The research used data from books, articles and other online resources. This research shows that Samsung and Apple Inc use the maximizing revenue approach to obtain large profits. The companies depend more on quantities than price. In order to maximize their revenues, the firms use strategies such as the penetration price strategy, which uses low prices to penetrate markets in order to attract potential customers. This discourages its competitors given its low priced products. On the other hand, Samsung has increased its output and marginal profits (Young and Simon, 2005: 14), by duplicating and copying ideas in order to increase its customer base (Chang, 2008: 34). Apple Inc, on the other hand, utilizes a price skimming strategy which allows the firm to penetrate given markets through pricing their products highly, hence gaining an advantage on early consumers of the new product. The skimming strategy has increased the net and profit margins of Apple Inc compared to Samsung (Cravens and Piercy, 2006: 14).
Samsung financial position
Apple financial position
This report shows that there is a direct connection between sales and financial performance on different consumer segments. IDC, a market research firm reports that Samsung shipped more than 71 million Smartphone’s attributing to a 34% market share (O, Grady, 2009: 3), due to the model design being the best selling in the market. Despite recording lower net profits and margins, the study shows that Samsung Company recorded more sales compared to Apple Inc, while Apple Inc recorded more in terms of profits. The study also shows that Samsung Company covers a large market share (Kim, 1998: 67). In order for Samsung company to create a loyal customer base. It should offer improved products in line with technology. Apple Inc, on the other hand, needs to increase its channels of marketing in order to increase its market share and maximize its revenue.
Bibliography
Chang, S. (2008).Sony vs. Samsung: The inside story of the electronics giants' battle for global supremacy. Singapore: Wiley.
Kim, Y. (1998). Technological capabilities and Samsung Electronics’ international production network in East Asia. Management Decision.doi:10.1108/00251749810232592
O'Grady, J. D. (2009). Apple Inc. Westport, Conn: Greenwood Press.
Young, J. S., & Simon, W. L. (2005).iCon: Steve Jobs, the greatest second act in the history of business. Hoboken, NJ: Wiley.
Zhang, Z. J. (2005). Pricing strategies. Boston: McGraw-Hill Custom Publishing.
Warburton, C. E. (2006). Research and profit maximization in finance and economics. Lanham, MD: University Press of America.
