Apple and Samsung Companies Strengths and Weaknesses

Introduction

Apple and Samsung are well-known companies that specialize in a host of activities in electronics and mobile phones. They were formed in 1976 and 1938 with their headquarters in Cupertino, California, and Seoul, South Korea, respectively. The task of this paper is to critically analyze the strengths and weaknesses of the two companies.

Apple

Strengths

Apple’s brand is well-promoted and known in the entire world. Additionally, its products are developed based on customers’ needs and expectations. On the same note, the company partners with various businesses so that their products can reach consumers faster as compared to its major competitors which sell the products directly to consumers. The company has also mastered the art and science of design, developing stylish products that are light and portable.

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This is attributed to the company’s ability to employ and retain professional designers (White par. 7). Through transformational leadership, employees are encouraged to try new things. Due to such efforts, the firm has achieved innovation and implemented creativity in the development of new products. This resulted in the production of iPads and iPhones which are deemed to be the industry’s standards for both the tablets and smartphones.

It has also been noted that the company has a uniquely high level of customer service. This coupled with innovative store designs gives consumers reasons to buy the company’s products and services. Apple is also known to be a firm that does not stop inventing as well as trying to come up with new, quality, and better products and services (Haig 102).

Weaknesses

The major weakness facing the firm is stiff competition. Recently, companies, such as Samsung, Motorola, and HTC, have worked hard to increase their market share between 2010 and 2011. This has greatly limited the potential of the firm to sell its products and services. Additionally, stiff competition increases the cost of operation since the firm seeks to increase the campaign through advertising, developing new and superior products among others. Lastly, the firm has not diversified its products and services as compared to Samsung (White par. 9).

Samsung

Strengths

The firm is a conglomerate. This allows it to have diversified products and services. This kind of diverse products and services is well-differentiated and meets customers’ demands, expectations as well as aspirations. Additionally, it is worth noting that the firm has managed to create brand value by using multiple sponsorships (Miyoung par. 3). In the long run, this has ensured that all the potential consumers are reached and receive messages about the firms’ products and services.

Concerning the design of its products, Samsung has invested a lot in research and design as well as employed individuals who are professionals in designing stylish products. Stylish and innovative products appeal more to the young generation which is technologically savvy. Moreover, the youth fell that their demands are unsatiated. The company enjoys a market share that is continuously growing, offering a perfect opportunity to sell its products and increase revenue. Lastly, Samsung is a brand that is familiar to almost every household (Haig 99).

Weaknesses

Samsung’s initial attempt to release the first smartphone which would compete with iPhones was thwarted. It emerged that the product was characterized by some flaws, such as dropped calls, clunky touch-screen, and frequent auto rebooting, among others (Miyoung par. 2). Most of the customers who bought the device were dissatisfied to the extent that they wanted to throw it away. Even though the firm has released Galaxy which competes well with iPhone, some potential customers still remember the previous bad experience with the firm’ s product, thus preferring to buy products by Apple and other firms (Miyoung par. 3).

As suggested by Miyoung (par. 6), the company marketing strategy seems to concentrate more on the mass market; it has not managed to target a niche market like Apple. Lastly, there is increasing competition from other mobile and service providers, such as Apple. This reduces the firm’s market share as well as raises the cost of operation.

Works Cited

Haig, Matt. Brand royalty: How the world’s top 100 brands thrive and survive. New York: Kogan Page Publishers, 2004. Print.

Miyoung, Kim. Samsung’s strengths and weaknesses in fast execution. 2012. Web.

White, Saharra. Apple Computers & Strategic Management. 2009. Web.

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