A Detailed Analysis of Google and Samsung's Competitive Strategies

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This report provides a comprehensive analysis of the competitive strategies employed by Google and Samsung. It delves into the business strategies of both companies, highlighting their use of intensive growth strategies and generic strategies for Google, and product development strategies for Samsung. The report explores the application of business model innovation, examining how both companies identify target customers, develop value propositions, and generate revenue. Furthermore, it analyzes the use of the CAGE framework (Cultural, Administrative, Geographic, and Economic) by both Google and Samsung to understand and adapt to the complexities of international markets. The report references sources like Google and Samsung websites, and academic literature to support its findings, offering a comparative perspective on how these tech giants navigate the competitive landscape and maintain their market positions.
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Running head: COMPETITIVE STRATEGY
Competitive Strategy
Name of The Student:
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2COMPETITIVE STRATEGY
Brief description of the Google
Google is a well-known search engine in the world, which established in 1998. However,
the search result that is derived from the Google is better than any other search engine in this
industry (www.google.com 2017).However, Google is not one and only search engine in the
world as many other competitors are present but their success rate is limited than Google. Google
is a global organization and has maintained their position since 1998 as the largest search engine
website. Hence, based on the fabulous performance of Google it has been selected in this study
for analysis its competitive strategy.
Business Strategy of Google
Business strategy is a process that is adopted by the organization to fulfill their goal by
increasing their profit (Wheelen and Hunger 2017). However, different organizations select
different strategies based on their business nature to gain the competitive advantages and
commercial success in the global market. In the context of Google, their strategic choice is
associated with their business nature. The intensive growth strategy of Google is one of the most
important strategies that help such organization to maintain their position as the valuable brand
in the global market. On the other hand, Google uses the generic strategy that allows such
organization to get broad market scope by developing the innovative product. Such generic
strategy enables Google to make them unique in the competitive market. Google search, Google
Glass, Google fiber and the variety of products are the basic elements of the generic strategy of
Google that makes them different in the global market.
Business model innovation in context of Google
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3COMPETITIVE STRATEGY
Business model innovation is the establishment of the new idea or unique concept to
make a service or product of a company more innovative in order to gain competitive advantages
(Serrat 2017). There are four components in the business model innovation include target
customer, strategy for the organization to fulfill the customer needs, value proposition and
revenue generation. However, Google uses business innovation model and identify their target
customers that enable them to understand the current demand. Therefore, using market research
strategy this organization understands the needs of the customers and based on this they try to
meet their customer's needs. Value proposition strategy helps Google to develop innovative
products to attract their customers. Next, this model will enable Google to enhance their revenue
generation by introducing new innovative products according to the demand of the target
customers. Hence, it can be said that application of business innovation model is beneficial for
Google to gain the competitive advantages in the global market through making the unique
product.
CAGE framework in context of Google
CAGE distance framework is an essential framework that focuses on the cultural,
economic, geographic and administrative inequalities between the countries (Rosenberg, Caldart
and Seager 2017). However, business organizations are used such framework in order to
understand the culture, geographic distance, administrative nature and economic condition of the
different countries as based on such differences they operate in various countries and identifies
the current market demand. However, Google uses such framework to enhance their market
share in different countries based on the differences of culture, economic, administrative and
geographic. However, such differences will help such organization to develop the strategy based
on the current situation of the market of the different country.
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4COMPETITIVE STRATEGY
Brief description of Samsung
Samsung is one of the popular organizations of electronic goods in the international
market. This organization operates globally and offer high-quality products with low price
(www.samsung.com 2017). The mobile phones of such organization are cheaper than other
mobile industries, which lead them to gain competitive advantages in the international market.
On the other hand, such organization offers a variety of features in their products that are
preferred by a large number of customers in the worldwide. Hence, for the above successful
characters, this organization has been selected in this study to analyze its business strategy.
Business strategy of Samsung
Business strategies are adopted by the different organizations in order to survive in the
competitive market and to enhance their sales revenue generation (Leonidou et al. 2017). One of
the most important strategies of Samsun is to develop the products that are quite similar to the
other organizations, however; these products should have better features that are faster and
cheaper than other companies. Such unique strategy of Samsung not only gives them high sales
revenue generation but also provides them a large number of customers worldwide, which
enhances their customer loyalty.
Application of Business model innovation in context of Samsung
Target customer, the process of customer satisfaction, value proposition and revenue
generation are the vital elements of business model innovation that leads the organization to
make the unique product according to their customers' choice (Linder and Williander 2017).
Application of business model innovation enables Samsung to select their target market as for
example, the age group between 20 to 50 years is the main target market of Samsung. On the
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5COMPETITIVE STRATEGY
other hand, following such model they have incorporated innovative features in their products
that satisfy their customers by fulfilling their current needs. Therefore, the value proposition
elements allow them to develop the new feature in their product to make it innovative as for
example, Samsung offers good quality products at low price. Therefore, this creation in their
product development enables them to increase their sales in the market.
Application of CAGE framework in Samsung
CAGE framework includes the economic, geographic, administrative and cultural
differences between the various countries that allow the business organization to operate in the
global market according to the demand of the current market of different countries (Beugelsdijk,
Nell and Ambos 2017). However, Samsun operates in various countries such as UK, Australia,
US and many other countries hence, they need to understand the choice of the customers of such
country. However, CAGE framework enables Samsung to innovate new products by developing
strategy based on the cultural differences as people from different cultures have different
lifestyle and demand. On the other hand, by identifying the administrative requirement,
economic condition and geographical distances allow this organization to alter their operation
process in order to gain competitive advantages in the global market.
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6COMPETITIVE STRATEGY
References
Beugelsdijk, S., Nell, P.C. and Ambos, B., 2017. When Do Distance Effects Become Empirically
Observable? An Investigation in the Context of Headquarters Value Creation for
Subsidiaries. Journal of International Management, pp.45-123.
Leonidou, L.C., Christodoulides, P., Kyrgidou, L.P. and Palihawadana, D., 2017. Internal drivers
and performance consequences of small firm green business strategy: the moderating role of
external forces. Journal of Business Ethics, 140(3), pp.585-606.
Linder, M. and Williander, M., 2017. Circular business model innovation: inherent
uncertainties. Business Strategy and the Environment, 26(2), pp.182-196.
Rosenberg, M., Caldart, A. and Seager, P.H., 2017. Strategy: The Soul of Your Business.
In Managing Media Businesses, pp. 15-35.
Serrat, O., 2017. Business model innovation. In Knowledge Solutions (pp. 499-507). Springer
Singapore.
Wheelen, T.L. and Hunger, J.D., 2017. Strategic management and business policy. pearson.
www.google.com. 2017. Google. [online] Available at: https://www.google.com/intl/en/about/
[Accessed 26 Aug. 2017].
www.samsung.com. 2017. Samsung. [online] Available at:
http://www.samsung.com/in/smartphones/all-smartphones/ [Accessed 26 Aug. 2017].
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