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Essay / Marketing Strategies of Electronics Companies - 1497
Current StrategyCurrently Apple is a short term strategy, this can increase Apple stock price a little. As long as Apple continues to maintain its skyrocketing profitability. . Henry Blodget (Blodget, 2013) claims that Apple clings to very high profit margins and the same risky "premium" strategy that almost drove it to bankruptcy in the PC market in the 1990s. He also mentioned that even if Apple is not completely marginalized, this strategy will likely hurt the company, its shareholders, and its customers in the long term. In 2007, when the iPhone was launched by Apple, Apple had its own mobile phone market. Thanks to his manufacturing prowess, he now has the ability to produce it and sell it at a lower price than other competitors. The perfect combination of a good product and low unit cost leads to exceptional results, giving the Apple company a profit margin of around 30% and allowing it to reach a staggering $150 billion in cash. Samsung has had tough times and difficulties in the smartphone market, but after a few years, Samsung become the biggest competitor of Apple by a very wild margin. There is a core strategy that makes Samsung a great company. Quickly track competitors' advantages and strengths: Samsung learns from its competitors and does its best in learning than any other competitor. They clearly understand what competitors are doing and what type of new product they are bringing to market, observing what appears to be gaining traction. Then they very quickly create a new product with their own version of that innovation. After learning from competitors, they do not simply imitate the design of the competing product, but insert their own technology. For example, the Samsung Galaxy smartphone was derived from Apple's iPhone, but middle of paper......Apple ordered DRAM chips from different suppliers to hold the Samsung back. Apple tried to weaken Samsung's dependence, but without success. All kinds of phenomena show that Samsung is the only company capable of supplying current components for Apple products. He indicated that Apple will remain the supplier-requester relationship for the foreseeable future. According to one of Porter's Five Forces: Supplier Power, the fewer choices of suppliers you have, the stronger the energy supplier. This means that as Apple's sole supplier, Samsung can easily make them more competitive and decrease Apple's profits, while also being fully capable of putting pressure on Apple. For example, increasing the price of supplies, decreasing the quality of supplies, reducing the availability of supplies. Once Samsung performs any of the listed actions, Apple's operation will be unstable, on the contrary, Samsung will become even more competitive than its current position..