Introduction: Information Technology Industry
- The universal information technology (IT) industry has become very competitive over the last few decades.
- Whereas the manufacture of PC started in 1970, Osborne 1, which was the earliest portable commercial computer, became feasible in the year 1981.
- The successive full-size affair in PC narration materialized in the fiscal 1995.
- After that, Intel and Microsoft were accredited as the traditional makers of Intel PC (hardware) and Windows (software) that are still being applied in personal computer production.
- In the last fifteen years, the increased hardware life, consumer mobility preference, and the escalating performance-price ratios have made PC growth rate to surpass the number of desktops.
- The market value for the universal PC manufacturers is anticipated to rise by 5.40% annually from the fiscal 2007 to 2012.
- Laptops and Smartphone are projected to be the key contributing segments for the technology industry growth rate .
- While the slow economic growth might hinder the growth rate for the industry, the PC sector faces stiff rivalry from technologies and novel devices.
- The environments where Apple Inc and Samsung Electronics Ltd operate are analyzed in the paper.
Laptops and Smartphone are projected to be the key contributing segments for the technology industry growth rate (Dalal & Shah, 2009).
Relevant information about Apple Inc.
- Apple Inc. is a publicly listed American company specializing in the production of high technological electronic products, computer hardware, and software.
- Under the electronic hardware category, the company products include personal computers, media devices, mobile communication, and portable-digital music players.
- In addition to high tech hardware devises, the company produces a variety of software applications including third-party digital content applications and networking solutions.
- Within the mobile communications category, the company has launched into the market a variety of Smartphones including iPhone and other android Smartphones that have significantly hit the world Smartphones market.
Apple Inc. is a publicly listed American company specializing in the production of high technological electronic products, computer hardware, and software (Apple Inc. 4).
In addition to high tech hardware devises, the company produces a variety of software applications including third-party digital content applications and networking solutions (Apple Inc. 4).
Relevant information about Samsung Corporation
- Samsung Electronics Corp is engaged in manufacturing, distributing, and selling completed device solutions and electronic products across the globe.
- The company proffers consumers commodities such as monitors, personal computers, notebooks, multimedia players, tablets, mobile phones among others.
- The company operates in China, Africa, Asia, Europe, U.S., and Korea. Samsung became instituted in the fiscal 1938 with its headquarters based in Southern Korea.
- Samsung Company is operating in a technological and changing environment.
- Electronic technology is widely applied in many industries and is quickly improving.
- Samsung Inc is one of the leading companies in the electronic IT industry.
- The highly volatile and ever changing technology has made it difficult for the company to hold the leading position in the IT industry.
With the advent of the android technology in Smartphones, and laptops the company made a great stride in capturing the larger market share (Herzog 124).
The operating environment for Apple Inc.
- Currently, Smartphone market share is valued at approximately five billion dollars with Apple products claiming 1.6 billion dollars, second after Samsung products.
- The Smartphones market is expected to grow in the next five years with approximately 0.55% annual increase.
- Apple market share is robust with expected growth of 1.67% annually .
- This growth in the market share is driven by the popularity of its brands among the younger generation.
- Apple Inc. brands are very popular in many countries.
- Its products iPhone is highly welcomed by majority of young generation particularly college students.
- The popularity of the brand has enabled Apple to be succeed and become the leader in Smartphones market under a highly competitive and volatile environment
- Apple Smartphone, iPhone, has remained to be the most likable in the Smartphones market.
- Apple’s iPhone has contributed over two billion dollars in revenue for the company.
- Though the market environment is highly competitive with new models entering the market, the worldwide Smartphone market is rapidly growing.
- The majority of companies are targeting younger generation whose popularity with Smartphone is ever increasing.
- Smartphones will be contributing over ten billion dollars in revenue over the next five years.
Apple market share is robust with expected growth of 1.67% annually (Apple Inc. 4).
The popularity of the brand has enabled the company to be successful and become the leader in Smartphones market under a highly competitive and volatile operation environment (Linzmayer 34).
The majority of companies are targeting younger generation whose popularity with Smartphone is ever increasing (Linzmayer 34).
The environment where Samsung Corporation operates
- In the universal laptop market, novel technologies including HVDs (hosted virtual desktops) and cloud computing have emerged and altered the laptop market requirements.
- Currently, the laptop market has moved to the less powerful wirelessly networked laptops from the powerful stand-alone laptops.
- The adoption of the advanced technologies by various PC manufacturers has made the laptop sector to be controlled by five market competitors.
- When arranged in the ascending order, the competing top five-laptop manufacturers include Toshiba, Lenovo, Acer, Dell, and Hewlett-Packard (HP).
- Apple Inc has been attaining dominant market share when the top ten-laptop manufacturers are mutually evaluated.
- When other laptop manufacturers such as Samsung, Lenovo, and Windows PCs are compared to Apple Inc, it emanates that Apple is globally recognized and has gained a huge market share because it has an affirmative brand status.
- Hewlett-Packard, with respect to the universal personal computers volume, is currently the market leader with 18.90% and Dell Corporation, which has 15.50%, closely trails it.
- MSI and ASUSTek are the renowned Taiwanese corporations that produce notebook in the laptop segment similar to those produced by Apple and Samsung.
- In the last few years, the Taiwanese notebook corporations have produced and successfully marketed their products hence increasing their global market shares.
- To continue being the principal marketplace directors, the key five-laptop makers are notorious of contributing major PC products with sensational qualities or features.
- In the laptop and Smartphone segment, the manufacturers of PCs have continuously improved their growth rates partly because of the notebooks and global market growths.
- Laptop and Smartphone markets will continue to face a decline in the profitability margin.
- The future demand for laptops, Smartphone, and notebooks is uncertain.
- The marketing communication tools commonly used by these corporations include online product placement and advertising.
- The marketing communication tools have helped firms in the information technology industry to build strong brand images with clients and influence stakeholders info processing.
- While the slow economic growth might hinder the growth rate of the IT industry, the laptop and Smartphone sectors face stiff rivalry from technologies and novel devices.
- The Nokia mobile internet devices and Smart phones such as Palm Pre, Blackberry, and iPhone are currently competing with laptops for dominant market share as they have features like enterprise applications, internet access, and gaming.
Apple Inc has been attaining dominant market share when the top ten-laptop manufacturers are mutually evaluated (Dalal & Shah, 2009, p.2).
Hewlett-Packard, with respect to the universal personal computers volume, is currently the market leader with 18.90% and Dell Corporation, which has 15.50%, closely trails it (Dalal & Shah, 2009, p.3).
The future demand for laptops, Smartphone, and notebooks is uncertain (Dalal & Shah, 2009, p.3).
Best practices
- Apple Inc is producing high quality and attractive Smartphones.
- The Smartphones products penetrate and claim the largest market share in both android and other Smartphones market.
- The company leadership in high technology and electronic industry has boosted the marketability of its Smartphones.
- The company strengths in technology and powerful innovative capacity have boosted the confidence the target market have on its Smartphones .
- The Apple Inc Smartphones operating system has exceeded any other competing Smartphones and this has become one of its greatest marketability strength.
- Samsung Company manufactures laptops and Smartphones whose designs are fashionable and stylish which enables the user interface.
- The designs of Samsung products has enabled the company commodities to be used in diversified cultures.
- In addition to technological, quality and design strengths, Samsung laptops, and Smartphones are diversified with different prices that meet all classes of people.
- Samsung Company good relationship with the customers boosts the laptop, Smartphones and other electronics sales.
- There are varieties of Smartphones and laptops that Apple and Samsung Companies produce.
- The innovative capabilities of the firms ensure the development and production of new Smartphones and Laptops, which offer varied choices for customers.
- The Smartphones’ auxiliary functions have been improved to suit the customer needs and bring convenience, a mixture of value and quality.
- As expected, the quality and value addition by Samsung attract high prices.
- The company Smartphones’ prices are middle-high with some gargets targeting high-end customers while others are made for low and middle incomers.
- The high-quality low-prices strategy is applied particularly to outperform the competitors.
- Apple’s products and pricing strategy are aimed at widening the spectrum of customers the company is targeting, but before, Apple was targeting customers at high-income level.
- the entry of more competitors including Samsung Company has forced Apple to widen its scope and capture middle and low-income clientele.
The company strengths in technology and powerful innovative capacity have boosted the confidence the target market have on its Smartphones (Dziri 33).
In addition to technological, quality and design strengths, Samsung laptops, and Smartphones are diversified with different prices that meet all classes of people (Linzmayer 39).
In addition to technological, quality and design strengths, Samsung laptops, and Smartphones are diversified with different prices that meet all classes of people (Linzmayer 39).
The Smartphones’ auxiliary functions have been improved to suit the customer needs and bring convenience, a mixture of value and quality (Apple Inc. 4).
Conclusion
- In IT industry, Apple Inc and Samsung Corp have been competing with other marketing players for dominant shares.
- To increase their market shares, Apple and Samsung use almost similar promotion strategies including advertising, public relations, and sales promotions.
- The companies are using innovative advertising to attract and inform their customers about the companies’ products both in mass and digital media.
- The companies use their corporate social responsibility to appeal to many people as a method of maintaining public relations.
- The success of the companies on public relations improves their goodwill and attracts public attention.
- Samsung Corp and Apple Inc provide special offers as a good way to stimulate and retain customers’ loyalty.
References
Apple Inc. (2010). Annual report. Washington, DC: United States Securities and Exchange Commission.
Chazin, S. (2007). Marketing Apple: 5 secrets of the world’s best marketing machine.Web.
Dalal, A. & Shah, A. (2009). The global laptop industry. Web.
Dziri, R. (2011). Avoiding strategic drifts in a hypercompetitive market: Analysis of Apple’s position in the mobile phone industry and suggestions. Munich: GRIN Verlag.
Linzmayer, O. (2006). Legend of Apple. Beijing, China: Qinghua University Press.