Samsung was founded in 1938 and is currently one of the largest conglomerates in South Korea. It operates across many industries but is best known for its electronics division, Samsung Electronics, which has made Samsung a global leader in smartphones, appliances, and other consumer electronics. Apple was founded in 1976 and is an American technology company best known for the Macintosh line of computers, the iPhone, iPad, and other consumer electronics. Both companies have grown tremendously in recent decades to become two of the largest and most valuable technology companies in the world through innovation, strategic acquisitions and partnerships, and strong branding.

1. Samsung
Samsung was founded in 1938 by an entrepreneur, Byung Chull Lee (1910-
1987) and is currently run by Lee Kun-Hee, son of the founder. It is a group with
120 subsidiaries in 65 countries around the world, headquartered in Seoul, and
275,000 employees worldwide. Samsung's revenue has been more than $170
billion a year since 2007.
Samsung was initially, a food import-export trading company. For nearly 30
years, Samsung has operated the import sector of basic necessities
indispensables. And the industrial sector (fertilizer manufacturing) and forms the
largest conglomerate in Korea. It was not until the late 1960s that Byung Chull
Lee entered electronics, starting with a cooperation with Sanyo Electronic (a
Japanese firm).
Since then, Samsung has grown and diversified into sectors more focused on
electronics, IT and telecommunications. Samsung was first known for its low-
end and cheap products, the group then established itself for its state-of-the-art
products thanks to an efficient industrial model. It has become one of the world
leaders in the digital age, notably through its main subsidiary Samsung
Electronics.
Samsung is present in the electronics (42.6% of turnover), heavy industry and
capital goods (7.7%), civil engineering (5.7%), financial services (37.8%), and
miscellaneous (textile, hospitality, communication) (6.2%). Samsung has
become one of the leading chaebols and the oldest in Korea.
Mission: We will devote our human resources and technology to create
superior products and services, thereby contributing to a better global
society.
Vision: 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.
Marketing mix of Samsung
Samsung’s marketing strategy focuses on developing new innovative products
that are supported by strong branding and promotional campaigns. Mr. Yun
initiated a new competitive strategy with the goal of developing and marketing
superior products while also building an image of Samsung as a stylish, high-
quality brand worthy of a premium price. The objective was to establish a unique
position using technical innovation while designing more appeal to a younger

2. generation, as well as upscale customers around the world. Yun argued that to
continue to compete on price would eventually be their downfall.
1. Product Mix
When it comes to its products, Samsung has a clear advantage. Samsung
products are trusted since they have delivered excellent results in recent years.
Samsung is well-known for its services, and buyers should be aware that any of
its products can be serviced extremely quickly. As a result, one of Samsung’s
strength points in the marketing mix is its product line.
Being a leading electronic brand, Samsung has to keep up with the dynamic
industrial changes in order to meet customer satisfaction. Ever-changing
innovations, newer features, and improved performance can help give tough
competition to its competitors.
Samsung generates revenue by selling smartphones, home appliances, sound
devices, etc. excelling in all areas of product diversification. Their products can
be classified into:
Mobile devices: Samsung is one of the leading manufacturers of mobile
phones. Smartphones like Samsung Galaxy series, tablets, wearables,
accessories etc. for a big part of the brands portfolio
Home Appliances: Refrigerators, Washing Machines, Cooking appliances, Air
conditioners, Vacuum cleaners etc. are some of the consumer electronics
offered by the company
Television: Samsung Television, Audio and Video solutions & other
accessories are offered by the company. Apart from TVs, the company also has
a strong portfolio in digital cameras.
Computer & IT: Laptops, printers, multifunction devices, monitors and other
computer peripherals are also offered by the company.
Memory/Storage: Samsung is also known to offer high quality SSD, Portable
SSD, Memory cards, USB Flash drives etc.
Samsung is seen as a leader and an innovator in the products department and
is present in multiple categories as listed above making it a very product focused
organization.
2. Pricing Strategy of Samsung
Samsung is a leader in smartphones and also dominating the home appliances
area uses 2 types of pricing strategies as follows:
Pricing based on competition: Samsung still lags in certain product
categories. It might have a great presence in the home appliances realm but

3. has not surpassed many brands who lead the home appliances market such as
LG.
It is critical for the company to use competitive pricing to face stiff competition
from its market competitors. Samsung is also not a market leader in these
product categories, so it must protect its position because the competition is cut-
throat.
Skimming price policy: When Samsung launches its products with newer
features and capabilities, they tend to price it a bit higher than others. (This is
called Skimming Price Strategy) On the other hand, when some other company
launches a smartphone with the same or better features, Samsung reduces the
price and easily avoids losing market share as a result of the competitor’s debut.
3. Place Strategy of Samsung
Samsung sells to stores and service providers directly. Only service dealers are
in charge of corporate sales as a result of this strategy. Because Samsung is
such a well-known brand, technology retailers almost always have to have it in
their inventory. Samsung’s selling point is its distribution.
Samsung’s products are likewise distributed by a single distribution company in
one location, which then distributes them to other locations.
4. Promotion Strategy of Samsung
Promotion is an important part of the company’s marketing mix. Advertising,
according to Samsung, is the most effective kind of marketing for attracting new
customers and positioning the brand.
Samsung advertises in a variety of ways. Samsung, as a firm, believes in
attracting customers through advertising while also employing aggressive
tactics to push products to customers through sales promotions.
On one hand, Samsung employs a variety of marketing vehicles throughout the
year, both during the festive season and outside of it. On the other hand, it
provides numerous incentives and discounts to its business partners to
encourage them to sell Samsung above the competition. Samsung’s brand is
on the increase as a result of this strategy, and both the pull and push strategies
are functioning in Samsung at the same time.
Samsung uses print media, social media platforms, and digital media to market
new goods. To take advantage of celebrities’ large followings, the brand has
invited several celebrities to serve as brand ambassadors and market the
product that proves to be very efficient.

4. Recently Samsung released their new range of smartphones related to the
Korean singer band BTS. (It includes exclusive packaging, colors, and in-box
items featuring members of the band).
Samsung also introduced its new feature known as the Samsung Virtual
Assistant to drive in the audience.
Recently, Samsung introduced many new advancements in their online site too
for user convenience. For example, E-Catalogue provides an overall description
of all the products in a simple user-friendly book form.
SWOT Analysis of Samsung
Samsung’s Strengths
1.The strong dominance of smartphone manufacturing: Samsung has been
very successful in the area of smartphones. In the first quarter of 2020 Samsung
was the dominant company in the market with an 18.5 percent share.
Samsung’s Galaxy Series of Samsung smartphones is extremely well-known.
Since Samsung is a major player in the Asian market, particularly China and
India and the massive number of people living in these two nations is generating
an impressive amount of income for Samsung.
2.Stronghold in the Asian Markets: Samsung retains a stronghold in the Asian
markets, particularly India and China. Both India’s and China’s business
markets are growing substantially which is why Samsung has taken advantage
of the opportunity and incentivize in these countries accordingly.
3.Research and Development: The foundation of Samsung has always been
on Innovative research and development. Expenditure in these departments
resulted in the company having a wide range of product portfolio among its
competitors. These include tablet, camcorder, mobile phone, camera,
TV/video/audio, Memory Cards, PC, and other accessories. They have 34 R&D
(research and development) centers operating worldwide.
4.Strategic Partnerships: Developing partnerships with strategic companies
that develop software and online can be a great way to increase the revenue of
Samsung. The company thus gets greater functionality from developers, which
can be utilized to improve their electronic quality. For instance, Spotify has an
agreement that is non-exclusive with Samsung which allows customers to utilize
Spotify to use it as an integral audio streaming platform.
5.A variety in products though: Samsung is a known electronics firm,
Samsung also produces and sells semiconductor components including LCD
panels memory and SIM chip, and other components to different manufacturers

5. that are notable. Therefore, the company is able to continue to expand in
different ways. Additionally, Samsung is very successful in all the kinds of
products it makes, from televisions to refrigerators and smartphones.
Samsung’s Weaknesses
1.Heavily dependent on the American Markets: It is estimated that both
Apple and Samsung sold at least 70.8% of smartphones in the USA. While
Samsung has diversified its resources and expanded its operations in Asia, it is
still heavily dependent on the American markets. The American economy is very
unpredictable and another recession could put Samsung’s revenues in jeopardy
and can damage its operational resources. That’s why Samsung needs to
involve itself into the Asian and European markets to ensure sustainability and
avoid potential failures if the US economy ever collapses.
2.Decline in Smartphone Sales: Samsung has been experiencing a decline in
smartphone sales since 2017. A similar trend was seen in China due to the price
sensitivity of the Chinese market. They dump a lot of those products in the Indian
market at a lower cost which harms the Samsung sales. Samsung has tried to
shift more focus in India, but that strategy did not produce substantial results for
the company.
3.Product Failures: Any product that threatens the life of consumers erodes
confidence and trust in the company. Samsung has delivered several faulty
products to the market from the exploding Samsung Galaxy A20e to a faulty
foldable phone.
4.Dependence on Low-end Smartphones: A large portion of Samsung
revenues come from low-end smartphone sales. Recent events have impacted
this segment more than the high-end smartphone segment, which played a role
in Samsung’s decline from 71 million smartphone sales and 19.1% of market
share in Q1 2019 to 55 million smartphones sold in Q1 2020 with 18.5% of
market share (as per Gartner Report).
Samsung’s Opportunities
1.Diversification and Acquisitions: It is critical that Samsung avoids the
mistake of being limited to just one marketplace. It not only invites risks from an
economic perspective, but it also attracts unwanted political polarization and

6. negative media publicity. That’s why there is a business vacuum present in the
Asian and European economies in which Samsung can thrive. It needs to
expand its customer base as well. It can only be achieved through diversification
and acquisitions of other businesses. Samsung is a popular brand and can
generate impressive revenues thanks to its financial standing.
2.HR Management: The strategic management of HR is another key aspect on
which the company must be more focused in order to improve its competitive
advantages all-around. Above all, Samsung is a technology company that
invests heavily in research and development each year. But, maintaining and
strengthening its lead in the market will require attention to HR management,
which will allow it to achieve better outcomes over the long term.
3.Chinese market: China is strategically an important market for smartphones
and other consumer electronics companies. The country has grown rapidly to
become the second-largest market worldwide. In the present, the economy
could be in a state of stress due to coronavirus. However, once the situation is
in control the market will be growing once more. But Samsung’s share of China
has been declining. China’s smartphones market has been shrinking over the
past several years. Samsung should increase its focus on China and the way it
sells its products there.
4.5G Technology: As the world moves to 5G, Samsung has the capacity and
know-how to exploit this opportunity. The company is already in active
commercial discussions with operators in the EU to supply 5G and 6G network
equipment. Samsung is one of the top companies in the UK’s list of potential 5G
providers.
Samsung’s Threats
1.Increased Competition: Competition from opponents especially from those
within the consumer electronics, smartphone products, and computing
industries has reached a record high. Whether it’s Xiaomi, Apple, or Huawei,
all the technological competitors are outmaneuvering and outperforming each
other to become the best technology company. This only increases the
pressure for Samsung in both competition and finances.
2.Legal and Regulatory Threats: With the world becoming more globalized
and digitally oriented, governmental authorities have begun issuing their
guidelines which are increasing legal and regulatory threats to companies
around the globe. Samsung is no exception to these rules. Laws differ from
market to market, and these strict regulations cause a hindrance in operations.

7. Failure to comply could even result in a complete shutdown in the respective
market which may be fatal for Samsung.
3.Economic Uncertainty: Recent events have catalyzed uncertainty in the
global market and led to a decline in new smartphone sales by 20.2% in Q1 of
2020. Financial struggles have forced many consumers to seek recycled or
refurbished phones, which has increased by 24%. Samsung has already
experienced a decline in sales, and it can drop further if uncertainty persists.
4.Rise of Counterfeiting: According to numerous research studies, Samsung
is by far the most counterfeited phone brand. Statistics from mobile
benchmarking site AnTuTu highlight that over 36% of all counterfeit
smartphones are Samsung copies. Also, Samsung Galaxy S7 Edge holds the
record of the most counterfeited smartphone model.
Apple
Apple Inc. (Formerly Apple Computer, Inc.) is an American multinational
corporation that designs and sells consumer electronics, computer software,
and personal computers. The company's best-known hardware products are the
Macintosh line of computers, the iPod, the iPhone, and the iPad (Apple calls its
computers Macintoshes or Macs, and it calls its laptops MacBooks. Their
popular line of mobile music players is called iPods and a smartphone they have
released is called the iPhone.). Its software includes the OS X and iOS operating
system; the iTunes media browser; and the Life and Work creativity and
production suites.
Apple is the world's third-largest mobile phone maker after Samsung and Nokia.
Established on April 1, 1976, in Cupertino, California, and incorporated on
January 3, 1977, the company was named Apple Computer, Inc. for its first
30 years. The word "Computer" was removed from its name on January 9,
2007, as its traditional focus on personal computers shifted towards consumer
electronics. As of July 2011, Apple has 364 retail stores in thirteen countries as
well as the online Apple Store and iTunes Store. It is the largest publicly-traded
corporation in the world by market capitalization, with an estimated value of
US$626 billion as of September 2012. The Apple market cap is larger than that
of Google and Microsoft combined. As of September 24, 2011, the company
had 60,400 permanent full-time employees and 2,900 temporary full-time
employees worldwide; its worldwide annual revenue in 2010 totaled $65 billion,
growing to $108 billion in 2011.Fortune magazine named Apple the most
admired company in the United States in 2008, and in the world from 2008 to

8. 2012. However, the company has received widespread criticism for its
contractors' labor practices, and for Apple's own environmental and
business practices. Apple topped list of the World's Most Powerful Brands on
October 2, 2012.
Mission: Is to bring the best user experience to its customers through its
innovative hardware, software, and services.
Vision: Is to make the best products on earth, and to leave the world better
than we found it.