Answered: apple vs samsung apple differentiates…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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apple vs samsung apple differentiates and samsung imperfectly imitates

does SAMSUNG’S STRATEGY OF IMITATING APPLE WILL NOT HARM THE BRAND IN THE LONG RUN.

Transcribed Image Text:STRATEGIC FOCUS APPLE VS SAMSUNG: APPLE DIFFERENTIATES AND SAMSUNG IMPERFECTLY IMITATES TECHNOLOGY Apple is not only a product innovator; it creates new markets and then dominates them as a first mover. Apple has done this with the iPod, iPhone and iPad. Almost none of its high-tech rivals, such as Dell, Hewlett-Packard, Nokia and BlackBerry, have offered a serious challenge. However, in recent times Samsung has become a successful challenger of Apple. In fact, it has been so successful that Apple took Samsung to court with several lawsuits for patent infringement, and Samsung took action against Apple t00. Apple won the 2012 lawsuit and a US$1 billion judgment against Samsung. Thus, Samsung appears to be a very good imitator - perhaps too good. But in 2014 another huge lawsuit involving seven patents ended up close to a tie: Apple The rivalry between the two electronic product companies seems to focus on attempts to produce dominant designs. Samsung acquired the services of one of the top designers in the world, Chris Bangle, who gained fame with his designs of cars for BMW. The design and product battles are now playing out in other product markets, such as tablets, and perhaps smart TVs and smart watches in the near future. All of this suggests that Samsung is a formidable competitor to Apple, but it is still far behind in profits, especially in profits per unit of sales. For example, during the 2012 Christmas holiday season, Apple sold 22.9 million iPads while Samsung sold 7.6 million tablets. The Apple differentiation strategy based on R&D and a superb brand is a winner. won on five patents while Samsung won on two. There was then a war of words, with Apple saying 'Samsung wilfully stole' ideas and Samsung referring to 'grossly exaggerated claims'. Sources: S. Tibken, 2015, Apple versus Samsung patent trial recap, CNET, Actually, Samsung invests a lot in R&D to design products for existing markets, about three times as much as Apple does - importantly, its R&D represents about 5.4 per cent of its annual May; M.-J. Lee, 2013, Samsung vs. Apple's next battleground: Watches?, Wall Street Journal, http://blog.wsj.com, 19 March; R. Pendola, 2013, Apple vs. Samsung explained with a burger and fries on Facebook, The Street, http://www.thestreet.com, 18 March; H. Shaughnessy, 2013, Samsung vs. Apple: The battle for design dominance, Forbes, http://www.forbes. sales, whereas Apple invests only about 2.2 per cent of its annual sales in R&D. As such, Samsung has been identified as a fast second mover in existing markets. In this regard, it is effective at not just imitating but changing features. In fact, it improves on features that are attractive to customers. For example, its Galaxy 4 smartphone had a 5-inch screen, larger than that of the iPhone 5S and supposedly producing a sharper photo. com, 17 March; B. X. Chen, 2013, Samsung's new 8-inch tablet takes on the iPad Mini, New York Times - The Business of Technology, http://bits. blogs.nytimes.com, 23 February; B. X. Chen, 2013, Samsung emerges as a potent rival to Apple's cool, New York Times, 10 February; M. Veverka, 2013, Unplugged: Apple-Samsung showdown has diaper whiff, USA Today, http://www.usatoday.com, 22 January; K. Eaton, 2013, Apple rumour patrol: 2013 iPhone edition, Fast Company, http://www.fastcompany.com, 11 January. egladn

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