individuals with specific product needs. These needs may undergo gradual satisfaction. They are individuals with high purchasing propensity. Therefore, corporations must recognize their requirements. Marketers must identify and target lucrative segments with potential buyers. Such initiatives ensure that the institution make supplies to target areas.
These areas lead to high levels of sales revenues (Techunicorn, 2012). Ideally, attaining a breakeven operating capacity requires proper market identification and distribution of items. Samsung and Apple Corporations in their pursuit for exemplary performance should develop strong market identification guidelines.
Targeting Strategy
Targeting strategy is the process of identifying viable markets and potential customers. The basic aim is for the company to vend its products successfully.
The strategy involves segmentation of the marketplace (Hitt, Ireland & Hoskisson, 2011). This transpires through the identification of suitable sections of the market where supplies can take place. It also enables the identification of the merchandise that is dispersible in each section of market appropriately.
Positioning Strategy
Position strategy appertains to how the company seeks to roll out its product portfolios. The strategy enables institutions to acquire full identity and attract consumer loyalty. Market positioning is a competitive strategy that institutions use to acquire an advantage over its rivals.
This is evident since it enhances products’ dominance in certain markets (Hitt, Ireland & Hoskisson, 2011). This is relative to other competitive items. Various factors influence the positioning strategies of institutions.
The factors include the level of product demand, financial status of the locals in the area, prospective opportunities and the need to gain dominance. The strategy is relevant in the present competitive environment. The companies should adopt its ideals to steer their growth.
Recommendations
Marketing is an integral element. Institutions with growth prospects should develop strong marketing policies and formulate viable product distribution networks. Apple and Samsung corporations should perform detailed evaluation of micro and macro environmental forces.
They should also develop strong strategic marketing guidelines and support systems. Strategic marketing involves adoption of unique marketing plans. The companies should evaluate and perform proper market segmentation.
References
Apple. (2012). Introducing Apple. Retrieved from https://www.apple.com/macbook-pro/
Hitt, M. A., Ireland, R. D. & Hoskisson, R. E. (2011). Strategic management: Competitiveness & globalization. Mason, OH: South-Western Cengage Learning.
Murray-Webster, R. & Williams, G. (2010). Management of risk: Guidance for practitioners. Norwich, England: The Stationery Office.
Palmer, A. (2004). Introduction to Marketing: Theory and Practice.USA, Oxford University Press.
Samsung. (2012). About samsung. Retrieved from https://www.samsung.com/pk/#latest-home
Techunicorn (2012). Samsung Galaxy S3 expected to prove more popular than predecessor. Web.