Strategic Report: Internal and External Analysis of Apple and Samsung

This report provides a comprehensive strategic management analysis of Apple and Samsung, two prominent companies in the digital industry. The introduction defines strategic management and its importance for business success. The report then delves into internal analyses using SWOT (Strengths, Weaknesses, Opportunities, and Threats) for both companies, highlighting their competitive advantages, such as Apple's innovative products and Samsung's brand image. External analyses are conducted using PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) frameworks, revealing how external factors influence their strategies. The report explores the competitive environments, comparing Apple, Samsung, Sony, and Google, emphasizing their strengths and weaknesses, target customers, product features, and advertising strategies. Finally, the report identifies challenges and opportunities for both companies and concludes with recommendations for future strategic directions. The analysis covers various aspects, including market penetration, pricing strategies, technological advancements, and government regulations.

Strategic Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Internal analysis of the Apple and Samsung................................................................................4
External analysis for Apple and Samsung...................................................................................5
Competitive environments...........................................................................................................7
Challenges and opportunities.....................................................................................................11
RECOMMENDATIONS...............................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic management refers to the planning, monitoring directing the activities of the
business towards the objectives and goals. As per the changing environments there is need to
assess the business strategy to achieve the success and growth of the business. To achieve the
benefits of the competition with the help of the strategic management there is the description and
identification of the strategies which is performed by the managers. It also improves the level of
the performance which leads to the successful growth of the company in the present and the
future condition of the market.
This report determine the strategic management of the two digital industry i.e. apple and
Samsung. Apple is the largest technology company which sells, design and develop the software
of the computer, online services and electronics of the consumer. The headquarter of the apple is
at the California, U.S. And it is a American company. Samsung is the multinational company of
the South Korea and it includes lots of business which is united under the brand of the Samsung.
At the Seoul, South Korea there is the headquarter of the Samsung.
This file determine and analyse the external and internal factors which gives the perfect
shape to the strategies of both the companies in the short and the long run of the business. There
is the use of the different models of the strategic analysis in the business. In this file there is the
evaluation of the advantages of the competitive environment in which the business could apple
these strategies of the management. Both the companies faces lots challenges and opportunities
from the different market competition in the business.
Internal analysis of the Apple and Samsung.
SWOT analysis of both the Apple and the Samsung determine that business strategies
which leads the large share of the market in the technology industry.
SWOT of Apple:
Strength: The strength of the Apple that it has the most innovative products in the
business such as iPad, iPod, iPhone, MacBook etc. it is one of the mots popular and valued brand
as compared to the other companies of the world. Apple is the largest company which is related
to the revenue generations. Apple have the best design of the product and effective technology
which is used by them in the business (Raymond, and et.al., 2019). The leader of the Apple
which is Steve jobs is also the internal strength of the business.

Weakness: The weakness of the apple is that there is lack of the promotion and the
marketing strategies in the business. They do not make extra investments in the funds of the
marketing. The prices of the products which is sells by the Apple are very high so it cant be
affordable for the low income groups of the people. Because of their premium pricing their
products very luxury (Tarakci, and et.al., 2018). Apple is not make the competition with their
competitors because there is the lack of the competition for the apple. The products of the apple
are not supported by different technology and software so the customer so it makes them
incompatible from other devices and affects the decision making of the customer.
Opportunities: In the business of the Apple there is the very effective team professional
which are qualified and have experienced in branding their products and services. The customer
get the best and the effective quality of the technology which increase the experience of the
customer. There is the opportunities of the apple to increases the network of the distribution
which can generate the revenue and growth of the company.
Threats: Market penetration is the biggest threat for the apple in the market of the
smartphone. Android takes the 47% share of the market while apple have 42% of the market
share which is the threats for the business of the apple. Increases in the competition of the
laptops MacBook facing the high level of the competition in the market because dell introduces
the effective features in their laptop model.
SWOT of Samsung:
Strength: In the business of the Samsung there have the strong image of the brand
because of effective quality of the products and services. They also have the strong and loyal
base of the customer in the business (Eskerod and Jepsen, 2016). Presence of the Samsung in the
markets of the Asia, America and Europe are very good. There are the wide rages of the product
which is categories like home appliances, semiconductors and consumer electronics.
Weakness: The business of the Samsung are very dependents on the markets of the
America for the expansion of the business. They cannot maintain the loyal base of the customer
for the long period of time. They low margins of the profits because of the low prices of the
products which is offered to the customer.
Opportunities: They have opportunities to increases the investment in the research and
the developments. To get the success Samsung focuses on the advertisements. The presence of
the Samsung is increasing the global markets.

Threats: In the market of the mobile phone there is the intense competition of the price
for the Samsung. The competitors of the Samsung are the major threats for the business and
these competitors are Oppo, Vivo, Oneplus.
External analysis for Apple and Samsung.
PESTLE of Apple:
Political: The business of the apple influences by the interference of the government,
unemployment, inequality in the income etc. Because of the inequality in the income of the
people these is the rates of the taxation which creates the problem for the apple. In the
international marketing free policies of the trade creates the opportunities for the apple to make
the business effective and efficient.
Economical: Some of the products of the Apple could not get the benefits of the cost
because there is increase in the cost of the labour in some countries. By the increases in the rates
of the exchanges due to the strong dollar of the U.S. It creates the problem to operates the
business in the markets of the Europe and china (Albers, and et.al., 2017). The economic factors
have advantages also in the business of the like it creates the opportunities for the expansion of
the business of the apple when there is the stability in the economic of the developed countries.
Social: This factors includes the behaviour, expectation of the customer, trends in the
population etc. which influences the business of the apple. There is increases in the trends of the
social media and smart phone so it creates the both the problems and the opportunities for the
apple. In the present days people are more dependent on the digital system so it is the benefits for
the business of the apple to increases the sales of the products as per the demands of the
customer.
Technological: The demand of the cloud computing increases the success and the growth
of the apple business. With the new and advanced technology they offer the effective technology
products and services to the customer.
Legal: Government increases the pressure of the privacy on the digital industry which
increases the regulations of the privacy on the business of the Apple (Morden, 2017). This is the
threat that the business have apply the expensive requirements of the regulatory compliance and
on the technology company it increases the various limitations.
Environmental: Apple make their process and the practices of the business which is
sustainable in the nature and do not harm the environments. With the increases in the trend of

efficiency in the energy the apple adopt the new and the efficient technology in the business.
Negative effects of the apple is they are depended on the infrastructure of the internet and data
centres.
PESTLE of Samsung:
Political: Instability of political have the direct impacts on the business of the Samsung
because the scale of the effective products becomes low. Political instability is the threat for the
Samsung business (Priem, 2018). There is also various kinds of taxes which is impose on the
imports and exports of the product the government of the different countries it also creates the
problem for the Samsung.
Economical: If the GDP of the country is effective then the people buy more products
and services because of their high income so it gives the benefits to the business of the Samsung.
Unemployment in country creates the problem for the success and the growth of the Samsung.
Social: Samsung is the family owned company so they provide the products and services
as per the needs and wants of the customer (Al Shobaki, Abu Amuna and Abu-Naser, 2016). The
demands and needs of the customer are changes continuously so they make changes in the
products as their requirements. It increases standard of living of the people living in the society
of the world.
Technological: In the world Samsung is famous for its innovation and technology
products and services. as per the changes in the technology they make changes to remain on the
top of the technology company. It gives the advantages of the competition to achieve the growth
of the company.
Legal: In the business of the Samsung they make their policies and the products as per
the legal issues that they do not face any problem in the future. The negative impacts of the legal
factors is that the Samsung have to pay penalties when they are not paying the much amount
their employees.
Environmental: Samsung always make their efforts for the development of the society
so the customer will attract towards the brand. People wants that every company make the
products and services any harm to the environment (James, 2016). Samsung makes the products
per the ethics of the customer to increases the sales.

Competitive environments.
Basis Sony Google
Company specific Founded 7 may 1946, by Akio
Morita
4 sept 1998,, by lary
page
Strength and weakness Strength of the Sony is
that they have the
good and effective
quality of the products.
The weakness of the
Sony is their
promotional activities
are very low.
The strength of the
google is that it is the
kings of the online
searching. It have
large share of the
market (Dayan, Heisig
and Matos, 2017). The
weakness of the
google is that there
income is generated is
only from the one
source i.e. online
advertising. The
products of the google
are unprofitable to the
business.
Target customer Product Products of the Sony
are television, MP3
players, audio systems
home theatres,
cameras, mobile
phones and many
more.
Google have the
variety of the products
such as calender
software, web email,
internet search engine,
cloud storage for
customer and business.
Primary buyers People who belongs to
the high income
groups.
Those people who
works by searching on
the google apps are

primary buyers of the
google.
Target customer They targets to all
types people in world.
They manufactures the
electronic devices
which is not depend on
the age of the people.
For younger one they
have devices like
gaming system for
adult they have
cameras and laptops
(Gatzert and Schmit,
2016). They make
products for everyone
to increases the sales
and profits of the
company.
The users of the
google are from the
uploaded data files.
People who wants to
sign in the google
accounts for using the
you tube and gmail
accounts.
Advertisements Sony adopts different
types of marketing
strategies in their
business and one of
the famous is their
slogans such as “ the
one and only”, “ it's a
Sony” and the current
slogans is “BE
MOVED”.
They uses the different
methods of the
advertisements which
includes banners and
images of the ads, ads
which is on the mobile
texts and in page video
ads.
Product specific Features They provide the There have the best

variety of the features
in the devices such as
high resolution of the
audio, speakers are
wearable, cameras
have interchangeable
lenses which attract
the lots of customer to
purchase and enjoy the
new and advanced
features.
features in the services
of the google such as it
provides the fast
experience on the
searching and multiple
quick which makes the
searching easy for the
customer.
Pricing They uses the
skimming pricing,
product line pricing
and product bundle
pricing in the business.
They sells their
products in high prices
and then lowers the
prices in the end
Google uses the
different kinds of the
pricing strategies for
the different products
such freemium pricing
for the products like
gmail. As per the
conditions of the
market there is the
market oriented
pricing (L'Écuyer, and
et.al., 2019). They also
uses the penetration
pricing which involves
the low pricing to gain
the large share of the
market.
Customer reviews The reviews on the
products of the Sony
Customer gives the
good and the effective

are some effective and
Sony review re
negative which affects
their business.
reviews on the
products and services
of the google.
Positioning They position their
products as per the
needs and want of the
customer to achieve
the success and growth
of the business and get
the advantages of the
market competition.
In the google they rank
and score themselves
and finds the results to
achieve the successful
growth of the business.
Challenges and opportunities.
Apple and Samsung faces lots of challenges and opportunities in their business because
of the market strategies of the google and Sony. These opportunities and challenges are
explained below:
Challenges: Google is top most company in the online searching so it creates the problem for the
Samsung and apple that the customer could search anything about the products which increases
the chances of the alternative products for them. Sony also have the quality and innovative
product which increases the level of the competition for both the apple and Samsung (Basile,
Kaufmann and Savastano, 2018). Sony is the oldest company of more than 70 years and it is very
strong so the customer will attract to their products because of presence in the electronic industry
over more than 70 years this is the challenges for the Apple and Samsung to make the effective
base of the customer.
Opportunities: It creates the lost of opportunities for the apple and Samsung because google
gives the focus only on the one source of income such as AdWords and adsense. The product and
services of the google are not profitable for their business so this the advantages for the apple
and Samsung to increases the sales by their effective and good featured products (Hertz, and
et.al., 2017). The activities of promotions of Sony are very low so it will creates the opportunities

to make the effective promotion of the products for the apple and Samsung to increases the sales
and profits s compared to Sony.
RECOMMENDATIONS
 Both the Apple and the Samsung faces the lots of the challenges due to effective
image of the google and the Sony in the market and it will increases the chances
of the high competition in the markets.
 Because of the low pricing strategy of the google it will covered the larger share
of the market so the apple and the Samsung faces lots of difficulty in achieving
the share of the market.
 From the starting of the business Sony provides the innovative products to their
customer so it is the big competition for the business of the apple and Samsung to
increase the base of the customer.
 Google also adopts the technologies of the android and mobile phone and this is
the clear result that it is the high competition for the apple and Samsung because
of his devices.
 The products of Sony are sustainable for the environment which makes the
effective challenge to the business of the Samsung and apple to introduces the
sustainable products in the business to attract the number of customer
CONCLUSION
From the above study it can be concluded that strategic management is the activity of the
business in which they could guide direct and monitor the process to get the success and the
growth of the business. The organisation make the effective strategies in the business to achieve
the benefits of the competition. In the electronic industry the organisation have lots of
advantages because there is the increases in the needs of the electronic products. The demands of
the customer are changes continuously as per the increasing trends of the digital industry. The
strategic management of the company improves the performances of the employees for the
development of the companies.

REFERENCES
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